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recently, major listed companies have successively announced their financial reports for the first half of 2024. behind each group of seemingly cold numbers, there are hidden joys and sorrows, as well as the rise and fall of each car company.

some companies have achieved counter-cyclical growth thanks to new models and technological innovations, while others are struggling amid weak markets and supply chain pressures.

especially in the new energy sector, several leading companies continue to lead in sales and market share, demonstrating strong competitiveness. at the same time, some traditional fuel vehicle companies are facing transformation difficulties, and their market share is gradually eroded.

among the 14 listed automobile companies counted by kung fu auto, the net profits of seven companies achieved year-on-year growth. among them, geely, great wall and seres achieved a three-digit increase, demonstrating strong counter-cyclical vitality.

however, this also means that the other half of the automakers are still struggling in the quagmire of losses.

by looking at their operating conditions in the first half of the year, we may be able to get a glimpse of the "key to success or failure" here.

(1) what has caused the three automakers’ profits to surge?

byd, which sold 1.6071 million vehicles in the first half of this year, has unsurprisingly become the most profitable car company in china.

although saic group still ranks first in domestic sales with 2.11 million vehicles sold, its net profit and gross profit margin are obviously lower than byd.

byd's 20% gross profit margin has not only surpassed tesla, but also has few rivals in the domestic market.

however, byd obviously cannot take it lightly. after all, with the strong support of huawei, seres's gross profit margin in the first half of this year has reached an astonishing 25%, making it the listed automaker with the highest gross profit margin in china.

according to the first half financial report of seres, the company's operating costs in the first half of the year were approximately 48.8 billion yuan, gross profit was 16.2 billion yuan, and the comprehensive gross profit margin was 25%, which is undoubtedly a huge increase compared with previous years.

the continued hot sales of the question world series is obviously the key.zhang xinghai, chairman (founder) of seres group, said: “after the launch of the m9, our prices kept rising, and we received more and more orders without lowering the price. many cars are now lowering their prices to increase sales, but even if they are lowered, there is still no volume. so, we ultimately want to win over the brand, because only a brand can bring value.”

in addition to seres, you may not know that great wall motor's gross profit margin also surpassed byd in the first half of this year.

great wall motors' financial report for the first half of 2024 showed that its net profit not only increased by 419.99% year-on-year to 7.079 billion, but also its gross profit margin reached 20.74%., up 3.89% year-on-year, reaching the highest point since mid-2017.

regarding the substantial increase in gross profit margin, great wall motors said that this was mainly due to the growth in vehicle sales and the increase in the proportion of overseas and mid-to-high-end product sales, which led to an increase in per-vehicle revenue. in addition, great wall motors' product structure adjustment is also an important factor in its gross profit margin increase.

although it seems to the outside world that great wall's overall sales are declining, in fact, in the first half of this year, the three suv and off-road-oriented brands of tank, haval and wei all achieved growth. the revenue per vehicle in the first half of the year increased by 30,000 yuan year-on-year to 164,800 yuan.

in kungfu auto's view, another reason for great wall's huge profit growth in the first half of this year should be its strong growth momentum overseas.

its financial report shows that its cash flow in the first half of the year soared from -2.436 billion in the same period last year to 9.41 billion, a surge of more than 10 billion, which is very gratifying.

in response to this, great wall said in its financial report, "this is mainly due to the increase in cash received due to the growth in overseas sales, and the increase in bills due for collection due due due to the domestic sales collection cycle, which led to an increase in cash received from the sale of goods."

in the first half of this year, great wall's overseas sales accounted for 36% of the total. i believe that the growth momentum will be stronger in the second half of the year, thereby driving the company's overall profit increase. it seems that the overseas market has now become the core of great wall's profit.

another company that performed well like great wall motors was geely, which not only achieved revenue of over 100 billion yuan for the first time in the first half of the year, but also saw its profit attributable to shareholders reach 10.6 billion yuan, up 574.7% year-on-year.

in addition to product structure optimization, accelerated overseas expansion and a series of cost reduction and efficiency improvement, what makes geely even more optimistic is that its other business revenues, such as its three-electric business, technology licensing and r&d service revenues, have increased to 19.825 billion yuan.

it is conceivable that in addition to selling cars, technology output has become a major source of profit growth for this automaker, and it is likely to continue to expand in the future.

