In the first half of this year, Great Wall Motors experienced an increase in revenue but a decrease in profit. The delayed recovery of subsidy benefits due to overseas tax policies and exchange rate fluctuations have had a negative impact on profits. A significant rise in sales expenses was also a key factor contributing to the profit decline, with a year-on-year increase of 962 million yuan, including a 365 million yuan surge in commission expenses, marking an almost 80% rise.

By brand, Haval, WEY, and Ora all saw an increase in sales volume during the first half of the year, while sales volumes for Great Wall pickups and the Tank brand declined. In terms of product categories, sales volumes for pickups and SUVs decreased, whereas sales of sedans and other vehicles (primarily new energy vehicles) increased.

Slowdown in Revenue Growth for Complete Vehicles; Decline in Pickup and SUV Sales

Interim Report Shows Revenue Growth but Profit Decline, with Net Profit Down by Over 3.8 Billion Yuan. From 2023 to 2025, Great Wall Motors' revenue steadily increased to 173.212 billion yuan, 202.194 billion yuan, and 222.824 billion yuan, respectively. However, the growth rate significantly slowed to 26.12%, 16.73%, and 10.2%, respectively. Net profit attributable to the parent company saw significant fluctuations, reaching 7.022 billion yuan, 12.66 billion yuan, and 9.865 billion yuan, with year-on-year changes of -15.06%, 80.3%, and -22.07%, respectively.

According to Duopingkuai Interpretation, in the first half of 2026, the company reported revenue of 102.101 billion yuan, a year-on-year increase of 10.58%. However, net profit attributable to the parent company and net profit excluding non-recurring items both significantly decreased to 2.465 billion yuan and 1.61 billion yuan, respectively, representing substantial year-on-year declines of 3.872 billion yuan and 1.971 billion yuan, with decline rates as high as 61.11% and 55.04%, respectively.

Further analysis reveals that quarterly revenues for the first half of the year were 45.109 billion yuan and 56.992 billion yuan, with year-on-year increases of 12.72% and 8.94%, respectively, indicating a slowdown in growth. Net profits attributable to the parent company were 945 million yuan and 1.519 billion yuan, respectively, showing significant year-on-year declines of 46.01% and 66.87%, respectively, with the decline rates widening further.

The revenue growth rate for complete vehicles continues to slow down. Great Wall Motors' revenue mainly comes from its complete vehicle business, which amounted to 153.279 billion yuan, 175.489 billion yuan, and 195.848 billion yuan from 2023 to 2025, respectively, showing a declining growth trend at 25.75%, 14.49%, and 11.6%, respectively. During the same period, the gross profit margin fluctuated significantly, reaching 18.38%, 19.47%, and 17.29%, respectively, with a year-on-year decline of 2.18 percentage points last year.

In the first half of this year, revenue from the complete vehicle business was 88.816 billion yuan, a year-on-year increase of 11.37%, with a further slowdown in growth. In terms of sales volume, a cumulative total of 583,895 units were sold during the reporting period, a slight year-on-year increase of 2.48%. Sales volumes for the Haval, WEY, and Ora brands all increased, reaching 327,290 units, 44,514 units, and 26,389 units, respectively, with year-on-year increases of 1.82%, 29.05%, and 89.74%, respectively. In contrast, sales volumes for Great Wall pickups and the Tank brand declined to 92,512 units and 92,653 units, respectively, with year-on-year decreases of 3.86% and 10.62%, respectively.

Outside of the automotive business, the performance of other products has varied over the past three years. Revenue from selling spare parts was 12.614 billion yuan, 12.839 billion yuan, and 13.666 billion yuan, respectively, with year-on-year changes of 57.52%, 2.78%, and 6.45%, respectively. The gross profit margin increased, reaching 23.46%, 27.04%, and 31.28%, respectively.

Revenue from molds and other items fluctuated, reaching 2.48 billion yuan, 8.154 billion yuan, and 7.97 billion yuan, respectively, with year-on-year changes of 9.8%, 213.36%, and -2.26%, respectively. The gross profit margin declined, reaching 16.34%, 9.4%, and 8.97%, respectively.

Revenue from providing labor services fluctuated, reaching 2.853 billion yuan, 3.131 billion yuan, and 2.472 billion yuan, respectively, with year-on-year changes of 11.22%, 9.74%, and -21.05%, respectively. The gross profit margins were 21.31%, 12.19%, and 13.5%, respectively.

In the first half of this year, revenue from selling spare parts, molds and other items, and providing labor services was 6.824 billion yuan, 3.945 billion yuan, and 1.132 billion yuan, respectively, with year-on-year changes of 11.2%, -3.21%, and 5.05%, respectively.

Decline in Pickup and SUV Sales. During the reporting period, the domestic automotive market exhibited differentiated characteristics such as "sluggish domestic demand and strong exports," with cumulative automobile production and sales reaching 14.993 million units and 15.017 million units, respectively, representing year-on-year decreases of 4% and 4.1%, respectively. Among them, domestic sales totaled 9.921 million units, a year-on-year decrease of 21.1%, while exports totaled 5.096 million units, a year-on-year increase of 65.3%.

