Financial Performance - In the first half of 2024, BAIC achieved vehicle sales of 450,189 units, a decrease from 507,326 units in the same period of 2023, representing a decline of approximately 11.3%[11] - The consolidated revenue for the first half of 2024 was RMB 94.32 billion, down from RMB 99.05 billion in the first half of 2023, reflecting a decrease of about 4.5%[11] - The net profit attributable to equity holders of the company for the first half of 2024 was RMB 1.98 billion, compared to RMB 2.85 billion in the same period of 2023, indicating a decline of approximately 30.4%[11] - The company reported a gross profit of RMB 18.69 billion for the first half of 2024, down from RMB 20.57 billion in the first half of 2023, which is a decrease of around 9.2%[11] - The company's revenue decreased from RMB 99,047.1 million in the first half of 2023 to RMB 94,322.3 million in the first half of 2024, representing a decline of 4.8% year-on-year, primarily due to reduced income from both fuel and new energy vehicles[55] - Gross profit fell from RMB 20,566.1 million in the first half of 2023 to RMB 18,686.8 million in the first half of 2024, a decrease of 9.1%, mainly attributed to lower gross profit from fuel vehicles[55] - Net profit attributable to equity holders decreased from RMB 2,845.7 million in the first half of 2023 to RMB 1,978.0 million in the first half of 2024, a decline of 30.5%[55] - The profit for the six months ended June 30, 2024, was RMB 6,866,298 thousand, a decrease of 19.7% compared to RMB 8,551,305 thousand for the same period in 2023[66] - The total comprehensive income for the period was RMB 8,350,835 thousand, down 4.7% from RMB 8,764,885 thousand in the previous year[66] Assets and Liabilities - BAIC's total assets as of June 30, 2024, were RMB 170.36 billion, an increase from RMB 168.72 billion at the end of 2023[11] - Total assets as of June 30, 2024, amounted to RMB 170,361,142 thousand, an increase from RMB 168,723,153 thousand at the end of 2023, representing a growth of about 1.0%[64] - Total liabilities decreased to RMB 88,654,790 thousand from RMB 89,339,535 thousand, indicating a reduction of approximately 0.8%[64] - Total equity increased to RMB 81,706,352 thousand from RMB 79,383,618 thousand, reflecting a growth of about 2.9%[64] - The company's debt-to-asset ratio decreased from 53.0% at the end of 2023 to 52.0% as of June 30, 2024, reflecting a 1.0 percentage point decline[57] - The net debt-to-equity ratio improved from -29.0% at the end of 2023 to -33.5% as of June 30, 2024, due to an increase in total equity and a decrease in total borrowings[57] Product Development and Market Strategy - The company has launched several new products, including the BJ40 Blade Hero and BJ60 Magic Core Electric Drive, as part of its strategy to optimize its product matrix[4] - BAIC is focusing on both domestic and international markets, with steady improvements in export sales during the reporting period[4] - The company has introduced its first Magic Core Electric Drive technology and is continuing to deepen its layout in the new energy sector[4] - The product matrix is continuously enriched to meet diverse consumer demands, reflecting the company's commitment to innovation and market responsiveness[15] - The company launched several new products, including the BJ30 electric off-road vehicle and the 11th generation Sonata, enhancing its product matrix[26] - The company is actively pursuing strategic collaborations, including partnerships with Huawei, to enhance its technological capabilities[21] - The company is investing in R&D for electric vehicles, with a budget allocation of RMB 500 million for the upcoming fiscal year[127] - Market expansion efforts include entering two new international markets, aiming for a 5% market share in each by the end of 2025[127] Operational Efficiency and Cost Management - The company is committed to innovation and transformation, combining long-term and short-term measures to unlock growth channels[37] - The group is enhancing its operational efficiency and competitiveness through the integration of production and finance, as well as industry cooperation[36] - The company has set a target to reduce operational costs