Great Wall Motor Company Limited: history, ownership, mission, how it works & makes money

A Brief History of Great Wall Motor Company Limited

Great Wall Motor Company Limited (GWMC), founded in 1984, has grown to become one of China's largest and most recognized automotive manufacturers. The company’s headquarters are located in Baoding, Hebei Province. Initially a manufacturer of small trucks, Great Wall transitioned into passenger vehicles, marking a strategic pivot in 1990.

In 2003, Great Wall launched its first self-developed SUV, the Great Wall Hover, which significantly boosted its profile in the automotive sector. By 2009, Great Wall became the first Chinese automotive company to be listed on the Hong Kong Stock Exchange, raising approximately HKD 5.4 billion.

By 2015, GWMC reached a production capacity of over 1 million vehicles per year, leading to it being recognized as the largest SUV manufacturer in China. The company’s commitment to research and development saw it invest around 4.5% of its annual revenue into this area, focusing on innovation in electric and smart vehicle technologies.

In 2020, Great Wall Motor reported annual revenue of approximately CNY 112.4 billion (around USD 17.2 billion). Its net profit for the same year was recorded at CNY 10.7 billion, reflecting a 8.1% increase year-over-year.

As of 2021, GWMC had a market capitalization of about CNY 245 billion. The company announced plans to expand its electric vehicle lineup by launching new models under the ORA brand, with sales targets projecting over 100,000 electric vehicles by 2022.

Great Wall's strategy includes forming partnerships, such as its collaboration with BMW to produce electric mini cars at a plant in Jiangsu. Additionally, Great Wall has announced intentions to open a manufacturing facility in Thailand, further solidifying its international expansion plans.

As of 2023, Great Wall's latest financial data indicated a revenue of CNY 120 billion for the first half of the year, showcasing a robust 15% growth compared to the previous year. The company has also set ambitious targets for its electric vehicle sales, aiming to produce and sell 300,000 electric vehicles by the end of 2023.

A Who Owns Great Wall Motor Company Limited

Great Wall Motor Company Limited, a major player in the automotive industry based in China, is publicly traded on the Shenzhen Stock Exchange under the ticker symbol 601633. As of October 2023, the largest shareholders include both institutional and individual investors.

In the fiscal year ending December 2022, Great Wall Motor's total revenue reached approximately RMB 136.8 billion (around USD 20.5 billion), showcasing a growth of 14.7% compared to the previous year. The net profit attributable to shareholders for the same period was about RMB 10.3 billion (around USD 1.54 billion), which indicates a year-on-year increase of 21.3%.

Great Wall Motor has expanded its global footprint, with exports reaching approximately 200,000 vehicles in 2022, representing a growth of 26% compared to 2021. The company's market capitalization stood at roughly USD 34.5 billion as of October 2023.

Ownership dynamics at Great Wall Motor reflect significant control by its founder and current chairman, Wei Jianjun, alongside other institutional investors. The large public float signifies a broad base of individual and institutional stakeholders, indicative of the company's robust performance and growth potential in the automotive sector.

Great Wall Motor Company Limited Mission Statement

Great Wall Motor Company Limited, established in 1984, is one of the largest and most recognized automotive manufacturers in China, specializing in SUVs and pickup trucks. The company’s mission statement emphasizes a commitment to providing high-quality vehicles that meet the diverse demands of its customers while fostering innovation and sustainability.

The core of Great Wall’s mission statement encompasses several key principles:

• To create value for customers through superior products and services.
• To enhance technological innovation and manufacturing excellence.
• To promote sustainability and responsible practices in the automotive industry.
• To build a strong and respected brand in the global market.

In 2022, Great Wall Motor reported a revenue of approximately RMB 136.4 billion, representing a year-on-year increase of 5.42%. The net profit attributable to shareholders for the same year stood at RMB 9.2 billion, with a profit margin of 6.73%.

Great Wall Motor’s focus on innovation is highlighted by its research and development (R&D) expenditures, which reached RMB 11.1 billion in 2022, accounting for approximately 8.14% of its total revenue.

In line with its mission, Great Wall has made significant strides in expanding its product line, with the launch of new models such as the Haval H6 and the Ora electric series. As of mid-2023, Great Wall had captured approximately 15% of the SUV market share in China, reinforcing its position as a leading player in the automotive sector.

Furthermore, Great Wall Motor has actively pursued international expansion, with operations extending to over 60 countries. The company aims to cultivate a global presence while adhering to its mission of delivering high-quality products and sustainable practices.

