Announcements and General Information [Announcement Details](index=1&type=section&id=Announcement%20Details) Beijing Automotive Group Co., Ltd. (BAIC) released its unaudited third-quarter operating results for the nine months ended September 30, 2023, prepared under Chinese accounting standards and disclosed per HKEX listing rules - The reporting entity is Beijing Automotive Group Co., Ltd. and its subsidiaries (the Group)[1](index=1&type=chunk) - The reporting period covers operating results for the nine months ended September 30, 2023[1](index=1&type=chunk) - Financial information is unaudited and prepared in accordance with Chinese Enterprise Accounting Standards[1](index=1&type=chunk) - This announcement is made pursuant to Rules 13.09(2) and 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong)[1](index=1&type=chunk) Consolidated Financial Statements This chapter outlines the consolidated financial position, operating results, and cash flows of Beijing Automotive Group Co., Ltd. as of September 30, 2023, showing a slight decrease in total assets, a significant reduction in total liabilities, an increase in shareholders' equity, and year-on-year growth in both operating revenue and net profit [Consolidated Balance Sheet](index=2&type=section&id=Consolidated%20Balance%20Sheet) As of September 30, 2023, the Group's consolidated total assets slightly decreased, total liabilities significantly reduced, while equity attributable to owners of the parent and minority interests both increased, leading to an overall rise in total shareholders' equity Consolidated Balance Sheet Key Data Comparison (As of September 30, 2023 vs December 31, 2022) | Metric | September 30, 2023 (RMB) | December 31, 2022 (RMB) | Change (RMB) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Total Assets | 171,458,998,860.41 | 173,375,442,068.64 | (1,916,443,208.23) | -1.11% | | Total Liabilities | 87,649,001,612.44 | 94,438,339,336.18 | (6,789,337,723.74) | -7.19% | | Total Shareholders' Equity | 83,809,997,247.97 | 78,937,102,732.46 | 4,872,894,515.51 | 6.17% | | Total Equity Attributable to Owners of the Parent | 57,123,576,382.33 | 54,496,765,414.77 | 2,626,810,967.56 | 4.82% | | Minority Interests | 26,686,420,865.64 | 24,440,337,317.69 | 2,246,083,547.95 | 9.19% | - Financing receivables within current assets significantly increased by **276.83%**, from **RMB 917 million** at the end of 2022 to **RMB 3.456 billion** at the end of September 2023[2](index=2&type=chunk) - Short-term borrowings within current liabilities decreased by **51.25%**, from **RMB 6.284 billion** at the end of 2022 to **RMB 3.067 billion** at the end of September 2023; bonds payable decreased by **41.08%**, from **RMB 5.925 billion** to **RMB 3.492 billion**[4](index=4&type=chunk) [Consolidated Income Statement](index=4&type=section&id=Consolidated%20Income%20Statement) The Group achieved steady growth in total operating revenue and net profit in the first three quarters of 2023, with a significant increase in net profit attributable to owners of the parent, though financial expenses shifted from a gain to a loss, and investment losses expanded Consolidated Income Statement Key Data Comparison (January-September 2023 vs January-September 2022) | Metric | January-September 2023 (RMB) | January-September 2022 (RMB) | Change (RMB) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Total Operating Revenue | 154,410,243,805.59 | 141,877,236,640.20 | 12,533,007,165.39 | 8.83% | | Operating Profit | 19,724,263,978.21 | 18,938,359,339.10 | 785,904,639.11 | 4.15% | | Net Profit | 13,236,259,663.14 | 12,468,162,314.24 | 768,097,348.90 | 6.16% | | Net Profit Attributable to Owners of the Parent | 4,017,483,935.74 | 3,215,092,080.76 | 802,391,854.98 | 24.96% | - Financial expenses shifted from a net gain of **RMB 619 million** in the same period of 2022 to a net expense of **RMB 488 million** in 2023, indicating increased financing costs[6](index=6&type=chunk) - Investment losses expanded from **RMB 560 million** in the same period of 2022 to **RMB 823 million** in 2023, primarily due to losses from investments in associates and joint ventures[6](index=6&type=chunk) - Gains from changes in fair value shifted from a loss of **RMB 601 million** in the same period of 2022 to a gain of **RMB 7.4986 million** in 2023[6](index=6&type=chunk) [Consolidated Cash Flow Statement](index=6&type=section&id=Consolidated%20Cash%20Flow%20Statement) The Group's net cash flow from operating activities significantly increased, cash outflow from investing activities decreased, but cash outflow from financing activities substantially rose, leading to a year-on-year increase in net cash and cash equivalents Consolidated Cash Flow Statement Key Data Comparison (January-September 2023 vs January-September 2022) | Metric | January-September 2023 (RMB) | January-September 2022 (RMB) | Change (RMB) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 23,032,519,881.53 | 17,475,749,719.26 | 5,556,770,162.27 | 31.80% | | Net Cash Flow Used in Investing Activities | (7,114,137,860.49) | (7,564,244,474.09) | 450,106,613.60 | -5.95% | | Net Cash Flow Used in Financing Activities | (14,837,950,734.56) | (9,435,658,654.27) | (5,402,292,080.29) | 57.25% | | Net Increase in Cash and Cash Equivalents | 1,208,893,219.65 | 396,324,095.07 | 812,569,124.58 | 205.03% | - Cash outflow from financing activities significantly increased, primarily due to higher cash payments for debt repayment and for distribution of dividends, profits, or interest payments[9](index=9&type=chunk) Company Financial Statements This chapter presents the standalone financial position, operating results, and cash flows of Beijing Automotive Group Co., Ltd. (parent company) as of September 30, 2023, showing stable total assets, a significant decrease in total liabilities, a substantial increase in shareholders' equity, and significant growth in both operating revenue and net profit [Company Balance Sheet](index=8&type=section&id=Company%20Balance%20Sheet) As of September 30, 2023, the parent company's total assets remained stable, total liabilities significantly decreased, and shareholders' equity substantially increased, reflecting an optimized financial structure Company Balance Sheet Key Data Comparison (As of September 30, 2023 vs December 31, 2022) | Metric | September 30, 2023 (RMB) | December 31, 2022 (RMB) | Change (RMB) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Total Assets | 94,018,275,484.11 | 94,081,451,546.57 | (63,176,062.46) | -0.07% | | Total Liabilities | 23,901,517,987.79 | 28,023,976,208.11 | (4,122,458,220.32) | -14.71% | | Total Shareholders' Equity | 70,116,757,496.32 | 66,057,475,338.46 | 4,059,282,157.86 | 6.14% | - Cash and bank balances significantly decreased by **68.74%**, from **RMB 8.309 billion** at the end of 2022 to **RMB 2.597 billion** at the end of September 2023[10](index=10&type=chunk) - Other receivables significantly increased by **27.55%**, from **RMB 15.002 billion** at the end of 2022 to **RMB 19.135 billion** at the end of September 2023[10](index=10&type=chunk) - Short-term borrowings within current liabilities decreased by **53.47%**, from **RMB 5.804 billion** at the end of 2022 to **RMB 2.700 billion** at the end of September 2023[13](index=13&type=chunk) [Company Income Statement](index=10&type=section&id=Company%20Income%20Statement) The parent company achieved explosive growth in total operating revenue and net profit in the first three quarters of 2023, primarily driven by a substantial increase in investment income, demonstrating strong performance in its investment activities Company Income Statement Key Data Comparison (January-September 2023 vs January-September 2022) | Metric | January-September 2023 (RMB) | January-September 2022 (RMB) | Change (RMB) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Total Operating Revenue | 7,288,972,198.39 | 4,387,313,066.77 | 2,901,659,131.62 | 66.13% | | Operating Profit | 5,113,999,830.13 | 1,812,902,676.47 | 3,301,097,153.66 | 182.09% | | Net Profit | 5,083,102,375.80 | 1,807,064,565.86 | 3,276,037,809.94 | 181.30% | - Investment income significantly increased by **37.19%**, from **RMB 5.709 billion** in the same period of 2022 to **RMB 7.833 billion** in the same period of 2023, serving as the primary driver for net profit growth[15](index=15&type=chunk) - Taxes and surcharges significantly decreased by **77.89%**, from **RMB 393 million** in the same period of 2022 to **RMB 87 million** in the same period of 2023[15](index=15&type=chunk) - Selling expenses significantly decreased by **83.69%**, from **RMB 332 million** in the same period of 2022 to **RMB 54 million** in the same period of 2023[15](index=15&type=chunk) [Company Cash Flow Statement](index=11&type=section&id=Company%20Cash%20Flow%20Statement) The parent company experienced increased cash outflow from operating activities and significantly expanded cash outflow from financing activities; despite a notable increase in cash inflow from investing activities, overall cash and cash equivalents still showed a net decrease Company Cash Flow Statement Key Data Comparison (January-September 2023 vs January-September 2022) | Metric | January-September 2023 (RMB) | January-September 2022 (RMB) | Change (RMB) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Net Cash Flow Used in Operating Activities | (2,536,315,568.76) | (1,510,079,208.64) | (1,026,236,360.12) | 67.96% | | Net Cash Flow from Investing Activities | 4,561,167,405.99 | 1,962,255,011.82 | 2,598,912,394.17 | 132.45% | | Net Cash Flow Used in Financing Activities | (7,736,385,444.76) | (3,790,496,991.42) | (3,945,888,453.34) | 104.10% | | Net Decrease in Cash and Cash Equivalents | (5,711,413,744.67) | (3,337,844,673.17) | (2,373,569,071.50) | 71.12% | - Cash received from sales of goods and rendering of services significantly decreased by **61.00%**, from **RMB 5.502 billion** in the same period of 2022 to **RMB 2.146 billion** in the same period of 2023[16](index=16&type=chunk) - Cash received from borrowings decreased by **50.49%**, from **RMB 10.811 billion** in the same period of 2022 to **RMB 5.351 billion** in the same period of 2023[17](index=17&type=chunk) Other Information This section provides additional corporate information, including the composition of the Board of Directors [Board of Directors](index=12&type=section&id=Board%20of%20Directors) Discloses the composition of Beijing Automotive Group Co., Ltd.'s Board of Directors as of the announcement date, including the Chairman, Non-executive Directors, Executive Directors, and Independent Non-executive Directors - The Board of Directors includes: Mr. Chen Wei as Chairman and Non-executive Director; Mr. Hu Hanjun and Mr. Chen Hongliang as Non-executive Directors; Mr. Song Wei as Executive Director; Mr. Ye Qian, Mr. Hubertus Troska, Mr. Harald Emil Wilhelm, Mr. Gu Tiemin, and Mr. Sun Li as Non-executive Directors; and Mr. Ge Songlin, Ms. Yin Yuanping, Mr. Xu Xiangyang, Mr. Tang Jun, and Mr. Xue Lipin as Independent Non-executive Directors[17](index=17&type=chunk)

Sales Performance - In the first half of 2023, BAIC Motor Corporation achieved a total vehicle sales of 507,000 units, representing a year-on-year increase of 24.1%[4] - The wholesale sales of fuel vehicles reached 459,000 units in the first half of 2023, up from 383,000 units in the same period of 2022[11] - The sales of new energy vehicles increased to 49,000 units in the first half of 2023, compared to 25,000 units in the same period of 2022[11] - Beijing brand sales in the first half of 2023 reached 72,000 units, a significant increase of 125% compared to 32,000 units in the same period of 2022[12] - Fuel vehicle sales for Beijing brand rose to 44,000 units, up 83% from 24,000 units year-over-year, while new energy vehicle sales surged to 29,000 units from 8,000 units, marking a 262.5% increase[12] - Beijing Benz's sales increased to 301,000 units in the first half of 2023, compared to 267,000 units in the same period of 2022, reflecting a growth of 12.7%[12] - Beijing Hyundai's sales grew to 118,000 units, up 25.5% from 94,000 units year-over-year[12] - The sales of new energy vehicles reached 49,000 units, a year-on-year increase of 91.5%, contributing to market expansion[23] - The sales of fuel vehicles increased by 19.7% to 459,000 units, demonstrating steady growth[23] - In the first half of 2023, Beijing Benz sold 301,000 vehicles, reflecting a year-on-year growth of 12.9%[25] - Beijing Hyundai achieved vehicle sales of 118,000 units, marking a year-on-year increase of 25.7%[26] Financial Performance - The company's consolidated revenue for the first half of 2023 was RMB 99.05 billion, an increase of 18.4% compared to RMB 83.68 billion in the same period of 2022[9] - Net profit attributable to equity holders of the company for the first half of 2023 was RMB 2.85 billion, reflecting a year-on-year growth of 31.9%[4] - The earnings per share for the first half of 2023 was RMB 0.36, which is a 33.3% increase from the previous year[4] - The company's revenue increased from RMB 83,678.6 million in the first half of 2022 to RMB 99,047.1 million in the first half of 2023, representing an 18.4% year-on-year growth, driven by increased sales and changes in vehicle model structure[47] - Net profit attributable to equity holders rose from RMB 2,158.3 million in the first half of 2022 to RMB 2,845.7 million in the first half of 2023, a growth of 31.9%; basic earnings per share increased from RMB 0.27 to RMB 0.36[47] - Gross profit increased from RMB 18,559.9 million in the first half of 2022 to RMB 20,566.1 million in the first half of 2023, a 10.8% increase, mainly due to higher sales and changes in vehicle model structure[47] - The company's net cash generated from operating activities rose from RMB 9,058.5 million in the first half of 2022 to RMB 13,707.7 million in the first half of 2023, reflecting a 51.3% increase due to higher sales[47] - Total revenue for the six months ended June 30, 2023, was RMB 99,047,066 thousand, an increase from RMB 83,678,641 thousand in the same period of 2022, representing a growth of approximately 18.3%[59] - Gross profit for the same period was RMB 20,566,103 thousand, compared to RMB 18,559,917 thousand in 2022, reflecting a gross margin improvement[59] - Net profit attributable to equity holders of the company for the six months was RMB 2,845,716 thousand, up from RMB 2,158,298 thousand in 2022, indicating a growth of approximately 31.8%[59] Assets and Liabilities - Total assets as of June 30, 2023, were RMB 175.07 billion, compared to RMB 173.38 billion as of December 31, 2022[9] - Total liabilities as of June 30, 2023, were RMB 95.48 billion, slightly up from RMB 94.44 billion at the end of 2022[9] - The company's total liabilities as of June 30, 2023, were RMB 95,482,299 thousand, compared to RMB 94,438,337 thousand at the end of 2022[58] - The total assets as of June 30, 2023, amounted to RMB 175,068,117 thousand, compared to RMB 173,375,442 thousand at the end of 2022, showing a slight increase[58] - The company had outstanding borrowings totaling RMB 17,297.9 million, including short-term borrowings of RMB 10,104.3 million and long-term borrowings of RMB 7,193.6 million[47] - The company maintains a net debt-to-equity ratio of -29.7% as of June 30, 2023, indicating a strong capital structure[47] Strategic Initiatives - The company is accelerating its transformation towards electrification and intelligence, covering both fuel and new energy vehicle types[14] - The new product lineup includes