(Yicai Global) Sept. 26 -- Beijing Automotive Industry Corp.'sBeijing Electric Vehiclehasfinished preparationsforaback-door listing andhaschanged its name to BAIC BluePark New Energy Technology [SHA:600733]. It alsoannounced a resumption of trading tomorrowas China'sfirstpublicly-tradednew energy vehicleshares.
BAIC BJEV produced and sold 103,199NEVs last yearina98 percentrise on 2016to claim23 percent of the domesticNEVmarketshare,becomingthe firstpure-electricvehicle company tomake over 100,000 vehicles per year,itsannualoperatingresultsshow.

The companyhas beenthe championinsales for five straight years,with ayearlyturnoverof over 100,000 vehicles last year, butitssubsidies for theentire yearwereCNY5 billion (USD730 million),meaningit gotCNY50,000 (USD7,395)foreach vehicle,perstatistics bybusiness news portalChangjiang Times.
The firmsold 70,118 new vehicles in China from January tolast month,a67 percentrise onthe same period last year, butmoved a mere46.75 percent of its annual sales targetof150,000 vehiclesin adisappointing finish.

Xi'an, Shaanxi province-basedBYD Auto, BAIC BJEV's major rival, sold 20,887NEVslast monthand up to 115,515 vehicles from January tothen.NEV sales of another rival,Shanghai Automotive Industry,alsosurged,beatingBAIC BJEV's for three straight months.\
Reduced subsidiesfrustrateany attempts topredict whether BAIC BJEVwill returntonormal profitabilityincomingyears,however,an insider said.

Thegrantis zero forNEVs with a driving rangeofless than 150 kilometers, CNY20,000(USD2,958) less than last year,and CNY15,000 for those between 150 kilometers andup to but not including200 kilometers--CNY21,000 less than last year--pernew government subsidy policiesthat kicked inthis year.

Rampant NEV subsidy fraud in recent years has prompted the Chinese government to curtail its grants to the sector, which now finds itself in an increasingly sink-or-swim situation.

Editor:BenArmour