Since the second half of this year, Thalys has been active, spending 2.5 billion yuan to acquire Huawei's trademark for "Wenjie," purchasing a 10% stake in Huawei's Yinwang for 11.5 billion yuan, and investing an additional 5 billion yuan in its wholly-owned subsidiary Thalys Automobile Co., Ltd. Additionally, Thalys acquired a 100% stake in Longsheng New Energy for 8.164 billion yuan. These moves aim to deepen its cross-border integration with Huawei and consolidate the success of the "Wenjie" brand.

Pioneering a new model of cooperation

Amidst the unprecedented changes brought about by technological advancements, some enterprises daring to be pioneers have emerged as industry leaders.

Thalys and Huawei have pioneered a new model of cross-border cooperation between automakers and technology companies, achieving remarkable success. This provides valuable insights and serves as a model for others to emulate.

December 2, 2021, marked a significant day as the two companies jointly unveiled their new premium smart automotive brand, "Wenjie," followed by the launch of its flagship model, Wenjie M5, equipped with the HUAWEI Drive ONE electric drive system and Harmony OS intelligent cockpit. The model's success was immediate. In May 2022, Wenjie M5 achieved over 10,000 deliveries in just 87 days, setting a new record for the fastest delivery milestone for a single model from a new brand.

Wenjie's success stems from the joint business model established by Thalys and Huawei. In the new development stage, this model has been endowed with new connotations. On July 2, 2024, Thalys announced the signing of a cooperation agreement with Huawei to further deepen their joint business and acquire Huawei's "Wenjie" trademark for 2.5 billion yuan, marking a new phase in their joint business model.

Under the agreement, both parties will leverage their respective resources and strengths, focusing on the Wenjie brand. They will jointly design and market products, providing users with high-end smart electric vehicles and intelligent travel solutions, positioning Wenjie as a leading world-class luxury automotive brand.

The transfer of the Wenjie trademark holds profound significance for Thalys. It not only enhances Thalys' brand control, facilitating a unified brand image and marketing strategy, but also solidifies its international footprint. As a pioneer in the domestic market, Thalys and Huawei will join forces, leveraging their respective advantages in technology research and development, brand building, and marketing to drive innovation in the smart and connected new energy vehicle industry.

For Huawei, the transfer of the Wenjie trademark reaffirms its commitment to not manufacturing vehicles, reinforcing its role as an enabler and super supplier to the automotive industry. Huawei has reiterated that it will continue to support Thalys in producing and selling Wenjie vehicles, leveraging its leading smart and connected vehicle technology to assist automakers in delivering high-quality products.

After enjoying sales, profits, brand recognition, and stock price gains through its collaboration with Huawei, Thalys has been active in the capital market. On August 25, Thalys announced the acquisition of a 10% stake in Huawei's Yinwang for 11.5 billion yuan. On September 13, it further announced an additional investment of 5 billion yuan in Thalys Automobile Co., Ltd., increasing its registered capital from 4.96 billion yuan to 9.96 billion yuan. The announcement also revealed the acquisition of a 100% stake in Longsheng New Energy for 8.164 billion yuan, granting Thalys ownership of a super factory. These moves aim to consolidate Wenjie's hard-won achievements.

From an obscure small automaker to a widely recognized national brand, Thalys' transformation has taken just a few short years. However, collaborating with Huawei, launching hit products, and advancing capital cooperation have proven to be Thalys' most prudent decisions, enabling it to secure a firm footing in the new energy vehicle wave and positioning it as a potential industry leader.

Stunning transformation and soaring sales

Over the past year, Thalys' monthly sales have soared from a few thousand to over 40,000 vehicles, marking a remarkable transformation and significant growth trajectory.

Data shows that since October 2023, Thalys' new energy vehicle sales have consistently surpassed 10,000 units, maintaining a robust momentum. From January to August 2024, cumulative sales reached 279,300 units, a year-on-year growth of 381.75%, a remarkable achievement amidst complex external environments and intense industry competition. Thalys' unwavering commitment to software-defined vehicles, open cross-border collaboration, and a focus on technological innovation and cost efficiency have laid a solid foundation for exceeding its growth targets and driving significant product upgrades.

Wenjie's rapid development is noteworthy. In the first half of 2024, it ranked sixth among luxury brands in the Chinese market. On July 29, 2024, Wenjie delivered its 400,000th vehicle in just two years and five months, setting a new record for smart luxury brands. As of now, Wenjie M9 has secured over 140,000 orders within nine months of its launch, maintaining its position as the top-selling model priced above 500,000 yuan.

The robust sales growth has significantly enhanced Thalys' profitability. Since the first quarter of this year, Thalys has reported positive earnings, achieving a net profit attributable to shareholders of listed companies of 1.625 billion yuan in the first half of the year, setting it on a sustainable growth path. Thalys has surpassed the breakeven point and now ranks among the world's top four profitable new energy vehicle manufacturers, alongside Tesla, BYD, and NIO.

Financial reports reveal impressive data, Updated Cyrus' semi annual report 。By the end of June 2024, Thalys' revenue reached 65.044 billion yuan, a year-on-year increase of 489.58%. Operating profit and total profit stood at 1.70 billion yuan and 1.699 billion yuan, respectively, with a net profit attributable to shareholders of listed companies of 1.625 billion yuan. Total assets reached 82.417 billion yuan, up 60.83% year-on-year, and cash flow stood at 16.36 billion yuan, indicating ample liquidity. Thalys has exceeded its growth targets, delivering solid economic and social benefits.

