Beiqi Blue Valley lost more than 4.8 billion yuan to sell cars with an annual sales volume of only 26,000 vehicles, but spent 1.7 billion yuan on marketing

Yangtze River Business Daily reporter Li Qiguang

Liu Yu, chairman of Beiqi Blue Valley, once set 2021 as a "turning point" for the company, and as a result, sales have hardly increased; Liu Yu also said that in 2022, the company will jump up, but the current sales volume is far from the industry.

Recently, Beiqi Blue Valley (600733.SH) released its 2021 annual performance forecast, showing that the company expects net profit to be -4.8 billion yuan to -5.3 billion yuan. If you add the loss in 2021, the total net profit loss of Beiqi Blue Valley in the past two years exceeds 11.2 billion yuan.

In order to achieve the transformation of products to high-end, Beiqi Blue Valley fully promotes the ARCFOX Jihu brand promotion and channel construction, the company increases brand communication efforts, advertising and operation and other sales expenses increase, the impact on the company's performance in 2021 is about 1.7 billion yuan.

The sales volume of the Polar Fox brand in 2021 is only 4993 vehicles, which looks like it is not worth the loss.

Moreover, the company's ambitions are not small. Baiqi Blue Valley's monthly sales of just over 1,000 vehicles, BAIC Group general manager Zhang Xiyong said that the sales target for 2022 is 100,000 vehicles, including 40,000 Jihu, and strive to impact 300,000 vehicles in the future.

"Manufacturing, procurement, R&D are responsible for marketing"

Founded in 2009, Beijing New Energy Automobile Co., Ltd., a subsidiary of Beiqi Blue Valley, is the first enterprise in mainland China to operate independently and obtain the production qualification of new energy vehicles.

In the 2019 annual report, the company has maintained the first sales volume of new energy pure electric passenger cars in China for seven consecutive years since 2013, with annual sales of up to 150,000 units.

However, in 2020, Beiqi Blue Valley did not continue its glory, and the proud record of "eight consecutive championships" did not appear in the annual report. The data shows that the company's car sales in 2020 reached 25,900 units, down 82.79% year-on-year.

Liu Yu, chairman of Beiqi Blue Valley, said: "We have lost seven consecutive championships, but what we have lost is only the crown, and the ability we have accumulated in the past 11 years has not been lost. Today is the low, but also the turning point. ”

Liu Yu may be too optimistic, beiqi blue valley has not ushered in a "turning point".

In 2021, Beiqi Blue Valley sold 26,100 vehicles, an increase of only 0.82% year-on-year, although it stopped the downward trend, but it was not much different from 2020.

Liu Yu said in his 2022 New Year's speech, "We have been gone for twelve years, which is the most forward-looking silk and the most patient waiting for the whole industry. ”

"There is no need to wait, the legendary wind is coming at a rapid pace. Offensive and defensive conversion, in 2022, we will end the stinging and jump up – for tactics. We confirmed that the marketing team is the only forward, manufacturing, procurement, research and development is fully responsible for marketing, from force out of the hole to force out of a hole - is for the formation. We go from living within our means to allocating resources in a goal-oriented manner, and we should do nothing and spend a lot of money - for the strategy. Locking in the target population, positioning the target market, listing plans, setting measures, system deduction, falling to the details - is for the program. ”

Liu Yu's dedication is somewhat poetic, but he sees the decline in sales as a "sting", a kind of "defense", which is a bit self-deceptive.

Moreover, Liu Yu believes that the marketing team is the only forward, manufacturing, procurement, research and development is fully responsible for marketing, which is inevitably regarded as a move of "heavy marketing, light research and development".

In 2022, did Beiqi Blue Valley take off? Recently, Beiqi Blue Valley released the February 2022 production and sales express report, showing that the company's sales in the first two months reached 3385 vehicles, an increase of 62.43% year-on-year. Among them, the company sold 1263 vehicles in February, an increase of 24.8% year-on-year.

According to the data released by the China Automobile Association, the production and sales of new energy vehicles in the first two months of 2022 in the mainland reached 820,000 units and 765,000 units, respectively, an increase of more than 160% and 150% year-on-year, and the market share has reached 17.9%.

Among them, in February, the production and sales of new energy vehicles in mainland China were 368,000 units and 334,000 units, respectively, an increase of more than 200% and 180% year-on-year, respectively.

It can be seen that Beiqi Blue Valley's sales have obviously picked up and bottomed out, but compared with the entire industry, it is still a big difference, far from the "jump up" that Liu Yu expects.

Moreover, Beiqi Blue Valley has only sold more than a thousand vehicles per month, and has long been thrown away by a number of new car-making forces such as Xiaopeng Automobile and Ideal Automobile, and has lost the significance of comparison.

The cumulative loss in two years exceeded 11.2 billion

Sales are not good, and the profitability of Beiqi Blue Valley is naturally not good.

According to the data, from 2017 to 2019, the operating income of Beiqi Blue Valley was 11.493 billion yuan, 18.091 billion yuan and 23.589 billion yuan, an increase of 612.13%, 43.02% and 30.39% year-on-year, and the net profit was 59.4013 million yuan, 73.2899 million yuan and 92.0101 million yuan, an increase of 277.84%, 23.38% and 25.54% respectively.

However, by 2020, the operating income of Beiqi Blue Valley reached 5.272 billion yuan, down 77.65% year-on-year; the net profit loss was 6.482 billion yuan, down 7145.36% year-on-year.

Recently, Beiqi Blue Valley released its 2021 annual performance forecast, showing that the company expects net profit to be -4.8 billion yuan to -5.3 billion yuan; deducting non-net profit is -5 billion yuan to -5.5 billion yuan.

This also means that in 2020 and 2021, the total net profit loss of Beiqi Blue Valley exceeded 11.2 billion yuan.

Beiqi Blue Valley said that due to the impact of the new crown pneumonia epidemic and the supply of raw materials, the company's production and sales did not meet expectations, and the existing gross profit could not cover the inherent costs and expenses, and the impact on the company's performance was about 2 billion yuan to 2.5 billion yuan.

In addition, in order to achieve the transformation of products to high-end, Beiqi Blue Valley introduced that the company fully promoted the ARCFOX Jihu brand promotion and channel construction, increased brand communication, advertising and operation and other sales expenses increased, the impact on the company's performance of about 1.7 billion yuan.

At the same time, Beiqi Blue Valley continued to build independent technical capabilities and increase R&D investment, and the impact of R&D expenses on the company's performance was about 1.1 billion yuan.

Compared with the two, the company's R & D expenditure is obviously not as good as the sales cost.

In the 2020 annual report, Beiqi Blue Valley said that the company will fully implement the brand upward strategy, focus on building the ARCFOX (Extreme Fox) brand, and continue to strengthen brand competitiveness from the aspects of marketing network capacity building, brand operation improvement, after-sales service system guarantee, and product strength improvement.

Statistics show that the ARCFOX Polar Fox brand built by Beiqi Blue Valley with heavy investment will sell 4993 vehicles in 2021, and the sales performance will be less than expected, compared with the previous annual sales target of 12,000 vehicles, only about 40% has been completed.

According to the official website of Polar Fox Motors, the company currently has a new HI version of Alpha T, Alpha S and Alpha S. Among them, the official price of the new HI version of Alpha S is 388,900 yuan to 429,900 yuan, Alpha S is 251,900 yuan to 344,900 yuan, and Alpha T is 241,900 yuan to 319,900 yuan.

Moreover, Beiqi Blue Valley currently has monthly sales of just over 1,000 vehicles, and the new target seems unrealistic.

Zhang Xiyong, general manager of BAIC Group, said recently: "BAIC BJEV (BAIC Blue Valley) has a sales target of 100,000 vehicles in 2022, including 40,000 Jihu vehicles, and strives to impact 300,000 vehicles in the future."