BAIC New Energy will be launched on September 27, and its sales ranking this year has slipped to third place.

BAIC New Energy will be officially listed on the Shanghai A-share market on September 27. BAIC New Energy chose Beijing Qianfeng Electronics Co., Ltd. for backdoor listing. At present, the company has completed all preparations before listing and has changed its name to S Blue Valley (600733). The "first Chinese new energy vehicle stock" is about to be launched.

As early as when BAIC Motors was listed on the Hong Kong Stock Exchange in 2014, the new energy vehicle business had been separated from BAIC Motors. Since then, Xu Heyi, secretary of the Party Committee and chairman of BAIC Group, has stated on different occasions that BAIC New Energy will be listed separately.

To IPO on the A-share market, the company must be profitable for three consecutive years, and BAIC New Energy made its first profit in 2016. Even with continuous profits, BAIC New Energy will have to wait until 2019 to go public through an IPO. As subsidy policies continue to decline, there is great uncertainty about BAIC New Energy's profitability. BAIC New Energy, anxious to go public, finally took the form of backdoor listing with S*ST Qianfeng to enter the secondary market.

Due to a series of regulatory policies, including new regulations on restructuring and refinancing, the success rate of domestic backdoor listing was only 50% in 2017. However, given the state-owned status of BAIC Group and BAIC New Energy, and the fact that BAIC Group has obtained a free transfer of state-owned assets in advance and has become the major shareholder of Qianfeng Shares, the road to BAIC New Energy's listing has been paved.

Xu Heyi has previously publicly stated on many occasions that BAIC Group will stop selling fuel vehicles in Beijing in 2020, and by 2025 BAIC will completely stop selling fuel vehicles in the national market, except for military-civilian integration and special-purpose vehicles.

BAIC New Energy's sales in 2017 reached 103,200 units, ranking first in China's pure electric vehicle sales for five consecutive years. Although BAIC Group has topped the list of pure electric vehicle sales in China for five consecutive years, there is still a big gap to its goal of breaking through the 100 billion mark in market value in 2020. If BAIC New Energy wants to obtain a large amount of financial support in the short term, backdoor listing can be said to be the best way to raise funds.

BAIC's sales have been somewhat sluggish this year. In August 2018, BAIC New Energy sold a total of 9,187 new cars, ranking third in the new energy vehicle sales list, which is the third consecutive month. In the first eight months, BAIC New Energy sold 70,118 new cars in China, a year-on-year increase of 67%, but only achieved 46.75% of the annual sales target of 150,000 vehicles, and the sales level was far from expectations.

Of the 70,000 units sold, 43,434 units of the lowest-end EC series were sold, accounting for 61.94%. The data for the first eight months of this year is not an isolated case. For many years, BAIC New Energy's dominance in the pure electric vehicle market has been driven by low-end models. However, the upward sales of low-end products can only cause BAIC New Energy's brand image to continue to decline. In the context of consumption upgrading, brand image will become an important obstacle to the further development of BAIC New Energy.

BAIC is also trying to change. In March this year, BAIC New Energy received a 3.93% stake from Daimler Group, which is conducive to its introduction of Daimler technology. In addition, the company has also launched a private battery swap version based on the previous generation EU series, indicating that the company is exploring a new profit model. By 2019, the pure electric supercar ARCFOX-7 of ARCFOX, a high-end brand under BAIC New Energy, will also be mass-produced and launched, which will bring important help to the improvement of the brand image.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.