Ask Jiexin M7 with Blazer

Text | Zebra Consumption, Fan Jian

Huawei’s energy is once again reflected in the new M7 and Cyrus.

After the 11th holiday, Sailis’ share price rose by the limit for two consecutive trading days, and its market value once again stood at 100 billion yuan.

At present, the question facing Cyrus is how to maintain stable sales after the launch of the new M7. In the longer term, it is the company’s overall profitability.

Old bottle of new wine

Since the beginning of this year, affected by the continued sluggish sales of the series of models in the world, the share price of 601127.SH has generally fallen sharply. On June 8, it once fell to a low of 24.75 yuan. After that, it bottomed out briefly and continued to fall sharply.

It was not until September 12 that the new M7 series was officially listed, which finally added fire to Sailis. On September 14 and 18, the company’s share price won two daily limit. And on September 28, the last trading day before the 11th holiday, another daily limit was used to close the first three quarters.

Whether it is the product or the price, the new M7 is indeed attractive to users. It adds a 5-seat version to the original 6-seat version, giving users more choice.

Huawei said that it invested 500 million yuan in the new M7 to make changes, and many aspects such as safety, intelligence, and battery life have been upgraded. The seat ventilation, heating and other functions that were only available on high-end models on the old M7 have become standard on the new model.

All aspects of information suggest that the new M7 is fully committed to users.

More importantly, while upgrading the product and configuration, the price is cheaper than the old model. Ask the new M7 has a total of 5 configurations, the guide price is 249,800 – 329,800 yuan, the starting price is reduced by 40,000 yuan compared with the old M7, plus a limited-time discount of 6,000 yuan, the starting threshold has become lower.

So, with the continuous innovation of new energy vehicle products and more diverse choices, will users pay for the new M7?

As soon as the 11th long holiday was over, Yu Chengdong, executive director of Huawei, CEO of End Point BG, and chairperson of Intelligent Vehicle Solutions, couldn’t wait to announce the good news: "Q Jie New M7 hit a new high of 7,000 units on October 6; it was listed for only 25 days, and the cumulative number of Dading exceeded 50,000 units."

Stimulated by this, after the holiday, class A shares opened trading, Sailis stock price rose by the limit for two consecutive trading days. The company had to make an emergency announcement to warn of risks.

It is understood that Sailis stock has risen by 110.42% since August 28 this year, the Shenwan Auto Index has risen by 7.28% over the same period, and the Shanghai Composite Index has risen by 0.36%. In fact, the company’s fundamentals have not changed significantly, so there is a clear risk of overheating market sentiment.

Bring the dead back to life

Asking about the hot sale of the new M7, Yu Chengdong couldn’t help but sigh in his Moments, "It’s not easy to come back to life!"

In the past, Xiaokang (formerly known as Cyrus) spent several years developing a new energy vehicle and named it SERES. In April 2019, Cyrus made its debut at the Shanghai Auto Show, and many people didn’t know who it was.

The following year, Cyrus launched its first SUV model, the SF5, in mass production, selling only 732 units throughout the year.

At this moment, Huawei emerged, providing Cyrus with a new path for cooperative car manufacturing.

With Huawei’s blessing, it instantly became brilliant. In 2022, it officially released its products as AITO, and after being deeply bound to Huawei, it became the fastest growing new energy vehicle brand.

At the beginning of the release of AITO, it set a proud record of delivering over 10,000 vehicles in consecutive months, and delivered 75,000 vehicles in 2022.

However, since the beginning of this year, the brilliance of the Q world has ceased.

The production and sales report disclosed by Sailis shows that in the first half of this year, the cumulative sales of Sailis cars (actually the Q series models) were only 25,800 vehicles. Among them, the sales of M7 are extremely dismal. Autohome data shows that since April this year, the monthly sales of M7 have been less than 1,000 vehicles. In June this year, it was as low as 432 vehicles.

The reason why Tesla went away and went low is very complicated. Tesla cut prices at the beginning of the year to compete for the market, which in turn triggered a new wave of price cuts for new energy vehicles, which is one of the important reasons.

In the early days, the Hongmeng cockpit carried by Wenjie did win a wave of favor from users. But with the increase in users and the extension of actual use time, many users found that the product power of Wenjie was not as strong as expected.

The outside world has always had doubts about who the AITO Q world belongs to. In early March this year, the brand official once changed the "AITO Q world" in the relevant promotional materials to "HUAWEI Q world", but soon changed it back and slapped himself in the face, which further exacerbated the doubts of users.

It was against the backdrop of the continued collapse in sales that the company launched the new M7, hoping to make a comeback.

continuous losses

In the past, its main products were micro commercial vehicles and low-end SUVs of the Dongfeng Landscape brand, which mainly targeted users and concentrated in low-tier cities.

In the era of traditional fuel vehicles, the company’s business was not sexy, and its market attention was not high. However, with its leading edge in the field of segmentation, it had a good life.

In 2016, the company launched the first SUV Scenic 580, which sold over 10,000 units for 5 consecutive months. The following year, the company’s total SUV sales reached 188,600 units, directly driving the annual sales of the whole vehicle to achieve the peak sales of 404,200 units.

It was this year that the company’s operating income exceeded 20 billion yuan, and the net profit returned to the mother also got the best performance in history of 725 million yuan.

However, Xiaokang shares only caught up with the glorious last bus of fuel passenger cars. Soon, the growth rate of China’s passenger car market declined to negative growth, competition shifted from incremental to stock era, resources were further concentrated in the top car companies, and small and medium-sized car companies struggled to survive.

The head of the company, Zhang Xinghai, has a forward-looking strategic vision. Under his leadership, Xiaokang invested in the establishment of SF MOTORS in the United States as early as 2016 to produce new energy vehicles.

Unfortunately, the car was built and could not be sold. Until Huawei appeared. In 2021, the company changed its name, demonstrating its determination to transform its strategy.

Cooperating with Huawei to build cars not only sold products well, but also because of the blessing of Huawei’s concept, the company’s share price soared. In June last year, it once reached a historical high of 90.50 yuan, and its market value exceeded 100 billion yuan.

With the increase in product sales, the company’s operating income has increased significantly. From 14.30 billion yuan in 2020 to 34.10 billion yuan in 2022. During the same period, the loss has also further increased, from – 1.729 billion yuan to – 3.832 billion yuan.

In the first half of this year, the company’s growth momentum came to an abrupt end, and its operating income fell 11.14% year-on-year to 11.03 billion yuan, continuing to lose 1.344 billion yuan.