High growth rate, low sales volume, why is Great Wall Motor’s third quarterly report so strange?

A few days ago, Great Wall Motor released its third-quarter financial report. Judging from the financial report data, Great Wall Motor’s current results can be described as mixed. In the third quarter, Great Wall Motors recorded a total revenue of 37.346 billion yuan, a year-on-year growth rate of nearly 30%. This growth rate has hit the highest value in recent quarters. In the same period, the net profit attributable to the parent was 2.56 billion yuan, and the year-on-year growth rate was as high as 80.74%.

The revenue growth rate is very high, but the sales data is not so friendly. In the first nine months, Great Wall Motors sold a total of 802,300 vehicles, a year-on-year decrease of 9.25%. The sales growth rate did not even match the industry growth rate.

As one of the “top three” self-made cars, after more than 30 years of development, Great Wall has successfully entered the top ranks of Chinese auto companies. Its subsidiary Haval has set a sales record in the domestic SUV market for many consecutive months, becoming a veritable Chinese auto product explosion. manufacturing machine. But under the low sales volume shown in the financial report, how did the profit increase greatly?

In terms of making money, Great Wall Motor’s strategy can be said to be well executed. In 2021, Great Wall Motor has set the direction of profit priority in 2022. Great Wall Motor can achieve such high profits without the hot sales of its tank brand. The revenue figures for 2022 have clearly demonstrated the profitability of Great Wall Motors.

But in the market, these figures are controversial. Although the tank brand is selling well, Haval brand sales continue to decline. As the sales champion of Great Wall, Haval’s sales are not stable and it is easy to panic. In addition, the data of Great Wall Motor’s new energy products are not available on the table, it seems that Great Wall has lost its future. In the market, some people think that the profit data in the financial report seems to be a red light for the future of Great Wall Motors, and Great Wall is just making money.

However, the performance of Great Wall New Energy cannot be confused with the fact that Great Wall is a profitable auto company. Although new energy is at the forefront of the industry, any enterprise is bound to encounter some problems in the process of transformation. As a commercial enterprise, it may not be wrong to pay more attention to profit in a certain environment.

Looking at the future, smart new energy vehicles may become people’s first choice, which means that companies need to make breakthroughs in energy technology, batteries, AI computing, ecological services and other aspects. Great Wall Motors has accumulated rich core technologies in the fields of hybrid, pure electric, hydrogen energy, and intelligence. In the field of new energy vehicles, Great Wall Motors has 1,301 published patents and 914 authorized patents, ranking first among Chinese automakers. The new round of product competition still has a development window of several years. It is indeed a good road in a sense to take an active part in the ecological layout of smart new energy vehicles for the time being.

The transformation of Great Wall Motors may have entered a critical period, but whether it can truly grasp the core industrial chain technological advantages in the automobile ecology, and make breakthroughs in the new energy market and international market as scheduled. This requires Great Wall Motors to carefully consider how to make a unified plan, improve the key strengths of each technical link of its ecology, and deploy the ecological layout of new products.