The price war that has lasted almost throughout 2023 has made many new energy vehicle companies suffer, affecting not only sales volume but also revenue and profit. Now it's time to assess the results.
On the evening of January 23rd, GWMOTOR released its 2023 performance report. In the full year of 2023, GWMOTOR's operating income reached CNY 173.41 billion, a YoY increase of 26.26%; the net profit attributable to the company's shareholders was CNY 7.008 billion, a YoY decrease of 15.22%; the non-GAAP net profit was CNY 4.682 billion, a YoY increase of 4.58%.
In the fourth quarter of 2023, GWMOTOR achieved operating income of CNY 53.91 billion, a MoM increase of 8.8%; the net profit attributable to the company's shareholders was CNY 2.013 billion, a MoM decrease of 44.6%; the non-GAAP net profit was CNY 875 million, a MoM decrease of 71.4%.
Regarding the issue of GWMOTOR's net profit for the full year of 2023 being lower than the same period last year, as well as the significant decline in net profit in the fourth quarter, the company provided the following explanations to Zhitong App Research Institute:
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Decrease in net profit for the full year of 2023: This is mainly due to the impact of exchange rate gains in the same period of GWMOTOR. However, the non-GAAP net profit, which better reflects the company's main business performance, still reached CNY 4.682 billion, a YoY increase of 4.58%, indicating that GWMOTOR's main business is still improving.
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Decline in net profit for the fourth quarter of 2023: This is mainly due to the year-end bonus provision and does not reflect operational issues. GWMOTOR has a consistent practice of providing all year-end bonuses and incentives to its employees in the fourth quarter. This practice was also reflected in the fourth quarter of 2022, when the non-GAAP net profit decreased by more than 90% QoQ. The amount of year-end bonuses provisioned this time is estimated to be around CNY 2 billion. If this amount is added back, the non-GAAP net profit level will be basically flat with the third quarter.
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In 2023, GWMOTOR achieved matching growth in operating income and product sales volume, with the growth in operating income even slightly higher than the growth in sales volume. This achievement is particularly remarkable in the industry where price wars are prevalent.
Specifically, GWMOTOR sold a total of 1.2307 million vehicles in the full year of 2023, a YoY increase of 15.29%, with overseas sales reaching 316,000 vehicles, a YoY increase of 82.48%. In terms of brand breakdown, GWMOTOR's various brands performed well:
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Haval's annual sales reached 715,188 vehicles, a YoY increase of 16.00%, becoming the first Chinese SUV brand with global sales approaching 10 million. Among them, Haval's new energy vehicle sales reached 77,000 vehicles, a YoY increase of 650%.
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Tank's annual sales reached 163,000 vehicles, a YoY growth of 31.2%, leading the Chinese off-road SUV market for 36 consecutive months.
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Great Wall Pickup's annual sales reached 202,000 vehicles, a YoY growth of 8.46%, maintaining its position as the top-selling brand for 26 consecutive years, with a domestic market share of nearly 50%.
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The annual sales of the new energy brands WEY and ORA were 42,000 and 109,000 vehicles respectively, with a YoY growth of 14.35% and 4.35%.
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GWMOTOR's average revenue per vehicle reached CNY 140,900, an increase of CNY 12,300 compared to the same period last year. The average revenue per vehicle in Q4 2023 increased from CNY 132,000 in Q1 to CNY 147,000.
In response, GWMOTOR stated to Zhitong App that this is mainly due to the growth in sales of high-priced vehicle brands, which has driven the proportion of GWMOTOR's sales of vehicles priced above CNY 200,000 to increase by 3.1 percentage points to 18.34% for the year.
This indicates that GWMOTOR is actively entering the domestic mid-to-high-end automobile market.
At the same time, GWMOTOR has made significant progress in its electrification transformation. In 2023, the company focused on new energy vehicle models, launching new models under its brands ORA, Tank, and Haval Xilong. The annual sales of new energy vehicles reached 262,000 vehicles, a YoY growth of 98.74%, far exceeding the growth rate of traditional fuel vehicles.
GWMOTOR also expressed to Zhitong App its intention to continue increasing investment in new energy: &#34;The company's five major brands will accelerate the transformation towards intelligent new energy, and more than ten new energy vehicles will be launched this year. The group's battery and hydrogen energy businesses will also see significant development this year.&#34;
In 2023, facing the &#34;boom&#34; and &#34;chaos&#34; of the Chinese new energy vehicle market, GWMOTOR has demonstrated strong market response capabilities and successfully maintained stable sales growth. As we enter 2024, a year of great products for GWMOTOR, the company is expected to bring even greater surprises to the market.

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