models such as the new X7, EU5 PLUS, and various hybrid and electric vehicles, catering to diverse outdoor needs[16] - The company aims to enhance its product matrix by focusing on SUVs and crossovers, targeting different consumer segments[14] - The partnership with Mercedes-Benz and the establishment of joint ventures are key strategies for expanding market presence and enhancing product offerings[18] - The company plans to enhance its international business through joint ventures and subsidiaries, focusing on markets outside of China and South Africa[21] - The company is actively promoting digitalization and smart technology applications to enhance competitiveness in the automotive market[26] - The group is committed to enhancing research and development capabilities, with a focus on electric, intelligent, and connected technologies[29] - The R&D center in Beijing Benz is the largest within the joint venture, focusing on shortening development cycles and enhancing digital verification capabilities[29] Corporate Governance - The company did not propose an interim dividend for the reporting period[4] - The company has established an audit committee to review the accounting standards and practices adopted by the group[37] - The board of directors appointed Song Wei as the new president effective June 30, 2023[36] - The company has complied with all applicable provisions of the Corporate Governance Code during the reporting period[34] - There were no significant litigations or arbitrations as of June 30, 2023[42] - No significant events affecting the group occurred after the reporting period[42] Employee and Operational Metrics - The total number of employees at the group as of June 30, 2023, was 30,691, down from 31,511 at the end of 2022[31] - The group aims to maintain stable growth in the second half of 2023, driven by the recovery of the macro economy and the performance of new energy vehicles[31] - The group is enhancing its sales channels and optimizing production capacity to achieve year-on-year increases in sales and revenue[33] Market Overview - The automotive market in China saw a wholesale sales increase of 8.8% year-on-year, with a total of 11.27 million passenger vehicles sold in the first half of 2023[4] - The sales of passenger cars in China reached 11.268 million units in the first half of 2023, an increase of 8.8% year-on-year[21] - The sales of new energy vehicles in the first half of 2023 reached 3.747 million units, a year-on-year growth of 44.1%, with a market share of 28.3%[21]

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 99,047,066 thousand, an increase of 18.4% compared to RMB 83,678,641 thousand for the same period in 2022[2] - Gross profit for the same period was RMB 20,566,103 thousand, representing a gross margin of 20.8%, up from RMB 18,559,917 thousand in 2022[2] - Operating profit increased to RMB 12,585,178 thousand, a rise of 9.8% from RMB 11,463,669 thousand in the previous year[2] - Net profit attributable to equity holders was RMB 2,845,716 thousand, up 31.9% from RMB 2,158,298 thousand in 2022[2] - Basic and diluted earnings per share increased to RMB 0.36, compared to RMB 0.27 for the same period last year[2] - The company reported a profit before tax of RMB 12,579,113 thousand for the period, with a net profit of RMB 8,551,305 thousand after tax expenses of RMB 4,027,808 thousand[12] - The group’s revenue increased from RMB 83,678.6 million in the first half of 2022 to RMB 99,047.1 million in the first half of 2023, representing an 18.4% year-on-year growth, driven by increased sales and changes in vehicle model structure[45] - Net profit attributable to equity holders rose from RMB 2,158.3 million in the first half of 2022 to RMB 2,845.7 million in the first half of 2023, marking a 31.9% increase; basic earnings per share increased from RMB 0.27 to RMB 0.36[45] - Gross profit increased from RMB 18,559.9 million in the first half of 2022 to RMB 20,566.1 million in the first half of 2023, a 10.8% year-on-year rise, primarily due to higher sales and changes in vehicle model structure[46] Assets and Liabilities - Total assets as of June 30, 2023, were RMB 175,068,117 thousand, a slight increase from RMB 173,375,442 thousand at the end of 2022[5] - Total liabilities increased to RMB 95,482,299 thousand from RMB 94,438,337 thousand at the end of 2022[5] - Non-current assets decreased to RMB 92,251,611 thousand from RMB 90,920,604 thousand at the end of 2022[4] - The total accounts receivable as of June 30, 2023, was RMB 15,684,766, with a provision for impairment of RMB 1,081,163, resulting in a net accounts receivable of RMB 14,603,603[15] - The total accounts payable as of June 30, 2023, was RMB 28,719,354, an increase from RMB 27,183,330 as of December 31, 2022[17] - The group maintained a debt-to-asset ratio of 54.5% as of June 30, 2023, unchanged from the end of 2022[48] Sales and Market Performance - In the first half of 2023, the overall passenger car sales in China reached 11.268 million units, representing a year-on-year growth of 8.8%[31] - New energy vehicle sales in the first half of 2023 totaled 3.747 million units, with a year-on-year increase of 44.1%, capturing a market share of 28.3%[31] - Sales of Chinese brand passenger cars in the first half of 2023 amounted to 5.986 million units, reflecting a year-on-year growth of 22.4% and a market share of 53.1%[31] - High-end brand passenger car sales reached 2.033 million units in the first half of 2023, showing a year-on-year increase of 19.7%[31] - Passenger car exports in the first half of 2023 reached 1.78 million units, marking a significant year-on-year growth of 88.4%[31] - In the first half of 2023, the group achieved total sales of 507,000 vehicles, a year-on-year increase of 24.1%, with 49,000 new energy vehicles sold, up 91.5%[33] - Beijing brand sales reached 72,000 vehicles, a significant year-on-year growth of 125.9%, with electric vehicle sales of 29,000 units and export sales of 18,000 units, up 234.8%[34] - Beijing Benz sold 301,000 vehicles, reflecting a year-on-year increase of 12.9%, while launching new models such as the long-wheelbase GLC SUV and EQE SUV[35] - Beijing Hyundai's sales totaled 118,000 vehicles, a year-on-year increase of 25.7%, with a focus on digitalization and smart technology applications[36] - Fujian Benz achieved sales of 15,000 vehicles, maintaining stable development[37] Research and Development - The group emphasized R&D capabilities, focusing on electrification, intelligence, and connectivity, with advancements in high-efficiency engines and 800V high-voltage platforms[39] - Beijing Benz established the largest R&D center in the joint venture, enhancing digital verification capabilities and reducing development cycles[40] - Research and development expenses fell from RMB 1,326.0 million in the first half of 2022 to RMB 1,034.7 million in the first half of 2023[50] Corporate Governance and Compliance - The company has adopted the standard code of conduct for securities trading, with all directors and senior management confirming compliance during the reporting period[54] - The audit committee has reviewed the unaudited interim financial statements for the first half of 2023[57] - The board of directors includes a mix of executive and non-executive members, ensuring a balanced governance structure[57] - The company is committed to maintaining high standards of corporate governance to protect shareholder interests[53] Strategic Initiatives - The group is accelerating its transition to electrification and intelligence in its passenger vehicle offerings, covering both fuel and new energy vehicles[24] - The company aims to enhance its market share and operational capabilities in the second half of 2023, focusing on user engagement and