Huawei-sponsored Wenjie M5 and M7 lost 1.6 billion in selling well-off shares: large R&D investment

Wenjie M5 and Wenjie M7 are the electric vehicles that Huawei mainly supports. In particular, the newly released M7 has more than 50,000 orders within 48 hours. For a large SUV with a price of more than 310,000, this kind of achievement is indeed somewhat. amazing.

However, the new car was sold so much that Xiaokang shares, which produced these electric vehicles, lost money. Last night, Xiaokang shares issued a half-year report notice.The company expects to achieve operating income of 12 billion yuan to 12.6 billion yuan in the first half of 2022, a year-on-year increase of 62.5% to 70.63%.

Xiaokang said that the sharp increase in revenue was mainly due to the monthly increase in the delivery of Celis new energy vehicles, and the company’s net cash flow from operating activities was greatly improved. At the same time, the gross profit margin of the company’s new energy vehicles also increased compared to the same period last year.

From January to June 2022, the cumulative sales of new energy vehicles under Xiaokang Co., Ltd. is about 45,600, a year-on-year increase of 204.51%. Among them, the cumulative sales of Celis new energy vehicles are about 21,600 units, accounting for nearly 50% of the company’s total sales of new energy vehicles in the first half of this year.

However, Xiaokang shares are expected to lose 1.6 to 1.76 billion yuan in the first half of the year.The official explanation is that it is mainly due to the continuous investment in the research and development of new energy vehicle products of Celis and the large investment in fixed assets in the early stage.Production and sales are still in the climbing stage, and depreciation and amortization expenses have increased.

At the same time, as Celis’ new energy vehicle products enter the market promotion period, marketing expenses and labor costs have also increased.

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