Research on optimizing the profitability of Great Wall Motor
Yidi Zhang
University of Shanghai for Engineering Science
Chao Liang
University of Shanghai for Engineering Science
DOI: https://doi.org/10.59429/bam.v8i2.14524
Keywords: Great Wall Motor; profitability; financial ratio analysis; new energy vehicles
Abstract
Since 2020, the growth of the domestic auto market has slowed, the price war in the industry has intensified, and the cost of raw materials has risen. The new energy transition has brought development opportunities to traditional automakers while also continuously increasing operating pressure. Great Wall Motor, the leading Chinese automaker, has accelerated its layout of new energy products in recent years, but has faced prominent profit fluctuations due to supply chain risks and high R&D investment. Based on the company's financial reports from 2020 to 2024, this paper uses financial ratio analysis to calculate core profit indicators such as gross profit margin, net profit margin, and return on total assets, and sorts out existing problems restricting profits such as product structure imbalance and outsourcing procurement of core components such as power batteries; Optimization measures are proposed from three dimensions: Supply chain cost control, high-end new energy vehicle development, and idle asset revitalization, providing practical references for domestic traditional automakers to improve their profit levels during the industry transformation stage.
References
[1] Wu, Y. (2024). Analysis of Corporate Profitability Issues and Improvement Strategies. Chinese and Foreign Food Industry, 13, 126–128.
[2] Zhang, Z. S., & Zhu, X. Q. (2022). Innovation capability, IPO and enterprise profitability of Chinese high-tech firms. Macroeconomic Research, 2, 147–154.
[3] Gao, F. (2024). Profitability analysis and optimization suggestions of Jianghuai Automobile. Financial Management Research, 11, 17–25.
[4] Kang, S. J. (2024). Profit quality research of listed manufacturing enterprises in Henan. Sales and Marketing, 9, 81–83.