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]