AutoBeta(AutoBeta.net)11/03 Report--

On October 30, Cyrus released its results for the first three quarters of this year.

According to official information, in the first three quarters of this year, Selis's revenue reached 106.627 billion yuan, an increase of 539.24 percent over the same period last year; the net profit belonging to shareholders of listed companies is about 4.038 billion yuan. In terms of sales, the cumulative sales of Selis new energy vehicles reached 316700 from January to September, an increase of 364.23% compared with the same period last year. As for the reasons for the big increase in revenue in the first three quarters of this year, officials said: it is mainly due to the continuous growth of the company's sales volume and operating income, the adjustment of product structure, the growth of the sales scale of high-value products, and the company's adherence to the business policy of technological innovation and value contribution, fine management of the whole chain of production and operation, and an increase in product gross profit margin compared with the same period last year.

In fact, it is not surprising that the official announced a big increase in revenue, sales and profits in the first three quarters. Because as early as the beginning of this month, the official issued a profit forecast for the first three quarters of this year, in which the official expected operating income to reach 103 billion yuan to 110 billion yuan in the first three quarters of this year, up 518% to 559% from the same period last year. The results for the first three quarters were not much different from the official estimates at that time, which, as a reference, estimated net profits of 3.5 billion yuan to 4.1 billion yuan in the first three quarters.

It is worth mentioning that since the beginning of this year, Cyrus has been rising all the way, in addition to rising sales, but also achieved a turnaround for the first time this year. Of course, Huawei has contributed to the success of Cyrus. After all, Cyrus is not well known in the market until 2021. After Cyrus announced its partnership with Huawei in 2021, the two sides also had a trough. In 2021, the two sides launched the first cooperative model, Cyrus SF5, with a new car positioning medium-sized sedan SUV, with a price range of 21.68-246800 yuan. At that time, in order to support the sales channel of the model, Huawei specially put the model on the official website in China and sold it in Huawei stores and flagship stores. Unfortunately, the SF5, the first car on both sides, did not become an instant hit. Statistics show that Cyrus SF5 sold only 8169 vehicles in 2021.

In order to reverse the situation of depressed sales, the two sides once again jointly launched the Wangjie brand. Although it is said that after the brand was launched in 2022, it also became a hot market and became the biggest dark horse in the auto market in 2022. However, after entering 2023, in the context of the price war, the sales volume of the question world has also been affected, and sales have also declined. At that time, the official launch of the new M7 model, compared with the old model, the biggest advantage is the lower price and upgraded configuration. With the price discount, the model became popular, and the sales volume went up sharply, becoming the main pillar of the sales volume. In the follow-up, the authorities took advantage of the victory to chase and launched the flagship model M9, with the new car located as a large SUV with a price range of 469800-569800 yuan. The car has also brought a steady stream of sales to the brand, which has more than 160000 M9 models, according to official figures.

With the sales support of the new M7 and M9, Cyrus got rid of the loss in the first quarter of this year and made a profit for the first time. You know, Cyrus was in a loss state before it started a partnership with Huawei. After partnering with Huawei in 2021, Cyrus's losses continued to increase in 2022 and 2023. Data show that from 2019 to 2023, Selis's net losses 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 15.098 billion yuan over the past five years.

After making a profit this year, Cyrus has also started buying and buying in recent months. On July 2, Cyrus announced the acquisition of 919 registered or applied text and graphics trademarks and 44 related design patents held by Huawei for 2.5 billion yuan. After a month or so, Cyrus bought 19.355% of Selis Automobile Company held by Chongqing Jinxin Equity Investment Fund Partnership (Limited Partnership) with a transaction value of 1.329 billion yuan. After the transaction is completed, Selis Automobile Company has become a 100% holding wholly-owned subsidiary of Selis. In the same month, Selis announced that it would pay cash for Huawei's 10.00% stake in Shenzhen Wangwang Intelligent Technology Co., Ltd., with a transaction value of 11.5 billion yuan. On Sept. 13, Cyrus announced that it would spend 8.1 billion yuan to acquire Longsheng New Energy Leasing Super Factory.

For Cyrus's recent series of buying and selling behavior, it is also regarded by many people in the industry as a strategy of preparing ahead of time. After all, Selis can't succeed without the help of Huawei, but at present, Huawei's auto business continues to expand. Selis is not the only one of Huawei, and there will be more companies to cooperate with Huawei in the future. how much can Huawei help Selis? In this context, Cyrus also had to make more preparations.

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