The company’s sustainability efforts include a commitment to achieving carbon neutrality by 2045, which aligns with global environmental goals and reflects its dedication to responsible manufacturing.

How Great Wall Motor Company Limited Works

Great Wall Motor Company Limited (GWM) is a leading Chinese automotive manufacturer, specializing in the production of SUVs and pickup trucks. Established in 1984 and headquartered in Baoding, Hebei, GWM has grown to become one of the largest independent automakers in China.

In 2022, Great Wall Motor reported total revenue of approximately RMB 116.57 billion (about USD 16.5 billion), representing a year-on-year increase of approximately 6.3%. The company produced around 1.27 million vehicles in the same year, with a focus on electrification and smart technology.

Revenue Breakdown

The revenue sources for GWM can be categorized as follows:

GWM's popular models include the Haval H6, Great Wall Pickup, and Ora series of electric vehicles. The Haval brand alone contributed significantly to GWM's sales, with the H6 being one of the best-selling SUVs in China for multiple consecutive years.

Research and Development

In order to stay competitive, GWM has invested heavily in research and development (R&D). In 2022, GWM allocated approximately RMB 7.2 billion to R&D, which accounts for about 6.2% of its total revenue. This focus on innovation supports the company's strategy to develop advanced technologies and introduce new models.

As of 2023, GWM has over 12,000 employees in R&D, with dedicated teams working on autonomous driving, smart connectivity, and electric vehicle technology.

Global Expansion

GWM has made strides in international markets, exporting to over 60 countries globally. Its overseas sales increased dramatically in recent years, accounting for around 10% of total sales in 2022. Significant markets include Russia, South America, and parts of Africa.

In 2021, GWM established a manufacturing facility in Tula, Russia, with an annual production capacity of 50,000 vehicles. This facility aims to cater to the rising demand in the Russian market.

Financial Metrics

Key financial performance metrics for GWM include:

GWM's strong financial position enables it to continue investing in new technologies and expanding its market presence. The company has maintained a steady level of profitability while managing its operational costs effectively.

Market Position and Future Outlook

As of early 2023, GWM holds a market share of approximately 7.3% in the Chinese automotive sector. The company aims to increase its presence in the electric vehicle segment, targeting sales of 1 million EVs by 2025. This ambitious goal aligns with China's push towards electrification and sustainability.

Overall, Great Wall Motor Company Limited operates through a multifaceted approach, balancing local production with global ambitions, and investing in innovation to capture future market opportunities.

How Great Wall Motor Company Limited Makes Money

Great Wall Motor Company Limited (GWMC), a leading automotive manufacturer in China, generates revenue through various streams, primarily focusing on the production and sale of vehicles. In 2022, GWMC reported a total revenue of RMB 122.4 billion, signifying a year-on-year growth of 11.7%.

Vehicle sales contribute significantly to GWMC's income. In 2022, the company sold approximately 1.49 million vehicles, comprising both passenger and commercial vehicles. The breakdown includes:

GWMC’s product lineup consists of several brands, including Haval, Ora, and Wey. Haval, the SUV-focused brand, is particularly successful, accounting for about 60% of total sales. In 2022, Haval managed to sell around 900,000 SUVs, reinforcing its position as a market leader in the SUV segment.

Export activities also play a role in Great Wall’s revenue model. As of 2022, the company exported approximately 170,000 vehicles, targeting markets in Europe, Australia, and South America. The revenue from international markets contributed roughly RMB 15 billion, which is around 12% of total sales.

Additionally, GWMC invests in research and development (R&D) to enhance its product lines and technology. In 2022, the R&D expenditure was approximately RMB 8 billion, aimed at innovating electric vehicles (EVs) and enhancing automotive technology. This investment is essential as the global shift toward EVs presents a significant opportunity. Great Wall plans to launch several new energy vehicles (NEVs) and targets to produce over 500,000 NEVs by 2025.

Great Wall Motor also generates income through vehicle financing services and after-sales services, including maintenance, repair, and parts sales. In 2022, the revenue from these services amounted to around RMB 18 billion, representing a growth of 8% compared to the previous year.

Furthermore, GWMC is strategically positioning itself in the autonomous driving space. By 2023, the company aims to integrate advanced driver-assistance systems (ADAS) in over 50% of its new models, expected to diversify its offering and attract a tech-savvy consumer base.

Overall, Great Wall Motor Company Limited's revenue generation is multifaceted, leveraging vehicle sales, international expansion, R&D investments, and expanded service offerings to ensure sustainable growth in a competitive automotive market.