On January 23, 2022, Great Wall Motor Co., Ltd. released its 2021 performance report.
According to the financial report data, in 2021, The total operating income of Great Wall Motor was 136.317 billion yuan, an increase of 31.95% year-on-year; the net profit was 6.781 billion yuan, an increase of 26.45% year-on-year; the net profit attributable to the company's shareholders was 6.782 billion yuan, an increase of 26.47% year-on-year; and the average selling price of bicycles exceeded 106,400 yuan, an increase of 14.50% year-on-year.
Great Wall Motor said that the increase in net profit of shareholders of the company was mainly due to the increase in vehicle sales. During the year, sales increased and model structure improved, which contributed to the increase in performance.
In 2021, Great Wall Motor sold more than 1.28 million new vehicles, an increase of 15.2% year-on-year, exceeding one million sales for six consecutive years and hitting a record high. Among them, the cumulative sales of new energy vehicles reached 137,000 units, accounting for 10.7% of sales; overseas sales of 143,000 vehicles, an increase of 103.7% year-on-year, and sales accounted for 11.1%.
Among its brands, Haval sold 770,000 vehicles in the whole year, a slight increase of 2.64% year-on-year; Euler brand sold 135,000 vehicles in 2021, an increase of 140% year-on-year, of which sales exceeded 20,000 units for the first time in December 2021; Weipai sold 58,000 vehicles for the whole year, down 25.65% year-on-year, but after the Weipai coffee family latte DHT was listed in December, the brand's monthly sales immediately exceeded 10,000; the tank brand delivered 85,000 units throughout the year, accounting for more than 50% of the hardcore off-road vehicle market share. Great Wall pickup trucks have maintained the first domestic and export sales for 24 consecutive years, with sales of 233,000 units in 2021, an increase of 3.56% year-on-year, and the cumulative global sales exceeded 2 million units.
In the past year, Great Wall Motors has implemented a category innovation strategy, promoted the establishment of the tank brand and the global debut of Salon Motors, and launched more than 30 new products such as Haval Chitu, Haval Divine Beast, Weipai Mocha, Weipai Machido DHT-PHEV, Weipai Latte DHT, Tank 300 City Edition, Tank 500, and Euler Good Cat GT.
The automotive team of Pacific Securities Research Institute believes that non-operating expenses have affected Great Wall Motors' fourth-quarter results. Affected by one-time non-operating expenses such as employee year-end bonus accruals, Euler user charging rights and interests, and equity incentive expenses, the company's single-quarter net profit attributable to the mother in the fourth quarter declined to a certain extent. If these effects are not considered, the company's actual distribution of cars per bicycle ASP, bicycle gross margin, bicycle net profit margin are improving, matching the company's sales growth, but also benefiting from the industry's "tight balance" of short supply and demand.
In 2021, Great Wall Motors officially released the 2025 strategy, announcing that it will accelerate its transformation to a "global intelligent technology company", open a new journey of electrification and intelligent new tracks, and will have a cumulative R&D investment of 100 billion yuan in the next five years; plans to achieve global annual sales of 4 million vehicles by 2025, of which 80% will be new energy vehicles, with operating income of more than 600 billion yuan.
In the field of intelligence, in the new year, Great Wall Motors will continue to improve the level of product intelligence on the basis of the coverage of Vehicle Networking applications of Haval, Weipai, Euler, Tanks and Great Wall Cannons, and continue to expand the circle of coffee intelligent ecological alliance, and the number of coffee intelligent partners will exceed 150, accelerating the research and development and mass production of Great Wall Motors' intelligent vehicles.
In the field of electrification, in 2022, Great Wall Motor Dayu battery technology will be applied to its new energy series models to improve the safety level of power batteries; cobalt-free batteries will be installed on more models. Great Wall Motor will usher in the new energy vehicle product year, Euler Ballet Cat, Euler Punk Cat, Euler Lightning Cat new products will soon be launched; at the same time, Weipai will also be fully new energy. Lemon hybrid DHT and hydrogen energy related technologies will continue to land. The 3.0T+9AT/9HAT super powertrain will be installed on models such as the Tank 500.
In terms of globalization, in 2022, Wei brand and tank brands will bring WEYCoffee 01 and tank series models to overseas and deliver them. Haval brand, Euler brand, Great Wall pickup truck will also promote more models to go overseas, deep ploughing Russia, Australia, South Africa, Saudi Arabia, Chile and other markets, while continuing to actively explore Europe, Thailand and other overseas markets.
Although Great Wall Motors has achieved significant growth in many tracks such as new energy, globalization, off-road vehicles, pickup trucks, etc., the growth rate of the sales pillar Haval brand has shown fatigue, wei brand sales are still in a downward trend, and new products need to be released, which has become an uncertain factor for the company. In addition, whether the salon brand and the planned car project can be based on the high-end market and improve the average selling price level of Great Wall Motors' bicycles also needs to be verified by the market. In addition, industry factors such as chip shortage, subsidies for new energy vehicles, and shortage of raw materials for power batteries will continue to affect the achievement of the phased goals of Great Wall Motor's "2025 Strategy".
Bocom International released a research report that although the company is still facing the problem of raw material costs and chip shortages in the short term, its rich model cycle and continuous average selling price increase are expected to drive profit growth. Great Wall Motors is preparing for a recovery in 2022.
Industrial Securities believes that in 2022, Great Wall Motors will open a big year of product cycle, and the new product release is expected to drive the product structure to continue to rise, maintaining the "prudent overweight" rating. Looking forward to the first quarter of 2022, the chip shortage problem is expected to gradually ease, the current terminal inventory is still at a low level, with the listing of multiple brands and new cars, the company's production and sales scale is expected to rise.