Core Insights - Huawei and Chery have upgraded their collaboration, marking a new phase for the Zhijie brand, with plans to invest over 10 billion yuan in R&D over the next three years [1] - The core of this strategic upgrade is the independent operation of Zhijie New Energy Company, transitioning from deep cooperation with Huawei to a more market-oriented structure [1] - Huawei will lead product definition, sales channels, and after-sales service, while Chery will focus on production and supply chain management, establishing a division of labor [1] Investment and Development Plans - The partnership will establish dual design centers in Shanghai and Shenzhen, and a R&D center in Wuhu, creating a multi-location collaborative R&D system [3] - Zhijie Super Factory will implement Huawei's quality control standards, achieving 100% automation in stamping, welding, and painting processes, with production efficiency reaching one new car per minute [3] Product Launch and Market Strategy - The Zhijie R7 and S7 facelift models will start pre-orders on August 8, with starting prices of 268,000 yuan and 258,000 yuan respectively, and the new models have already seen over 10,000 pre-orders within the first hour [5] - Zhijie brand sales reached 45,000 units in the first half of the year, trailing behind other brands under Hongmeng Zhixing, with only 30% of the sales of the Wanjie brand during the same period [7] Competitive Landscape - The Zhijie brand faces increasing competition from new electric SUV models, including the recently launched LeDao L90 and upcoming models like LeDao L80 and Li Auto i6 [7] - The future success of the Zhijie brand post-independence remains uncertain, particularly in light of the competitive market dynamics [7]

Core Insights - Chery Automobile and Huawei have signed a strategic cooperation agreement for the Zhijie brand 2.0, committing over 10 billion yuan and expanding the R&D team to 5,000 people to enhance technological leadership [1][4] - Zhijie has established an independent operation for its new energy company, focusing on integrated production and sales, and plans to launch multiple new high-end models [1][3] Group 1 - The cooperation between Zhijie and Huawei is described as deeper compared to other partnerships, with R&D centers located in Shenzhen and Shanghai to facilitate efficient communication [3] - Zhijie's team currently has nearly 2,000 members, with expectations to reach 5,000 by the end of the year, and the supplier system is aligned with Huawei's standards [3][4] - Zhijie is establishing a separate sales network, with new stores set to open by the end of August, adopting a dual branding strategy with Hongmeng Zhixing [3] Group 2 - The Zhijie project was initiated in 2022 under the internal code "EH Division," led by Chery's CTO, with significant investment and collaboration with Huawei's team [4][5] - In Q1 2024, the EH Division will be upgraded to an independent division responsible for the full management of the Zhijie brand, while Huawei will continue to provide technical support [4] - Currently, Zhijie has two models, the S7 and R7, both experiencing declining sales, with S7's monthly sales dropping from 1,833 units to 600 units and R7 from 15,903 units to around 3,000 units [6][7]