CITIC Securities: Hongmeng Zhixing's Ecological Adjustment Significantly Increased Ecological Resource Inclination

The Zhitong Finance App learned that CITIC Securities released a research report saying that recently, CITIC Securities officially switched to the Celis-led, Huawei technology-enabled model. Cyrus fully took over product definition, brand marketing, channels and after-sales, and relied on attractive equity bundles to guarantee priority supply of Huawei technology; Huawei concentrated core resources to further cultivate the four major cooperative brands of Dignity, Enjoy Jie, Zhijie, and Shangjie through a full-process smart selection model. The ecological resource inclination has increased significantly. After the business model was adjusted, Hongmeng Zhixing held its first new product launch on September 25, 2026. Zhijie RX, Huanxin Zhijie R7 were officially launched, and pre-sale of the Enjoy V8 began, covering mainstream household SUVs and high-end MPV markets. New products will continue to be launched in the second half of 2026, and 2027 will usher in a big year of Hongmeng products, and iteration of all categories helped increase sales.

CITIC Securities's main views are as follows:

After the business model was adjusted, Hongmeng Zhixing held its first new product launch on September 25, 2026. The bank's comments on this are as follows:

Ecological change: The questioning world is being dominated by Cyrus, and Huawei is focusing on building the remaining four realms.

On September 15, QQ, Huawei Qiankun Smart Driving, and Hongmeng Zhixing issued a statement on their official WeChat accounts. Cyrus fully took over product definition, design, brand marketing, channel retail and after-sales service, and implemented exclusive independent channels; Huawei continued to export a full set of technical solutions such as the Hongmeng cockpit and Qiankun Smart Driving, and Cyrus, as an aspiring 10% shareholder, technology supply priorities were guaranteed at the equity level. In addition, Huawei will focus resources on building the remaining four realms: Zunjie (JAC), Xiangjie (BAIC Blue Valley), Zhijie (Chery), and Shangjie (SAIC) still maintain the smart selection model where Huawei dominates the entire process.

New product rhythm: 26H2 is rich in new cars. 2027 is the big product year.

On September 25, 2026, Hongmeng Zhixing held its first new product launch. At this press conference, three cars went together: the new model Zhijie RX was officially launched (starting at 259,800 yuan), the new Zhijie R7 was launched (starting at 239,800 yuan), and the first Xiangjie MPV, the Xiangjie V8, began pre-sale (starting at 329,800 yuan). As Hongmeng Zhixing's first X-series SUV, the Zhijie RX is equipped with an L3 smart driving architecture, Huawei Touring chassis and 800V Smart Engine platform. It was the core focus of this press conference; the Huanxin Zhijie R7 optimizes the cockpit and sensing hardware for the home market; and the Enjoy the V8 enters the MPV circuit and continues to enrich the range. The bank expects the Hongmeng series to release a number of cars, SUVs, MPVs, and off-road SUVs in 2027, and continues to be optimistic about the sales growth of the Hongmeng system.

Risk factors:

The partnership with Huawei loosened; delivery of new models was delayed; sales of new models fell short of expectations; tight chip supply affected vehicle supply capacity; and a price war broke out in the terminal market.