introduction

At the beginning of December, the share price of Xiaokang shares went up and down after Celeste released a brand new high-end brand AITO, but after Huawei’s press conference appeared in AITO M5 yesterday, Xiaokang shares went down on December 24th. Economic analysts believe that this is due to Huawei’s increasing participation in AITO and M5, which broke the expectation that Xiaokang shares are Huawei’s automobile partners. This means that the Celeste SF5 blessed by Huawei is also afraid of being uncompetitive in front of the M5. However, from the perspective of the whole new energy track, it is still unknown how Huawei AITO asks about the future of M5.

01

On December 24, Xiaokang shares opened at 70.68 yuan. As of 10: 15, Xiaokang shares fell by 10% to 63.19 yuan, hitting the limit, with a turnover of 1.323 billion yuan.

Combing the car stocks in the secondary market today, the overall car sector fell, especially Xiaokang shares. CRRC called the secretary of Xiaokang shares, saying that this was caused by various factors in the secondary market and it was impossible to determine the specific reasons.

On December 23rd, Huawei unveiled two AITO cars at the flagship product launch conference in winter. At the beginning of December, Sailis, a subsidiary of Xiaokang, released a brand new high-end brand AITO. According to the official statement, AITO is a high-end smart car brand deeply empowered by Huawei. Compared with Sailis SF5, the R&D, manufacturing and sales services of AITO are deeply involved by Huawei, and Sailis also given great autonomy to Huawei. As soon as the news came out, Xiaokang shares had a daily limit on December 13, and its market value once again stood at 100 billion market value.

At the press conference, Huawei unveiled the first model of AITO brand-Wenjie M5, and started the pre-sale. The new car is positioned in a medium-sized luxury electric extended-range SUV, which is the first car equipped with a Harmony OS smart cockpit. The new car will be exhibited in 180 stores in 42 cities of Huawei. This is the second new car exhibited in Huawei stores after Cyrus SF5.

The appearance of AITO did not drive the share price of Xiaokang shares to rise, but plummeted. Shen Meng, chairman of chansons Capital, told CRRC: "Huawei released auto products based on its own system, but it did not involve Xiaokang shares, breaking the expectation that Xiaokang shares are Huawei’s auto partners."

From the above, although the AITO brand belongs to Cyrus, most of what we see from the AITO brand and the M5 model in Wenjie is the shadow of Huawei, except that the model name does not carry the Huawei logo, which basically belongs to the car built by Huawei.

02

Xiaokang Co., Ltd. was established in 2007 and listed on the A-share market in June 2016. The company’s business scope includes R&D, production, sales and service of complete vehicles and their engines and parts. Before catching up with Huawei, Xiaokang shares had been in a marginal situation. From 2018 to 2020, the revenue and profits of Xiaokang shares showed a downward trend, and the accumulated losses in three years exceeded 1.6 billion yuan; At the same time, its capital-liability ratio is as high as 79%.

At the beginning of 2019, Xiaokang shares and Huawei signed a comprehensive cooperation contract to cooperate in the field of new energy vehicles. Since then, Xiaokang shares have gradually entered the eyes of investors in the capital market. In April 2021, Huawei Zhixuan reached a cooperation with Xiaokang, and Huawei said that it would sell the new energy Cyrus under Xiaokang in its sales channels; At this year’s Shanghai Auto Show, the Seles Huawei Smart Selection SF5 jointly built by Seles and Huawei was officially listed and jointly sold in both channels.

Regardless of the sales volume of Celestial SF5, the advent of Celestial SF5 blessed by Huawei alone made Xiaokang shares in the capital market. The share price of Huawei Xiaokang shares rose from 8.81 yuan/share at the beginning of November last year to 77.77 yuan/share around June this year, an increase of 782.75%.

Relevant data show that since the listing of Celestial SF5, its sales from April to November were 129 vehicles, 204 vehicles, 1097 vehicles, 507 vehicles, 715 vehicles, 1117 vehicles, 1926 vehicles and 2205 vehicles, with a total of 8,170 vehicles this year. Although compared with the past, Celestial SF5 has supported the sales of Xiaokang shares, this sales volume is not as good as when it first came out.

03

It is worth noting that China National Intellectual Property Administration showed that AITO was applied by Zhengde Electronics Co., Ltd. on March 29, 2021; On August 3, 2021, AITO trademark was transferred from Zhengde Electronics Co., Ltd. to Chongqing Haokang Enterprise Management Consulting Co., Ltd. According to the data, the consulting company is a wholly-owned subsidiary of Chongqing Xiaokang Industrial Co., Ltd.

The trademark ownership of AITO high-end new energy brand, which is deeply involved by Huawei, belongs to Xiaokang shares, which also means that for Xiaokang shares, AITO brand models are "well-known".

Now, after Huawei-led AITO high-end brand M5 appeared, how to develop Celeste SF5 has become another problem. It is still unknown whether Xiaokang shares, which have entered the club with a market value of 100 billion yuan, can win the favor of investors with Huawei.

From the current point of view, if the dominance of Cyrus is still in the hands of Xiaokang shares, Huawei will be more and more involved in the appearance of the brand new AITO. Compared with Huawei, Cyrus has few chips left. In Huawei, well-off society is not the only choice. Now Huawei has cooperated with other automakers such as Auto and Beiqi Extreme Fox. But for Xiaokang, Huawei is the catalyst to promote it on the new car track.

Although Huawei has repeatedly denied that it will build a car next time, it is generally believed that it is only a matter of time before Huawei will build a car next time. Then, in the future Huawei stores, when Huawei’s smart selection of Celestial SF5 and AITO’s world M5 are placed at the same time, Celestial SF5 may not be competitive.

It is worth noting that AITO Wenjie M5, a new entrant of high-end new energy brand, is still facing competition in the face of new car-making forces such as Weilai and Ideality, which have already occupied a certain market share in the high-end luxury new energy market, and high-end brands that traditional car companies such as Zhiji and Lantu have devoted themselves to building, despite Huawei’s blessing.