Xi Niu Cai Jing·2025-05-08 08:04Core Insights - Great Wall Motors reported a decline in revenue and net profit for Q1 2025, with revenue at 40.02 billion yuan, down 6.63% year-on-year, and net profit at 1.75 billion yuan, down 45.60% [1][3] - The company attributed the profit drop to two main factors: a product upgrade cycle affecting main model sales and increased costs from direct sales system investments [1][4] Financial Performance - Total revenue for the quarter was 40.02 billion yuan, compared to 42.86 billion yuan in the same period last year [3] - Net profit attributable to shareholders was 1.75 billion yuan, down from 3.23 billion yuan year-on-year [3] - The net profit after deducting non-recurring items was 1.47 billion yuan, a decrease of 27.12% year-on-year [1][3] - Gross margin was 17.84%, down 1.53 percentage points year-on-year but up 1.30 percentage points quarter-on-quarter [1] - Net margin was 4.38%, down 3.13 percentage points year-on-year but up 0.60 percentage points from the previous quarter [1] Sales Performance - Total vehicle sales for Q1 2025 were 256,807 units, a decline of 6.73% year-on-year [4] - New energy vehicle sales reached 62,558 units, while overseas sales totaled 90,890 units [4] - Among the brands, only the Wey and pickup brands saw year-on-year growth, with Wey brand sales up 38.69% and pickup brand sales up 14.97% [4] - Haval brand sales were 144,590 units, down 8.42% year-on-year, while Ora brand sales fell 54.31% to 6,867 units [4] Expense Analysis - Total expenses for the quarter were 4.11 billion yuan, a decrease of 650 million yuan year-on-year [5] - Sales expenses surged by 34.57% to 2.30 billion yuan, while management and R&D expenses decreased by 6.43% and 2.72%, respectively [5] - The company reported a significant drop in net cash flow from operating activities to -8.98 billion yuan, a decline of 243.1% year-on-year, indicating increased financial pressure [5] Strategic Outlook - The company is currently in a critical phase of transitioning to new energy vehicles amid intensified market competition and shrinking market share for traditional fuel vehicles [6] - There is a need for accelerated transformation to capture market share and achieve sustainable growth [6] - The ability to regain growth momentum through technological breakthroughs and global expansion remains uncertain and will require time to assess [6]