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

Recently, Great Wall Motor disclosed its first-quarter results, which showed that its operating income in the first quarter was 33.619 billion yuan, an increase of 8.04% over the same period last year, and its net profit was 1.634 billion yuan, down 0.34% from the same period last year. The net profit belonging to shareholders of listed companies after deducting non-recurring gains and losses was 1.303 billion yuan, down 2.41% from the same period last year. It is worth noting that Great Wall Motor received 800 million yuan in government subsidies in the first quarter, accounting for 49.02% of its total net profit.

In terms of sales, Great Wall sold 283500 vehicles in the first quarter, down 16.32% from the same period last year. Among them, the sales of Harvard brand was 166800, down 25.13% from the same period last year; the sales of Great Wall pickup trucks was 43000, down 27.68% from the same period last year; and the sales of Euler brand was 33800, up 10.01% from the same period last year. Tank brand increased by 22.34% and 79.80% respectively. As for the decline in sales, Great Wall explained that many parts suppliers of Great Wall were affected by the epidemic in many places in China, resulting in limited factory capacity and weakening scale effect.

Affected by the epidemic in many places in China, many parts suppliers of Great Wall have been affected, and many models have announced delays in delivery. Euler's black and white cats have directly announced that they will stop taking orders. On the evening of February 14, the Euler brand issued a notice to the 4S store: from 0: 00 on the 15th, all dealers will stop receiving orders for black cat and white cat models. In response to the reasons why Euler Black Cat and Euler White Cat no longer accept orders, Euler Automobile responded on the official Weibo: "due to the shortage of chips, the supply of spare parts can not guarantee production and many other reasons, resulting in a large backlog of orders for black and white cats." the customer car purchase cycle is too long, affecting the customer experience, in order to avoid bringing more bad car purchase feelings to car owners who trust Euler models. The manufacturer will coordinate internal resources to meet the existing order scheduling plan more quickly, and ensure the car pick-up speed and car purchase benefits of existing car-booking customers.

On March 8th, Great Wall released February sales, which showed that new car sales for the month were 70792, down 20.5 per cent from a year earlier. In response to the decline in sales, Great Wall explained that it was mainly due to the Spring Festival holiday and the insufficient supply of body electronic stabilization system (ESP) produced by Bosch Auto parts (Suzhou) Co., Ltd. On April 10th, Great Wall released March sales, showing that new car sales for the month were 100930, down 8.86 per cent from a year earlier. Great Wall Automobile officials said that affected by the epidemic in Shanghai, Jiangsu, Jilin and other places, a number of Great Wall parts suppliers were affected, resulting in limited production capacity of the factory, but the factory did not stop production. On April 13th, the tank brand announced on its official APP: affected by the epidemic in Shanghai, Jiangsu, Jilin and other places, the tank 300 models involved eight supplier partners to stop work and operation, and production of tank 300 models was suspended from April 14.

Although net profit has decreased, the average price of bicycles has increased. According to the first-quarter results, the average price of Great Wall Motors reached 119000 yuan, an increase of 29.12% over the same period last year. The average profit of bikes was 4600 yuan, an increase of 16.62% over the same period last year. It is understood that on March 19, Great Wall Euler issued an announcement that due to the continuous sharp rise in the prices of upstream raw materials, Euler cars will adjust the prices of 2022 Euler cats (including GT version), and the comprehensive guidance price will be increased by 6000-7000 yuan after subsidies. The price adjustment will take effect from 00:00 on March 23rd. In addition to Euler cars, on April 12, the Great Wall Wei Brand also announced that due to the sharp rise in the prices of raw materials, chips and core components, the official guidance price of some coffee models will be adjusted by 5000 to 12,000 yuan.

At the beginning of the year, Great Wall set an annual sales target of 1.9 million vehicles and met only 15 per cent of its annual sales target in the first quarter. So far, however, Great Wall has not adjusted its sales target. It is understood that Great Wall will launch Wei brand "Dream come true", Haverku Dog, Euler Ballet Cat and other models in the second quarter of this year. In the third quarter, there will be Wei brand's first MPV, Tank 700, Punk Cat and Salon Machine Jialong and other new cars.

According to the research report of Ping an Securities, although the company has faced many unfavorable factors such as lack of core and rising battery costs since the beginning of 2022, the company's production capacity was underutilized in the first quarter of 2022, and the production rhythm was disturbed in the second quarter due to epidemic prevention and control. however, the short-term difficulties encountered do not change the company's long-term development potential, and the effectiveness of brand attack is expected to be further enhanced.

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