Sales are skyrocketing! Celis loses another 2.6 billion

On October 28, Celis announced its latest quarterly financial report. According to the financial report, the operating income of Celis in the first three quarters was 23.123 billion yuan, a year-on-year increase of 101.96%. Net profit attributable to shareholders of listed companies was -2.675 billion yuan, compared with -1.922 billion yuan in the same period;

Regarding the increase in operating income, Celis said that the sales volume of new energy vehicles of the Wenjie series increased significantly during the reporting period. Regarding the expansion of net profit losses, Celis said that although the sales of new energy vehicles of the Wenjie series have increased significantly, expenses and taxes have also increased accordingly. At the same time, it was affected by factors such as the continuous increase in the prices of raw materials such as chips and power batteries, and the continuous investment in product research and development and market promotion.

With Huawei’s Dongfeng, Celis has jumped directly from a marginal car company to the head of the new energy vehicle market, becoming the new energy vehicle manufacturer with the highest “Hua” content.

In January 2019, Celis and Huawei held a cooperation signing ceremony. The two parties stated that they would further promote cooperation in the field of new energy vehicles and carry out comprehensive cooperation in the fields of industrial Internet, ICT infrastructure, intelligent new energy vehicles, and networking. Huawei It will provide all-round assistance for Celis to build new energy vehicles. In April 2021, Celis officially reached a cooperative relationship with Huawei. The two parties signed a memorandum of cooperation in the field of new energy vehicles, and then launched the first cooperative model, Celis Huawei Smart SF5, with a price range of 216,800-246,800 yuan. Not only will it be sold online on Huawei’s official website, but it will also enter Huawei’s offline stores.

It is understood that the cooperation models between Huawei and auto manufacturers are mainly divided into three types: parts supply model, HI (Huawei Inside) solution integration model, and smart selection mode. Open Huawei’s sales channels to new energy vehicle manufacturers, but the ownership of related models still belongs to the automaker, and Huawei only makes profits from the supply of parts and vehicle sales.

After cooperating with Huawei, the share price of Celis, which has the concept of “Huawei car”, continued to skyrocket, with a total market value of up to 110 billion yuan. In terms of sales, the market response of the Celis SF5, which is backed by Huawei, is flat after the listing. The cumulative sales volume in 2021 is 8,169 units. Although it has increased significantly compared with the same period in 2020, its performance in the new energy vehicle market is very general.

In order to break the situation, Celis cooperated with Huawei for the second time and launched the high-end new energy brand AITO. The first model AITO M5 was officially released at Huawei’s winter flagship new product launch. At the press conference, Yu Chengdong spent more than an hour introducing the Wenjie M5, and emphasized that the Wenjie M5 is a model that Huawei “deeply involved in R&D, design, and manufacturing from scratch, and fully reflects Huawei’s smart car capabilities and concepts.” Facts have proved that the cooperation between Celis and Huawei has indeed achieved phased success. Taking September data as an example, AITO has sold 10,045 vehicles in the world, with sales exceeding 10,000 for two consecutive months.

The AITO industry can achieve such dazzling achievements, naturally, it is inseparable from the full support of Huawei, which has almost contracted the core work of research and development, design, branding and sales of new cars. However, despite the skyrocketing sales in the industry, Celis, instead of turning losses into profits, “the more selling, the more losses.” The financial report shows that the cumulative net loss in the first three quarters was 2.675 billion yuan, and the net loss in the same period in 2021 was 1.922 billion yuan. The data shows that the first loss of Xiaokang shares was in 2020, with a net loss of 1.729 billion yuan that year, and the loss in 2021 increased to 1.824 billion yuan. The reason for the loss came from the transformation of the new energy vehicle market, the soaring of marketing expenses, research and development costs, and team expansion. To.

Even with huge losses, Celis still has full confidence in cooperating with Huawei to build cars. Zhang Xinghai, chairman of Celis, said in an interview: “If BMW came to me to talk about joint venture car manufacturing at this time, I would not do it, and I would unswervingly cooperate with Huawei across borders.”

In the field of automobile manufacturing, no car company has handed over its life to supply chain companies, except for Celis. From a deeper level, Celis is deeply tied to Huawei, which does more harm than good. First, Huawei does not manufacture cars, but more and more car companies cooperate with it, such as BAIC Polar Fox, Changan Automobile, GAC Group, Great Wall Motor, Chery, etc. For Celis, if you lose Huawei, you will lose everything, but this is not the case for Huawei. It can cooperate with Celis and other car companies, which means that Huawei currently has a full range of technologies for Celis. With the blessing, Seris may not be able to “exclusively” in the future, not only losing its core competitiveness, but also having many more competitors.

Secondly, Huawei has expanded its cooperation with other car companies. In the future, Huawei’s offline sales network will not be the only brand of Celis. According to Huawei’s plan, other Huawei-powered brand cars will also be stationed in Huawei’s flagship stores. For example, Avi Tower, can Celis still rely on its own strength and its own sales channels to stabilize its existing sales?

Finally, the reason why consumers buy Wenjie is largely because of the influence of Huawei, not Celis. Previously, some consumers deducted the “Salis” logo on the rear of the car and replaced it with “HUAWEI”. This is enough to reflect the lack of confidence of users in the brand of Celis. Consumers’ awareness of Huawei is much higher than that of Jincon Celis, and it also shows that the world is already a veritable Huawei car in the eyes of consumers.

All in all, Celis uses Huawei technology to achieve high-end intelligent cornering overtaking of new energy, but the Wenjie models are almost built by Huawei, whether it is Huawei Hongmeng cockpit or Huawei Drive ONE pure electric drive extended range platform, it is also online and offline. In terms of sales channels and core components, the success of AITO is inseparable from the support of Huawei. If the AITO brand fades away from Huawei’s halo, Celis will immediately show its original shape. Of course, the choice of Celis to cooperate with Huawei is the most sensible decision made by Celis. Regardless of the market outlook, Huawei will still pull Celis out of the abyss, and it is also the first car company to rely on Huawei for dividends. . However, in the eyes of other car companies, this approach is very risky.

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