Core Viewpoint - Alibaba Group plans to spin off its subsidiary, Zhibo Network Technology Co., Ltd. (Zhibo Network), which specializes in smart cockpit solutions, for an independent listing on the Hong Kong Stock Exchange. This move aims to enhance the company's value and operational transparency while allowing it to access capital markets independently [1][18]. Industry Overview - The smart cockpit sector is on the verge of explosive growth, driven by supportive government policies, rapid growth in the passenger car market, improved chip performance, breakthroughs in large language models, and the continuous evolution of integrated AI technologies. Global smart vehicle sales are projected to grow from 58 million units in 2024 to 86.5 million units by 2030, with a compound annual growth rate (CAGR) of 6.9% [5]. - The market for smart cockpit solutions in China is expected to expand from 129 billion yuan in 2024 to 327.4 billion yuan by 2030, with a CAGR of 16.8%. Software-based cockpit solutions are anticipated to grow even faster, from 40.1 billion yuan to 114.9 billion yuan, achieving a CAGR of 19.2% [5]. Company Profile - Zhibo Network focuses on developing smart cockpit solutions, offering system-level OS solutions, AI end-to-end solutions, and in-vehicle platform services [4]. - Despite its smaller revenue scale compared to competitors like Desay SV and Huayang Group, Zhibo Network's latest valuation reached 22 billion yuan (approximately 3 billion USD), supported by its parent companies, Alibaba and SAIC [1][12][14]. - Zhibo Network's revenue for 2022 to 2024 is projected at 805 million yuan, 872 million yuan, and 824 million yuan, respectively, with a slight decline in 2024 due to seasonal factors. The company reported a net loss of 878 million yuan, 876 million yuan, and 847 million yuan over the same period, with losses narrowing year by year [6][7]. Competitive Position - Zhibo Network is recognized as the largest software-centric smart cockpit solution provider in China based on revenue projections for 2024 and ranks first in terms of solution deployment volume. It is one of only two third-party suppliers in China with a fully self-developed automotive operating system [11]. - The company has achieved a deployment volume growth from 835,000 units in 2022 to 2.334 million units in 2024, with a CAGR of 67.2%. As of June 30, 2025, its solutions have been installed in over 8 million vehicles across more than 14 countries [11]. Financial Backing and Valuation - Zhibo Network has received significant financial backing, with cumulative financing exceeding 10 billion yuan since its establishment in 2015. Its latest funding round in September 2023 valued the company at approximately 22 billion yuan [12][13]. - The company has a high price-to-sales (P/S) ratio of approximately 26.7 times based on its valuation, significantly higher than Desay SV's 3 times and Huayang Group's 3.8 times [14]. Key Clients and Suppliers - SAIC and Alibaba are not only major shareholders but also the largest clients and suppliers of Zhibo Network. Revenue from the top five clients consistently accounted for around 90% of total revenue during the reporting period, with SAIC contributing significantly [16][17]. - Zhibo Network's relationship with SAIC is highlighted by its recognition as "Annual Software Supplier" by SAIC Volkswagen in 2023, indicating a strong client partnership [16].

