news

Facing Huawei,SeresStarting to become wealthy.

On the day when SERES released its record financial report, it spent another 11.5 billion yuan in cash to buy Huawei's 10% stake in Yinwang.

Just recently, SERES spent 2.5 billion to acquire the "Wenjie" trademark and related patents.

In less than two months, Seres spent 14 billion yuan. It is hard to imagine that Seres was still making losses three or four years ago, but now it has been through all the difficulties.Revenue in the first half of this year soared 489.58%。

The most outstanding thing is the gross profit margin of Seres, which reached27.47%, much higher than other car companies, likeTeslaThe gross profit margin of automobiles in the second quarter was 18%, and the ideal gross profit margin in the first quarter was 20.6%.BYDIt is 21.88%.

After establishing a relationship with Huawei, SERES's ability to make money has indeed skyrocketed.

On the same day, a report also exposed the cooperation between Huawei and Seres. The most eye-catching data was that for every car sold by Seres, Huawei's car BU charged about RMB 100 million for parts and services.36,700。

As Huawei's automotive BU began to become independent, Huawei's business acumen gradually surfaced. With SERES as a living example, everyone is curious about how powerful Huawei's automotive BU is.

01 

The Birth of a Billion-dollar Catfish

On August 20, Avita announced that it plans to purchase a 10% stake in Shenzhen Yinwang Intelligent Technology Co., Ltd. in cash at a price of RMB 11.5 billion. After the signing of the equity transfer agreement, Huawei's automotive BU will be officially independent and Yinwang will be officially put into operation.

Based on the calculation of purchasing 10% of the shares with RMB 11.5 billion, Yinwang’s valuation reached RMB 115 billion. It has a market value of RMB 100 billion within less than a year of its establishment.

Not only Avita,Changan AutomobileIts brands Deep Blue and Qiyuan were also previously rumored to have business cooperation with Huawei. Cailianshe reported that after Avita became the second largest shareholder of Huawei Yinwang, Changan still had a 10% priority purchase right.Changan will subsequently acquire another 10% stake at a price of 11.5 billion yuan, it is not ruled out that Avita will still purchase all of them.

In addition to Avita and Seres, Yinwang is attracting more investors.

On August 23, Zhao Ji, secretary of the board of directors of BAIC Blue Valley, said that he had paid attention to the situation of Avita and others investing in Huawei and that the company would continue to go all in on Huawei. "We are now one of the four boundaries of Huawei. The current reserved production capacity of BAIC New Energy Xiangjie Super Factory is 300,000 vehicles. The cooperation between the two parties will be as deep as possible in the future."

In addition to Avita, Seres and those who have already expressed their viewsBAIC BluePark，FAW Group、Dongfeng MotorIt will also become an important shareholder. In March, You Zheng, deputy general manager of Dongfeng Motor Group, revealed that they are actively promoting the participation of Huawei's automotive BU with China FAW. This year, Lantu Motors and Mengshi Technology, subsidiaries of Dongfeng Motor, have signed strategic cooperation agreements with Huawei, but neither party has disclosed the specific cooperation model.

Chery Automobile and JAC Motors, which are also part of Huawei's "Four Circles", have not yet stated whether they will join, but Yu Chengdong has publicly called on them to open up their equity. However, these car companies themselves have many shareholders involved, and the negotiation process may be relatively long.

Why would so many car companies invest tens or even hundreds of billions of dollars in a company that has just officially started operations?

The main reason is of course profit-driven, as it can help car companies make money. Take Seres as an example. Seres’ operating income in the first half of this year was65.044 billion yuan, a year-on-year increase489.58%; The net profit attributable to shareholders of the listed company was 1.625 billion yuan; and in the first half of 2023, the net profit attributable to shareholders of the listed company of SERES was still -1.344 billion.

Seres said that the company's revenue increased significantly, mainly due to the increase in sales of new energy vehicles. In the first six months of this year, Seres' cumulative sales of new energy vehicles reached 200,900 units, a year-on-year increase of 348.55%. The cumulative sales of the Wenjie brand, which cooperates with Huawei, were181,197 vehicles, ranking second among new energy brands, only after Ideal Auto, and the gap between the two is less than 8,000 vehicles.

After suffering losses of nearly 10 billion yuan for four consecutive years, SERES has now turned losses into profits in a short period of time. It is undoubtedly the biggest beneficiary of the cooperation with Huawei.

Moreover, Yinwang is a good deal. According to the financial data of Shenzhen Yinwang disclosed by Seres for the first time, the sales revenue of Shenzhen Yinwang in 2022 and 2023 will be 2.098 billion yuan and 4.7 billion yuan respectively; the operating income from January to June 2024 will be 10.435 billion yuan, and the net profit will be 2.231 billion yuan.

In the near future,Huawei's automotive business unit will also be integrated into the, and Yinwang will continue to maintain high revenue growth on this basis.

If Yinwang can be successfully listed in the future, its valuation will most likely double, and the returns for shareholders who join now will undoubtedly be considerable, even more efficient than making money from car manufacturing.

