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On October 28th, Cyrus released its latest quarterly results. According to the financial report, Selis's operating income in the third quarter was 10.707 billion yuan, a year-on-year increase of 163.39%. The net profit belonging to the shareholders of the listed company was-947 million yuan, compared with-602 million yuan in the same period; the net profit belonging to the shareholders of the listed company after deducting non-recurrent profits and losses was-1.151 billion yuan and-797 million yuan in the same period; during the reporting period, the government subsidy included in the profits and losses of Cyrus was 36 million yuan.

As for the increase in operating revenue, Cyrus said it was due to the substantial increase in sales of a series of new energy vehicles during the reporting period. For the expansion of net profit loss, Cyrus said that although the sales of new energy vehicles have increased significantly, fees and taxes have also increased accordingly. At the same time, it is affected by the rising prices of chips, power batteries and other raw materials, and the continuous investment in product research and development and marketing.

Taking advantage of the east wind of Huawei, Cyrus has directly jumped from a marginal car company to the head of the new energy vehicle market, becoming the new energy vehicle manufacturer with the highest volume of "China".

In January 2019, Cyrus and Huawei held a cooperation signing ceremony, and the two sides indicated that they would further promote cooperation in the field of new energy vehicles and carry out comprehensive cooperation in the areas of industrial Internet, ICT infrastructure, intelligence and networking of new energy vehicles. Huawei will provide all-round assistance for Selis to build new energy vehicles. In April 2021, Cyrus officially entered into a partnership with Huawei, and the two sides signed a memorandum of cooperation in the field of new energy vehicles, followed by the launch of the first cooperative model, Cyrus Huawei Smart SF5, with a price range of 21.68 yuan to 246800 yuan. The car is sold not only on Huawei's official website, but also in Huawei's offline stores.

It is understood that the cooperation mode between Huawei and automakers is mainly divided into three modes: parts supply mode, HI (Huawei Inside) solution integration mode, and smart selection mode. In the smart selection mode, Huawei will be deeply involved in the design of models and open its sales channels to new energy vehicle manufacturers, but the ownership of related models still belongs to the car manufacturers. Huawei only makes a profit from the supply of parts and vehicle sales commission.

After partnering with Huawei, the share price of Cyrus, which owns the concept of Huawei Automobile, continues to soar, with a total market capitalization of up to 110 billion yuan. In terms of sales, the market response of Cyrus SF5, which relies on Huawei, was lacklustre after its launch, with a cumulative sales volume of 8169 vehicles in 2021, a significant increase compared with the same period in 2020, but its performance in the new energy vehicle market is mediocre.

In order to break the situation, Cyrus has carried out a second cooperation with Huawei to launch the high-end new energy brand AITO, and the first model, the AITO M5, was officially launched at Huawei's flagship winter new product launch. At the press conference, Yu Chengdong spent more than an hour introducing the M5 and stressed that the M5 is Huawei's "deeply involved in R & D, design and manufacturing from scratch, fully reflecting the capabilities and concepts of Huawei's smart car." Facts have proved that the cooperation between Selis and Huawei has indeed achieved phased success. In September, for example, AITO sold 10045 vehicles, exceeding 10,000 for two months in a row.

Such a dazzling achievement in AITO can not be achieved without the strong support of Huawei, which has almost contracted the core work of new car development, design, brand and sales. However, despite the sharp rise in sales, Cyrus not only did not turn losses into profits, but "sold more and more losses." The financial report shows a cumulative net loss of 2.675 billion yuan in the first three quarters and 1.922 billion yuan in the same period in 2021. The data show that the first loss of Xiaokang shares was in 2020, when the net loss increased from 1.729 billion yuan to 1.824 billion yuan in 2021. The loss was due to the soaring marketing expenses, R & D costs and team expansion after the transformation of the new energy vehicle market.

Even with huge losses, Cyrus has full confidence in building cars in cooperation with Huawei. Zhang Xinghai, chairman of Selis, said in an interview: "if BMW comes to talk to me about joint venture car construction at this time, I will not do anything. I will unswervingly cooperate with Huawei across the border."

Even with huge losses, Cyrus has full confidence in building cars in cooperation with Huawei. Zhang Xinghai, chairman of Selis, said in an interview: "if BMW comes to talk to me about joint venture car construction at this time, I will not do anything. I will unswervingly cooperate with Huawei across the border."

In the field of automobile manufacturing, no car company has given its life to the supply chain, except Cyrus. At a deeper level, Selis is deeply tied to Huawei, which does more harm than good. First, Huawei does not build cars, but it is cooperating with more and more car companies, such as BAIC Jihu, Changan Automobile, GAC GROUP, Great Wall Automobile, Chery and so on. For Cyrus, losing Huawei means losing everything, but this is not the case for Huawei. It can cooperate with Cyrus as well as with other car companies, which means that Huawei is currently blessed with all-round technology of Cyrus. In the future, Cyrus may not be able to "enjoy", not only lose its core competitiveness, but also have many more competitors.

Second, Huawei will expand its cooperation with other car companies. Cyrus will not be the only brand in Huawei's offline sales network in the future. According to Huawei's plan, other Huawei empowered brands will also enter Huawei's flagship stores, such as Avita. At that time, can Cyrus stabilize the existing sales with its own strength and its own sales channels?

Finally, the reason why consumers buy the world, to a large extent, depends on the influence of Zhonghua, rather than HUAWEI. Before that, some consumers deducted the "Selis" logo at the back of the car and replaced it with "Selis", which is enough to reflect the lack of confidence of users in the Selis brand, and consumers' awareness of Huawei is much higher than that of Jinkang Selis. At the same time, it also shows that the question world is a veritable Huawei car in the eyes of consumers.

All in all, Cyrus uses Huawei technology to achieve new energy high-end intelligent corner overtaking, but the model is almost built 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 can not be separated from Huawei's support. If the AITO brand fades the aura of Huawei, Cyrus will immediately show its true colors. Of course, Cyrus chose to cooperate with Huawei, which made the wisest decision, and no matter what happened in the future, Huawei pulled Cyrus out of the abyss and was the first car company to rely on Huawei to receive a dividend. However, in the eyes of other carmakers, the risks of such an approach are huge.

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