#Headline Creation Challenge#Throughout 2022, the rapid development of new energy vehicles can be described as the absolute outlet of the entire market, just when we are all sighing at the market outlet, Great Wall Motor's financial report announcement is a little surprising, in such a good environment Great Wall Motor's new energy vehicle sales not only did not rise but also declined, many people are surprised, what happened to Great Wall Motor?
1. Great Wall Motor's sales of new energy vehicles fell by nearly 14%
According to surging news reports, Great Wall Motor's sales declined, but the gross profit margin increased by more than 3 percentage points. According to the 2022 financial report released by Great Wall Motor Co., Ltd., Great Wall Motor achieved operating income of 137.34 billion yuan in 2022, a slight increase of 0.69% year-on-year; net profit was 8.266 billion yuan, a year-on-year increase of 22.9%; Basic earnings per share were 0.91 yuan; the company intends to pay a dividend of 0.3 yuan per share (including tax).
For the increase in net profit, Great Wall Motor said that it was mainly due to the increase in the profitability of its models due to the improvement of its product strength, in addition, the increase in exchange rate income also increased the level of net profit. According to the financial report, Great Wall Motor's financial expenses in 2022 expanded from -448 million yuan in 2021 to -2.488 billion yuan due to the increase in exchange rate benefits.
In 2022, Great Wall Motor's production and sales reached 1,111,600 units and 1,061,700 units, down 13.94% and 17.11% respectively. The financial report shows that Great Wall has still not achieved a turnaround in the transformation of new energy. In terms of new energy business, Great Wall Motor's new energy vehicle sales in 2022 will be 119,900 units, a further decline of 13.79% year-on-year. In 2022, its revenue from new energy vehicles will be CNY 14.695 billion, of which subsidies will be CNY 1.075 billion, accounting for 7.32%.
Great Wall Motor's overseas sales in 2022 were 172,200 units, a year-on-year increase of 23.09%, a record high.
Second, why is Great Wall Motor bad under the tide of new energy?
To be honest, seeing Great Wall Motor's financial report, people actually feel a little strange, on the one hand, Great Wall Motor's net profit growth is still good, but, on the other hand, Great Wall Motor's sales are not optimistic, how should we see Great Wall Motor's performance?
First of all, Great Wall Motor's earnings report is still good. We carefully look at Great Wall Motor's financial report, simply look at the financial report, in fact, Great Wall Motor's financial indicators are not bad, although the revenue is only a slight increase, but the overall market performance is still very good, net profit of 8.266 billion yuan, a year-on-year increase of 22.9%, which represents that Great Wall Motor's high-end strategy in recent years still has a certain improvement, coupled with the advantage of exchange rate, which gives Great Wall Motor's financial fundamentals or maintains a certain degree of advantage, which is a very difficult thing for Great Wall Motor.
Secondly, Great Wall Motor's sales are a little unflattering. Careful analysis, why this situation occurs, it should be said that the reasons are in the following aspects:
First, the market competition is fierce. With the continuous development of the new energy vehicle market, more and more automobile companies have begun to get involved in this field, and the market competition is becoming increasingly fierce. In addition to traditional automobile companies, there are many emerging new energy vehicle brands, such as Tesla, Xpeng Motors, NIO, etc., and their product technology and brand influence cannot be underestimated. In such a market environment, Great Wall Motor's advantages in new energy vehicles are very limited.
Second, the competitiveness of products is insufficient. Although Great Wall Motor's new energy vehicle product line is expanding, its product competitiveness is insufficient. Compared with other new energy vehicle brands, Great Wall Motor's new energy vehicles still have a lot of room for improvement in terms of power performance, cruising range and intelligence. In the era of fuel vehicles, Great Wall Motor relies on its own cost-effectiveness, but in the era of new energy vehicles, the advantages of Great Wall Motors are unsustainable.
Third, the brand influence is insufficient. Great Wall Motor's brand influence in the traditional automobile market is large, but its brand influence in the new energy vehicle market is relatively weak. In the new energy vehicle market, consumers pay more attention to factors such as the brand's technological content and degree of intelligence. Great Wall Motor's performance in these aspects is not good enough, which also affects its sales performance in the new energy vehicle market.
Third, what should Great Wall Motor do? For Great Wall Motor, although the performance is somewhat unsatisfactory, it is not completely without opportunities, and it can start from the following aspects: First, it is necessary to strengthen technology research and development and improve the technical level of new energy vehicles. Second, it is necessary to improve brand awareness and increase consumer trust in Great Wall Motor. Finally, it is necessary to strengthen marketing and launch more attractive new energy vehicle products to attract more consumers.