On May 19, there were media reports that Huawei was trying to acquire the electric vehicle division of local automakers, including seeking to control the electric vehicle brand of BAIC Blue Valley New Energy Technology-Arcfox ARCFOX. And just the day before, Huawei just announced new personnel adjustments and appointed Yu Chengdong as the CEO of BU, a smart car solution. Therefore, as soon as the news of Huawei’s stake in BAIC Jihu came out, the outside world was speculating whether this was the first “fire” after Yu Chengdong took office. However, Huawei quickly refuted the rumors and said there was no such incident. On May 24, Huawei issued a “Statement on Huawei Not Building Cars” (hereinafter referred to as the “Statement”) stating, “The company spokesperson has repeatedly clarified the false rumors about Huawei building cars. Today, we To reiterate: Huawei does not build cars. This long-term strategy has been made clear in 2018, and nothing has changed.” Data source: Dongcai Choice, China Automobile Association, IDC Yang Jing drawing Huawei quickly refutes rumors Huawei stated in the “Statement”: “We believe that what the industry needs is not Huawei branded cars, but Huawei’s accumulated ICT technology capabilities for more than 30 years to help car companies build future-oriented cars, that is, to provide car companies with Intelligent networked auto parts based on Huawei’s ICT capabilities.” In fact, Huawei has repeatedly stated its position in public on the issue of “Huawei does not build cars.” At the Huawei 2020 performance conference on March 31 this year, Hu Hou, then Huawei’s rotating chairman, said in response to a reporter’s question that Huawei is positioned as a supplier of smart auto parts in the Internet of Vehicles, car cloud, smart driving and other fields. To make competitive products, the goal is to help auto companies “build good” cars and build “good cars.” Subsequently, at the Huawei Global Analyst Conference on April 12, Huawei’s rotating chairman Xu Zhijun reiterated that “Huawei does not build cars.” He said frankly that Huawei had talked with many large automakers in Japan, Germany, and China before, and found that what they needed was not a Huawei brand car, but Huawei’s ICT software capabilities, which could help them build and sell good cars. At that time, Xu Zhijun revealed that Huawei had selected three car companies, BAIC, Changan and Guangzhou Automobile, as strategic partners to support them in building their respective sub-brands. Cars that use Huawei’s autonomous driving solution can only use the HI logo with Huawei’s authorization, which represents Huawei Inside. In terms of car sales, Huawei chose to cooperate with Jinconcelis, a subsidiary of Chongqing Xiaokang Group. Huawei stated in the “Statement” that in this cooperation, Huawei has become a supplier of electric components for Cyrus SF5 and HiCar cockpit components. At the same time, in order to solve the problem of survival of Huawei authorized mobile phone retail stores in the case of a significant reduction in Huawei mobile phones, Huawei is supporting some retail stores to sell this car, and retail stores can obtain corresponding revenue. Xu Zhijun said bluntly that the automobile industry is one of the most disruptive industries in the next decade, and it is also the business that Huawei currently values ​​most. “There are 30 million vehicles in China each year, and there will be more in the future. Even if we only do the Chinese market, it is enough to get an average income of 10,000 yuan from each vehicle each year. Therefore, after media reports on May 19 that Huawei was trying to acquire the electric vehicle division of a local automaker, including seeking to control the electric vehicle brand of BAIC Blue Valley New Energy Technology-Arcfox ARCFOX, Huawei quickly refuted the rumors, saying that there was no such thing. thing. Huawei’s auto concept stocks fell across the board After Xu Zhijun announced that Huawei would cooperate with BAIC, Changan and GAC, the stock prices of BAIC Blue Valley, Changan Automobile and GAC Group rose sharply. Among them, the cooperation between Huawei and BAIC was the first to be exposed. On April 6, the official Weibo of Huawei Smart Car Solutions released a dynamic, showing that Huawei and Jihu Automobile will release a new generation of smart luxury pure electric cars on April 17th-Alpha S, the official Weibo of Jihu Automobile Simultaneously published an article called “See you in Shanghai. It is understood that the Polar Fox Alpha S Huawei HI version is the first luxury