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Yi Hualu: Hualu Yiyun is a joint venture and has no cooperation with Baidu in the Carrot Run business

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Recently, Baidu's autonomous driving travel service platform, Radish Run, has attracted high market attention. On July 10th, the concept of autonomous driving strengthened during trading, with multiple stocks hitting the limit up.
Investors have noticed that Yihualu and Beijing Baidu Netcom Technology Co., Ltd. are jointly investing in Hualu Yiyun.
Regarding whether to participate in the Carrot Run project, a reporter from Southern Finance and Economics contacted the investor relations department of Yihualu as an investor. The relevant person stated, "Currently, according to our understanding, Hualu Yiyun has not cooperated with Baidu in this business.". The person also said, "I don't know if there is any relevant cooperation on the technical level. Based on the information we have at our level, it should not be closely related to Carrot (Run Fast)."
So, how much does the autonomous driving business account for in the company's revenue? The above person stated that it is not very clear that this (Hualu Yiyun) is a joint venture and the company is not consolidated.
On July 10th, Yihualu saw a rapid increase in early and late trading, rising over 7% at one point. As of press release, Yihualu had risen over 3%.
Baidu's financial report for the first quarter of this year showed that there were approximately 826000 autonomous driving orders supplied by Carrot Run during the period, a year-on-year increase of 25%. As of April 19, 2024, Carrot Run has provided over 6 million orders for autonomous driving travel services to the public.
According to the Carrot Run Plan, Wuhan will achieve full city coverage by 2024, and 1000 sixth generation mass-produced unmanned vehicles will be put into operation. It is expected that with the increase of advertising volume in the future, the operating costs of bicycles will significantly decrease, and economies of scale may be reflected. Carrot Run is expected to achieve a break even point in Wuhan by the end of 2024 and achieve profitability by 2025.
(Disclaimer: The content of the article is for reference only and does not constitute investment advice. Investors operate based on this and bear the risk themselves.)
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