Cyrus achieved a positive net profit in the first quarter of 2024. On April 29th, Cyrus announced that its revenue in the first quarter was 26.561 billion yuan, a year-on-year increase of 421.76%. The net profit attributable to shareholders of listed companies was 220 million yuan, and the gross profit margin in the first quarter increased to 21.5%.
For Cyrus, this means entering a benign development stage in the new energy vehicle track. At the press conference of Beijing Auto Show, Zhang Xinghai, the chairman of Cyrus Group, has set a higher goal for the future. "Cyrus is reshaping luxury with wisdom, exploring the’ new luxury’ of’ traditional luxury+technological luxury’, and letting more China people drive luxury cars made in China."
Strong growth in new energy vehicle business: Sellers’ net profit turned positive in the first quarter.
Sailis started from Silicon Valley in 2016 and transformed into a high-end intelligent electric vehicle track. After eight years of new energy exploration and three years of cross-border integration, it has built three electric vehicles. In the first quarter of this year, Sailis achieved a positive net profit, and its gross profit margin continued to improve to 21.5%, which also confirmed the initial success of its new energy vehicle strategy and became a strong growth engine to promote performance.
In contrast, Tesla, as a pioneer and leader of new energy vehicles in the world, took 17 years to make a profit; BYD experienced a long period of "increasing income without increasing profit" before it ushered in the harvest period; It took LI eight years to make a profit for the first time.
Looking back on 2023, the competition in China automobile market is extremely fierce, and the "price war" runs through. In the face of the serious involution market environment, the new energy automobile business of Cyrus ushered in an outbreak in the second half of the year. The data shows that the operating income in the fourth quarter of 2023 was 19.162 billion yuan, a year-on-year increase of 74.49%; In the fourth quarter, the sales volume of new energy vehicles was 82,700, up 88.39% year-on-year, and both the operating income and the sales volume of new energy vehicles reached record highs.
In the first quarter of this year, it continued to maintain a strong growth momentum, benefiting from the increase in sales of new energy vehicles. In the first quarter of 2024, the net cash flow generated by operating activities was 1.187 billion yuan. At the same time, technological innovation and large-scale production have gradually reduced the realization cost, and the gross profit margin in the first quarter has greatly improved, further promoting the company’s profit growth.
AITO series continues to sell well, technology research and development drives innovation.
Behind the substantial increase in performance, it is inseparable from the hot sales of AITO series products jointly designed by Kailisi and Huawei. The series of models represented by AITO’s new M7 and M9 became explosive when they went on the market. In the first quarter of this year, the cumulative sales volume of AITO’s entire department broke 80,000, ranking among the top five luxury brands in China market and becoming the highest ranked China brand in the list.
Up to now, the number of auto users in AITO has approached 300,000. With the listing of the new M5 in AITO, the product matrix of high-end smart cars continues to be rich, and the market scale is expected to be further expanded. Many institutional research reports are optimistic about the growth of Cyrus. China Merchants Securities believes that the sales of the new M7 and M9 in Wenjie continue to climb, and the new M5 in Wenjie is listed, and the company’s sales have entered a benign turning point, optimistic about the subsequent continuous heavy volume.
It is worth mentioning that under the extremely involuted environment of the industry, Sailis has always maintained its strategic strength, formed its first-Mover advantage and accumulated advantage through large-scale R&D investment, achieved a leap in product quality through technological innovation, and finally transformed scientific and technological achievements into enterprise benefits. The data shows that in 2023, the R&D investment was 3.348 billion yuan, accounting for 12.38% of the operating income, which is the deep-seated reason why Cyrus can cross the industrial ups and downs cycle and also played a key role in turning the net profit into a positive one.
The Cyrus Rubik’s Cube platform, which was unveiled at the 2024 Beijing Auto Show, integrates industry-leading technologies such as safety, power, chassis and software across domains, bringing users a "easy-to-drive, easy-to-use and super-safe" car experience. When China’s new energy vehicles enter the second half, their own technical accumulation and accurate prediction of the future will become the key to winning or losing. From this point of view, the future of Cyrus can be expected.