On October 27, Cialis released its financial report for the third quarter of 2023. According to the report, in the third quarter of this year, the operating income of Cialis was 5.648 billion yuan, a year-on-year decrease of 47.25%. In the first three quarters, the total operating income of Cialis was 16.68 billion yuan, a year-on-year decrease of 27.86%.
In terms of net loss, the net loss in the third quarter of this year was 950 million yuan, which was almost the same as the net loss in the same period last year, and the net loss in the same period last year was 947 million yuan. However, compared with the first and second quarters of this year, the net loss in the third quarter widened. For reference, the net profit attributable to the parent company in the first quarter of 2023 will be -625 million yuan, and the net profit attributable to the parent company in the second quarter will be -719 million yuan. The cumulative loss from January to September was 2.294 billion yuan, higher than 2.675 billion yuan in the same period last year.
Regarding the increase in losses, the official said: the change in operating income in this reporting period was mainly affected by the year-on-year decline in sales in this reporting period. The new M7 series model was released and delivered in mid-to-late September, and the company's operating income is expected to increase significantly with the gradual delivery of the company's products.
In terms of R&D investment, in the first three quarters of this year, Cialis R&D expenses totaled 1.091 billion yuan, an increase of 20.42% compared with 906 million yuan in the same period last year. In terms of sales, in the first three quarters of this year, the cumulative sales of Cialis were 136,800 units, a year-on-year decrease of 30.65%, of which the sales of new energy vehicles were 68,000 units, a year-on-year decrease of 25.16%.
Relevant information shows that Cialis and Huawei will start cooperation in 2021 and launch the first cooperative model, Cialis Huawei Smart SF5. At that time, the new car was simultaneously sold online on Huawei's official website, and entered Huawei's stores and flagship stores at the same time, with a price range of 216,800-246,800 yuan. Although both parties have given a lot of resources to support the first model, the sales of Huawei Smart SF5 are not ideal, and the annual sales of Cialis SF5 in 2021 will only be 8,169 units. In order to turn around sales, the two companies once again collaborated on the launch of the Wenjie brand, followed by the launch of the Wenjie/M5 EV and the Wenjie M7. With the blessing of a variety of models, the sales volume of Wenjie in 2022 has also made a breakthrough, and the cumulative delivery volume of the whole year has reached 75,000 units. Relevant data show that from 2021 to 2022, the cumulative loss of Cialis has reached 7.089 billion yuan.
Entering 2023, the entire domestic auto market has been affected by Tesla's comprehensive price cuts. Relevant data show that from January to September 2023, the retail sales of AITO Wenjie will be 4,469, 3,512, 3,625, 2,437, 4,083, 5,668, 4,240, 6,243, and 7,025 respectively. Selling is thanks to a lot, and selling not much is also difficult to escape the fate of loss. On September 12, the new M7 was launched, and the new car is positioned as a medium and large SUV, with a price starting at 249,800 yuan. After the launch of the new M7, the explosion of orders also made Cialis suddenly become a role in the market's attention. According to official data, the cumulative mass of the "new M7" has exceeded 70,000 units.
Regarding the loss situation of Cialis, some people in the industry pointed out that the reason for the loss is that the loss is difficult to improve because the economies of scale have not been achieved. Taking Li Auto as an example, Li Auto's economies of scale are based on its cumulative delivery of nearly 400,000 vehicles. Up to now, the cumulative sales volume of Cialis is still a long way from the road to profitability. As for the cooperation between Cialis and Huawei, both parties are beneficial, after all, for Cialis can use the cooperation with Huawei to enhance product visibility and return to the competition on the automobile track.
From the perspective of sales, the sales of Cialis Automobile are not very bright, and the overall sales belong to the second echelon. From the perspective of brand awareness, if it is not bundled with Huawei, many people may not know the existence of Cialis. In addition, for the cooperation between the two sides, Cialis has always been in a weak position. At the same time, Huawei is still cooperating with other car companies, including BAIC Jihu, Changan, Chery, etc., and there are still many unstable factors in the follow-up cooperation between Huawei and Cialis.
"Automotive Industry Concern" believes that the future way out of Cialis must be done by itself. Cialis itself understands this truth, and it established Chongqing Cialis Landian Automobile Co., Ltd. this year and launched the first model, Landian E5. In addition, the two companies joined hands with Bosch China in August to jointly build high-end intelligent electric vehicles for customers. Indeed, only by constantly seeking new partners can we better enhance the competitiveness of our products, so as to better gain a foothold in the market.
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