by 10% through efficiency improvements in the supply chain[127] Marketing and Customer Engagement - The company is enhancing its marketing strategies through new media and fan engagement, aiming to improve brand exposure and customer service[33] - New marketing strategies are being implemented, focusing on digital channels, which are expected to increase brand engagement by 25%[127] Corporate Governance and Management Changes - The fifth supervisory board was formed on March 19, 2024, with five members, including Zhang Ran as the chairman[40] - On March 22, 2024, Song Wei was elected as the president of the company, effective immediately[41] - The company has appointed Zhang Kai as the vice president effective April 26, 2024[47] Environmental and Sustainable Development - BAIC is committed to green development and is enhancing its product quality system while exploring sustainable development paths[4] - The company is implementing green initiatives in its manufacturing processes, including solar energy management and rainwater recycling[30] Future Outlook - The automotive industry is expected to experience stable growth in the second half of 2024, driven by policy effects that will release consumer potential[37] - The future outlook includes a projected revenue growth of 10% for the second half of 2024, driven by new product launches and market expansion strategies[127]

Financial Statements and Notes [Interim Condensed Consolidated Statement of Comprehensive Income](index=2&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E7%B6%9C%E5%90%88%E6%94%B6%E7%9B%8A%E8%A1%A8) The Group experienced a decline in total revenue, gross profit, and net profit attributable to equity holders in H1 2024, with basic earnings per share at RMB 0.25 Key Income Statement Data for H1 2024 | Metric | For the six months ended June 30, 2024 (RMB '000) | For the six months ended June 30, 2023 (RMB '000) | YoY Change | | :--- | :--- | :--- | :--- | | **Revenue** | 94,322,292 | 99,047,066 | -4.8% | | **Gross Profit** | 18,686,757 | 20,566,103 | -9.1% | | **Operating Profit** | 10,750,177 | 12,585,178 | -14.6% | | **Profit for the Period** | 6,866,298 | 8,551,305 | -19.7% | | **Profit Attributable to Equity Holders of the Company** | 1,978,021 | 2,845,716 | -30.5% | | **Basic Earnings Per Share (RMB)** | 0.25 | 0.36 | -30.6% | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5%E8%A1%A8) As of June 30, 2024, the Group's total assets slightly increased to **RMB 170.36 billion**, total liabilities slightly decreased, and total equity rose to **RMB 81.71 billion**, optimizing the capital structure with a debt-to-asset ratio reduction from 53.0% to 52.0% Key Balance Sheet Items | Metric | As of June 30, 2024 (RMB '000) | As of December 31, 2023 (RMB '000) | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | 170,361,142 | 168,723,153 | +1.0% | | **Total Liabilities** | 88,654,790 | 89,339,535 | -0.8% | | **Total Equity** | 81,706,352 | 79,383,618 | +2.9% | | **Cash and Cash Equivalents** | 31,375,177 | 31,124,229 | +0.8% | [Notes to the Financial Statements](index=6&type=section&id=%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) The notes detail significant events, accounting policies, and financial item breakdowns, highlighting that while the fuel vehicle business remains the primary revenue source despite a 2.6% decline, the new energy vehicle business saw a 34.7% revenue drop and remains unprofitable, with no interim dividend proposed - The company entered into a trusteeship agreement with its controlling shareholder, BAIC Group, to manage voting rights of BAIC BluePark, but as of the reporting period, the company has not gained control and thus has not consolidated it[9](index=9&type=chunk) Segment Performance (For the six months ended June 30) | Segment | Item (RMB '000) | 2024 | 2023 | YoY Change | | :--- | :--- | :--- | :--- | :--- | | **Fuel Vehicles** | **Total Revenue** | 89,961,975 | 92,364,754 | -2.6% | | | **Segment Gross Profit** | 20,162,718 | 21,983,175 | -8.3% | | **New Energy Vehicles** | **Total Revenue** | 4,360,317 | 6,682,312 | -34.7% | | | **Segment Gross Loss** | (1,475,961) | (1,417,072) | -4.2% | - The Board did not propose an interim dividend for the first