Banma Network Technology Co., Ltd., the smart cockpit enterprise jointly founded by Alibaba and SAIC Motor, has officially submitted its listing application to the Hong Kong Stock Exchange.

On August 21, 2025, Alibaba announced its plan to spin off Banma Network Technology Co., Ltd. and list it independently on the Main Board of the Hong Kong Stock Exchange. One day before Alibaba's announcement, the Hong Kong Stock Exchange disclosed Banma Network Technology's listing application documents, with Deutsche Bank, China International Capital Corporation, and Guotai Junan International serving as joint sponsors.

This unicorn company, valued at 22 billion yuan by Hurun Research Institute, carries the halo of being "China's largest software-defined smart cockpit solution provider" and boasts a deployment scale covering 60 OEMs and over 8 million vehicles.

However, beneath the glamour, Banma Network Technology's prospectus reveals accumulated losses exceeding 2.6 billion yuan over three years. Behind the "system-level OS solution" revenue accounting for over 80% of total revenue, gross margins have declined from 53.9% in 2022 to 38.9% in 2024.

More troubling is that at the critical juncture of Banma Network Technology's IPO, former CFO Xia Lian posted a lengthy criticism on social media on August 23, 2025, bluntly criticizing her former employer. Her main points included: first, she's not optimistic about the company's business development, believing that cockpit technology without technical barriers can be developed in-house by automakers; second, questioning whether Banma's listing is aimed at "money grabbing"; and third, expressing disdain for certain senior executives' character and conduct.

**01 Industry Leader: Technical Moat Beneath the Halo**

According to Tianyancha data, Banma Network Technology was established in November 2015, jointly created by Alibaba and SAIC Motor to provide intelligent automotive operating systems, smart vehicle solutions, and digital transportation solutions for the automotive and transportation industries. Reportedly, Alibaba indirectly holds approximately 44.72% of Banma Network Technology's shares through Shanghai Saiwei, Zhejiang Tmall, Taobao China, and Hangzhou Haoyue, controlling about 40.17% of voting rights; SAIC indirectly holds approximately 33.34% of shares through Shanghai Saiwei and Jiaxing Ruijia, controlling about 37.16% of voting rights. After the spin-off completion, Alibaba's shareholding is expected to decrease to over 30%, and Banma Network Technology will no longer be included in Alibaba's consolidated financial statements but will remain an important affiliated company.

Banma Network Technology fully leverages Alibaba Group's technological and ecosystem advantages in voice, vision, chips, IoT, cloud computing, maps, payments, and e-commerce, collaborating with automakers to redefine vehicles and create smart mobility spaces for users, providing intelligent driving services and rich automotive lifestyle experiences. Based on self-developed AliOS, Banma Network Technology's smart automotive solutions have been deployed across more than 10 automotive brands, over 40 vehicle models, and more than 1 million smart vehicles from partners including SAIC, FAW, and Volkswagen North and South.

Undoubtedly, Banma Network Technology's industry position is built upon rare technological integration capabilities. According to CIC data, by 2024 revenue, Banma Network Technology is China's largest software-centric smart cockpit solution provider and also ranks first by solution deployment volume.

The core barrier lies in the completeness of its technical architecture. Banma Network Technology is one of only two third-party suppliers in China with completely self-developed automotive operating systems, and the only company seamlessly integrating the three core pillars of smart automotive experience: system-level operating system solutions, AI full-stack end-to-end solutions, and in-vehicle platform services.

This technical moat is particularly prominent in the AI field. According to IDC's 2025 report, Banma Network Technology's large language model capabilities rank first comprehensively among nine domestic top-tier automotive AI companies, with performance in real scenarios including vehicle control, driving, and entertainment surpassing peers.

Market coverage validates its commercial value. As of June 30, 2025, Banma Network Technology's solutions have been deployed in over 8 million vehicles across 60 OEMs, covering more than 14 countries. Deployment volume surged from 835,000 units in 2022 to 2.334 million units in 2024, with a compound annual growth rate of 67.2%, far exceeding industry averages.

