Chongqing Sokon Industry Group Co., Ltd. (601127.SH) will invest 4.438 billion yuan in research and development in 2023, accounting for 12.38% of its revenue.

On April 29, Chongqing Sokon Industry Group Stock (601127.SH) released its first quarter report for 2024 and its annual report for 2023. The data shows that in the first quarter of 2024, Chongqing Sokon Industry Group Stock's revenue was 26.561 billion yuan, a year-on-year increase of 421.76%; the net profit attributable to the shareholders of the listed company was 2.2 billion yuan, and the gross profit margin for the first quarter increased to 21.5%. In 2023, the annual revenue was 35.842 billion yuan, with revenue from new energy vehicles reaching 28.948 billion yuan, a year-on-year increase of 16.10%. Chongqing Sokon Industry Group Stock invested 4.438 billion yuan in R&D in 2023, accounting for 12.38% of its operating income. Income Turned Positive in the First Quarter with Gross Margin Rise to 21.5% In the first quarter of this year, Chongqing Sokon Industry Group Stock saw a significant growth in performance, achieving positive net profit. On one hand, the AITO Wanjie series continued to perform well in the market, driving economies of scale; on the other hand, multiple measures such as cost reduction, efficiency improvement, and technological innovation effectively increased operational efficiency. Benefiting from increased sales of new energy vehicles, the net cash flow generated from operating activities in the first quarter of 2024 was 1.187 billion yuan. The financial report shows that through technological innovation, cost control, and other means, the company achieved precise, efficient, and full-chain management in the first quarter of 2024, reducing operating costs by 8 percentage points compared to the fourth quarter of 2023; accelerated sales growth brought about economies of scale, and efficient internal management increased the product gross margin to 21.5%. Rapid Development of New Energy Business, AITO Wanjie Hot Sellers Chongqing Sokon Industry Group Stock's new energy vehicle business has been rapidly developing, reaching sales of 94,825 units in the first quarter of this year, a year-on-year increase of 374.77%. Especially with the emergence of popular models like AITO Wanjie's new M7 and M9, the Wanjie series has become a major highlight in the market. Data shows that the AITO Wanjie new M7 has accumulated over 174,000 orders in the seven months since its launch; with leading technology and luxury strength, the Wanjie M9 has accumulated over 70,000 orders in the three months since its launch, demonstrating high consumer recognition. As of now, the user base of AITO Wanjie cars has reached nearly 300,000, with multiple models favored by users. It is worth mentioning that in the first quarter of this year, AITO Wanjie ranked among the top five luxury brands in the Chinese market, becoming the highest-ranked Chinese brand on the list. With the launch of the Wanjie M5 on April 23, the core product lineup continues to expand, and Chongqing Sokon Industry Group Stock is expected to further expand its market size and continue to lead the high-end new energy vehicle market. Continued High-Intensity R&D Investment, Magic Square Platform Debuts at Beijing Auto Show The financial report shows that Chongqing Sokon Industry Group Stock invested 4.438 billion yuan in R&D in 2023, accounting for 12.38% of its operating income. By the end of 2023, the number of R&D personnel reached 4,955, an increase of 18.6% year-on-year. Chongqing Sokon Industry Group Stock's fully self-developed Magic Square platform recently debuted at the Beijing Auto Show. The platform features four major characteristics of "panoramic safety, diverse power, versatile space, and intelligent leadership," integrating industry-leading safety, power, chassis, and software technologies to provide users with a "good driving, easy-to-use, super-safe" driving experience. It is reported that Chongqing Sokon Industry Group Stock's Magic Square platform is currently the only platform in the industry that can simultaneously accommodate three power forms of supercharging, pure electric, and hybrid, and it applies the industry's first "panoramic safety" system, developing more than 200 safety features based on over 150 driving scenarios, with over 40 safety technologies leading the industry, providing drivers and passengers with peace of mind. As a pioneer and leader in range extender technology, Chongqing Sokon Industry Group Stock became the industry leader in range extender installations in 2024, with cooperation agreements reached with 12 industry partners. Intelligent Manufacturing Safeguards High-Quality Production and Delivery In terms of intelligent manufacturing, Chongqing Sokon Industry Group Stock ensures high-quality production and delivery with new quality productivity. Chongqing Sokon Industry Group Stock's automotive super factory has over 3,000 units of Siasun Robot&Automation intelligent collaboration, with 100% automation in key processes, achieving a maximum of 30 seconds per new car offline, making it the world's highest production efficiency; using the industry's first automated quality testing technology, achieving 100% quality monitoring and traceability; and leading the industry with its integrated 9,000T die-casting technology, effectively achieving efficient production, lightweighting, and high safety. As a company actively responding to the automotive energy revolution, Chongqing Sokon Industry Group Stock integrates sustainable development concepts into product design, material use and recycling, production manufacturing, logistics transportation, and office warehousing. The 2023 ESG report shows that the waste treatment rate and pollution control compliance rate are both 100%, with an average recycling rate of 97% and a reuse rate of 92%, and a 98.1% rate of recycled packaging use.