Scale, scale or scale

Author | Qin Zhangyong

In the past year, the share dispute was a matter of life and death. Even leading enterprises such as Tesla and BYD had to cut prices and fight hand in hand. The Matthew effect shattered the speed of light in the industry bubble.

But we should thank this price war.

Nowadays, the market no longer believes in beautiful stories, and begins to pay attention to who can make blood independently and who can have the advantages of scale. Only enterprises that have experienced the most intense artillery fire can exercise their strong vitality and create better products.

After ten years of development and continuous organizational changes throughout the year, Xpeng Motors’s accumulated energy began to be reflected in the financial report.

In the fourth quarter of 2023, Xpeng Motors ushered in a milestone result, delivering 60,000 units in a single season.Gross profit margin turned positive again, reaching 6.2%. In the first three quarters of last year, Tucki’s gross profit margin was negative, and in the fourth quarter, it rose by 8.9 percentage points from the previous month, and its total revenue reached 13.05 billion yuan, up 154% year-on-year and 53% from the previous month.

The most important thing is that Tucki was realized for the first time in 2023.Annual operating cash flow turned positive. By the end of last year, Xpeng Motors’s cash reserves reached 45.7 billion yuan, a net increase of 9.2 billion yuan from the previous month, and its positive free cash flow exceeded 6 billion yuan.

With these ammunition, Xpeng Motors’s thinking of solving problems is no longer limited, releasing the second brand, opening up a new sinking market, landing a big AI model, and of course, going international.

In 2023, Tucki began to quickly adjust its state and gradually climbed out of the trough.

01

More will "make money"

Gross profit margin began to turn positive, which is not a simple matter of increasing revenue and reducing expenditure. Behind it is the improvement of operating system efficiency and the gradual maturity of products and commercial capabilities, which is also the key for Tucki to cross the cycle and face the future.

Last April, it was a turning point in Xpeng Motors and was officially released.SEPA 2.0 boosting architectureThis is the only integrated aluminum die-casting and global 800V high-voltage SiC silicon carbide platform before and after mass production in China.

With this brand-new architecture, the development cycle of new cars in Tucki has been shortened by 20%, and the generalization rate of structural parts has reached 80%. The comprehensive efficiency of 800V XPOWER can be increased to 92%, surpassing 91.4% of American head brand new energy vehicles.

To sum up, reduce costs and increase efficiency.

Tucki G6 is the first strategic vehicle with a swing structure. With the advantage of platform-based research and development, the price war has been directly brought to a new dimension with a starting price of 209,900 yuan.

The 250,000-class new energy market is the most competitive price zone for car companies. Tesla, BYD and traditional giants are all desperately grabbing shares, battery costs are also ups and downs, and the public opinion environment is even more tragic. Without Tesla’s brand aura and the cost advantage of BYD’s self-made battery, it is difficult to control the cost in a short time.

The sales curve proves Tucki’s choice. After its listing in June last year, Tucki G6′ s delivery volume kept rising, successively setting a record of monthly sales exceeding 20,000, and winning the market sales champion of 200,000-250,000 grade pure electric SUV.

After the brand-new Tucki G9 went on the market, the sales volume rebounded rapidly, and the proportion of sales volume increased continuously in the brand structure. This has also helped Tucki raise the average price of bicycles,In the fourth quarter, the average price of bicycles reached 203,000 yuan, an increase of about 7,000 yuan compared with the third quarter..

The gross profit margin of automobiles reached 4.1% in the fourth quarter, compared with negative 6.1% in the third quarter of 2023.The chain increased by over 10 percentage points.

On the Q4 conference call, He Xiaopeng bluntly said that the total revenue in the fourth quarter increased month-on-month, mainly due to the rapid growth of sales of G6 and G9. With the help of platform-based R&D and scale effect, Tucki can effectively reduce the supply chain cost and manufacturing cost, and accelerate the realization of the goal of reducing BOM cost by 25% by the end of 2024.

