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On September 20, Cyrus released a draft report on major asset purchases. The draft states that Cyrus Automobile, a wholly-owned subsidiary, will pay cash for 10 per cent of Huawei Technology's stake in Shenzhen Wangwang Intelligent Technology Co., Ltd., and the underlying equity transaction price is determined to be 11.5 billion yuan after negotiation between the parties to the transaction. With regard to the acquisition of a 10% stake, Cyrus said that after this transaction, it will further strengthen cooperation with Huawei and enhance the company's technical strength and market competitiveness.

Data show: Shenzhen Wangwang Intelligent Technology Co., Ltd. is a wholly owned subsidiary of Huawei Technology Co., Ltd., established on January 16, 2024, with a registered capital of 1 billion yuan. Is a company specializing in smart car solutions, engaged in automotive intelligent systems and components solution development, design, production, sales and service company. The company's main business scope is automobile intelligent driving solution, automobile intelligent cockpit, intelligent vehicle control, intelligent car cloud, vehicle light and so on.

According to the draft disclosed by Cyrus, Shenzhen Yinwang is one of the few automotive intelligent solution companies in the world that have achieved large-scale income and made a profit. Shenzhen attracts the leading industry in terms of team size, technical level, product maturity and commercial scale, process system capabilities, and has the ability of independent research and development and continuous innovation of the core technology of the whole stack.

For this transaction, Selis said that it has actively and steadily promoted the fund-raising work, and the sources of self-raised funds are sufficient, which can effectively guarantee the payment of the consideration of this transaction and will not have a significant adverse impact on the financial situation of listed companies. Through this acquisition, attracting 10% of the equity, the company will pay close attention to the iterative tuyere of intelligent driving technology, further strengthen the forward-looking layout of intelligent vehicle technology, and comprehensively enhance the advanced nature of the company in automotive intelligent electrification technology and intelligent car products, to achieve dual leadership in technology and products.

In fact, the cooperation between the two sides as early as last month, Cyrus issued an announcement that it agreed to pay cash to buy 10% of Huawei Technology Co., Ltd.'s stake in the lookout company held by Huawei Technology Co., Ltd. the transaction amount is 11.5 billion yuan. Invest in Shenzhen Wangwang Intelligent Technology Co., Ltd., get a 10% stake and a director seat, the two sides also held a signing ceremony. After the completion of the deal, Huawei, Avita and Cyrus will own 80%, 10% and 10% respectively.

As for the cooperation between the two sides, Zhang Xinghai, chairman of Selis Group, said: "Selis firmly cooperates with Huawei across the border and continues to bear fruit." The series of products jointly created by both sides continue to set new industry records and are deeply loved by users and recognized by the market. This investment in the company marks the upgrading of the comprehensive cooperation between Cyrus and Huawei to "business + equity", and opens a new starting point for the sustainable development of bilateral cooperation from 1 to N. Selis will firmly support looking forward to becoming an intelligent and open platform for the automobile industry, and strive to achieve the target of annual production and sales of millions of units in the three-year plan, lead to attract the supply of millions of sets, and achieve win-win results. "

As we all know, relying on the blessing of Huawei, Cyrus succeeded in overtaking around the corner and once became one of the leading automakers in China. The cooperation between Cyrus and Huawei first began in 2021, with the latest launch of the Selis SF5 model, a new car positioning medium-sized sedan SUV, with a price range of 21.68-246800 yuan. At that time, Huawei's official website also opened online sales for Cyrus SF5, entering Huawei stores and flagship stores. However, due to low popularity and other reasons, Huawei wisely selected SF5 listing, sales are not hot. Relevant data show that the cumulative sales of Cyrus SF5 in 2021 is only 8169.

In order to boost sales, the two sides once again jointly launched the new energy brand AITO. The brand has successively launched three models: MJ / M5 EV and M7. Thanks to the layout of the new models, Selis's sales have also gradually increased. In 2022, Selis's cumulative sales of new energy vehicles reached 135100, an increase of 225.9% over the same period last year. Among them, the sales of the MJ brand was 75000.

Since last year, officials have launched new M7, M9, new M5 and other models, because the new models have increased configuration, price reduction and other advantages, making the new models on the market that is a hot market. According to the data, the cumulative sales in 2023 were 101631 vehicles, of which 67961 were for the new M7 and 33670 for the M5. The cumulative sales of Cyrus in the first half of 2024 were 180568, including 106540 for the new M7, 15205 for the new M5 and 58823 for the M9.

Thanks to the increase in sales, Cyrus also got rid of the loss in the first half of this year. In the first half of this year, Selis's operating income in the first half of this year was 65.044 billion yuan, an increase of 489.58 percent over the same period last year, and the operating income in the same period last year was 11.032 billion yuan. The net profit belonging to shareholders of listed companies was 1.625 billion yuan, turning losses into profits compared with the same period last year. The loss in the same period last year was 1.344 billion yuan.

With the investment of Cyrus, the cooperation between Cyrus and Huawei will further develop. It remains to be seen whether the cooperation between the two sides can help Cyrus climb another tall building.

As for the cooperation with Selis, Xu Zhijun, Huawei's rotating chairman, once said: the boundary is an example of Huawei's cross-border cooperation with car companies and commercial success. This cooperation is another major progress that Huawei, together with its partners, will hope to build into an intelligent and open platform for the automotive industry. We will continue to help car companies build and sell good cars. Huawei and Wang Wang will provide more predictable, manageable and sustainable technology and supply guarantee for the world, and help it become a high-end smart car brand loved by Chinese and global consumers.

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