Cyrus lost 1.30 billion!

A few days ago, Cyrus released its interim financial report for 2023. Data show that Cyrus’ operating income during the reporting period was 11.032 billion yuan, down 11.14% year-on-year. Net profit attributable to shareholders of listed companies was – 1.344 billion yuan, and net profit in the same period was – 1.727 billion yuan. Net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was – 1.885 billion yuan, and net profit in the same period was – 1.714 billion yuan. In short, Cyrus’ operating income declined in the first half of the year, and net loss improved.

Sailis said that the promotion of the Quarter 1 automotive industry led to a wait-and-see mood among users, as well as users’ expectations that the M5 smart driving version will be released in the second quarter, which had a certain impact on the sales of existing models, so the company’s sales volume declined in the first half of the year. The company prepared a certain inventory of raw materials due to the tight supply chain and the continuous increase in raw material prices last year. During the reporting period, the company digested raw materials with higher upfront costs, and the gross profit margin decreased compared with the same period of the previous year. At the same time, the company maintained high R & D investment in the core technology field of new energy vehicles, and continued to introduce R & D and technical personnel. R & D expenses increased compared with the same period of the previous year. With the launch of the M5 smart driving version and other models, as well as the increase in overseas sales

It is understood that the loss of Sailis after cooperation with Huawei has increased significantly, and the net loss of non-deductions from 2019 to 2022 is 884 million yuan, 2.308 billion yuan, 2.793 billion yuan, 4.296 billion yuan, plus 1.885 billion yuan in the first half of 2023.

AITO Q & A is the core brand of Cyrus Automobile, accounting for more than 70% of the total sales of Cyrus Automobile for a long time. It determines its direction in the domestic automobile market, and the decline in Q & A sales also directly pours cold water on Cyrus’ financial report. Retail data show that the sales of AITO Q & A brand in the first half of the year were 22,666, of which 17,820 were Q & A M5 and 4846 were Q & A M7.

After launching the AITO Q & A brand after cooperating with Huawei, Cyrus did achieve a certain amount of popularity in the new energy vehicle market, but the outside world almost all the credit goes to Huawei. Most of the AITO Q & A brand models are designed and developed by Huawei, and the core technology is also in the hands of Huawei. At the same time, Q & A models are also included in Huawei’s end point sales channels. Even Q & A’s new cars are basically released at Huawei’s new product launch. Huawei has publicly stated that it does not build cars many times, and Cyrus also said that the cooperation with Huawei is not a foundry relationship, but it is almost certain that Cyrus has never been able to occupy an absolute dominant position in the cooperation. In the eyes of many consumers, the purchase of the Q & A model is the blessing of Huawei’s brand and technology, while leaving Huawei’s AITO Q & A may be "nothing".

In March this year, Chongqing Sailis Blue Electric Vehicle Co., Ltd. (hereinafter referred to as "Sailis Blue Electric") was established with a registered capital of 30 million yuan and is wholly-owned by Dongfeng Xiaokang Automobile Co., Ltd. In the same month, the Blue Electric E5 was listed, with a price range of 13.99-15 1,900 yuan. In addition to the car using HUAWEI HiCar3.0, the Blue Electric E5 has no Huawei presence. Its core three-power technology adopts BYD Freddy electric hybrid system, and is operated by Dongfeng Scenic, and builds independent sales channels. However, without Huawei’s halo, the market performance of the Blue Electric E5 is also very poor. Retail data show that as of July, the cumulative sales of the Blue Electric E5 are 1554 units, and the monthly sales volume is basically around 400 units.

At the same time, Cyrus is no longer the only choice for Huawei. At present, the first cooperative model between Huawei and Chery has been declared in MIIT. This new car will become the first model equipped with HarmonyOS 4 and will be officially released this quarter. The new car logo will not use the "AITO" serial name, but "LUXEED", which belongs to Chery Automobile Company.

Sailis’s choice to cooperate with Huawei was the wisest decision made by Sailis, and regardless of the future, Huawei still pulled Sailis out of the abyss, and it was also the first car company to rely on Huawei to eat dividends. However, in the eyes of the industry, this approach has a huge line of defense. Huawei has penetrated into the soul of Sailis and controlled the direction of Sailis in the automotive market. The companies that cooperate with Huawei to build cars are also expanding, as are BAIC, Changan, Chery, etc. There will be more companies cooperating with Huawei in the future.

Any car company can take the place of Cyrus, but Cyrus will never leave Huawei.