smart electric car with the HI logo. It has the highest level of Huawei’s automatic driving level. It is equipped with a super central supercomputing ADCSC, 3 lidars and many sensors. On the second day (April 18) that Huawei cooperated with BAIC to launch the Alpha S Huawei HI version, Huawei released the “Octopus” autonomous driving platform and other car and machine products. On April 21, Huawei further announced its participation in the downstream sales of Cyrus. Cyrus Huawei Smart Selection SF5 will be stationed in the Huawei Mall and the Cyrus Experience Center. In addition, on April 23, Cyrus announced that Huawei’s smart selection SF5 has been sold for two days and orders have exceeded 3,000 units. Huawei’s intensive actions in the field of smart cars have almost led the hot spots of the entire automotive industry during this period. With the blessing of Huawei Automotive Concept, the stock prices of BAIC Blue Valley, Changan Automobile, Guangzhou Automobile Group, and Xiaokang have soared. At that time, there were rumors that Huawei might participate in BAIC Blue Valley or Xiaokang shares in the future. The capital market has been enthusiastic. Up to now, the share prices of BAIC Blue Valley and Xiaokang shares have doubled compared with the beginning of April. On May 24, Huawei’s “Statement” broke the speculation of the outside world. Emphasize that Huawei has not invested in any car companies so far. In the future, it will not invest in any auto companies, nor will it hold or participate in shares. Huawei said that all future talks about Huawei building cars or participating in the auto manufacturing industry are rumours and should not be trusted. As soon as this “Statement” came out, the “Huawei Auto” concept stocks fell across the board, and the decline further expanded in the afternoon. As of the close of May 24, BAIC Blue Valley and Changan Automobile have dropped their limits, while GAC Group and Dongfeng Motor have fallen by more than 4%. Daily economic news

On May 24, Huawei issued the “Statement Regarding Huawei Not Building Cars” stating that the company spokesperson has repeatedly clarified the false rumors about Huawei building cars. Today, we reiterate that Huawei does not build cars. This long-term strategy was clear in 2018, and nothing has changed. Huawei also stated that it will not participate in investing in any car companies, and BAIC (600166), Changan (000625) and Guangzhou Automobile Group (601238) will only serve as strategic partners and use Huawei’s solutions to help them create future-oriented car. The cooperation with Jinconcelis is also to solve the current survival problem of Huawei authorized mobile phone retail stores. On the 24th, affected by the “Huawei does not build cars” statement, Huawei’s automotive concept stocks fell across the board. Changan Automobile and BAIC Blue Valley fell by the limit. Xiaokang shares (601127.SH) plummeted by more than six points, and Guangzhou Automobile Group fell by as much as six points. 4.32%. Huawei denies building cars again In the “Statement on Huawei Not Building Cars,” Huawei said: We believe that what the industry needs is not Huawei brand cars, but Huawei’s accumulated ICT technology capabilities over 30 years to help automakers build future-oriented cars. , That is, to provide car companies with intelligent networked auto parts based on Huawei’s ICT capabilities. So far, we have not invested in any car companies. In the future, it will not invest in any auto companies, nor will it hold or participate in shares. In the future, all discussions that Huawei builds cars or participates in the auto manufacturing industry are rumours and don’t be credulous. We have chosen BAIC, Changan and Guangzhou Automobile as our strategic partners to support them in building their respective sub-brands. Cars that use Huawei’s autonomous driving solution can only use the HI logo with Huawei’s authorization, which represents Huawei Inside. Regarding the cooperation between Huawei and Jincon Sailus, a subsidiary of Chongqing Xiaokang Group, Huawei is a supplier of electric components for Celes SF5 and HiCar cockpit components. At the same time, in order to solve the problem of survival of Huawei authorized mobile phone retail stores in the situation where Huawei’s mobile phones are greatly reduced, Huawei is supporting some retail stores to sell this car, and retail stores can obtain corresponding benefits. It can be seen from Huawei’s statement that Huawei’s positioning of itself has not changed, and that it is a provider of automotive intelligent