AutoBeta(AutoBeta.net)09/04 Report--

A few days ago, Cyrus released its interim results for 2023. Data show that Selis's operating income during the reporting period was 11.032 billion yuan, down 11.14% from the same period last year. The net profit belonging to the shareholders of the listed company is-1.344 billion yuan, while the net profit for the same period is-1.727 billion yuan. The net profit after deducting non-recurrent profit and loss belonging to the shareholders of the listed company is-1.885 billion yuan, while the net profit for the same period is-1.714 billion yuan. To put it simply, Selis's operating income fell and its net loss improved in the first half of the year.

Selis said sales fell in the first half of the year as sales of existing models were affected by the wait-and-see mood caused by promotions in the first quarter and expectations that the M5 version would be released in the second quarter. Due to the tight supply chain and rising raw material prices in the previous year, the company prepared a certain inventory of raw materials. During the reporting period, the company digested the raw materials with higher previous costs, and its gross profit margin decreased compared with the same period last year. At the same time, the company maintains high R & D investment in the core technology field of new energy vehicles, and continues to introduce R & D and technical personnel, and R & D expenses increase compared with the same period last year. With the launch of the M5 smart driver version and other models, as well as an increase in overseas sales and a drop in raw material prices, the company's sales and profitability are expected to improve in the second half of the year.

It is understood that the losses after the cooperation between Cyrus and Huawei increased significantly, withholding non-net losses of 884 million yuan, 2.308 billion yuan, 2.793 billion yuan and 4.296 billion yuan respectively from 2019 to 2022, plus 1.885 billion yuan in the first half of 2023. Cyrus tied Huawei to a cumulative loss of more than 12 billion over the past four and a half years.

AITO is the core brand of Selis, which has long accounted for more than 70% of its total sales, which determines its trend in the domestic auto market, and the decline in sales has directly poured cold water on Selis's financial results. Retail data show that AITO brand sales in the first half of the year were 22666, including 17820 for the M5 and 4846 for the M7.

After launching the AITO interface brand after partnering with Huawei, Cyrus did gain a certain amount of voice in the new energy vehicle market, but Huawei is almost entirely to blame. Most of the models of the AITO brand are designed and developed by Huawei, and the core technology is also in Huawei's hands. At the same time, the model is also included in Huawei's terminal sales channels, and even the new car is basically chosen to be released at Huawei's new product conference. Huawei has publicly made it clear many times that it does not build cars, and Cyrus also said that the cooperation with Huawei is not a contract manufacturing relationship, but it is almost certain that Cyrus has never been able to occupy an absolutely dominant position in its cooperation. In the eyes of many consumers, buying Qinjie models is the blessing of Huawei brand and technology, and without Huawei's AITO, it may be "nothing".

In March this year, Chongqing Cyrus Landian Automobile Co., Ltd. (hereinafter referred to as "Selis Landian") was established with a registered capital of 30 million yuan, which is wholly owned by Dongfeng Xiaokang Automobile Co., Ltd. In the same month, Blue Electric E5 went on the market with a price range of 13.99-151900 yuan. In addition to the car engine using HUAWEI HiCar3.0, Landian E5 no longer Huawei, its core three power technology uses BYD Fudi electric mixing system, and is operated by Dongfeng Fengfeng, and builds an independent sales channel. However, without the aura of Huawei, the market performance of Blue Electric E5 is also very dismal. Retail data show that as of July, Blue Power E5 accumulated sales of 1554 vehicles, monthly sales of about 400 units.

At the same time, Selis is no longer Huawei's only option. At present, the first joint model between Huawei and Chery has been declared in the Ministry of Industry and Information Technology. The new car will be the first model with HarmonyOS 4 and will be officially released this quarter. And the new car logo will not use the "AITO" serial name, but "LUXEED", which belongs to Chery Automobile Company.

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, from the point of view of the industry, the line of defense of this approach is huge. Huawei has gone deep into the soul of Cyrus to control its trend in the auto market, and the number of companies building cars in cooperation with Huawei is also expanding, as well as BAIC, Changan, Chery and so on. There will be more companies to cooperate with Huawei in the future.

Any car company can take its place, but Cyrus can never do without Huawei.

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