(Yicai) Feb. 21 -- Shares of BAIC BluePark New Energy Technology moved up after the Chinese electric vehicle firm said that Xiangjie, its first Huawei smart selection model, will be launched this year.

BAIC BluePark [SHA: 600733] closed 4.7 percent higher at CNY4.65 (US 65 cents).

Xiangjie is a high-end smart sedan designed to meet consumers' demand for high-quality mobility experiences, the new energy vehicle arm of state-owned BAIC Group announced on an investor communications platform yesterday. This will be BAIC BluePark's first model developed under the Huawei smart selection business model which means that the Shenzhen-based telecoms giant will be deeply involved in design and sales.

Moreover, the pair plans to build a new factory to produce the vehicle, per BAIC BluePark. The company's partnership with Huawei is going smoothly, the Beijing-based firm said, adding that it will disclose more details to the public when the time is right.

The new model should increase BAIC BluePark's profitability, according to analysts. For last year, BAIC BluePark predicts to record a deficit of CNY5.2 billion to CNY5.7 billion (USD723.3 million to USD792.9 million). The trend has been the same for years since the firm lost over CNY5 billion every year from 2020 to 2022.

Huawei and BAIC BluePark have already released the ArcFox αS Huawei Inside vehicle based on the software-only collaboration model after agreeing to team up in September 2017.

Before this, Huawei cooperated with Seres, Chery Automobile, and Anhui Jianghuai Automobile Group based on the smart selection mode and revealed two brands Aito and Luxeed.

Editor: Emmi Laine