half of 2024, while the 2023 final dividend of approximately **RMB 1.042 billion** (RMB 0.13 per share) was approved by shareholders in June 2024[26](index=26&type=chunk) Business Overview and Operations [Key Business Operations](index=14&type=section&id=%E4%B8%80%E3%80%81%E4%B8%BB%E8%A6%81%E6%A5%AD%E5%8B%99%E6%83%85%E6%B3%81) The Group's core business involves R&D, manufacturing, and sales of passenger vehicles, encompassing whole vehicles, core components, auto finance, and international operations through four key brands covering both fuel and new energy vehicle models - The Group operates its passenger vehicle business through four key brands: - **Beijing Brand**: An independent brand covering fuel and new energy vehicle models - **Beijing Benz**: A 51% owned subsidiary producing Mercedes-Benz passenger vehicles - **Beijing Hyundai**: A 50% owned joint venture producing Hyundai passenger vehicles - **Fujian Benz**: A 35% owned joint venture with concerted action, producing Mercedes-Benz multi-purpose passenger vehicles[28](index=28&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk) - In addition to whole vehicles, the Group also produces core components such as engines, powertrains, and power batteries, and conducts auto finance business through associates and joint ventures[33](index=33&type=chunk)[34](index=34&type=chunk) [Industry Development and Group Operations](index=17&type=section&id=%E4%BA%8C%E3%80%81%E4%BA%8C%E9%9B%B6%E4%BA%8C%E5%9B%9B%E5%B9%B4%E4%B8%8A%E5%8D%8A%E5%B9%B4%E8%A1%8C%E6%A5%AD%E7%99%BC%E5%B1%95%E6%83%85%E6%B3%81) In H1 2024, despite market growth driven by new energy vehicles and exports, the Group achieved **450,000 wholesale** and **476,000 retail** vehicle sales, actively pursuing multi-technology product strategies, expanding overseas markets with **38,000 exports**, increasing R&D investment, and deepening new energy vehicle presence through strategic trusteeship of BAIC BluePark - Industry Background: In H1 2024, China's passenger vehicle sales reached **11.979 million units**, with new energy vehicles accounting for **35.2%** of the market and Chinese brands holding **61.9%** market share[36](index=36&type=chunk) - The Group achieved total vehicle wholesale of **450,000 units** and retail sales of **476,000 units** in the first half[37](index=37&type=chunk) - Breakthroughs were made in overseas markets, with **38,000 vehicles exported** during the reporting period, outperforming the overall market growth rate[39](index=39&type=chunk) - The Group actively promotes technological innovation, with R&D expenditure increasing again, focusing on core technologies such as intelligent driving and electrified off-road vehicles[40](index=40&type=chunk) - A trusteeship agreement was signed with BAIC Group for BAIC BluePark, aiming to deepen the new energy industry layout, enhance comprehensive resource utilization, and improve industry competitiveness[44](index=44&type=chunk) [H2 2024 Outlook](index=22&type=section&id=%E5%9B%9B%E3%80%81%E4%BA%8C%E9%9B%B6%E4%BA%8C%E5%9B%9B%E5%B9%B4%E4%B8%8B%E5%8D%8A%E5%B9%B4%E5%B1%95%E6%9C%9B) For H2 2024, the Group plans to focus on off-road, SUV, mid-to-high-end hybrid, and overseas markets to boost high-value product sales, with each brand aiming to enhance competitiveness, consolidate market position, stabilize sales, expand exports, and improve efficiency - In the second half, the focus will be on key segments (off-road, SUV, mid-to-high-end hybrid) and overseas opportunity markets to expand sales of high-value, high-volume products[45](index=45&type=chunk) - Key development priorities for each brand include: - **Beijing Brand**: Focusing on new products and off-road vehicle competitiveness - **Beijing Benz**: Accelerating high-quality project implementation and consolidating market leadership - **Beijing Hyundai**: Stabilizing sales pace and continuously expanding exports - **Fujian Benz**: Maintaining stable operations and promoting quality improvement and efficiency gains[45](index=45&type=chunk) Management Discussion and Analysis [Financial Performance Analysis](index=23&type=section&id=%E6%94%B6%E5%85%A5%E5%8F%8A%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%AC%8A%E7%9B%8A%E6%8C%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%B5%E6%B7%A8%E5%88%A9%E6%BD%A4) Influenced