Key Takeaways
(P1) Qianli Technology is making a strategic pivot to replicate Huawei's successful automotive business model, aiming to install its smart driving system in 8 million cars in three years and directly challenging Huawei's market dominance.
(P2) "If we achieve 8 million vehicles, we will become one of the world's largest smart driving solution suppliers," Zhao Ming, the recently appointed co-chairman and former CEO of Honor, said at his first public appearance for the company.
(P3) The strategy involves launching a new premium AI car brand, "Pallade," with production slated for 2026, and pursuing a joint venture with BAIC Group. This follows a major integration of nearly 3,000 smart-driving personnel and a refiling for a Hong Kong IPO in April 2026 to raise fresh capital.
(P4) The ambitious plan puts Qianli in a high-stakes race against time and financial realities. The company remains heavily dependent on Geely for over 33% of its revenue and more than 50% of its procurement, a relationship that complicates its goal of becoming a truly independent Tier 1 supplier for other automakers.
Qianli's new direction, steered by a team including several former Huawei executives, mirrors the dual approach of its primary competitor. By launching its own "样板车" (showcase car) with the Pallade brand, Qianli intends to demonstrate the full capabilities of its AI-powered architecture, from smart cockpit to autonomous driving. Simultaneously, it is moving to supply its solutions to external automakers, with BAIC as its first key target outside the Geely ecosystem.
This strategy is essential for achieving the scale necessary to compete. Zhao Ming's target of 8 million vehicles dwarfs Qianli's current install base of 460,000. It's a direct response to the scale already achieved by Huawei, whose Qiankun smart driving system had surpassed 1 million units by May 2026.
The strategic shift comes with significant financial pressure. According to its latest IPO prospectus, Qianli's revenue grew from 6.70 billion to 9.88 billion yuan between 2023 and 2025. However, the company accumulated net losses exceeding 900 million yuan over the same period.
The core of its business remains in traditional, low-margin manufacturing. In 2025, traditional auto and motorcycle sales constituted nearly 90% of revenue, with the auto segment posting a slim gross margin of just 2.8%. In contrast, the nascent smart driving solutions business, while boasting a 30.4% margin, contributed only 3.5% to total revenue, or 350 million yuan. To fuel its AI ambitions, R&D spending has quadrupled in three years, reaching 822 million yuan in 2025, further straining profitability. Breaking its dependency on Geely is not just a strategic goal but a financial necessity for survival and valuation as a public company.
This article is for informational purposes only and does not constitute investment advice.
