Company News

[August 15, 2023, Beijing] BBACcelebratedits 18th anniversaryrecently.Through18 years of accumulation and precipitation,BBAC has achieved steadily growing results in production, operation and the expansion of its product portfolio, further defining itsstrategic transformation path of "electric, digitaland low-carbon", while at the same timeenhancing its efforts to build a thriving company cultureand accelerate the high-quality mutual reinforcement of the company’ssoft and hard power.

Enhancing a pioneering product upgrade with electrification transformation

As BBAC accelerates along the path to"Electric Only", the companyis constantly consolidating itsthree foundations of platform, talent and products, in order to ensurestrong support for the new electricfuture.

At the BBAC Shunyi Plant, where mainly all-electric modelsare rolling offline, the production base adopts an advanced digital ecosystem to enablethe seamless connection of intelligent production, intelligent logistics, high quality and other production processes, tocreate luxury electric vehicles with leading quality and high customer satisfaction. By the middle of the decade, BBAC will be deploying of the new Mercedes Modular Architecture (MMA) and MB.EA platform, laying the foundation for the production of new all-electric vehicles.

Looking further ahead to the electric future,BBAC has set up a new energy talent incubation center and a new energy innovation center. Together, the two centers arecommitted to providing a professional training system covering the R&D, quality and production of all-electric vehicles, accelerating the transformation of traditional high-skilled talent into electrified and intelligent talent, ensuring a continued supply ofhigh-quality talented professionals necessary for the companytogo allelectric.

Backed by its strongplatform and talent pool, BBAC officially began production of theall-new EQE SUVin the first quarter of this year, increasingthe number of all-electric vehicles produced by the company to 5, and expandingitsproduct portfolioto 12models in total. BBAC will spare no effort to expand and upgrade its product lineup and continue to develop towards electrification. By 2025, the EntryLuxury models and Core Luxury models based on the newarchitecture platformsMMA and MB.EA will be put into production in BBAC,providing a wider range ofsustainable luxury mobilityoptions for Chinesecustomers.

Driving smarter productionupgradeswith digital transformation

In recent years, BBAC has actively promoted digital transformation and worked to fully utilize the advantages ofhigh-quality manufacturing. Based on the use of machines and technologiesthatcan learn by themselves and generate solutions, BBAC is accelerating itsdigital transformation driven by data, widening the use ofartificial intelligence to improve the ability of the company’s systemsto make correct decisions and enhance the degree of man-machine coupling.

BBAC’s recent technological upgrades include the launch of anintelligent data management platform that integrates digital technology and capabilities to support digitaland data-driven productionand management across a wide range of application scenarios. By introducing the MO360 system, and comprehensively applying digital technologies such as Internet of Things, big data, industrial Internet and MES system, BBAC has realized intelligent management and control throughout R&D, manufacturing, quality, logistics, technical maintenance, procurement, finance, sales and service. In doing so, the company has established a system that canensurehigh and consistentproduction quality and improved production and operation efficiency to the maximum extent. At the same time, BBAC is committed to digging deep into thevalueof dataand driving theefficient and high quality capitalization, collecting, storing, analyzing and managingofdata.By building a scenario-driven data model, BBAC aims to fully unleash the potential ofdatato enhanceproductivity for intelligent manufacturing.

In the process of accelerating itsdigital transformation strategy, BBAC has ushered in a number of innovative breakthroughs in digital technology so far this year. Amongthem, BBAC's self-developed "Windy Intelligent Monitoring System Based on Machine Vision Technology" won the Mercedes-Benz Innovation Pioneer Award in 2022. The windy intelligent monitoring system is equipped with a high-resolution industrial camera and integrates artificial intelligence driven by data, algorithm and computing power, making it able tocomplete the fullprocess from perceptionto decision-making andexecution,instantlytransmitting production information to production personnel, further providing a digital assurance ofhigh-quality and efficient production.

While continuing to pursue in-depth research and development of artificial intelligence technology and intelligent manufacturing equipment, BBAC is also actively exploring the close integration of AI big models and robots to promote new advancesin intelligent production.

Promotingmore harmonious green development by low-carbon transformation

Adhering to BAIC's "BLUE Plan" and Mercedes-Benz's "Ambition 2039" strategy, BBAC is accelerating itslow-carbon development based onthe "internal and external dual drive" model.

BBAC has taken numerousmeasures such as energy saving, emission reduction, self-production ofgreen energy and purchasingof green electricity. The company has also implementedgreen processes such as dry painting, in which no intermediate coatingis used, as well as adigital energy management system, which has resulted in a major reduction inenergy consumption and carbon emissions of BBAC's plants. Thanks to its efforts indevelopingclean energy systems such as photovoltaic power generation, ground source heat pumps and wind turbines, BBAC Shunyi Plant has achieved 100% green electricity supply since this April. It is estimated that by 2025photovoltaic power generation can meet about 20% of the production energy demand of BBAC, set to reach a capacity of 90 MWp of photovoltaic power. As one of the first enterprises in Beijing to purchase green electricity, BBAC has applied for green electricitypurchasesfor threeconsecutive years, withan agreement topurchase nearly 200,000MWpgreen electricity this year. Meanwhile, BBAC is strengthening its partnerships with local steel suppliers to ensure the shared and ambitions green goals to be achieved.

Deepening culturalvalues to ensure stronger competitive advantage

While continuously strengthening its hard power, BBAC has also sought to enhance its soft power this year, promotingthe spirit of innovation, as reflected in theupgradeofits core values to "Customer focused, Responsibility, Integrity and Innovation", aiming to achievegreaterresonance betweenits soft and hard power.

Throughout its development, BBAC has focused on innovation in terms oftalent, technologies, workshopsand many otheraspects, placinginnovation as the first driving force to lead the development of the company. During its18 years' development, BBAC has produced numerousskilled craftsmenand chief technicianswho have won acclaim and awards at the city and national level, established 7employee innovation studios, and producedmore than 2,000recognizedtechnological innovation achievements, forming a core competitive advantage with leading technical strength and rapid innovation ability.

Today, facing a newscientific and technological revolution and industrial transformation, and confrontingthe many changes in China’s automotiveindustry and market, BBAC has reaffirmed the crucial role offorward-looking thinking in its development, as reflected in its incorporation of"innovation" into its core values. It shows the company’sfirm determination to further consolidate its competitiveness and drive sustainable and high-quality development through innovation and transformation.

Over 18 years of high-quality development,BBAC is as determined as ever to achieve new victories and set new records.Guidedby the strategies of both BAIC Group and Mercedes-Benz Group, BBAC is committed to acceleratingthe strategic transformation of "electric, digitaland low-carbon", as it continuesto provide Chinese customers with mostdesirable cars. Based on a deeper understanding and appreciation of the company’s cultural values, BBAC will bring new kinetic energy to thisnew stage of high-quality development, striving to make greater contributions to the continuous transformation and upgrading of Beijing’sautomotiveindustry and the sustainable and healthy development of the city’seconomy and society.