The rising cost of raw materials dragged down its performance.
Great Wall Motor Intelligent cockpit
Chinese automaker Great Wall Motor has released its financial reports for the 2021 fiscal year.
The company generated CNY 136.4 billion in revenue, up 32.04% year on year (YoY). The net profit attributable to shareholders of listed companies reached CNY 6.73 billion, a record high in five years, increasing 25.43% YoY. However, the net profit after deducting non-recurring gains and losses was CNY 4.20 billion, up 9.55% YoY but down from CNY 4.30 billion in 2017.
Of GWM’s total revenue, CNY 121.3 billion came from selling cars and CNY 15 billion was generated by the sale of components and others, respectively.
Regarding expenses, the company spent CNY 5.19 billion on sales, up 26.5% YoY, CNY 4.04 billion on management, a YoY increase of 58.39%, CNY 4.49 billion on research and development, up 46.36% from the same period the previous year. Besides, the company received CNY 448 million in interest.
In 2021, GWM sold 1.28 million vehicles, up 14.79% YoY. Of all the brands, ORA sold 135,000 units, up 140% YoY. TANK delivered 85,000 cars and 233,000 pickup trucks. In addition, GWM's oversea sales reached 139,900 models, with a YoY growth of 102.98%.
Despite the stellar growth, GMW still missed its target of selling 1.48 million vehicles in 2021.
Thanks to the continuous improvement of vehicle sales, GMW saw a gross profit of CNY 22.04 billion, rising 24% YoY. The gross margin was 16.16%, down 1.05 percentage points from 2020. The company explained that this was due to the new accounting policy.
According to media report, the company faces four challenges this year. First, the global political and economic tensions jeopardizes China's economy recovery. Secondly, the rising raw material prices squeeze enterprises' profits. Third, the electrification and intelligentization revolution in the auto sector requires carmakers to speed up transformation. Finally, the market competition is getting fierce.