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Recently, Great Wall Motor issued an announcement on adjusting the performance evaluation targets of the 2021 restricted stock incentive plan and the 2021 stock option incentive plan. According to the announcement, Great Wall Motor has lowered its 2023 target, and the achievement rate of Great Wall Motor's 2023 performance target has been updated from no less than 2.8 million vehicles to no less than 1.6 million vehicles. The net profit has been updated from no less than 11.5 billion yuan to no less than 6 billion yuan.

Great Wall's sales target for 2022 is 1.9 million. So far, Great Wall has not released sales figures for December, but according to the latest November sales figures of Great Wall, Great Wall sold 87600 vehicles in November, down 28.53% from January to November, down 11.49% from January to November. So far, Great Wall Motor has completed only 52.10% of its annual sales of 1.9 million vehicles in the previous November. Even if the five major brands of Great Wall Motor can hand over 100, 000 vehicles in December, their cumulative annual sales are less than 1.1 million, making it almost impossible to achieve the annual sales target.

In response to the sharp decline in production and sales data of Great Wall in November, Great Wall said it was affected by the epidemic, affecting some factories and parts suppliers, resulting in sharp restrictions on production and sales in November. Great Wall Motor is fully cooperating with epidemic prevention work, and actively solving related problems, trying to reduce the impact.

The reduction in sales targets for Great Wall, which has five major brands, including Harvard, Wei Brand, Great Wall pickup trucks, Euler and Tank, may have something to do with falling sales of several brands. In November, the tank brand was the only one of the five major brands of Great Wall to achieve small growth, with Wei Brand and Euler brands halving.

The Harvard brand, the backbone of Great Wall sales, fell 22.04 per cent to 53923 vehicles in November from a year earlier. At present, the main selling models of the Harvard brand include Harvard H6, Harvard Dog, Harvard Divine Beast, Harvard Red Rabbit, Harvard first Love and Harvard H9, etc., but the performance of the above models is mediocre, with a year-on-year decline in a number of main models. Take November 2022 as an example: in November, the sales of Harvard H6 was 21148, down 34.81% from the same period last year; the number of Harvard dogs in November was 8735, down 15.56% from the same period last year; the sales of Harford Divine Beast 11 was 1415, down 40.75% from the previous month; the latest monthly sales of Harvard Red Rabbit were 386, and the cumulative sales in 2022 were 20549; the monthly sales of Harvard's first love were 675, and the cumulative sales in 2022 were 4343. The Harvard H9 sold 1293 vehicles in the latest month, with a cumulative sales of 11864 in 2022.

Sales of Euler, the all-electric brand owned by Great Wall, are also poor, with November sales of 6776 vehicles down 58.01 per cent from a year earlier. As of November, Euler brand sales totaled 97000 vehicles, down 14.93% from a year earlier. Prior to this, Euler won the favor of many female car owners in the market by relying on two low-cost models, black cat and white cat. However, due to cost pressure, Great Wall Motor Euler stopped production of two models, coupled with the previous "change the core door" incident, so that the performance of the Euler brand in the market continues to shrink. On July 12, Euler Ballet Cat officially went on sale, with a subsidised price range of 19.30 yuan to 223000 yuan. The model was not recognized by female consumers because the price was obviously too high.

Wei Brand, the high-end brand of Great Wall, had the biggest decline in November sales. According to the data, Wei brand sales in November were only 2110, down 66.43% from a year earlier. The cumulative sales from January to November were 48000, down 27.53% from a year earlier. The Great Wall pickup brand sold 13800 vehicles in November, down 33.53% from the same period last year. A total of 172900 vehicles were sold in the first 11 months, down 16.85% from the same period last year.

The tank brand, the only brand of Great Wall that grew in November, is growing every month. Sales in November were 10919, up 8.02% from a year earlier. According to the data, the cumulative sales of tank brands in the first three quarters were 89200, an increase of 69.65% over the same period last year. Whether it is monthly sales or annual sales, the performance of tank brands is significantly better than that of other brands. At present, tank brand products include tank 300 and tank 500 models, of which tank 300 is the main sales model of tank brand, accounting for more than 85% of the total sales of tank brand. In the future, tank brand will also launch tank 400, tank 700 and other models.

With only the tank brand growing, it may be understandable for Great Wall to cut its sales target for 2023. In fact, after entering 2022, various major brands of Great Wall have launched a number of new models one after another, including Tank 500, Wei Brand realize Dream, Harvard Cool Dog, Harvard H6 hybrid model, Euler Lightning Cat and so on. However, a series of new cars failed to bring rapid growth to Great Wall Motor after the launch, but suffered a sharp decline. In response, Great Wall announced in December that it would adjust the organizational structure of its brands, involving all its vehicle brands, including Harvard, Wei Brand, Tank, Euler, Great Wall pickup trucks and the newly established salon brand. It is not known whether the adjusted Great Wall will take a turn for the better in terms of sales, but Great Wall will face an uphill battle in 2023 as far as its sales target is concerned.

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