by declining sales and changes in vehicle mix, the Group's H1 revenue decreased by 4.8% to **RMB 94.32 billion**, and net profit fell by 30.5% to **RMB 1.98 billion**, with both fuel and new energy vehicle segments experiencing revenue and gross profit declines, and new energy vehicle gross loss expanding by 4.2% Revenue and Net Profit YoY Change | Item | H1 2024 (RMB millions) | H1 2023 (RMB millions) | YoY Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | 94,322.3 | 99,047.1 | -4.8% | | - Fuel Vehicle Related Revenue | 89,962.0 | 92,364.8 | -2.6% | | - New Energy Vehicle Related Revenue | 4,360.3 | 6,682.3 | -34.7% | | **Net Profit Attributable to Equity Holders** | 1,978.0 | 2,845.7 | -30.5% | Gross Profit YoY Change | Item | H1 2024 (RMB millions) | H1 2023 (RMB millions) | YoY Change | | :--- | :--- | :--- | :--- | | **Total Gross Profit** | 18,686.8 | 20,566.1 | -9.1% | | - Fuel Vehicle Gross Profit | 20,162.7 | 21,983.2 | -8.3% | | - New Energy Vehicle Gross Profit | (1,476.0) | (1,417.1) | -4.2% | [Liquidity and Capital Structure](index=24&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) The Group maintains a robust financial position with its debt-to-asset ratio decreasing from 53.0% to 52.0%, holding **RMB 31.38 billion** in cash and equivalents and **RMB 24.85 billion** in unused bank facilities, despite a 15.9% YoY decline in net cash from operating activities to **RMB 11.53 billion** due to reduced revenue - Net cash generated from operating activities decreased by **15.9%** to **RMB 11.53 billion** from **RMB 13.71 billion** in the prior period[48](index=48&type=chunk) - The debt-to-asset ratio decreased from **53.0%** at the end of 2023 to **52.0%**, and the net debt-to-equity ratio improved from **-29.0%** to **-33.5%**, indicating an optimized capital structure[49](index=49&type=chunk) - As of June 30, 2024, the Group held **RMB 31.38 billion** in cash and cash equivalents, with **RMB 10.89 billion** in outstanding borrowings and **RMB 24.85 billion** in unused bank credit facilities[48](index=48&type=chunk) [Significant Investments and Other Financial Matters](index=24&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87) In H1, capital expenditure slightly decreased to **RMB 2.21 billion**, while R&D expenditure significantly increased by 74.2% to **RMB 1.80 billion**, primarily for off-road vehicles and next-generation EV platforms, alongside a **RMB 0.32 billion** foreign exchange loss due to RMB-Euro fluctuations - Total R&D expenditure increased by **74.2%** to **RMB 1.80 billion** from **RMB 1.03 billion** in the prior period, primarily due to increased investment in off-road vehicle products and next-generation pure electric platforms[50](index=50&type=chunk) - Total capital expenditure decreased from **RMB 2.37 billion** in the prior period to **RMB 2.21 billion**[50](index=50&type=chunk) - Foreign currency exchange shifted from a gain of **RMB 0.102 billion** in the prior period to a loss of **RMB 0.32 billion** in the current period, mainly due to fluctuations in the RMB against the Euro[51](index=51&type=chunk) Other Information [Dividends and Securities Repurchase](index=26&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board did not recommend an interim dividend for H1 2024, and neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the reporting period - The Board did not propose an interim dividend for the first half of 2024[52](index=52&type=chunk) - During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities[52](index=52&type=chunk) [Corporate Governance](index=26&type=section&id=%E9%BC%8E%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The company complied with the Corporate Governance Code during the reporting period, with the fifth Board of Directors and Supervisory Committee established in March 2024 following elections, and the Audit Committee having reviewed the unaudited interim financial statements - The company consistently complied with the provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules during the reporting period[53](index=53&type=chunk) - The term of the fourth Board of Directors expired, and the fifth Board of Directors was appointed by the shareholders' meeting on March 22, 2024[54](index=54&type=chunk) - The Audit Committee has reviewed the Group's unaudited interim financial statements for the first half of 2024[57](index=57&type=chunk)

