AutoBeta(AutoBeta.net)09/03 Report--

On September 2, Selis Group Co., Ltd. (hereinafter referred to as "Selis") released production and sales data showing that Selis sold 10045 vehicles in August 2022, an increase of 1277.91% over the same period last year, and a cumulative sales volume of 39433 vehicles from January to August in 2022, an increase of 1211.37% over the same period last year. Judging from the data, Cyrus was indeed saved after building a car in cooperation with Huawei.

On July 31, Chongqing Xiaokang Industrial Group Co., Ltd. officially changed its name to Cyrus (Group) and changed its brand-new enterprise logo. In theory, Cyrus is still the original "well-off share", which has not changed in essence, but its sense of existence will be improved by changing its name. As for the reasons for changing the name, Cyrus said in the announcement that due to the explosive growth of new energy, based on the thinking of the market, combined with its own accumulation and achievements, in order to facilitate investors to accurately position the current company, and the understanding of strategic planning.

How is the market performance of Cyrus, which is deeply bound to Huawei? Take August sales as an example, Cyrus sold 10045 vehicles in August 2022, leading ideal, Xiaopeng, Polar Krypton, Lantu, etc., inferior to BYD, GAC Ean, Nezha, Zero run, NIO and so on. Although the performance is in order, Selis's sales have indeed shown steady growth since it was built in cooperation with Huawei, and this figure is expected to continue to grow.

There is no doubt that the cooperation between Cyrus and Huawei is successful, but there are many hidden worries. On the face of it, Cyrus uses Huawei technology to achieve high-end intelligent corner overtaking of new energy, but it should be noted that the leading AITO boundary brand is almost dominated by Huawei, whether it is Huawei Hongmeng cockpit or Huawei Drive ONE pure electric drive platform, but also online and offline sales channels and core components, the success of AITO is inseparable from the support of Huawei, whether core technology or terminal sales channel construction. In other words, Huawei and Cyrus build cars, more like Huawei's home court, Huawei can escape, and Cyrus can not lose Huawei.

On August 20th, Selis Group released its semi-annual report for 2022. The financial report shows that the operating income of Cyrus Group in the first half of 2022 was 12.415 billion yuan, an increase of 68.14% over the same period last year, a net loss of 2.316 billion yuan, an increase of 226.29% over the same period last year, and a net profit loss of 1.727 billion yuan, an increase of 259.79% over the same period last year. Judging from the data, the revenue growth of Cyrus Group is mainly due to the steady growth of AITO sales, but Selis's loss has increased sharply, with a feeling that "the more you sell, the more you lose."

In fact, Huawei sells far harder than Cyrus. Revenue from Huawei's terminal business has been declining due to factors such as chip supply constraints since Huawei was sanctioned, and Huawei's biggest hope for offline channels has turned to selling cars. Gaozhu, a dealer who works closely with Huawei, told Interface News that a M5 can get a gross profit of eight points, calculated at a transaction price of 300000 per car, plus income from car loans and insurance, which is equivalent to selling 60 Huawei mobile phones.

To be sure, while AITO sales continue to be high, Huawei, not Cyrus, is the beneficiary. At present, Selis and Huawei cooperate to build cars, both sides take what they need, win-win in both directions, but in this game, Huawei undoubtedly guides the trend and development of the game, is the real winner. To borrow a phrase from Zhang Xinghai, chairman of Cyrus: "if BMW comes to talk to me about the joint venture car at this time, I will not do it, and I will unswervingly cooperate with Huawei across the border."

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