Core Insights - The 2025 Digital Intelligence Technology Ecological Conference was held in Guangzhou, showcasing Huawei's innovations in smart terminals and intelligent ecosystems, emphasizing the theme "Smart Navigation, Intelligent Coexistence" [1][5] Group 1: Exhibition Highlights - Huawei's exhibition area covered 468 square meters, featuring a "1+8" product matrix, HarmonyOS intelligent vehicles, and comprehensive smart home solutions [1] - The exhibition design was highly technological, with distinct areas for product displays, including the 1+8 product display table, HarmonyOS intelligent vehicle area, and smart home solutions [2][3] Group 2: Product Innovations - The HUAWEI Mate XTs showcased a lightweight foldable design with a near-crease-free screen, enhancing portability and durability [2] - The HUAWEI Mate80 series offered significant upgrades in performance and imaging, featuring a new processor and advanced imaging systems for professional-grade photography [2] - The HUAWEI WATCH Ultimate 2 provided real-time health monitoring and a new adventure mode for outdoor safety [3] - The HUAWEI MateBook Fold featured a versatile foldable screen design, enhancing user experience across different scenarios [3] Group 3: Intelligent Automotive Solutions - The HarmonyOS intelligent cockpit in three showcased models (Wenjie M9, Xiangjie S9, Zhijie R7) enabled seamless connectivity with personal devices, enhancing user experience [4] - Advanced driving assistance systems in these vehicles provided features like automatic avoidance, lane keeping, and smart parking for safer driving [4] Group 4: Smart Home and Enterprise Solutions - The HarmonyOS smart home solutions allowed users to control home devices remotely, enhancing convenience and security [4] - Huawei's enterprise solutions aimed to improve operational efficiency and reduce costs for businesses through digital transformation [4][5]

Core Insights - The partnership between Huawei and Chery is deepening with the launch of the Zhijie brand and the establishment of dual design centers in Shanghai and Shenzhen, marking a significant strategic shift towards electric vehicles in China [1][2] - The new Zhijie R7 and S7 models, equipped with advanced technologies, are seen as a critical step in the brand's transformation and ambition to capture a larger market share [2][14] - The restructuring of the Zhijie project aims to enhance decision-making efficiency and resolve previous internal conflicts between the two companies [5][6] Group 1: Strategic Developments - Zhijie has officially launched its dual design centers in Shanghai and Shenzhen, indicating a commitment to product innovation and market responsiveness [1] - The decision to focus entirely on the Zhijie brand, abandoning the Star Era brand, reflects Chery's strategic prioritization of Zhijie as its core business [4][5] - The introduction of the new models is part of a broader strategy to penetrate various market segments, including the high-demand MPV market [4][6] Group 2: Product Innovations - The new Zhijie models will feature high-end technologies such as 192-line laser radar and advanced driving assistance systems, showcasing a commitment to quality and innovation [2][13] - The "pure blood HarmonyOS" concept is being implemented in the new models, emphasizing a fully integrated technological approach [2][14] - The new models are designed to simplify user choices by standardizing key features across all variants, addressing previous customer complaints about configuration options [13][14] Group 3: Operational Efficiency - The restructuring of Zhijie into an independent subsidiary aims to streamline operations and improve efficiency in decision-making processes [5][6] - The establishment of a dedicated R&D base in Wuhu is intended to enhance the development of innovative technologies and support the brand's long-term growth [7][10] - The integration of a unified supply chain and automated manufacturing processes is expected to improve production efficiency and product quality [9][10] Group 4: Market Challenges and Responses - Zhijie has faced significant challenges, including delivery issues and fluctuating sales, which have prompted a reevaluation of its operational strategies [8][10] - The brand's initial success was marred by production delays and supply chain disruptions, leading to a reassessment of its market approach [8][10] - In response to market pressures, Zhijie is focusing on building trust with consumers through improved communication and customer service initiatives [9][10]

