Great Wall Motor net profit up 0.56% in H1

Hong Kong-listed Great Wall Motor Co, China's largest manufacturer of sports utility vehicles and pick-up trucks, posted net profit increased 0.56% year-on-year to RMB 408 million (US$59.5 million), a lower-than-expected result amid the rising prices of raw materials and sales expense hike.

According to the company's interim report, Great Wall Motor realized revenue of about RMB 4.61 billion, representing a remarkable increment of 37.8% over the corresponding period of last year, of which domestic and overseas market contributed RMB 2.53 billion and RMB 2.12 billion, accounting for 54.4% and 45.6% of its total revenue, respectively.

Great Wall Motor said the revenue growth was boosted by an increase in vehicle sales volume, which amounted to 65,675 units, up 18,010 units from a year ago.

Great Wall Motor noted its gross profit margin dropped to 20.5% from 23.9% of the same period last year due to the soaring raw material cost. The cost of sales and administrative expenses jumped 44% and 54.6% year-on-year.

Insiders with the vehicle producer disclosed, in the future, the company will focus on research and develop low-emission cars with 1.0L-2.0L engine, hybrid cars with 2.0L-2.8L engine as well as eco-friendly models.