Financial Performance - For Q1 2024, total operating revenue was RMB 46.52 billion, a decrease of 2.46% from RMB 47.70 billion in Q1 2023[6] - Total operating costs for Q1 2024 were RMB 41.19 billion, down 1.4% from RMB 41.77 billion in Q1 2023[6] - Net profit attributable to shareholders for Q1 2024 was RMB 1.03 billion, a decline of 29.0% compared to RMB 1.46 billion in Q1 2023[6] - The total comprehensive income for Q1 2024 reached RMB 4,500,727,691.00, an increase from RMB 4,150,950,680.63 in Q1 2023, representing a growth of approximately 8.5%[7] - The net cash flow from operating activities for Q1 2024 was RMB 5,050,662,212.16, down from RMB 6,994,882,684.54 in Q1 2023, indicating a decrease of about 27.9%[9] - The company reported sales revenue from goods and services received in Q1 2024 of RMB 49,216,508,611.04, down from RMB 53,714,090,823.97 in Q1 2023, a decline of about 8.3%[9] - The company reported a total comprehensive income of RMB 193,926,473.27 for Q1 2024, compared to RMB (670,009,903.01) in Q1 2023[16] Cash and Liquidity - Cash and cash equivalents increased to RMB 35.23 billion as of March 31, 2024, up from RMB 33.14 billion at the end of 2023, representing a growth of 6.35%[2] - Cash and cash equivalents at the end of Q1 2024 totaled RMB 33,919,103,169.67, compared to RMB 37,415,555,427.99 at the end of Q1 2023, reflecting a decrease of approximately 9.5%[10] - The company’s cash and cash equivalents at the end of Q1 2024 were RMB 4,313,848,501.81, an increase from RMB 2,015,018,543.81 at the end of Q1 2023[18] Assets and Liabilities - Total assets reached RMB 173.65 billion as of March 31, 2024, compared to RMB 168.72 billion at the end of 2023, marking an increase of 2.77%[5] - Total liabilities amounted to RMB 89.63 billion as of March 31, 2024, slightly up from RMB 89.34 billion at the end of 2023, reflecting a growth of 0.33%[5] - Total liabilities decreased to RMB 19,925,491,964.64 from RMB 20,134,219,409.30 year-over-year[14] - The company's total liabilities as of March 31, 2024, amounted to RMB 12,777,351,334.39, a decrease from RMB 13,004,281,788.54 as of December 31, 2023[13] Strategic Focus and Future Plans - The company plans to focus on market expansion and new product development in the upcoming quarters to drive future growth[6] - Future strategies may involve market expansion and potential mergers and acquisitions[19] - The company is committed to developing new products and technologies to drive growth[19] - Emphasis on user data analysis to inform decision-making and strategy[19] - The company aims to improve operational efficiency through strategic initiatives[19] - Financial performance metrics will be closely monitored to ensure alignment with growth objectives[19] Governance and Board Composition - The board of directors includes Chairman Chen Wei and several non-executive directors[19] - The executive director is Song Wei, with additional non-executive directors including Liu Guanjiao and Ye Qian[19] - The board also comprises independent non-executive directors such as Yin Yuanping and Xu Xiangyang[19] - The company is focused on enhancing its governance structure with a diverse board composition[19] - The board is dedicated to maintaining transparency and accountability in its operations[19] Research and Development - The company reported a decrease in research and development expenses to RMB 165.21 million in Q1 2024 from RMB 186.01 million in Q1 2023, a decline of 11.14%[6]