Core Viewpoint - Alibaba Group plans to spin off its smart cockpit solution provider, Zhibo Network Technology Co., Ltd. (Zhibo Network), for an independent listing on the Hong Kong Stock Exchange, with a valuation reaching 22 billion yuan [1][8]. Industry Overview - The smart cockpit sector is on the verge of explosive growth, driven by supportive government policies, rapid growth in the passenger car market, improved chip performance, breakthroughs in large language models, and the continuous evolution of integrated AI solutions [4]. - Global smart vehicle sales are projected to grow from 58 million units in 2024 to 86.5 million units by 2030, with a compound annual growth rate (CAGR) of 6.9% [4]. - The Chinese smart cockpit solution market is expected to expand from 129 billion yuan in 2024 to 327.4 billion yuan by 2030, with a CAGR of 16.8% [4]. - The market for software-based cockpit solutions is anticipated to grow from 40.1 billion yuan in 2024 to 114.9 billion yuan by 2030, achieving a CAGR of 19.2% [4]. - The demand for personalized and intelligent in-car experiences is increasing, with the in-car service platform market projected to reach 14.7 billion yuan by 2030, growing at a CAGR of 64.8% from 2024 to 2030 [4]. Company Performance - Zhibo Network's revenue for 2022 to 2024 is reported as 805 million yuan, 872 million yuan, and 824 million yuan, respectively, with a slight decline in 2024 due to seasonal factors [5]. - The company has incurred net losses of 878 million yuan, 876 million yuan, and 847 million yuan over the same period, with losses narrowing each year [5]. - In Q1 2025, Zhibo Network reported a revenue of 136 million yuan, a year-on-year decline of 19.53% [5]. - The company has a cash outflow from operating activities, with net cash used of -585 million yuan, -417 million yuan, -487 million yuan, and -199 million yuan over the past four years [5]. Competitive Position - Zhibo Network is recognized as the largest software-centric smart cockpit solution provider in China based on 2024 revenue projections and ranks first in solution deployment [6]. - The company is one of only two third-party suppliers in China with a fully self-developed automotive operating system and offers a differentiated business model by integrating core components of smart vehicle experiences [6]. - Zhibo Network's deployment volume is expected to grow from 835,000 units in 2022 to 2,334,000 units in 2024, with a CAGR of 67.2% [6]. Financial Backing and Valuation - Zhibo Network has received significant financial backing, with cumulative financing exceeding 10 billion yuan since its establishment in 2015 [7]. - The latest financing round in September 2023 valued the company at approximately 22 billion yuan (around 3 billion USD) [7]. - The company's price-to-sales (P/S) ratio is approximately 26.7 times based on its valuation, significantly higher than competitors Desay SV and Huayang Group, which have P/S ratios of 3 and 3.8, respectively [8]. Key Partnerships - Alibaba and SAIC are not only shareholders but also the largest customers and suppliers of Zhibo Network [9]. - Zhibo Network's revenue from its top five customers consistently accounts for around 90% of total revenue, with SAIC contributing significantly [10]. - Alibaba holds approximately 44.72% of Zhibo Network's issued share capital and controls 40.17% of the voting rights [10]. Strategic Intent - Alibaba's announcement of the spin-off aims to better reflect Zhibo Network's value, enhance operational and financial transparency, and enable independent capital market financing [11].

Core Viewpoint - Alibaba Group is advancing its subsidiary spin-off plan, focusing on Zhibo Intelligent Technology Co., Ltd. (Zhibo Zhixing), which aims to independently list on the Hong Kong Stock Exchange [1][3]. Company Overview - Zhibo Zhixing was established in November 2015 and became a joint-stock company in March 2025, primarily engaged in the development of intelligent cockpit solutions, providing system-level OS solutions, AI end-to-end solutions, and in-vehicle platform services [1][3]. - As of now, Alibaba holds approximately 44.72% of Zhibo Zhixing's shares, and post-spin-off, it is expected to retain over 30% [1]. IPO Details - Zhibo Zhixing has submitted its IPO application, with joint sponsors including Deutsche Bank, CICC, and Guotai Junan International [3]. - The funds raised from the IPO will be used to enhance R&D investment, increase market share in China, expand globally, support strategic acquisitions, and supplement working capital [3]. Market Position - According to Frost & Sullivan, Zhibo Zhixing is the largest software-centric intelligent cockpit solution provider in China, integrating three core technologies into a unified solution [3]. - As of June 2025, its intelligent cockpit solutions have been installed in over 8 million vehicles across 60 OEMs in 14 countries [3]. Shareholder Structure - Major shareholders of Zhibo Zhixing include Alibaba and SAIC Motor, both acting as indirect controlling shareholders [5]. - Alibaba controls approximately 40.17% of the voting rights, while SAIC holds about 37.16% [5]. Financial Performance - Zhibo Zhixing's revenue from 2022 to 2024 was approximately RMB 805 million, RMB 872 million, and RMB 824 million, with Q1 2025 revenue at RMB 136 million [6][8]. - The main revenue sources are system-level OS solutions, AI end-to-end solutions, and in-vehicle platform services, with system-level OS solutions contributing over 80% of revenue historically [6]. Profitability Challenges - Zhibo Zhixing has not yet achieved profitability, with total losses and expenses of RMB 878 million, RMB 876 million, and RMB 847 million from 2022 to 2024, and a loss of RMB 158 million in Q1 2025 [8]. - The company has emphasized a long-term strategy focused on technological leadership and deep product integration, requiring significant upfront investment [8]. Future Outlook - Alibaba's announcement indicates that the spin-off will enhance Zhibo Zhixing's independent valuation and improve its access to bank credit and capital markets [8].

