Core Insights - The company achieved a positive gross margin of 1.8% in Q3 2025, with a narrowed net loss of 1.12 billion yuan, reflecting improved profitability [1] - Total sales for Q3 2025 reached 44,349 units, a year-on-year increase of 11.3%, with cumulative sales for the first three quarters of 2025 at 112,000 units, up 64.3% year-on-year [1] - The company’s dual-brand strategy, featuring the Jihu and Xiangjie brands, has significantly boosted sales, with October sales reaching 31,000 units, a month-on-month increase of 112% [2] Sales Performance - In September 2025, the Jihu brand sold 16,074 units, a year-on-year increase of 47.7%, while the Xiangjie brand maintained strong performance with 6,700 units sold in October, leading the luxury electric sedan market [1][2] - The new Xiangjie S9 model is set to launch in November 2025, which is expected to further enhance sales momentum [2] Financial Projections - The company forecasts revenues of 265.55 billion yuan, 519.42 billion yuan, and 731.08 billion yuan for 2025-2027, with year-on-year growth rates of 83%, 96%, and 41% respectively [2] - Expected net losses are projected to decrease from -44.70 billion yuan in 2025 to a profit of 10.20 billion yuan by 2027, indicating a path towards profitability [2] - The earnings per share (EPS) are anticipated to improve from -0.80 yuan in 2025 to 0.18 yuan in 2027, with corresponding price-to-sales (PS) ratios of 1.73, 0.89, and 0.63 [2]

Core Viewpoint - Recent rumors suggest that Zhijie may separate from Chery Group, but internal sources deny these claims, affirming that Zhijie remains under the Huawei "Hongmeng Smart Travel" ecosystem and is fully controlled by Chery Automobile [1][3][4] Group 1: Company Structure and Operations - Zhijie is still part of the Huawei "Hongmeng Smart Travel" ecosystem and has not separated from Chery Group, which continues to hold full control [3] - The establishment of a new company by Zhijie is unclear, as the brand operates independently like other sub-brands under Chery [3] - Zhijie is currently screening dealer qualifications, favoring larger dealers, with a new store in Dongguan covering 10,000 square meters [4] Group 2: Product Development and Market Position - The Zhijie project was initiated in 2022, with significant investment and collaboration between Chery and Huawei, involving thousands of engineers [4] - The first model, Zhijie S7, was launched with a pre-sale price range of 258,000 to 358,000 yuan, but faced delivery delays due to production capacity issues [7] - Zhijie S7 has undergone multiple launches to address market challenges, including a price reduction and added features to stimulate orders [8] Group 3: Internal Dynamics and Resource Allocation - There are claims of internal resource competition between Zhijie and other Chery brands, but Zhijie representatives deny any unfair resource distribution [11][12] - The collaboration between Chery and Huawei has faced challenges regarding technical control and product definition, with both parties having differing priorities [12][14] - Industry experts view the partnership as a testing ground, suggesting that Zhijie's independence may ultimately benefit both companies by allowing them to focus on their strengths [13][14]