(Yicai) Jan. 16 -- Shares of BAIC BluePark New Energy Technology fell after the Chinese electric carmaker said it expects to have racked in a net loss of up to CNY5.7 billion (USD797 million) last year.

BAIC BluePark [SHA: 600733] was trading down 4 percent at CNY5.32 (75 US cents) as of lunch break in Shanghai today.

Net loss was likely between CNY5.2 billion and CNY5.7 billion in the year ended Dec. 31, compared with a net loss of CNY5.5 billion the year before, Beijing-based BAIC BluePark announced yesterday. The firm has accumulated over CNY20 billion (USD2.8 billion) in losses since 2020.

BAIC BluePark attributed the net loss to the increased investment in research and development and brand establishment amid the fierce competition in the Chinese new energy vehicle market and the failure to achieve economy of scale because of its low sales volume. The sales volume and corresponding profitability are expected to improve in the future, the company added.

BAIC BluePark was founded in 2009 as Beijing Electric Vehicle but changed its name after a backdoor listing in 2018, becoming the first NEV maker to go public. It is China’s first carmaker to receive the qualification to produce NEVs.

BAIC BluePark sold 92,000 EVs last year, up 84 percent from the year before, which was far below the sales volumes of its competitors.

ArcFox, a marque under BAIC BluePark, signed a cooperation agreement with Huawei Technologies in 2017, becoming one of the first auto brands to join hands with the Chinese telecoms giant. In the future, BAIC BluePark is expected to jointly launch EV marques with Huawei like Seres Group and Chery Automobile did with the Aito and Luxeed brands.

Editor: Futura Costaglione