In-Depth Analysis Report on Changan Automobile's Intelligentization Investment Returns

As a leading central state-owned enterprise (SOE) in China’s automotive industry, Changan Automobile has invested a total of over

in intelligentization R&D since launching its "Beidou Tianshu" intelligentization strategy in 2018 [0][1]. In February 2025, the company officially released the "Beidou Tianshu 2.0" plan, marking a new phase for its intelligentization strategy [2][3].

• R&D Team Size: 18,000 people
• Software and AI Talents: 5,000+ people
• Patent Achievements: Over 200 standards, 9,345 patents [2][4]
• H1 2025 R&D Investment: RMB 3.284 billion, YoY growth of 12.76%, accounting for 4.5% of revenue [0]

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Based on the SDA platform and Tianshu Large Model, Changan Automobile has built a complete intelligentization technology matrix [2][3]:

Technology Field	Product Name	Core Functions
Intelligent Driving	Tianshu Intelligent Driving	Full-scenario L3/L4 autonomous driving capability, AEB collision avoidance speed increased to 135km/h
Intelligent Cockpit	Tianyu Cockpit	100% AI penetration, first-to-market end-to-end interactive intelligent driving
Intelligent Chassis Control	Tianheng Chassis	First-to-market crosswind stabilization, strong braking, and rollover suppression functions

In December 2025, Changan Automobile obtained the nation’s first dedicated L3-level autonomous driving license plate "Yu AD0001Z", becoming the

to complete product access and safety assessment for L3-level autonomous driving [4]. This marks the transition of the company’s intelligentization technology from the R&D phase to large-scale commercialization.

In the field of battery technology, Changan launched the Jinzhongzhao All-Solid-State Battery:

• Energy Density: 400Wh/kg
• Driving Range: Over 1,500 km
• Safety Improvement: 70% (AI Remote Diagnosis)
• Mass Production Plan: Vehicle loading verification in 2026, phased mass production starting in 2027 [3]

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In November 2023, Changan and Huawei jointly established Yinwang Intelligent Technology Co., Ltd., with Changan holding a

[5][6]. Avatr Technology, Changan’s high-end brand, became the first signed automotive enterprise shareholder of Yinwang. This cooperation model brings three strategic benefits:

1. Technological Priority
   : Access to Huawei’s latest intelligent driving technology 6 months earlier than other automakers [5]
2. Participation in Technology Definition
   : Ensures that the technology roadmap aligns with Changan’s product planning
3. Data Sharing
   : Accumulated 12 million kilometers of real-road test data [5]

Indicator	2024	2025	Change
Intelligent Configuration Rate	35%	82%	+47pct
User Payment Willingness	-	65%	-
Increase in Single-Vehicle Revenue	-	RMB 12,000	-

Among the 8 new models launched in 2025,

[5][6].

Yinwang has created a new "Technology Authorization + Service Revenue Sharing" model:

• Basic Technology Authorization Fee
  : RMB 2,000-5,000 per vehicle
• Premium Function Subscription
  : Monthly fee of RMB 980 for ADS advanced functions, with a 15% penetration rate
• Data Service Revenue Sharing
  : 3:7 split of connected vehicle value-added service revenue

It is expected that Yinwang will contribute

in investment income to Changan in 2025, which is expected to increase to in 2027 [5].

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• Total Sales:
  2.913 million units
  , YoY growth of 8.5%, hitting a 9-year high [4]
• New Energy Vehicle Sales:
  452,000 units
  , YoY growth of 49.1% [0]
• New Energy Penetration Rate: Increased from 33% to
  50%
  in Q2 alone [0]

The input-output ratio of Changan Automobile’s intelligentization R&D has increased to

, significantly higher than the industry average of [5]. This means that for every RMB 1 invested in intelligentization R&D, a comprehensive return of RMB 3.2 can be obtained.

