(Yicai) Aug. 28 -- BAIC Bluepark New Energy Technology has reported its worst first-half performance, with losses widening 29.9 percent from a year earlier, as the Chinese new energy vehicle manufacturer struggles amid the ongoing price war and a big drop in sales.

BAIC Bluepark racked up losses of CNY2.5 billion (USD360.5 million) in the six months ended June 30, according to the latest financial report released by the Beijing-based company this week. Revenue plunged 35.2 percent to CNY3.7 billion (USD518.7 million).

The ongoing price war in China’s auto sector is squeezing profits, BAIC Bluepark said. The company has constantly invested in research and development, the building of brand-related channels as well as improving its operating efficiency, which has had a short-term impact on the company’s business performance.

A big drop in sales is also hammering performance. BAIC Bluepark’s sales slumped 20.4 percent in the first six months from a year earlier to 28,000 units.

The firm has two main marques, namely ArcFox and Beijing. ArcFox’s sales more than doubled over the period to 18,000 units but still lag behind that of mainstream brands. ArcFox has had various tie-ups in recent years, including with Chinese telecoms equipment giant Huawei Technologies, but all have fallen below expectations.

BAIC Bluepark and Huawei’s first electric car, the Stelato S9, hit the market on Aug. 6. Pre-sales on which deposits were paid in the first 20 days topped 8,000 autos. But this still pales in comparison to sales of other marques co-developed with Shenzhen-based Huawei. In comparison, Seres and Huawei’s Aito M7 Ultra, for instance, had pre-sales of 30,000 units 20 days after the launch.

BAIC Bluepark has been loss making for many years. Over the past four years it has haemorrhaged CNY25.2 billion (USD3.5 billion). Last year it squandered CNY6.4 billion (USD908.9 million), in 2022 CNY5.2 billion, in 2021 CNY5.4 billion and in 2020 CNY5.4 billion.

BAIC Bluepark’s share price [SHA:600733] closed 5.45 percent down at CNY6.42 (USD0.90) today.

Editor: Kim Taylor