Progress of Independence and Valuation Analysis of Huawei's Yinwang Intelligent Automotive Platform

Based on the latest collected information, I will provide you with a comprehensive analysis report on the progress of independence, IPO timing, and valuation logic of Huawei’s Yinwang intelligent automotive business platform.

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Shenzhen Yinwang Intelligent Technology Co., Ltd. was established in January 2024, independently operated after Huawei spun off its original Intelligent Automotive Solution Business Unit (Car BU) in its entirety[1][2]. As the core carrier of Huawei’s intelligent automotive ecosystem, Yinwang is positioned as an “electrification and intelligent open platform jointly participated in by the automotive industry”, with its business covering full-stack technical fields such as intelligent driving, intelligent cockpit, and intelligent vehicle control, and core products including the Kunlun ADS autonomous driving system and HarmonyOS Cockpit[1].

Yinwang’s establishment marks Huawei’s strategic transformation of its intelligent automotive business from a “loss-making division” to an “independent operating entity”. In May 2019, Huawei’s Intelligent Automotive Solution BU was established, and after five years of development, it completed independent operation in early 2024[3]. This transformation path reflects Huawei’s strategic emphasis on the intelligent automotive business, while also laying a foundation for the subsequent introduction of external investors and potential capital market operations.

After independent operation, Yinwang quickly completed the optimized design of its equity structure:

• Huawei holds 80% of shares
  : Maintains absolute controlling stake to ensure technological leadership and strategic decision-making power
• Avita and Seres each hold 10% of shares
  : In March 2024, Avita and Seres each acquired 10% of Yinwang’s shares for RMB 11.5 billion, corresponding to an overall valuation of RMB 115 billion[1][4]
• Up to 20% of shares to be opened up in the future
  : Plans to open up equity to more industry partners to expand the ecological alliance[1]

Yinwang’s board composition reflects diversified governance characteristics: Huawei’s rotating chairman Xu Zhijun serves as chairman, Yu Chengdong and Changan Automobile’s chairman Zhu Huarong serve as vice chairmen, and Zhang Xinghai, founder of Seres, etc. serve as directors[5]. This equity structure and governance arrangement not only ensures Huawei’s technological leadership, but also provides an institutional channel for automakers to participate in the co-construction of the intelligent ecosystem.

Yinwang has achieved remarkable results in the two years of independent operation, realizing a magnificent transformation from a “cash burner” to a “profitable entity”:

• Explosive revenue growth
  : 2024 revenue reached RMB 26.353 billion, with a year-on-year increase of 474.4%, achieving annual profitability for the first time[2][6]
• Continuous improvement in profitability
  : 2024 net profit exceeded RMB 6 billion, and first-half 2025 net profit reached RMB 2.23 billion[1]
• Significant improvement in gross profit margin
  : Increased from 17.73% in 2022 to 55.36% in the first half of 2024[5]

This transformation stems from two core driving forces: first, the scale expansion of the HarmonyOS Intelligent Mobility ecosystem, with cumulative deliveries of cooperative models such as AITO and Zhijie exceeding 900,000 units, driving a surge in demand for Yinwang’s hardware and software solutions; second, the profit model has shifted from single hardware sales to a combination of “technology authorization + software subscription + component supply”, enabling continuous revenue throughout the vehicle’s entire life cycle[1].

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On January 9, 2026, according to news from Guanfengwen, a channel of Guancha.cn, Bloomberg quoted insiders as revealing that Shenzhen Yinwang Intelligent Technology Co., Ltd., a subsidiary of Huawei focused on intelligent automotive solutions, is planning to launch IPO preparation work in the second half of 2026[1]. If it successfully enters the capital market, Yinwang is expected to become China’s highest-valued autonomous driving solution provider, with a valuation possibly exceeding RMB 1 trillion.

