Weilai's quarterly sales volume of 3.1 billion to buy the JAC base, Li Bin's crisis was lifted
A brief description of Azure's financials.
Azalea released its third-quarter 2023 earnings report on December 5. Despite the fierce competition in the new energy vehicle market, Dujuan has achieved some positive results. In the last quarter, deliveries of Azalea continued to grow, bringing more revenue to the brand. However, compared to some of its competitors, the cuckoo is still in the red. In the third quarter, the cuckoos had a net loss of 45600 million yuan, or 8 per car sold20,000 yuan. Despite the improvement in gross margin, that doesn't change the fact that Azera is losing money. However, Azera's deliveries returned to record levels in the third quarter, which is expected to bring more opportunities for Azera.
Deliveries hit an all-time high, and Aso's turning point was at the top of its game
Azalea Motors has seen a decline in deliveries over the past two quarters, but delivered 55,432 vehicles in the third quarter of 2023, the highest quarterly delivery on record. This achievement was partly due to the strong performance of the new Dujuan ES6. The increase in deliveries improved Azalea's gross margin to 11%, up from 62% has almost doubled. However, Azalea Motors has yet to record a profit. By comparison, Li Auto delivered more than 50,000 vehicles in the first quarter of this year and turned a profit, illustrating the gap in Azalea's ability to improve profitability. Azalea needs to continue to optimize and control costs to improve profitability.
Layoffs and cost-cutting, rollouts"azure "Recovery mode.
Faced with losses, Cuckoo began to take self-help measures. Recently, Li Bin, the founder of Dujuan, published a letter to all employees, announcing that he would lay off about 10% of his workforce by the end of November. Such layoffs are not small for the company, but Du Juan believes that by laying off employees and reducing costs, the company's overall operational efficiency can be improved. At the same time, Azalea also cut R&D expenses and controlled the growth rate of sales and administrative expenses. These measures help to reduce the company's operating costs and improve the efficiency of capital use. However, layoffs have also had an impact on the employment prospects of those who have been laid off, who will not find it easy to find suitable jobs.
The break with JAC is both an opportunity and a risk.
NIO and JAC have been working together for a long time, but recently there have been rumors that JAC may break with NIO and start a partnership with Huawei. On December 1, JAC announced that it will sign a new energy intelligent vehicle cooperation agreement with Huawei, and the two parties will carry out comprehensive cooperation in various fields. Meanwhile, NIO announced on December 5 that it had signed an agreement with JAC to acquire two of JAC's production bases and assets. This has led to speculation about the restructuring of the partnership between NIO and JAC.
From a risk perspective, Azalea's acquisition of JAC's production base will increase Azalea's capital expenditure, putting pressure on its cash flow. In addition, being directly involved in automotive production requires Cuckoo to adapt to new roles and management challenges. However, for Dujuan, having its own production line can also improve execution, without the need to negotiate and share profits with OEMs, which will enhance Dujuan's autonomy and lead to better performance.
Overall, 2023 has been a big year for Cuckoo, which has taken some important steps to increase deliveries and optimize costs, despite still facing losses. Azalea now faces both opportunities and risks and must continue to strive to optimize profitability and control costs while remaining competitive in the market. We'll be waiting to see what Azalea achieves in 2024.