Great Wall Motor's performance roller coaster: after the net profit plummeted by 90% in the first quarter of last year, it soared 17 times in the first quarter of this year

The Paper

2024-04-24 20:54Posted on the official account of Shanghai The Paper

Great Wall Motors IC data map

Great Wall Motor's first-quarter net profit was like a roller coaster.

On April 24, Great Wall Motor Co., Ltd. (Great Wall Motor, 601633) released the first quarter financial report, showing that the operating income in the first quarter was 42.86 billion yuan, a year-on-year increase of 47.6%, the net profit was 3.228 billion yuan, a year-on-year increase of 1752.55%, and the basic earnings per share was 0.38 yuan, a year-on-year increase of 1800%.

For the sharp increase in net profit, the financial report said that it was mainly due to the growth of the company's sales scale and the optimization of sales structure during the reporting period, which drove the performance indicators such as operating income and net profit attributable to shareholders of listed companies to achieve a significant increase over the same period last year.

In response to the revenue growth, Great Wall Motor said that it was mainly due to the increase in vehicle sales and the increase in single vehicle revenue during the reporting period.

It is not difficult to find from the financial report for the first quarter of 2023 that the sharp increase in Great Wall Motor's net profit in the first quarter of this year is mainly based on last year's low base.

According to the financial report for the first quarter of 2023, Great Wall achieved revenue of 29.039 billion yuan, down 13.63% year-on-year, and net profit attributable to the parent company was 174 million yuan, down 89.34% year-on-year. Great Wall Motor explained that it was mainly due to the fact that the reporting period is still in the period of product structure adjustment, and based on the rhythm of new product launches in 2023, it will increase new energy brand building and R&D investment.

In addition, the decline in sales of Great Wall Motors and the price war in the auto market are also more important reasons for the sharp decline in its revenue and net profit. In the first quarter of 2023, Dongfeng Motor set off a vigorous "suicidal" price war, and car companies such as Great Wall were involved in the coefficient, according to the data released by the Passenger Association, the retail sales of passenger cars in the country in the first quarter of 2023 were only 4.261 million units, a year-on-year decrease of 13.4%, and the degree of recession is rare. In this context, in the first quarter of 2023, Great Wall Motor's sales were dismal, at 220,000 units, a year-on-year decrease of 22.41%.

Compared with the net profit of 1.6 billion yuan in the first quarter of 2022, the net profit in the first quarter of this year has doubled, and the growth rate is normal.

In terms of sales, according to the company's previous disclosure, in the first quarter of 2024, Great Wall Motors sold 275,300 new cars, a year-on-year increase of 25.11%. Among them, the sales volume of new energy vehicles was 59,200 units, a year-on-year increase of 112.82%, and the overseas sales volume reached 92,800 units, a year-on-year increase of 78.51%.

In 2023, Great Wall Motor's product structure will be significantly optimized, and the price of a single vehicle will increase. According to the financial report, in 2023, Great Wall Motor's sales of models with more than 200,000 yuan will reach 225,800 units, accounting for 18.36%, a year-on-year increase of 3.09 percentage points, a record high, and the average income of a single vehicle will be 141,400 yuan, an increase of 12,000 yuan year-on-year, a record high. However, its revenue increased but did not increase profits, and its net profit fell 15.06% to 7.022 billion yuan.

At the close of trading on April 24, Great Wall Motors rose 0.94% to 24.75 yuan per share.

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