Great Wall Motor forecasts two-digit YoY decline in H1 2023 net profit

Shanghai (Gasgoo)- On July 14th, Great Wall Motor Company Limited (“GWM”) released its performance forecast for the first half of 2023 (“the reporting period”).

According to preliminary calculations by the finance department, GWM is expected to achieve a net profit attributable to shareholders of the listed company ranging from 1.15 billion yuan to 1.55 billion yuan for the Jan.-Jun. period of this year, representing a year-on-year decrease of 72.32% to 79.47%.

The fluctuation in performance during the reporting period is mainly attributed to the company's deepening transformation towards electrification and intelligentization, product structure adjustments, increased investment in brand and channel construction based on the launch of new products in 2023, growing R&D investment in the field of new energy vehicle (NEV) and auto intelligence, and a decrease in foreign exchange gains.

The net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses is expected to range from 600 million yuan to 850 million yuan, reflecting a year-on-year decline of 58.71% to 70.86%.

In the first half of the year, GWM deepened its strategic layout in intelligent new energy vehicles, achieving a cumulative sales volume of 519,226 vehicles. Among them, 93,225 units were NEVs, indicating a year-on-year leap of 46.6%.

Haval Xiaolong MAX PHEV; photo credit: GWM

The Haval Xiaolong MAX, equipped with the new intelligent four-wheel drive hybrid technology Hi4, reached its 10,000th vehicle production milestone within 45 days of its launcht.

The WEY Blue Mountain DHT-PHEV and New Mocca DHT-PHEV models have empowered the brand to advance towards the high-end intelligent NEV segment. The Blue Mountain DHT-PHEV has maintained strong performance, with cumulative sales reaching 11,692 units since it hit the market on April 13th.

The 2023 TANK 500 and TANK 500 Hi4-T models went on sales during the reporting period. Notably, the TANK 500 Hi4-T model relies on the off-road super hybrid architecture Hi4-T to create the ultimate benchmark in new energy off-road technology.

Since its establishment, the ORA brand has accumulated sales of over 380,000 vehicles. The 2023 ORA Good Cat, the 2023 ORA Good Cat GT Mulan Edition, and the 2023 ORA Ballet Cat models were put onto the market to continuously cater to user demands.

Moreover, GWM has further accelerated the overseas expansion of new energy vehicles and "ecosystem expansion". Its cumulative overseas sales for the first six months reached 123,930 vehicles, a year-on-year increase of 97.27%.

In the reporting period, several models including the Haval H6 HEV, the ORA Good Cat, the TANK 300, and the TANK 500 were launched in overseas markets such as Jordan, Saudi Arabia, Oman, the United Arab Emirates, the Philippines, Chile, Australia, and Madagascar.

The ecosystem expansion has accelerated with the operation of the first parts center in the Middle East, located in the United Arab Emirates. Besides, the Vice President of Brazil visited GWM’s Brazilian factory and witnessed the launch of the country's first hybrid flexible fuel pickup project.

The company’s overseas dealer system continues to improve, establishing strategic partnerships with Inchcape in the UK, TAG in Vietnam, Cycle & Carriage Group in Singapore, etc.