[YesAuto News] In order to optimize the debt structure and supplement short-term liquidity, Great Wall Motor plans to issue ultra-short-term financing bonds of no more than 5 billion yuan. On November 13, Great Wall Motor announced the above information and stated that the raised funds will be used to supplement liquidity and repay interest-bearing debts.
Ultra-short-term financing bills refer to short-term financing bills issued in the inter-bank bond market by non-financial enterprises with legal personality and higher credit ratings, with a maturity of less than 270 days. Ultra-short-term financing bills are more flexible than short-term financing bills, which can satisfy the bottleneck of short-term liquidity shortage of enterprises and help improve the level of enterprise liquidity management.
The auto market is cold and new business investment, auto companies' reliance on cash flow is increasing. Before Great Wall Motors, Jianghuai, Zotye and other companies have issued announcements successively to use idle raised funds to supplement the company's daily working capital to ease the pressure of inventory and collection.
Affected by the slowdown in my country's overall automobile market growth, Great Wall Motor's sales have also declined. From January to October 2018, the cumulative sales of Great Wall Motors were 787,000 units, a year-on-year decrease of 3.29%. Judging from the third-quarter financial report, Great Wall Motor's net profit was only 231 million yuan, a decrease of about 50% from last year's 460 million yuan.
From the perspective of the whole year, from January to September, Great Wall Motor's total revenue was 66.64 billion yuan, net profit was 3.93 billion yuan, and operating cash flow was 16.46 billion yuan, both achieving year-on-year growth. Great Wall Motor said that benefiting from the increase in sales of WEY brand products, Great Wall Motor’s overall profitability is increasing.
While the high-end brand is growing, Great Wall Motors is also increasing its efforts to deploy electric vehicles, fuel cells, intelligent networking and other related technology fields, and these investments will also increase its funding needs.