In January this year, Tucki X9 was officially launched. As the most expensive model in Tucki, He Xiaopeng revealed that nearly 4,000 units have been delivered in two months, and it is expected that the sales volume in March and April will be greatly improved.

The income guidance given in the first quarter is 5.8-6 billion yuan. Combined with the sales guidance of 21-22,500 vehicles, it means that the average bicycle price will exceed 230,000, which is higher than that in the fourth quarter of last year. Obviously, the climb of X9 sales will inevitably increase Xiaopeng’s gross profit margin.

In this way, Xpeng Motors has also achieved it to a certain extent.Brand upward.

At the same time, with the continuous decline in the cost of lithium carbonate, including the large space for cost optimization brought by the internal organizational structure, the bicycle cost in Xpeng Motors is also declining. According to the financial report, the bicycle cost in Xpeng Motors decreased by about 10,000 yuan from the previous month to 191,000 yuan.

At this point, the route for Xpeng Motors’s gross profit to turn positive is very clear: diluting the cost with the advantage of platform, raising the selling price with the help of high-end models, and at the same time, carrying out internal structural adjustment, superimposing the natural law of reducing the cost of raw materials in the industry, and realizing positive cash flow.

02

Winning by scale

Turning the gross profit margin positive is only the beginning. How can a car company live well?

Scale, scale or scale.

Tesla’s ambition is to sell 20 million vehicles by 2030. Even if Weilai, who is holding high, is ready to launch a second brand "Ledao" to occupy a lower-priced market.

"We don’t use short-term and small-scale growth as a starting point to lay out the future."

He Xiaopeng bluntly said in the conference call that the next competition will not only depend on the short-term scale share, but also test whether the car companies will continue to lead in many dimensions such as high-quality and efficient scale, intelligence and internationalization.

Facing the future, Xpeng Motors has started the strategy of "group car-riding".

In the next three years, more than 10 brand-new models will be launched. Together with the global left and right rudder models and upgraded models, the total number of SOP models will reach nearly 30. This figure means that Xpeng Motors has got rid of the idea of start-ups.Began to develop towards all categories and globalization..

The first is a brand-new brand. Like Weilai, Tucki’s second brand is also ready to go. He Xiaopeng revealed that during the Beijing Auto Show next month, a brand-new brand for 100,000-150,000 will be officially launched, and it is committed to building the first AI smart car for young people. "This will be the most eye-catching explosion in the A-class pure electric market this year. New model."

This brand-new model will enter the C-end market first. Gu Hongdi, co-president of Xpeng Motors, said in the earnings conference call that MONA will contribute 10,000 sales every month, and such sales scale will be considered "very successful" internally.

Different from the market of more than 200,000, the new energy vehicles with 100,000-150,000 grades face greater difficulties. Companies such as Tesla and Huawei are trying to enter this market, but it is difficult to make a profit because of the high cost of batteries and smart driving systems. Not long ago, Yu Chengdong bluntly said that the cost of Huawei’s intelligent driving system is high. "Only more than 300,000 vehicles can use us to make a profit."

He Xiaopeng is also well aware of the difficulty of the market. He said that it is extremely difficult to make a good car with excellent performance in all aspects and high-level intelligent driving ability in this range, and to achieve profitability, which requires enterprises to have strong scale and systematic ability.

"Today, we are finally ready." In his view, the innovation of AI-driven smart car technology and architecture is no longer a medium-and long-term goal.AI-defined cars with autonomous driving as the core are now in progress..

At the scene of 1024 last year, Tucki revealed that the AI ? ? big model got on the bus, and now there is a clear timetable-the mass production of the AI ? ? smart driving big model got on the bus in the second quarter of this year.

This is still inseparable from the advantages of scale. At the beginning of this year, Tucki began to push XNGP to Max users in full, and the active penetration rate of users reached 83% in February. With the increase of XNGP usage, He Xiaopeng also set a KPI for the team:

I hope that XNGP’s travel experience in core areas, such as Beishangguangshen and Shenzhen, will be compared with Waymo’s Robotaxi in San Francisco.

