Two major automakers' "top brands" attract hundreds of billions in investment into wealth management. BYD and Great Wall Motors set new "records" in innovation and entrepreneurship.

Financial Link March 28 (Reporter Xu Hao) On the evening of March 27, BYD and Great Wall Motors respectively announced plans to use up to 60 billion yuan and 43.5 billion yuan of their own idle funds for entrusted wealth management, with a total amount exceeding 100 billion yuan, setting a record for A-share listed companies in the vehicle manufacturing sector.

On the same day, BYD and Great Wall Motors both released their financial reports for 2025. The reports show that BYD achieved an annual revenue of 803.965 billion yuan, a year-on-year increase of 3.46%; the net profit attributable to shareholders was 32.619 billion yuan, a year-on-year decrease of 18.97%; the net profit attributable to shareholders after deducting non-recurring gains and losses was 29.446 billion yuan, a year-on-year decrease of 20.38%. BYD’s annual dividend plan is to distribute 3.58 yuan per 10 shares to all shareholders, compared to no distribution or transfer to shareholders in the same period last year.

The financial report from Great Wall Motors shows that the company achieved an annual revenue of 222.824 billion yuan, a year-on-year increase of 10.20%; the net profit attributable to shareholders was 9.865 billion yuan, a year-on-year decrease of 22.07%; the net profit attributable to shareholders after deducting non-recurring gains and losses was 6.059 billion yuan, a year-on-year decrease of 37.50%. Great Wall Motors’ annual dividend plan is to distribute 3.5 yuan per 10 shares to all shareholders, compared to 4.5 yuan per 10 shares to all shareholders in the same period last year.

Comparing the financial reports, it is not difficult to find that both major A-share listed vehicle companies face the predicament of “increasing revenue without increasing profit” in 2025. “Whether it is BYD or Great Wall, the annual performance fluctuations were expected. Especially for BYD, as the industry ‘leader’, maintaining market share has led to price promotions through cash discounts and replacement subsidies on their main models, which directly resulted in a narrowing of profit margins,” analysts in the industry believe.

Compared to the performance fluctuations, BYD’s decision to invest “two years of net profit” in wealth management has drawn more market attention. Although both BYD and Great Wall Motors stated in the evening’s announcement that “entrusted wealth management does not affect the main business and helps improve capital efficiency and investment returns,” investors have expressed concerns. Some investors questioned, “Why not use it for dividends?”; others commented, “Why not buy back their own stock?”

“The company using its own funds to purchase wealth management products indicates that the company’s cash flow is ample, and its finances are stable, showing confidence in short-term capital arrangements,” said the aforementioned industry insider, considering this a normal capital management behavior for automakers, which can serve as a reference for assessing their financial stability.

Prior to this, while there have been similar cases among A-share listed vehicle companies, the funds invested by BYD and Great Wall Motors are not comparable. In February of this year, FAW Jiefang announced plans to use no more than 10 billion yuan of its own funds for entrusted wealth management, with a term of 12 months, aimed at improving capital efficiency; this is the second similar plan since 2025.

Even earlier, Sinotruk announced in December last year that the company used idle raised funds to purchase structured deposit products from Bank of China and Bank of Communications in September of the same year, totaling 600 million yuan. As of December 26, 2025, the relevant products have matured, and the company has fully redeemed the principal and income totaling 602.775 million yuan, which has been deposited into the raised funds account.

Sinotruk’s same-day announcement also listed the specific circumstances of cash management using idle raised funds over the past twelve months, with a total income of 9.5538 million yuan. “All operations were carried out within the authorization of the board of directors and did not affect the progress or safety of the fundraising projects,” Sinotruk stated.

“The 60 billion yuan from BYD and the 43.5 billion yuan from Great Wall are just the upper limits authorized by the company’s board of directors; the actual investment amount will be dynamically adjusted based on demand,” said the aforementioned industry insider.