AutoBeta(AutoBeta.net)07/24 Report--

On July 23, Great Wall released its interim results report for 2020. According to the report, the total revenue of Great Wall Motor in the first half of the year was 35.929 billion yuan, down 13.17% from the same period last year, while the net profit attributed to shareholders of listed companies was 1.153 billion yuan, down 24.02% from the same period last year.

Great Wall said that the year-on-year decline in net profit attributed to the company's shareholders during the reporting period was mainly due to the impact of the COVID-19 epidemic, reduced sales year-on-year and continued to increase investment in research and development.

Great Wall Motor is the main independent brand car company in China, and it is also among the best in terms of sales. According to the data, the cumulative sales of Great Wall cars reached 1060298 in 2019, up 0.69% from 1053039 last year. Thanks to the achievement of its sales target and growth, Great Wall has set a sales target of 1.11 million vehicles in 2020.

At the beginning of this year, a sudden epidemic plunged the entire car market into chaos, affecting the production and sales of car companies, and the Chinese car market was in a downturn for three years in a row. a number of car companies, including Great Wall Motors, are difficult to meet the sales and performance targets set at the beginning of the year, so they have to adjust their sales and performance targets. Earlier, Great Wall lowered its sales target for 2020 to 1.02 million vehicles from 1.11 million, while net profit fell to 4.05 billion yuan from 4.7 billion yuan, becoming the first domestic car company to revise its sales targets and performance.

Figures show that Great Wall sold 395097 vehicles in the first half of this year, down 19.95 per cent from the same period last year. Of these, sales of the Harvard brand fell 25.69 per cent to 262216, the WEY brand fell 43.18 per cent to 26639 and the Euler brand fell 65.07 per cent to 9436. As of June 30, Great Wall had achieved 38.7% of its sales target, and the revised sales and performance target completion rate remains a mystery.

In today's Chinese auto market, it is a great challenge to independent brands. In terms of the development of independent car companies in the first half of the year, the epidemic situation and the continued downturn of the car market have increased the reshuffle of the market, and began to show a trend of polarization. The market concentration of main independent brands such as Geely, Great Wall and Chang'an is increasing, while the living environment of weak independent brands such as Haima, brilliance, Southeast, Lifan, Zhongtai and other car companies has also become worse. fall into a situation of operating difficulties and continuing losses.

Great Wall Motor, as the main domestic independent brand, also issued a "question" whether it can survive next year. On the occasion of the 30th anniversary of the strength of Great Wall Automobile, Great Wall Wei Jianjun issued an open letter saying: "this year is my thirtieth year of building a car at the Great Wall. The so-called 'standing at 30'. At this special time, many people think that Great Wall, which has grown over the past 30 years, has grown from small to big, from weak to strong, from lack of self-confidence to self-confidence. In fact, it is not optimistic. When we face global competition, that is, in a world full of uncertainties, we have to ask: will Great Wall survive next year? "

According to Wei Jianjun, Great Wall Motor has developed rapidly in the past 30 years, but in the face of great changes in the current market, in the face of the global economic downturn, new car-building forces, and the "sandwiched attack" of foreign brands, coupled with the superimposed impact of the epidemic, the future development prospect of Great Wall Automobile is not optimistic.

In 2019, the market share of China's independent brands fell below 40%. Affected by the epidemic in the first half of 2020, the market share of independent brands was only 36.3%, a 10-year low, causing worries in the industry about its follow-up development and living environment. From this point of view, Wei Jianjun's concern is not without reason. With the economic downturn and the gradual slowdown of market increment, China's automobile market is entering a new stage of stock competition, and China's automobile market will face a severe test in stages.

The first half of the performance is good or bad is a foregone conclusion, for the current car companies in the second half of the development is particularly important, the need to increase investment to make up for the losses in the first half of the year. At present, Great Wall Motors is also speeding up the launch of new cars and technology investment. Great Wall Motor has just launched three major technology brands: lemon, WEY Tank and Coffee, including the Haver Dog, Ola good Cat and WEY Tank 300 models. In addition, Great Wall currently mainly sells SUV, pick-up trucks and new energy vehicles, and not involving cars is also a major disadvantage for Great Wall, while Wei Jianjun made it clear that "I will definitely be a car in the future."

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