Core Viewpoint - Great Wall Motors is at a critical juncture as it approaches its 35th anniversary in 2025, facing intense domestic competition and the need for transformation in the fields of new energy and smart technology [1] Financial Performance - In Q2 2025, Great Wall Motors achieved a record revenue of 52.348 billion yuan, marking the best second-quarter performance in its history; net profit reached 4.586 billion yuan, a year-on-year increase of 19.46% and a quarter-on-quarter increase of 161.91%, setting a new high for quarterly net profit [1] - The recovery in profitability is attributed to a strategic optimization of its product mix, leading to significant improvements in average selling price (ASP) and gross margin [1] Brand Strategy - Great Wall Motors operates six brands that effectively target specific market segments, with the Haval brand maintaining a strong presence in the SUV market while the Wey brand focuses on high-end smart electric vehicles [2] - The Tank brand has become a leading player in the high-end off-road vehicle market, with cumulative global sales exceeding 700,000 units, establishing a high-profit niche [2] - The company’s strategy of multi-brand collaboration has allowed it to avoid internal competition and effectively capture value across different consumer segments, contributing to a significant increase in net profit despite industry-wide price wars [2] Supply Chain and Ecosystem - Great Wall Motors has developed a "forest ecosystem" that integrates key components from electric systems to smart driving, providing a robust cost defense and enhancing strategic value [3] - Subsidiaries like Honeycomb Energy and Honeycomb Automotive have achieved stability in core component supply and cost advantages, allowing the company to gain more control in supply chain negotiations [3] - This ecosystem is also generating new profit growth points by supplying parts to external clients, including major brands like BMW [3] Global Expansion - The company’s overseas sales reached 106,800 units in Q2, accounting for over one-third of total sales, indicating a strong growth trajectory in international markets [4] - Great Wall Motors is not merely exporting vehicles but is implementing a comprehensive "ecological export" model that includes R&D, production, and supply chain services [4] - The establishment of full-process production bases in countries like Thailand and Brazil has enabled the successful introduction of high-value models to global markets [5] Strategic Outlook - Analysts, including those from Guohai Securities, express optimism about Great Wall Motors' future performance, citing its solid competitive advantages overseas and high profit certainty [5] - The company’s Q2 report serves as a test of its industrial model amid rapid technological changes and market uncertainties, highlighting a divergence in strategic approaches within the automotive industry [6] - Great Wall Motors is pursuing a heavy asset strategy aimed at achieving full control over core technologies and applications, which requires substantial capital investment and operational efficiency [6] Future Challenges - The potential rewards of this strategy include unparalleled cost control, faster internal collaboration, and the ability to create highly differentiated products [6] - The competition in the automotive industry will increasingly revolve around contrasting organizational models and business philosophies, with Great Wall Motors' approach being a significant gamble that could redefine its future [6]

Core Viewpoint - In 2024, the Chinese automotive industry is rapidly transitioning towards intelligence and new energy, with Great Wall Motors maintaining a "long-termism" approach amidst market volatility and price wars, resulting in impressive annual performance. Financial Performance - Great Wall Motors achieved revenue of 202.195 billion yuan in 2024, a year-on-year increase of 16.73% [2] - Gross profit reached 39.449 billion yuan, up 25.47% year-on-year, with a gross margin of 19.51%, an increase of 1.36 percentage points [2] - Net profit surged to 12.692 billion yuan, marking a significant year-on-year growth of 80.73% [2] - Sales of new energy vehicles reached 322,200 units, a 25.65% increase year-on-year, while overseas sales hit 454,100 units, up 44.61% [2] Product Strategy - The proportion of high-priced models increased, with the Tank brand selling 232,195 units at an average price above 200,000 yuan, a 42.57% year-on-year increase, accounting for 18.8% of total sales [3] - The WEY brand, with a starting price above 220,000 yuan, sold 55,539 units, a 56.60% increase year-on-year [3] - The average revenue per vehicle reached 163,800 yuan, an increase of 23,000 yuan year-on-year [3] Research and Development - Great Wall Motors employs 23,000 R&D personnel, with R&D investment exceeding 10 billion yuan for three consecutive years [3] - The company reported a 56.49% year-on-year increase in operating cash flow, reaching 27.783 billion yuan, demonstrating strong profitability [3] Technological Innovation - The company actively advanced its smart vehicle transformation, launching the Coffee Pilot Ultra and Coffee OS 3 systems, and successfully developing the RISC-V automotive-grade MCU chip [4] - Great Wall Motors established an end-to-end intelligent driving model SEE and a new AI data intelligence system, with a 96% user adoption rate for intelligent driving in 2024 [4] Global Expansion - Great Wall Motors implemented an "ecological overseas" strategy, achieving a comprehensive layout in overseas markets [5] - The company expanded high-value model sales overseas, with the WEY brand entering Europe and the Middle East, and the Tank series launching in multiple countries [5] - The sales network now covers over 170 countries and regions, with more than 1,400 overseas sales channels [5]

Summary of Great Wall Motors Conference Call Industry Overview - The global automotive market in 2024 is projected to reach 90.15 million units, a year-on-year increase of 1.2% [3] - China's automotive sales are expected to be 31.44 million units, growing by 4.5%, maintaining its position as the largest automotive consumer market globally, accounting for one-third of total global sales [3] - The new energy vehicle (NEV) sector continues to grow rapidly, with sales surpassing 12.87 million units, a 35.5% increase, achieving a penetration rate of 40.9% [3][4] - Automotive exports from China are expected to reach 5.86 million units, a 13.9% increase, representing 18.6% of total sales, up by 2.3 percentage points from the previous year [3][4] Company Performance - Great Wall Motors (GWM) anticipates sales of 1.2345 million units in 2024, with NEV sales reaching 322,000 units, a 25.65% increase, and a penetration rate of 43.99% [4] - Overseas sales are projected at 454,100 units, a 44.61% increase [4] - Revenue is expected to be 202.195 billion yuan, a 16.7% increase, with net profit attributable to shareholders at 12.692 billion yuan, up 80.8% [4] - The company plans to increase the number of retail centers to 500 by 2025, with a goal of over 1,000 centers in three years, focusing on core cities [4][8] Brand Performance - The Tank brand is expected to achieve sales of 230,000 units in 2024, a 42% increase, with total sales surpassing 600,000 units [4][9] - The Haval brand is set to embrace smart technology, expanding its product line in the 250,000 to 500,000 yuan range and preparing for sedan categories [4][11] Financial Metrics - As of the end of 2024, GWM's total assets are 2.17266 trillion yuan, with cash and cash equivalents (including investments) at 449.2 billion yuan [4][12] - The debt ratio stands at 63.64%, a decrease of 2.32 percentage points from the beginning of the year [4][12] - The net cash flow from operating activities is 277.83 billion yuan [4][12] Technological Advancements - GWM is pursuing a diversified technology route in the power battery sector, focusing on high-power ultra-fast charging platforms and developing an intelligent driving system, Coffee Pilot Ultra, that does not rely on high-precision maps [4][13] - The company has launched a new AI data intelligence system to enhance efficiency and reduce reliance on manual data selection [4][14] Global Strategy - GWM is focusing on long-term value and stability in response to global market changes, with strategic emphasis on Latin America, the Middle East, North Africa, and ASEAN markets [4][17] - The company aims to strengthen its brand value through product differentiation and innovation, particularly in the Tank brand and AI-driven luxury offerings [4][17] ESG Initiatives - GWM is committed to sustainable development, aligning with national carbon neutrality goals, and has maintained an MSCI ESG rating of A [4][18] - The company emphasizes social responsibility through community engagement and shareholder returns, with a record dividend payout of 4.5 billion yuan [4][18] Future Outlook - For 2025, GWM expects stable performance with new vehicle launches driving sales growth, including a new series of pure electric vehicles under the Ora brand [4][20][22] - The heavy truck business aims to sell 10,000 units in 2025, leveraging advanced technologies from the passenger vehicle sector [4][24] Analyst Insights - Sell-side analysts recognize GWM's competitive advantages and adaptability in the face of industry changes, highlighting the company's strong execution capabilities and sustainable operational efficiency [4][30]