Beiqi New Energy successfully backdoor officially listed today, should be the best gift to celebrate the 60th birthday of Beiqi Group. The successful entry into the capital market means that BAIC New Energy will raise a huge amount of funds needed for its development, and can be qualified to invest more funds to promote research and development. At the same time, it also represents that it will face more severe challenges in the future.

On the evening of September 25, S Blue Valley announced that the reform plan of the company's non-tradable shares had been implemented, and the company's shares resumed trading on September 27, with no limit on the rise or fall of the day. At the same time, the company's securities referred to as "S Blue Valley" changed to "BAIC Blue Valley", the news shows that BAIC new energy has completed the complete integration of S Blue Valley, successful backdoor.

The industry is also optimistic about the listing of BaiC new energy. Analysts have previously said that the potential of new energy Beiqi is relatively large, the capital is optimistic. There will be strong support from the state in promoting such a pioneering state-owned company, which is expected to surpass BYD in market value after a successful listing.

Data show that in 2014 when Beijing Auto shares listed on the Hong Kong Stock Exchange, the new energy vehicle business was spun off from Beijing Auto shares. Later, Xu Heyi, chairman of BAIC Group, said on many public occasions that BAIC New Energy Future would be listed separately. In 2016, BAIC New Energy completed A round of financing of 3 billion yuan; In 2017, BAIC New Energy completed a Series B financing of 11.118 billion yuan, which is to prepare for the listing of BAIC New Energy this year.

In fact, the listing, for Beijing Auto Group and its chairman Xu Heyi, both relieved, and must be more cautious in the face of the future layout. The relief is that the promise is finally being fulfilled. The caution is that the listing marks the beginning of the challenge, as subsidies fall and competition intensifies.

The product is the ultimate presentation of a company's strength, therefore, Beijing Auto new energy to force on the product.

In the BAIC new energy EU5 listing press conference, BAIC new energy deputy secretary of the Party Committee, spokesman Lian Qingfeng said, "Over the years, BAIC new energy to electric as a breakthrough, to scientific and technological innovation as the core, constantly improve user experience, comprehensively enhance customer value. At present, it has gathered more than 1,600 R&D personnel, mastered more than 2,000 patented technologies, created a new forward development platform, and released "Hummingbird Program" and "Darwin System", carrying the banner of scientific and technological progress of new energy vehicles.

As is known to all, although BAIC New Energy mainly has EC, EU, ES, EV, EX, EH and other product series, its sales data mainly rely on low-end models represented by EC series. Therefore, the urgent task of getting financing is to promote research and development as soon as possible and improve the strength of products.

Of course, BAIC New Energy is also aware of this, in June this year, the company and Magna announced plans to set up a joint venture to build an open and shared high-end intelligent pure electric vehicle research and development and manufacturing center. The first batch production model is planned to be put into production in 2020, with an annual output of 180,000 units. It is planned to first put into production related models of ARCFOX, the high-end brand of BAIC new energy.

It is worth noting that this year is the 60th anniversary of the establishment of BAIC Group. At this moment, the listing of BAIC New Energy is not only to celebrate the birthday of BAIC Group, but also to promote its strategic transformation of the next 60th anniversary.

For the new energy strategy of BAIC Group, Xu Heyi has long made bold words, "In 2020, BAIC will stop selling fuel cars in the Beijing area, and in 2025, BAIC will stop selling fuel cars in the national market." And BAIC new energy is a strong support for this goal.

Data show that in 2017, the new energy sales volume of Beijing Auto was 103,199 units, with a year-on-year growth of 98%, accounting for 23% of the domestic market share of new energy vehicles in 2017. Beijing Auto new Energy has also become the first pure electric vehicle enterprise with annual production and sales of more than 100,000 units.

In the future strategy of BAIC Group, BAIC new energy will be an important link.

However, going public does not mean smooth sailing. On the contrary, there will be more challenges. In terms of product competitiveness and profitability, BAIC new energy will face a lot of pressure.

The first is product competitiveness. Although BAIC new energy has always been in the forefront, with the layout of SAIC, GaC, BYD and other enterprises in the field of new energy, whether the advantage can be maintained depends on the subsequent development.

The second is the decline of subsidies for new energy vehicles. The new subsidy policy in 2018 shows that low endurance products will stop subsidies, which is not good news for BaiC new energy, which relies on low-end products. According to statistics, in 2017, although the new energy sales of BAIC exceeded 100,000 units, the annual subsidy was as high as 4.959 billion yuan, that is, 49,000 yuan for every car sold.

According to the information obtained by Travel Finance, the largest customer of BAIC New Energy in 2017 is Huaxia Chuxing, which belongs to BAIC Group. In the early stage of the company's development, Huaxia Chuxing obtained faster development by virtue of the opportunity of internal procurement of BAIC Group, which is reasonable in itself. However, as we all know, currently Chuxing is also an important strategic sector of BAIC Group. But also to face serious profit assessment, cost reduction and efficiency will win; Similarly, to truly achieve positive profit, BAIC new energy must obtain greater sales and occupy a larger external market.