Hua Xia Shi Bao·2025-10-28 11:40Core Insights - Great Wall Motors reported a revenue of 153.58 billion yuan for the first three quarters of 2025, a year-on-year increase of 7.96%, with sales exceeding 923,400 units, up 8.15% [2] - However, the net profit attributable to shareholders decreased by 16.97% to 8.635 billion yuan, with a significant quarterly profit drop of 31.23% [2][3] - The decline in profit is attributed to strategic investments aimed at future growth, particularly in building direct-to-consumer (DTC) channels and enhancing brand premiumization [3][4] Financial Performance - The net profit for Q3 was 2.298 billion yuan, down 31.23% year-on-year, raising concerns about profitability [3] - Excluding one-time factors such as tax refunds and exchange losses, the net profit decline would be approximately 30% [4] - Gross margin decreased to 18.4%, down 1.6 percentage points, influenced by reduced contributions from the Tank brand and increased dealer rebates for Haval and pickup brands [4] Strategic Investments - Sales expenses surged by 55.52% to 7.948 billion yuan, significantly outpacing revenue and sales growth [2][3] - The DTC model aims to enhance user data control, improve brand experience, and reduce profit dilution from intermediaries, despite short-term profit erosion [3][4] - Long-term benefits include increased repurchase rates, flexible pricing strategies, and rapid product iteration through user data feedback [3] Product and Brand Development - Sales of models priced above 200,000 yuan reached 101,300 units, a 40.83% increase, indicating progress in brand premiumization [4] - The WEY brand saw a remarkable 96.35% increase in sales to 63,600 units, with the high-end MPV model achieving significant monthly sales [4] - The Tank brand established a leading position in the rugged off-road market with models like the Tank 500 [4] Global Expansion - New energy vehicles (NEVs) accounted for 30.16% of total sales, with cumulative sales of 278,500 units, a 31.67% increase [5] - Overseas sales reached 334,200 units, up 3.06%, with Q3 sales of 136,500 units, reflecting strong growth [5][6] - Localized production in Brazil and a growing sales network across over 170 countries enhance competitive advantages [6] Market Positioning - The average profit per vehicle sold was 9,351 yuan, maintaining a strong position among domestic brands despite competitive pricing pressures [7] - The company is navigating a transitional phase in the automotive industry, balancing revenue growth with necessary investments for future competitiveness [7] - Future sales expense reductions are anticipated as the DTC channel's impact becomes evident, alongside continued momentum from high-quality models [8]