AutoBeta(AutoBeta.net)11/09 Report--

According to BAIC Blue Valley's results for the third quarter of 2021, revenue reached 6.098 billion yuan in the first three quarters and 3.921 billion yuan in the same period last year. The net loss attributable to shareholders of listed companies was 2.644 billion yuan, compared with 2.884 billion yuan in the same period last year. In terms of sales, BAIC Blue Valley sold a total of 16974 vehicles in the first three quarters, down 19.50% from the same period last year.

Judging from the above data, although BAIC Blue Valley's revenue increased, net profit and sales said to be declining. BAIC Langu said revenue growth in the quarter and year-to-date was mainly due to an increase in vehicle sales and points revenue year-on-year. However, BAIC Langu did not disclose the amount of revenue earned through double points sales.

What is more serious is that according to the Shanghai and Shenzhen stock listing rules, domestic listed companies will be warned of the risk of delisting if they lose money for two consecutive years. Data show that BAIC Langu achieved revenue of 5.272 billion yuan in 2020, with a net loss of 6.482 billion yuan belonging to shareholders of listed companies. In other words, if BAIC Langu fails to turn losses into profits in the fourth quarter of this year, it may be dealt with by ST next year.

BAIC's new energy has grown rapidly in the past few years, with sales rising from 20, 000 in 2015 to 150000 in 2019, accounting for most of the pure electric vehicle market share. However, with the decline of new energy vehicle subsidies in 2019, the domestic new energy vehicle market showed negative growth for the first time. In this context, BAIC New Energy, which is committed to the development of new energy vehicle market, also showed negative growth in 2019, but BAIC New Energy, which sold 150600 vehicles, is still the top seller of pure electric vehicles in China.

In 2020, due to the epidemic, BAIC's new energy sales began to decline off a cliff, with cumulative sales of only 25914 vehicles for the whole year, down 82.79% from the same period last year. In the first half of this year, BAIC's market performance was still not optimistic. Under the influence of a low base caused by the epidemic last year, BAIC's sales fell further, with a loss of 2.6 billion yuan.

In the face of an increasingly competitive market environment, BAIC New Energy has also launched a high-end brand ARCFOX Polar Fox, which currently has two models, ARCFOX α T and ARCFOX α S. In April, BAIC Langu partnered with Magna to launch its second model, the Alpha S, of its high-end brand ARCFOX extreme Fox. Among them, the Alpha S Huawei HI model also carries Huawei's high-end self-driving ADS system, priced from 388900 yuan to 429900 yuan. However, from the perspective of market performance, it is difficult for the polar fox to become the mainstream, with sales of 1789 α T and 1194 α S in the past half a year. This sales figure is obviously not satisfactory compared with the results of Dongfeng Lantu FREE and Geely Polar Krypton in the first week.

Earlier, Liu Yu, chairman of BAIC New Energy, said, "it will take three years to bring BAIC New Energy back to the first camp, with a sales target of 12000 ARCFOX vehicles in 2021." As for how to achieve this goal, Liu Yu said that BAIC Langu, a state-owned enterprise, should learn and transform from private enterprises and the new power of car-making, focus on the C-end market and focus on customers. However, the data show that the cumulative delivery volume of the polar fox brand was only 1702 in the third quarter, compared with 2588 in the first three quarters, which is a far cry from the annual sales target of 12000.

Is there still a chance for BAIC's new energy? Some people in the industry have said that if traditional car companies launch high-end new energy brands, if they are unable to carry out revolutionary innovation in strategy, management, technology and other aspects, and do not pay enough attention to their own system, then it is difficult to achieve transformation through high-end brands. Some experts said that BAIC independent plate has many years of development experience, if the ARCFOX brand completely get rid of the traditional independent brand image, strengthen scientific and technological innovation and product strength, there may be a glimmer of chance.

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