What is certain is that with the brand-new sub-brand landing, the hardware cost of XNGP will be reduced with high probability. He Xiaopeng revealed that Xpeng Motors’s main brand will release a brand-new model in the second half of this year. "From this brand-new model, the hardware cost of XNGP has dropped by 50%."

In addition to the domestic market, Tucki also tried to replicate the advantages of scale abroad.

He Xiaopeng revealed that the expansion of overseas business has been greatly accelerated this year. In the second quarter, the international left-rudder version of G6 will be launched for the global market, and the right-rudder version of G6 will be launched in the second half of the year. In the future, we will enter Europe, Middle East, Southeast Asia and Commonwealth countries by cooperating with high-quality distributors.

03

Marketing+channel innovation

On the conference call, He Xiaopeng mentioned Wang Fengying the most frequently.

As an experienced automobile veteran, Wang Fengying’s entry into Tucki has brought about earth-shaking changes, not only a mature channel system, but also rich dealer resources. Wang Fengying is highly praised in Xpeng Motors, including He Xiaopeng.

In September last year, under the impetus of Wang Fengying, Tucki began to implement a channel reform plan called "Jupiter Plan", with the aim of eliminating inefficient direct stores and expanding the size of the stores of agent dealers. In addition to reducing costs, this innovative measure is moreLayout sales ability in advanceTo build a more efficient marketing channel system.

He Xiaopeng revealed that in 2023, a round of channel upgrading was completed, with over 130 stores eliminated at the end, and more than 160 excellent dealer partners were introduced, covering 40 new low-tier cities.

In 2024, while cultivating new stores, Tucki will accelerate the channel sinking. By the third quarter of this year, the total number of stores will increase to 600.

For the first time, He Xiaopeng responded positively to the rumor that "dealers are required to reserve inventory", saying that starting from the second quarter of this year, an innovative dealer cooperation model will be launched. By establishing short-term channel inventory for about half a month, the purpose is to speed up terminal delivery and fully activate the enthusiasm of dealers.

In fact, this adjustment in Tucki is not unusual in the automobile industry. It is an open secret that traditional car companies have pressed the dealers for inventory, and some good-looking sales figures are in many cases bought by dealers under pressure.

The inventory ratio of domestic car dealers will generally be around 2 months, and the inventory ratio of some economical family cars will even be higher. The purpose of doing so is also very simple, sales promotion.

In order to avoid the disadvantages of the traditional sales model of 4S stores, Xpeng Motors will strictly control the inventory level and the nationwide unified user purchase experience through systems and monitoring mechanisms.

In addition to the changes in dealer channels, the gameplay of marketing has also begun to adjust.

He Xiaopeng said that in 2024, a strong new marketing team will be established, paying more attention to the marketing of short videos, and reducing inefficient shopping, and upgrading from the original "car+internet" to "car+mobile internet".

For example, during the Spring Festival in Tucki, 20,000 users participated in the activity of soliciting video of car owner Spring Festival travel rush Zhijia, which also made the reputation of Tucki Zhijia spread from first-tier cities to third-and fourth-tier cities. From the recent month, the front-end planting data has increased by more than 100%.

In addition, Wang Fengying also put his own brand innovation strategy in Tucki. During the Great Wall period, Wang Fengying made Deerpika a champion in the market segment by reforming the sales model, and later gave birth to the Haval H6 with the concept of "urban SUV".

He Xiaopeng said that in terms of product planning, Xpeng Motors will insist on category innovation, because category innovation is the innovation with the greatest value, and the differentiation advantage of new categories is far greater than the "involution" of homogenized products. For example, Tucki X9 has created a new category compatible with 4-seater and 7-seater large cars. With the shape of MPV, it has largely cut off the medium and large SUV market.