**02 Financial Analysis: Strategic Gamble Behind Losses**

Banma Network Technology's financial data reveals a typical growth paradox for technology companies: technological leadership coexisting with profitability challenges.

According to the prospectus, Banma Network Technology's revenue fluctuated between 800-900 million yuan from 2022 to 2024 (805 million, 872 million, 824 million respectively), while losses reached 878 million, 876 million, and 847 million yuan respectively during the same period. In Q1 2025, losses and comprehensive expenses surged to 1.582 billion yuan, far exceeding the 136 million yuan revenue for the same period.

Regarding this, Banma Network Technology explained in its prospectus: "Since our establishment, our core strategy has been long-term technological leadership, deep product integration, and establishing close partnerships with leading OEMs. These strategic priorities require substantial upfront investment, particularly in autonomous R&D of automotive operating systems, full-stack AI capabilities, and native AI applications. Therefore, we incurred net losses during the track record period, mainly reflecting our proactive decision to invest early in fundamental technologies."

The business structure reveals strategic intent. System-level operating system solutions contributed over 80% of revenue, but gross margins for this business declined from 54.4% in 2022 to 38.6% in 2024, further dropping to 37.6% in Q1 2025. This decline is not coincidental but stems from "strategic pricing" strategies—accelerating market penetration through preferential terms, especially in collaborations with major OEMs where margins are voluntarily sacrificed.

R&D investment constitutes another financial pressure. Over three years, cumulative R&D expenses reached 3.214 billion yuan (1.111 billion, 1.123 billion, and 980 million yuan from 2022-2024 respectively), far exceeding revenue for the same period.

Encouragingly, Banma Network Technology's AI deployment shows growth potential, with AI full-stack end-to-end solution revenue growing from 16 million yuan in 2022 to 55 million yuan in 2024, achieving a compound annual growth rate of 85.3%, becoming the fastest-growing business segment.

Additionally, according to the prospectus, Banma Network Technology's IPO fundraising will be used to strengthen R&D investment, increase China market share, expand global markets, support business acquisitions and expansion plans, and supplement working capital.

**03 Future Challenges: Dual Dependencies and Industry Transformation**

In Banma Network Technology's growth narrative, the shadows of two giants persistently loom.

SAIC Motor, as controlling shareholder and largest customer, contributed 54.7% of revenue in 2022. Although this proportion decreased to 38.8% in 2024, the risk of excessive customer concentration remains significant. Alibaba plays a more complex role: serving as both the largest shareholder with 44.72% ownership and core supplier (procurement ratios of 53.5%, 58.4%, and 50.5% from 2022-2024).

This dual dependency creates a unique commercial paradox—gaining stable orders and technological synergy while constraining independent development space. The prospectus reveals that Banma Network Technology procures cloud services, software services, and shared services from Alibaba, while procuring hardware products from SAIC.

Industry transformation is intensifying technological competition. As chip manufacturers like Qualcomm and NVIDIA accelerate penetration into cockpit software layers, and the proportion of tech companies and OEMs developing in-house OS increases, the survival space for third-party solution providers faces pressure. Banma Network Technology admits in its prospectus that "technology requires long-term large-scale financial support and may never achieve large-scale commercial success."

Accounts receivable issues reflect imbalanced bargaining power in the industrial chain. Accounts receivable turnover days in Q1 2025 climbed to 265.6 days, far exceeding 155.9 days in 2022, indicating persistent collection pressure.

The technology investment marathon has not yet reached the profitability finish line, and Banma Network Technology's capital journey reflects the value reconstruction of the entire smart automotive industrial chain. China's smart cockpit market will race toward a 327.4 billion yuan scale (by 2030) with a 16.8% compound annual growth rate, with software-based solutions growing at a higher rate of 19.2%.

Banma Network Technology's strategic path is clear: trading short-term profits for market share and building competitive barriers through technological depth. As the automotive industry transitions from the "electrification" first half to the "intelligentization" second half, capital market patience will face reality testing.

Is this over-betting on a single technological route, or accurate judgment of industry endgame? The answer will be written in Banma Network Technology's financial statements over the next three years.