Sales Performance - In 2023, BAIC Motor Corporation achieved total vehicle sales of 1,042,005 units, representing a year-on-year increase of 7.3%[10] - Sales of new energy vehicles increased by 46.6% year-on-year, totaling 102,000 units sold, surpassing industry averages[11] - The international market saw a significant boost, with export sales rising over 200% to 59,000 units[11] - In 2023, the passenger car market in China saw sales of 26.063 million units, a year-on-year increase of 10.6%[42] - The sales of new energy vehicles reached 9.046 million units in 2023, growing by 38.2% year-on-year, with a market share of 34.7%[42] - The group sold a total of 1.042 million vehicles in 2023, reflecting a year-on-year growth of 7.3%[43] - The sales of new energy vehicles by the group reached 102,000 units, marking a year-on-year increase of 46.6%[45] - The group achieved vehicle exports of 59,000 units, representing a year-on-year growth of over 200%[46] Financial Performance - The company's consolidated revenue for the year reached RMB 197.95 billion, compared to RMB 190.46 billion in 2022[13] - Net profit for 2023 was RMB 13.63 billion, reflecting the company's strong financial performance amid market recovery[10] - Gross profit for the year was RMB 40,070 million, showing a decrease from RMB 42,334 million in the previous year[14] - Profit attributable to equity holders of the company was RMB 3,030 million, down from RMB 4,197 million in the previous year, representing a decrease of approximately 27.8%[15] - The net profit attributable to equity holders decreased from RMB 4,196.6 million in 2022 to RMB 3,030.3 million in 2023, representing a decline of 27.8%[56] - The gross profit decreased from RMB 42,334.2 million in 2022 to RMB 40,070.5 million in 2023, a decline of 5.3%, mainly due to reduced gross profit from both fuel and new energy vehicles[56] Research and Development - R&D expenditures have been continuously increased to enhance core technology control and drive innovation[11] - The group's R&D expenditure increased by over 30% year-on-year in 2023, emphasizing the importance of innovation for future development[48] - Research and development expenses rose by 31.7% from RMB 2,712.5 million in 2022 to RMB 3,571.2 million in 2023, reflecting increased investment in new energy vehicle development[57] - The core R&D team consists of experienced professionals from both domestic and international backgrounds, covering various fields such as intelligent networking and power systems, which strengthens the company's R&D capabilities[32] - The company is committed to advancing new energy, intelligent, and connected technologies, with ongoing projects to refresh its product line[28] Product Development and Innovation - The company launched over 10 new vehicle models during the year, further diversifying its product offerings[11] - The company has launched new models under the Beijing brand, including the new BJ40 and BJ60 off-road vehicles, as well as the EU5 and EU7 new energy vehicles[19] - The company is focusing on enhancing innovative product forms to meet increasingly diverse market demands, with a strong emphasis on quality and high-performance development[28] - The company is steadily advancing new product projects and aims to consolidate its leading position in the high-end luxury car market[28] Market Strategy - BAIC Motor aims to focus on dual strategies of oil and electric vehicles, enhancing both domestic and international market sales[12] - The company is expanding its international business through wholly-owned subsidiaries and partnerships, enhancing its competitive edge in the global market[28] - The company is focusing on expanding its international market presence, particularly in Europe, Central Asia, and Southeast Asia[46] - The company is actively optimizing its sales network and enhancing customer experience through digital marketing and service ecosystem development[50] Sustainability and ESG Initiatives - The company is committed to sustainable development, aiming to reduce carbon footprints and increase the use of green electricity[49] - The company has achieved over 90% automation in its production facilities, ensuring high-quality output and cost efficiency[49] - The company is committed to reducing carbon emissions throughout the entire lifecycle of vehicles, including electric vehicle electrification and alternative fuel usage[187] - The company aims to achieve comprehensive decarbonization of products and operational carbon neutrality by 2050[178] - The company has established an internal carbon trading mechanism to support its low-carbon transformation efforts[178] Governance and Compliance - The company has established a compliance mechanism to