international market expansion[43] - The group plans to accelerate product iteration and improve marketing capabilities to achieve its annual operational goals[44] - The company is expanding its international business through joint ventures and subsidiaries, focusing on the export of Beijing brand passenger vehicles[30] Tax and Financial Policies - The current tax expense for the six months ended June 30, 2023, was RMB 4,129,423, compared to RMB 3,940,793 for the same period in 2022[20] - The Chinese government has extended the purchase tax exemption policy for new energy vehicles until 2027, enhancing market expectations and expanding effective demand[32] Other Financial Information - The group recorded a foreign exchange gain of RMB 101.8 million in the first half of 2023, compared to a loss of RMB 63.1 million in the first half of 2022, due to effective hedging strategies[52] - The group has not proposed any interim dividend for the six months ended June 30, 2023, consistent with the previous year[22] - There are no significant contingent liabilities as of June 30, 2023[53] - The company has no major litigation or arbitration matters as of June 30, 2023[53] - The group’s capital expenditures decreased from RMB 2,689.2 million in the first half of 2022 to RMB 2,374.1 million in the first half of 2023[49]

Financial Performance - For Q1 2023, total operating revenue reached RMB 47.70 billion, an increase of 4.24% compared to RMB 45.73 billion in Q1 2022[6] - Net profit for Q1 2023 was RMB 4.16 billion, down 8.91% from RMB 4.56 billion in the same period last year[6] - The total comprehensive income for Q1 2023 was RMB 4,150,950,680.63, compared to RMB 4,072,443,330.36 in Q1 2022, representing an increase of approximately 1.93%[7] - Revenue from sales of goods and services in Q1 2023 reached RMB 53,714,090,823.97, compared to RMB 51,676,150,720.82 in Q1 2022, reflecting an increase of about 3.96%[8] - Total revenue for Q1 2023 reached RMB 2,124,609,270.95, an increase of 18.6% compared to RMB 1,791,515,260.81 in Q1 2022[14] Assets and Liabilities - Total current assets as of March 31, 2023, amounted to RMB 84.56 billion, up from RMB 82.45 billion at the end of 2022, reflecting a growth of 2.54%[2] - Total liabilities decreased to RMB 91.30 billion as of March 31, 2023, from RMB 94.44 billion at the end of 2022, a reduction of 3.3%[5] - The company's total assets as of March 31, 2023, were RMB 88,697,548,426.41, down from RMB 94,081,451,546.57 as of December 31, 2022, representing a decrease of about 5.67%[10] - The total liabilities decreased to RMB 23,310,082,990.96 as of March 31, 2023, from RMB 28,023,976,208.11 as of December 31, 2022, a reduction of approximately 16.1%[11] - Total liabilities amounted to RMB 23,310,082,991.05 in Q1 2023, down from RMB 25,397,462,382.25 in Q1 2022, a decrease of 8.2%[12] Cash Flow - Net cash flow from operating activities for Q1 2023 was RMB 6,994,882,684.54, up from RMB 4,229,406,569.68 in Q1 2022, indicating a growth of approximately 65.5%[8] - The net cash flow from financing activities in Q1 2023 was (RMB 4,876,908,748.24), a decline from (RMB 3,334,282,752.25) in Q1 2022, indicating a worsening of approximately 46.3%[9] - Cash flow from operating activities for Q1 2023 was RMB (950,207,569.60), compared to RMB (79,826,109.61) in Q1 2022, showing a significant increase in cash outflow[16] - The net cash flow used in financing activities in Q1 2023 was RMB (4.9 billion), compared to RMB (2.56 billion) in Q1 2022, indicating a significant increase in cash outflow[17] - The net decrease in cash and cash equivalents for Q1 2023 was RMB (6.16 billion), which is a 44.4% increase compared to RMB (4.27 billion) in Q1 2022[17] Research and Development - Research and development expenses for Q1 2023 were RMB 186.01 million, an increase of 24% from RMB 150.22 million in Q1 2022[6] - The company reported a significant decrease in research and development expenses, which were RMB 0 in Q1 2023 compared to RMB 9,031.39 in Q1 2022[14] Inventory and Equity - The company’s inventory as of March 31, 2023, was RMB 26.23 billion, slightly up from RMB 26.09 billion at the end of 2022, indicating a 0.54% increase[2] - The company's inventory as of March 31, 2023, was RMB 462,693,459.58, down from RMB 583,994,521.61 as of December 31, 2022, reflecting a decrease of approximately 20.7%[10] - The total equity attributable to shareholders increased to RMB 55.96 billion from RMB 54.50 billion, reflecting a growth of 2.68%[5] - Shareholders' equity totaled RMB 65,387,465,435.45, reflecting a stable capital structure[12] Future Plans - The company plans to expand its market presence and invest in new technologies to enhance product offerings in the upcoming quarters[6] - The company aims to enhance its market expansion strategies and product development in the upcoming quarters[14]

Sales Performance - In 2022, BAIC Motor Corporation achieved total vehicle sales of 947,000 units, with Beijing Benz contributing 592,000 units, maintaining its position among domestic luxury brands[8][11] - The overall automotive market in China saw a total sales volume of 23.563 million passenger vehicles in 2022, an increase of 9.5% year-on-year[9] - Sales volume for Beijing brand vehicles was 71,897 units in 2022, slightly down from 72,434 units in 2021[24] - Beijing Benz sold 591,716 units in 2022, an increase of 5.3% from 561,008 units in 2021[24] - Beijing Hyundai's sales dropped significantly to 250,424 units in 2022 from 360,565 units in 2021, a decline of 30.6%[24] - Beijing Brand achieved total vehicle sales of 72,000 units in 2022, a year-on-year decrease of 0.7%, while electric vehicle sales increased by 51.1%[66] - Beijing Benz produced over 600,000 vehicles in 2022, with sales reaching 592,000 units, representing a year-on-year growth of 5.5%[67] - Beijing Hyundai sold 250,000 vehicles in 2022, focusing on digitalization and smart connectivity technologies[69] - Beijing Brand exported 18,000 vehicles in 2022, marking an impressive year-on-year growth of 81.8%[66] Financial Performance - The company reported consolidated revenue of RMB 190.46 billion and a net profit of RMB 16.34 billion for the year 2022[8][11] - The company reported a gross profit of RMB 54.497 billion in 2022, indicating a robust financial performance[19] - Revenue for the year ended December 31, 2022, was $190,463 million, an increase of 8.8% compared to $175,916 million in 2021[20] - Gross profit for 2022 was $42,334 million, up from $37,643 million in 2021, reflecting a gross margin improvement[20] - The annual profit attributable to equity holders was $4,197 million in 2022, compared to $3,858 million in 2021, marking a growth of 8.8%[20] - The group's revenue increased from RMB 175,915.7 million in 2021 to RMB 190,462.6 million in 2022, representing an 8.3% year-on-year growth, primarily due to increased revenue from Beijing Benz[91] - The net profit attributable to equity holders rose from RMB 3,858.2 million in 2021 to RMB 4,196.6 million in 2022, marking an 8.8% increase; basic earnings per share increased from RMB 0.48 to RMB 0.52[91] - Gross profit increased from RMB 37,643.2 million in 2021 to RMB 42,334.2 million in 2022, a 12.5% year-on-year growth, mainly driven by higher gross profit from Beijing Benz[92] - The cash generated from operating activities rose significantly from RMB 12,903.0 million in 2021 to RMB 18,654.1 million in 2022, a 44.6% increase, attributed to higher net cash inflow from Beijing Benz[94] Market Trends - The sales of new energy vehicles in China reached 6.887 million units in 2022, representing a year-on-year growth of 93.4%[9] - The automotive market is expected to continue its stable growth in 2023, supported by the recovery of chip supply and ongoing policies favoring new