On March 29, Great Wall Motor Company Limited (stock code: 601633.SH, 02333.HK; hereinafter referred to as GWM) released the 2021 financial report. In 2021, GWM registered a gross revenue of RMB 136.4 billion, an increase of 32.04% year on year, and achieved a net profit of RMB 6.73 billion, an increase of 25.41% year-on-year. Net profit before equity incentive expense reduction was RMB 7.63 billion, an increase of 39.75% year-on-year; as of December 31, 2021, the total assets of GWM reached $175.41 billion, an increase of 13.89% compared with the end of 2020; the net cash flow from operating activities was RMB 35.32 billion, an increase of 581.61% year-on-year; the cash equivalents at the end of the period was RMB 27.91 billion, an increase of 105.33% year-on-year; the Company intended to distribute an annual final dividend of about RMB 650 million, and had paid a dividend of RMB 2.77 billion in the interim of 2021. The annual dividend was 3.42 billion yuan, with a dividend ratio of over 50.81%.

In 2021, GWM devoted itself to transformation and continuously explored potential growth. The market competitiveness and enterprise growth were improved stably, and various core financial indicators trended up, all of which implied a positive condition of the Company. In the new year, GWM will continue to focus on category innovation, optimize the product line-up persistently, promote global development firmly, and carry out the upgrading and implementation of technology on electrification and intelligence, so as to speed up the transformation of GWM into a "global intelligent technology company".

Focus on category innovation and increase in the market share of segments

In order to create a new era of "trendy brands and products" based on category innovation, in 2021, GWM continued to activate the category market to break up category barriers and to promote the establishment of TANK and the world debut of Saloon automobiles. GWM has launched several new products, such as HAVAL Chitu, WEY Mocha, WEY Macchiato DHT-PHEV, WEY Latte DHT, TANK 300 urban version, ORA GOODCAT GT, etc., which promoted GWM's market influence vigorously. In 2021, the sales of new vehicles exceeded 1.28 million, with a year-on-year increase of 14.79%, which provided a solid foundation for various financial indicators.

With the full release of rejuvenation, the market share of each brand segment of GWM continues to arise. Among them, in 2021, ORA sold 135,000 vehicles, with a year-on-year growth of 140%, retaining its position in the first group of the domestic new energy industry; TANK broke through the category barriers between urban SUVs and off-road SUVs, delivering 85,000 vehicles in 2021, which counted for more than 50% of the market share of the tough off-road vehicles in China; GWM Pickups maintained the championship in Pickup sales, ranking first in domestic and overseas export sales for 24 years consecutively. In 2021, there are 233,000 Pickups sold successfully, and the accumulated global sales exceeded 2 million.

ORA GOODCAT GT

The brand premium capacity continues to improve, with an average price of a single vehicle over RMB 106,000

Thanks to the empowerment of category innovation, the product line-up of GWM and the brand premium capacity have been continuously optimized. In 2021, the overall average price of a single vehicle exceeded RMB 106,000, with a year-on-year increase of 15.02%. From January to February this year, the sales proportion of vehicles over RMB 150,000 in GWM increased to 15.5%, and that of the intelligent vehicles rose to 88.1%. The products of high value and intelligence are becoming the key sales pillar of the Company to further boost the sales performance stably.

Mocha DHT-PHEV

Since 2022, a number of high-value models become available successively, which enhances GWM's brand value and improves enterprise growth. Among them, Mocha DHT-PHEV has explored a new category called  “intelligent electric vehicle free of anxieties”, established a new standard for luxury new energy SUVs, in the price range of 300,000 RMB, and made the first breakthrough of WEY brand to enter the high-end new energy market; The TANK 500, possessed with its robust advantages as a benchmark, has opened up the new category market with its brand proposition "Tough and Tenderness", broke the dominance of imported off-road SUVs, and redefined the standard for medium and large luxury business off-road SUVs.

TANK 500

Overseas revenue has reached RMB 16.16 billion, with a rising proportion of global business

In 2021, under the new development pattern of the dual circulation, GWM relied on the perfect globalization system to cultivate global development deeply and continuously. Nearly 140,000 vehicles were sold overseas, and the overseas revenue reached RMB 16.16 billion, with operating revenue of 11.85% and year-on-year growth of 142.24%. Global business is acounting more and more proportions for the enterprise performance.

The continuous growth of overseas performance is attributed to the fact that many models become available globally. In 2021, GWM's global models including 3rd Gen HAVAL H6, HAVAL JOLION, GWM POER landed in overseas markets, which continuously consolidated the global popularity of GWM vehicles.

HAVAL H6 HEV Launched in Thailand

Thanks to a complete overseas product lineup, in 2021, GWM continued to maintain its leading position in Australia, South Africa, Saudi Arabia, Chile, etc. by focusing on advantageous markets. At the same time, GWM actively developed new overseas markets, successively launched in Thailand, Egypt, Nepal, Brunei, Pakistan, and Laos, and continued to focus on high-potential markets such as Europe. GWM has won a reputation among overseas users by virtue of its new global products of intelligent technology. In addition, the global production layout of GWM was also further improved. The Rayong Plant in Thailand was officially put into production. The Ilasepolis Plant in Brazil was acquired successfully and relevant processes were finished in January this year.

GWM landed in European market

R&D investment has reached RMB 9.07 billion, enhancing technological innovation persistently

At present, the transformation of the automobile industry has been accelerated by the new round of global scientific and technological revolution and industrial transformation. In order to lead the new race, GWM has continued to deepen its efforts in the field of scientific and technological innovation. In 2021, GWM invested RMB 9.07 billion in R&D, with an year-on-year increase of 76.05%, accounting for 6.65% of the operating revenue, which provides strong technical support for product experience and upgrading. The proportion of models based on the three major technical brands goes up continuously, reaching 75.1% from January to February this year.

Latte DHT

In 2022, adhering to the R&D concept of "precise investment, pursuing industry leadership", GWM will accelerate the layout of electrification and intelligent technology and continuously consolidate the "GWM Technology". In the field of electrification, GWM will speed up its electrification progress, with Dayu Battery Technology applied to its new energy series models to improve the penetration rate of thermal runaway protection technology for power batteries; moreover, the cobalt-free batteries will achieve a larger share. GWM will also develop multiple technical routes such as high efficient ICE, hybrid power, and hydrogen energy, with 3.0T+9AT/9HAT super powertrain, L.E.M.O.N hybrid DHT, and hydrogen energy-related technologies available to facilitate low-carbon travel comprehensively.

3.0T+9AT/9HAT Super Powertrain

For the intelligence field, GWM will continue to deepen the intelligence level of its products on the basis of full IOV application on HAVAL, WEY, ORA, TANK, and GWM POER. The new electrical and electronic architecture of GWM, which is based on the central computing and regional electronic architecture, will be first launched in China, and the intelligent assisted driving computing platform IDC 3.0 will also be mounted on the intelligent assisted driving products released in 2022 to upgrade the experience of intelligent transportation.

The upscaling, globalization, intelligentization, and electrification are becoming crucial factors for the continuous growth of GWM's operating performance. In 2022, confronted by the price inflation of raw materials and supply shortage of chips in the automobile industry, GWM will take active measures to relieve the pressure on the supply chain, speed up the transformation into a "global intelligent technology company", and strive to achieve a new round of high-quality development with a healthier and more sustainable enterprise development model.