Core Insights - The 2023 China Rally Championship, known as the "环塔国际拉力赛," commenced on May 20 in Aksu, Xinjiang, featuring a total distance of 4,500 kilometers over 13 days, with special stages covering 2,350 kilometers [2] - Great Wall Motors is participating with a large team consisting of ten factory production vehicles and twenty drivers and navigators, showcasing its "dual-drive" technology across gasoline, diesel, and new energy categories [2][3] Group 1: Strategic Positioning - Great Wall Motors has a historical connection with the Rally, having won the overall championship in 2015, marking a significant achievement for Chinese off-road brands [3] - The company is returning to the competition with a new strategic layout, integrating traditional fuel and new energy technologies, and validating its "dual-drive" technology in extreme conditions [3][15] - The extreme environments of the rally serve as a natural testing ground for vehicle performance, allowing for real-world data collection to enhance production models [3][12] Group 2: Technical Innovations - The Tank brand's Hi4 team features hybrid vehicles that combine a 3.0T V6 engine with an electric motor, achieving a total output of 517 horsepower and 750 Nm of torque, while also focusing on fuel efficiency [6] - The Haval team is utilizing specially tuned vehicles, such as the Haval H9, which has enhanced torque and an all-terrain control system to tackle various challenging terrains [8] - The Great Wall Cannon V6 team is showcasing its 3.0T model, which includes advanced drivetrain technologies to improve off-road capabilities and comfort for everyday driving [10] Group 3: Data Utilization and Market Application - The rally provides an opportunity for Great Wall Motors to collect real-time performance data through onboard sensors and cloud platforms, focusing on critical metrics like power response and thermal management efficiency [12] - Insights gained from the rally will be applied to production vehicles, optimizing suspension settings and power distribution strategies to enhance overall performance [12][13] - The company emphasizes the importance of converting technical achievements from the rally into user value, such as improving battery thermal management for future electric vehicles [13][15]

Core Viewpoint - Great Wall Motors is facing significant challenges, including a sharp decline in operating performance, with net profit down 45% year-on-year in Q1, and three of its five main brands experiencing a drop in sales, particularly the Ora brand, which saw a 54.31% decrease [1][2]. Financial Performance - In Q1, Great Wall Motors reported a revenue of 40.019 billion yuan, a decrease of 6.63% year-on-year, and a net profit of 1.751 billion yuan, down 45.6% compared to the previous year [2]. - The overall sales volume for the company fell by 6.73% year-on-year, with three out of five main brands showing a decline [2]. Sales Performance by Brand - Haval brand sales decreased by 2.45% month-on-month and 8.42% year-to-date [4]. - Ora brand sales plummeted by 53.90% month-on-month and 54.31% year-to-date [4]. - Tank brand sales fell by 8.29% month-on-month and 14.63% year-to-date [4]. - The only brand showing growth was the pickup segment, which saw a 14.97% increase year-on-year, surpassing 50,000 units in a single quarter [6]. Market Position and Strategy - Great Wall Motors is adhering to a "pan-internal combustion engine" strategy, emphasizing traditional fuel engines while other manufacturers are shifting towards electric and hybrid models [3][9]. - The company has faced criticism for slow product updates and a lack of responsiveness to changing consumer demands, particularly with the Haval H6 model, which has seen a significant decline in sales [5][10]. Industry Context - The penetration rate of new energy vehicles in China is expected to exceed 50% by late 2024, indicating a shrinking market for traditional fuel vehicles, which poses a risk to Great Wall Motors' current strategy [8][11]. - The company’s focus on internal combustion engines may limit its competitiveness in a rapidly evolving market where electric vehicles are gaining traction [9][10].