Core Viewpoint - The news highlights the decline of Haomo Technology, a smart driving supplier, which has faced significant challenges leading to a halt in operations and a drastic reduction in workforce, primarily due to its inability to keep pace with technological advancements and market demands [1][2][19]. Company Overview - Haomo Technology was incubated by Great Wall Motors in 2019 and initially thrived as a smart driving star company, primarily supplying smart driving systems for various Great Wall brands [1][19]. - The company had a peak workforce of nearly 800 employees, focusing on smart driving technology development, but has since dwindled to less than 300 employees [1][2]. Market Dynamics - In 2023, Haomo lost a significant contract with Great Wall's Weipai brand to a competitor, Yuanrong Qixing, due to delays in the mass production of its urban NOA (Navigation on Autopilot) feature [2][7]. - Despite retaining some contracts with Great Wall and other automakers like Beijing Hyundai, Toyota, and BMW, Haomo is not the sole supplier for these companies, limiting its market position [5][6]. Technological Challenges - Haomo's reliance on Qualcomm chips has been a double-edged sword, providing some partnership opportunities but also limiting its computational capabilities compared to competitors using NVIDIA platforms [8][10]. - The company has struggled with the timely adaptation of its technology roadmap, particularly in transitioning to more advanced autonomous driving solutions, which has hindered its competitive edge [10][14]. Financial Situation - Haomo has undergone five rounds of public financing, raising approximately 1.5 billion yuan, but its valuation has only increased modestly from 1 billion USD in 2021 to around 9 billion yuan in 2024 [17][19]. - The company’s IPO plans were halted due to internal decisions, reflecting a lack of confidence in the current market conditions and its financial performance [16][17]. Strategic Missteps - Haomo's strong dependency on Great Wall Motors has limited its ability to forge deeper partnerships with other automakers, which is critical in the competitive landscape of smart driving technology [19]. - The company has faced difficulties in converting its technological advancements into tangible cash flow, leading to operational challenges and ultimately a decision to halt operations [16][19].

Core Viewpoint - The downfall of Haomo Zhixing, a smart driving supplier, is attributed to its inability to scale production and adapt to technological changes, leading to a significant reduction in workforce and halted operations [1][2][15]. Group 1: Company Background and Initial Success - Haomo Zhixing was incubated by Great Wall Motors in 2019 and initially thrived as a smart driving technology provider, securing production orders primarily from Great Wall [1][16]. - The company expanded rapidly, with its workforce growing from around 300 employees to nearly 800 at its peak, focusing on smart driving technology for various vehicle models [1][3]. Group 2: Challenges and Decline - By the end of 2023, Haomo faced a critical turning point when Great Wall Motors shifted to another supplier, Yuanrong Qixing, for its new model, the Wei brand Blue Mountain, due to delays in Haomo's technology [2][6]. - Despite having contracts with several automakers, including Hyundai, Toyota, and BMW, Haomo was not the sole supplier for these companies, limiting its market position [5][14]. Group 3: Technological and Strategic Missteps - Haomo's reliance on Qualcomm chips limited its competitiveness in the high-performance smart driving market, as its AI computing power was insufficient compared to competitors using NVIDIA platforms [7][8]. - The company's focus on a "no-map" driving solution failed to address critical edge cases, leading to production challenges and a lack of effective deployment in urban environments [9][10]. Group 4: Financial Struggles and Future Prospects - Haomo's financial health deteriorated as it struggled to convert its technology into cash flow, leading to a halt in its planned IPO and a significant drop in valuation from $1 billion to approximately $90 million [14][15]. - The company faced a critical need for external funding to survive, but its strong ties to Great Wall Motors limited its ability to attract new strategic partnerships [12][16].