Although Huawei’s semi-annual report has not yet been officially released, the news that car BU has made a profit for half a year has long been out.
Recently, the media revealed that Huawei BU earned nearly 10 billion yuan in half a year and made a profit.
According to Huawei’s financial reports over the years, the annual revenue of Huawei’s BU from 2022 to 2023 was 2.
1 billion yuan and 4.
7 billion yuan respectively.
If Huawei BU achieved nearly 10 billion yuan in revenue in the first half of this year, it will exceed the combined revenue of the past two years.
This is not the first time that Huawei BU has “shown its performance”.
At the China Electric vehicle Centenary Forum (2024) held in March, Yu Chengdong, chairman of Huawei terminal BG and smart car solution BU, once said that Huawei BU lost 10 billion yuan in the previous year, then 8 billion yuan, and 6 billion yuan last year, and may be able to turn a loss into profit this year.
Thanks to the big sales of high-end models built by us and our partners.
In the first three months of this year, the smart car business turned from loss to profit.
Huawei’s BU business was close to the brink of break-even.
I expect that starting from April, we should be able to turn losses into profits and achieve benign positive development in the future.
” Yu Chengdong said.
Since the beginning of this year, Hongmeng Zhihang, which is sponsored by Huawei BU, is a bright star in the market.
Official data show that Hongmeng Zhihang sold a total of about 194200 vehicles in the first half of 2024, of which MJ’s performance is the most outstanding, accounting for more than 90% of Hongmeng Zhihang’s overall sales.
M9 and M7 have become outstanding market segments.
The rapid rise in sales has brought strong profitability to Huawei’s BU, while the independence of Huawei’s BU is also accelerating.
In August 2023, there was news that Huawei intended to promote the independence of the car BU, and the ambiguous object at that time was the Chongqing State-owned assets Supervision and Administration Commission.
Just three months later, Huawei BU has made new progress in independence, and the partner has changed from Chongqing SASAC to Changan Automobile.
Huawei, November 25, 2023, Changan and Huawei signed a Memorandum of Investment Cooperation, which shows that Huawei plans to establish a company engaged in the development, design, production, sales and service of automotive intelligent systems and components solutions, and integrate the core technologies and resources of smart car solutions into the new company.
Changan Automobile and its related parties plan to invest in no more than 40% of the new company, and work with Huawei to build the new company into a world-class leader in intelligent driving systems and components.
The process of car BU independence has been accelerated.
In January this year, Huawei completed the registration of the target company, named Shenzhen Vision Intelligent Technology Co., Ltd., and its business scope mainly includes automobile intelligent driving solution, car intelligent cockpit, smart car digital platform, smart car cloud, AR-HUD and intelligent car lights.
In May, Changan Automobile announced that Changan had basically completed the financial, legal, business and technical due diligence involved in the project.
Changan and Huawei are in further negotiations on the key terms of the deal, and according to the latest project progress, Changan is expected to sign the final transaction document no later than August 31, 2024.
In addition to Chang’an ‘s active discussions with Huawei, many car companies have also extended an olive branch to Huawei.
In March this year, you Zheng, member of the standing Committee of the Party Committee and Deputy General Manager of Dongfeng Automobile Group Co., Ltd., said in an interview with the media that Dongfeng Motor was actively promoting participation in Huawei BU in conjunction with FAW Group, while before that, Dongfeng Automobile’s Lantu Automobile and Mengshi Technology successively signed strategic cooperation agreements with Huawei, but neither side disclosed the specific cooperation model.
Huawei’s cooperation is not limited to the three central enterprises.
“Huawei’s BU business is moving towards independent operation.
Huawei has issued equity opening invitations to Cyrus, Chery, Jianghuai and BAIC, and hopes that China FAW Group will join.
We welcome powerful car factories in China, such as FAW, to participate in the co-construction and jointly build the products of the leading and ultimate smart car solutions.
” Yu Chengdong once said.
Tuyuan: Hongmeng Zhihang, on the one hand, the profitability of car BU has been rapidly improved, and on the other side is a large number of vehicle companies waiting to participate in shares.
Huawei BU, which has a lot of cutting-edge technology, has been transformed.
In other words, the well-developed Huawei BU has more bargaining power, which means Changan needs to pay higher costs to get control.
In addition, the soon-to-be independent Huawei BU business has covered the vast majority of domestic car companies.
According to Jin Yuzhi, BU CEO of Huawei’s smart car solution, “by the end of 2023, Huawei has developed more than 300 upstream and downstream partners in the industrial chain, and seven strategic cooperative models have been listed.
” Jin Yuzhi also said, “within this year, Dongfeng’s Lantu and Mengshi brands will be on the market using Qianmai smart driving models.
” In addition, there are Changan’s Shenlan and Avita, GAC MOTOR, BAIC’s Jihu and Hengjie, Selis, Qirui, and so on.
In total, more than 10 strategic cooperative models with Huawei Qianwei ADS will be launched.
” Huawei BU has assembled more than half of its cars at both the capital level and the cooperative business level, which means that Huawei BU will have a greater say in the soon-to-be-rapid development of smart electric vehicles and become a first-tier supplier in the smart car era.
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