In the past year, for Xpeng Motors, the external market environment, internal organizational structure, products and channels were all experiencing severe turbulence, but fortunately, Xpeng Motors stood the test.

Next, the wind and rain are still the same, the competition is still the same, and great uncertainty still hangs over every player’s head. Xpeng Motors, who has experienced artillery fire and wind and waves, has found the most suitable way for himself.

　　BEIJING, Nov. 8 (Sweet Dong Hanyang) A few days ago, a finless porpoise was floated in Dongting Lake, Yueyang, Hunan Province, with a 20-cm incision on its belly surface and two bricks falling from its tail with a rope. The staff decided that the finless porpoise was either killed and dumped.

　　In the spring of 2012, there was a shocking death of finless porpoises in Dongting Lake, and a total of 12 finless porpoises died.

　　The finless porpoise is known as the "natural smiling spirit". However, the data shows that as of July 2018, the number of finless porpoises is only about 1012, which is less than 60% of that of giant pandas. Now, another "spirit" has disappeared.

　　"70% of the world is covered by water, and our planet is a blue planet." Behind this well-known saying, more than 200,000 species of aquatic animals around the world continue to face survival crisis. Who is the chief culprit of the crisis?

Data map: finless porpoise.

　　Suspect number one: human

　　M.O.: Hunting, slaughtering or keeping in captivity

　　The 2009 documentary "Dolphin Bay" exposed the human who laid hands on dolphins to make money. It is reported that every dolphin caught can sell for up to $150,000.

　　However, the blood in Dolphin Bay "can’t wake people who pretend to sleep". In 2019, the Japanese government officially withdrew from the International Whaling Commission (IWC) and restarted the commercial whaling activities suspended for 31 years.

　　In September, 2019, fishermen’s fishing boats in Taiji Town, Wakayama set sail again. The hunt will last until April 2020.

　　Statistics show that during this time of year, fishermen in Taiji Town will kill 2,000 to 3,000 dolphins. However, scientists have said that dolphin meat is not excellent in taste and nutritional value, and even its mercury content is still high, which is not good for health.

　　The hunter’s hand extends not only to the dolphins.

　　In 2014, three men and women stole 10,375 eggs from the Mexican turtle reserve, which has long been listed as an endangered animal.

　　In 2018, a "whale prison" appeared in the Russian Far East, where 90 beluga whales and 11 killer whales were imprisoned, of which 13 beluga whales were under one year old. Because of human imprisonment, killer whales that could have lived to be 100 years old in nature, most of them can’t live to be 30 years old in captivity.

　　At present, the Russian prosecutor has filed a criminal case against the relevant personnel for "illegal fishing of aquatic biological resources", and the whales in the "whale prison" will be released in three batches.

　　In October 2019, the staff of the protection agency "Dolphin Project" also discovered two dolphins that had been kept in captivity for 15 years in Bali and were badly abused. Because dolphins excrete a lot, the swimming pool in which they are kept is like a "toilet bowl". In order to decontaminate, the hotel adds a lot of chlorine to the water.

　　Among them, the dolphin named Deva was obviously insane, and another dolphin, Johnny, was blind.

　　Fortunately, with the help of the staff of the Dolphin Project, they will regain their freedom and return to the sea.

　　Suspect number two: plastic

　　Modus operandi: Good at "camouflage" and easy to be eaten by animals.

　　In Sardinia, Italy, the body of a pregnant sperm whale was washed ashore. In its belly, plastic garbage weighing 22 kilograms was found.

　　Marianne, a dugong cub from online celebrity, Thailand, died of illness. Officials say it has a small amount of plastic garbage in its stomach.

　　There are nearly 30 undigested plastic bags and other plastic wastes in the stomach of the stranded whale carcass in Norway.

　　Plastic fibers have also been found in the stomachs of crabs in Thames, England. They may have accidentally eaten balloons and sanitary napkins … …

　　Plastic seems to be the terrible "number one killer" in the water. According to statistics, 90% of marine garbage found on the global coastline is related to plastic products. Bottles, straws and food packaging have become "stains" floating in the ocean.

