Core Viewpoint - Alibaba plans to spin off its subsidiary, Zhibo Network Technology Co., Ltd. (Zhibo Zhixing), and promote its independent listing on the Hong Kong Stock Exchange, with Alibaba retaining over 30% of the shares post-separation [2][3]. Group 1: Company Overview - Zhibo Zhixing was established in 2015 as a joint venture between Alibaba and SAIC Group, focusing on in-car systems and smart cockpit solutions [5][10]. - The company has evolved to become the largest software-centric smart cockpit solution provider in China, with a projected revenue of 8.05 billion, 8.72 billion, and 8.24 billion for 2022, 2023, and 2024 respectively [10][24]. Group 2: Business Model and Revenue Streams - Zhibo Zhixing's core business is divided into three segments: system-level operating system solutions, AI end-to-end solutions, and in-car platform services [6][7]. - The company generates revenue through technology development service fees, licensing income, and ecosystem value-added services [7][21]. Group 3: Financial Performance - Despite its technological advancements, Zhibo Zhixing has not yet achieved profitability, reporting adjusted net losses of 7.26 billion, 7.92 billion, and 7.57 billion for 2022, 2023, and 2024 respectively [24][29]. - The company's gross margin has been declining, with figures of 53.9%, 46.4%, and 38.9% for the years 2022, 2023, and 2024 [24]. Group 4: Market Position and Competition - Zhibo Zhixing's smart cockpit solutions have been installed in over 800 million vehicles, covering 60 major manufacturers and extending to 14 countries globally [12][22]. - The competitive landscape is intensifying, with major automakers like NIO, Xpeng, and BYD developing their own operating systems, posing a direct threat to Zhibo Zhixing's market share [25][26]. Group 5: Investment and Shareholder Structure - Zhibo Zhixing has raised approximately 4.919 billion in funding through multiple rounds, with significant investments from Alibaba and SAIC Group [14][16]. - The board of directors consists of 12 members, with a strong representation from Alibaba and SAIC, indicating a balanced control structure [18][21]. Group 6: Future Outlook - The company aims to leverage its technological leadership and expand its market share through an IPO, with plans to invest in enhancing its smart cockpit solutions and supporting business acquisitions [31].

Core Viewpoint - Zhibao Network Technology Co., Ltd. (Zhibao Zhixing) has submitted an application for listing on the Hong Kong Stock Exchange, with Alibaba Group planning to spin off Zhibao Zhixing as its sixth listed company in the Alibaba ecosystem [1][3]. Group 1: Company Overview - Zhibao Zhixing was established in November 2015 through a joint investment by Alibaba Group and SAIC Motor Corporation [3]. - The company launched China's first internet-connected car, the Roewe RX5, in 2016, introducing a voice-based interaction system that has influenced industry standards [3]. - Zhibao Zhixing has raised approximately 4.919 billion RMB in multiple funding rounds, with significant investments from various entities including Alibaba and SAIC [5]. Group 2: Financial Performance - Zhibao Zhixing's revenue for the reporting period was approximately 8.05 billion RMB, 8.72 billion RMB, 8.24 billion RMB, and 1.36 billion RMB, with gross profits of about 4.34 billion RMB, 4.04 billion RMB, 3.21 billion RMB, and 528.44 million RMB respectively [12]. - The company reported net losses of approximately 8.78 billion RMB, 8.76 billion RMB, 8.47 billion RMB, and 1.582 billion RMB during the same periods [12]. - Research and development expenses have consistently remained around 10 billion RMB annually, contributing to the company's high losses [12][13]. Group 3: Market Position and Growth - Zhibao Zhixing is recognized as the largest software-centric intelligent cockpit solution provider in China, with a projected revenue growth rate of 67.2% in vehicle installations from 2022 to 2024 [11]. - The company has integrated its AI full-stack solutions into over 800 million vehicles across more than 14 countries, with a compound annual growth rate of 85.3% in revenue from these solutions [11]. - As of June 2023, Zhibao Zhixing's intelligent cockpit solutions have been installed in over 800 million vehicles, indicating a strong market presence [11]. Group 4: Shareholding Structure - Following the proposed spin-off, Alibaba will hold approximately 41.67% of Zhibao Zhixing's shares, while SAIC will hold 32.90% [7]. - Zhibao Zhixing's major clients include SAIC, which contributed significantly to its revenue during the reporting period [7][8]. Group 5: Intellectual Property - As of March 2023, Zhibao Zhixing has submitted a total of 2,153 patent applications, with 1,167 patents granted, indicating a strong focus on innovation [14].

Investment Rating - The industry investment rating is "Recommended (Maintain)" [2] Core Viewpoints - In March 2025, the total sales of 10 new force car companies reached 245,000 units, representing a year-on-year increase of 82.9% and a month-on-month increase of 31.0%. Cumulatively, 621,000 units were sold from January to March, up 80.5% year-on-year [12][32] - The report highlights the strong performance of various new energy vehicle manufacturers, with significant sales growth driven by new product launches and improved delivery capabilities [5][32] Summary by Sections New Force Car Companies Total Sales - In March 2025, the total sales of new force car companies reached 245,000 units, with a year-on-year increase of 82.9% and a month-on-month increase of 31.0%. The cumulative sales from January to March were 621,000 units, up 80.5% year-on-year [12] Sales by Individual New Force Car Companies - Li Auto delivered 36,674 units in March, with a year-on-year increase of 26.5% and a month-on-month increase of 39.6%. Cumulatively, 93,000 units were delivered from January to March, up 15.5% year-on-year [13] - Xpeng Motors delivered 33,205 units in March, with a year-on-year increase of 267.9% and a month-on-month increase of 9.0%. Cumulatively, 94,000 units were delivered from January to March, up 330.8% year-on-year [17] - Leap Motor delivered 37,095 units in March, with a year-on-year increase of 154.7% and a month-on-month increase of 46.7%. Cumulatively, 88,000 units were delivered from January to March, up 162.1% year-on-year [20] - NIO delivered 15,039 units in March, with a year-on-year increase of 26.7% and a month-on-month increase of 14.0%. Cumulatively, 42,000 units were delivered from January to March, up 40.1% year-on-year [15] - Other companies such as BYD, Great Wall Motors, and Geely also showed strong sales performance, contributing to the overall growth of the industry [32] Investment Recommendations - The report maintains a "Recommended" rating for the industry, highlighting the continuous increase in delivery volumes and the gradual launch and delivery of new products by most companies. It suggests focusing on companies with competitive advantages in new product reserves, global expansion, and intelligent driving capabilities, including BYD, Great Wall Motors, Seres, Xpeng Motors, Li Auto, Leap Motor, Geely, and Changan Automobile [32][35]