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

On April 26, BAIC Blue Valley disclosed its 2023 financial results. According to the financial report, BAIC Blue Valley achieved an operating income of 14.319 billion yuan in 2023, an increase of 50.5% over the same period last year; a net loss of 5.4 billion yuan, compared with a net loss of 5.465 billion yuan in the same period; a net loss of 6.018 billion yuan, compared with a net loss of 5.838 billion yuan in the same period. According to the announcement, Beijing New Energy Automobile Co., Ltd. posted a net loss of 2.243 billion yuan in 2023, while Beijing Langu Jihu Automobile Technology Co., Ltd. lost 3.347 billion yuan.

It is understood that this is BAIC Langu's annual loss for four consecutive years, with net losses of 6.482 billion yuan, 5.244 billion yuan, 5.465 billion yuan and 5.4 billion yuan respectively from 2020 to 2023, with a cumulative loss of 22.5 billion yuan over four years. In terms of cash flow, BAIC Blue Valley is also under pressure. the net cash flow generated by operating activities in 2023 is-465 million yuan, while the net cash flow in the same period is 3.522 billion yuan. The company explained that it was mainly due to a combination of the current payment due and the reduction in tax rebates received.

As for the main reasons for performance losses, BAIC Langu once said that the company's product sales are still in a period of rapid improvement, and the scale effect has not been shown yet, resulting in high product costs; with the late launch of new products, the product structure is gradually enriched, the channel construction is further improved, and the company's product sales and profitability are expected to be continuously improved.

BAIC Blue Valley has two major brands, ARCFOX extreme Fox and BEIJING New Energy. BAIC Blue Valley sold 92172 vehicles in 2023, an increase of 83.69% over the same period last year, of which 30016 were ARCFOX polar foxes, an increase of 138% compared with the same period last year. Sales of electric vehicles under the Regent BEIJING brand were 62156, an increase of 66%.

On the same day, BAIC Langu also released its quarterly report for 2024, which showed that during the reporting period, operating income reached 1.505 billion yuan, down 39.75% from the same period last year, with a net loss of 1.016 billion yuan, compared with a loss of 892 million yuan in the same period. BAIC Langu said that the decline in revenue and the expansion of losses were mainly due to the decline in sales. Data show that BAIC's blue valley sales in the first quarter were 10122 vehicles, down 33.03% from a year earlier.

ARCFOX polar fox is a high-end intelligent new energy vehicle brand built by BAIC Blue Valley. Its two models, polar fox alpha T and polar fox alpha S, have been delivered on the market. As a high-end new energy brand, although the sales of ARCFOX polar fox soared in 2023, it still accounts for a small share of the market, and it still lags behind other high-end new energy brands of traditional car companies. For example, Geely's polar krypton delivered 118700 vehicles in 2023, and Dongfeng Lantu exceeded 50, 000, making it one of the few car brands to achieve its annual target.

In 2024, BAIC Langu's development goal may mainly focus on the "enjoy the world" brand. Hangjie, a joint auto brand of BAIC Blue Valley and Huawei, is the third car brand under Hongmeng Zhixing, which was previously built with Cyrus and Chery respectively.

The Hengjie S9, the first pure electric car created by Huawei in cooperation with BAIC Blue Valley, is a positioning executive business car with single-motor and dual-motor models on power. it made its debut at the 2024 Beijing Auto Show and is expected to be officially launched in June. the price is above 500000.

According to the real cars unveiled at the 2024 Beijing Auto Show, the Hengjie S9 adopts a simple design style, with a closed grille design on the front face, a C-shaped headlamp group on both sides, a through light belt in the middle, and the English logo of the "STELATO" brand in the center. In addition, a wide trapezoidal vent is used around the front of the new car to create a certain sports atmosphere. In the rear part of the car, the license plate has a "Hongmeng Zhixing" label, the lower right corner of the rear door is Hangjie S9, the lower left corner is BAIC New Energy, and the center of the rear door is STELATO. In terms of size, the length, width and height of the new car are 5160/1987/1486mm, the wheelbase is 3050mm, and the C-class pure electric car is located.

From the point of view of the press conference, BAIC Blue Valley did not choose to lie flat, but BAIC Blue Valley has too many shortcomings to make up from technology to marketing, from offline channel construction to after-sales, from product strength to production capacity, and so on. It's just that the market leaves BAIC Blue Valley time to make up for these shortcomings, how much more?

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