This rumor quickly sparked widespread market attention, mainly due to:

1. Yinwang’s valuation of over 100 billion yuan has taken shape
   : The valuation foundation of RMB 115 billion provides a prerequisite for capital market operations
2. Broad business growth prospects
   : The penetration rate of intelligent vehicles continues to increase, and Yinwang is expected to become an industry leader
3. Brand endorsement from Huawei’s ecosystem
   : Huawei’s technological strength and brand influence provide strong support for Yinwang[1]

In response to the above IPO rumors, Yinwang clearly responded to reporters from Cailian Press on January 11, 2026:

[7]. This response indicates:

1. No IPO plan in the short term
   : Yinwang currently has no specific capital market operation arrangements
2. Strategic focus remains on business development
   : The current stage focuses more on technological R&D and market expansion
3. Valuation logic is not yet mature
   : The company may believe that the current stage has not reached the optimal IPO timing

Despite the official denial, the emergence of the IPO rumor reflects the market’s high expectations for Yinwang:

• High investment threshold in the primary market
  : Primary market institutional investors with state-owned capital backgrounds stated that Yinwang only accepts investors with industry backgrounds, “we tried many ways but couldn’t find a channel to invest”[2]
• Industrial capital scrambling to lay out
  : Avita and Seres acquired 10% of the shares at a high price of RMB 11.5 billion, reflecting industrial capital’s recognition of Yinwang’s strategic value[4]
• Large valuation imagination space
  : Institutions predict that Yinwang’s 2025 net profit will reach RMB 12 billion to RMB 15 billion. Calculated at a price-to-earnings ratio of 35-40 times, the valuation may hit RMB 480 billion to RMB 600 billion[1]

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As of the end of 2025, Huawei’s intelligent automotive cooperation ecosystem has formed a clear brand matrix:

Cooperation Model	Brand Name	Partner Automaker	Positioning
Smart Selection Model (HarmonyOS Intelligent Mobility)	AITO	Seres	High-end Family SUV
Smart Selection Model (HarmonyOS Intelligent Mobility)	Zhijie	Chery	Sports Car for Young Groups
Smart Selection Model (HarmonyOS Intelligent Mobility)	Xiangjie	BAIC	Luxury Executive Sedan
Smart Selection Model (HarmonyOS Intelligent Mobility)	Zunjie	JAC	Ultra-luxury High-end
Smart Selection Model (HarmonyOS Intelligent Mobility)	Shangjie	SAIC	Mass Consumer Market
Upgraded HI Model	Qijing	GAC	High-end Intelligent SUV
Upgraded HI Model	Yijing	Dongfeng	Full-size SUV
HI Model	Avita	Changan	High-end Intelligent Electric
Component Supply Model	Multiple	Audi, Nissan, Toyota, etc.	Technical Solution Supply

This multi-level, multi-dimensional cooperation model enables Huawei to cover the full price range from RMB 150,000 to RMB 1 million, maximizing its intelligent vehicle market share[2][8].

Yinwang’s core competitiveness lies in its full-stack independent R&D capabilities, with vertical integration achieved from chips, operating systems to algorithm platforms[1]:

• Installation volume of Kunlun ADS exceeds 1 million units
  : This milestone was achieved in August 2025, covering 28 models[1]
• Shipment volume of lidars exceeds 1 million units
  : Reflects a significant improvement in hardware supply capacity
• Clear technology implementation path
  : Launched the first high-speed L3 commercial solution in 2025, with the goal of large-scale commercialization of L3 and urban L4 pilots in 2026[1]
• Increased proportion of software revenue
  : The proportion of software revenue reached 18% in 2024, with the profit model continuously optimized[1]

Compared with traditional Tier 1 suppliers such as Bosch, relying on Huawei’s technological accumulation in the ICT field and ToC experience, Yinwang is better at building an integrated ecological closed loop of “human-vehicle-home”[1].

Yinwang’s cooperation models have evolved from the “HI Model” to the “Smart Selection Model” and then to the “HI Plus Model”:

1. HI Model
   : Provides full-stack intelligent automotive solutions for automakers. BAIC Arcfox and Changan Avita once adopted this model, but the market response was mediocre[2]
2. Smart Selection Model (HarmonyOS Intelligent Mobility)
   : Huawei deeply participates in product definition, design and sales channels, and the AITO brand has achieved great success[2]
3. HI Plus Model
   : Yinwang cooperated with GAC and Dongfeng to launch the “Qijing” and “Yijing” brands, integrating Huawei’s IPD/IPMS processes into product development, deeply participating in vehicle definition, with higher participation and deeper binding than the HI Model[3]

This model evolution reflects Huawei’s strategic flexibility and market adaptability in the intelligent automotive field.