　　Because most animals can’t tell plastic garbage from food, every year, 34% of leatherback turtles die by mistake and swallow plastic bags as jellyfish. And some fish are easily attracted by the smell of dimethyl sulfide emitted by plastic soaked for a long time, and mistakenly regard it as prey.

　　The allen macarthur Foundation of the United Kingdom has predicted that by 2050, the weight of plastic waste in the ocean will catch up with the weight of marine life. What is even more frightening is that plastics cannot be completely degraded in seawater.

　　Suspect number three: noise

　　M.O.: Interfering with the echolocation system, causing a "suicide wave" of whales.

　　On December 8, 2014, six or seven sperm whales lay motionless on the shore of Paarala Sea Beach in York Peninsula, South Australia.

　　The locals said, "I think it’s too late to save them. At 8 o’clock in the morning, one of them was still wagging its tail, but now it’s not moving … …”

　　According to reports, these whales were disturbed by sonar and disoriented before being washed ashore.

　　However, this is not a case. Noise has become a major suspect in killing them.

　　In 2009, nine 12-meter-long sperm whales ran aground on the beach in Puglia, Italy, and five of them died, which may be caused by the noise of military exercises or the exploration of seabed deposits.

　　In July 2002, 66 pilot whales ran aground in Cape Cod Snow, Massachusetts, USA, for the same reason as sonar experiments.

　　In May 1996, 14 swordsmen whales ran aground on the Greek coast, which is believed to be related to a NATO exercise of the US military … …

　　Coled, deputy director of the French La Rochelle Marine Mammal Research Center, once pointed out that the acoustic waves emitted by the sonar and echo sounders of warships and the noise of underwater explosions will cause the echo positioning system of whales to be disordered, which is the main reason why whales collectively rushed to the beach.

　　Animals can’t speak, who will speak for them?

　　Who is chasing these natural "spirits" and creating one tragedy after another?

　　In order to protect human partners, many countries and regions have been acting.

　　China, Britain, the Netherlands and other countries and regions have successively issued plastic restrictions;

　　Canada has specially set up a coastal guard to protect the marine environment;

　　The United Nations has adopted relevant resolutions, proposing that the underwater noise generated by human activities … …

　　Data Map: A poster created by Christian Waters. On the poster, you can see that the turtle’s shell is hollowed out, its body is full of garbage, the sea lion is suffocated by a plastic garbage bag, and the sea fish suffocates after swallowing fine particles. Image source: WWF website.

　　Documentary director rob stewart has witnessed the bloody scene of illegal whaling, and has since stopped aiming at the dreamy underwater world. Many of the information he photographed on the impact of illegal shark fin trading, after being made public, directly promoted the process of the Costa Rican government’s introduction of relevant laws.

　　Christian Waters, an advertising designer, saw that there was a lot of garbage left on the beautiful beach, so he began to study the influence of marine garbage on animals, and finally created a public service advertisement, which was promoted by the World Wide Fund for Nature (WWF).

　　Waters said that animals can’t speak, so humans must speak for them.

　　— — Protecting the blue planet is also a natural "elf" peace and harmony. Do you want to join us?

Xinhua News Agency, London, November 1st (Reporter Zhang Wei) Arsenal and Manchester United both lost to opponents from the same Premier League on the 1st, and missed the quarterfinals of the English League Cup.

Arsenal played against West Ham United in London on the same day, and fell behind in the first half because of White’s careless own goal. "Arsenal" coach arteta bluntly said after the game that the ball directly influenced the development direction of the game. Since then, Arsenal, which has an absolute advantage in possession of the ball, has never been able to make a breakthrough. On the contrary, Kaddos added another point five minutes after the West Ham United Easy Side, extending the lead to 2-0. In the 60th minute, Bowen hit a long-range shot outside the penalty area. It wasn’t until the final stoppage time that Arsenal were pulled back by substitute Odegard, and the score was fixed at 1-3.

