2 1 Shi Ji Jing Ji Bao Dao·2025-09-03 13:00Core Viewpoint - Great Wall Motors reported a slight revenue increase but a significant decline in net profit, indicating challenges in maintaining profitability amid strategic shifts and market competition [4][5]. Financial Performance - Total revenue for the first half of the year reached 92.33 billion, a year-on-year increase of 0.99% [4]. - Net profit attributable to shareholders was 6.34 billion, down 10.21% compared to the previous year [4]. - The total profit decreased by 15.22%, reflecting the impact of increased investments in new products and market expansion [4][5]. - Cash flow from operating activities was 9.21 billion, a decrease of 1.52% from the previous year [4]. - Net assets attributable to shareholders increased by 6.92% to 84.45 billion [4]. Sales and Market Dynamics - Total vehicle sales for the first half were 568,900 units, a modest increase of 2.52% year-on-year [4]. - Sales of the Haval and Tank brands showed significant slowdowns, with Haval's sales up only 7.24% and Tank's down 10.67% [3]. - The premium Wei brand saw a substantial increase in sales, up 73.62% to 34,000 units, becoming a more critical part of Great Wall's profit structure [3]. Strategic Initiatives - The company attributed profit fluctuations to increased investments in new product cycles, including new marketing channels and brand enhancement efforts [5][6]. - Sales expenses surged by 63.31% to 5.04 billion, indicating a strategic focus on market expansion and brand building [6]. - Research and development expenses slightly increased by 1.21% to 4.24 billion, showing a continued commitment to innovation [6]. Competitive Landscape - Great Wall faces increasing competition from BYD and Geely, which have significantly outpaced it in sales and profitability [7]. - BYD's sales reached 2.15 million, up 33.04%, while Geely's sales were 1.41 million, up 47% [7]. - Great Wall's new energy vehicle penetration rate was only 28.2%, compared to Geely's 51.5% [7]. Future Outlook - The market has high expectations for Great Wall's high-end and international strategies, which are anticipated to open new growth cycles [7]. - The company is planning to launch new models under the Ora brand to revitalize its market presence [8]. - Great Wall is also investing in its supply chain capabilities, including a new factory for smart driving components and various battery products [8].