Comparison Indicator	Changan Automobile	Industry Average
2025 Input-Output Ratio	3.2	2.5
Average Patents per R&D Personnel	2.3 pieces/year	1.3 pieces/year
Procurement Cost of Huawei’s Intelligent Driving System	Reduced by 18%	-

• Average Selling Price:
  Over RMB 330,000
  , surpassing same-class BBA models [5]
• October 2025 sales exceeded
  10,000 units
  for the first time [5]
• Avatr 06 received over
  12,500 pre-orders
  within 48 hours of launch [5]
• Pre-IPO valuation reached
  RMB 80 billion
  , with Changan’s 51% stake corresponding to RMB 40.8 billion in asset appreciation [5]

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H1 2025 Financial Highlights:

• Gross Profit Margin:
  14.6%
  , up 0.8 percentage points YoY [0]
• Penetration Rate of Self-developed New Energy Vehicles rose to
  44.4%
  , up 6.88 percentage points QoQ [0]
• Gross Profit Margin of Overseas Business:
  22.3%
  , far exceeding that of domestic business [0]

Indicator	2025E	2026E	2027E
Net Attributable Profit (RMB 100 million)	73.65	93.34	95.77
EPS (RMB)	0.74	0.94	0.97
PE Ratio	16.92	13.35	13.01

It is expected that the two major platforms of Avatr and Yinwang will achieve

in 2026, contributing the following by 2028:

• 300,000 units
  of annual sales (accounting for 25% of Changan’s new energy vehicle sales)
• RMB 5 billion
  in net profit (accounting for 15% of Changan’s total net profit) [5]

1. 2026 Avatr Hong Kong IPO
   : Expected to significantly boost Changan’s overall valuation
2. Penetration Rate of Yinwang Technology in Main Brands
   : Progressing from the current 35% to the 70% target
3. Commercialization of L3-Level Autonomous Driving
   : Technological advantages directly converted into product premium capability

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Over-reliance on Huawei’s technology may lead to hollowing out of core capabilities. Changan responds with a "dual-track system":

• Independent R&D of the Tianshu Intelligent Platform runs in parallel with Huawei’s solution
• Currently, independently developed patents account for
  54%
  ; the target is to increase this to
  70%
  by 2027 [5]

• Avatr’s Break-even Point: Annual sales of
  250,000 units
  (150,000 units expected in 2025)
• Yinwang’s Profit Point: Installation volume of
  3 million units
  [5]

Competition in the new energy vehicle market is becoming increasingly fierce, and the company faces risks such as lower-than-expected demand and delayed mass production of new projects [0].

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1. Significant Returns from Strategic Investment
   : Intelligentization investment has moved from a simple technology accumulation phase to a critical period of improving product competitiveness and realizing commercial value.
2. Positive Cycle of Technology-Product-Market Formed
   : A positive cycle of "high-end breakthrough - technology decentralization - scale effect - cost reduction - re-investment in R&D" has initially been established.
3. Innovative Value of Cooperation Model Highlighted
   : In-depth cooperation with Huawei not only provides technical empowerment but also creates a sustainable profit model of "technology authorization + service revenue sharing".
4. Clear Long-Term Growth Space
   : By 2030, the company’s overall sales target is
   5 million units
   , with sales of digital-intelligent new vehicles exceeding
   3 million units
   , becoming a world-class brand [2][3].

: The continuous advancement of the intelligentization strategy is reshaping Changan Automobile’s competitive landscape, and technological investment is gradually being converted into improved product strength and brand premium capability. It is recommended to pay attention to the progress of Avatr’s 2026 Hong Kong IPO and the penetration rate of Yinwang technology in main brands, which will be key catalysts for valuation restructuring.

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[0] Dongguan Securities - Changan Automobile 2025 Half-Year Report Review
[1] EET-China-2025 Changan Automobile Research Report
[2] Xinhua News Agency - Official Release of "Beidou Tianshu 2.0" Plan
[3] Sina Finance - Changan Automobile Releases Beidou Tianshu 2.0 Plan
[4] Sina Finance - Behind the 2.913 Million Unit Sales Jump
[5] Eastmoney - Analysis of Value Enhancement of Avatr and Yinwang to Changan Automobile
[6] CLS - Avatr Takes the Lead in Acquiring Stake in Yinwang
[7] Guoyuan Securities - Report on Leading Independent Passenger Vehicle Enterprises