(Yicai) Aug. 14 -- As HoloMatic's restructuring plans encountered uncertainties, the Chinese intelligent driving solutions provider decided to dissolve core departments, including the data and research and development divisions, according to a media report.

The restructuring plan put forward by HoloMatic and carmaker GAC Group did not receive the support of shareholders last week, Caijing Magazine's Late Post Auto reported today.

Last month, GAC and HoloMatic laid out a restructuring plan to invest in a new company set up by HoloMatic to provide GAC's auto brands with intelligent driving solutions from HoloMatic.

On Aug. 9, HoloMatic's founder and Chief Executive Ni Kai sent an internal letter to inform employees that the company would be unable to pay July and other overdue salaries, according to Late Post Auto. Three days later, HoloMatic notified part of the staff to pack their belongings and leave the office.

HoloMatic still has about 150 employees on payroll, compared to nearly 600 in 2022.

China's Enforcement Information Disclosure Website showed that HoloMatic has been listed as the defendant in court hearings in Beijing's Haidian district, Suzhou, and Guangzhou's Huadu district, involving an amount of nearly CNY750,000 (USD104,918).

Founded in June 2017, HoloMatic has raised over CNY1 billion (USD140 million) from investors, including GAC, IDG, HongShan, Guangdong Technology Financial Group, and NavInfo. After a Series C+ financing in July last year, GAC became HoloMatic's largest external shareholder with a 13 percent stake.

The intelligent driving sector is entering a rapid phase of elimination and consolidation, with companies that failed to secure major clients already in financial trouble, according to industry insiders.

On one side, there are strong alliances, such as BYD's Fangchengbao project adopting Huawei Technologies' intelligent driving solutions, and on the other, there are companies still trying to secure funds or pushing for initial public offerings, such as Beijing Jianzhi Robot Technology, QCraft, Haomo.AI Technology, Momenta, and WeRide.

Editor: Futura Costaglione