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For Yinwang to successfully go public, it needs to meet the following conditions and seize the appropriate timing window:

Consideration Dimension	Current Status	IPO Requirements	Time Estimate
Business Scale	2024 revenue of RMB 26.3 billion	Need to reach over RMB 50 billion	2026-2027
Profitability	Already profitable	Net profit margin of over 15%	Basically satisfied
Equity Structure	Huawei holds 80% controlling stake	Needs further optimization	Ongoing
Market Position	Leading in China	Need to establish global competitiveness	After 2027
Capital Market Environment	To be observed	Need window period for A-share/H-share	Depends on market index

From the perspective of business development stages, Huawei’s automotive business has successively completed the two stages of “0-1 start-up, 1-10 popularization”, and will next enter a new stage of “10-100” large-scale expansion[2]. The core task of this stage is to consolidate market position, optimize the profit model, and lay a solid foundation for future capital market operations.

Yinwang’s valuation logic can be analyzed from the following dimensions:

According to institutional forecasts, Yinwang’s 2025 net profit is expected to reach RMB 12 billion to RMB 15 billion[1]. If calculated according to the valuation logic of technology companies:

• Price-to-Earnings Ratio Method (35-40x)
  : Corresponding valuation of RMB 420 billion to RMB 600 billion[1]
• Price-to-Sales Ratio Method (15-20x)
  : Based on 2025 revenue forecast (expected RMB 40 billion to RMB 50 billion), corresponding valuation of RMB 600 billion to RMB 1 trillion

From the perspective of industrial capital, Yinwang’s valuation should also take into account:

• Strategic synergy value
  : As a core technological platform for intelligent vehicles, Yinwang undertakes the key mission of the entire industry’s intelligent transformation
• Ecological premium
  : Yinwang has established cooperation with 14 automakers, covering 33 mass-produced models[8], with significant ecological value
• Technological exclusivity
  : Yinwang has leading domestic technological advantages in L3 and higher-level autonomous driving fields

In the long term, with the increase in intelligent driving penetration rate and the expansion of the proportion of software revenue, Yinwang is expected to achieve the target of RMB 150 billion in revenue and RMB 30 billion in net profit in 2027, with a market value possibly exceeding RMB 1.2 trillion[1]. This expectation is based on the following assumptions:

• Intelligent driving penetration rate reaches over 40%
• Yinwang’s market share remains above 30%
• The proportion of software revenue increases to over 30%

If Yinwang is to go public, it may face the following choices:

• A-share (STAR Market/GEM)
  : The STAR Market is more inclusive of technology innovation enterprises, but as a Huawei subsidiary, Yinwang may face complex issues such as VIE structure
• Hong Kong Stock Exchange
  : Seres was listed in Hong Kong in November 2025, providing a reference path for Yinwang[9]. The Hong Kong Stock Exchange has a high acceptance of intelligent vehicle concepts
• US Stock Exchange
  : Although the valuation may be higher, geopolitical factors increase uncertainty

• Spin-off Listing
  : Spin off Yinwang from the Huawei system for independent listing, which requires solving related party transaction and independence issues
• Listing after Introducing Strategic Investors
  : Continue to introduce more industrial capital, optimize the equity structure before launching the IPO
• Whole Listing
  : Complete the listing in one go, but may face challenges such as regulatory approval

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Although Yinwang has turned losses into profits, there are still uncertainties about the sustainability of its profitability:

• Revenue structure risk
  : Current revenue is still dominated by hardware sales, with software revenue accounting for only 18%[1], and the profit model transformation has not yet been completed
• Customer concentration risk
  : The five brands of HarmonyOS Intelligent Mobility contribute the main revenue, resulting in high customer concentration
• Price competition risk
  : Competition in the intelligent driving solution market is intensifying, and competitors such as BYD and Tesla may launch price wars

Yinwang faces competitive pressure from multiple aspects:

• Transformation of traditional Tier 1 suppliers
  : International giants such as Bosch and Continental are accelerating their layout in the intelligent driving field
• Entry of tech giants
  : Domestic tech enterprises such as Baidu Apollo and Horizon Robotics continue to make efforts
• Self-research trend of automakers
  : Leading automakers such as BYD and Li Auto are increasing their self-research investment, which may reduce their dependence on suppliers[8]

Intelligent driving technology is in a period of rapid iteration, and Yinwang needs to continue to invest in R&D to maintain technological leadership:

