AutoBeta(AutoBeta.net)08/26 Report--

Great Wall Motor released its semi-annual results today, showing that the company's first-half operating income was 40.317 billion yuan, down 15.93% from the same period last year, and its net profit was 1.517 billion yuan, down 58.95% from the same period last year. In response to the decline in revenue and net profit of the company, Great Wall said that during the reporting period, the company increased the preferential quota for its products to benefit consumers, and continued to increase brand promotion and investment in research and development, resulting in a year-on-year decline in net profit belonging to shareholders of the parent company.

For comparison, Great Wall Motor achieved a total revenue of 99.23 billion yuan in 2018, down 1.92% from the same period last year, and a net profit of 5.207 billion yuan, an increase of 3.58% over the same period last year, with a total sales of 1.053 million vehicles.

Under the continuous low ebb of the domestic car market, Great Wall Motor is also facing greater pressure.

Thanks to the maintenance of price cuts and promotions, the overall sales of Great Wall increased, with sales of 63299 vehicles in June, up 1.79 per cent year-on-year, or 4.67 per cent from January to June.

The Harvard brand achieved 8.5 per cent sales growth in the first half, while high-end brand WEY continued to decline, with cumulative sales of 46884 vehicles in the first half, down 40 per cent from a year earlier. Great Wall new energy vehicles also helped to increase sales, with Euler selling a total of 27013 new energy vehicles in the first half of the year.

Great Wall Motor also issued an announcement on July 19th to lower its sales target: according to the development of the automobile industry in the first half of the year, in order to maintain the healthy, stable and sustainable development of overall sales, and according to the actual situation of its brands, the sales target for 2019 will be adjusted to 1.07 million vehicles, and the sales target set at the beginning of the year will be 1.2 million vehicles.

Today's Chinese auto market is a great challenge to independent brands. In the first half of the year, Geely's net profit was 4.01 billion yuan, down 40% from the same period last year; Changan Motor is expected to lose 19-2.6 billion; Haima Motor lost 178 million; Lifan Motor lost 947 million.

In contrast, BYD made a net profit of 1.455 billion yuan in the first half, up 203.61% from a year earlier. However, BYD expects profits to decline significantly in the third quarter compared with the same period last year due to the decline in market demand and the sharp decline in subsidies for new energy vehicles.

Maintain sales by cutting prices, profits fall sharply, or even losses, and 2019 for independent car brands will be very difficult.

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