Beiqi Foton faces losses, suspends dividend amid strategic shift

Beiqi Foton Motor (SSE:600166) announced the suspension of dividend payouts for 2024, as unrecovered losses reached approximately CNY 4.97 billion, exceeding one-third of the company’s CNY 7.92 billion paid-in capital. This decision, made during the company’s ninth board meeting, is subject to shareholder approval at the upcoming annual general meeting. The primary cause for the losses is attributed to the impairment of Beijing Borgward Automobile. In response, Beiqi Foton will focus on expanding its international presence and accelerating its transition to new energy commercial vehicles. The company plans to balance scale with risk in its international ventures and is implementing a "3+N" marketing model for new energy vehicles that integrates online and offline resources. To bolster its competitive position and technological prowess, Beiqi Foton aims to reach 700,000 in sales this year.