On November 1st, Arsenal coach Arteta looked depressed after the game. Xinhua News Agency/Reuters

Manchester United, who just suffered a home defeat in the Manchester derby last weekend, continued to sink at Old Trafford. Against Newcastle United, they conceded two goals in a row in the first half. In the 60th minute, Willock got rid of the defense with the ball in the frontcourt and hit the door to help the Magpie achieve a 3-0 victory.

Newcastle, who lost to the "Red Devils" in the Carling Cup final last season, took revenge, and their quarter-final opponent will be Chelsea who beat Blackburn 2-0 on the same day.

In addition, Liverpool beat Bournemouth 2-1 with goals from Gakpo and Nunez, and the quarterfinals will face West Ham United.

China news agency, Beijing, December 14 (Reporter Ying Ni) Lu Yingchuan, Vice Minister of Culture and Tourism of China, revealed on the 14th that in the first three quarters of this year, there were 342,000 commercial performances in China, with a box office income of 31.54 billion yuan (RMB, the same below) and 111 million people attending performances, which was a significant increase over the same period in 2019.

The Press Office of the State Council, China held a press conference on "Accelerating the Construction of a Cultural Power and Promoting the High-quality Development of Culture and Tourism" in Beijing on the 14th.

Lu Yingchuan introduced that the Ministry of Culture and Tourism has strengthened the guidance and support of stage art and art creation, implemented a series of art creation projects in the new era, and organized the exhibition of outstanding plays of stage art, fine art exhibitions and other activities. In the first 11 months of this year, the Ministry of Culture and Tourism hosted 27 exhibitions, with 900,000 offline audiences and over 1.8 billion online viewers. A number of stage art works that show Chinese aesthetic style and are full of distinctive flavor of the times, such as dance drama Wing Chun, Cavalry, Yue Opera Xinlongmen Inn, and national opera Daughter of the Party, have been generally welcomed and praised.

The Ministry of Culture and Tourism promotes the improvement and efficiency of the urban and rural public cultural service system, builds a new public cultural space, develops digital public cultural services, innovatively implements cultural projects that benefit the people, and holds mass cultural activities such as "Village Evening" and square dance performances. By improving cultural and economic policies, implementing the strategy of driving major cultural industry projects, actively cultivating new formats and models, launching a series of consumption promotion activities, and carrying out special rectification such as performance ticketing and script entertainment, the cultural industry has achieved rapid growth. In the first three quarters of this year, there were 342,000 commercial performances nationwide, with a box office income of 31.54 billion yuan and 111 million audience, up by 121.0%, 84.2% and 188.5% respectively over the same period in 2019.

At the same time, the tourism industry has accelerated its recovery this year. Du Jiang, Vice Minister of the Ministry of Culture and Tourism, bluntly said at the press conference that "the tourism market this year can indeed be described as hot". He revealed that in the first three quarters of this year, domestic tourism in China reached 3.67 billion person-times, and tourism revenue reached 3.7 trillion yuan, up 75% and 114% respectively. The substantial increase in residents’ travel has not only promoted the expansion of related consumption, but also promoted economic recovery.

He said that the Ministry of Culture and Tourism will further promote the deep integration of culture and tourism, cultivate new consumption formats and new models, and innovate and upgrade music festivals, concerts and other products. Promote the healthy development of new formats such as script entertainment and tourism performing arts, and promote the integration of food, performance, sports, health care, Chinese medicine and other fields with tourism. (End)

Analysis of industrial chain, market demand potential and enterprise layout of domestic smart speaker industry in 2022 [Figure]

Smart speaker, the product of a speaker upgrade, is a tool for home consumers to surf the Internet by voice, such as ordering songs, shopping online, or knowing the weather forecast. It can also control smart home devices, such as opening curtains, setting the refrigerator temperature, warming up the water heater in advance, etc.

