Great Wall Motors, a leading Chinese automobile manufacturer, has released its semi-annual performance forecast for 2023. The company expects a significant drop in net profit in the first half of the year compared to the same period last year.
According to the preliminary calculations by the financial department, Great Wall Motors estimates that the net profit attributable to shareholders of listed companies in the first half of 2023 will range from 1.15 billion to 1.55 billion yuan. This is similar to the net profit achieved in 2022. However, compared to the first half of 2022, the company predicts a decline of 4.05 billion to 4.45 billion yuan, representing a year-on-year decrease of 72.32% to 79.47%.
After deducting non-recurring gains and losses, the net profit attributable to shareholders of listed companies is expected to be between 600 million and 850 million yuan. This indicates a decrease of 1.21 billion to 1.46 billion yuan compared to the same period in 2022, reflecting a year-on-year decrease of 58.71% to 70.86%.
Great Wall Motors attributes the fluctuations in performance to several factors during the reporting period. The company has been focused on transforming its operations towards new energy and intelligence, which has resulted in adjustments to its product structure. Additionally, the company has increased its investment in brand and channel construction, particularly after the launch of new products in 2023. Furthermore, the decrease in exchange rate gains has also impacted the company’s profitability.
These performance forecasts indicate the challenges faced by Great Wall Motors as it undergoes a strategic transformation in response to changes in the automotive industry. The company’s investments in new energy and intelligent technologies, as well as its focus on strengthening its brand and distribution channels, demonstrate its commitment to adapting to the evolving market landscape. Moving forward, stakeholders will closely monitor the company’s efforts to navigate these changes and maintain profitability in a highly competitive industry.