AutoBeta(AutoBeta.net)06/08 Report--

BAIC New Energy sales released in May, May sales of 9009 units, down 50% year-on-year; the previous May cumulative sales reached 39087 units, down 19.83% year-on-year, the overall situation is not very optimistic.

It is worth noting that there has been a huge difference in BAIC's new energy production and sales since the beginning of this year. Cumulative production in the first five months was only 5236, down 86.6% from a year earlier, meaning BAIC New Energy spent the first half of the year clearing the backlog of cars.

In fact, affected by market demand and the decline of state subsidies, the growth rate of new energy vehicle sales has slowed down. In April this year, domestic production and sales of new energy vehicles completed 102000 and 97000 respectively, an increase of 25.0% and 18.1% respectively over the same period last year. Although the growth rate has dropped sharply, it still maintains proportional growth. BAIC New Energy used to be the first pure electric vehicle sales in China, but now sales continue to decline, and there are great factors affecting its own brand and product problems.

BAIC New Energy has received more than 1.5 billion yuan in subsidies this year.

Beijing New Energy vehicle Co., Ltd., a subsidiary of BAIC Blue Valley, recently received 24.93 million yuan in central liquidation subsidies for new energy vehicles in 2015, according to the notice of the Beijing Municipal Bureau of Finance on the allocation of subsidies for central liquidation of new energy vehicles in Beijing.

At the same time, according to the notice of the Beijing Municipal Bureau of Finance on the advance allocation of central subsidies for the promotion and application of new energy vehicles, BAIC New Energy recently received 1.13044 billion yuan of central subsidies for the promotion and application of new energy vehicles in 2017 and 2018.

The subsidy funds for new energy vehicles announced above amount to 1.155 billion yuan.

In January this year, BAIC New Energy also received 350 million yuan in industrial support funds from the Finance Bureau of Beijing Economic and technological Development Zone and 20 million yuan in industrial support funds from Huanghua Municipal Government.

It means that BAIC New Energy has received more than 1.5 billion subsidies and support funds so far this year.

In 2018, BAIC Langu's operating income was about 16.438 billion yuan, an increase of 43.02 percent over the same period last year, while the net profit belonging to shareholders of listed companies was 155 million yuan, an increase of 161.21 percent over the same period last year. However, the company's net profit after deducting non-recurrent profit and loss was 729 million, while the non-recurrent profit and loss mainly came from government subsidies, which were included in the current profit and loss of 918 million yuan in 2018.

Some industry insiders said that the subsidy to BAIC Blue Valley will help ease the current operating pressure of BAIC New Energy.

In March this year, Xu Heyi, chairman of BAIC, expressed his views on the environmental problems of the new energy industry, which were hotly discussed online: Tesla brings strong pressure to successful car companies, and those new energy vehicles that rely on subsidies will have a hard time. Whether they can survive or not will be a big problem. After all, no matter how much subsidies are given, they will not be able to make up for hematopoiesis.

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