China

Great Wall Motor Posts 5.5% Decrease in Net Profit for 1Q 2016

Summary:

  • Great Wall Motor (601633.SS/2333.HK) has recorded a 5.5% decrease in net profit for the first quarter of this year in its official financial reports to RMB 2.4 billion, as reported by Securities Times.
  • The company’s revenue increased 8% to RMB 20.88 billion.
  • EPS for the quarter was negative RMB 5.51.

Why It Matters:

  • The company explained that the decrease in net profit was primarily due to an increase in production procurement.
  • At the end of March, the company held cash of RMB 2.55 billion, down 30% from the end of 2015.