Thalys' outstanding market performance in the first half of the year has garnered industry recognition and capital market favor, with securities firms such as Dongwu Securities, Everbright Securities, and Founder Securities issuing positive evaluations. Dongwu Securities believes that with ample backlog orders and the anticipated launch of new models by year-end, Thalys' sales are expected to continue growing in the second half. Founder Securities notes that the increasing share of high-end models has significantly boosted the brand's average price and profitability, aligning with second-quarter performance expectations. Existing model orders and deliveries are expected to remain robust, with quarterly performance trending upwards. Thalys is at the beginning of its profitable journey, poised for further breakthroughs amid an overall positive trend.

It is noteworthy that Wenjie's sales performance ranks highly not only domestically but also globally. According to CleanTechnica, from January to July 2024, Wenjie ranked seventh among global new energy passenger vehicle manufacturers, trailing only BMW and Volkswagen but surpassing multinational automakers like Mercedes-Benz and Volvo. Model-wise, both Wenjie M7 and Wenjie M9 made it to the top 20 global new energy vehicle sales list for the period, with Wenjie M7 even entering the top 10. Its future competition with Tesla's Model Y remains to be seen.

Technological confidence and superior products as the foundation

Thalys' confidence in its technology and products underpins the successful implementation of its growth strategies, including the doubling plan and the recruitment of non-professionals for intelligent driving experience activities.

In terms of technological reserves, Thalys boasts industry-leading advancements such as its self-developed "Magic Cube Platform," "Cloud Sea Architecture," multi-in-one super range extender, and highly integrated seven-in-one electric drive system. This is evident from the rapid growth in patent applications and grants. In the first half of 2024, Thalys filed 1,812 patent applications, including 1,313 invention patents and 300 utility model patents.

Particularly noteworthy is the full-stack self-developed "Magic Cube Platform," which Thalys positions as a versatile and multi-functional vehicle development platform, facilitating the transition from single-model to platform-based development. As the industry's only platform compatible with extended-range, pure electric, and hybrid powertrains, it boasts intelligent safety, diverse power options, flexible configurations, and smart connectivity. Covering B-D segment vehicles with the potential for sedan, SUV, and MPV extensions, it leads the industry in achieving 100% SOA, offering over 1,300 API interfaces and compatibility with over 5,000 applications.

Intelligent manufacturing underpins Thalys' high-quality product delivery. Thalys operates multiple smart factories, with its super factory at the forefront, boasting over 3,000 robots and 100% automation in critical processes. Pioneering the application of 10,000-ton integrated casting technology, it employs world-class blue light inspection and robotic online inspection for industry-leading measurement accuracy. Coupled with AI-powered visual monitoring for real-time process control and comprehensive inspection, Thalys' smart factories leverage digital management systems for flexible, transparent, automated, interconnected, and intelligent vehicle production. Production data is permanently stored and 100% traceable. Notably, the world's first and largest two-plate casting unit has recently commenced operations at Thalys' super factory.

Backed by numerous advanced technologies, Thalys boasts superior product capabilities. Currently, Wenjie offers three models: M5, M7, and M9, each targeting distinct consumer segments and usage scenarios. With both extended-range and pure electric powertrains, they effectively address range anxiety, accelerating the disruption of traditional gasoline-powered vehicles by new energy vehicles.

Wenjie M9, positioned as a panoramic smart flagship SUV, features the ADS 2.0 integrated perception system for 540° coverage, a 75-inch ARHUD with industry-leading 2K resolution for AR overlays, a second-row projection screen with a 32-inch display, and intelligent interactive matrix headlights for multi-scenario lighting effects. Boasting a super-rigid body structure using submarine-grade 2000MPa hot-formed steel and 9000-ton integrated casting technology for lightweight yet robust construction, it offers agile handling despite its 5230mm length. Standard features include closed-loop air suspension and CDC variable damping shock absorbers for dynamic adjustment and stable handling.

Wenjie M7, a luxury intelligent mid-to-large SUV, boasts an advanced intelligent driving system for navigating complex road conditions. Equipped with a 192-line LiDAR for early detection, fast recognition, and superior perception, coupled with evolving computing power and nationwide high-level intelligent driving capabilities, it enables driving virtually anywhere. Enhanced with a new CDC continuously variable damping shock absorber for a luxurious driving experience, it features a submarine-grade hot-formed steel body structure with over 80% high-strength steel and aluminum alloy, complemented by comprehensive battery safety design.

Wenjie M5, an intelligent electric medium SUV, integrates an advanced intelligent driving system and HarmonyOS 3.0 intelligent cockpit. Its perception system fuses multiple radars and cameras for precise environmental awareness, enabling seamless travel nationwide without relying on high-precision maps. Equipped with GOD and RCR intelligent networks for enhanced obstacle and road recognition, it ensures driving safety with an omnidirectional collision prevention system.

Thanks to Thalys' mastery of core technologies, rapid product iterations have become the norm. In the first half of this year, flagship model Wenjie M9 commenced mass deliveries, with the introduction of new Wenjie M5, Wenjie New M7 Ultra, Wenjie New M7 Pro, and Wenjie M9 Grand Five-Seater, offering users increased choices in terms of design, driving dynamics, intelligent features, and spaciousness. Notably, Wenjie M9 has secured over 140,000 orders within nine months of its launch, maintaining its top position among vehicles priced above 500,000 yuan, reshaping the premium market landscape for Chinese brands. New Wenjie M5 has delivered over 10,000 units since its launch, while Wenjie New M7 surpassed 110,000 units in the first half of the year, continuously setting industry records.

Picture: from the enterprise

Article: Auto Review

Typesetting: Auto Review