AutoBeta(AutoBeta.net)04/25 Report--

On the evening of April 24, Great Wall Motor released its 2019 results report, which showed that its operating income in 2019 was 96.211 billion yuan, down 3.04 percent from 99.23 billion yuan in the same period in 2018; operating profit was 4.777 billion yuan, down 23.35 percent from 6.232 billion yuan in the same period in 2018; and the net profit of shareholders belonging to listed companies was 4.497 billion yuan, down 13.64 percent from 5.207 billion yuan in the same period in 2018.

Great Wall said that the decline in net profit is mainly due to the company's focus on the SUV category, increasing R & D investment, increasing R & D expenditure and strengthening brand marketing. However, although the net profit attributable to the company's shareholders decreased by 13.64% compared with the same period last year, the net profit attributable to the company's shareholders after deducting non-recurring gains and losses increased by 2.52%.

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.

Overall, as a self-branded car company second only to Geely, it performed slightly better than the market in 2019. Although the net profit is in a state of decline, there is no doubt in view of the increased output in R & D and brands.

In addition to reporting 2019 results, Great Wall also released first-quarter results. According to the report, the operating income of Great Wall Motor in the first quarter of 2020 was 12.416 billion yuan, down 45.13 percent from 22.627 billion yuan in the same period in 2019. The net profit belonging to shareholders of listed companies was-650 million yuan, down 184.08 percent from 773 million yuan in the same period in 2019. The net profit belonging to shareholders of the company after deducting non-recurring profits and losses was-749 million yuan, down 216.37 percent from 643 million yuan last year. It is understood that the government subsidy included in the profits and losses of the current period is 139 million yuan.

In addition to the current market downturn, Great Wall Motor's net profit fell sharply in the first quarter, and the epidemic also bore the brunt of its sales. According to the data, the cumulative sales of Great Wall Motor in the first quarter was 150332, down 47.04% from the same period last year. Among them, car sales in March were 60048, down 41.75% from a year earlier. To this end, Great Wall Motor announced in the middle of last month that it would lower its sales target for 2020 to 1.02 million vehicles from 1.11 million, and its net profit to 4.05 billion yuan from 4.7 billion yuan.

In the long run, due to the impact of the COVID-19 epidemic, domestic car companies will almost inevitably lead to huge losses in 2020. In view of the improvement of the current domestic situation, the resumption of work and production of domestic automobile enterprises has basically reached the level before the epidemic, coupled with the introduction of various policies to stimulate automobile consumption, it is expected to return to the same level in the second half of the year. However, due to the basic stagnation of China's auto market in February, the decline in performance in the first quarter is inevitable.

As far as Great Wall Motor is concerned, sales have exceeded 1 million vehicles for four consecutive years up to 2019. Due to the epidemic, Great Wall cars in 2020 are full of uncertainties. The independent car company's dream of 1 million vehicles may be "lost". However, in a number of car companies simultaneously disturbed by the epidemic and led to a decline in sales, even if Great Wall can not exceed 1 million vehicles is understandable.

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