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Investing.com -- Great Wall Motor shares gained 1% after the Chinese automaker reported a 19% year-over-year increase in second quarter earnings, supported by higher sales volumes and improved product mix.
The company posted earnings of 4.6 billion yuan ($635 million) for the second quarter, representing a substantial 162% increase from the previous quarter. Revenue climbed to 52 billion yuan, up 8% YoY and 31% quarter-over-quarter, driven by a 22% sequential increase in sales volume.
Great Wall Motor's gross profit margin improved to 18.8% in the second quarter, a 1.0 percentage point increase from the first quarter. This margin expansion likely resulted from a more favorable product mix and economies of scale, particularly with the Tank brand accounting for 20% of sales compared to 16% in the previous quarter.
The company also reported a significant boost in other operating income, which reached 2.6 billion yuan in the second quarter compared to 0.4 billion yuan in the first quarter. This increase was primarily attributed to deferred tax rebates related to the company's Russian sales operations.
The quarterly results aligned with Great Wall Motor's preliminary earnings announcement, confirming the company's continued growth trajectory in China's competitive automotive market.
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