By product type, Great Wall Motors saw increases in both automobile production and sales in the first half of the year, reaching 626,939 units and 575,764 units, respectively, with year-on-year increases of 8.25% and 1.22%, respectively. Domestic sales reached 286,748 units, a significant year-on-year decrease of 22.53%, while exports reached 289,016 units, a significant year-on-year increase of 45.46%.

Further analysis reveals that both pickup production and sales declined, with production reaching 92,478 units, a year-on-year decrease of 3.91%, and sales reaching 90,176 units, a year-on-year decrease of 3.71%. Domestic sales reached 56,014 units, a significant year-on-year decrease of 16.22%, while exports reached 34,162 units, a significant year-on-year increase of 27.5%.

SUV production increased, reaching 492,803 units, a year-on-year increase of 8.42%, while sales decreased to 443,917 units, a year-on-year decrease of 1.12%. Domestic sales reached 194,222 units, a significant year-on-year decrease of 31.66%, while exports reached 249,695 units, a significant year-on-year increase of 51.57%.

Sales of sedans and other vehicles (mainly new energy vehicles) increased in both production and sales, reaching 41,658 units and 41,671 units, respectively, with significant year-on-year increases of 46.77% and 58.8%, respectively. Domestic sales reached 36,512 units, a significant year-on-year increase of 91.31%, while exports reached 5,159 units, a significant year-on-year decrease of 27.92%.

Stock Price Plummets, Asset-Liability Ratio Rises to 62%

Sales Expenses Surge, Commissions Increase by Nearly 80%. In the first half of 2026, Great Wall Motors reported increased revenue but decreased profit. The company stated that this was primarily due to the delayed recovery of subsidy benefits from overseas tax policies (receiving 2.274 billion yuan in the same period last year) and the impact of exchange rate fluctuations. After hedging foreign exchange gains and losses with lock-in hedging products, the comprehensive foreign exchange loss for the period was approximately 266 million yuan (unaudited), representing a year-on-year decrease in foreign exchange gains of approximately 1.759 billion yuan (gains of 1.493 billion yuan in the same period last year).

In fact, the significant increase in sales expenses also adversely affected profits. Sales expenses were 5.998 billion yuan, a year-on-year increase of 962 million yuan, or 19.11%, far exceeding the revenue growth rate of 10.58%. The sales expense ratio was 5.87%, a year-on-year increase of 0.42 percentage points.

According to Duopingkuai Interpretation, advertising and media service fees were the main components of sales expenses, reaching 2.249 billion yuan in the interim report, a year-on-year increase of 252 million yuan, or 12.63%. Salaries and wages were 1.338 billion yuan, a year-on-year increase of 169 million yuan, or 14.49%. Commissions increased significantly, reaching 824 million yuan, a year-on-year increase of 365 million yuan, or 79.42%.

During the reporting period, Great Wall Motors built a global sales and service network. Domestically, the company continued to focus on the "direct sales + distribution" dual-channel model, accelerating the transition to a new model of "full-touchpoint direct user connection," increasing digital channel construction, and integrating online and offline marketing channels to achieve precise user reach, efficient conversion, and refined operations. Overseas, the company continuously improved its global market layout, focusing on covering core markets such as Eurasia, Australia, the Middle East, South America, ASEAN, and the EU, adding nearly 200 stores during the year. As of June 2026, the company had over 1,600 overseas sales channels.

The interim report's asset-liability ratio rose to 62%. From 2023 to 2025, Great Wall Motors' asset-liability ratio declined, reaching 65.96%, 63.64%, and 60.99%, respectively. In the first half of this year, it further rose to 62%. The current ratio and quick ratio at the end of the period were 1.03 times and 0.72 times, respectively, with both indicators declining compared to the beginning of the year.

As of the end of the first half of 2026, the company's monetary funds and trading financial assets were 30.641 billion yuan and 34.096 billion yuan, respectively, while short-term borrowings and non-current liabilities due within one year were 5.77 billion yuan and 6.675 billion yuan, respectively, along with 13.1453 million yuan in long-term borrowings. In other words, cash flow far exceeded the scale of interest-bearing liabilities. Further analysis reveals that liabilities were mainly concentrated in notes payable and accounts payable within current liabilities, reaching 41.713 billion yuan and 39.357 billion yuan, respectively.

Over the past three years, the company's financial expenses were -126 million yuan, 99 million yuan, and -1.97 billion yuan, respectively, with interest expenses of 947 million yuan, 892 million yuan, and 736 million yuan, respectively. In the first half of the year, financial expenses and interest expenses were 280 million yuan and 345 million yuan, respectively.

On the secondary market, Great Wall Motors' stock price reached a high of 33.34 yuan per share (forward-adjusted, similarly hereinafter) in September 2024 before experiencing a prolonged decline. It rebounded to 26.87 yuan per share in September 2025 but continued to decline thereafter, reaching a low of 14.67 yuan per share. As of the close on August 27, the stock price was 15.29 yuan per share, representing a decline of approximately 54% from the high, with a total market capitalization of 111.5 billion yuan and a TTM price-to-earnings ratio of 21.89 times.

(Duopingkuai Interpretation - Original Work, Unauthorized Reproduction Prohibited! PS: If there are any infringements or data errors in the manuscript, please contact us promptly for corrections.)