BAIC Blue Valley Reports Soaring Sales but Still Forecasts a $647M Loss

[Earnings Guidance] BAIC Blue Valley announced a year-over-year sales surge of 84.06% in 2025, yet it still expects a net loss between RMB 4.35 billion and RMB 4.65 billion ($610M–$647M).

Core Development: Over 200,000 Units Sold Fails to Offset Strategic Investment-Phase Losses

Annual deliveries reached a record high of 209,576 units, with the Arcfox brand contributing over 160,000 units—a 99% year-over-year increase. The Huawei-co-developed luxury EV, the Stelato S9, maintained its position as the top-selling premium all-electric sedan in the RMB 400,000 segment. Despite robust growth, profitability remains elusive due to sustained heavy investments in R&D and channel expansion under the company’s “Three-Year Leap” strategy.

Key Metrics: Narrowing Losses + Three Consecutive Months of Over 30,000 Monthly Sales

Compared to the net loss of RMB 6.948 billion in 2024, the projected 2025 loss shows significant improvement. From October to December 2025, the company achieved monthly sales exceeding 35,205 units for three straight months, with December deliveries surging 114.56% year-over-year.

Strategic Foundation: Economies of Scale Not Yet Realized; Profitability Inflection Point Remains Uncertain

BAIC Group aims to reach annual sales of 2 million units for its self-owned brands by 2027, with new energy vehicles (NEVs) accounting for more than 50%. BAIC Blue Valley remains in a strategic investment phase. However, as its product portfolio expands and cost-reduction initiatives take effect, the company’s profitability is expected to gradually improve.