Recently, Cialis released its financial results for the first quarter of 2023 and 2024. The data shows that in 2023, there will be a loss of 2.45 billion yuan (deducting non-loss -4.82 billion yuan), but in the first quarter of 2024, the net profit of Cialis has turned positive, ending four consecutive years of losses.
According to the report, in the first quarter, the revenue of Cialis was 26.561 billion yuan, an increase of more than four times, while the net profit reached 220 million yuan, and the gross profit margin increased to 21.5%.
And we know that Huawei and Cialis cooperated to launch the brand AITO Wenjie in 2021, and from 2021 to 2023, starting from 2022, because of the launch of M5, Cialis revenue has increased significantly, but the loss has also increased, as shown in the figure below, in the past three years, Cialis has deducted a total loss of about 12 billion yuan in non-net profit.
Therefore, many people complained that although the sales of Cialis have increased, the losses are also growing wildly. With such a big loss, can Cialis bet to win tomorrow and hand over his soul to Huawei, is it right or wrong?
Looking at it now, it is obvious that Cialis has made the right move, and the data speaks for itself, that is, Cialis has begun to make a profit, and with the hot sales of Wenjie Cars, Cialis's profitability will definitely get higher and higher.
Secondly, it is not difficult to understand why there were so many losses in the early stage, because the R&D investment of M5, M7, M9 and other models is high, resulting in higher comprehensive costs such as R&D expenses and labor costs.
Only when the sales volume reaches a certain level, it is possible to turn losses into profits, and the sales volume of Cialis will make money after reaching a breakeven point.
And now, this break-even point has been reached, and next, the profitability of Cialis can continue, and a car company, with good models, is welcomed by the market, sales are good, and it makes money, and the future is of course a smooth road.
Of course, judging from the specific models, it is the new M7 and M9 that pull Cialis out of the quagmire of losses.
The new M7 has exploded since it was launched on September 12 last year, with a price reduction and a rise in configuration, and the cumulative number of units in the 7 months has exceeded 174,000, which is tens of billions of revenues.
The M9 has exceeded 70,000 units in the three months since it was listed, and the M9 is a 500,000-level luxury car, 70,000 units, which is also more than 30 billion in revenue. Obviously, the M7 and M9 of Xinwenjie have supported the revenue of Cialis, and they have really made Cialis profitable.
Not only that, because of the hot sales of M7 and M9, Huawei's car BU has achieved profitability, this news was confirmed by Yu Chengdong, he said that from January to March 2024, Huawei's smart car business has been profitable, and in April, it is expected that the entire car BU will be profitable.
It can be seen that Cialis chose to hand over its soul and build a car with Huawei, but it lost 12 billion in the early stage, which is indeed a bet. If Cialis does not cooperate with Huawei, without AITO to ask the world, what the situation will be, I guess I don't need to say more, everyone understands.
For Yu Chengdong, it can be regarded as raising eyebrows, after all, the smart car model is led by Yu Chengdong, and Yu Chengdong needs to create a successful sample to tell other car companies that if they want to make money and survive, they will find Huawei.
Now that the sample has been successful, there will be more and more smart cars that choose to cooperate with Huawei in the future, isn't Yu Chengdong just raising his eyebrows? Huawei has proved its strength, and Yu Chengdong has also proved that he is sticking to the right direction.