China

Great Wall Motor Posts 11.14% Increase in Net Profit for First Nine Months

Summary:

  • Great Wall Motor (2333.HK) has posted an 11.14% increase in net profit for the first nine months of 2015 to RMB 6.209 billion, reports Sohu.
  • The company recorded a 23.64% increase in revenue to RMB 52.6 billion.
  • EPS was RMB 2.0407 per share.

Why It Matters:

  • Great Wall Motor sold 586,700 automobiles during the first nine months, a 15.37% increase compared with the same period last year. Sales of SUVs increased 38% to 479,000, but sales of passenger vehicles decreased 49% to 32,900.
  • Great Wall Motor used to focus on the growing SUV market, and the company shifted more invetment from producing passenger cars to SUVs. However, competition in the Chinese SUV market intensified, and the company is now planning to re-balance its resource allocation. Also, the company’s plan to issue additional non-public shares met with difficulties, and the company’s share price fell significantly during the stock market crash.
  • As the Chinese government is sponsoring the sale of electric cars, Great Wall Motor is planning to allocate huge resources to the development of electric cars.