energy vehicles[11][12] - The company expects the Chinese passenger car market to maintain moderate growth in 2023, supported by macroeconomic recovery and easing chip supply shortages[81] - The company anticipates stable development in the automotive market in 2023, with continued support for new energy vehicle demand through favorable policies[83] Strategic Initiatives - In 2023, the company aims to focus on "comprehensive electrification" and accelerate its transition towards electric and intelligent vehicles[12] - BAIC Motor plans to implement a dual strategy for domestic and international markets to enhance high-quality development[12] - The company aims to solidify its competitive position by forming a differentiated product matrix in the electric vehicle sector[12] - The company aims to enhance its product lineup with a focus on hybrid and electric vehicle technologies, targeting a broader consumer base[28] - The company is focused on optimizing product structure and enhancing operational stability across its various brands[64] - The company plans to enhance its focus on electric and intelligent transformation in 2023, aiming for high-quality development[84] Research and Development - The core R&D team consists of senior professionals from both domestic and international fields, covering various domains including electrification and vehicle integration[3] - The company is committed to enhancing its R&D capabilities and has established a comprehensive quality control system that meets national and international standards[47] - The R&D capabilities are being enhanced across all brands, with a focus on electrification, intelligence, and connectivity[75] - Beijing Benz has established the largest R&D center among joint ventures of the Mercedes-Benz Group, enhancing local prototype vehicle development[76] - The company continues to explore lightweight R&D, new energy technology transformation, and big data applications in its operations[41] Shareholder Returns - The board proposed a dividend of RMB 0.17 per share for the fiscal year 2022, reflecting a commitment to shareholder returns[11] - The company has established a mechanism for compliance with relevant laws and regulations to protect shareholder interests[129] Compliance and Governance - The company has maintained compliance with environmental laws and regulations, focusing on sustainable development and energy efficiency improvements[128] - There were no significant legal disputes or compliance issues reported during the year[131] - The company confirmed the independence of all independent non-executive directors as per the listing rules[134] - The company has not made any changes to the composition of the board, strategic committee, audit committee, nomination committee, or remuneration committee since January 1, 2022[140] Debt and Financing - The total outstanding borrowings amounted to RMB 20,313.4 million at the end of 2022, including short-term borrowings of RMB 11,733.0 million and long-term borrowings of RMB 8,580.4 million[96] - The company's debt-to-asset ratio decreased from 58.6% at the end of 2021 to 54.5% at the end of 2022, a year-on-year decline of 4.1 percentage points, primarily due to profit contributions increasing equity and the reduction of interest-bearing debt[95] - The company issued short-term financing bonds totaling RMB 1,500 million with a maturity of 180 days and an interest rate of 2.16%[159] - The company raised RMB 1,000 million through green medium-term notes with a 3-year maturity and an interest rate of 2.88% for procurement of machinery for electric vehicle production[159] Related Party Transactions - The company has established pricing policies to ensure fair and reasonable terms for procurement and sales transactions with suppliers, including BAIC[187] - The group engaged in continuous related party transactions with the Mercedes-Benz Group, focusing on vehicle sales and parts procurement[195] - The group has implemented measures to ensure that transaction terms with related parties are not less favorable than those with independent third parties[191]

Financial Performance - The total revenue for the year ended December 31, 2022, was RMB 190,462,586 thousand, an increase of 8.8% compared to RMB 175,915,687 thousand in 2021[6] - The gross profit for 2022 was RMB 42,334,207 thousand, up from RMB 37,643,235 thousand in 2021, reflecting a gross margin improvement[6] - The net profit attributable to equity holders of the company for 2022 was RMB 4,196,597 thousand, compared to RMB 3,858,175 thousand in 2021, representing a growth of 8.8%[7] - The company reported a basic and diluted earnings per share of RMB 0.52 for 2022, compared to RMB 0.48 in 2021[7] - The total revenue from sales discounts and commissions increased to RMB 11,717,464 thousand in 2022, compared to RMB 11,155,224 thousand in 2021, reflecting a growth of 5.0%[41] - The company's profit before tax for the year ended December 31, 2022, was RMB 24,729,213, an increase of 7.9% from RMB 22,920,481 in 2021[46] - The tax expense for the year ended December 31, 2022, was RMB 8,393,911, compared to RMB 7,769,002 in 2021, reflecting a year-on-year increase of 8.0%[46] - The proposed final dividend for the year ended December 31, 2022, is RMB 0.17 per share, compared to RMB 0.16 per share in 2021, indicating a 6.3% increase[48] Assets and Liabilities - Total assets as of December 31, 2022, were RMB 173,375,442 thousand, a decrease from RMB 180,844,377 thousand in 2021[3] - The total liabilities as of December 31, 2022, were RMB 94,438,337 thousand, down from RMB 105,957,302 thousand in 2021[5] - The total equity attributable to equity holders of the company increased to RMB 54,496,766 thousand in 2022 from RMB 52,582,759 thousand in 2021[3] - The company's cash and cash equivalents decreased to RMB 37,227,015 thousand from RMB 40,968,622 thousand in the previous year[2] - The total amount of unrecognized tax losses carried forward was approximately RMB 39 billion as of December 31, 2022, up from RMB 33 billion in 2021, representing an increase of about 18.2%[20] - The total borrowings as of December 31, 2022, were RMB 20,313,380 thousand, a decrease from RMB 22,383,645 thousand in 2021, reflecting a reduction of approximately 9.2%[30] - The company's current liabilities, including accounts payable, decreased to RMB 27,183,330 thousand in 2022 from RMB 37,276,917 thousand in 2021, representing a reduction of 27.1%[39] Sales and Market Performance - The total sales of passenger vehicles in China for 2022 reached 23.563 million units, a year-on-year growth of 9.5%[49] - Sales of new energy vehicles in China surged to 6.887 million units in 2022, marking a significant year-on-year increase of 93.4% and capturing a market share of 25.6%[49] - The sales of Chinese brand passenger vehicles reached 11.766 million units in 2022, reflecting a year-on-year growth of 22.8% and achieving a historical market share high of 49.9%[49] - The company holds a 51.0% stake in Beijing Benz, which has become a key player in the production and sales of Mercedes-Benz vehicles in China[53] - Beijing Brand's overseas vehicle exports reached 18,000 units in 2022, marking an increase of 81.8% year-on-year[60] Research and Development - The company is focusing on R&D in electric, intelligent, and connected vehicles, with plans to launch a new EV model featuring F-OTA technology in 2023[66] - The company established the largest R&D center within the Mercedes-Benz group in its joint venture, enhancing its capabilities in battery testing and prototype vehicle production[66] - Research and development expenses increased by 2.3% from RMB 2,651.4 million in 2021 to RMB 2,712.5 million in 2022, reflecting the group's commitment to product development[72] Operational