Core Viewpoint - Alibaba Group plans to spin off its smart car business, Zhaoma Network Technology Co., Ltd. (Zhaoma Zhixing), and list it independently on the Hong Kong Stock Exchange, marking a significant step towards capital market engagement [1] Company Overview - Zhaoma Zhixing, previously a subsidiary of Alibaba, will no longer be included in Alibaba's consolidated financial statements starting from the end of 2024. Alibaba currently holds approximately 44.72% of Zhaoma Zhixing's shares and will maintain over 30% ownership post-spin-off [1] - The company focuses on the development of smart cockpit solutions, providing system-level OS solutions, AI end-to-end solutions, and in-car platform services. Established in 2015, it has garnered significant attention from the capital market [1] Financial Performance - Zhaoma Zhixing has shown steady revenue growth but has also faced high losses and comprehensive expenses. Revenue figures for 2022, 2023, and 2024 were 805 million, 872 million, and 824 million RMB respectively, while losses and comprehensive expenses were 878 million, 876 million, and 847 million RMB for the same years [5][8] - In Q1 of this year, the company reported revenue of 136 million RMB but incurred losses and comprehensive expenses amounting to 1.582 billion RMB [5][8] Market Position - According to data from Zhaoma Zhixing's prospectus, it is the largest software-centric smart cockpit solution provider in China based on projected 2024 revenue, and it leads in solution deployment volume [2] - The market for smart cockpit solutions in China is expected to reach 327.4 billion RMB by 2030, with software-based cockpit solutions projected to account for 114.9 billion RMB [2] Growth Metrics - Despite facing losses, Zhaoma Zhixing's market share and deployment volume have been on the rise. The deployment volume of its smart cockpit solutions increased from 835,000 units in 2022 to 2,334,000 units in 2024, reflecting a compound annual growth rate of 67.2% [7] - Revenue from the AI end-to-end solutions segment also grew rapidly, from 16 million RMB in 2022 to 55 million RMB in 2024 [7] IPO Plans - The funds raised from the IPO will primarily be used to enhance R&D investment, increase market share in China, expand globally, support business acquisitions and expansion plans, and supplement working capital [8]

Core Viewpoint - Alibaba plans to spin off Zhaoma Network Technology Co., Ltd. (Zhaoma Zhixing) and list it independently on the Hong Kong Stock Exchange, aiming to enhance its independent image and attract more business opportunities [1][3]. Financial Performance - Zhaoma Zhixing reported cumulative revenues of 2.637 billion RMB from 2022 to Q1 2025, with losses and total expenses amounting to 4.183 billion RMB [1][7]. - For the years 2022 to 2024, Zhaoma Zhixing achieved revenues of 805 million RMB, 872 million RMB, and 824 million RMB, respectively, with corresponding losses of 878 million RMB, 876 million RMB, and 847 million RMB [7]. - In Q1 of this year, Zhaoma Zhixing's revenue was 136 million RMB, with losses and total expenses reaching 1.582 billion RMB [4][7]. Market Position and Growth - Zhaoma Zhixing is recognized as the largest software-centric intelligent cockpit solution provider in China, with a projected market size of 327.4 billion RMB for intelligent cockpit solutions by 2030 [5][7]. - The company has seen a compound annual growth rate (CAGR) of 67.2% in the number of intelligent cockpit solutions deployed, increasing from 835,000 units to 2.334 million units from 2022 to 2024 [7]. Shareholding and Strategic Partnerships - As of the announcement date, Alibaba holds approximately 44.72% of Zhaoma Zhixing, while SAIC Group owns 34.34% [3][5]. - SAIC Group is not only a major shareholder but also the largest customer of Zhaoma Zhixing, contributing significantly to its revenue [5][7].