Great Wall Motor posts YoY rise in H1 2023 revenue, but net profit slumps

Shanghai (Gasgoo)- Great Wall Motor Company Limited (“GWM”) unveiled its mid-year financial report for 2023. The company recorded revenues of 69.971 billion yuan in the first half of the year (H1), signifying a remarkable 12.6% year-on-year growth. This achievement marks the third consecutive year of growth for the automaker. However, in a contrasting trend, its H1 net profit attributable to shareholders plunged by 75.69% from the previous year, standing at 1.361 billion yuan.

The company attributes the drop in net profit to a complex interplay of factors, including the its deepening transition towards new energy and intelligent vehicle technologies, strategic adjustments in product offerings, increased investments in branding and channel expansion, sustained R&D of new energy and intelligent vehicle technologies, and a decrease in gains from currency exchange rates.

Haval Xiaolong MAX; photo credit: Haval

In the first half of 2023, GWM achieved sales figures of 518,796 vehicles. Remarkably, sales of new energy vehicles reached 89,555 units, surging 49.34% year on year. Meanwhile, its overseas sales peaked at 123,294 units, experiencing a remarkable year-on-year growth of 80.22%.

Under its umbrella, GWM presents five major brands: Haval, WEY, ORA, Great Wall Pickup, and TANK. Its diverse product portfolio encompasses three primary categories—SUVs, sedans, and pickups—comprising both conventional oil-fueled, plug-in hybrid electric and pure electric vehicle models.

The company has featured extensive global production footprint. With several complete vehicle and knock-down kit factories worldwide, its domestic production bases are established and operational in Baoding city, Tianjin city, Chongqing city, Jiangsu province, Zhejiang province, Shandong province, and Hubei province. Further expansions in Zhangjiagang and Shangrao cities are making steady progress. Overseas, the Thailand Rayong factory has commenced production of the ORA Good Cat, the Haval H6 HEV, and the Haval JOLION HEV, while the Brazilian project is steadily advancing.

GWM also reported R&D expenditures of 3.509 billion yuan for the Jan.-Jul. period of 2023, reflecting a robust 10.48% increase from a year ago.

In the realm of new energy vehicles, GWM rolled out a series of cutting-edge advancements in H1 2023. Notable innovations include the Hi4 intelligent four-wheel drive hybrid technology and the Hi4-T off-road super hybrid architecture. The new Hi4 technology, featuring on the Haval Xiaolong MAX offers a "4WD experience at a 2WD price" while maintaining outstanding performance and efficiency, said the company. The Hi4-T, debuting on the TANK 500, embodies a longitudinal hybrid architecture built on the TANK platform, delivering sustainable high-power output and precise energy management.

In the field of intelligence, GWM's in-housed developed Coffee OS 2 smart cockpit system—riding on the V3.5 platform—is now integrated into models like the WEY Blue Mountain DHT-PHEV and the second-generation Haval Big Dog.