Efficiency - The company is committed to sustainable development through digitalization and automation, achieving over 90% automation in its production processes[64] - The production facilities are equipped with flexible production lines, allowing for quick adjustments to production plans in response to market demand[63] - The company is optimizing its dealer network and enhancing customer experience to improve overall competitiveness[65] Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to enhance product offerings in the coming years[10] - The company aims to accelerate the transition to electrification and intelligence, focusing on high-quality development in 2023[83] - The Chinese automotive market is projected to maintain stability, with an anticipated improvement in chip shortages and an increase in the market share of new energy vehicles[81] - New energy vehicle purchase tax exemptions will remain unchanged in 2023, with local policies continuing to promote demand in the new energy market[82] Employee and Workforce - The total number of employees increased from 18,694 at the end of 2021 to 19,491 at the end of 2022, indicating growth in workforce[75] - Employee costs rose by 11.7% from RMB 5,201.8 million in 2021 to RMB 5,809.1 million in 2022, driven by increased production and average wage growth[75]

Financial Performance - Total operating revenue for the first nine months of 2022 reached RMB 141.88 billion, an increase from RMB 123.87 billion in the same period of 2021, representing a growth of approximately 14.6%[5] - Net profit attributable to shareholders for the first nine months of 2022 was RMB 3.22 billion, compared to RMB 2.67 billion in 2021, reflecting a year-on-year increase of about 20.6%[5] - The total comprehensive income for the first nine months of 2022 was RMB 11.42 billion, a decrease of 8.55% compared to RMB 12.49 billion in the same period of 2021[6] - Total operating revenue for the first nine months of 2022 reached RMB 4,387,313,066.77, a significant increase from RMB 2,772,917,154.02 in the same period of 2021, representing a growth of approximately 58.2%[15] - Net profit for the first nine months of 2022 was RMB 1,807,064,565.86, down from RMB 3,567,157,842.57 in 2021, indicating a decline of approximately 49.3%[15] - The total comprehensive income for the first nine months of 2022 was RMB 1,818,045,013.31, compared to RMB 3,558,565,275.72 in 2021, showing a decline of about 48.9%[15] Assets and Liabilities - Total assets as of September 30, 2022, amounted to RMB 178.64 billion, a slight decrease from RMB 180.84 billion at the end of 2021[3] - Current assets totaled RMB 87.31 billion as of September 30, 2022, compared to RMB 86.64 billion at the end of 2021, indicating a marginal increase[2] - Total liabilities decreased to RMB 98.20 billion as of September 30, 2022, down from RMB 105.96 billion at the end of 2021, showing a reduction of approximately 7.3%[3] - The total current assets as of September 30, 2022, were RMB 33.79 billion, down from RMB 37.60 billion at the end of 2021, indicating a decrease of 10.56%[10] - The company's total assets as of September 30, 2022, were RMB 89.56 billion, a decrease from RMB 92.26 billion at the end of 2021[12] - The total liabilities as of September 30, 2022, were RMB 27.76 billion, a decrease from RMB 30.99 billion as of December 31, 2021[12] Cash Flow - The net cash flow from operating activities for the first nine months of 2022 was RMB 17.48 billion, compared to a negative cash flow of RMB 8.54 billion in the same period of 2021[7] - Cash received from the sale of goods and services increased to RMB 158.03 billion in the first nine months of 2022, up from RMB 134.40 billion in the same period of 2021, representing a growth of 17.59%[7] - Cash flow from operating activities showed a net outflow of RMB 1,510,079,208.64 in 2022, compared to a net inflow of RMB 917,944,170.69 in 2021[16] - Cash flow from investing activities generated a net inflow of RMB 1,962,255,011.82 in 2022, contrasting with a net outflow of RMB 1,835,268,655.04 in 2021[17] - Cash flow from financing activities resulted in a net outflow of RMB 3,790,496,991.42 in 2022, compared to a net inflow of RMB 948,684,075.72 in 2021[17] - The company's cash and cash equivalents at the end of September 2022 were RMB 41.36 billion, an increase from RMB 27.52 billion at the end of 2021[9] Research and Development - Research and development expenses for the first nine months of 2022 were RMB 602 million, slightly lower than RMB 666 million in the same period of 2021[5] - Research and development expenses were notably low at RMB 9,031.39 in 2022, compared to RMB 4,557,980.24 in 2021, indicating a significant reduction in investment in this area[15] Investments - The company’s long-term equity investments increased to RMB 14.46 billion as of September 30, 2022, up from RMB 12.53 billion at the end of 2021, indicating a growth of approximately 15.4%[2] - Long-term equity investments increased to RMB 43.24 billion as of September 30, 2022, compared to RMB 39.94 billion at the end of 2021, reflecting a growth of 8.06%[11] - The company’s investment income for the first nine months of 2022 was RMB 5,709,192,880.71, down from RMB 6,680,406,472.38 in 2021, reflecting a decrease of approximately 14.5%[15] Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[1]

Financial Performance - In the first half of 2022, BAIC Motor achieved a total vehicle sales of 399,000 units, generating a consolidated revenue of RMB 83.68 billion, and a profit attributable to equity holders of RMB 2.16 billion, with an earnings per share of RMB 0.27[8][13]. - The company's revenue decreased from RMB 90,375.2 million in the first half of 2021 to RMB 83,678.6 million in the first half of 2022, a year-on-year decline of 7.4%[58]. - Gross profit fell from RMB 21,325.0 million in the first half of 2021 to RMB 18,559.9 million in the first half of 2022, representing a decrease of 13.0%[58]. - The net profit attributable to equity holders decreased from RMB 2,758.1 million in the first half of 2021 to RMB 2,158.3 million in the first half of 2022, a year-on-year decline of 21.7%[58]. - The total comprehensive income for the first half of 2022 was RMB 7,492,858 thousand, down from RMB 10,456,258 thousand in the first half of 2021, a decrease of about 28.7%[71]. - The basic and diluted earnings per share for the first half of 2022 were RMB 0.27, down from RMB 0.34 in the same period of 2021, a decrease of approximately 20.6%[70]. - The company reported a net profit before tax of RMB 11,445,523 thousand for the first half of 2022, compared to RMB 13,578,950 thousand in the first half of 2021, reflecting a decline of about 15.7%[70]. Sales and Market Performance - The wholesale sales of passenger vehicles in the first half of 2022 included 22,000 units from the Beijing brand, 267,000 units from Beijing Benz, and 94,000 units from Beijing Hyundai, showing a decline in sales for the Beijing brand and Beijing Benz compared to the same period in 2021[15]. - The sales of new energy passenger cars accounted for 24.0% of total passenger car sales in the first half of 2022, marking a new high in sales volume[30]. - Beijing Benz achieved vehicle sales of 267,000 units in the first half of 2022, maintaining its position among domestic luxury brands[31]. - Beijing Hyundai's wholesale sales reached 94,000 units, while retail sales were 109,000 units in the first half of 2022[32]. - The high-end brand passenger car wholesale sales reached 1.708 million units in the first half of 2022, a decrease of 1.2% year-on-year[30]. Assets and Liabilities - The total assets as of June 30, 2022, were RMB 177.47 billion, with total liabilities of RMB 101.00 billion, resulting in equity attributable to the company's