Great Wall Motor sees net profit drop in 2019, while surge in second-half

Shanghai (Gasgoo)- Great Wall Motor (GWM), China's biggest SUV and pickup manufacturer, announced its full-year gross revenue reached RMB96.455 billion in 2019, edging down 2.8% compared to the previous year.

The annual net profit attributable to shareholders slid 13.73% over a year ago to RMB4.493 billion. However, excluding the impact of certain no-recurring gains and losses, the net profit still grew 2.41% to RMB3.982 billion, meaning the company did a better job in operation.

GWM said the net profit downturn should be partly ascribed to the increased cost in branding buildup. To improve the brand profile and cement consumers' loyalty, GWM adopted a series of measures like offering users overlong warranty period. Besides, both the increase in R&D expenditure and the decline in non-operating interest are blamed for the profit drop.

Despite the downturn for the entire year, GWM earned RMB2.975 billion of net profit in the second-half of 2019, shooting 94.3% year on year. The inspiring number showed the strong resilience of the automaker, which was also saddled with the downward pressure from the overall auto market.

Last year, GWM saw its full-year sales in 2019 edge up 0.69% year on year to 1,060,298 units, surpassing 1 million units for the fourth year in a row.

Aside from the blooming performance in domestic market, the automaker also boasted a 38.68% year-on-year hike with roughly 65,000 vehicles sold in overseas market.

(Photo source: Great Wall Motor)

The automaker is acting faster to deploy its overseas business. Earlier this month, GWM and General Motors reached an agreement to transfer GM Thailand and GM Powertrain Thailand legal entities, which include the Rayong vehicle assembly and powertrain facilities, to the former.

In addition, GWM's Tula plant in Russia successfully kicked off production in 2019, and the company also reached an agreement with GM to acquire its Talegaon Plant in India in early 2020.