After cooperating with Huawei, the former Xiaokang Co., Ltd. and now Cialis have indeed become stronger. As November begins, major new car-making forces have successively handed over their report cards.

After cooperating with Huawei , the former Xiaokang Shares and now Cialis have indeed become stronger.

Entering November, major new car-making forces have successively handed over their report cards. Judging from sales data, GAC Aion still performed well, with sales reaching 30,063 units in October, ranking first among new car-making forces; Nezha Auto ranked second with sales of 18,016 units; and third place was Sellis, with sales in October also reaching 12,047 units.

sales in October continued to exceed 10,000, and Cialis's results were undoubtedly very excellent. In the secondary market, Cialis's stock price also saw a sharp rise, and closed two limit up within 3 days after the data was released. Looking back now, cooperation with Huawei has also become a turning point for Cialis. If there is no cooperation with Huawei, perhaps Cialis is still struggling to find a way out.

However, behind the beautiful sales data, Cialis actually has hidden dangers - although it has achieved a sharp increase in sales through cooperation with Huawei, and Cialis' revenue is also growing, Cialis' cumulative loss in the first three quarters was 2.67 billion yuan, and it has suffered a net profit loss for the fifth consecutive year. In addition, its sales expenses exceeded 3 billion yuan, which is 4 times the same period.

There is no doubt that with its cooperation with Huawei, the former Xiaokang Shares has transformed into the current Cialis, achieving double sales growth; but in order to promote cooperation, Cialis has obviously paid a lot of price, and these prices have eventually become a major hidden danger.

"transformation" of Xiaokang Co., Ltd.

There is no doubt that Huawei has become the most important partner of Cialis today.

"If BMW comes to talk to me about the joint venture car manufacturing at this time, I will not do it. I will unswervingly cooperate with Huawei across borders." At the Xiaokang Shares name change briefing more than three months ago, Zhang Xinghai, the founder and chairman of Xiaokang Holdings , said excitedly; from Zhang Xinghai's words, it is not difficult to see how much trust this car company boss trusts Huawei.

In fact, Huawei has indeed made the former Xiaokang Shares and now Cialis achieve a "transformation".

According to data, Xiaokang Co., Ltd. was established in 1986. Its predecessor was Chongqing Baxian Phoenix Electrical Appliances Spring Factory. It started to do spring processing business in home appliances. As the spring business became bigger and bigger, in 1996, the Phoenix Electrical Appliances Spring Factory began to enter the automobile and motorcycle shock absorber markets, providing shock absorber accessories for motorcycle manufacturers such as Changan , Dongfeng , Jialing , etc.

In 2001, Zhang Xinghai established Chongqing Yu'an Group Co., Ltd., acquired the "New Feeling" brand motorcycle sector under Lifan , and began to officially enter the motorcycle industry; two years later, in June 2003, Dongfeng Motor and Yu'an Group officially signed the tripartite agreement , established Dongfeng Yu'an Vehicle Co., Ltd. , and began to enter the micro-car market again.

Later, Yu'an Group was renamed Xiaokang Group, and its Dongfeng Xiaokang microcar was sought after by consumers. Its sales exceeded 1 million in just 8 years, becoming the leader in the microcar field and was launched in 2016.

After listing, Xiaokang Co., Ltd. began to explore new fields - new energy vehicle field.

At that time, Zhang Xinghai sent his son Zhang Zhengping to study overseas. Not long after, he established the SF electric vehicle project and built the headquarters of the electric vehicle project in Silicon Valley, USA, recruiting talents in a large amount of money, and even investing nearly 6 billion yuan in funds to acquire companies, hoping to master the most core "three-electric technology" in the field of electric vehicles.

In October 2017, Xiaokang Co., Ltd. was approved by the Ministry of Industry and Information Technology, becoming the 9th car company to obtain "dual qualifications". However, although huge energy and funds have been invested, Xiaokang Co., Ltd.'s new energy business has not been progressing smoothly.

In April 2019, Jinkang New Energy's first model, , SF5 , was officially launched. According to the plan, SF5 will be mass-produced and delivered in the third quarter of 2019, but the actual delivery time has been repeatedly postponed to July 2020.

Due to the slow delivery of the

, the sales of the SF5 in 2020 were only about 1,000 units. Faced with dismal sales, Cialis had to seek external cooperation, which coincided with Huawei also seeking to enter the new energy vehicle industry. The two companies hit it off. At the Shanghai Auto Show in April 2021, Cialis announced that it had officially reached in-depth cooperation with Huawei.

With Huawei's strong support, Cialis's business ushered in an explosion. For example, the Cialis SF5, which sold only more than 1,000 units in 2020, sold 8 months after cooperating with Huawei, sales reached 8,509 units; then, both launched the AITO series of Questioning and World Series, and launched the first SUV of Questioning and World Series - Questioning and World Series M5 in December 2021.

With the launch of the new car, this SUV with a strong Huawei color has been sought after, with sales exceeding 10,000 in September and October. The former Xiaokang Co., Ltd. also "transformed" into the current Cialis through its cooperation with Huawei.

lost 2.67 billion yuan, and Cialis became a "worker"

Although it has succeeded with its cooperation with Huawei, due to Huawei's halo, Cialis has gradually become a "worker" role, and its positioning is becoming increasingly embarrassing.