shareholders of RMB 53.25 billion[13]. - The company's total assets as of June 30, 2022, were RMB 177,473,821 thousand, a decrease from RMB 180,844,377 thousand at the end of 2021, representing a decline of approximately 1.3%[74]. - Total liabilities decreased to RMB 101,000,639 thousand as of June 30, 2022, from RMB 105,957,302 thousand at the end of 2021, indicating a reduction of about 4.5%[74]. - The debt-to-asset ratio decreased from 58.6% at the end of 2021 to 56.9% as of June 30, 2022, a year-on-year decline of 1.7 percentage points[60]. - Total outstanding borrowings as of June 30, 2022, were RMB 19,984.8 million, including short-term borrowings of RMB 12,767.2 million and long-term borrowings of RMB 7,217.6 million[60]. Research and Development - The company has developed and mass-produced multiple engines and transmissions, with the "Magic Core" 1.5T engine winning the "China Heart" Top Ten Engines award in 2021[23]. - Research and development expenses increased from RMB 1,229.6 million in the first half of 2021 to RMB 1,326.0 million in the first half of 2022[61]. - The company aims for "full electrification" in its product planning and technology roadmap, focusing on new products, new energy, and exports to stabilize market deliveries and boost sales[42]. Strategic Initiatives - The company plans to introduce and develop eight new vehicle models in the first half of 2022, with a focus on enhancing competitiveness throughout the product lifecycle[36]. - The company and Hyundai Motor signed a joint venture agreement, with a capital increase of approximately $942 million, where each party contributes about $471 million, maintaining a 50% ownership in Beijing Hyundai[38]. - The company plans to acquire at least 35.99% of the new A-shares issued by BAIC Blue Valley, with a maximum investment of approximately RMB 2.879 billion, potentially increasing its stake to between 6.25% and 24.36% post-acquisition[40]. Operational Efficiency - The production facilities are equipped with flexible production lines, allowing for quick adjustments to production plans in response to market demand[37]. - The company is actively enhancing its supply chain risk management to ensure stability and improve production efficiency and quality[34]. - The company aims to improve operational efficiency, targeting a 10% reduction in costs over the next year[137]. Corporate Governance - The board of directors did not propose any interim dividend for the first half of 2022[52]. - The audit committee has reviewed the unaudited interim financial statements for the first half of 2022[52]. - There were no significant events affecting the group after the reporting period[51]. - The company has established an audit committee with a defined written terms of reference[52]. - There were no changes in the composition of the board, strategic committee, audit committee, nomination committee, and remuneration committee during the reporting period[52]. Economic Context - The Chinese GDP growth rate for the first half of 2022 was reported at 2.5%, indicating significant economic pressure due to various factors[30]. - The automotive industry faced significant pressure in the first half of 2022 due to supply shortages and rising raw material prices, but is expected to recover in the second half with the easing of the pandemic and implementation of stimulus policies[42].

Financial Performance - Total revenue for Q1 2022 was RMB 45.73 billion, a decrease of 8.3% compared to RMB 49.81 billion in Q1 2021[6] - Net profit for Q1 2022 was RMB 4.56 billion, down 11.1% from RMB 5.13 billion in Q1 2021[6] - Total revenue for Q1 2022 was RMB 51.68 billion, a decrease of 7.4% compared to RMB 55.73 billion in Q1 2021[8] - The company reported a net loss attributable to shareholders of RMB 528.90 million in Q1 2022, compared to a loss of RMB 132.93 million in Q1 2021[7] - Net profit for Q1 2022 was a loss of RMB 873,899,699.62, worsening from a loss of RMB 797,174,492.06 in Q1 2021[15] - The company reported a total comprehensive income of RMB (869,925,143.37) for Q1 2022, compared to RMB (797,174,492.06) in Q1 2021[16] Assets and Liabilities - Total assets as of March 31, 2022, were RMB 174.49 billion, a decrease from RMB 180.84 billion as of December 31, 2021[5] - Current assets decreased to RMB 79.97 billion from RMB 86.64 billion, a decline of 7.7%[2] - Total current assets decreased to RMB 33.43 billion as of March 31, 2022, from RMB 37.60 billion at the end of 2021[10] - Long-term equity investments increased to RMB 14.17 billion, up 13.1% from RMB 12.53 billion[3] - Long-term equity investments increased to RMB 41.66 billion as of March 31, 2022, compared to RMB 39.94 billion at the end of 2021[11] - Total liabilities decreased to RMB 95.50 billion from RMB 105.96 billion, a reduction of 9.0%[5] - Total liabilities decreased to RMB 29.11 billion as of March 31, 2022, from RMB 30.99 billion at the end of 2021[13] Cash Flow and Investments - The company’s cash and cash equivalents were RMB 40.27 billion, a decrease of 5.5% from RMB 42.60 billion[2] - Cash and cash equivalents at the end of Q1 2022 were RMB 38.62 billion, down from RMB 50.73 billion at the end of Q1 2021[9] - Cash flow from operating activities for Q1 2022 was negative at RMB (79,826,109.61), an improvement from RMB (3,123,418,875.06) in Q1 2021[17] - Cash flow from investing activities in Q1 2022 was negative at RMB (1,629,462,355.19), compared to RMB (166,598,041.15) in Q1 2021[18] - Cash flow from financing activities in Q1 2022 generated RMB 3,200,000,000.00, down from RMB 7,000,000,000.00 in Q1 2021[18] - The company raised RMB 30.70 million from new investments in Q1 2022, compared to no new investments in Q1 2021[9] Inventory and Expenses - Inventory as of March 31, 2022, was RMB 19.02 billion, down 10.0% from RMB 21.14 billion[2] - The company’s inventory decreased to RMB 974.09 million as of March 31, 2022, from RMB 1.32 billion at the end of 2021[10] - Research and development expenses for Q1 2022 were RMB 150.22 million, down 30.8% from RMB 217.21 million in Q1 2021[6] - Research and development expenses for Q1 2022 were RMB 9,031.39, significantly lower than RMB 3,550,998.18 in Q1 2021[15] Market Strategy - The company plans to focus on expanding its market presence and developing new technologies in the upcoming quarters[7] Sales Performance - The company experienced a significant increase in cash inflow from sales, totaling RMB 2,487,700,541.70 in Q1 2022, compared to RMB 821,276,299.82 in Q1 2021[17] Operating Costs - Total operating costs for Q1 2022 were RMB 2,921,177,408.34, compared to RMB 1,493,097,074.89 in Q1 2021, indicating an increase of about 95%[15]

