Core Viewpoint - The report highlights that Beijing Automotive Blue Valley (北汽蓝谷) is entering a strong new car cycle with significant revenue growth expected, leading to an optimistic outlook for performance improvement [2][4]. Financial Performance - In the first half of 2025, the company achieved revenue of 9.517 billion yuan, a year-on-year increase of 154.4%, while the net profit attributable to shareholders was a loss of 2.308 billion yuan, narrowing the loss by 263 million yuan compared to the previous year [2]. - For Q2 2025, revenue reached 5.744 billion yuan, reflecting a quarter-on-quarter increase of 156.8% and a year-on-year increase of 52.2%, with a net profit loss of 1.355 billion yuan, also narrowing by 200 million yuan year-on-year [2]. Sales Growth - The company reported a significant increase in sales for Q2 2025, reaching 39,400 units, which is a 120.5% increase year-on-year and a 42.3% increase quarter-on-quarter [3]. - The sales of the Arcfox (极狐) brand reached 29,000 units in Q2, with the αS5 model achieving sales of 11,200 units, a remarkable increase of 792.8% year-on-year [3]. - The launch of the Enjoy (享界) S9 extended-range version alleviated range anxiety, leading to 4,154 units delivered in June, a 94.7% increase month-on-month, making it the top seller in the 300,000 yuan and above new energy sedan category [3]. New Product Launches - The company is set to enter a robust new car cycle, with the S9T pre-sale breaking 10,000 units within an hour, marking a historical record for the Enjoy brand [4]. - The new model, priced from 328,000 yuan, features advanced technology and is expected to drive further sales growth [4]. - The Arcfox T1, an A0-class electric vehicle, is scheduled for pre-sale on August 22, which is anticipated to contribute significantly to sales [4]. Strategic Initiatives - The company plans to expand its sales channels, aiming for a total of 400 Arcfox stores by 2025, achieving full coverage in cities of tier three and above, with over 85% coverage in tier one to five cities [4]. - The strategy focuses on leveraging sales volume to enhance economies of scale while improving profitability, with an emphasis on high-end models and exploring overseas markets [4].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][4][14] Core Views - The company has initiated a strong new car cycle with the launch of models such as the "Extreme Fox" 2025 αS5, αT5, and the "Enjoy World" S9 extended range version, which is expected to drive performance improvement [3][5] - The company reported a revenue of 9.517 billion yuan for H1 2025, a year-on-year increase of 154.4%, with a narrowing net loss of 2.308 billion yuan [4][5] - The company is focusing on enhancing its high-end vehicle offerings and expanding its overseas business while aiming to improve profitability through cost reduction and new revenue streams [6] Financial Summary - For H1 2025, the company achieved a revenue of 9.517 billion yuan, with a year-on-year growth of 154.4% [4] - The net loss for H1 2025 was 2.308 billion yuan, which is a reduction of 263 million yuan compared to the previous year [4] - The company expects revenues for 2025, 2026, and 2027 to be 31.55 billion yuan, 62.86 billion yuan, and 94.90 billion yuan respectively, with corresponding year-on-year growth rates of 117.4%, 99.2%, and 51.0% [4][8] - The projected net profit for 2025 is a loss of 4.685 billion yuan, improving to a profit of 2.251 billion yuan by 2027 [8][10] Sales Performance - In Q2 2025, the company sold 39,400 vehicles, representing a quarter-on-quarter increase of 120.5% and a year-on-year increase of 42.3% [5] - The sales of the "Extreme Fox" models reached 29,000 units in Q2 2025, with the αS5 model alone selling 11,200 units, marking a significant increase of 792.8% quarter-on-quarter [5] - The "Enjoy World" S9 extended range version has gained traction, with 4,154 units delivered in June, a quarter-on-quarter increase of 248.2% [5] Strategic Initiatives - The company plans to expand its dealership network to 400 stores by 2025, aiming for comprehensive coverage in cities of all tiers [6] - The strategic focus includes leveraging scale effects while enhancing profitability and developing high-end models under the "Enjoy World" brand [6]