network components. Huawei will not directly enter the vehicle manufacturing industry, and rumors about “Huawei making cars” in the market are all false. Huawei said that it can help car companies build good cars. Of course, Huawei has the strength to fulfill its promises. Huawei has launched a comprehensive layout around the three core areas of “smart driving, smart cabin, and three-electricity”. On April 18, at the Huawei HI new product launch conference, Wang Jun, President of Huawei Smart Car Solutions BU, said that Huawei will release five new products, covering smart cockpits, computing platforms, radars, autonomous driving open platforms and thermal management systems. “From the perspective of business portfolio and technical solutions, Huawei’s full-stack self-developed almost all core businesses of smart cars, including hardware and software. Tesla’s advantage is the massive trip data of global users, Baidu’s advantage is algorithms, and Huawei’s However, the advantages of the company are all-round, and it can open up the upstream and downstream of the industrial chain. This kind of strength is not possessed by new car-building forces or cross-border car-building technology companies.” Industry insiders analyzed and said to reporters. “Catch up” with Huawei’s car companies Although Huawei has always stated that it will not build cars, rumors about Huawei building cars in the market have been uninterrupted. It was reported on March 9 that Huawei and GAC Group’s new energy vehicle company GAC Aian had begun to jointly develop the next generation of smart electric vehicles. Both parties invested in R&D teams of more than 100 people. After the news was released, on the same day, GAC Group’s AH shares soared collectively, with A shares rising 6.39% and H shares rising 4.26%. At the end of April, there was news that Huawei was negotiating with Xiaokang shares to acquire a controlling stake in Chongqing Jinkang New Energy Automobile, in order to produce smart cars with the Huawei brand. Subsequently, Shen Wei, the secretary of the board of Xiaokang shares, said that the cooperation with Huawei was only in business, and he clearly denied that Huawei will control or participate in Jinkang. And Huawei also said that “there is no such thing.” But even denying it will not affect the performance of Xiaokang shares in the capital market. The share price of Xiaokang shares has risen from around 23 yuan in early April to 66.54 yuan on May 18, which has soared nearly three times. Since the new energy vehicle Cyrus SF5 under Xiaokang shares entered the Huawei Mall on April 19, only one week, the order of Cyrus SF5 reached 6,000. In sharp contrast, the sales volume of SF5 in 2020 is only 732 units. SF5’s weekly sales volume is eight times that of last year’s full-year orders. On the eve of the Shanghai Auto Show on April 17, Huawei and BAIC New Energy Jihu released the first smart car jointly created-Alpha S, officially called the “global new benchmark for autonomous driving.” Since then, BAIC Blue Valley’s share price has risen from about 12 yuan in mid-April to a peak of more than 19 yuan. At the Shanghai Auto Show on April 20, Changan Automobile’s chairman Zhu Huarong revealed that he has teamed up with CATL and Huawei to create a smart electric networked vehicle platform (ie CHN). The plan for high-end smart electric vehicles is on track, and a new high-end brand name is about to come. Announced. On May 20, Changan Automobile issued an announcement to formally rename its holding subsidiary Changan Weilai New Energy Automobile Technology Co., Ltd. to Avita Technology Co., Ltd., and jointly create autonomous and controllable intelligent electric vehicles with Changan Automobile, Huawei and CATL The connected car platform (CHN) creates a rich series of smart car products. On May 21, the share price of Changan Automobile rose 8.46% to close at 25 yuan per share. In the past 40 trading days, the share price of Changan Automobile rose 76%. Although in this process, Huawei has not formally stated its position to build cars, news about Huawei’s participation in car building has been spread out one after another, which has continuously aroused the enthusiasm of the market. As long as car companies have a relationship with Huawei, the market will definitely buy it, and it will have the most direct manifestation in the stock price. And this time Huawei completely denies building a car, which can be regarded as breaking the market’s thinking about Huawei building a car. Huawei’s 2020 annual report shows that its growth has slowed