China’s Great Wall Motor Shares Soar 16% On Earnings; Chairman’s Wealth Gains $2 Billion
Shares in Great Wall Motor, China’s toop home-grown SUV maker, soared 16% to a six-year high in Hong Kong on Wednesday after the company said net profit in the first six months of 2021 more than tripled from a year earlier.
The Baoding-headquartered manufacturer said net profit climbed to 3.49 billion yuan, or $539 million, from 1.15 billion yuan, on operating revenue that increased by 73% to 62.1 billion yuan. Great Wall said earlier this month shipments in the first half rose 56% from a year earlier to 618,211 vehicles, helped by gains in SUVs and the Ora sedan.
China is the world’s second-largest economy and largest auto market. GDP rose by 7.9% in the second quarter from a year earlier amid a continuing recovery from the global pandemic.
The jump in the Great Wall’s stock added $2.1 billion to the fortune of Great Wall’s chairman Wei Jianjun, who is worth $24 billion on the Forbes Real-Time Billionaires List today and ranks as the world’s 71st richest person.
Great Wall plans to invest 100 billion yuan, or $15.4 billion, in clean energy-driven smart cars in the next five years, according to an announcement earlier this month.