AutoBeta(AutoBeta.net)07/21 Report--

On the evening of July 19, BAIC Langu announced that Liu Yu would no longer hold the position of director and chairman of the company due to work reasons, and would no longer hold any position after his resignation; Dai Kangwei would no longer hold the post of manager of the company due to work reasons, and the board of directors agreed to elect Dai Kangwei as chairman of the company, Zhang Guofu as general manager of the company, and Liu Guanqiao as deputy general manager of the company.

According to the data, Liu Yu was born in November 1976. He has a Master of Business Administration from Beijing Institute of Technology and is a veteran of the Beijing Automobile Department. Since 2012, he has served as Deputy General Manager and General Manager of Beijing Automobile sales Co., Ltd., Director of Purchasing Center of Beijing Automobile Co., Ltd., Vice President of Beijing Automobile Co., Ltd., General Manager of Beijing New Energy Automobile Co., Ltd., chairman and general manager of Beijing New Energy Automobile Co., Ltd. After resigning due to job changes, Liu Yu no longer holds any position in BAIC Blue Valley New Energy Technology Co., Ltd., and is currently the deputy general manager of BAIC Group.

Dai Kangwei succeeded Liu Yu as chairman of BAIC Blue Valley, the first female chairman of a Chinese car company. Data show that Dai Kangwei was born in June 1983, Han nationality, doctor of mechanical engineering in Beijing Institute of Technology. Since 2008, he has served as Software Development engineer of New Energy Technology Center of BAIC Futian Research Institute, Deputy Minister of Development and Management Department of New Energy system Development Institute, engineer of system Integration and Calibration Section, Chief of system Integration and Calibration Section, Assistant Director of Technology Center, Deputy Minister of Strategic Development Department, Assistant Dean and Vice President of BAIC New Energy Engineering Research Institute. From April 2021 to July 2024, he served as the director and general manager of Beijing New Energy Automobile Co., Ltd. From June 2021 to July 2024, he served as the general manager and director of BAIC Blue Valley New Energy Technology Co., Ltd. Since July 2024, he has been the Deputy Chief engineer (Assistant General Manager) of Beijing Automobile Group Co., Ltd., the chairman of Beijing New Energy Automobile Co., Ltd., and the chairman of BAIC Blue Valley New Energy Technology Co., Ltd.

In addition, BAIC Langu also issued an announcement, because Beijing Automobile and Ruili enterprises cooperate in the production of pure electric new energy passenger vehicles related assets and business do not have the conditions to inject into listed companies, the controlling shareholder BAIC Group's commitment to avoid inter-industry competition has been postponed. It is understood that BAIC Blue Valley carried out a major asset restructuring in 2018. Among the enterprises controlled by BAIC Group, Beijing Automobile and its controlled enterprises, Jiangxi Changhe Automobile, BAIC (Zhenjiang) Automobile, Ruili Automobile, and Beijing Baowo produce a small amount of pure electric new energy passenger cars while producing fuel cars, or there are plans to produce pure electric new energy passenger cars. BAIC promised to solve the problem of producing pure electric new energy passenger cars with listed companies during the six-year transition period from the date of completion of the restructuring. Now because Beijing Automobile and Ruili enterprises cooperate in the production of pure electric new energy passenger vehicles, the assets and business related to injection into listed companies are not available for the time being, BAIC intends to extend the transition period by five years.

According to the annual 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 the fourth year of BAIC Langu's annual loss, 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.

On July 9, BAIC Langu issued a semi-annual performance forecast that the company expects the net loss attributed to shareholders of listed companies to be 2.4 billion yuan to 2.7 billion yuan in the first half of 2024, which is larger than the same period last year. It is estimated that the net loss attributable to shareholders of listed companies after deducting non-recurring gains and losses is 2.45 billion yuan to 2.75 billion yuan.

For losses, BAIC Langu said, on the one hand, due to the increasingly fierce competition in the new energy vehicle market, the price war is becoming increasingly fierce, squeezing profit margins; on the other hand, in order to continue to promote the high-end development of products, the company continues to invest in technology research and development, brand channel construction, brand image sharpening, and operational efficiency improvement, so it has a certain impact on short-term performance.

It is worth mentioning that on the last trading day of the week, before the announcement of personnel changes, BAIC Blue Valley shares suddenly collapsed, closing down 9.97% to 9.21 yuan, with a total market capitalization of 51.3 billion yuan.

On the news side, BAIC Langu Magna Automobile Co., Ltd. recently filed a recall plan with the State Administration of Market Supervision and Administration, due to longer braking distance caused by brake fluid leakage, resulting in safety risks. BAIC Langu Magna Automobile decided to recall some of the alpha T and Alpha S pure electric vehicles produced between November 2, 2021 and June 10, 2022, totaling 3418.

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat