On August 26, 2024, Beijing Automobile (01958.HK) released the first half of 2024 results announcement on the Hong Kong Stock Exchange. During the reporting period ending June 30, 2024, Beijing Automobile achieved wholesale 450,000 vehicles and retail 476,000 vehicles, revenue 94.32 billion yuan (the same below), gross profit 18.686 billion yuan, net profit 6.866 billion yuan, operating cash flow is good, stable 11.534 billion yuan. During the period, the company simultaneously promoted the multi-technology route Product Research & Development, and R & D investment increased to 1.802 billion yuan.
The announcement shows that in the first half of 2024, while the development quality of the three joint ventures of Beijing Benz, Beijing Hyundai, and Fujian Benz has been steadily improved, Beijing Automotive’s independent business, Beijing Brand, has adhered to lean operations, increased the sales volume and proportion of high-value products by adjusting the product structure, achieved improvement in operating quality, ushered in the "oil and electricity dual engine" drive, and continued to build a "new quality" system to consolidate the "chassis" of high-quality development.
Led by high-value products, the market volume ushered in the "dual-engine" drive
Focusing on scientific and technological innovation to cultivate and develop new quality productivity as the core element and promoting high-quality development is an important strategic layout of the current country. As far as the automobile industry is concerned, focusing on independent brands and strengthening independent brands has become an important part of the innovation-driven development of state-owned car enterprises and improving their operational independence and management quality.
In the first half of the year, Beijing Automotive’s independent business, the Beijing brand, launched multiple arrows, promoted technological advancements and product advancements, led by high-value products, focused on the electrification and intelligent path of off-road products, and successively released the off-road electrification platform technology magic nuclear drive super drive solution, deep hybrid light wild electric four-wheel drive SUV BJ30, the new BJ40 magic nuclear drive version, BJ60 thunder magic nuclear drive version, and BJ40 glory version, the new BJ40 ring tower champion version, the new BJ40 blade hero version climber (gasoline version), the new BJ40 blade hero version transporter (diesel version), comprehensively promoted the electrification, intelligence, economy and off-road performance of the off-road SUV category, and won the industry reputation. At the same time, it also gained market recognition.
In overseas markets, in the first half of 2024, Beijing Automobile will focus on accelerating globalization and continue to explore incremental markets. Export sales will steadily increase, and the growth rate will outperform the market. Star models such as Beijing brand BJ40 and BAIC Rubik’s Cube have been listed in Indonesia and Malaysia. The first BAIC flagship store officially opened in Egypt, and three models of Beijing U5 PLUS, BAIC Rubik’s Cube and the new X7 have been listed locally.
Build "new quality" system capabilities and consolidate high-quality development "chassis"
The key to cultivating and developing new quality productivity is to build "new quality" system capabilities and consolidate the "chassis" of high-quality development. In the first half of 2024, BAIC will make every effort to promote R & D and channel advancement while promoting technological advancement and product advancement.
In terms of research and development, BAIC focuses on the research and development of core technologies for intelligent driving and electrified off-road SUVs, and further increases its R & D expenditure. At present, the research and development of BAIC’s new new energy platform is advancing as planned, and multiple new models based on the new platform are being developed and advanced. Strategically hosting BAIC Blue Valley, further enhancing the resource synergy effect, strengthening the full value chain system of electrified product research, production, sales and service, improving the comprehensive utilization efficiency of resources, and expanding the layout of the new energy industry.
At the same time, BAIC further improves the service system, continues to expand sales channels, improve the city penetration rate, keep an eye on user requests, promote the construction of service ecology, promote the upgrade of brand visual identity system, focus on user clubs, official APP and word-of-mouth communication, and deepen the system of user operation.
Looking forward to the business situation in the second half of 2024, BAIC said that the Beijing brand will focus on new products and off-road vehicle competitiveness improvement, firmly move towards high-quality transformation, keep up with market changes, and strive to improve system capabilities and market share. With sales as the driving force, maintain the rhythm of new product launch, target key tracks such as off-road, SUV, and mid-to-high-end hybrid products, as well as overseas opportunity markets, adjust the product structure, continue to expand the sales structure of high-value and high-flow products, and form a joint force in each market segment. Continuous technological innovation, with product strategic transformation as the main driving force, to promote the progress of major technologies and Product Research & Development to be reached on schedule. Promote system change, combine long-term and short-term measures, and help enterprises rise and develop.
Data show that in the first half of 2024, Beijing brand sales continued to achieve rapid growth, with end point sales increasing by 15% year-on-year, of which off-road vehicle sales increased by 24.1% year-on-year. In July, led by the hot sales of BJ30, Beijing brand sales continued to increase by 38.7% year-on-year. At present, the BJ60 Thunder Magic nuclear power drive version has been listed on August 20, and the new BJ40 magic nuclear power drive version will also be listed within the year, which will further promote the volume of Beijing’s automobile market and increase the proportion of brand high-value products. Beijing automobiles driven by "oil and electricity dual engines" will usher in stronger momentum in the second half of the year.
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