Great Wall Motor's revenue exceeds 100 billion but net profit halves! Wei Jianjun begins a "roundabout strategy"

Great Wall Motor released its 2026 semi-annual report recently: first-half revenue surpassed 100 billion yuan for the first time, but net profit attributable to shareholders nearly halved; overseas sales overtook domestic sales for the first time, making international expansion the core growth engine.

According to the financial report, Great Wall sold a total of 575,800 new vehicles in the first half, up 1.22% year-on-year; revenue reached 102.101 billion yuan, up 10.58% year-on-year.

Among this, vehicle sales revenue hit 88.816 billion yuan, up 11.37% year-on-year, accounting for 87% of total revenue; the remaining 13.286 billion yuan came mainly from parts and other businesses.

A simple estimate based on vehicle sales revenue and volume puts Great Wall's average revenue per vehicle at approximately 154,000 yuan in the first half, up nearly 10% from the same period last year. The company's consolidated gross margin stood at 18.37%, essentially flat compared with 18.38% a year earlier.

However, net profit attributable to shareholders was 2.465 billion yuan, down sharply by 61.11% year-on-year, while non-GAAP net profit also fell 55.04%, showing a clear pattern of rising revenue without rising profit.

The official explanation for the sharp profit decline cites delayed recovery of overseas tax subsidy benefits combined with exchange rate fluctuations. Financial expenses swung significantly due to exchange rate effects—there was a large exchange gain in the same period last year, which turned into a loss this period, putting notable pressure on profits.

Sales structure underwent a historic shift: domestic sales in the first half totaled 286,700 units, down 22.53% year-on-year; overseas sales reached 289,000 units, up 5.46% year-on-year. Overseas sales exceeded domestic sales for the first time, filling the gap left by the domestic decline and contributing approximately 55% of operating revenue. Both major brands, Haval and Tank, achieved rapid growth overseas.

In the domestic stock market, competition in intelligent features has become intense, with advanced driver assistance becoming a key purchase consideration. In overseas markets, however, Great Wall's advantages in SUVs, off-road vehicles, and hybrid products can be fully leveraged. Yet going global is a double-edged sword: overseas channel development and local plant construction bring exchange rate exposure and sustained capital expenditure.

Notably, the company's net operating cash flow was 10.436 billion yuan, far exceeding net profit, and cash and cash equivalents at period-end stood at 27.588 billion yuan, maintaining a stable cash position.