AutoBeta(AutoBeta.net)10/31 Report--

On October 30th, BAIC Langu released its latest quarterly results, showing that operating income in the first three quarters was 5.707 billion yuan, down 6.41% from the same period last year, while the net loss of shareholders belonging to listed companies was 3.5 billion yuan, down 32.35% 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.

BAIC Langu, formerly known as BAIC New Energy, which began to operate independently in 2009, is the first company in China to obtain the qualification for the production of new energy vehicles. In the early days of its establishment, BAIC New Energy mainly focused on B-end markets such as taxi, car-hailing and car rental industry. relying on cost-effective EU and EX series, BAIC New Energy won the title of domestic new energy sales for seven consecutive years from 2013 to 2019. However, as the B-end market becomes 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 increased by 0.82% in 2021 compared with the same period last year, under the background that the new energy vehicle market continues to double, BAIC's new energy performance is obviously very "ugly".

In addition to the decline in sales, BAIC Blue Valley's performance is also very ugly. BAIC Blue Valley changed from profit to loss in 2020, with a net loss of 6.476 billion yuan that year, narrowed to 5.244 billion yuan in 2021, and a loss of 3.5 billion yuan in the first three quarters of 2022. BAIC Blue Valley lost more than 15 billion yuan in just over two years.

BAIC Langu has two brands of new energy vehicles, one is polar fox (ARCFOX brand), and the other is BAIC new energy (BEIJING brand). Among them, polar fox is a high-end electric car brand for C-end. At present, two models are on sale, including Alpha T and Alpha S models. Among them, Alpha S Huawei HI version was officially launched on May 7, and two new models were launched. The selling price is 397900 yuan and 429900 yuan respectively. It is understood that the HI version is the abbreviation of Huawei Inside mode, which is equipped with Huawei's full-stack intelligent car solution, integrated Huawei intelligent high-order self-driving system, Hongmeng OS Smart + connected cockpit, etc., representing Huawei's highest level of self-driving. Xu Zhijun, Huawei's rotating chairman, said: "not all cars with parts provided by Huawei can be marked with HI's LOGO. Only cars with our self-driving solution can be marked with HI's LOGO."

Huawei currently has three modes of cooperation with automotive companies: 1, selling soft and hard parts to automotive companies, that is, Huawei simply acts as an upstream supplier; 2, Huawei Inside (HI) model, that is, cooperation to develop customized complete self-driving and intelligent cockpit and other overall full-stack solutions; 3, Huawei smart car selection mode, that is, Huawei is deeply involved in product definition, vehicle design and channel sales.

The cooperation between Jihu and Huawei is the second model, which is led by itself, and Huawei provides technical support. Unlike the QQ series, which can be fully connected to Huawei channels and can be test-driven and sold in Huawei stores, Jihu can only rely on its own and BAIC's sales system. Huawei, as a helper, offers only some retail stores for display. According to the number of risks, the Jihu brand sold a total of 8138 vehicles in the first three quarters of 2022, including 3431 Alpha T and 4707 Alpha S.

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.

The new energy vehicle industry is still in the growth stage, and the second half of the competition has just begun. For BAIC Langu, through brand activities, more and more people know and appreciate polar foxes, which also lays a user foundation for the development of polar foxes in the second half of building cars. Yes, especially the high-end market in which the polar fox is located. In recent years, with the deepening of user awareness, more and more users tend to choose domestic high-end brands, which is very important to the mental occupation of users.

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