On the evening of December 24, BAIC Blue Valley announced the progress of capital increase and share expansion for its subsidiary, BAIC New Energy. The company introduced 11 strategic investors, including Beijing State-owned Capital Operation and Management Co., Ltd., Beijing Infrastructure Investment Co., Ltd., Ningbo Meishan Bonded Port Area Wendin Investment Co., Ltd., and Beijing Xiaoma Yixing Technology Co., Ltd., among others. A total of 8.15 billion yuan was raised through the signing of an "Equity Increase Agreement."
BAIC Blue Valley stated that, despite the capital increase, it remains the controlling shareholder of BAIC New Energy. However, its stake in the subsidiary has been reduced from 99.99% to 71.69%.
The announcement reveals that the funds raised will be used by BAIC New Energy to repay debts formed by bank loans and to cover expenses related to its normal operations, management, and investments. This capital infusion aims to enhance the company's competitiveness, optimize its capital structure, and align with the interests of all shareholders.
In addition to the previous 2 billion yuan increase from Beijing Automotive through a private agreement, the total capital increase for BAIC New Energy, combining both private and public methods, amounts to 10.15 billion yuan.
This substantial financing is expected to temporarily ease the financial pressures on BAIC New Energy.
According to the announcement, BAIC New Energy's revenue in 2023 was 15.186 billion yuan, with a net loss of 2.184 billion yuan. In the first half of 2024, the company's revenue was 4.527 billion yuan, with a net loss of 1.124 billion yuan.
The pressure on BAIC Blue Valley is even greater. In the first three quarters of this year, BAIC Blue Valley's net loss reached 4.49 billion yuan, a 38.2% increase compared to the previous year. From 2020 to 2023, the company's net losses were 6.482 billion yuan, 5.244 billion yuan, 5.465 billion yuan, and 5 billion yuan, respectively, with cumulative losses totaling 22.591 billion yuan.
However, the company has seen a comforting rise in sales recently.
Data shows that BAIC Blue Valley's sales in November reached 15,198 units, a year-on-year increase of 58.48%. From January to November, the total sales reached 97,000 units, growing by 36.57% year-on-year.
Among its brands, BAIC Jihu (ARCFOX) has shown strong sales performance. After August, BAIC Jihu achieved monthly sales of over 10,000 units for four consecutive months, with November sales reaching 11,122 units. The brand's cumulative sales this year have reached 69,000 units, a year-on-year increase of 213.4%.
The improving sales figures, along with the large-scale financing, have given BAIC Blue Valley renewed hope after a prolonged period of downturn.