sharply, with annual revenue of 891.4 billion yuan, a year-on-year increase of only 3.8%. In the previous three years, Huawei has achieved a year-on-year growth of about 19%. On April 28, Huawei announced its operating results for the first quarter of 2021. Due to the sales of Honor and the decline in mobile phone sales, operating income fell 16.9% year-on-year to 150.57 billion yuan. Huawei’s overall revenue is expected to face greater pressure in 2021. “The automotive business may be the focus of Huawei’s efforts in the next few years. Huawei needs to find new profit growth points. At the moment when smart cars are in the air, with Huawei’s technical strength, they choose to help automakers build good cars instead of their own. It is undoubtedly a safe and wise choice to build a car in person.” said the industry insider. Editor: Zhai Yanan Editor: Wang Dayong

Economic Observer Network reporter Zhou Ju Huawei once again issued a statement, hoping people believe that they really have no intention of building a car. On May 24, on the Toutiao creator platform, Huawei Group’s official account issued a “Statement on Huawei’s Not Building Cars”, reiterating that Huawei does not build cars, nor will it invest, control, or participate in any car companies, and emphasized that, The long-term strategy of “Huawei does not build cars” has been made clear in 2018 without any changes. “So far, we have not invested in any car companies. In the future, we will not invest in any car companies, let alone holding or participating in shares. From now on, all discussions that Huawei builds cars or participates in the auto manufacturing industry are rumors. Don’t be credulous. “Huawei said in the “Statement” that the release of the statement is considered to be a response to the recent recurring rumors about its car building. According to incomplete statistics from a reporter from the Economic Observer Network, this is at least the seventh time that Huawei has officially announced or stated that it will not build a car in the past three years. After the announcement of the “no-car statement”, Huawei’s auto concept stocks fell. As of today’s close, half of the 32 concept stocks have fallen. Among them, BAIC Blue Valley and Changan Automobile dropped their stops. BAIC Blue Valley closed at 17 yuan per share, down 10.1%; Changan Automobile closed at 22.5 yuan per share, down 10%. In addition, the shares of Xiaokang and Guangzhou Automobile Group, which also have a cooperative relationship with China, also fell 6% and 4.3% respectively. Prior to this, the stock prices of these stocks once rose sharply because of their partnership with Huawei. Among them, BAIC Blue Valley climbed from 8 yuan per share at the beginning of April this year to a maximum of 19.87 yuan on May 20, which more than doubled. Chang’an Automobile climbed from around 14 yuan per share at the end of March to the highest of 25.5 yuan on May 19, and the daily limit was repeated many times during this period. Well-off shares have risen from more than ten yuan per share at the beginning of the year to nearly 70 yuan. On May 21, they closed at 57.67 yuan, and their market value soared to more than 70 billion yuan. Huawei’s statement has “disappeared” the recent scandals about its car making with BAIC Blue Valley and Changan Automobile. Recently, there have been reports that Huawei is trying to acquire the electric vehicle division of local automakers, including seeking to control the electric vehicle brand of BAIC Blue Valley New Energy Technology-Arcfox ARCFOX. The report quoted a BAIC Blue Valley insider who asked not to be named as saying that Huawei is unlikely to have a controlling stake in BAIC Jihu, and it is more likely to become a shareholder. As for Changan Automobile, according to Reuters, a person familiar with the matter disclosed that Huawei is expanding its cooperative relationship with Changan, and the two may soon establish a chip development joint venture. But then Changan Automobile denied it, and Huawei stated that the news from Changan Automobile prevails. Although the “Statement” issued by Huawei today did not give a direct explanation on whether it will cooperate with Changan on chips, Huawei’s resolute statement of “not building cars” also cools the possibility of cooperation between the two. With the release of Huawei’s “Statement”, BAIC Blue Valley and Changan Automobile have also become the partners of Huawei with the largest decline. However, despite the statement that it will not build cars, Huawei stated in the “Statement” that it has selected