AutoBeta(AutoBeta.net)07/30 Report--

On the evening of July 28, Selis Motors announced that the company intends to invest in Shenzhen Wang Intelligent Technology Co., Ltd. (referred to as "Pioneer"). If the transaction is completed, it will become a shareholding subsidiary of the company.

Data show that Shenzhen Wangwang Intelligent Technology Co., Ltd. was established on January 16, 2024, with a registered capital of 1 billion yuan. It is a wholly owned subsidiary of Huawei Technology Co., Ltd. at present, it has set up subsidiaries in Dongguan, Hangzhou, Shanghai, Nanjing and Suzhou, engaged in the research and development, design, production, sales and service of automotive intelligent system and component solutions. The main business scope includes automobile intelligent driving solution, automobile intelligent cockpit, intelligent vehicle control, intelligent vehicle cloud, vehicle light and so on.

With regard to equity participation, Cyrus said that on the basis of looking forward to the progress of the previous work of the relevant parties, the company started negotiations with the company and its shareholders to join the investment in the attraction, and jointly supported the company to become a world-class leader in the automotive intelligent driving system and components industry, and help it become an open platform to serve the automotive industry. However, Cyrus also said that the specific investment amount, transaction method, transaction price and other terms of Selis investment should be subject to the final transaction documents signed by both parties.

On the evening of July 9, Cyrus issued an unaudited performance forecast for the first half of 2024, which is expected to achieve operating income of 63.9 billion yuan to 66 billion yuan in the first half, an increase of 479% to 498% over the same period last year, and a net profit of 1.39 billion yuan to 1.7 billion yuan, turning losses into profits.

This means that Selis, which has been losing money for four years in a row, has finally crossed the threshold of "selling cars at a loss". According to the comprehensive annual report, Selis deducted non-net losses from 2019 to 2023 were 884 million yuan, 2.308 billion yuan, 2.793 billion yuan, 4.296 billion yuan and 4.817 billion yuan respectively, with a cumulative loss of more than 15 billion yuan.

Cyrus said that the reason for the pre-profit is that the company overfulfilled its doubling plan in the first half of the year, and the product structure was obvious, and the company ranked sixth in sales of luxury brands in the Chinese market in the first half of the year. In addition, the company firmly defines the automobile by software, adheres to cross-border integration, adheres to the business policy of technological innovation and cost contribution, and the new quality productivity leads the company to continuously improve its business quality, profit and tax growth and profitability.

It is understood that the current AITO question in the sale of cars including the new M7, new M5, M9. Retail data show that a total of 101631 vehicles were delivered in 2023, of which 67961 were for the new M7 and 33670 for the M5. A total of 180568 vehicles were delivered in the first half of 2024, including 106540 for the new M7, 15205 for the new M5 and 58823 for the M9.

On July 2, Cyrus Group announced that its holding subsidiary, Cyrus Motor, plans to acquire 919 registered or applied text and graphics trademarks held by Huawei Technology Co., Ltd. and 44 related design patents for a total of 2.5 billion yuan.

Cyrus and Huawei signed a further joint business cooperation agreement, the two sides will give full play to the joint business advantages, will become a world-class new luxury car leading brand, and more new models will be launched one after another this year. It is understood that the M8 model will be launched in the second half of the year, which is located between M7 and M9 and competes with the ideal L8.

In addition to Cyrus, Changan Automobile also plans to invest. On November 25, 2023, Changan Automobile signed a Memorandum of Investment Cooperation with Huawei. Huawei plans to establish a company engaged in the research, design, production, sales and service of automotive intelligent systems and components solutions (referred to as the "target company"). On May 6, 2024, Changan Automobile announced the progress of its investment and said that the work of the project was being actively promoted. Changan said the two sides are in further negotiations on the key terms of the deal, and the company expects to sign the final transaction document no later than August 31, 2024.

Hope is a new company established by Huawei BU, which will gradually open up its equity to investors such as existing strategic partners, car companies and car companies with strategic value, and become a diversified company. From the perspective of the timeline, Changan Automobile may be the first vehicle manufacturer to cooperate with Huawei, and then more car companies may join, such as Cyrus, Chery, BAIC, Jianghuai and so on. As more and more car companies join the new company, Huawei's shareholding will be greatly reduced.

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