Great-Wall Reveals That 96.2% Of Fy20 Revenue Was Generated From Chinese Market

Overview of company’s profile:

Great Wall Motor Company Limited [002333:HK] is a Chinese based industrial company that focuses significantly in the production, sales and distribution of different kinds of vehicles. Some of the vehicles that are produced and marketed by the company are pick-up trucks and sport-utility vehicles (SUVs). The business of the company involves the researching, development and manufacturing of principal automotive parts and components for use in the assembly of pick-up trucks and SUVs. The company conducts its business activities within the Chinese domestic regions and overseas with huge exportation rate. Great Wall was formed and issued a business license in June 2001 while its headquarter is situated at Baoding, China. The executive leader of the company is Jianjun Wei with up to 63,174 other employees currently working for the company.

Overview of previous annual financial performances:

The previous annual financial reports of the company for the past fifteen years show some inconsistent, unstable and insignificant improvements in most of the key financial indicators of each of the reports. The inconsistent nature of the financial performance are vastly caused by the (1) steady growth in the number of companies manufacturing and marketing cars in China, (2) reduction in the production rate of the company and (3) the development of more advances cars by the contenders in the car manufacturing and marketing business. The management of the company released its financial performance report for the Fy20 period highlighting significant growth in most of the major financial indicators. According to the financial data that was posted by reuters, some of the major financial indicators such as sales revenue, net profit and debt rate performed as follows;

Sales revenue: According to the financial data that was released in reuters platform, the company’s total revenue generated from business significantly improved to CNY103.30 billion which shows that it increased by 6.86% year-on-year hen compared and analyzed from the CNY96.21 billion that was reported in the previous year’s financial result.

Net profit: The financial report of the Fy20 period as been showcased by reuters reports that the net profit during that period increased significantly to CNY14.99 billion which shows that it increased by 9.53% year-on-year hen compared and analyzed from the CNY13.56 billion that was reported in the previous year’s financial result. The steady of expenses incurred during business activities affects or limits the amount been realized as profit by the company.

Debt rate: The financial result of the period in quote showed that the total debt accumulated during that period increased significantly to CNY38.74 billion which shows that it increased by 54.41% year-on-year hen compared and analyzed from the CNY17.66 billion that was reported in the previous year’s financial result.

Market performances:

The financial result of the Fy20 period also highlighted different performances from several business areas or markets which proved that the Chinese market generated about 96.2% quota of the total revenue generated during that period, leaving others market to generated the remaining 3.98% quota of the revenue.

Sources:

https://www.marketscreener.com/quote/stock/GREAT-WALL-MOTOR-COMPANY-6170968/company/

https://www.bloomberg.com/profile/company/2333:HK

https://www.reuters.com/companies/2333.HK/financials/income-statement-annual

https://www.reuters.com/companies/2333.HK/financials/balance-sheet-annual