2.4% off the transfer of the trademark, etc! What is Huawei playing in the next game？

　　Zhang Xingwang CSI Taurus　

　　On the evening of July 3rd, Celeste issued a supplementary announcement on the purchase of assets, saying that Celeste Automobile, a holding subsidiary, plans to acquire the assets of Huawei’s Jiejie trademark and other targets for 2.5 billion yuan. After evaluation, the market value of the underlying assets is 10.233 billion yuan. In other words, in terms of valuation, it is equivalent to Huawei selling the underlying assets such as the border trademark to Cyrus at a discount of about 2.4%.　

　　Analysts believe that Wen Jie is a brand supported by Huawei, and this brand transfer shows Huawei’s sincerity. Huawei has repeatedly publicly stated that it will not build cars and sell a series of trademarks, which is Huawei’s strategic business policy, that is, to be a supplier of incremental parts for automobiles. At the same time, Huawei set up a company this year, focusing on the intelligent driving system and incremental parts business of intelligent networked vehicles. Recently, Huawei transferred trademarks such as Wen Jie, Xiang Jie and Zhi Jie to Zhixuan car partners in order to dispel the concerns of car partners about Huawei’s possible car construction.　　

　　Definitely don’t build a car　　

　　Wenjie is an automobile brand launched by Huawei and Celes by adopting the smart car selection model. This model is a cooperative model in which Huawei deeply participates in the definition, design, research and development, sales and other links. The two sides launched the M5 in December 2021 and the M7 in July 2022, but the sales were tepid. Until September 2023, after the launch of the new M7, the sales were strong, which made Huawei’s smart car selection model "out of the circle". Since then, the smart car selection mode has been upgraded to HarmonyOS Zhixing.　

　　In the first half of this year, HarmonyOS Zhixing delivered a total of 194,207 vehicles, ranking first in China’s new power brand sales. From the perspective of the industry, in June 2024, the sales volume of the industry exceeded 42,000. The new M7 delivered 18,493 vehicles in June, and the cumulative sales in the first half of the year exceeded 110,000 vehicles, ranking first in China’s new power model and second in luxury model. The sales volume of M9 reached a new high. In June, it delivered 17,241 vehicles, with a total of over 100,000 vehicles, ranking first in domestic sales of vehicles with a price of over 500,000 yuan.　

　　Then, why does Huawei sell related trademarks at the high-light moment of the brand? Pan Helin, a member of the Committee of Experts on Information and Communication Economy of the Ministry of Industry and Information Technology, told the reporter of china securities journal CSI Taurus that Huawei’s goal is very clear, and it has repeatedly stressed that it is to practice this strategic management policy by not making cars and selling trademarks. In the automotive field in the future, Huawei will focus on intelligent solutions.　

　　On March 31, 2023, Xu Zhijun, the rotating chairman of Huawei, made it clear: "Huawei didn’t build a car, nor did it have any brand of car."　

　　Pan Helin believes that Huawei’s transfer of the brand is to prevent the car dealers and Huawei brands from being fully bound. Analysts said, "The brand influence of Wenjie series is more than 2.5 billion yuan. This brand transfer shows Huawei’s sincerity."　

　　On the evening of July 3, Cyrus announced that the market value of the underlying assets such as the border trademark was 10.233 billion yuan after evaluation.　　

　　Clarify the boundary of smart car selection　　

　　Huawei established BU, a smart car solution, in May 2019. Huawei’s 2023 annual report shows that the company has unswervingly and continuously increased its R&D investment. Since the establishment of BU, a smart car solution, the accumulated R&D investment has exceeded 30 billion yuan.　

　　It is understood that Huawei cooperates with car companies in three modes: parts supply mode, solution mode and intelligent car selection. Among them, the car companies that cooperate with the intelligent car selection model are Cyrus, Chery, BAIC and JAC. This is the most in-depth mode of cooperation with Huawei among the three modes.　

　　Because Sailis is the first partner of the smart car selection model, and the series launched by both parties are selling well, Sailis has received high attention. On June 18th, the market value of Cyrus soared to 151.5 billion yuan, exceeding the ideal, ranking first in the market value of domestic new force car companies.　

　　Will Huawei’s cooperation with Cyrus be affected after it sells trademarks such as Wen Jie? On the evening of July 2, Huawei responded to the reporter’s statement that after Huawei transferred a series of trademarks such as Wen Jie to Celeste, it would continue to support Celeste to build and sell Wen Jie. Huawei has always insisted on not building cars, but using the leading intelligent networked car technology to continue to help car companies build and sell good cars.　

　　According to the reporter’s understanding, the current cooperation mode between Huawei and Cyrus is not affected, and the two sides also signed the Agreement on Further Deepening Joint Business Cooperation.　

　　In fact, Huawei not only transferred a series of trademarks such as Wenjie, but before that, Huawei also transferred trademarks such as Xiangjie and Zhijie to relevant smart car selection partners.　

　　In May 2024, Tianyancha showed that Huawei transferred its registered trademark of "Enjoy the World" to Beijing New Energy Automobile Co., Ltd. The trademark was applied by Huawei in May 2023 and registered in November. At the beginning of June, 2024, Tianyancha showed that Huawei transferred two registered "Zhijie" trademarks of transportation tools to Chery Automobile Co., Ltd.　

　　An auto industry veteran told reporters that the smart car selection model is deeply bound to Huawei, and Huawei leads the sales. Consumers buy brand cars such as Wenjie, Zhijie or the upcoming enjoyment world, mainly because consumers recognize Huawei brands and technologies.　

　　Pan Helin believes that since Huawei is a supplier, it can’t favor one over the other. Its transfer of series trademarks and equal treatment of smart car partners are conducive to determining Huawei’s role as a supplier of automotive incremental parts.　

　　Some analysts said that after the trademark transfer, the boundary of Huawei’s HarmonyOS Zhixing/Zhixuan model became clearer, and Huawei further indicated that it would not build cars, but use its own advantages to help car companies build and sell good cars. Huawei’s cooperation with other smart partners will not be affected.　　

　　Create an electric intelligent open platform　　

　　In November 2023, Huawei and Changan Automobile signed the Memorandum of Investment Cooperation. According to the memorandum, Huawei intends to integrate the core technologies and resources of smart car solutions business into the new company, and Changan Automobile and related parties will be interested in investing in the company. At that time, a person familiar with the matter told reporters that Huawei hoped to build an electric intelligent open platform with the participation of the automobile industry.　

　　Huawei hopes that more auto industry partners will invest in this new company. In November 2023, Yu Chengdong, managing director of Huawei and chairman of BU, a smart car solution, publicly stated that Huawei had sent an invitation to invest in a new company to its smart car model partners and hoped that FAW would join.　

　　In January this year, Shenzhen Yinwang Intelligent Technology Co., Ltd. was established, which is wholly owned by Huawei and is a new company established by Huawei Car BU.　

　　On July 4, the reporter learned that in order to further deepen the all-round cooperation with Huawei, Sailis is actively planning to participate in strategic investment and cooperation.　

　　When Huawei signed a memorandum with Changan Automobile, Yu Chengdong said, "We always think that China needs to build an electric intelligent open platform with the participation of the automobile industry, an open platform with a’ locomotive’. We deepen cooperation with Changan, and at the same time, we will work together with more strategic partner car companies to continuously explore new models of openness and win-win, and jointly seize the opportunity of electrification and intelligent transformation of the automobile industry. "