Beijing Automotive Group’s new energy vehicle company, Beijing New Energy Blue Valley, incurred a record high loss of 2.571 billion yuan (RMB) in the first half of the year, marking the largest loss in the same period in the company’s history. Known as the “king of losses” in the industry for the past four and a half years, Beijing New Energy Blue Valley has accumulated losses of 25.161 billion yuan.
On the evening of August 26th, Beijing New Energy Blue Valley released its semi-annual report, showing that the company achieved a revenue of 3.741 billion yuan in the first half of this year, a 35.16% decrease compared to the same period last year. The loss expanded to 2.571 billion yuan, the largest loss in the company’s history for the same period, compared to 1.979 billion yuan in losses in the same period last year.
Beijing New Energy Blue Valley attributed the losses to two main reasons: firstly, the increasingly fierce competition in the new energy vehicle market has led to intense price wars, squeezing profit margins; secondly, the company continues to invest in the development of high-end products in terms of technological research and development, brand channel construction, and operational efficiency improvement, which has had a certain impact on the company’s short-term performance.
Prior to this, Beijing New Energy Blue Valley had been incurring losses for four consecutive years, with accumulated losses of 22.59 billion yuan. Adding to this year’s first-half losses, the cumulative losses over four and a half years reached 25.161 billion yuan.
In the first half of the year, Beijing New Energy Blue Valley sold approximately 28,000 new cars, a significant decrease from the 35,200 units sold in the same period last year. Among them, the “Ji Hu” brand sold 18,000 units.
During the same period, WM Motor and Xpeng delivered over 180,000 new cars, Aiways reached the level of 170,000 units, NIO and Leapmotor delivered nearly 90,000 units, while Neta and Xiaopeng delivered 50,000 new cars.
Established in 2018, Beijing New Energy Blue Valley focuses on pure electric passenger vehicle business and is controlled by Beijing Automotive Group Co., Ltd. Before partnering with Huawei to launch the “Enjoy World” brand, Beijing New Energy Blue Valley mainly operated under the “Ji Hu” and “BEIJING” brands.
The “Ji Hu” brand is a high-end intelligent new energy vehicle brand created by Beijing New Energy Blue Valley in a joint venture with the globally renowned parts supplier Magna. The “BEIJING” brand primarily promotes the EU series targeting the mid-to-low-end new energy market.
Currently, the main selling models under the “Ji Hu” brand, the “Alpha T5”, “Ji Hu Koala”, and the new “Alpha S,” are priced between 155,800 to 199,800 yuan, 119,800 to 169,800 yuan, and 176,800 to 216,800 yuan, respectively. These three models do not reach the industry’s typical definition of the “high-end market threshold” of 300,000 yuan.
It’s worth mentioning that starting from the fourth quarter of 2023, Beijing Electronics Holdings Co., Ltd. began a large-scale reduction of its holdings in Beijing New Energy Blue Valley.
In the fourth quarter of 2023, Beijing Electronics Holdings reduced its holdings by 25.8859 million shares of Beijing Blue Valley, reduced by 145 million shares in the first quarter of 2024, and continued to reduce by 42.6399 million shares in the second quarter of 2024, with a total reduction of approximately 213 million shares over the three quarters.
Currently, Beijing Electronics Holdings still holds 57.4859 million shares of Beijing Blue Valley, accounting for 1.03% of the total share capital.