AutoBeta(AutoBeta.net)04/28 Report--

On the evening of April 27th, BAIC Langu released its first-quarter results, showing that BAIC Langu achieved operating income of 1.731 billion yuan in the first quarter of 2022, an increase of 108.42% over the same period last year. The net loss of shareholders belonging to listed companies was 957 million yuan, down 12.08% from the same period last year. In recent years, BAIC Blue Valley performance is poor, has been two consecutive years of losses, 2020-2021 net losses of 6.476 billion yuan, 5.244 billion yuan respectively.

As the "top seller" of pure electric cars in China for seven consecutive years, BAIC New Energy "got up early in the morning and caught up with an evening collection". At present, China's new energy vehicle market, which sells 200,000 to 300,000 vehicles a month and has repeatedly set new highs, has failed to make BAIC New Energy enjoy dividends. Judging from the sales of 150601 vehicles in 2019, about 70% of them come from the B-end market, and the main sales channels include online car-hailing, business cars, taxis and so on. In fact, private cars account for a very low proportion, and as the B-end market becomes more and more saturated, BAIC's sales of new energy have also plummeted. In 2020, due to the impact of the epidemic, BAIC's new energy sales fell off a cliff, with annual sales of only 25914 vehicles, a year-on-year drop of 82.79%. Although sales in 2021 increased by 0.82% compared with the same period last year, but in the context of the continued doubling of the new energy vehicle market, BAIC's new energy performance is obviously very "ugly".

After entering 2022, BAIC Langu's performance has improved slightly, but it is still not optimistic. New energy passenger car sales totaled 1.07 million in the first quarter, up 146.6 per cent from a year earlier, while BAIC Langu sold 9120 vehicles in the first quarter, up 189.6 per cent from a year earlier, according to the Federation of passengers.

BAIC Langu has two brands of new energy vehicles, one is polar fox (ARCFOX brand), and the other is BAIC new energy (BEIJING brand). Polar fox is a high-end electric car brand for C-end, which is currently sold in Alpha T and Alpha S models. Alpha S, which was launched in April 2021, currently sells for 25.19-344900 yuan and provides 525km, 603km and 708km mileage.

According to the annual report, BAIC Langu produced a total of 6369 new cars in 2021, down 51.84% from 13224 in 2020. At the same time, 26127 new cars were sold, up 0.82 per cent from 25914 in 2020. It is understood that BAIC Langu owns three factories: BAIC New Energy Automobile Co., Ltd., BAIC New Energy Changzhou Co., Ltd., and BAIC Langu Magna Automobile Co., Ltd., with 320000, 50, 000 and 150000 vehicles, respectively, with a total design capacity of 520000 vehicles, while the actual capacity utilization in 2021 is 0.08%, 0% and 8.32% respectively, and the capacity utilization rate is very low.

Earlier, at the communication meeting held by BAIC Group, Zhang Xiyong, general manager of BAIC Group, revealed to the outside world some of the next goals and development focus of BAIC's three independent sectors. BAIC New Energy, which is owned by BAIC Blue Valley, has a sales target of 100000 vehicles this year, including 40,000 polar foxes, and strive to hit 300000 vehicles in the future. According to the figures for the first quarter, BAIC Langu had only 9120 vehicles in the first quarter, with a completion rate of only 9 per cent.

From the current point of view, whether BAIC Langu can turn losses into profits or not will ultimately depend on the development of the polar fox brand. In the current B-end market has been gradually full, and BAIC new energy can no longer rely on the supply of B-end market to achieve growth, the final brand upward still need to rely on the polar fox brand. However, as a C-end-oriented brand, the brand construction of Jihu has been criticized by the market. As a traditional car company, BAIC New Energy still has a gap in user operation compared with the brand belonging established by the new power of car building. BAIC Langu internal staff said, "this year will be more difficult. Polar Fox does not have a new car and can only rely on two existing models, while BEIJING brand sales are not good and profitability is low."

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