NIO's sales surged last quarter, and Li Bin's crisis will end with the acquisition of the JAC factory
Entry. Finally, the Azalea Group announced its results for the 2023 fiscal year, which also provided some positive for the company. Despite continuing to lose money, NIO has achieved some improvements, both in terms of deliveries and profit margins. In addition, NIO also announced an important merger and acquisition intention, planning to spend 3.5 billion yuan to buy the JAC plant. This is a positive sign that Li Bin intends to reform his business model, and he also wants to increase the company's revenue and stable profitability through the company's in-house manufacturing.
Azra Finance.
Azara released its third-quarter earnings report, with a net profit of 45$600 million, up 11% from the same period last year and down 25% from the same period last year. Operating earnings were 190$6.7 billion, up 47% year-over-year and 142% month-on-month. These figures show that Azera has made progress in increasing sales and improving margins.
However, the most worrying thing is that the average selling price is 31In the case of $4, the cuckoo has to lose 8$20,000 in sales. That is to say, if you want to make profits in a short period of time, you have to rely on subsidies and financial support.
Changes in supply and gross profit of Adara.
In the third quarter, Azera delivered a record 55,432 new models. The increase in sales is mainly due to the excellent performance of the ES6, and this car has already saved the Azera. In addition, Azera's gross profit increased by 11%. This shows what Azalea is doing to improve operational efficiency and has achieved some cost reductions.
However, the cuckoo is not yet profitable. In stark contrast, its competitor Ideal has done well in terms of delivery and revenue, and has been profitable for 4 consecutive months and has generated record net profits. This has raised questions and concerns about Dujuan's business model.
Adhara's business model and outlook.
Cuckoo's business model is based on grants and funding, which is risky in the current market environment. When the market becomes more competitive and subsidies are scarce, Dujuan needs to find a more solid and sustainable way to make profits.
Azera has done a lot of work to reduce expenses and increase overall profits. The company has cut back on research and development spending, cut back on marketing and general expenses, and is also laying off employees. All initiatives are aimed at improving the overall operational efficiency of the company and enabling the company to weather the storm.
In addition, he said that he would spend 33 billion yuan to buy the factory in JAC. This move will allow the cuckoo to be sold domestically, reduce manufacturing expenses, increase profits and stabilize the economy. This is a positive sign that he wants to change his business model in order to pursue sustainable growth.
However, in this process, there are also many crises and challenges. First of all, the company faces a growing number of rivals, including traditional car companies, as well as new forces like Huawei and Xiaomi. Secondly, in order to ensure the sustainable operation and development of the company, he must also deal with the financial aspects.
On the whole, although the Azalea Group has made achievements in the third quarter of this year, there are also many problems and challenges. By reducing costs, improving efficiency and conducting in-house manufacturing, it is expected to improve the company's financial standards and sustainable growth. We're going to see how the company does in 2024.