(Text/Zhang Jiadong Editor/Zhang Guangkai)
On March 30, Great Wall Motor Co., Ltd. (hereinafter referred to as Great Wall Motor) officially released its 2022 financial report.
Financial report data shows that in 2022, Great Wall Motor's total operating income will be 137.34 billion yuan, a slight increase of 0.69% year-on-year; The net profit attributable to shareholders of the listed company was 8.266 billion yuan, a year-on-year increase of 22.9%.
Source: Great Wall Motor earnings report screenshot
In terms of gross profit, Great Wall Motor achieved a gross profit of 26.6 billion yuan in 2022, a year-on-year increase of 20.71%, and the company's gross profit margin for the whole year reached 19.37%, an increase of 3.21% over the same period of the previous year.
From the perspective of revenue structure, vehicle sales are still an important part of Great Wall Motor. In 2022, the company's vehicle sales revenue will reach 121.89 billion yuan, accounting for 88.75% of the total revenue.
Great Wall Motor also attributed the increase in profit to the success of the high-end construction of the brand. Last year, Great Wall Motor sold 1,061,700 units, and the proportion of sales of models above 200,000 yuan increased to 15.27%. The average selling price of bicycles reached 129,400 yuan, a year-on-year increase of 21.47%.
In addition, the penetration rate of Great Wall Motor's intelligent models reached 86.17% last year, which greatly increased the proportion of its R&D investment capitalization.
Source: Great Wall Motor earnings report screenshot
From the perspective of R&D, the total R&D investment in 2022 will reach 12.181 billion yuan, a year-on-year increase of 34.34%, accounting for 8.87% of revenue. This proportion is at the mainstream level among traditional automobile companies, but Great Wall's R&D investment capitalization accounts for 62.53%, which means that Great Wall Motor's pillar behind the high-end brand, the rapid introduction of technological achievements has become the key.
However, it is precisely because of this that Great Wall Motor does not seem to have time to stop and celebrate its past achievements.
If only from the sales side, Great Wall Motor's sales in 2022 are actually a downward trend, and the total sales of its five major brands fell by 16.66% year-on-year.
In addition, in the context of the price war in 2023, Great Wall Motor still needs a lot of R&D investment to be expected to move towards the new annual sales target of 1.6 million units.
In the financial report, Great Wall Motor mentioned that it will invest more than 100 billion yuan in the next five years in four major levels: product, marketing, market and research and development, thus demonstrating its determination to deepen its focus on intelligent new energy.
In 2022, Great Wall Motor's NEV sales totaled 103,000 units, accounting for only 9.7% of its total sales, while in 2023, the company has set a target for a NEV penetration rate of 40%. According to the annual sales target of 1.6 million units, Great Wall Motor's new energy sales this year will at least fivefold.
This is obviously not an easy task for Great Wall Motor, which is in a difficult situation of sales growth.
Latte DHT Source: Wei Pai
In this regard, in the field of new energy, Great Wall Motor has established a parallel development strategy of hybrid, pure electric and hydrogen energy, and has achieved comprehensive coverage of new energy technology.
According to the plan, Great Wall Motor will launch more than ten new energy models in 2023. These include Haval H-DOG, Weipai Blue Mountain DHT-PHEV and other products.
Li Ruifeng, chief growth officer of Great Wall Motor, previously revealed that at the end of March, Haval will launch B07, A07 two twin flagship models, this year plans to launch 7 Haval new energy products, including EV models and PHEV models, and the independent network of the Haval brand is also accelerating the construction, terminal dealers will have an independent dealer team as the main operation, Haval brand will support the main strategy of Great Wall Motor's transformation.
The emphasis on the Haval brand proves that Great Wall has changed its blind pursuit of brand upward thinking in the past.
Great Wall Hi4 technology Source: Great Wall
In addition to the introduction of new energy technology itself, in order to strengthen product competitiveness, Haval released a new generation of hybrid technology Hi4 at the New Energy Dry Goods Conference in early March, with the slogan of "two-wheel drive instead of four-wheel drive", setting off a new wave of electrification competition in the same class market.
In addition to the promotion of technology, Great Wall Motor has also reshaped its organizational structure. In December last year, Great Wall Motor announced that it would integrate the organizational structure of its brands, and Ora and Salon, Weipai and Tank will adopt a dual-brand operation model.
With the recent move of the salon brand and its first model, Mecha Long, into the Ora community, Great Wall Motor's organizational structure has basically been reorganized.
Fu Xiaokang, vice president of Great Wall Motor, said: "After the adjustment, ORA and Salon, Weipai and Tank will all adopt a dual-brand operation model, further concentrate superior resources, comprehensively improve operational efficiency and collaboration, better cope with the fiercer competition in 2023, and fight the three battles of globalization, high-end and new energy."
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