On March 30, Great Wall Motor Company Limited (hereinafter referred to as "GWM"; stock code: 601633 for A-share and 2333 for H-share) issued the Annual Report 2020. In 2020, when the external environment is fraught with uncertainties, GWM's sales sustained a sound growth and hit a record high. As of December 31, 2020, GWM registered total revenue of RMB 103.308 billion, up 7.38% YoY, and achieved a net profit of RMB 5.362 billion, a jump of 18.36% from the previous year.
Over the last year, GWM promoted self-transformation with the concept of "user-centered" and accelerated its transformation into a "global mobility technology company". Empowered by new technology brand, category layout, and mechanism reform, GWM achieved growth in market sales and business performance against the trend, demonstrating the enterprise's development perseverance.
Brand Building by Category, with An Impressive Increase in Revenue and Net Profit
In 2020, GWM's sales were increased impressively. Its operating revenue throughout the year totaled RMB 103.308 billion, an increase of 7.38% YoY, and its net profit reached RMB 5.362 billion, up 18.36% over the last year. In the total revenue, the vehicle sales registered RMB 92.386 billion, with a growth of 7.11% YoY, and the revenue of parts and components and other products stood at RMB 10.922 billion, increased by 23.32% from the previous year. With brand premium enhanced constantly, the average retail price reached to RMB 93,000, increased by 3.1% over 2019.
Over the past year, GWM built its brand by category and launched a series of online celebrity models such as Haval Big Dog, ORA Good Cat, and Tank 300, driving an all-around explosive growth of the four major brands. In 2020, GWM sold 1,115,900 vehicles, an increase of 5.41% YoY. It was the fifth year in a row that the sales goal of over one million vehicles was achieved.
Among the four brands, Haval sold over 750,000 vehicles in 2020, winning No. 1 in SUV sales in China for 11 consecutive years; WEY became the first Chinese luxury SUV brand having cumulative sales of up to 400,000 vehicles; ORA contributed a sales volume of 56,000 vehicles with a year-on-year surge of 44.8%, sustaining its position in the Tier-I group of the new energy sector; GWM Pickup maintained its first place in domestic and export sales with an annual sales volume of 225,000 units, which occupied nearly 50% of the market.
In 2021, GWM will launch more new products and new categories to meet the new demands of each market segment. Since this year, Haval Jolion, GWM POER Passenger Pickup International Edition, Tank 300 Monet Limited Edition, and Haval H6 China-Chic Edition have been launched successively, forming new product potentials. In the future, the sales volume and performance of GWM will be further improved with the introduction of such powerful products as WEY Mocha and Haval Red Rabbit.
Adhering to Precise Input, with R&D Investment of RMB 5.15 Billion, Up 21.22% YoY
In terms of technology R&D, GWM always adheres to the philosophy of "precise input in pursuit of industry leadership" and continues to enhance the core strength of "GWM Technology". In 2020, GWM totally invested RMB 5.150 billion in R&D, with an increase of 21.22% YoY, sustaining a high level in the industry. By the end of 2020, GWM had an R&D team of more than 19,000 persons, which accounts for over 30% of the total number of employees of the Company.
Relying on the global R&D system of "seven countries and ten regions", GWM launched three major technology brands in 2020, i.e., "L.E.M.O.N.", "TANK" and "COFIS" and developed a technology ecology integrating autonomous driving, intelligent cabin, efficient fuel comsuption, and new energy, laying a solid foundation for future development.
With the advancement of automobile intelligence, chips play an increasingly important role in the automobile industry. At the beginning of 2021, GWM made a strategic investment in Beijing Horizon Robotics Technology R&D Co., Ltd., a leading auto smart chip startup in the industry, officially marching towards the chip industry. It also actively deployed new energy sectors and released a hydrogen energy strategy on March 29 with the ultimate goal of "building a sustainable and beautiful society by hydrogen energy".
User-centered Self-transformation Boosting High-quality Development
2020 witnessed major changes in the global automobile industry. GWM embraces the future challenges through self-transformation and continues to carry on organizational reform, mechanism innovation, innovative talents recruitment, and corporate culture upgrade, so as to help the enterprise produce fruits in many aspects.
With regard to organizational reform, GWM established an organizational structure of version 3.0, to achieve the transformation from B2B model (business to dealers) to B2C model (creation with and direct contact with users) via the mode of "small front-end, large mid-end, and strong back-end". By downsizing the organization, GWM created an organizational form of "an exclusive firm for a specific model and brand". With a view to digital transformation, GWM set up an enterprise digital center and a product digital center for the layout of "data operation management". GWM also strove to build a mechanism for benefit binding and fair sharing to promote the shift of employees from "workers" to "entrepreneurs" and "partners".
Adhering to the HR strategy of "not sticking to one pattern and letting everybody fully display his talents", GWM initiated the "Ten Thousand Talents Plan" and the "Global Talents Plan" in terms of innovative talents and pooled a large number of excellent talents from all over the world in the fields of science and technology such as automobile and Internet.
GWM also comprehensively upgraded its mission, vision, and core values, released a new corporate culture of "Rock the World with Our GIFT (Green Intelligent Future Technology), Anti-corruption Honesty Innovation Changes Sharing, Improving Little by Little Every Day", and promoted the elimination of the titles of "Directors and Presidents" internally to further create a more dynamic and innovative working atmosphere.
Overseas Revenue Increased by 20.82%, Accelerating the Global Layout
In 2020, GWM continued to accelerate its global layout, with a strong performance in overseas markets. In the past year, GWM's total operating revenue in overseas markets reached RMB 6.672 billion, with a growth of 20.82% YoY; overseas sales volume attained 68,900 units, increased by 5.37% from the previous year. The revenue in Russia, Saudi Arabia, and Australia markets was RMB 2.208 billion, RMB 1.084 billion, and RMB 605 million respectively, with a YoY increase of 53.95%, 50.49%, and 90.69% respectively.
Last year, GWM signed up its vehicle production base project in Jingmen, Hubei, put Taizhou Smart Factory into operation, and started the piling construction of the Spotlight Automotive Factory at home. On the overseas front, it acquired the Talegaon Factory in India and officially obtained the ownership of the Rayong Factory in Thailand, forming a more supportive global production system. At the same time, GWM continues to localize the industry chain and further improves its global sales network.
In 2021, GWM will also pursue the globalization strategy. Following the launch of the GWM brand for the Thailand market in February this year, GWM brought new energy products and innovative technologies, such as Haval H6 HEV and ORA Good Cat, to the 42nd Bangkok International Auto Show. GWM's Haval Subsidiary in Russia also continued to expand the sale scope of cars produced in Tula Factory and recently announced the establishment of export business with importers in Azerbaijan and Kazakhstan.
Looking into the future, GWM, from the new starting point of 10 million vehicles, will continue to target technological innovation and global development, expedite the progress towards the goal of a global mobility technology company, and seek greater development in the new round of scientific and technological revolution and industrial transformation.