On April 22, Great Wall Motor announced its first-quarter financial report, achieving a total operating income of 33.619 billion yuan, an increase of 8.04% year-on-year; a net profit of 1.634 billion yuan, down 0.34% year-on-year; and a non-net profit of 1.303 billion yuan, down 2.41% year-on-year. Among them, the government subsidy income received during the reporting period was 800 million yuan, and the settlement incentives of Shangrao and Daye branches were 200 million yuan respectively.
Great Wall's revenue increased in the first quarter, sales declined to a certain extent, but the net profit fell slightly year-on-year, the reason is inevitably speculated; in the first quarter of this year, plagued by multiple factors, Great Wall Motors sold a total of 283,500 vehicles, down 16% year-on-year.
For the decline in sales, The Great Wall said that it was mainly affected by the epidemic and the shortage of raw materials, and many parts suppliers were affected, such as insufficient ESP supply, resulting in limited factory capacity, and tank 300 even once stopped production, which has now begun to gradually recover.
As the head brand of its own brand, how is the revenue performance of Great Wall Motors relative to BYD? Although BYD did not release the first quarter revenue data, but there is a forecast for the net profit, it is expected to achieve a net profit of 650-950 million yuan in the first quarter, an increase of 174% --300% year-on-year, an increase of 8% --58% month-on-month; from the absolute number of net profits, BYD is only about half of the Great Wall, but the net profit growth is a world apart.
BYD's sales in the first quarter were 291,000 units, an increase of 180% year-on-year and 1.4% month-on-month, and BYD has achieved shoulder-to-shoulder or even surpassed in sales; among them, the cumulative sales of new energy vehicles were 286,000 units, an increase of 423% year-on-year, +7.6% month-on-month, accounting for 98.3% of total sales. In terms of sales, BYD's development trend is better than the Great Wall, in order to make way for new energy, it has stopped production of fuel vehicles.
At present, the Great Wall is experiencing a painful period of transformation, the Haval brand is weak, Euler is facing an upward upgrade, and the tank brand is in short supply. It is undeniable that with the rise of the tank brand, the discontinuation of low-end models in Euler, and the transformation of Wei brand models into DHT hybrid coffee sequences, the price of Bicycles in the Great Wall is getting higher and higher, but the phenomenon of follow-up weakness has emerged.
At present, Great Wall Motors benefits from the continuous optimization of its product structure, and in the first quarter of this year, models based on the three major technology brands of lemon, tank and coffee intelligence accounted for 70.4%, and intelligent models accounted for 84.5%. The value-added capacity and premium capacity of new models have increased significantly, and the average price of bicycles in the first quarter of this year has increased to 119,000 yuan, an increase of 29.12% year-on-year.
The price of bicycles is this point, and Geely, known as "an independent brother", is also ashamed of itself. So, how much money does the Great Wall make for every car sold?
From the deduction of non-net profit and the total sales volume in the first quarter, it can be seen that on average, the Great Wall can achieve a net profit of about 4500 yuan per vehicle sold. In 2019, the profit of Mercedes-Benz and BMW bicycles was about 20,000-30,000 yuan, the joint venture brand Volkswagen was about 20,000 yuan, the profit of the Great Wall at that time reached about 4200 yuan, and the profit of the Great Wall bicycle in 2021 was about 5200 yuan, but the first quarter of this year was a lot of decline against the trend.
According to the first quarter financial report, it can also be learned that the sales expenses of Great Wall Motors were 1.051 billion yuan, down 8.09% year-on-year; the management expenses were 1.177 billion yuan, an increase of 77.51% year-on-year; and the research and development expenses were 1.324 billion yuan, an increase of 45.77% year-on-year. Although the supply of parts and components has encountered unprecedented difficulties, Great Wall continues to invest in research and development, which has caused a lot of burden on profitability.
At present, Great Wall Motors still mainly relies on the steady play of Haval SUVs, tank off-road, and pickup trucks, especially off-road SUVs and pickup trucks are newly opened market segments, maintaining a good competitive advantage, but the disadvantage of thin in the new energy market is also very obvious. Euler can not carry the banner of the Great Wall new energy for the time being, the salon is far from the water to quench the thirst, WEY is the lack of brand power is more weak, sales are few, so Great Wall Motors urgently need to break the new energy market.