Produced by Sohu Finance
Author | Zhang Ying
On the evening of January 30, Sailis released its 2022 annual results pre-loss announcement.
Cyrus expects to achieve operating income of 33.50 billion yuan to 35 billion yuan in 2022, an increase of 100.38% to 109.36% year-on-year. While revenue doubled, Cyrus’ net profit loss also expanded.
In 2022, Sailis is expected to achieve a net profit loss of 3.50 billion yuan to 3.95 billion yuan, the loss expanded by 91.90% to 116.57%; deducting non-net profit is expected to lose 3.85 billion yuan to 4.30 billion yuan, the loss expanded by 37.83% to 53.94%.
In a single quarter, Sailis’ fourth-quarter operating income is expected to be 10.38 billion yuan to 11.88 billion yuan, an increase of 97.04% to 125.51% year-on-year; net profit attributable to the parent is expected to lose 825 million yuan to 1.275 billion yuan, and the loss expanded by 11.44% to 72.21% year-on-year.
Sailis said that in 2022, the price of raw materials such as chips and power batteries rose sharply, resulting in an increase in production costs; although the sales volume achieved continuous positive growth in the first three quarters of 2022, but due to the multi-point outbreak of the COVID-19 pandemic, it affected the number of passengers entering the store and the development of marketing activities. At the same time, it affected many links such as supply, logistics, production, etc. Product production and sales did not meet expectations, and the investment in fixed assets in the early stage was large, and the depreciation and amortization expenses were high.
In addition, Sailis focuses on the field of smart electric vehicles. With the growth of sales of Sailis new energy vehicles, the company’s operating income has increased significantly by 100.38% to 109.36% compared with the same period last year. The company’s gross profit margin has increased compared with the same period last year. During the reporting period, the quarterly gross profit margin has increased positively.
In April 2019, Cyrus released the first new electric vehicle SF5. In 2019, Cyrus smart electric vehicles have begun to be gradually put into production, and Chongqing Jinxin Equity Investment Fund increased its equity in Jinkang New Energy Vehicles. The impact of the smart electric vehicle sector on the net profit attributable to shareholders of listed companies in 2019 decreased by 940 million yuan.
In 2019, the net profit of Cyrus returned to the parent was still 66.7215 million yuan. In 2020, the net profit of Cyrus returned to the parent achieved the first loss since listing, and the loss reached 1.729 billion yuan.
In the three years from 2020 to 2022, the cumulative net profit of Sailis returned to the parent company was 7.053 billion yuan to 7.503 billion yuan.
In July 2022, the Chinese name of Cyrus was changed from "Chongqing Xiaokang Industrial Group Joint Stock Company" to "Cyrus Group Joint Stock Company", and the company’s securities abbreviation was changed from "Xiaokang Shares" to "Cyrus", showing the outside world its determination to deepen the field of smart new energy vehicles.
Huawei is playing an important role in Cyrus’ foray into new energy vehicles.
AITO is a high-end new energy vehicle brand released by Cyrus. Huawei provides support for Cyrus’ AITO brand from the whole process of product design, industrial chain management, quality management, software ecology, user operation, brand marketing, and sales channels.
The AITO Wenjie M5 is the first intelligent electric drive SUV launched after the launch of the AITO brand, and was delivered in batches in March. On July 4, the second model, the AITO Wenjie M7, was released and deliveries began in August. On September 6, the first pure electric model of the Wenjie series, the Wenjie M5 EV, was released and shipped from Chongqing to customers at the end of November.
In 2022, the sales volume of Cyrus Group totaled 267,200, a slight increase of 0.24% year-on-year. The cumulative sales volume of new energy vehicles 135,100, an increase of 225.90% year-on-year; of which the cumulative sales volume of Cyrus Automobile 80,000, an increase of 626.39% year-on-year.
Sales have increased sharply, while facing fierce competition. On January 6, Tesla’s domestic models were reduced in price, Model 3 was priced at 229,900 yuan, and Model Y was priced at 259,900 yuan, setting a record low price.
Capital Securities reported on January 11 that the price of Tesla Model Y after the price reduction is 260,000 yuan – 360,000 yuan range, which is expected to intensify competition with NIO ET5, JK 001, BYD Tang EV, and M5 EV.
On January 13, AITO announced a price cut for some models, making it the first automaker to follow up after Tesla announced the price cut.
Specifically, the price of the M5 EV after the adjustment is 259,800 yuan, and the price of the M7 after the adjustment is 289,800 yuan. The price reduction of all models is 28,800 – 30,000 yuan. The price reduction will have an impact on the gross profit margin of Sailis.
According to the performance forecast, Sailis’ gross profit margin increased quarter-on-quarter during the reporting period.
According to previous financial reports, from Quarter 1 to the third quarter of 2022, the gross profit margin of Cyrus sales increased from 6.68% to 12.72%.
Caitong Securities released a research report saying that Tesla’s price-for-sales strategy will intensify competition in the new energy automobile industry, and marginal brands may be cleared, and industry concentration is expected to increase. At the same time, new energy OEMs and upstream parts companies may face pressure to reduce costs.
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