Continue to lose money! Cyrus’s pre-loss in the first half of the year exceeded 1.25 billion yuan
On July 14, Sailis released a pre-loss announcement for the first half of the year. According to the announcement, the official expects that the net profit attributable to the owner of the parent company in the first half of this year will be – 1.39 billion yuan to – 1.25 billion yuan, and the net profit attributable to the owner of the parent company after deducting non-operating gains and losses is expected to be – 1.93 billion yuan to – 1.80 billion yuan.
Regarding the reasons for the pre-loss of this period’s performance, the official pointed out that due to the promotion of the Quarter 1 automobile industry, users’ expectations that the M5 smart driving version will be released in the second quarter have a certain impact on the sales of existing models, so the company’s sales in the first half of the year did not meet expectations. At the same time, it also pointed out that high R & D investment in the core technology field of new energy vehicles has been maintained, and R & D and technical personnel have been continuously introduced, and R & D expenses have increased compared with the same period of the previous year. Regarding the follow-up development, the official said that with the launch of the M5 smart driving version and other new models, as well as the increase in overseas sales, the sales volume and profitability in the second
In fact, it is not surprising that Cyrus released the estimated loss in the first half of the year. Since Cyrus cooperated with Huawei, its losses have been increasing. According to the financial report data: Cyrus lost more than 10 billion yuan in the four years from 2019 to 2022, of which the non-net profit in 2019 was – 884 million yuan, in 2020 – 2.308 billion yuan, in 2021 – 2.793 billion yuan, and in 2022 – 4.296 billion yuan.
According to the data, the predecessor of Cyrus Group was Chongqing Xiaokang Industrial Group Joint Stock Company, which was established in September 1986. In April 2021, Xiaokang shares reached a cooperative relationship with Huawei. The two sides signed a memorandum of cooperation in the field of new energy vehicles and launched the first cooperative model Cyrus Huawei Smart Choice SF5. The new car was sold online on Huawei’s official website simultaneously, and entered Huawei stores and flagship stores at the same time. The price range is 21.68-24 6,800 yuan. Although both sides have given great resources to support the first model, Huawei Smart Choice SF5 sales are not ideal. In 2021, the annual sales volume of Cyrus SF5 was only 8,169 units.
In order to turn around sales, Xiaokang and Huawei cooperated again to launch the new energy brand AITO Wenjie. In 2022, three models of Wenjie/M5 EV and Wenjie M7 were launched one after another. With the launch of a number of models, the sales volume of Wenjie in 2022 has been rapidly improved, and the cumulative delivery volume for the whole year has reached 75,000. According to the official sales data, the cumulative production and sales volume of new energy vehicles of Cyrus in 2022 reached 139,132 and 135,054 respectively, an increase of 233.64% and 225.9% year-on-year respectively. Among them, the cumulative production and sales volume of Cyrus cars reached 83,701 and 80,041, an increase of 660.37% and 626.39% year-on-year. The world accounted for more than half of the sales volume of Cyrus in 2022.
After entering 2023, although Huawei and Cyrus are emphasizing that the cooperation between the two sides will be further deepened, the sales of the Q & A brand have been cold in the market. Of course, the decline in sales has something to do with Tesla’s announcement of a big price reduction at the beginning of the year. Although Q & A also followed up with the price reduction after Tesla announced the big price reduction. The maximum reduction of its three models was 30,000 yuan, but the price reduction did not stimulate sales growth. Relevant data show that the retail sales of AITO Q & A in the first half of 2023 were 23,246 vehicles.
In addition, after Ren Zhengfei signed the "Resolution on Huawei Not Building Cars" in March, it was a blow to Cyrus, which has always endorsed the Huawei brand. Or realized the crisis, on March 30, Cyrus launched its new brand "Blue Electricity" and launched its first model, priced 139,900 yuan – 151,900 yuan. It is understood that the Blue Electricity E5 uses BYD Freddie battery hybrid technology and Huawei’s smart car technology. After the launch, the sales of the Blue Electricity E5 were also unsatisfactory. Relevant data show that the sales of the Blue Electricity E5 were 250, 483 and 376 vehicles in the three months after the launch.
It is not difficult to see that the price war among automakers at the beginning of the year and Huawei’s reaffirmation that it will not build cars have had a certain impact on Sailis Automobile. After all, without Huawei’s halo, Sailis’ true appeal in the market is still very limited. Therefore, for the cooperation with Huawei, Sailis still actively cooperates. Sailis said that at the end of June, the company has established an "AITO Inquiry and Sales Service Joint Working Group" with Huawei to be responsible for the end-to-end closed-loop management of marketing, sales, delivery, service, channels and other businesses. This is also another milestone event for the two sides to promote deepening cooperation. In the future, with a firm new energy strategy, continuous R & D investment and the support of partners, it will continue to drive towards a new fast lane for new energy vehicles.