Great Wall Motor has reported that its net profit halved in the first half of the year.

The company said a discounting campaign in the spring was responsible for lifting sales volumes but eroding profit margins.

It said that as competition intensified, its new car sales in the January-June period grew by 2.3%, while revenue, affected by the discount, dropped 1% to 41.2 billion yuan.

Great Wall's net income fell to 2.5 billion yuan in the first six months of the year, 49.5% down on last year's first half pace.

"The company promoted its products and brands comprehensively through internet, broadcasting and outdoor promotion activities, resulting in the significant increase in advertising and promotion fees," Great Wall Motor said in a statement.

The company was offering large discounts to promote its Haval brand of SUVs.

GWM sales volume is lagging behind its full year target of 15% year-on-year growth and analysts say the share price will continue to come under pressure amid 'sell' guidance from analysts.