AutoBeta(AutoBeta.net)08/28 Report--

On August 26, BAIC Blue Valley disclosed its interim financial results for 2024. According to the financial report, BAIC Langu achieved revenue of 3.741 billion yuan in the first half of 2024, down 35.16% from the same period last year. While revenue declined, the loss further expanded, with a loss of 2.571 billion yuan in half a year, which was the largest loss in BAIC Blue Valley history in the same period, with a loss of 1.979 billion yuan in the same period. According to the announcement, Beijing New Energy Automobile Co., Ltd. posted a net loss of 1.2 billion yuan in 2023, while Beijing Langu Jihu Automobile Technology Co., Ltd. lost 1.45 billion yuan.

BAIC Langu said that the decline in revenue in the first half of the year was mainly due to a decline in vehicle sales during the period, resulting in a year-on-year decline in revenue. BAIC's blue valley sales in the first half of the year were 28011, down 20.40% from a year earlier, according to the data. As for the expansion of losses, BAIC Langu said that on the one hand, the competition in the new energy vehicle market is becoming more and more fierce, the price war is becoming increasingly fierce, squeezing profit margins; on the other hand, in order to continuously 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 the company's short-term performance.

If nothing happens, 2025 will be BAIC's fifth year of losses. Previously, from 2020 to 2023, BAIC's net losses of 6.482 billion yuan, 5.244 billion yuan, 5.465 billion yuan and 5.4 billion yuan respectively, plus a loss of 2.571 billion yuan in the first half of the year, resulted in a cumulative loss of more than 25 billion yuan over the past four and a half years. In terms of cash flow, BAIC Blue Valley is also under pressure. the net cash flow generated by operating activities in 2023 is-2.057 billion yuan, while the net cash flow in the same period is-1.58 billion yuan. The company explained that it was mainly due to a decrease in sales and a decrease in sales receipts compared with the same period last year.

BAIC Langu owns three major electric vehicle brands: polar Fox, Beijing New Energy and Hengjie Automobile. BAIC Langu sold 28011 vehicles in the first half of the year, down 20.40% from the same period last year. Retail data show that polar fox sold 17843 vehicles in the first half of the year, with Alpha T5 being the highest with 16346 vehicles. Polar Fox is a high-end intelligent new energy vehicle brand built by BAIC Blue Valley. Its models for sale include Alpha T5, Polar Fox koala, Alpha S5, Alpha S, Alpha T. As a high-end new energy brand, Jihu Motor is not big in the market, and there is still a gap compared with other traditional car companies' high-end new energy brands.

Hengjie Automobile, a joint brand of BAIC Blue Valley and Huawei, is the third brand of Hongmeng Zhihang. The first model, the Hengjie S9, was officially launched on August 6. The new car is located as a large and medium-sized flagship sedan, with a total of Max and Ultra models priced at 399800 yuan and 449800 yuan respectively. The latest data show that the 20-day listing of the Hengjie S9 is set to break through 8000.

As the first model under the brand jointly built by Huawei and BAIC Blue Valley, the Hangjie S9 will compete with Mercedes-Benz EQE, BMW i5, Xilai ET7 and other models. Compared with these competing models, the Hengjie S9 has more advantages in intelligent vehicle configuration with the help of Huawei technology, as well as the new HarmonyOS 4 system, which is expected to give it a better car-machine experience.

BAIC Langu said in the financial report that the competition in China's electric vehicle industry has intensified, the products of major car companies have accelerated to update and iteration, and the competition among car companies has entered a white-hot stage, and price reduction strategies have been adopted in order to continue to compete for market share. At the same time, new energy vehicles are rapidly developing towards intelligence and networking. The rapid iteration of technology shortens the production cycle and life cycle of products, and new challenges appear in design, production and manufacturing capacity.

Not long ago, BAIC Langu adjusted the management of the company. Industrial and commercial changes have taken place in BAIC Langu New Energy Technology Co., Ltd. And Beijing New Energy Automobile Co., Ltd. Liu Yu has been replaced by Dai Kangwei as his legal representative and chairman. At the same time, a number of other key personnel have also changed. Mr. Zhang Guofu was appointed manager of the company and Mr. Liu Guanqiao was appointed deputy manager of the company.

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