Great Wall Motor (SHA:601633, HKG:2333) recorded a 61% year-over-year drop in attributable net profit in the first half, even as revenue rose 11% from a year earlier on strong overseas sales.
Attributable profit more than halved to 2.46 billion yuan from 6.34 billion yuan, with earnings per share shrinking to 0.29 yuan from 0.74 yuan, according to an aftermarket filing on Tuesday.
The profit drop came despite revenue rising to 102.1 billion yuan from 92.3 billion yuan as the jump in overseas revenue offset the decline at home.
The Chinese carmaker sold a record 289,016 vehicles overseas, up 45.5% year over year. This offset the 22.5% drop in domestic sales volume.
"Overseas operations have increasingly become a core engine driving sales growth," GWM said.
Export growth was led by the SUV and pickup truck models, while exports of sedan and other new energy vehicle models tumbled 28%. At home, sedan and NEVs led the growth, offsetting the sharp drop in pickup and SUV sales.
Despite reporting increased vehicle sales and revenue, GWM's bottom line was weighed down by financial expenses, which switched to a cost of 280 million yuan from a gain of 1.69 billion yuan a year earlier.
"The change in financial expenses was mainly due to exchange rate fluctuations," GWM said.
Income tax expenses also ballooned 22% to 816.5 million yuan, which the company linked to the deferred recovery of income from overseas tax policy subsidies, as well as exchange rate fluctuations
Looking ahead, GWM said it will step up efforts in intelligent new energy and bolster its off-road offerings.
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