Baic BluePark's business situation in the first half of this year was even more severe, with a record high loss.
On the evening of August 26, the financial report released by Baic BluePark (600733.SH) showed that the company's revenue in the first half of this year was 3.74 billion yuan, a year-on-year decrease of 35.2%, and the net loss reached 2.57 billion yuan, an increase of 29.9% year-on-year, which is the largest loss in the same period in the company's history.
Regarding the reasons for the loss, Beijing BluePark stated in the announcement that the competition in the new energy vehicle market is becoming more and more fierce, and the price war is becoming increasingly intense, squeezing the profit space; the company continues to invest in the development of products towards high-end, in technology research and development, brand channel construction, brand image sharpening, and operational efficiency improvement, which has a certain impact on the company's short-term performance.
It is worth noting that Baic BluePark has been losing money for several consecutive years. From 2020 to 2023, the losses were 6.48 billion yuan, 5.24 billion yuan, 5.47 billion yuan, and 5.4 billion yuan, respectively, with a cumulative loss of 25.161 billion yuan in four and a half years.
Low sales volume is the main factor for Baic BluePark's poor performance, which directly led to a significant decrease in revenue in the first half of the year. In the first half of this year, Baic BluePark's sales volume decreased by 20.4% year-on-year to 28,000 units. At present, Baic BluePark mainly has two brands, Arcfox and BEIJING. Among them, the high-end brand Arcfox is seen as the key to turning around Baic BluePark's market dilemma. In the first half of this year, the sales volume of the Arcfox brand reached 18,000 units, which is a year-on-year increase of 110.2%, but there is still a big gap with the sales volume of mainstream new energy vehicle manufacturers.
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In the past two years, Arcfox has made various attempts in product construction, including scenario-based car manufacturing and cooperation with Huawei HI version model, but the market response to these products is generally not as expected. At present, the models on sale under Arcfox include Alpha T5, Arcfox Koala, Alpha S5, Alpha S, and Alpha T. Among them, the sales volume of Alpha T5 in the first half of the year reached 16,000 units, accounting for an absolute sales volume in the Arcfox brand, and the total sales volume of other products in the first half of the year was only 2,000 units, which means that these models have almost no voice in the market.
On August 14, 2023, Baic BluePark announced a smart selection cooperation with Huawei, and the first car, Xiangjie S9, was launched on August 6 this year, with two versions launched, the MAX rear-wheel drive long-range version priced at 399,800 yuan, and the Ultra four-wheel drive flagship version priced at 449,800 yuan. The car is a full-scene smart flagship sedan of Huawei Hongmeng Smart Travel, and Huawei's Executive Director, Chairman of Terminal BG, Yu Chengdong said that Xiangjie S9 has set a new benchmark for the comfort of D-class luxury sedans. However, from the price range, the competitors of Xiangjie S9 are high-end luxury sedans such as BMW 5 Series, Audi A6, and Mercedes-Benz E-Class. At the launch of Xiangjie S9, Zhang Jianyong, the new chairman of BAIC Group, said that Xiangjie S9 is the core strategy and is raised to the first height, "All in" Xiangjie S9.
At present, the members of Hongmeng Smart Travel include Aito (Huawei's cooperation with Seres), Zhiji (Huawei's cooperation with Chery), Xiangjie, and Zunjie (Huawei's cooperation with JAC). Among them, the series of products launched by Aito are relatively popular, but the market performance of the first sedan Zhiji of Hongmeng Smart Travel is not optimistic, and whether Xiangjie can replicate the success of Aito still needs market observation. The latest data shows that Xiangjie S9 has broken through 8,000 orders in 20 days after its launch.
Regarding the risks and challenges that the company may face in the 2024 business process, Baic BluePark said that the competition in China's electric vehicle industry is intensifying, and the products of major car companies are accelerating the update and iteration, and the competition between car companies has entered a white-hot stage. In order to continue to compete for market share, they have successively adopted price reduction strategies. At the same time, new energy vehicles are rapidly developing towards intelligence and networking, and the rapid iteration of technology has shortened the production cycle and life cycle of products, and new challenges have emerged in design, production, and manufacturing capabilities. The company will ensure steady development and maintain long-term competitiveness through continuous technological innovation, cost control, and market strategy adjustment.
In addition, it is worth noting that Baic BluePark has recently undergone personnel changes. The announcement released on July 19 shows that the company recently received written resignation reports from Chairman Liu Yu and Manager Dai Kangwei. Liu Yu, due to work reasons, no longer serves as a director and chairman of the tenth board of directors of the company, and the director of the board's strategic committee, and will no longer hold any position in the company after resigning; Dai Kangwei, due to work reasons, no longer serves as the manager of the company. In addition, the company's board of directors agreed to elect Dai Kangwei as chairman, and nominated Zhang Guofu as a candidate for the board of directors, and appointed Zhang Guofu as the manager and Liu Guanqiao as the deputy manager.
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