Great Wall Motor to use derivatives for stability despite profit dip

Great Wall Motor Company (GWM) reported unaudited net profit attributable to shareholders of CNY 6.34 bn for the first six months of 2025, a 10.21% decrease from the CNY 7.06 bn reported in the comparable period of 2024. Total assets increased by 2.02% to CNY 222.13 bn, with net assets attributable to shareholders rising 6.92% to CNY 84.45 bn. The company's sales revenue saw a slight increase of 0.99% to CNY 92.33 bn.

To mitigate foreign exchange volatility and strengthen financial resilience, GWM’s board of directors has approved the commencement of foreign exchange derivative transactions. These transactions, including forward foreign exchange contracts and currency swaps, are capped at CNY 200 bn in outstanding value and CNY 35 bn for margin deposits until the end of 2025. This strategic financial hedging is integrated with daily operational needs and aims to reduce financial risks from currency fluctuations without speculative intent.

Great Wall Motor Company also declared a cash dividend of CNY 0.45 per share for 2024, totaling CNY 3.85 bn, approved on June 18, 2025. This follows a CNY 0.30 per share dividend paid in 2024, reflecting consistent shareholder returns. The board confirmed that the 2023 Employee Stock Ownership Plan’s second lock-up period conditions were met as of August 14, 2025.