BAIC Group reports profits growth of 17% year on year in H1

Shanghai (Gasgoo)- BAIC Group reported a 9.5% revenue growth and a 17% profit increase in the first half of this year. Moreover, it delivered 1,203,000 vehicles in the first half of this year with an increase of 7.6% from the previous year.

BAIC Group insisted manufacturing high-end products. During the past six months, Beijing Mercedes-Benz kept robust growth momentum with deliveries reaching 252,000 units, jumping 19.6% from a year earlier. Fujian Mercedes-Benz also posted remarkable sales performance with sales of the Mercedes-Benz V-class and Vito totaling 13,000 units, leaping 40% on an annual basis. Beijing Hyundai posted a year-on-year growth of 26.2% to 380,000 units through June.

BAIC Group also ramps up efforts in new energy vehicle areas. BAIC BJEV handed over 54,000 NEVs during the first half of 2018 with a year-on-year surge of 78.5%. During the first six months, BAIC Group delivered 14,000-unit off-road vehicles, a year-on-year growth of 37%.

According to Jiang Zili, standing committee of the communist party and vice general manager of BAIC Group, the Group will build a complete industrial chain, covering complete vehicle, service trade, parts and financing.

On one hand, BAIC Group is sparing no efforts to promote electrification via cooperating with various industrial partners. For instance, BAIC Group and Daimler jointly invested RMB 11.9 billion to build a China-based plant for Mercedes-Benz luxury cars. BAIC Group and Canadian auto parts supplier Magna also reached a strategic cooperation to set up two joint ventures, in order to build up an R&D and manufacturing center for intelligent pure electric vehicles. The center will manufacture models under ARCFOX, BAIC BJEV's high-end brand.

On the other hand, BAIC Group also vigorously expands strategic emerging businesses on mobility service. Its mobility subsidiary BAIC Mobility Co., Ltd has deployed a total of 18,000 cars by making full use of such technical carriers as big data and "Internet Plus", which refers to the application of the internet and other information technology in conventional industries. Moreover, the mobility service brand dubbed "More Fun" has provided services across 14 cities in China with a total of 5,500 operating cars and has gained 360,000 registered users and 490,000 orders by far.

BAIC will prioritize the construction of Beijing Mercedes-Benz Shunyi plant. In addition, BAIC BJEV plans to build a high-end intelligent factory and a new energy power system base with investment totaling RMB 7 billion. 

What's more, BAIC Group will further deepen the reform of state-owned company. BAIC BJEV targets to go public in the third quarter and will be the first listed NEV company on A-share stock market in China. BAIC Rocar will start its IPO in H-share stock market in the future.