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On the evening of August 26, the first half report of BAIC BluePark (600733), Huawei's deep cooperation partner in intelligent vehicles and Hongmeng Intelligent Driving ecosystem partner, was released: a loss of 2.571 billion yuan, the largest loss in the same period in history.

It was disclosed that in the first half of 2024, BAIC Blue Valley achieved revenue of 3.741 billion yuan, a year-on-year decrease of 35.16%, and its losses further expanded to 2.571 billion yuan, the company's largest loss in the same period in history. The loss in the same period last year was 1.979 billion yuan. In the first half of the year, the company's net cash flow from operating activities was a net outflow of 2.057 billion yuan, compared with a net outflow of 1.58 billion yuan in the same period last year.

BAIC BluePark said that the decline in revenue in the first half of the year was mainly due to the decrease in vehicle sales during the period, which led to a year-on-year decrease in revenue. The company's automobile sales in the first half of the year were 28,011 units, and the decrease in net operating cash flow was also due to the decrease in sales, resulting in a year-on-year decrease in sales remittances.

Beijing Blue Valley said that the reasons for the company's losses in the first half of 2024 are: on the one hand, competition in the new energy vehicle market is becoming increasingly fierce, price wars are becoming increasingly fierce, squeezing profit margins; on the other hand, in order to continuously promote the development of products towards high-end, the company continues to invest in technology research and development, brand channel construction, brand image sharpening, and operational efficiency improvement, which has a certain impact on the company's short-term performance.

Prior to this, BAIC Blue Valley had suffered losses for four consecutive years, with a cumulative loss of 22.59 billion yuan. Combined with the losses in the first half of 2024, the cumulative losses in four and a half years reached 25.161 billion yuan.

It is worth mentioning that BAIC BluePark is one of the four major partners of Huawei's Hongmeng Intelligent Driving. On August 6 this year, the first model jointly created by the two parties, the panoramic smart flagship sedan Xiangjie S9, was officially launched.

Just yesterday at Huawei's Hongmeng Intelligent Driving new product launch conference, Yu Chengdong, chairman of Huawei's Intelligent Automotive Solutions BU, revealed on the spot that the recently launched Enjoy S9 had received over 8,000 orders in 20 days, exceeding expectations.

It is reported that the Enjoy S9 is equipped with Huawei ADS 3.0, the first to apply a new end-to-end architecture, an all-scenario and all-weather intelligent hardware perception system, and omnidirectional collision avoidance 3.0 ultra-full perception, unmanned driving and intelligent parking capabilities. It is also equipped with the Hongmeng cockpit system and Pangu large model voice assistant, supporting seamless flow of information between mobile devices and car computers.

BAIC BluePark said that the company is currently making every effort to build three major brands: Arcfox, Enjoy and BEIJING. In the first half of the year, the models sold by Arcfox include: the high-end smart driving pure electric sedan Arcfox Alpha S Advanced Edition, the all-terrain performance pure electric SUV Arcfox Alpha T Forest Edition, and the smart luxury pure electric sedan Arcfox Alpha S Forest Edition.

Interestingly, the Alpha S Advance Edition PRO also contains Huawei's "gene". It is a high-end intelligent pure electric sedan jointly developed by the Polar Fox brand and Huawei. It is the world's first luxury pure electric sedan equipped with Huawei HI full-stack intelligent car solution. It is the first model in the country to support high-end intelligent driving on urban roads.

In other words, BAIC BluePark is both a partner of Huawei's Hongmeng Intelligent Driving Model and a partner of Huawei's HI Model.

It is worth mentioning that Yu Chengdong had previously revealed that this year he had transferred all the trademark rights of multiple "Jie" series such as Wenjie and Xiangjie to car companies. Previously, SERES spent 2.5 billion yuan to acquire the Wenjie series of trademarks. Although BAIC Blue Valley did not disclose the price of purchasing the Xiangjie series of trademarks, judging from the price SERES paid for the Wenjie trademark, the price BAIC Blue Valley paid for the Xiangjie trademark should not be low, which will also affect the company's net profit in the first half of the year to a certain extent.

BAIC BluePark pointed out in its semi-annual report that in the course of operation in 2024, the internal competition in the industry has led to severe market competition. Competition in China's new energy vehicle industry has become increasingly fierce. The intensive layout and rapid iteration of competing car companies in the market have formed a diversified market structure, which has intensified competition among car companies. In order to compete for market share, various car companies have adopted price reduction strategies, and market competition has become increasingly fierce. At the same time, the new energy vehicle industry is rapidly developing towards intelligence and networking. The rapid iteration of technology has shortened the production cycle and life cycle of products, which has posed new challenges to the company's design, production and manufacturing capabilities.