On August 21, Alibaba announced its proposal to spin off Banma Network Technologies Co., Ltd. (hereinafter referred to as Banma or Banma Zhixing) and list it independently on the main board of the Hong Kong Stock Exchange.

As of the announcement date, Alibaba holds approximately 44.72% of Banma's shares. After the spin-off, Alibaba will still hold over 30% of the shares.

In the announcement, Alibaba mentioned that after the spin-off, Banma will reflect an independent valuation, allowing investors to separately assess the performance and potential of Banma and Alibaba. Banma focuses on automotive system solutions, which can attract investors in specific fields. The spin-off will enhance Banma's independent image and improve its flexibility in obtaining bank credit and accessing capital markets.

The spin-off is subject to approval from the Hong Kong Stock Exchange, filing with the China Securities Regulatory Commission, and a decision by Banma's board of directors.

The Hong Kong Stock Exchange website showed yesterday that Banma Zhixing (i.e., Banma Network Technologies Co., Ltd.) has submitted a listing application to the Hong Kong Stock Exchange. Deutsche Bank, China International Capital Corporation (601995), and Guotai Junan International are the joint sponsors.

Banma Zhixing primarily provides intelligent vehicle operating systems, intelligent vehicle solutions, and digital transportation solutions to the automotive and transportation industries. According to Banma Zhixing's Hong Kong IPO application draft, "Based on data from灼识咨询, we are China's largest software-centric intelligent cockpit solution provider by 2024 revenue, and also rank first by solution installation volume based on the same data source."

Additionally, according to灼识咨询, Banma Zhixing is one of only two third-party suppliers in China that fully self-develop automotive operating systems, and the only enterprise that seamlessly integrates system-level operating system solutions, end-to-end AI full-stack, and in-vehicle platform services—the three core experience pillars of intelligent vehicles—into a unified solution.

The application draft mentioned that by 2030, the market size for intelligent cockpit solutions in China is expected to reach RMB 327.4 billion, with software-based cockpit solutions growing even more rapidly.

Banma Network Technologies Co., Ltd. was established in November 2015 as a technology company funded by an internet automotive fund initiated by Alibaba and SAIC Motor (600104). Its current registered capital is approximately RMB 3.2 billion. Qichacha shows that Banma Zhixing's largest shareholder, Shanghai Saiwei Investment Center (Limited Partnership), is jointly held by SAIC Motor, Alibaba, and others.

Furthermore, Alibaba-affiliated Zhejiang Tmall Technology Co., Ltd., Taobao (China) Software Co., Ltd., and Hangzhou Haoyue Enterprise Management Co., Ltd. hold approximately 24%, 10%, and 10% of Banma's shares, respectively.

Benefiting from Alibaba's industrial ecosystem, Banma Zhining fully leverages the technological and ecological advantages of Alibaba Group in areas such as voice, vision, chips, IoT, cloud computing, maps, payment, and e-commerce. Banma Zhixing's official website shows that the company has developed its Banma Zhixing intelligent vehicle solution based on its self-developed AliOS. It has currently partnered with over 10 automotive brands, including SAIC, FAW, and Volkswagen North and South, covering more than 40 models and over 1 million intelligent vehicles.

In September 2018, Banma Zhixing announced that it had secured over RMB 1.6 billion in its first round of financing, led by SDIC Innovation with follow-on investments from Yunfeng Capital and Shangqi Capital. This was the company's first financing since its establishment. In July 2021, four major shareholders—Alibaba Group, SAIC Motor, SDIC招商, and Yunfeng Capital—jointly invested RMB 3 billion in Banma Zhixing.

On March 17 of this year, Banma Zhixing, Ele.me, and IM Motors launched the "IMAIOS Ecological Cockpit." This cockpit deeply integrates Alibaba's cutting-edge AI technology and ecological resources, implementing Alibaba's ecological services in the form of AI Agents for the first time and pioneering a "No Touch & No App" human-vehicle interaction mode.