(Yicai) April 29 -- Shares of BAIC BluePark New Energy Technology fell despite the Chinese electric carmaker narrowing its first-quarter loss and after it also revealed a plan to raise CNY6 billion (USD825 million) for its vehicle business and an artificial intelligence platform.

BAIC BluePark [SHA: 600733] ended 3.4 percent lower at CNY7.20 (99 US cents) a share in Shanghai today. The stock is down 10 percent since the end of last year.

The net loss at BAIC BluePark, part of BAIC Group, one of China's major state-owned carmakers, shrank 6.2 percent to CNY953 million (USD131 million) in the three months ended March 31, from CNY1.02 billion a year earlier, its earnings report showed late yesterday.

Operating revenue soared 151 percent to CNY3.77 billion (USD518 million) after a 174 percent surge in vehicle sales to 27,700.

The Beijing-based firm also said it plans to raise CNY6 billion (USD825 million) from a private placement of shares, a large chunk of which will come from its parent company and its commercial vehicle business arm, Foton Motor. The other investors have not yet been determined.

A separate announcement from Foton yesterday revealed that BAIC will subscribe to as much as CNY500 million of newly issued shares in BAIC BluePark, while Foton will invest up to CNY2.5 billion.

CNY5 billion of the funds raised will go to develop new energy vehicle models including the carmaker’s ArcFox brand, with Huawei Technologies’ self-driving software built in, as well as its Xiangjie brand, in which the automaker uses the Chinese tech giant’s full-set solutions.

BAIC BluePark was one of the first traditional automakers to link arms with Huawei on vehicles.

The other CNY1 billion will go toward developing an AI technology application platform and an intelligent driving electrification system, it said.

BAIC BluePark also released its 2024 annual earnings yesterday. Its net loss swelled 29 percent to CNY6.95 billion, from CNY5.4 billion the year before, on a 1.3 percent increase in revenue to CNY14.51 billion. The firm sold 113,860 vehicles in the year, up 23.5 percent.

Editor: Tom Litting