(2) everyone has their own way to survive a loss

in the first half of this year, dongfeng, gac and ideal all faced a difficult situation where their profits were almost cut in half.

take ideal as an example. the main reason for the sharp decline in net profit in the first half of the year is that, on the one hand, although the launch of ideal l6 maintained sales growth, the low profit of this model resulted in increased revenue but no increased profit;

on the other hand, the sharp increase in sales, general and administrative expenses was also a key factor leading to the decline in ideal's profits in the first half of the year.

in general, after the failed listing of mega, whether this new energy vehicle company, which was originally profit-oriented, can maintain its 20% gross profit margin in the second half of the year will continue to test its operational capabilities.

the decline in profits of gac and dongfeng is undoubtedly due to the erosion of japanese market share in china. without the contribution of the "profit cow" of japanese joint ventures, these two companies must find a more accurate positioning for their own brands in the increasingly fierce market competition in order to successfully break through.

in june, gu huinan, general manager of gac aion, revealed that gac aion will add plug-in hybrid and range-extended models, and plans to launch them next year. this shows that gac is actively adjusting its product structure to cope with changes in market demand and fierce competition.

at the same time, dongfeng is also stepping up its strategy adjustment. faced with the shrinking market share of japanese brands in china, dongfeng has to accelerate the development of its own brands, especially in the fields of intelligence and electrification. although dongfeng's lantu brand started late, it has gradually gained market recognition.

among the above-mentioned 14 automakers, xpeng, leapmotor and baic bluepark are the three with the largest losses at present.

however, although they are all "loss-making", the progress of "loss reduction" of these three companies is different.

thanks to the significant increase in delivery volume, revenue and gross profit margin, xpeng has significantly reduced its losses by 48.41% in the first half of this year.

gu hongdi, honorary vice chairman and co-president of xpeng motors, said that with the realization of technological cost reduction and technology monetization income from strategic cooperation with volkswagen, xpeng's gross profit margin in the second quarter of 2024 will further increase to 14.0%, which has shown promising development prospects.

with the good sales momentum of the recently launched mona m03, i believe that xiaopeng's performance will improve significantly in the second half of the year.

among the new players, apart from ideal, there are few car companies that can actually achieve positive profits. for example, leapmotor, which successfully turned its gross profit margin to 1.1% in the first half of the year thanks to the scale effect formed by increased sales, still lost more than 2.2 billion yuan in the first half of the year.

baic blue valley, which has the same "loss scale", can only rely on continued transfusions from its parent company and has introduced strategic investors to maintain its operations.

whether baic bluepark can replicate seres’ “turnaround myth” by relying on its cooperation with huawei’s xiangjie is still full of uncertainties.

(3) kung fu clap

in the first half of 2024, many automakers are still facing profitability challenges amid fierce market competition. for most companies, the second half of the year may become a critical "lifeline".

as charles darwin said, “it is not the strongest or the most intelligent of the species that survives, but the one most adaptable to change.”

in this rapidly changing market, automakers not only have to cope with technological innovation and changes in consumer demand, but also have to find new growth drivers against the backdrop of global supply chain fluctuations and policy adjustments.

although some automakers have seen hope through technological innovation and strategic cooperation, such as enhancing their competitiveness through intelligent upgrades, expanding the new energy market, or in-depth cooperation with technology giants, it is still uncertain whether these initiatives can truly translate into sustained market share and profit growth.

the competitive landscape of china's auto market is undergoing profound changes. only those companies that can adapt and innovate quickly can remain invincible in this transformation.