From the perspective of the business model behind it, Yinwang's predecessor, Huawei Automotive BU, was established in 2019. At that time, it sold key components to automakers and provided full-stack integrated solutions. In May 2021, after Yu Chengdong took over Huawei Automotive BU, he planned a third business model in addition to the components and Huawei HI model, namely the Smart Car Model, which is nowHongmeng Intelligent Driving。

After several adjustments, Huawei's Automotive BU has also clarified its goal: to insist on not making cars, but to use intelligent connected technology to help car companies make and sell better cars.

Compared with Huawei's previous Intelligent Solutions BU, the establishment of Yinwang is to hope that it will operate based on market principles in the future.

"China needs to build an open platform for electrification and intelligence with the participation of the automotive industry, an open platform with a locomotive." This was Yu Chengdong's previous explanation of the company Yinwang.

02 

Huawei earns 36,700 yuan for selling a car

When SERES invested in Yinwang, we were also able to get a glimpse of the tip of the iceberg of Huawei Yinwang.

According to the "Major Asset Acquisition Report (Draft)" released by SERES, some internal information about Yinwang was rarely disclosed. The financial data, asset valuation and other details of this new carrier after Huawei's automotive BU operated independently were also made public for the first time.

Unlike the new forces that are deeply involved in price wars and struggling on the profit and loss line, Huawei's car BU, as a leader in intelligent connected cars,Core supplier of incremental components, after experiencing the awkward period when it was first established, it is now making a lot of money.

Specifically, SERES announced the asset financial data of Huawei's automotive BU that its target company Shenzhen Yinwang plans to install.

According to the report data, Huawei's automotive BU suffered a lot of losses in 2022 and 2023, namely 7.587 billion and 5.597 billion respectively, but the corresponding revenue was only 2.097 billion and 4.700 billion.

However, by the first half of 2024, the total revenue was more than double that of 2023.Reached 10.435 billion, net profit reached 2.231 billion,Net profit margin was 21.38%, directly turning losses into profits.

In addition, Shenzhen Yinwang's net profit attributable to shareholders of the parent company from 2022 to the first half of 2024 was -7.587 billion yuan, -5.597 billion yuan and 2.231 billion yuan, respectively, and the estimated net profit attributable to shareholders of the parent company in 2024 is 3.351 billion yuan.

According to Yu Chengdong's previous statement, the car BU was originally supposed to be profitable in 2025, but now it seems that it has alreadyOne year in advanceAchieve profitability.

In less than three years, the company was able to quickly turn losses into profits, thanks to the continuously rising gross profit margin.

Specifically in terms of business composition, the business model of Huawei Automotive BU includes hardware business and software and service business. In 2022 and 2023, the gross profit margins of Huawei Automotive BU's hardware business were 14.47% and 15.85% respectively, and the gross profit margins of software and service businesses were 24.97% and 52.22% respectively.

By the first half of 2024, the gross profit margin of Huawei's automotive BU's software and service business will reach a terrifying level.86.17%, far higher than the 33.41% of the hardware business in the first half of the year, which shows that Huawei's automotive BU has excellent profitability in the software and service fields.

Of course, Huawei's automotive BU's ability to quickly achieve profitability is also inseparable from the contributions of major customers.

According to the top five customers of Huawei's Automotive BU published in the report, in 2022 and 2023, the largest customer contributed 1.189 billion and 2.396 billion, accounting for 56.68% and 50.97% of revenue respectively. In the first half of 2024, the largest customer contributed 6.614 billion, accounting for more than 50%. The proportion of revenue reached63.38%。

Moreover, the revenue share of Huawei's Automotive BU's top five customers has continued to increase year by year. In 2022, 2023 and January-June 2024, the revenue share of the top five customers was 79.14%, 89.52% and 90.55% respectively.

Obviously, based on the previous sales of Huawei models, Huawei's largest customer is definitelySeres asks the world, sales in the first half of this year reached 180,000 vehicles, a year-on-year increase of 348.55%.

Based on the revenue contribution and vehicle sales, it is not difficult to deduce that for every car sold by Seres, Huawei's car BU charges about RMB 100 million in technical fees.36,700 yuan。

Judging from the average price of the world's brand models,It accounts for about 10% of the vehicle price.From intelligent driving technology to smart cockpit, with the full set of Huawei technical support, this value share can be said to be very conscientious.

This also refutes the rumor that SERES cooperated with Huawei and only did the work but did not get any money.

However, the asset report does reveal a relatively strong point, which isSettlementAspects - In a typical scenario, the product is delivered to the customer's warehouse (the customer's own warehouse or a third-party warehouse).Repayment after 1-2 months。

In today's auto industry, which generally takes three months to collect payments, the payment cycle required by Yinwang is indeed fast. However, this does not prevent SERES from becoming the biggest winner among many Huawei-cooperated automakers.

With the support of Huawei, companies like SERES can finally make money without any hesitation.