(Yicai Global) April 22 -- Shares of BAIC BluePark New Energy Technology fell despite the electric carmaker dismissing rumors of tension in its relationship with Huawei Technologies, emphasizing that the tech giant is a key strategic partner. The firm has been working on a new model called Arcfox Alpha S Huawei Hi, but deliveries are running late.

BAIC BluePark [SHA: 600733] closed down 2.4 percent at CNY6.52 (USD1) today, after ending 5.7 percent lower yesterday. The broader Shanghai market inched up 0.2 percent.

BAIC BluePark, a subsidiary of Beijing-based BAIC Group, today said it will invite the media, investors, supply chain partners, distributors and some customers to try out the new vehicle early next month, with executives from BAIC BluePark and Huawei also attending the event.

BAIC New Energy, a unit of BAIC BluePark, signed a cooperation agreement with Huawei in January 2019, planning to create a new brand by combining the two companies’ technologies.

BAIC BluePark announced on Sept. 26 last year that the pair had signed a deal to deepen their collaboration, with a plan to achieve online and offline channel cooperation by the end of 2021 to sell the Arcfox Alpha S Huawei Hi, which is equipped with Huawei’s smart car solutions and was jointly unveiled by the two parties in April 2021.

Media reports said deliveries would start in late 2021, but they have not yet begun. Affected by Covid-19 restrictions and fierce competition in the new energy vehicle market, BAIC BluePark has been in the red for two straight years, according to its annual earnings report.

Revenue jumped 65 percent to about CNY8.7 billion (USD1.3 billion) last year, with a net loss of CNY5.2 billion (USD810 million), narrower than the CNY6.5 billion reported in the previous year.

Huawei previously chose three traditional automakers -- BAIC Group, Changan Automobile and GAC Group -- as strategic partners to launch vehicles equipped with its self-driving solutions. The Arcfox Alpha S Huawei Hi is the first smart electric car it has launched with one of its partners.

Editor: Tom Litting