Beijing Electric Vehicle Group’s new energy vehicle company, Beiqi Blue Valley, released its financial report, showing a net loss of 5.4 billion yuan last year. In the first quarter of this year, the company continued to incur losses, accumulating a total of 22.5 billion yuan in losses over the past four years, earning itself the title of “King of Losses” in the industry. Additionally, four other new energy vehicle companies collectively reported losses of 37.77 billion yuan last year.
Recently, Beiqi Blue Valley disclosed its 2023 annual report and the first-quarter report for 2024. The financial report revealed that the company incurred a net loss of 5.4 billion yuan last year, marking the fourth consecutive year of losses. Prior to 2023, the company reported losses of 6.482 billion yuan, 5.244 billion yuan, and 5.465 billion yuan in 2020, 2021, and 2022 respectively, summing up to a total loss of 22.5 billion yuan over four years.
Beiqi Blue Valley attributed the loss in 2023 to the increasingly fierce competition in the new energy vehicle market, with the company continuously investing in core capabilities such as technology research and development, which had a certain impact on its short-term performance.
Moreover, the net cash flow generated from operating activities by Beiqi Blue Valley in 2023 was -465 million yuan, a decrease of 113.2% compared to the previous year.
On the same day, Beiqi Blue Valley released its first-quarter report for 2024, indicating that the company generated revenue of 1.505 billion yuan, a 39.75% decrease compared to the previous year. The net profit attributable to the parent company in the first quarter was a loss of 1.016 billion yuan, compared to a loss of 892 million yuan in the same period last year, further widening the losses.
Beiqi Blue Valley explained that the decline in revenue and expanded losses were mainly due to a decrease in sales volume. Data showed that Beiqi Blue Valley sold 10,122 vehicles in the first quarter, a 33.03% decrease year-on-year.
Beiqi Blue Valley is a new energy vehicle company under the state-owned Beijing Automotive Group, established in 2018. The company currently owns two major brands, BJEV and BAIC.
In 2023, the Chinese automotive market witnessed a widespread price war, leading to increased industry pressure and a contraction in profitability for traditional fuel vehicle businesses, while the new energy vehicle market was generally in a state of declining profits or losses.
As a new force in China’s car manufacturing industry, NIO achieved profitability in 2023 after five consecutive years of losses. However, three other car manufacturing companies remained in a state of significant losses in 2023.
Among them, XPeng Motors reported a net loss of 10.38 billion yuan, with the loss margin expanding by 13.6% year-on-year. NIO recorded a net loss of 20.72 billion yuan in 2023, bringing its total losses over the past six years to over 86 billion yuan. Lastly, Leap Motor reported a net loss of 4.22 billion yuan in 2023, slightly down from 5.11 billion yuan in the previous year. The combined losses of these three companies in 2023 amounted to 35.32 billion yuan.
Moreover, Siasun, a car company in partnership with Huawei, disclosed in its 2023 annual report released on April 29th that its net profit attributable to the parent company was a loss of 2.45 billion yuan in 2023, compared to a loss of 3.832 billion yuan in the same period last year. Its non-recurring net profit was a loss of 4.817 billion yuan, compared to a loss of 4.296 billion yuan in the same period last year.
The financial statements of Siasun showed that the company reported a net loss of 1.824 billion yuan in 2021 and 3.832 billion yuan in 2022. Combining these with the losses reported in 2023, the total accumulated losses over the three years exceeded 8.1 billion yuan.