On October 23, Great Wall Motor Company Limited (“GWM”, 2333.HK, 601633.CN) released its financial report for the third quarter of 2020. The report says that, from January to September 2020, GWM achieved total earnings of RMB 26.21 billion, up by 23.6% YoY and 11.5% MoM, including a net profit of RMB 1.44 billion attributable to the parent company, up by 2.9% YoY and a gross margin of 19%, up by 0.5% YoY, and registered a sales volume of 286,000 vehicles, up by 23.9% YoY. The revenue of GWM in the first three quarters totaled RMB 62.14 billion.
Thanks to the updated platform and product portfolio, upgraded brand marketing approaches and the launch of three technology brands, GWM took the lead in revenue and sales in the first three quarters and relished transformation soaring, with market value reaching RMB 200 billion amid the constant rise of stock price in A-share market.
Outstanding performance in brand and production under user-centered strategy
With product upgrading and marketing innovation, GWM registered high growth in sales, performance and market value for the first three quarters this year, which strongly highlights its user-centered concept and determination of transformation.
Based on the in-depth understanding on users’ demands on travelling in the new normal, GWM has developed a constellation of new products for market segments. In July 2020, GWM entered a new era for products, with the debut of various new models from four sub-brands in Beijing,
With the support of new models, the four sub-brands witnessed a substantial growth in sales year on year: HAVAL up by 8.5% (or 183,000 vehicles), WEY by 3% (or 24,000 vehicles), ORA by 179.9% and GWM Pickup by 93.2%, each of which is leading the submarket.
For product sales, over 10,000 3rd generation of HAVAL H6 were sold in the first month of launch, topping the monthly sales of SUV for 88 months; Nearly 10,000 POER were sold in each of five months, retaining the championship in the pickup market and boosting the sales of GWM Pickup to 20,000 for five months straight with market occupancy approaching 50% in the first three quarters.
Based on the sharp insight on users’ demands, GWM made bold innovation naming products, such as HAVAL Dagou(Big Dog in Chinese), WEY “Tank” 300 and ORA Mao(Cat in Chinese) which features a higher extent of visualization, personalization and consideration for marketing and enhancing users’ satisfaction. Meanwhile, GWM also invited Wong Cho Lam, Li Dan, Wang Han, Du Haitao, Sheng Mengchen, Hua Shao and other celebrities for streaming online. At Auto China 2020, GWM also launched several intelligent and cutting-edge products, giving birth to more imaginations for the future. In cross-border cooperation, GWM reached strategic cooperation with My People, My Homeland, where the star products were present and earned greater popularity.
Successful transformation and reform
Ushering in the 30th anniversary in July 2020, GWM had a retrospection rather than celebration, holding a profound debate on “Will GWM survive 2021?” based on the insight into the industry, and put forward a transformation objective of “a global mobility technology company” for self-reform. GWM made fruitful results on products and marketing, effectively boosting the growth in sales, performance and market value.
The organizational restructuring plays an important role in the reform. Guided by user-centered concept, GWM strives to realize “two connections” – connection of brand, business and R&D and connection of all combat units (“those who hear the gunfire make decisions”) for targeted user support and “one integration” – integration of auto, plant and distributor for the lifecycle management driven by two wheels, namely products and users.
In pursuit of the transformation, GWM made greater R&D investment in brand and product upgrading. From January through September, GWM spent RMB 1.9 billion in R&D, up by 28.5% YoY, including RMB 670 million from the third quarter, up by 21.3% YoY.
On July 20, GWM released three technology brands, with an aim to bring technological innovation to global users. The 3rd generation of HAVAL H6, HAVAL Dagou(“Big Dog” in Chinese) and WEY “Tank” 300 were developed on the brand-new technology platforms. In August, the first batch of “GWM’s technology experts” started in-depth communication with users, showing the great technological strength.
Facing the great historic opportunity of reform, GWM will adhere to the user-centered concept and constantly deepen reforms under the support of “new four modernizations” to stimulate corporate vitality, thereby enriching product portfolio and enhancing brand value in pursuit of a global mobility technology company as a beacon of domestic auto brand.