In the first half of 2026, Great Wall Motor Company Limited (601633.SH, 02333.HK) saw its net profit suffer a significant decline despite a rise in revenue. The company's semi-annual report, released on August 25, revealed total operating revenue of 102.101 billion yuan, a year-on-year increase of 10.58%. However, net profit attributable to shareholders plunged 61.11% to 2.465 billion yuan.

Deducting non-recurring gains and losses, the net profit attributable to shareholders was 1.61 billion yuan, down 55.04% from the previous year. Basic earnings per share also fell sharply, dropping 60.81% year-on-year to 0.29 yuan per share.

Where the decline stems from

The company attributed the profit drop primarily to two external factors: the delayed recovery of subsidy benefits from overseas tax policies and the impact of currency fluctuations. Despite the profit setback, Great Wall Motor noted that its sales volume and revenue both grew during the reporting period, with overseas expansion and higher-value domestic models driving continued improvement in its global brand strength.

Sales breakdown and brand performance

In terms of sales volume, the financial report showed that Great Wall Motor sold a total of 575,800 vehicles in the first half of 2026, a modest increase of 1.22% year-on-year. Among these, pickup truck sales totaled 90,200 units, a decline of 3.71%; SUV sales reached 443,900 units, down 1.12%; and sedan and other vehicle types, primarily new energy vehicles, sold 41,700 units, a substantial surge of 58.8%.

The Haval brand remained the primary sales driver, achieving global sales of 327,700 units in the first half, with overseas sales reaching an impressive 205,400 units, up 45.04% year-on-year. The Tank brand also performed well, recording global sales of 90,200 units, with its domestic new energy vehicle penetration rate hitting 58.44%.

Margins and expenditure trends

The gross margin for the period stood at 18.37%, nearly unchanged from 18.38% in the same period last year. Selling expenses rose to 5.998 billion yuan, an increase of 19.11%, reflecting greater investment in global channel expansion and brand building, which raised the selling expense ratio by 0.42 percentage points. R&D spending grew to 4.568 billion yuan, up 7.74%.

Financial expenses swung dramatically due to exchange rate movements, reaching 280 million yuan compared to a negative 1.692 billion yuan in the prior-year period, making currency fluctuations a key factor in the profit decline.

Overseas market takes the lead

A notable highlight was the rapid growth in both overseas sales and revenue, which officially surpassed the domestic market to become the core engine of the company's performance. Great Wall Motor now sells its products in over 170 countries and regions, operating three full-process vehicle manufacturing bases in markets such as Thailand and Brazil, along with multiple KD plants in places like Ecuador and Pakistan. As of June 2026, its overseas sales network exceeded 1,600 outlets, with nearly 200 new stores added during the year.

For the January-to-June period, overseas sales reached 289,000 vehicles, a robust 45.46% increase year-on-year. Overseas revenue surged 56.83% to 56.288 billion yuan, accounting for 55.13% of total revenue. In contrast, domestic revenue fell 18.83% to 45.814 billion yuan, dropping to 44.87% of the overall figure.

Outlook and risk factors

In its report, Great Wall Motor flagged several risks, including uncertainties from rising international trade barriers, intensifying competition in the domestic auto market, and increasing industry homogenization. The company plans to counter these challenges through deeper localization efforts, sharper differentiation in product technology, and stronger brand and user community development. It also intends to focus on smart new energy vehicles, reinforce its off-road capabilities, and continue advancing its ecological overseas expansion strategy.