ensure adherence to relevant laws and regulations, with no significant litigation disputes reported in 2023[76] - The company continues to strengthen its governance structure and compliance with applicable regulations, ensuring shareholder interests are protected[76] - The board of directors underwent changes in 2023, with new appointments and reassignments, including the appointment of Song Wei as an executive director[78] - The company has established a comprehensive corporate governance structure, including various committees to enhance shareholder value and accountability[123] Employee and Management - The company employed a total of 31,711 employees as of the end of 2023, an increase from 31,511 employees at the end of 2022[114] - The company maintains a competitive compensation structure based on job value and employee performance, aligned with industry standards in the Beijing area[116] - The company has implemented a corporate annuity system to provide supplementary retirement income for eligible employees[117] - The company has established a comprehensive performance evaluation system linking annual operational goals with departmental and individual performance assessments[114] Risk Management - The company has established a comprehensive risk management system based on COSO-ERM and other frameworks, focusing on a full-value chain risk prevention network[155] - The internal control and risk management system is designed to manage risks rather than eliminate them, providing reasonable assurance against significant misstatements or losses[154] - The company emphasizes the importance of effective communication with shareholders to enhance investor relations and ensure informed investment decisions[158] Future Outlook - The automotive market in China is expected to maintain a positive trend in 2024, driven by macroeconomic policies and the ongoing push for electrification[11] - In 2024, China's automobile sales are expected to grow by over 3% according to the China Association of Automobile Manufacturers (CAAM) [51] - The company anticipates a revenue growth of 10% for the upcoming fiscal year, projecting revenues to reach approximately 79.2 billion RMB[170]

转自：上海证券报 上证报中国证券网讯（记者 汤立斌）根据北京市统计局4月18日发布的数据，一季度，北京37个工业行 业大类中，21个行业增加值实现增长，14个行业降幅比前2个月收窄或增速提高。 在重点行业中，汽车制造业增加值同比增长15.2%，增速比1至2月提高13个百分点，新能源整车制造领 域呈现强势增长态势。计算机、通信和其他电子设备制造业增加值增长19%，消费电子领域、集成电路 领域、显示器件领域等主要领域均呈现回暖态势。电力、热力生产和供应业继续保持平稳较快增长，增 加值增长10.6%。医药制造业增加值与上年同期持平，扭转了连续两年的下降趋势。 ...

Financial Performance - Total revenue for the year ended December 31, 2023, was RMB 197,949,177 thousand, an increase of 3.8% compared to RMB 190,462,586 thousand in 2022[11] - Gross profit for the year was RMB 40,070,462 thousand, down 6.0% from RMB 42,334,207 thousand in the previous year[11] - Operating profit decreased to RMB 22,569,113 thousand, a decline of 13.7% from RMB 26,008,890 thousand in 2022[11] - Net profit for the year was RMB 13,626,309 thousand, representing a decrease of 16.6% compared to RMB 16,335,302 thousand in 2022[11] - Basic and diluted earnings per share for the year were RMB 0.38, down from RMB 0.52 in the previous year[13] - The company reported a total comprehensive income of RMB 14,453,684 thousand for the year, compared to RMB 15,509,901 thousand in 2022, reflecting a decline of 6.8%[14] - The company reported a net profit of RMB 13,626,309 thousand for the year ended December 31, 2023, after income tax expenses of RMB 7,373,652 thousand[28] - The company's profit attributable to ordinary shareholders for the year ended December 31, 2023, was RMB 3,030,346,000, a decrease of 28.0% from RMB 4,196,597,000 in 2022[60] - Basic earnings per share for the year ended December 31, 2023, was RMB 0.38, down from RMB 0.52 in 2022, reflecting a decline of 26.9%[60] - The total tax expense for the year ended December 31, 2023, was RMB 7,373,652,000, compared to RMB 8,393,911,000 in 2022, representing a decrease of 12.1%[58] - A cash dividend of RMB 0.13 per share is proposed for the fiscal year 2023, totaling approximately RMB 1.04 billion based on the total share capital[128] Assets and Liabilities - Total assets as of December 31, 2023, were RMB 168,723,153 thousand, a decrease from RMB 173,375,442 thousand in 