According to media reports, there are three modes of cooperation between Huawei and car companies. The first is the traditional supplier model; the second is the HI model, that is, Huawei Inside model, which provides full-stack intelligent car solutions, and the third is Huawei's deep participation in product definition and vehicle design, and will also provide smart car selection mode with sales network channels.

At the beginning, Cialis and Huawei did not have too deep cooperation. However, since Cialis SF5 did not achieve the expected results, the two later chose a third model of deeper cooperation - Huawei deeply participated in product definition and vehicle design, and also provided a smart car selection model for sales network channels. The AITO Questioning Series uses this model.

After Huawei's deep participation, the first SUV, the M5, which was launched, was sold well. The sales volume in September this year exceeded 10,000 units, becoming a dark horse among the new car-making forces in 2022. However, although sales have increased significantly after in-depth cooperation with Huawei, Cialis has also paid a lot of price for it.

According to the third quarter report data, as of the first three quarters, Cialis achieved revenue of 23.12 billion, and increased by 101.96% year-on-year compared with ; net profit was a loss of 2.675 billion, a year-on-year decline of 146.89%, and performance increased revenue but not profit; it is worth mentioning that this is the fifth consecutive year that Cialis has suffered losses, and since 2019, the degree of loss of Cialis has been increasing.

So, why does Cialis suffer from continuous losses? Behind this is still related to Huawei's cooperation.

According to the data, as of the third quarter of this year, Salis' sales expenses reached 3.083 billion yuan, while the sales expenses in the same period last year were only 757.4 million yuan, which has doubled this year. Regarding the increase in sales expenses, Cialis also explained the significant increase in sales expenses: the reasons for the change are mainly caused by the increase in publicity costs for high-end new energy vehicles, sales service fees for , etc.

According to media reports, the AITO Questioning Series has now entered Huawei's about 500 experience centers and user centers. This benefit is very obvious - Cialis does not need to open an experience store anymore, but Huawei's experience center also needs to be paid.

According to media reports, in the smart selection mode, Huawei's share of the entire vehicle manufacturer is about 1:9; taking a 259,800-yuan M5 model for example, Huawei can get about 26,000 yuan for every car sold; and of this 10%, about 2% is Huawei's technical authorization fee and 8% is the distribution fee for the channel.

It is precisely because of Huawei's charges that Cialis' gross profit margin is very low. According to the third quarter report data, Cialis' gross profit margin is only 9.8%, of which the gross profit margin of automobile products is only a pitiful 2.14%.

Judging from the above data, in the cooperation with Huawei, although Cialis' revenue has increased significantly, it is actually more of a "cool worker", especially in terms of gross profit margin, Cialis has now become a "worker" of Huawei.The hidden dangers behind the deep bundling of

In addition to becoming a "worker", more and more car companies are cooperating with Huawei, which is also a major hidden danger for Selis.

According to media statistics, more and more car companies are currently cooperating with Huawei. In addition to Cialis, such as BAIC Jihu, Changan Automobile , GAC Group , Great Wall Motor , Chery and even BYD , have all begun to cooperate with Huawei.

has more and more car companies to cooperate with Huawei, making the technology that only Cialis has no longer "exclusive".

For example, its Hongmeng cockpit that is widely publicized to the outside world, now brands such as the Ji Fox, Rubik's Cube, Avita , Geometry, etc. have already equipped the Hongmeng system. In this case, the attractiveness of Cialis will undoubtedly further decline.

In addition, according to media reports, the Avita 11, jointly created by Huawei, Changan and CATL , will enter Huawei flagship store within the year, which means that Cialis will no longer own the sales channel of Huawei stores, and there will be more and more competitors.

In order to firmly tie Huawei, Cialis can only continue to increase its investment and try to satisfy Huawei.

For example, in order to meet the production needs of M5 and M7, Cialis has increased its investment in the production side. Since this year, Liangjiang factory and Phoenix factory have been put into use one after another, and are also preparing for next year's M9.

From the perspective of cash flow statement, as of the first three quarters of this year, the net cash flow of generated by Cialis' investment activities flowed out of 2.07 billion, of which 1.578 billion flowed out of 1.578 billion in the third quarter.

From the perspective of action, Cialis has made a lot of contributions to retain Huawei as a partner.

However, for Huawei, only if more and more car companies cooperate, its impact in the field of new energy vehicle will become greater and greater. In the planning, Huawei also made it clear that Huawei will continue to empower other brands in the future, and other brands will gradually log on to the Huawei Smart Selection platform. It is expected that Huawei stores in the future will display at least 2 cars, so today's Cialis may be just "wishful".

In fact, Cialis' current situation is very similar to many companies in the current Apple industry chain, but the new energy vehicle industry is still developing rapidly today, so Cialis will not be risked to be abandoned. However, every industry will always have a stagnant growth. If you don’t want to repeat the same mistakes, Cialis should still reduce its dependence on Huawei and learn to control its own destiny.