Great Wall Motor's net profit fell sharply by 75.6% in the first half of the year, and the new energy transformation encountered great difficulties

In the first half of 2023, Great Wall Motor's financial performance was not ideal. Its recently released financial report showed that Great Wall Motor achieved operating income of 69.971 billion yuan in the first half of 2023, an increase of 12.61% over the same period last year; net profit was 1.363 billion yuan, but a sharp drop of 75.6% compared with the same period last year. This performance not only lags behind other leading domestic brands, but also reflects the difficulties and challenges Great Wall Motor encountered in the process of new energy transformation.

It can be seen from the financial report data that Great Wall Motor's sales expenses and R&D expenses in the first half of the year have increased significantly, up 46.80% and 10.45% year-on-year respectively, mainly to accelerate the research and development and promotion of new energy products.

Since the beginning of this year, Great Wall Motors has launched a number of plug-in hybrid (PHEV) models, including the Haval 2nd Generation Big Dog, the Xiaolong series, the Wei Brand Blue Mountain, etc., and plans to launch pure electric (BEV) models such as the Ora Lightning Cat and the Tank 500 Hi4-E in the second half of this year.

However, the response to these new energy models in the market is not too enthusiastic. Although Great Wall Motors' sales of new energy models in the first seven months reached 122,100 units, a year-on-year increase of 63.77%, and the penetration rate increased to 19.44%, its market share in the narrow new energy passenger car market was only 2.8%, ranking ninth, far lower than competitors such as BYD, Tesla, and GAC Aion. Moreover, among these new energy models, there is no "explosive" single product like Haval H6 that can drive the improvement of brand image and sales.

On the contrary, Great Wall Motors performed well in overseas markets. In the first half of this year, the company's overseas sales reached 123,300 units, up 80.22% year-on-year, setting a historical record; overseas sales revenue reached 20.667 billion yuan, up 122.20% year-on-year.

From a single quarter perspective, Great Wall Motors' performance in the second quarter has improved. Revenue, sales volume, gross profit margin and other data have all increased month-on-month, especially the net profit attributable to the parent company after deducting non-recurring items has turned from loss to profit. This also shows that Great Wall Motors has gradually found the direction and rhythm in its new energy transformation.

91che believes that as one of the leaders of China's independent brands, Great Wall Motors' layout and exploration in the new energy field deserve recognition and encouragement. However, the competition in the new energy market is becoming increasingly fierce. If Great Wall Motors wants to make a breakthrough in this field, it needs to accelerate the pace of product innovation and brand promotion, create more competitive and attractive new energy models, and meet the diverse needs of consumers. At the same time, Great Wall Motors cannot ignore its basic business in the domestic market, and must continue to consolidate and expand its advantages in the SUV and pickup fields to provide stronger support for the new energy transformation.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.