AutoBeta(AutoBeta.net)02/21 Report--

Great Wall Motor officially released its 2019 results report today. KuaiBao showed that the operating income of Great Wall Motor in 2019 was 96.455 billion yuan, compared with 99.23 billion yuan in the same period last year, down 2.8 percent from the same period last year. The net profit of shareholders belonging to the listed parent company was 4.493 billion yuan, compared with 5.207 billion yuan in the same period last year, down 13.73 percent from the same period last year.

Great Wall Motor said that the main reason for the decline in the company's net profit compared with the same period last year was that the company continued to strengthen brand building, introduced services such as ultra-long warranty to enhance brand image and brand loyalty, continued to increase investment in research and development, and reduced non-operating interest income.

However, although the net profit attributable to the shareholders of the company decreased by 13.73% compared with the same period last year, the net profit belonging to the shareholders of the company excluding non-recurring gains and losses increased by 2.41% compared with the same period last year.

Founded in 2001, Great Wall Motor is a well-known independent brand car company in China, second only to Geely in sales. Sales figures show that Great Wall sold 1060298 vehicles in 2019, up 0.69 per cent from 1053039 last year.

In terms of specific brands, the SUV camp includes Harvard brand and WEY brand, with cumulative sales of 869497 vehicles, down 3.98 from the same period last year. Among them, sales of the Harvard brand increased by 0.44% year-on-year to 769454 vehicles, while the WEY brand fell 28.28% to 100043 vehicles.

As the new energy brand of Great Wall, Euler brand ranks first in the A00 market segment. According to the data, the cumulative sales of the Euler brand in 2019 was 38865 vehicles, an increase of 1005.69% over the same period last year. In addition, Great Wall pickup truck sales are not to be outdone. The Great Wall Cannon, which went on sale in the second half of last year, has become the responsibility for the sales of pickup models, reaching 18299 units in the three months on the market.

Sales of Great Wall cars increased slightly in 2019 compared with the same period last year, which is not in line with the decline in net profit. In fact, the company spent a lot of money on brand building.

The beam automobile project, a joint venture between Great Wall Motor and BMW Group, was officially launched in November last year, and Great Wall Motor announced on December 31 that Beam Automobile Co., Ltd. was officially licensed. According to the data, beam automobile is a Sino-foreign joint venture company jointly funded by Great Wall Motor and BMW. The registered capital of the company is 1.7 billion yuan, and the total investment of the beam automobile production base project is 5.1 billion yuan. The construction scale is the annual production of 160000 fuel passenger cars for full export manufacturing and pure electric passenger car development. In the future, pure electric vehicles under the BMW Group's MINI brand and new products of Great Wall Automobile will be put into production here.

In addition, Great Wall announced on February 17 that it would acquire GM's Royong manufacturing plant in Thailand, and the two sides plan to complete the deal and final transfer by the end of 2020. On January 17, Great Wall just bought GM's plant in Talegang, India.

After the completion of the acquisition, Thailand's Royong manufacturing plant will become Great Wall Motor's third overseas vehicle manufacturing base after the Talegang plant in India, which will accelerate Great Wall's layout in ASEAN and the global market.

Wei Jianjun, chairman of Great Wall Motor, has repeatedly said, "Globalization is the only way out for Chinese automobile companies. If independent-brand cars blindly rely on the domestic market, they will have no influence in the world, and the dividends of more than 20 years will be wasted."

The latest sales show that Great Wall Motor sold 80261 vehicles in January, down 28.16% from a year earlier.

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