Bicycle profit surpasses Tesla, goes to Hong Kong to raise 20 billion, the profit king in the automotive industry faces a big test

The shouts in the streets were still there, and Lao Wang, who had just gone to the morning market, shook his head and sighed: "You said that this new energy vehicle, the name Cyrus sounds resounding, and you are making money, why are you still acting like an old shabby car like us, being criticized every day until you can't breathe." This is not unreasonable, in 2024 Thalys's net profit of 5.9 billion sounds great, and it is the profit king in the car industry, but who knows the story behind it. The debt ratio is frighteningly high, and the high-end cars that are selling well are also being watched. The sales of low-end models are plummeting, and the market is like a barbecue stall downstairs in a community, with a burnt smell in the excitement.

Thalys plans to raise 20 billion Hong Kong dollars in its Hong Kong stock market listing this time. I heard that the Hong Kong Stock Exchange has passed the hearing and will be listed soon. As soon as this incident came out, the big guys in the car circle in the circle of friends were quarreling fiercely. Some said it was a "life-saving straw", while others laughed at "financial blood transfusion, you won't survive long." Internal employees complained privately: After getting the money, 70% must be invested in smart driving and 20% in overseas channels. To put it bluntly, technology and going overseas walk on two legs. If the technology is not in place, going overseas means walking at night and causing miserable falls.

The shouts in the streets were still there, and Lao Wang, who had just gone to the morning market, shook his head and sighed: "You said that this new energy vehicle, the name Cyrus sounds resounding, and you are making money, why are you still acting like an old shabby car like us, being criticized every day until you can't breathe." This is not unreasonable, in 2024 Thalys's net profit of 5.9 billion sounds great, and it is the profit king in the car industry, but who knows the story behind it. The debt ratio is frighteningly high, and the high-end cars that are selling well are also being watched. The sales of low-end models are plummeting, and the market is like a barbecue stall downstairs in a community, with a burnt smell in the excitement.

Thalys plans to raise 20 billion Hong Kong dollars in its Hong Kong stock market listing this time. I heard that the Hong Kong Stock Exchange has passed the hearing and will be listed soon. As soon as this incident came out, the big guys in the car circle in the circle of friends were quarreling fiercely. Some said it was a "life-saving straw", while others laughed at "financial blood transfusion, you won't survive long." Internal employees complained privately: After getting the money, 70% must be invested in smart driving and 20% in overseas channels. To put it bluntly, technology and going overseas walk on two legs. If the technology is not in place, going overseas means walking at night and causing miserable falls.

Looking back at the time when Cyrus was first listed on the A-share market, investors were quite optimistic. After all, few people made money from new energy vehicles, so it was a miracle that they survived. But now the asset-liability ratio is as high as 76%, accounts payable are as high as 68.5 billion, cash flow is as tight as the change jar at the village entrance, financing is 24 billion, and the net profit is actually a loss of 1.7 billion. No matter how you calculate this, it is a loss. Lao Wang is right, the pit is very deep. It is not only a matter of money, but also customers are beginning to waver. The sales of the most popular M7 dropped from more than 20,000 units to less than 4,000 units in a single month, let alone other models.

In the high-end market, M8 and M9 can still hold up. M9 has sold 226,000 units in more than a year since its launch, firmly holding the title of sales champion of more than 500,000 units. M8 has also sold 100,000 units. The net profit of a single car can beat Tesla. The net profit of 13,000 yuan is enviable. However, the price of these two cars is in close competition with the Ideal L8 and NIO ES8, and their market share has been eroded little by little. Especially the pure electric version of the M8, which has lost many customers to NIO. Cost-effective competitors such as Galaxy M9 and Deep Blue S09 are also joining in the fun, with low prices and practical configurations. Like the newly opened supermarket at the entrance of the community, they have everything at a low price.

Employees murmured privately that once upon a time, new energy vehicles were sold based on belief and technological revolution. But now, they are sold as "packages", and they fight for configurations and prices, and the fight is bloody. There was even more ridicule on the Internet. Netizens joked: "The profit of Cyrus is like the hot pot base in the refrigerator. It is lively and it will be cold if you can't finish it." Some netizens made a meme, M7 sales are like autumn leaves, floating all over the ground.

National policies are not idle either. The "Draft Amendment to the Price Law" is on the agenda to strictly control price monopoly and false promotions. This means that regulators are keeping an eye on these car companies and don't play tricks or deceive consumers. But for Cyrus, the market competition is fierce, and its product and brand power are weak. If it wants to rely on financing to support itself, it will be beaten to death by the market sooner or later. Lao Li said that the "money-burning game" of car companies is too intense and they have no real skills. Once the capital chain is broken, cars cannot be sold, factories close, and hard-earned money is wasted.

From a technical point of view, Cyrus is betting on smart driving, electric drive and batteries, hoping to break through the difficulties with core technology. Industry analyst Zhong Shi bluntly said, don’t blindly stare at those additional configurations like “refrigerator color TVs”. The real moat is electric drive efficiency, battery performance and intelligent driving. There is still room for improvement in the fuel-to-electricity conversion rate of the Wenjie model. If one liter of oil can be converted into four kilowatt-hours of electrical energy, the vehicle will be able to run a few more kilometers and the owner will have to refuel less often, thus reducing the cost of using the vehicle.

Battery technology is even more critical. If 800V high-voltage platforms can be popularized, coupled with high-density all-solid-state batteries, the charging speed will be fast, and there will no longer be empty power in cold weather, and the user experience will be immediately improved. Intelligent driving is also not idle. A cloud training center is built based on Huawei ADS to quickly implement NOA functions in urban areas, and even pave the way for L4 autonomous driving. The deep binding between Huawei and Cyrus is not only a technical cooperation, but also a market moat.

Cooperation also brings troubles. Huawei has many "Jiezi generation" models, and internal employees complain that it will divert customers from Wenjie. The Zhijie R7 has taken away the M7's job. The selling points of the Xiangjie S9 and M9 overlap, and the competition is fierce. However, Thalys spent 2.5 billion to acquire the Wenjie trademark and bought a 10% stake in Yinwang. This shows that both parties want to deepen the cooperation, expand high-end production capacity, control the production rhythm, and connect to the Hongmeng ecosystem. Both the technology and the brand want to reap benefits.

The elders in the community said that this is like two guys opening a restaurant together. One has food and the other has cooking skills. They have to cooperate well to make the business big. In the future, if models under RMB 200,000 can also be equipped with urban NOA as standard, and domestic supply chains are used to lower prices of laser radar and high-power chips, Cyrus may be able to steal Volkswagen Toyota's market share and compete with Tesla FSD.

In this melee of new energy vehicles, the listing of Cyrus in Hong Kong is a turning point. Money can alleviate urgent needs and improve the brand, but the numbers on the books and the reality of the market are like winter frost, bitingly cold. Weak sales, surrounded by competing products, and high debt are all real problems. Lao Wang reminded that friends who want to buy a car should keep their eyes open and don’t listen to the hype from advertisements. Technology and service are the last word. Learn to read more and ask more questions, and don’t be fooled by temporary offers and gimmicks.

If ordinary people want to live a clear life in this situation, they must learn to avoid the pitfalls. Don't blindly rush into the "bells and whistles" of new models. Pay more attention to battery life, charging and after-sales, and don't let the high profits become a funnel for your wallet. After all, although the new energy vehicle market is lively, there are many pitfalls. How far it can go depends on real effort.