11.7 billion losses in 2 years! Another domestic pure electric car company is facing delisting, and has been the first in sales for 7 consecutive years

With the continuous development and improvement of electric vehicle technology in mainland China, domestic electric vehicles also occupy a leading position in the Asian and European markets. Not only that, domestic electric vehicles are not only guaranteed in quality, but also quite preferential in price. Not long ago, SAIC Motor and Great Wall Motors simultaneously announced the adjustment of product prices. In this way, the domestic electric vehicles that originally occupied the price advantage will have more advantages. Unfortunately, one of the new energy vehicle brands has been elected for 7 consecutive years, but due to the decline in profits, which brand is facing the risk of delisting? Let's see.

First, new energy vehicles, domestic new energy vehicles originally had an advantage in the market, not long ago SAIC and Great Wall Motors launched a price offensive in Thailand. At the same time, the two companies announced that they will further reduce the price of pure electric vehicles. In this way, the domestic electric vehicles that were originally dominant will be more dominant. As soon as this news came out, many Nissan auto companies were under pressure. After all, the advantage of Japanese cars is gasoline cars, not new energy vehicles. After the price adjustment of domestic electric vehicles, the price of electric vehicles is almost half of that of Nissan. In this comparison, consumers will of course prefer low-cost products. Therefore, if other brands of cars want to compete with domestic electric vehicles in the market, it may take time to improve production technology and the quality of the car.

In recent years, domestic auto brands have deployed new energy vehicles, such as steam, GAC, BYD and so on. In addition, pure electric vehicle brands have poured into the market together, such as Wei rui, PengPeng, Wei Ma and so on. The competition between various brands in the same competition can be described as quite lively. Not only that, but various car types also give consumers more choices. Unfortunately, there is no longer a brand shadow in the new energy vehicle brand. You know, at the time when the brand momentum is at its strongest, it has occupied the first place in pure tram sales for 7 consecutive years. This brand is BAIC BJEV. (William Shakespeare, American writer).

Second, BAIC BJEV, previously, BAIC Blue Valley, a listed company behind BAIC BJEV, announced its financial report for 2021. According to the report, the company's operating income was 8.697 billion yuan. The deficit in 2021 exceeded KRW 5.244 billion, and in 2020 it was 6.482 billion won. Beiqi Blue Valley has lost more than 11.7 billion won for two consecutive years. According to the operating requirements of listed companies, enterprises continue to lose money and will face the danger of passive withdrawal. If Beiqi Blue Valley can't turn losses into profits, the future development is really worrying. In fact, the results of BAIC BJEV's operations are not surprising. Not only BAIC BJEV, but also many electric vehicle companies, including BYD, are in a state of low profit or loss. Today, this is the case in large factories. The days of small brand electric vehicles are even more difficult. For example, domestic sales champion BYD electric vehicles are now only maintaining a small profit level. Pengpeng Motor lost KRW 4.483 billion in 2021. Not only that, Ideal Auto also lost 1.02 billion won, and Veri Automobile also lost money. In fact, if it is the installation stage of a new car, there is no need to worry too much about short-term deficits. As long as you get through the pre-market dilemma, everything will be extremely calm. But today, the deficit of Beiqi Blue Valley is not limited to the new car construction stage, and the sales of new energy electric vehicles are declining year by year.

Not only that, BAIC BJEV has gradually left the mainstream market. At first, starting with the decline in mayor/market share, it gradually disappeared into the market. Even if consumers buy, as a complaint about BAIC BJEV, there is also a reputation for BAIC BJEV. in Shakespeare (It is reported in the American TV series that BAIC BJEV's electric vehicle production reached 13,200 units, and only 6,369 pure electric vehicle models in 2021, which is half of the 2020.) In 2021, BAIC BJEV sold 26,100 electric vehicles, but most of them were the result of discount promotions. Nortel Motors could have had a place in the electric vehicle market, but why did it fall from the peak to the bottom after just two years? What difficulties has BAIC BJEV encountered in the course of operation in the past two years?

Third, BAIC BJEV's forecast In fact, BAIC BJEV is the first automobile manufacturer in China to obtain new energy quality. If BAIC BJEV can develop steadily, it will definitely develop better and better. Coupled with the aura of BAIC BJEV itself, which belongs to bail-chi group, it can be said that the momentum is quite fierce. (William Shakespeare, American writer). In 2013, BAIC BJEV began to concentrate on the production of new energy electric vehicles. That year, BAIC BJEV reversed most of the mayor/market share and occupied the first place in electric vehicle sales. BAIC BJEV has received a large number of taxi and online car orders. Not only that, BAIC BJEV will make the current sales champion BYD far behind. (William Shakespeare, Northern Exposure(US TELEVISION),) In 2018, BAIC BJEV sold 158,000 electric vehicles. In just one year, BAIC's new energy vehicle sales began to decline, with sales of 156,000 units. In fact, from 2013 to 2019, for a total of 7 years, BAIC BJEV electric vehicles have been the sales champions of the market. However, BAIC BJEV is not always profitable. In 2015, BAIC BJEV began to lose money. At that time, BAIC BJEV could only survive on subsidies and other benefits. In 2018 and 2019, Beiqi Blue Valley achieved a good net profit, but after deducting subsidies and non-operating income, the net profit of Beiqi Blue Valley was actually negative.

It was from 2018 that there were problems in the operation and management of North Base Blue Valley. By 2020, THE SALES OF BAIC NEW ENERGY VEHICLES WILL DROP SHARPLY. Not only that, but the operating income in 2020 is very different from the peak period. The operating expenses of North Base Blue Valley are very large, and the company's use of subsidies cannot make up for the deficit of the year. (William Shakespeare, Northern Exposure (American TV series, season quotes) Beiqi Blue Valley electric vehicle sales pulled back in 2021, but it could not make up for the huge deficit in 2021. No one could have imagined that the former electric car giant was now heavily indebted. If Beiqi Blue Valley cannot turn a profit, there may be a risk of delisting in the future. You know, in the past, the market value of Beiqi Blue Valley reached 85 billion yuan, but now there are only 30 billion left. If the North Kieran Valley is delisted, both the company and the shareholders will be a huge loss. If BAIC BJEV cannot continue to exert its strength in core technology, it may no longer have the strength to compete with other electric vehicles. (William Shakespeare, Northern Exposure,) In addition, if BAIC BJEV can't change the reputation of consumers, it won't be easy to get out of the downturn.

Abstract: The strength of new energy vehicles in the mainland has always been good. Especially in the past two years, domestic electric vehicles have shown considerable advantages in quality and price. One of the new energy vehicle brands has taken the lead, but is now in danger of being out of the mayor/market. This brand is BAIC's new energy. From 2013 to 2019, BAIC New Energy Vehicles has been occupying the first place in the mayor/market share. In just two years, it was not expected that the cumulative deficit would exceed 11.7 billion, not only that, Beiqi Blue Valley is also facing the risk of delisting. Do small partners think that BAIC BJEV is a pity? Discussion information is welcome.