Basic functions of intelligent speakers

Source: Collation of Common Research Network.

Intelligent speaker industry chain includes traditional acoustic-related OEM/ODM suppliers, chip suppliers, voice technology service providers, content providers and channels.

Intelligent speaker industry chain

Source: Collation of Common Research Network.

In 2019, China’s smart speaker market experienced explosive development, with the shipment of smart speakers reaching 45.89 million units, up by 109.7% year-on-year. In 2020, affected by the Covid-19 pandemic, the sales volume of smart speakers reached 36.76 million units, with a cumulative decrease of 8.6%. In 2021, the market shipment of smart speakers contracted by 2.50% year-on-year, dropping slightly to 35.841 million units.

2018-2021 China Smart Speaker Market Shipment Trend

Source: Collation of Common Research Network.

In 2021, China’s smart speaker market was 7.885 billion yuan, up by 14.99% year-on-year. With the continuous integration and improvement of intelligent speaker artificial intelligence technology, the potential of smart speaker consumption market in China will be released in the future, and the industry is expected to usher in rapid growth.

2018-2021 China Smart Speaker Market Scale Trend

Source: Collation of Common Research Network.

At present, the main functions of smart speakers in China are voice interaction, content service and home control. Voice interaction is a voice interaction technology based on voice recognition and semantic understanding, which provides a more natural man-machine interaction mode. Content service and life service are streaming media resources such as high-quality music and audiobooks, and third-party service resources such as take-out and taxi service. Home control is connected to the cloud through networking, becoming a home control center and interconnected with other smart home products. With the development of voice interaction technology, smart speaker products can not only provide content entertainment services and life services, but also connect to smart homes, realize scene intelligent control, and become the control center of smart homes. In the future, the Internet of Things will take voice as its population, resulting in a new business model.

Domestic layout smart speaker manufacturers can be divided into five categories.

Source: Collation of Common Research Network.

What is the market prospect of smart speaker industry? The 2023-2029 China Smart Speaker Market Survey and Investment Strategy Report published by Gongwang has analyzed in detail the relevant definitions of smart speaker industry, the global smart speaker industry market development status, the development environment of smart speaker industry in China, the operation of smart speaker industry in China, the monitoring of the operation data of smart speaker industry in China, the market structure of smart speaker in China, the demand characteristics and trends of smart speaker industry in China, China smart speaker industry regional market situation, China smart speaker industry competition, China smart speaker industry development prospect analysis and forecast, China smart speaker industry development strategy and investment suggestions, etc., to help enterprises and investors understand the smart speaker industry market investment value. If you want to have a systematic understanding of the smart speaker industry or invest in the smart speaker industry, this report is your indispensable and important tool.

Zhitong Finance APP News, Seventh Avenue (00797) issued an announcement that on March 15, 2022, the company indirectly wholly wholly -owned subsidiary Shanghai Ling Su and the lessor Shanghai Yuncheng Financial Leasing shall establish a financial leasing agreement. RMB 150 million sells rental assets to the lessor, and the lessor must rent the lease asset from Shanghai Ling Su at 48 months.

It is reported that rental assets include 2790 hosts, 9,800 graphics cards and 150 servers.

According to the announcement, since the cloud computing business began in April 2021, the Group has purchased various models of graphics cards, computer hosts, servers and other cloud computing accessories, so that the group can provide cloud computing services and create value for its shareholders.

The company believes that the financial leasing arrangement is the group’s additional liquidity, and the financing cost is fair and reasonable. The group can continue to use leased assets for existing cloud business, which is beneficial to the company and complies with the overall interests of its shareholders. Due to the international financial reporting standards, the transfer of financial leasing arrangements that have not actual asset value will not generate any income or losses in its comprehensive financial statements. The expected transfer agreement will be used to supplement liquidity for the group’s operations, including but not limited to the development and operation of the game business and the expansion of cloud computing business.