2022[9] - Total liabilities decreased to RMB 89,339,535 thousand from RMB 94,438,337 thousand in the previous year[9] - Total liabilities increased to RMB 174,831,763 thousand in 2023, up from RMB 164,643,106 thousand in 2022, representing a growth of 6.7%[53] - The group has unrecognized deferred tax assets related to tax losses and deductible temporary differences amounting to approximately RMB 53 billion as of December 31, 2023, up from RMB 48 billion in 2022[32] - The group’s deferred tax liabilities totaled RMB 1,385,608,000 as of December 31, 2023, compared to RMB 1,284,013,000 in 2022, indicating an increase of approximately 7.9%[31] - The debt-to-asset ratio improved from 54.5% at the end of 2022 to 53.0% at the end of 2023, a decrease of 1.5 percentage points due to reduced interest-bearing debt[109] Cash Flow and Expenditures - Cash and cash equivalents as of December 31, 2023, were RMB 31,124,229 thousand, down from RMB 37,227,015 thousand in 2022[5] - Operating cash flow increased by 30.0% from RMB 18,654.1 million in 2022 to RMB 24,248.9 million in 2023, reflecting higher net cash inflow from operating activities[107] - Capital expenditures decreased by 11.2% from RMB 5,520.1 million in 2022 to RMB 4,899.1 million in 2023, while R&D expenditures increased by 31.7% from RMB 2,712.5 million to RMB 3,571.2 million, focusing on new energy vehicle development[110] Sales and Market Performance - In 2023, the total passenger car sales in China reached 26.063 million units, an increase of 10.6% year-on-year[66] - Sales of new energy vehicles in 2023 reached 9.046 million units, a year-on-year increase of 38.2%, with a market share of 34.7%[66] - The sales of Chinese brand passenger cars in 2023 were 14.596 million units, up 24.1% year-on-year, capturing a market share of 56.0%[66] - The company sold 1.042 million vehicles, representing a year-on-year growth of 7.3%[83] - The sales of new energy vehicles reached 102,000 units, with a significant year-on-year increase of 46.6%[85] - The company achieved vehicle exports of 59,000 units, marking a year-on-year growth of over 200%[87] Research and Development - Research and development expenditure increased by over 30% year-on-year in 2023, highlighting the importance of R&D capabilities for future growth[91] - The company launched two hybrid engines in 2023, achieving mass production and receiving recognition as one of the top ten engines in China[91] - The company has established the largest R&D center among joint ventures of the Mercedes-Benz Group, significantly shortening the new product introduction verification cycle[91] Strategic Initiatives - The company is accelerating its transformation towards electrification and intelligence, covering both fuel and new energy vehicle types[71] - The company plans to optimize its industrial chain and enhance brand strength through continuous development in passenger car R&D, manufacturing, sales, and after-sales services[70] - The company is advancing its energy transition strategy, focusing on new energy platforms and models like the EQ series and BJ60[84] - The company has strengthened its international business channels, targeting markets in Europe, Central Asia, and Southeast Asia[87] - The company is committed to green development, actively responding to national carbon neutrality guidelines and enhancing the use of green electricity[94] Operational Efficiency - The company has achieved over 90% automation in its production processes, ensuring high-quality output while effectively reducing manufacturing costs[97] - The company is focusing on building a unified hardware platform and software ecosystem to enhance its AI capabilities in future products[93] Market Outlook - In 2024, China's automotive sales are expected to grow by over 3% according to the China Association of Automobile Manufacturers (CAAM)[122] - The macroeconomic environment is projected to stabilize, with policies supporting the growth of new energy vehicles and artificial intelligence[123] - Continued government policies will further stimulate demand in the new energy vehicle market, including the extension of vehicle purchase tax exemptions[126]

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]