Great Wall Motor boasts 2-digit YoY jump in Q3 revenue, net profit

Shanghai (Gasgoo)- On October 27, Great Wall Motor ("GWM") unveiled its third-quarter (Q3) 2023 financial results.

The report reveals impressive financial growth for Q3 2023, with GWM achieving a remarkable operating revenue of 49.532 billion yuan, marking a 32.63% year-on-year increase. Additionally, its net profit attributable to shareholders reached 3.635 billion yuan, witnessing a year-on-year surge of 41.94%. Excluding the impact of certain non-recurring gains and losses, GWM’s Q3 net profit attributable to the parent company stood at 3.058 billion yuan, marking a 34.04% jump compared to the same period last year.

Throughout the first three quarters (Q1-Q3) of this year, GWM's cumulative net profit attributable to shareholders amounted to 4.995 billion yuan, with individual profits for each quarter as follows: 176 million yuan for Q1, 1.187 billion yuan for Q2, and 3.635 billion yuan for Q3. Notably, the Q2 and Q3 net profits represented a quarter-on-quarter spike of 581.3% and 206.1%, respectively.

HAVAL Menglong PHEV; photo credit: HAVAL

In September 2023, GWM sold a total of 121,632 new vehicles, marking a year-on-year jump of 29.89%. When considering the cumulative figures for the first nine months of 2023, the company achieved sales of 864,045 vehicles, which climbed 7.69% over the previous year.

It is noteworthy that GWM's new energy vehicle (NEV) sales totaled 170,346 units for the first three quarters, surging 75.77% from a year ago. The automaker said NEVs accounted for 12.64%, 21.86%, and 22.37% of its total car sales in the first, second, and third quarter of this year, respectively, showing a continuous rising momentum in proportion.

With continuous expansion of its NEV product portfolio, GMW has introduced over 10 NEV models, including the HAVAL Menglong, the second-generation HAVAL Big Dog PHEV, the WEY Gaoshan and Blue Mountain, the TANK 400 Hi4-T, and the TANK 500 Hi4-T.

To support this product diversification, GWM has invested significantly in R&D. According to its financial report, the company spent 5.502 billion yuan on R&D in the Q1-Q3 period of this year, representing a 16.88% year-on-year increase. In Q3 alone, R&D expenses reached 1.992 billion yuan, showing a 30.18% year-on-year leap.

GWM's export volume soared 89.45% year on year to 211,696 units in the Jan.-Sept. period, 98.49% of which were contributed by the models priced at and above 150,000 yuan. In Q3, GWM exported 87,766 vehicles in overseas markets, indicating a 21.97% jump over the previous quarter.

GWM's overseas sales as a proportion of total sales have also been rising in each of the first three quarters of this year, reaching 23.63%, 24.04%, and 25.45%, respectively.

Alongside the introduction of new models and the continuous expansion of overseas markets, GWM's sales structure is continually improving. In the first three quarters of this year, the vehicles priced above 150,000 yuan accounted for an increasing share of sales, with percentages of 15.28%, 21.32%, and 23.53% in Q1, Q2, and Q3, respectively.

The average selling price per vehicle has also been on the rise, increasing from 132,000 yuan in Q1 to 136,800 yuan in Q2, and further reaching 143,600 yuan in Q3.

Furthermore, the company's comprehensive gross profit margin, which was 16.07% in Q1, rose to 17.41% in Q2, and surged to 21.66% in Q3.