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Great Wall Motor’s Strategic Shift: Revenue Climbs as Profits Dip Amid Heavy Investment

Chinese automaker Great Wall Motor has released its full-year financial results for 2025, presenting a narrative of strategic investment at the expense of short-term earnings. The company reported a significant divergence between its top-line growth and bottom-line performance, underscoring a deliberate pivot towards electrification and global market development.

Key Financial and Operational Metrics for 2025:
* Revenue: 222.79 billion RMB (an increase of 10.19%)
* Net Profit: 9.912 billion RMB (a decline of 21.71%)
* Total Vehicle Sales: 1.32 million units (up 7.33%)
* Export Volume: 506,100 units (an 11.68% gain)

Profitability Pressured by Forward-Looking Expenditure

Achieving record operational revenue of 222.79 billion RMB was overshadowed by a more than 21% drop in net profit to 9.912 billion RMB. Earnings per share stood at 1.16 RMB. Management attributes this contraction to a strategic capital allocation plan, with substantial funds directed towards establishing direct sales networks, bolstering marketing for core brands, and advancing next-generation powertrain research.

The company frames these expenditures as essential investments to secure its future. The focus is on accelerating the transition to become a leading New Energy Vehicle (NEV) provider and strengthening its competitive position within China’s fiercely contested automotive sector, even if it temporarily impacts earnings.

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Diverging Fortunes Across the Brand Portfolio

A breakdown of sales figures reveals a mixed performance among the company’s various brands. The Haval marque continues to be the group’s cornerstone, accounting for 57.3% of total sales volume. The Haval Dargo series emerged as a particular bright spot, posting an 18% sales increase and acting as a key growth driver in the SUV category.

WEY, the group’s premium electric vehicle brand, recorded the most explosive growth. Sales surged by 86.29% to 102,000 vehicles, fueled by the launch of new high-end models. In stark contrast, the ORA brand faced considerable headwinds, with sales plummeting by nearly 24%. The Tank brand of off-road vehicles maintained a stable position, selling over 232,000 units throughout the year.

International Expansion Fuels Ambitious 2026 Targets

Great Wall Motor’s global operations are becoming an increasingly vital engine for growth. The automaker is expanding its international footprint, now boasting over 1,400 sales channels worldwide and having exported more than 500,000 vehicles. In a recent move to deepen its global manufacturing presence, the company signed an agreement with Brazil’s Espírito Santo state just two weeks ago to evaluate a potential second production facility in the country.

Looking ahead to 2026, the management team has set ambitious goals. The company is targeting a 36% jump in sales to 1.8 million vehicles. A central objective is to raise the proportion of NEV sales to over 50% by the end of the next fiscal year. Success in reaching these targets is expected to hinge significantly on the performance of new models in international markets, which will need to offset softer domestic demand for brands like ORA.

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