Profits at Great Wall Motor Halve Amid Auto Market Slump
Zhang Xia
DATE:  Aug 14 2017
/ SOURCE:  Yicai
Profits at Great Wall Motor Halve Amid Auto Market Slump Profits at Great Wall Motor Halve Amid Auto Market Slump

(Yicai Global) Aug. 14 -- Profits at Chinese carmaker Great Wall Motor Co. [SHA:601633, HKG:2333] almost halved in the first half as a result of market downturn and changes to internal business strategies, according to its latest financial report.

The Hebei-based firm's operating income fell 1 percent on the year to USD6.07 billion in the first six months, with net profit plummeting 49.4 percent to USD370 million, the semi-annual report shows.

A sluggish market is a key factor in the fall. Industry insiders consider the sector's current climate in China as the worst it has been in 10 years, driven by the expiry of a 50-percent cut on vehicle purchase tax.

Rising coal and steel prices have also hiked production costs and slashed profits.

The profit slump is also attributable to internal strategies, Great Wall said. It has increased its investment in research and development to make products more competitive, offered higher discounts on its existing products and ramped up online marketing efforts which have all dented the bottom line.

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Keywords:   GREAT WALL MOTOR,Net Profit