- In a preliminary earnings statement to the Shanghai Stock Exchange, Great Wall Motor (601633.SS/2333.HK) said it expects its net profit for the first half of 2017 to decrease 49.42% compared with the first half of 2016 to RMB 2.49 billion.
- Revenue is estimated at RMB 41.26 billion, down 1% on the same comparison basis.
- EPS for the first half is estimated to be RMB 0.273.
Why It Matters:
- Great Wall Motor explained that the decline in both net profit and revenue was mainly due to an increase in research costs and marketing expenses.
- The company recently announced the launch of a new product series, H6, and Great Wall Motors believes that the launch of new products will improve its performance in the latter half of the year.
- Earlier, Great Wall Motor posted a 18.42% decrease in net profit for the first quarter of 2017 to RMB 1.95 billion, and a 11.68% increase in revenue to RMB 23.32 billion.