Tech Innov. Surge; A-shares Boost R&D.

BAIC BluePark (600733) has another major move!

On the evening of September 2, BAIC BluePark announced that its subsidiary BAIC New Energy plans to increase its capital and expand its shares by publicly listing on the Beijing Property Exchange to introduce strategic investors, with the amount of increased capital not exceeding 10 billion yuan. After the successful implementation of this capital increase, the company will remain the controlling shareholder of BAIC New Energy.

According to the introduction, on the premise of the continuous operation assumption on the evaluation base date, the total equity value of Beijing New Energy shareholders, evaluated by the market method, is 25.716 billion yuan, which is an increase of 18.877 billion yuan compared to the equity attributable to the parent company's shareholders of 6.839 billion yuan, with an appreciation rate of 276.03%.

Advertisement

BAIC BluePark also announced on the evening of September 2 that the company's shareholder, Beijing Automotive Co., Ltd. (hereinafter referred to as "Beijing Automotive"), plans to increase its capital in the subsidiary BAIC New Energy by 2 billion yuan.

Both BAIC BluePark and Beijing Automotive's controlling shareholders are Beijing Automotive Group Co., Ltd.

The main business of BAIC New Energy is the research and development, production, sales, and service of pure electric new energy vehicles and core components. It is the first enterprise in China to operate independently and the first to obtain the production qualification for new energy vehicles. It is also one of the leading new energy vehicle enterprises in China in terms of technology.

BAIC BluePark directly holds 99.99% of the equity of BAIC New Energy and holds 0.01% of the equity of BAIC New Energy through Beijing BluePark Arctic Fox Automobile Technology Co., Ltd., holding a total of 100% of the equity of BAIC New Energy.

According to the announcement, in 2023 and from January to June 2024, BAIC New Energy achieved operating incomes of 15.186 billion yuan and 4.527 billion yuan, respectively, and achieved net profits of -2.184 billion yuan and -1.124 billion yuan, respectively. In just one and a half years, the cumulative loss exceeded 3.3 billion yuan.

Public data shows that in 2023, BAIC New Energy sold 92,200 new vehicles throughout the year, a year-on-year increase of 84%. Among them, in December 2023, BAIC New Energy's monthly sales volume was 20,800 vehicles, a year-on-year increase of 111.04%. The main contribution to the significant increase in sales of BAIC New Energy in 2023 was the contribution of the Arctic Fox brand, which is positioned as a high-end new energy vehicle brand under BAIC BluePark. In 2023, the Arctic Fox brand sold 30,000 new vehicles throughout the year, a year-on-year increase of 138%.

The latest data disclosed by BAIC BluePark on September 2 shows that BAIC New Energy's production volume in August was 12,474 vehicles, and the sales volume was 13,076 vehicles. From January to August, the cumulative production volume was 42,527 vehicles, a year-on-year increase of 388.09%; the cumulative sales volume was 52,068 vehicles, a year-on-year increase of 12.15%.BAIC BluePark disclosed its semi-annual report on the evening of August 26th, revealing that the company achieved a revenue of 3.741 billion yuan in the first half of 2024, a year-on-year decrease of 35.16%; the net profit loss was 2.571 billion yuan, compared to a loss of 1.98 billion yuan in the same period of the previous year.

It is reported that the competition in the new energy vehicle market is becoming increasingly fierce, with price wars intensifying and squeezing profit margins. The company continues to invest in research and development, brand channel construction, brand image sharpening, and operational efficiency improvement to promote the high-end development of its products, which has had a certain impact on the company's short-term performance.

BAIC BluePark is still committed to creating high-quality new energy vehicles. In the semi-annual report, the company introduced that in the first half of the year, it launched the new product Alpha S5, forming a dual pure electric product lineup with Alpha T5, achieving product coverage in the mainstream market of 150,000 to 200,000 yuan; at the same time, leveraging the Beijing Auto Show, it launched the high-end intelligent driving product - Alpha S Advanced Edition PRO, becoming the only Huawei series intelligent driving product in the industry's 250,000 yuan price range that comes standard with a 3-laser radar solution.

In addition, the company has launched the "Enjoy World" series of models in cooperation with Huawei. The Enjoy World S9, as the first model, was officially launched on August 6, 2024.

BAIC BluePark stated that in response to the growing travel needs of large families in China, the company has already started researching and developing several new models and conducting pre-research on the iteration of existing products. This move will further meet the diversified and all-scenario vehicle needs of the current market target audience.