On August 30, Great Wall Motor Co., Ltd. (GWM) (stock code: 601633.SH, 02333.HK) released its financial report for H1 2022. From January to June this year, the operating revenue of GWM hit CNY 62.134 billion, with a net profit of CNY 5.592 billion, a 58.47% YoY increase, and its gross profit was CNY 11.42 billion, a YoY increase of 13.48%, with a gross profit rate of 18.38%. GWM continued to increase its investment in core technologies in new energy vehicles and intelligent vehicles, with an R & D investment of CNY 5.81 billion, a 100.55% YoY growth, accounting for 9.35% of its operating income. During the reporting period, GWM's net profit increased significantly, thanks to its continuous implementation of product category focus strategy, active promotion of NEV and intelligent technologies, continuous optimization of product mix, brand premiumization effect, and continuous increase of the average price of a single vehicle.

Continuous enhancement of brand value and a 20.27% YoY growth of average vehicle price

In H1 2022, GWM focused on user-oriented strategy and continued to innovate its product categories. Its five major brands continuously launched hot new vehicles, and the sales proportion of premium vehicles, NEVs and intelligent vehicles continued to increase. From January to June, GWM's average price of a single vehicle was CNY 121,200, increased by 20.27% YoY.

The continuous improvement of the average price of a single vehicle is inseparable from the continuous efforts of the major brands of GWM. HAVAL has been highly recognized by authoritative organizations, with its brand value continuously improved. In the Global 500 2022 released by Brand Finance, an international authoritative brand value evaluation organization, HAVAL ranked 372nd with a brand value of USD 6.1 billion. At present, HAVAL sold more than 7.5 million vehicles worldwide. With the further comprehensive transformation of HAVAL to an NEV manufacturer, it will embark on the road of growing into one of the strongest competitors in the next decade.

In the era of new energy and intelligence, GWM follows the R & D concept of "precise investment and continuous pursuit of leadership", continuously investing in R & D and promoting the manufacturing of cutting-edge products.

In H1 2022, GWM continued its layout in core technology fields such as NEV and intelligent vehicles, with a total R & D investment of more than CNY 5.81 billion (capitalized + expended R & D investment), a 100.55% YoY increase, accounting for 9.35% of the operating revenue.

With continued increase of sales overseas, GWM drives forward global strategy

With the frequent launch of popular models and continuous breakthroughs in core technologies, GWM is also quickening its globalization process. From January to June this year, GWM sold more than 68,400 vehicles overseas, accounting for 13% of the total sales. The overseas business plays an increasingly important role in the overall business performance of GWM.

Since September 2021, GWM's WEY and ORA showed up in Europe with WEY Mocha PHEV (Coffee 01) and ORA FUNKY CAT. Since its release of strategy for European market, WEY has carried out many user experience activities in Europe, winning the trust and love of local users.

In August this year, GWM officially entered into a partnership with Emil Frey to jointly explore the European market, with new vehicles of WEY and ORA due to be delivered in the near future, which also means that GWM has made breakthroughs in its strategy for the European market.

In the ASEAN market, GWM actively lays out the new energy product matrix. GWM's Malaysia subsidiary has been officially established recently, symbolizing GWM's official entry into the Malaysian market and a step forward in the ASEAN market. GWM will continue its ASEAN NEV focus strategy in Malaysia, adhere to the user-centered principle and integrate local experience to quickly launch products covering a variety of highly intelligent vehicles powered by different new energies to meet users' multi-scenario and personalized needs.

This year, GWM TANK ushered in its first overseas sales. With TANK 300 launched and TANK 500 unveiled in Saudi Arabia, GWM has also achieved a milestone of cumulative overseas sales of 1 million vehicles. Taking the Middle East market as the starting point, GWM TANK has thoroughly analyzed the needs of the new generation of users in the Middle East, balancing the cross-country and urban scenarios and opening up new categories of high-end off-road SUVs. It also demonstrated the determination in implementing globalization strategy and continuously developing high-potential markets.

In the future, premiumization, globalization, intelligentization and new energy will still be the key drivers for the continuous growth of GWM's business performance. In H2 2022, amid such challenges as rising raw material prices, chip supply shortage and the start of a new round of scientific and technological revolution, GWM will speed up globalization, accelerate the layout of the chip industry, comprehensively drive forward the transformation into an NEV and intelligent vehicle manufacturer. Aside from that, it will focus on users to promote the continuous improvement of the product matrix and technological R & D strength, thereby accelerating the process of realizing the goal of transforming into a global intelligent technology company.