In the first quarter, the revenue increased by 421.76%. Why did Celis’ new energy business achieve a breakthrough from 0 to 1？
In the past year, () Auto’s AITO series continued to go out of the circle, and Sailis Auto, a traditional car company, embarked on a unique innovation path in the fierce new energy killing.
On the evening of April 29th, Cyrus released the annual report for 2023 and the first quarterly report for 2024. The data shows that in 2023, the company achieved an operating income of 35.842 billion yuan, a year-on-year increase of 5.09%. In the first quarter of 2024, the company achieved an operating income of 26.561 billion yuan, a year-on-year increase of 421.76%, and the net profit attributable to shareholders of listed companies was 220 million yuan.
Looking back on 2023, the "price war" almost ran through the whole year, and the competition in the new energy vehicle market became fierce. After experiencing the trough in the first half of the year, with the explosion of the new M7 from AITO and the listing of its flagship product M9, Sailis successfully counterattacked in the automobile industry and became a "star stock" in the capital market, attracting a lot of attention.
New energy becomes a new engine for performance growth.
AITO asked the world to sell well.
Behind the revenue growth, the vertical upward sales trend has become the biggest driving force. The new energy vehicle business has become a strong growth engine of Celestial’s performance. Especially since the second half of last year, two new products of AITO have exploded, which helped Celestial to see its sales soar in the second half of last year.
The data shows that the sales volume of Sailisi new energy vehicles reached 42,141 in December 2023, an increase of 153.21% year-on-year; In 2023, the cumulative sales volume reached 151,798 vehicles, a year-on-year increase of 12.4%. Looking back on the past year, Cyrus’s "resurrection" is no accident.
After the downturn in the first half of last year, with the competitive advantages of product strength, quality-price ratio and strong technology, AITO asked the new M7 and M9 series products to make a beautiful turnaround in the second half of the year. Take AITO’s M9 as an example. As a high-end car with a price of more than 500,000 yuan, it has been highly sought after since its listing because of its "more than one generation ahead" product strength in many fields such as intelligent technology, intelligent space, intelligent safety and intelligent driving control.
In the first quarter of this year, the development potential of Cyrus continued to rise, and the high growth in the future continued. The data shows that in the first quarter, the cumulative sales volume of Celestial new energy vehicles reached 94,800, a year-on-year increase of 374.77%, which greatly exceeded the industry average; The cumulative delivery volume of all departments in the industry reached 85,800 vehicles, and it continued to rank among the top five luxury brands in China market.
Specifically, in March, all departments in the sector delivered a total of 31,727 new cars, winning the crown of China New Power brand sales for three consecutive months. Judging from two explosive products, the new M7 and the new M9, the sales volume of the new M7 continued to grow steadily. In March, 24,598 new cars were delivered in a single month, and the cumulative delivery volume exceeded 120,000, which continuously topped the sales volume of China New Power vehicles and constantly set a new record for the sales volume of China automobile brands. The M9 delivered 6,243 new cars in a single month, ranking among the top sales of China New Power vehicles with a price of over 500,000 yuan.
The hot sale of products boosted the increase in revenue, and the increase in gross profit margin and unit price under the control of superimposed costs. Many institutions are optimistic about the future growth of Cyrus. According to the research report, after the production capacity of Wenjie M9 climbed, the sales volume of Wenjie brand increased continuously, which drove Cyrus to measure and price Shuang Sheng.
As of April 29th, the share price of Celestial was reported at 95.40 yuan/share. Previously, benefiting from the hot sales of products, Celestial stepped out of a wave of rising prices in the capital market, and its share price once broke through the 100-yuan mark, reaching a record high, with the highest total market value exceeding 150 billion yuan, ranking the top three in the market value of new energy vehicle enterprises in China.
Leading upward development with new quality productivity
Accelerate to become a global smart electric vehicle brand.
The new energy automobile industry is an important engine to cultivate new quality productivity, which is highly consistent with the essential characteristics of new quality productivity. In the "Breakthrough Race" of new energy vehicles, Sailis Automobile takes users as the center, adheres to the long-term principle, adheres to the innovation drive, and accelerates the brand promotion of new energy vehicles with the guidance of new quality productivity.
Starting from a spring in 1986, it cooperated with Dongfeng Group to enter the traditional fuel vehicle manufacturing in 2003, and then began to transform into a new energy smart car in 2016. On the basis of more than 20 years’ experience in vehicle construction, Celestial aims to become a leading technology-based automobile enterprise, anchoring new energy tracks and maintaining high-intensity R&D investment for a long time.
The data shows that in 2022 alone, Cyrus’ R&D investment was as high as 3.106 billion yuan. In 2023, the company’s R&D investment reached 4.438 billion yuan, accounting for 12.38% of operating income, up 42.90% year-on-year.
Building technical barriers is also the key for car companies to break through in the fierce competition. According to reports, with its advanced strategic vision and forward-looking layout of extended-range technology, Sailis Automobile has now owned 1000+ patent layout in the world through continuous research and development and innovation since 2016, and achieved the first place in the range extender loading industry in 2024. At present, it has reached cooperation with 12 industry partners.
At the 2024 Beijing Auto Show, which kicked off a few days ago, Cyrus Auto shared the Cyrus Rubik’s Cube platform with the outside world. As the latest technological achievement of Cyrus’ independent innovation, the Rubik’s Cube platform takes "panoramic safety, multi-power, ever-changing space and intelligent guidance" as its core features, and realizes cross-domain integration of safety, power, chassis and software, aiming at providing users with a "easy-to-drive, easy-to-use and super-safe" car experience. It is reported that this platform has the ability of ever-changing and continuous evolution, and it is also the only automobile platform in the industry that can be compatible with three power forms: super-increase, pure electric and super-hybrid.
In addition, in the pursuit of lightweight, relying on the world’s leading 9000T integrated die-casting process, Sailis has effectively reduced the number of parts and connection points of the whole vehicle, and reduced the possible failure risk of the whole vehicle due to local problems between parts from the source.
The attitude of continuous openness and cooperation is the "development password" for Cyrus cars to run longer. Since the cooperation with Huawei started in 2021, the two sides have created a new model of cross-border integration of vehicle companies and ICT companies. With the hot sale of AITO series jointly built by both parties, it is verified that the hand-in-hand relationship between Celestial Automobile and Huawei is a vivid case of traditional automobile enterprises exploring the road of transformation and development when the wave of intelligence strikes. In addition to Huawei, the cooperation between Cyrus Auto and partners such as () and Bosch will continue to deepen.
After all, the new energy track is a marathon. In the past few years, Sailis has achieved a breakthrough in the new energy vehicle business from 0 to 1. In the future, the company will strive to achieve accelerated development from 1 to N, and the road of transformation and exploration of new energy will go further and deeper.
(CIS)