Core Viewpoint - Great Wall Motors is transitioning its "Great Wall Smart Selection" stores nationwide to "Weipai New Energy Direct Stores," focusing solely on Weipai brand vehicles and withdrawing the Tank models from direct sales channels [1][4][7] Group 1: Company Strategy - The transition aims to establish Weipai as the only direct sales brand under Great Wall, enhancing its presence in the high-end market while addressing the challenges faced by traditional dealerships [1][4] - The new CEO of Weipai, Feng Fuzhi, indicated that the Tank models would return to dealerships, allowing Weipai to focus on direct sales, which is seen as a solution to connect with high-end users [4][9] - Great Wall's sales data shows a significant increase in new car sales, with 115,600 units sold in August, marking a 22.33% year-on-year growth, and Weipai's sales reaching 8,028 units, up 167.51% [1][9] Group 2: Market Dynamics - The dual sales model, combining direct sales and dealership sales, has led to conflicts of interest, as dealerships can offer lower prices through external financing incentives, impacting direct store sales [6][7] - Great Wall's strategy to balance the interests of direct stores and dealerships is crucial, as the latter has a long-standing relationship with the company, complicating the transition to a direct sales model [6][7] Group 3: Financial Performance - Great Wall's net profit for the first half of 2025 dropped significantly by 36.39% to 3.581 billion, attributed to increased expenses, particularly in expanding direct sales channels [9][12] - Despite a 2.52% increase in sales volume to 568,900 units, revenue growth was only 0.99%, indicating a decline in the profitability of high-end models [9][12] Group 4: Brand Development - Weipai is positioned as a key brand for Great Wall's high-end strategy, with plans to increase the number of direct stores from 430 to over 600 by the end of the year, aiming for a total of 1,000 stores [10][12] - The brand has faced challenges, including consumer price concerns and delays in product launches, which are common issues for new entrants in the high-end market [12][13] Group 5: Industry Trends - The recovery of the traditional fuel vehicle market is beneficial for Great Wall, with a reported 13.5% year-on-year increase in sales of traditional fuel passenger vehicles in August [13] - Great Wall's strategy to maintain a balance between fuel and electric vehicles allows for greater flexibility in adapting to market changes [13]

Core Viewpoint - The departure of Chen Jia, the commercial general manager of the WEY brand under Great Wall Motors, highlights the challenges in balancing the direct sales and dealership channels, which have been causing internal conflicts within the company [1][2]. Group 1: Management Changes - Chen Jia has confirmed his resignation, which was acknowledged by an internal source at WEY [1]. - Chen Jia was primarily responsible for the marketing system construction, focusing on bridging the commercial and service standards between direct stores and dealers [1]. Group 2: Sales Performance - WEY's sales have seen significant growth, with July sales exceeding 10,000 units, representing a year-on-year increase of 263.29% [2]. - Cumulatively, WEY's sales for the first seven months reached 44,500 units, marking a year-on-year growth of 96.8% [2]. Group 3: Channel Strategy - The company aims to expand its direct sales network from 430 to over 600 stores by the end of the year, covering 200 cities [2]. - The overlapping product offerings between direct sales and dealership channels have led to internal competition, creating conflicts such as price wars [3]. Group 4: Operational Challenges - The current average monthly sales volume of WEY is around 6,000 units, raising concerns about sustaining high investments in the direct sales system [4]. - Other traditional automakers are also exploring direct sales models, but typically only for low-volume models due to high labor costs and digitalization requirements [4].

Group 1 - The departure of Chen Jia, the General Manager of Weipai's commercialization, has been confirmed, raising concerns about the challenges in balancing the direct sales and dealer channels [1][2] - Weipai's sales have seen significant growth, with July sales exceeding 10,000 units, representing a year-on-year increase of 263.29%, and cumulative sales for the first seven months reaching 44,500 units, up 96.8% [2] - The conflict between the direct sales model and the dealer network has become more pronounced, as overlapping products lead to competition rather than cooperation, resulting in potential internal price wars [2][3] Group 2 - Weipai plans to increase the number of direct sales stores from 430 to over 600 by the end of the year, expanding its coverage to 200 cities [1] - The current direct sales model requires high manpower costs and a certain level of digitalization, which poses challenges for traditional car manufacturers [3] - Balancing the interests of direct sales and dealer channels remains a critical test for Weipai's management [3]