BAIC BluePark forecasts annual net loss of up to 5.3 billion yuan in 2021

Shanghai (Gasgoo)- BAIC BluePark New Energy Technology Co., Ltd. (called “BAIC BluePark” for short), the parent of Chinese NEV maker BAIC BJEV, claimed on Jan. 29 it is likely to record a net loss of 4.8 billion yuan ($754.563 million) to 5.3 billion yuan ($833.163 million) in 2021, shrinking from a net loss of around 6.482 billion yuan ($1.019 billion) for the previous year.

ARCFOX αS HI; photo credit: BAIC BluePark

Excluding the impact of non-recurring gains and losses, BAIC BluePark's 2021 net loss is forecasted to be 5 billion yuan ($786.003 million) to 5.5 billion yuan ($864.603 million), compared to a net loss of 6.646 billion yuan ($1.045 billion) generated in 2020.

According to the company, the lower-than-expected auto outputs and sales, which resulted from such factors as the coronavirus pandemic and raw materials supply constraint, made the existing gross margin fail to cover inherent costs. The impact of this issue led to a net loss of around 2 billion yuan ($314.401 million) to 2.5 billion yuan ($393.001 million).

Besides, around 1.7 billion yuan ($267.241 million) worth of net loss stemmed from the increase in expenses for advertising, operation and other businesses as the company is vigorously pushing ahead with the implementation of the "going upscale" strategy and the building of sales and service channels for ARCFOX brand.

Moreover, the larger investment in R&D business caused about 1.1 billion yuan ($174.5 million) in annual net loss.