BAIC BluePark's revenue fell by 30% in the first half of the year, and its losses widened to nearly 2.6 billion yuan: price war squeezed profit margins
2024-08-27
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BAIC BluePark Visual China data map
BAIC BluePark’s net losses continue to expand.
On August 26, BAIC BluePark New Energy Technology Co., Ltd. (BAIC BluePark, 600733) disclosed its semi-annual report. The announcement showed that the company achieved operating income of 3.741 billion yuan in the first half of 2024, a year-on-year decrease of 35.16%; the net profit attributable to shareholders of the listed company was -2.571 billion yuan, compared with -1.979 billion yuan in the same period last year, and the loss increased year-on-year.
Regarding the performance loss, BAIC BluePark stated that on the one hand, it was due to the increasingly fierce competition in the new energy vehicle market and the increasingly fierce price war, which squeezed the profit margin; on the other hand, in order to continuously promote the high-end development of its products, the company continued to invest in technology research and development, brand channel construction, brand image sharpening, and operational efficiency improvement, which had a certain impact on the company's short-term performance.
BAIC BluePark is a listed company controlled by Beijing Automotive Group Co., Ltd. BAIC BluePark's subsidiary Beijing New Energy Automobile Co., Ltd. was founded in 2009 and is the first company in my country to operate independently and obtain the qualification to produce new energy vehicles. On September 27, 2018, BAIC BluePark became the first domestic new energy vehicle stock through a major asset reorganization.
BAIC BluePark mainly has two brands, Arcfox and BEIJING. Among them, Arcfox is a high-end smart new energy vehicle brand created by BAIC BluePark, and its products are produced by BluePark Magna, a joint venture in China between BAIC BluePark and Magna, a world-renowned luxury car manufacturer.
Although its performance is not good, BAIC Arcfox has a first-class "circle of friends".
In terms of power batteries, the company cooperates with the industry-leading CATL. The two parties have jointly overcome the core technical difficulties in the design of fast-charging batteries and vehicle thermal management systems, and promoted the application of Shenxing super-charged batteries in vehicles, which will soon be mass-produced with the new products of Polar Fox. In the first half of 2024, the company will invest in the construction of a battery cell intelligent manufacturing factory in Beijing through the establishment of a platform company through equity participation, together with CATL and other partners.
In terms of intelligent driving technology, the company has joined hands with Huawei to jointly create high-end intelligent driving scenario applications.
Recently, both SERES and Changan Automobile have announced that they will acquire shares in Shenzhen Yinwang, a smart car business company under Huawei, through their subsidiaries. Both companies will purchase a 10% stake in Shenzhen Yinwang at a cost of 11.5 billion yuan each.
BAIC Blue Valley also responded to this. According to Xinhua Finance, Zhao Ji, secretary of the board of directors of BAIC Blue Valley, recently responded that he has paid attention to the situation that Avita and others intend to acquire shares in Shenzhen Yinwang Intelligent Technology Co., Ltd., a subsidiary of Huawei. In this regard, the company currently has no information to disclose. The company is firmly betting on cooperation with Huawei from a strategic level. At present, the interests of both parties are deeply bound together, and the cooperation will be further deepened in the future.
In terms of models, the first car jointly developed by Huawei Hongmeng Intelligent Driving and BAIC, Xiangjie S9, has just been unveiled. Since BAIC Blue Valley's sales have not been able to break through for a long time, the "Xiangjie" series jointly developed by Huawei Hongmeng Intelligent Driving is regarded as the key by the outside world.
On August 26, at the launch of Hongmeng Intelligent Driving new products, Yu Chengdong, Huawei's executive director, chairman of the Terminal BG, chairman of the Intelligent Vehicle Solutions BU, and director of the Intelligent Terminal and Intelligent Vehicle Components IRB, said that the sales volume of Enjoy S9 exceeded 8,000 units in 20 days after its launch, which was a start that exceeded expectations.
The production and sales report shows that in July this year, BAIC BluePark sold a total of 11,000 vehicles, a significant increase from 3,359 vehicles last year; cumulative sales from January to July were 38,600 vehicles, a year-on-year increase of 1.15%.
BAIC BluePark also predicted in its semi-annual report that with the continued investment of many automakers in new energy vehicles and the launch of various brands of models, market competition in the new energy vehicle industry will further escalate.
The Paper reporter Wu Yuli
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