BAIC BluePark expects narrower net loss in H1 2023

Beijing (Gasgoo)- BAIC BluePark, the parent company of BAIC BJEV, announced on July 14 that it anticipates a net loss of approximately 1.8 billion yuan to 2.1 billion yuan attributable to shareholders in the first half of 2023. 

ACRFOX αS HI; photo credit: ARCFOX

This represents a slight narrowing of losses compared to the 2.18-billion-yuan net loss in the same period last year.

The company attributed the loss to several factors, stating in its financial report that intensifying competition in the new energy vehicle market has further driven down prices, squeezing profit margins. Additionally, the company is in a continuous growth phase, lacking sufficient economies of scale, which puts ongoing pressure on product costs. BAIC BluePark has been investing consistently in technology R&D, as well as brand and channel development to enhance its market presence, which all affected its financial performance.

However, despite the financial challenges, BAIC BluePark has demonstrated a strong rebound in the first half of 2023, as reflected in the sales data of its subsidiary, BAIC BJEV. During this period, BAIC BJEV achieved a cumulative sales volume of 35,191 vehicles, marking a year-on-year soar of 106.88%, according to data released by the China Passenger Car Association.

Moreover, BAIC BluePark continues to expand its sales channels. According to the company's investor relations activity record, it plans to increase its network of sales outlets to approximately 280 stores by 2023. In addition to focusing on core cities such as Beijing, Shanghai, Guangzhou, and Shenzhen, as well as key markets in Zhengzhou, Chengdu, and Hangzhou, the company aims to establish a presence in third and fourth-tier cities based on criteria such as strong economic vitality, high acceptance of new energy vehicles, and rapid growth in consumer demand.