• Implementation of L3/L4 technology
  : There is uncertainty in the technological evolution from high-speed L3 to urban L4
• Chip supply
  : The supply and independent controllability of high-end intelligent driving chips remain challenges
• Regulations and policies
  : The regulatory framework for high-level autonomous driving is still imperfect, which may affect the commercialization process

Yinwang’s open platform model also faces potential risks:

• Automakers’ “soul” anxiety
  : Automakers in deep cooperation with Huawei face doubts of “losing their soul”, which may affect the depth of cooperation[8]
• Internal brand competition
  : There is competition among the five brands of HarmonyOS Intelligent Mobility, which may dilute brand value
• Equity dilution
  : Opening up equity to more partners may dilute Huawei’s control

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Based on comprehensive analysis, Yinwang has the following core competitive advantages:

1. Full-stack independent R&D capability
   : Vertical integration from chips to algorithms, with significant technological barriers
2. Huawei brand endorsement
   : Huawei’s technological strength and brand influence provide strong support for Yinwang
3. Ecological cooperation network
   : Has established cooperation with 14 automakers, covering 33 mass-produced models
4. Rapid performance growth
   : 2024 revenue increased by 474.4% year-on-year, with continuous improvement in profitability
5. Clear evolution path
   : Clear planning for technology implementation from L2 to L3 and then to L4

Based on the above analysis, Yinwang’s reasonable valuation range can be judged as follows:

Valuation Method	Valuation Range (in RMB billion)	Remarks
Transaction Valuation (115 billion)	115	Valuation when Avita/Seres acquired shares in 2024
Short-term Forecast (2025-2026)	400-600	Based on 35-40x P/E ratio
Mid-term Forecast (2027)	800-1200	Based on revenue of RMB 150 billion and net profit of RMB 30 billion
Long-term Potential (2030)	1500+	Scenario where intelligent driving penetration rate exceeds 50%

Although Yinwang’s official denied the rumor of listing in 2026, from a long-term perspective, Yinwang has the potential for independent listing:

1. Strategic need
   : Huawei’s rotating chairman Xu Zhijun once stated that if Huawei builds cars, it can only account for 10%-20% of the market share, while acting as a supplier can serve more automakers[2]. Independent listing helps Yinwang obtain more development funds
2. Capital demand
   : With the expansion of business scale, Yinwang needs more funds to support R&D and market expansion
3. Industrial integration
   : After introducing more industrial capital, listing will become a natural choice

It is expected that Yinwang’s IPO path may be divided into three stages:

• Phase 1 (2025-2026)
  : Continue to introduce industrial capital and optimize the equity structure
• Phase 2 (2027-2028)
  : Business scale reaches over RMB 50 billion, and IPO preparation is launched
• Phase 3 (2028-2030)
  : Select an appropriate window to complete the listing

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1. Smooth progress of independence
   : Yinwang has completed independent operation, equity optimization and profit model transformation, evolving from a loss-making division to an intelligent automotive platform company with a valuation of over RMB 100 billion
2. IPO rumor denied
   : Yinwang clearly responded that the rumor of listing in the second half of 2026 is fake news, and there is no IPO plan in the short term
3. Huge valuation potential
   : Based on business growth expectations and industrial strategic value, Yinwang’s valuation may reach the range of RMB 400 billion to RMB 1.2 trillion
4. Outstanding strategic value
   : As the core carrier of Huawei’s intelligent automotive ecosystem, Yinwang undertakes the key mission of the intelligent transformation of China’s automotive industry

For investors focusing on Yinwang and its ecosystem, it is recommended to pay attention to the following investment opportunities:

1. Direct investment
   : Yinwang currently only accepts investors with industry backgrounds, and investors can benefit indirectly by investing in cooperative automakers such as Seres and Avita
2. Industrial chain investment
   : Pay attention to component suppliers with in-depth cooperation with Yinwang, such as lidar and domain controller segments
3. Benchmark investment
   : Pay attention to intelligent driving concept companies with similar business structures in the A-share and Hong Kong stock markets
4. Long-term tracking
   : Continuously pay attention to Yinwang’s equity changes, business development and capital market dynamics to seize investment opportunities

Investors need to pay attention to the following risk factors:

• Significant uncertainty in Yinwang’s listing time
• Competition in the intelligent driving industry may intensify
• Changes in Huawei’s cooperative relationships with automakers may affect Yinwang’s business
• Changes in macroeconomic and policy environments may affect the prosperity of the intelligent automotive industry