The electric vehicle sector is facing significant headwinds, as highlighted by a recent earnings warning from Seres Group (601127.SH). The company disclosed an expected first-half 2026 net loss ranging from 1.5 to 1.8 billion yuan, attributing the shortfall primarily to rising costs for key raw materials like storage chips, industrial metals, and lithium carbonate.

Despite a 5.6% year-to-date sales increase for its main brand as of June 2026, the substantial losses from its AITO brand, which amounted to 1.9 to 2.15 billion yuan in the previous year, are a major drag. This situation underscores that without the AITO segment, Seres could potentially report a modest profit.

Management had previously acknowledged the pressures from intensified industry competition and volatile raw material costs. Consequently, Seres's sharp decline in share price appears to reflect broader challenges within the new energy vehicle (NEV) industry, which also impacted the overall sector index.

Among the affected stocks, Baic Bluepark New Energy Technology Co.,Ltd. (600733.SH) experienced a significant drop of 6.63%, hitting a recent low during the trading session.

The discussion around Baic Bluepark naturally brings its affiliate, BAIC MOTOR (01958.HK), into focus. The two companies are deeply interconnected, with BAIC MOTOR directly holding a 9.62% stake in Baic Bluepark as the second-largest shareholder. Combined with indirect holdings, its total interest is approximately 15.8%. The parent company, BAIC Group, remains the largest single shareholder with a 21.3% direct stake.

Historically, in March 2024, BAIC Group entrusted the voting rights for its 22.9% stake in Baic Bluepark to BAIC MOTOR, temporarily granting the latter a 38.7% controlling stake. However, their business models differ significantly.

BAIC MOTOR's profitability is anchored in traditional internal combustion engine vehicles through its joint ventures like Beijing Benz and Beijing Hyundai, as well as its own "Beijing" brand off-road vehicles. In stark contrast, Baic Bluepark New Energy Technology Co.,Ltd. operates exclusively in the pure-electric vehicle segment with brands such as Arcfox and Xiangjie.

The traditional car market is under severe pressure, a reality reflected in BAIC MOTOR's stock performance. Its shares have plummeted approximately 60% year-to-date, falling to penny stock status in late June and reaching an all-time low.

The situation at Baic Bluepark New Energy Technology Co.,Ltd. is not much better, with its shares down over 40% this year, though they remain above the lows seen in early 2024. This divergence prompts a critical question: with its Hong Kong-listed affiliate now a penny stock, can the A-share listed Baic Bluepark withstand the ongoing pressure?

Objectively, Baic Bluepark faces its own challenges. It initially built its business on the B2B market for ride-hailing services and is still scaling up its consumer-facing C-end operations. Despite the performance pressures, its operational data for 2026 has been strong. The company's June production and sales report showed a 47.27% surge in first-half sales year-over-year, with June alone posting a remarkable 152.54% increase.

Nevertheless, in the fiercely competitive and currently unprofitable NEV landscape, Baic Bluepark may not escape the industry-wide paradox of "selling more, losing more"—a dilemma similar to Seres's experience with its AITO brand. The strategic path forward involves a fundamental choice between pursuing market share and volume versus focusing on profitability and cash flow. The appeal of Baic Bluepark's prospects, therefore, depends largely on an investor's individual risk appetite and investment philosophy.