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In the fourth year of cooperation with Huawei, SERES officially took off.

On the day when it announced its investment in Huawei's automotive BU, SERES issued the following financial report:

Delivery surged, up more than 3 times year-on-year

Revenue soared nearly 5 times

The gross profit margin is super high, even surpassing BYD Tesla

QJM9Ranked first in sales of models with a price of more than 500,000 yuan

In just over three years, SERES, which was once on the verge of bankruptcy, turned losses into profits, and its Wenjie brand emerged as a representative of domestic luxury cars.

Of course, everything behind this is inseparableHuawei。

Knowing this well, SERES has also been deepening its cooperation with both parties recently:

They bought trademarks and invested in equity, spending 14 billion in 54 days, demonstrating with practical actions the attitude of "China is great, no need to say more, just invest and pay."

△He Liyang, President of SERES

With a gross profit margin exceeding BYD, Seres has been selling like crazy in the first half of the year

The financial report shows that the net profit for the same period was1.359 billion yuan, of which the net profit in the first quarter was 89 million yuan, turning losses into profits.

Net profit for the second quarter was1.25 billion yuan, with continuous profitability, earning nearly 12,000 yuan on average from selling a car.

The net profit benefited from SERES’s extremely high gross profit margin.

Using the financial report data, a simple calculation shows that in the first half of this year, Seres' gross profit margin was25.04%, with gross profit margin in the second quarter reaching27.47%。

It is far ahead of many new forces, even surpassing BYD and Tesla, and has become the top of the new energy vehicle industry.

△Note: Since BYD (including batteries) and Ideal have not released their Q2 financial reports, Q1 data is used.

Why is the gross profit margin so high?

This is inseparableThe huge sales of Wenjie M9。

In the first half of 2024, the cumulative sales volume of Seres' new energy vehicles will reach200,949 vehicles, a year-on-year increase348.55%。

The sales volume of new energy vehicles in the second quarter was 106,124 units, a year-on-year increase of 316.3%. The sales volume of Wenjie M9 was 46,507 units.45% of total deliveries。

Previously, Yu Chengdong revealed that80% of M9 owners choose the top-of-the-line model priced at RMB 550,000.This directly increasesThe average price of the brand in the world is 390,000 yuan。

Question world modelThe more expensive the product, the more it sells, which increases the overall gross profit margin。

With performance growth and a turnaround from losses to profits, SERES is more confident in its R&D investment.

In the first half of this year, SERES's R&D investment was 2.827 billion yuan, a year-on-year increase of 320.7%.

In the first half of the year, SERES' net cash flow from operating activities increased by 16.36 billion yuan.

As of June 30, the cash and cash equivalents balance was13.89 billion yuanCompared with the first quarter, net cash and cash equivalentsIncrease of 9.41 billion yuan, with abundant cash reserves.

This impressive financial report proves thatAfter more than three years of cooperation with Huawei, SERES entered a positive cycle in 2024 and achieved take-off.

Having tasted the sweetness, SERES has recently made frequent moves and has become more closely tied to Huawei.

Closely tied to Huawei, independent exploration

While releasing its second quarter financial report, Seres issued an announcement, investing heavily in11.5 billion, the acquisition of Huawei attracted10%Equity.

△The fourth from the left is Zhang Xinghai, founder and chairman of SERES, and the fourth from the right is Xu Zhijun, vice chairman and rotating chairman of Huawei.

Yinwang, the independent entity formed after the separation of Huawei's automotive BU, just welcomed its first external shareholder, Avita, from Changan Automobile last week, which also acquired a 10% stake.

According to Changan Automobile's announcement at the time, Yinwang will have 7 directors, and Avita has the right to nominate one.

In this way, SERES may also get the right to nominate a director.

Regarding this investment, Seres believes that it is through equity ties,Further upgrade cooperation with Huawei。

It is expected toPositive impact on the company's investment income, the company's total assets and net profit will be improved.

This is the distance from Ceres Flower2.5 billionIt has only been 54 days since Huawei purchased the Wenjie trademark and its related design patents from Huawei.

In less than two months, SERES made two moves, spending a total of 14 billion yuan to increase the cooperation between the two parties.

Hold your thighs tightly and don't let goAt the same time, Seres is alsoTaking advantage of opportunities to explore independently, enhance brand image.

In terms of self-operated channels, according to Cailianshe, citing an insider, Seres will open its first flagship store of its own brand, which will be sold in the market and to its self-created brands.Blue ElectricAll its car models will be stationed there.

Building its own flagship store is necessary for SERES to enhance its brand image. For example, it can use the best-selling models of the brand to bring attention to Blue Electric.

At the same time, we must also take into account the current development status of Hongmeng Zhixing.

As more and more new cars are launched, gradually, Huawei stores can no longer accommodate all the Hongmeng Intelligent Travel models.

For example, when Huawei's Wangfujing flagship store and Wukesong store in Beijing introduced the Enjoy S9, they chose to move the Enjoy M5 out to make room for the new car.

In addition to building new brands and launching new channels, SERES also recently announced that it would join CCTV's 2024 "Brand Power Project" to actively market and increase its visibility.

So in general, although SERES has continued to deepen its relationship with Huawei over the three years of cooperation, it has not completely "laid down" and is also working hard to explore and find its own path.

Looking back at the cooperation between the two sides, it has not been all smooth sailing.

In the early days, Huawei also tried to upgrade and transform SERES's SF5, but the response was mediocre.

The sales of the M5 and M7, which were launched successively, were also average.

It was not until October last year that the new M7 came back to life and the brand became an instant hit, laying the foundation for SERES's success today.

Therefore, simply reviewing the rise of Seres and Wenjie, we will find that Hongmeng Zhixing and otherThe lukewarmness of "X World" is actually a replica of the opening of "Wen World"。

Cooperation requires adjustment, development takes time, and success never comes overnight.

Compared with the pessimistic voice, the more rational voice is:

Let the bullets fly for a while.

One More Thing

At the same time as SERES acquired a stake in Huawei's Automotive BU, it also released a"Major Asset Purchase Report (Draft)"The report rarely disclosed the financial situation and development history of Huawei’s automotive BU.

The report shows that Huawei's automotive BU will achieve revenue of2.097 billion yuanand4.7 billion。

Losses for 2 consecutive years, losses in 20227.587 billion yuan, narrowed to5.597 billion yuan。

This year, the company also turned losses into profits, with a net profit of2.231 billion yuan, the net profit margin is21.38%。

Some analysts believe that considering the current profitability and performance growth expectations, it is indeed not expensive for Changan and SERES to both spend 11.5 billion yuan to buy a 10% stake.

Some people also speculate that Changan may buy more shares.

Because an insider said that Changan Group still has a 10% right of first refusal for the Car BU. If Avita continues to increase its capital and stake in the company, Avita will hold a total of 20% of the shares, firmly establishing itself as the second largest shareholder of the Car BU.

Even judging from the current equity structure, Chongqing can be said to have won the split of the automotive BU.