Great Wall Motors' sales increased significantly last year, but net profit decreased by 22.07%. What does President Mu Feng think?

Operator Finance Network Li Guangyan / Text

Recently, Great Wall Motors officially disclosed its 2025 performance report. While the company’s revenue hit a new high, its net profit fell by quite a bit, which has attracted attention.

According to the financial report, in 2025, Great Wall Motors’ operating revenue was 222.824 billion yuan, up 10.20% year on year, setting a record high; net profit attributable to shareholders of listed companies was 9.865 billion yuan, down 22.07% year on year; and net profit attributable to the parent after deducting non-recurring gains and losses was 6.059 billion yuan, down 37.50% year on year.

At the same time, Great Wall Motors’ sales performance was also very strong. In 2025, it sold a cumulative 1.3237 million vehicles, up 7.33% year on year. The average guidance price per vehicle reached 201,300 yuan, up 11,700 yuan compared with 2024.

So why did both revenue and sales volume grow, and the per-vehicle price also increased—meaning it sold more and sold at higher prices—yet Great Wall Motors earned less?

Regarding the reasons for the decline in net profit, Great Wall Motors said in the financial report that the company is accelerating the buildout of a new channel model connecting directly with users, and increasing investment in promotion and brand enhancement for new models and new technologies; the increase in investment led to a decline in net profit. It is understood that in 2025, Great Wall Motors’ selling expenses were 11.27 billion yuan, up 43.9% year on year, and this growth rate is much higher than that of automakers such as BYD and Geely.

In addition to selling expenses, Great Wall Motors also spends a lot on R&D. According to the financial report, in 2025, Great Wall Motors’ R&D expenses were 10.432 billion yuan, up 12.13% year on year.

According to the previous plan, in 2026, Great Wall Motors’ sales volume performance target will be no less than 1.8 million vehicles (accounting for 50% of the performance indicator weight), and the net profit performance target will be no less than 10 billion yuan (accounting for 50% of the performance indicator weight). This means that this year, Great Wall Motors’ sales growth rate needs to be above 36%, while net profit must stop declining and rebound to achieve growth.

Currently, Mu Feng serves as President of Great Wall Motors. Last year, he earned 6.4608 million yuan, the highest remuneration among the executive team. It remains to be seen how he views the company’s performance last year.

(Editor: Li Guangyan)

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