three car companies, namely BAIC, Changan and Guangzhou Automobile, as strategic partners to support them in building their respective sub-brands. Cars that use Huawei’s autonomous driving solution can only use the HI logo with Huawei’s authorization, which represents Huawei Inside. On May 20, Changan Automobile announced that its holding subsidiary, Changan Weilai, was renamed Avita Technology. After the name change, Avita Technology will be fully market-oriented, and will create a smart electric networked vehicle platform with Changan Automobile, Huawei and CATL. At the Shanghai International Auto Show in April this year, the Polar Fox Alpha S Huawei HI version, which Huawei cooperated with BAIC New Energy, was launched. This is the first car that Huawei has deeply participated in as a supply chain company. This car is equipped with Huawei’s L4 level of unmanned driving technology, which can achieve 1000 kilometers of autonomous driving without intervention in the urban area. Regarding the cooperation between Huawei and Jincon Sailus, a subsidiary of Chongqing Xiaokang Group, Huawei stated that the company is a supplier of electric components for Celes SF5 and HiCar cockpit components. At the same time, in order to solve the problem of survival of Huawei authorized mobile phone retail stores in the situation where Huawei’s mobile phones are greatly reduced, Huawei supports some retail stores to sell this car, and retail stores can also obtain corresponding benefits. Currently, Huawei’s mobile phone business has experienced a significant decline. According to the smartphone shipment data of the Chinese market in the first quarter of 2021 released by the research organization Counterpoint Research, Huawei has fallen from the original number one to the fifth, with only 13.4% of the market share left. Under this circumstance, Huawei’s need to develop new business segments and sources of profit is more urgent, and smart auto parts are considered to be an important new business segment it is targeting. At the same time, there are reports that Huawei can get a share in the sales of Cyrus SF5, including 10% of sales and 7%-8% of dealers. Statistics show that the sales volume of Cyrus SF5 continues to increase after entering the Huawei Mall, with orders for more than 6,500 vehicles. Huawei has repeatedly expressed its desire to become the “Bosch” in the era of smart electric vehicles. “We believe that what the industry needs is not Huawei branded cars, but Huawei’s accumulated ICT technology capabilities for more than 30 years to help car companies build future-oriented cars, that is, to provide car companies with intelligent networked cars based on Huawei’s ICT capabilities. Parts.” Huawei said in a statement. However, it is worth noting that although Huawei has refuted rumors about building a car several times, there are still views that this does not help Huawei not to build a car. After all, 17 years ago, Huawei said “resolutely not to make mobile phones,” and its firm attitude is exactly the same as that of today’s saying not to build cars. According to the data, before the release of this statement, Huawei had stated at least six times that it would not build a car. In January 2019, Huawei founder Ren Zhengfei stated for the first time that “Huawei will never build a car, and never build a car”; in May 2019, Ren Zhengfei denied the rumors of building a car, saying that “Huawei will not switch tracks casually”; October 2019 , Huawei’s rotating chairman Xu Zhijun stated at the World Intelligent Connected Cars Conference, “Huawei does not build cars, and is committed to becoming an incremental component supplier for intelligent connected cars”; October 2020, President of Huawei Smart Car Solutions BU Wang Jun stated at the mobile phone new product launch conference, “Huawei does not build cars, but helps car companies build good cars”; in November 2020, Huawei stated in an internal document that “Huawei does not build complete cars” and proposed “who in the future? Proposal to build a car again, interfere with the company, be transferred to another position, and find another job”; and a month ago, in April 2021, Xu Zhijun just reiterated “Huawei does not build cars” at the Huawei Global Analyst Conference. On the other hand, in response to repeated prohibitions on “car manufacturing rumors”, Huawei has never stopped investing in the automotive business during the past few years, and the number of automotive-related patents has gradually increased, and it has begun to develop in-depth cooperation with car companies.