Financial Performance - The consolidated revenue for 2021 was RMB 175.92 billion, with a net profit of RMB 15.15 billion, reflecting a stable performance despite external challenges[10]. - The company proposed a dividend of RMB 0.16 per share for the fiscal year 2021, aimed at returning value to shareholders[10]. - The company reported a gross profit of RMB 37.64 billion in 2021, with a gross margin of approximately 21.4%[14]. - The total sales cost for 2021 was RMB 138.27 billion, resulting in a decrease in gross profit compared to the previous year[14]. - The group's revenue decreased from RMB 176,973.0 million in 2020 to RMB 175,915.7 million in 2021, a decline of 0.6% year-on-year, primarily due to reduced revenue from Beijing Benz[80]. - Revenue related to Beijing Benz fell from RMB 169,695.5 million in 2020 to RMB 167,966.4 million in 2021, a decrease of 1.0%, with sales volume dropping by 8.2% year-on-year[80]. - The net profit attributable to equity holders increased significantly from RMB 2,028.8 million in 2020 to RMB 3,858.2 million in 2021, marking a 90.2% year-on-year increase[80]. - The group's gross profit declined from RMB 42,139.9 million in 2020 to RMB 37,643.2 million in 2021, a decrease of 10.7%, mainly due to reduced gross profit from Beijing Benz[81]. - The cash generated from operating activities dropped from RMB 26,007.6 million in 2020 to RMB 12,903.0 million in 2021, a decline of 50.4%[83]. - The group's capital expenditures decreased from RMB 8,358.1 million in 2020 to RMB 7,066.0 million in 2021, a reduction of 15.5%[87]. Sales and Market Performance - In 2021, the company achieved a total vehicle sales volume of 1.031 million units across its brands, including Beijing Brand, Beijing Benz, Beijing Hyundai, and Fujian Benz[7]. - In 2021, the automotive industry in China saw a total passenger vehicle sales of 21.482 million units, a year-on-year increase of 6.5%[8]. - Beijing Benz sold 561,000 units in 2021, maintaining its position as a leading domestic luxury brand[10]. - Beijing Hyundai achieved stable operations with a sales volume of 361,000 units, adapting to market changes and pandemic impacts[10]. - Sales of Beijing brand vehicles fell from 81,792 units in 2020 to 72,434 units in 2021, a decline of about 11.5%[18]. - Sales of Beijing Benz vehicles decreased from 610,816 units in 2020 to 561,008 units in 2021, a drop of approximately 8.1%[18]. - Sales of Beijing Hyundai vehicles dropped from 446,082 units in 2020 to 360,565 units in 2021, a decline of around 19.2%[18]. - In 2021, Beijing brand launched a new product planning strategy focusing on fuel, hybrid, and electric vehicles, aiming to enhance user experience[24]. - The sales of new energy passenger vehicles in China surged to 3.334 million units in 2021, marking a year-on-year increase of 167.5%[53]. - The company achieved total vehicle sales of 1.031 million units in 2021, with the Beijing brand selling 72,000 units and a 72.9% increase in sales of new energy vehicles[54][56]. Strategic Focus and Future Plans - The company plans to focus on "electrification, intelligence, and connectivity" in 2022, enhancing its operational capabilities and management levels[11]. - The company aims to strengthen supply assurance and lean production for its new energy vehicle models in 2022[11]. - The company aims to optimize its product structure and enhance brand strength through continuous innovation and market expansion[21]. - The company is focusing on innovation and product diversification, with a strong emphasis on new energy, intelligence, and connectivity technologies to meet diverse market demands[40]. - The company aims to enhance operational capabilities and achieve dual improvements in market scale and development quality in 2022, accelerating strategic transformation and product iteration[74]. - Beijing brand will focus on the transformation towards "electrification, intelligence, and networking," enhancing operational capabilities to meet annual business goals[75]. - The 2022 outlook predicts a moderate growth trend in the Chinese passenger car market, with macroeconomic growth expected to stabilize and consumer demand gradually recovering[70]. - The 2022 new energy vehicle subsidy policy will maintain the current framework and thresholds, with no cap on the subsidy scale, expected to support strong growth in the new energy vehicle market[72]. Research and Development - The company is focusing on R&D capabilities, emphasizing "intelligent networking" and "electrification," with a significant investment in the largest R&D center of the Mercedes-Benz Group in the joint venture[66]. - The company has developed multiple engine and transmission models, including the award-winning "Magic Core" 1.5T engine, which received the "China Heart" Top Ten Engine Award in 2021[33]. - Beijing Hyundai has been manufacturing engines since 2004, with products covering four major series: BETA, Kappa, Gamma, and Gamma II, leading the industry in technology and power[33]. - The company is committed to lightweight R&D, new energy technology transformation, and big data applications, continuing to innovate in related businesses[39]. Corporate Governance and Compliance - The company is committed to improving corporate governance and has strengthened its management systems to align with listing requirements[121]. - The company has established a compliance mechanism to ensure adherence to relevant laws and regulations, with no significant litigation disputes reported in 2021[121]. - The company has not reported any violations of significant laws or regulations in 2021, ensuring compliance and integrity in operations[122]. - The board of directors was restructured on March 24, 2021, with new appointments including Mr. Jiang Deyi as chairman and several new non-executive directors[127]. - The company has obtained liability insurance for directors, supervisors, and senior management against relevant legal lawsuits[156]. - The company continues to focus on legal compliance and corporate governance to protect shareholder interests and enhance board functionality[119]. Supply Chain and Procurement - The company emphasizes maintaining strong relationships with suppliers and customers to achieve both short-term and long-term goals[117]. - The top five suppliers represented about 65.7% of the raw material costs used in sales, with the largest supplier accounting for approximately 44.5%[115]. - The procurement of products under the framework agreement amounted to RMB 26.635 billion in 2021, while procurement services totaled RMB 3.5526 billion[180]. - The actual amount of supply products under the framework agreement with BAIC Group for the year 2021 was RMB 17,209.4 million, while the actual amount for supply services was RMB 37.0 million[183]. - The agreement ensures that the terms of transactions with BAIC Group are no less favorable than those with independent third parties[182]. Employee and Operational Efficiency - The company has 18,694 full-time employees as of the end of 2021, with 13,571 in production roles and 3,711 in technical positions[200]. - The number of employees decreased from 21,038 at the end of 2020 to 18,694 at the end of 2021, while employee costs fell from RMB 5,363.9 million to RMB 5,201.8 million, a decline of 3.0%[90]. - The production automation rate at Beijing Hyundai exceeds 90%, ensuring high precision and quality output while effectively managing production costs[63]. - The company is committed to optimizing the dealer network and enhancing customer experience, with a focus on improving dealer profitability and operational efficiency through the "2020 Network Upgrade Plan"[64]. Risk Management - The company continues to monitor the impact of the COVID-19 pandemic on its financial condition and operating performance, as purchasing power has not fully recovered[95]. - The company is aware of the risks posed by macroeconomic fluctuations, which could affect consumer purchasing power and demand for its products[96]. - The company faces intensified market competition as the automotive industry undergoes transformation and upgrade, necessitating increased R&D investment[97]. - The company is at risk from fluctuations in raw material prices and supply chain disruptions, particularly concerning steel, aluminum, and chip shortages[98]. Environmental and Social Responsibility - The company adheres to environmental policies and regulations, focusing on "green operations and sustainable development" to reduce the environmental impact of its products throughout their lifecycle[118]. - In 2021, the company implemented energy-saving measures to improve energy efficiency and reduce energy consumption, aiming for continuous improvement in energy performance[118]. - The company aims to transition towards a "carbon-neutral" model through ongoing energy-saving initiatives and technological improvements[118].