GWM’s net profit slumps around 80% year on year

Shanghai (Gasgoo)-GWM delivered 102,000 and 706,000 vehicles in September and in the previous nine months respectively. Among them, WEY, the newly-released light-luxury vehicle brand, achieved its monthly sale of more than 10,000 units firstly. GMW's Q3 report showed that the total revenue in previous nine months was flat year on year to RMB 63.43 billion. During July and September, the total revenue posted a slight increase of 1.8% to RMB 22.17 billion. In view of the revenue decline of 1.0% during April and June, the launch of WEY brand remedied GMW's poor revenue growth gradually.

Though the total revenue increased slightly, significant costs growth like operation, sales expenditures and taxes reduced the total net profits to RMB 460 million with a drastic drop of RMB 228 million. During January and September, the net profit reached RMB 289 million from RMB 721 million a year ago, decreasing drastically compared with the same period last year.

Data showed that the total sales of the Wingle rose by 11.6% to 84,000 units, while the Haval delivered 584,000 units with a slight fall of 1%. The newly-released WEY had sold 28,000 units, and boasted September sales of more than 10,000 units thanks to the VV5 and the VV7. During the previous nine months, GWM's sales grew 2.25% to 706,000 units year on year.

GWM is likely to have a sales improvement in last Quarter. Research showed that GWM will enjoy great costs cut thanks to Haval's success of de-stocking. Additionally, with WEY sold well, GMW can lift the profit of single vehicle with a higher price for a new model.

September sales of the VV5 and VV7 reached 4,600 and 7,400 units respectively, and the WEY brand delivered more than 10,000 units monthly, taking up 12% of GWM's total sales. Up to now, the total sales of the WEY reached 28,000 units this year.