AutoBeta(AutoBeta.net)02/06 Report--

Recently, according to Selis's performance forecast, the net profit attributed to the owner of the parent company is expected to be-3.95 billion yuan to-3.5 billion yuan in 2022, and the net loss after deducting non-recurrent profit and loss is 3.85 billion yuan to 4.3 billion yuan. Revenue is expected to reach 33.5 billion to 35 billion yuan, an increase of 100.38% to 109.36% compared with the same period last year. The company's gross profit margin increased over the same period last year, with a positive quarter-on-quarter increase during the reporting period.

For the increase in losses, Cyrus said: last year, due to the sharp rise in the price of chips, power batteries and other raw materials, resulting in higher production costs. Although the sales volume has achieved continuous positive growth in the first-third quarter, the passenger flow into the store and marketing activities are limited, while affecting the supply, logistics, production and many other links, product production and sales volume did not meet expectations. In addition, the previous investment in fixed assets is larger, depreciation and amortization expenses are higher, resulting in increased losses. At the same time, Cyrus pointed out that the increase in gross profit margin was mainly due to a significant increase in the company's sales of new energy vehicles last year.

Data show that Xiaokang Co., Ltd. was established in 2007, with Dongfeng well-off Automobile, Xiaokang Automobile Power and Ruichi New Energy vehicles and other car companies, among which Cyrus is a brand of Chongqing Jinkang Selis Automobile Co., Ltd., affiliated to Chongqing Xiaokang Industrial Group Co., Ltd., founded on November 6, 2017, mainly focused on the field of new energy electric vehicles. In April 2021, Xiaokang shares and Huawei signed a memorandum of cooperation in the field of new energy vehicles, launching the first cooperation model, Cyrus Huawei Smart SF5, with a price range of 21.68 yuan to 246800 yuan, which will be sold on Huawei's official website and enter Huawei stores and flagship stores at the same time. In July 2022, "Chongqing Xiaokang Industrial Group Co., Ltd." changed its name to "Cyrus Group".

The well-off shares near Huawei also ushered in a period of highlight, with the share price soaring to a maximum of 90.50 yuan per share. However, the sales of Huawei Smart SF5, the first model of the cooperation between the two sides, are not satisfactory. According to relevant data, the annual sales of Cyrus SF5 in 2021 are only 8169. In order to reverse sales, Xiaokang shares once again cooperated with Huawei to launch the new energy brand AITO, and successively launched MJ / M5 EV and M7 models last year.

Facts have proved that its three models have indeed achieved good results, with relevant data showing that a total of 75000 new cars have been delivered in 2022. According to the official sales figures released by Selis, the cumulative production and sales of Selis new energy vehicles in 2022 reached 139132 and 135054 respectively, an increase of 233.64% and 225.9% respectively over the same period last year. Among them, the cumulative production and sales of Selis reached 83701 and 80041, up 660.37% and 626.39% over the same period last year. Judging from the data, it can be seen that the question world accounted for more than half of Selis's sales in 2022.

Of course, Huawei's support is indispensable for such a dazzling achievement in AITO. After all, Huawei almost contracted the core work of research and development, design, brand and sales of new cars. However, Selis, like other new energy car companies, is also in a state of "more and more losses", with unsatisfactory profits and has lost money for five years in a row. According to the relevant data, the net profit and loss in the third quarter from 2018 to 2022 are-152 million yuan,-884 million yuan,-1.729 billion yuan,-1.824 billion yuan and 2.675 billion yuan respectively. It has said: the increase in losses is mainly due to the soaring marketing costs, R & D costs and team expansion after the transformation of the new energy vehicle market.

However, even with huge losses, Cyrus expressed full confidence in partnering with Huawei to build cars. Zhang Xinghai, chairman of Cyrus, 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."

There is no doubt that Cyrus is working with Huawei to achieve intelligent corner overtaking at the high end of new energy, but the AITO brand is over-reliant on Huawei and is almost built by Huawei. Without Huawei's blessing, Cyrus would be in an awkward position. Under the pressure of Tesla's big price reduction, Cyrus was also forced to cut the price of the model by 30, 000 yuan. And the price reduction of 30,000 yuan for Cyrus, which is already facing losses, is undoubtedly even worse.

In addition, in order to strengthen cooperation with Huawei, Cyrus is also increasing its investment, which has been put into use in Liangjiang factory and Phoenix factory in 2022. According to Selis's third-quarter report for 2022, Selis had a net cash outflow of 2.07 billion in investment activities in the first three quarters and 1.578 billion yuan in the third quarter. From the point of view of the cooperation between the two sides, it is not difficult to see that Cyrus relies too much on Huawei, its own R & D investment is insufficient and lacks long-term competitiveness, which may be more fatal than losses for Cyrus.

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