Core Viewpoint - The collaboration between Huawei and Chery through the launch of the Zhijie brand and the establishment of dual design centers in Shanghai and Shenzhen marks a significant strategic shift, aiming to reshape the landscape of China's smart electric vehicle market with a focus on Huawei's full-stack technology and the "pure blood HarmonyOS" approach [1][4][5]. Group 1: Strategic Developments - On August 7, the Zhijie brand strategic cooperation agreement was signed in Shenzhen, and the dual design centers were officially opened, indicating a new starting point for the Zhijie brand after internal adjustments and market fluctuations [2]. - Chery has fully committed to the Zhijie brand, abandoning the Star Era resources, which is expected to enhance Zhijie's market position and eliminate internal competition for resources [8][10]. - The launch of the new R7 and S7 models, referred to as the "Double 7 New Models," is seen as the first step in brand rejuvenation, featuring advanced technology such as 192-line laser radar and the Huawei ADS 4 driving assistance system [5][26]. Group 2: Product and Market Strategy - Zhijie plans to expand its product lineup beyond the Double 7 models, with intentions to introduce a large SUV (R9) and the first MPV model under the HarmonyOS driving system, reflecting ambitions to penetrate broader market segments [7]. - The "Double 7 New Models" are positioned as a critical product for achieving the "third generation of maturity," with a focus on high-end specifications and user experience, aiming to compete directly with established players like Tesla [25][26]. - The strategy includes a "no optional extras" approach, where key features are standardized across all models to simplify user decision-making and enhance customer satisfaction [25][26]. Group 3: Operational and Structural Changes - The restructuring of the Zhijie project has transitioned from a divisional model to an independent subsidiary, allowing for more efficient decision-making and a clearer delineation of responsibilities between Huawei and Chery [13][14]. - The establishment of a dedicated R&D base in Wuhu, along with the relocation of the engineering team, aims to enhance research efficiency and align with Huawei's operational standards [15][11]. - The collaboration has evolved from initial disagreements over control to a more integrated partnership, with Huawei taking the lead in product quality and operational management while Chery provides strategic support [16][13]. Group 4: Challenges and Adaptations - Zhijie's journey has faced significant challenges, including delivery issues and market fluctuations, which have prompted a reevaluation of operational strategies and a focus on rebuilding trust with consumers [18][20]. - The brand's initial high order volume for the S7 was met with delivery delays due to production capacity issues, leading to a reassessment of supply chain resilience and user response mechanisms [18][20]. - The transition from a reliance on Huawei's brand strength to a more user-centric approach marks a critical evolution in Zhijie's operational strategy, emphasizing direct user engagement and efficient manufacturing processes [20][21].

Core Insights - The landscape of China's new energy vehicle market has undergone significant changes in the first half of the year, with the previous "Wei Xiaoli" trio being disrupted by new leaders [1][2] - The top three new energy vehicle companies by sales volume in the first half of the year are Leap Motor, Hongmeng Zhixing, and Li Auto, with deliveries of 221,664, 204,658, and 203,938 units respectively [1][2] - The market is experiencing intense competition, shifting focus from price wars to technology, service, and ecosystem development [1][7] Group 1: Company Performance - Leap Motor achieved a remarkable 155.7% year-on-year growth, becoming the largest player with 221,664 units delivered, and aims to maintain a monthly delivery of over 50,000 units in the second half of the year [2][3] - Hongmeng Zhixing ranked second with 204,658 units sold, but faces pressure to meet its ambitious annual target of 1 million units, having completed only 20.5% in the first half [2][4] - Li Auto, with 203,938 units delivered, saw a slower growth rate of 7.9% and aims to launch new electric models to enhance its market position [2][3] Group 2: Market Trends - June saw a collective surge in sales among new energy vehicle companies, with Hongmeng Zhixing leading with 52,747 units delivered, marking a 20% year-on-year increase [4][5] - The overall market for new energy vehicles is expected to continue growing, driven by technological advancements and improved infrastructure [6][7] - The competition is anticipated to shift from scale to technology, with new models from various companies set to launch in the second half of the year [7][8] Group 3: Future Outlook - The penetration rate of new energy vehicles reached approximately 55% in June, with significant promotional activities contributing to sales growth [7] - Companies are focusing on building differentiated competitive advantages in smart driving, charging networks, and user ecosystems [8] - The global expansion of companies like Leap Motor and Xiaomi is expected to enhance their market presence, with predictions of significant growth in exports by 2025 [7][8]