2017 Interim Report
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(a joint stock company incorporated in the People’s Republic of China with limited liability) H Share Stock Code: 2333 A Share Stock Code: 601633 Interim Report 2017 2017 Interim Report * For identification purpose only IMPORTANT NOTICE I. The Board, the Supervisory Committee and the directors, supervisors and senior management of the Company warrant that the information in this interim report is true, accurate and complete and does not contain any false representations, misleading statements or material omissions, and jointly and severally take legal liability for its contents. II. All the directors of the Company attended the Board meeting. III. This interim report has not been audited. The financial information in this interim report was prepared in accordance with China Accounting Standards for Business Enterprises and the relevant laws and regulations. IV. Wei Jian Jun, person-in-charge of the Company, Li Feng Zhen, person-in-charge of the accounting affairs and Lu Cai Juan, person-in-charge of the accounting department (head of the accounting department), declare that they warrant the truthfulness, accuracy and completeness of the financial report in this interim report. V. Proposal of profit distribution or capitalization of capital reserve during the Reporting Period approved by the Board None VI. Risks relating to forward-looking statements Applicable Not applicable Forward-looking statements, such as plans for the future described in this interim report do not constitute an actual commitment of the Company to investors. Investors should be aware of the relevant investment risks. VII. Was there any non-operational appropriation of the Company’s funds by its controlling shareholders and related parties? No VIII. Was there any provision of guarantee to external parties in violation of the stipulated decision- making procedures? No IX. Reminder of material risks During the Reporting Period, there were no material risks resulting in any significant impact on the production and operation of the Company. Risks that the Company may encounter in the course of its production and operation and its corresponding measures have been described in “Other Disclosures“ under item II of Section 4 headed “Discussion and Analysis of the Business Operation of the Company“ of this report. X. Others Applicable Not applicable CONTENTS Section 1 Definitions 16 Section 2 Corporate Profile and Key Financial Indicators 17 Section 3 Business Highlights of the Company 23 Section 4 Discussion and Analysis of the Business Operation of the Company 26 Section 5 Significant Events 45 Section 6 Changes in Ordinary Shares and Shareholders 56 Section 7 Description of Preference Shares 62 Section 8 Directors, Supervisors and Senior Management 63 Section 9 Description of Corporate Bonds 64 Section 10 Financial Report (Unaudited) 65 Section 11 Index of Documents Available for Inspection 212 Section 1 Definitions In this report, the following expressions shall, unless the context otherwise requires, have the following meanings: Definitions for commonly used terms “A Shares“ domestic share(s) with a nominal value of RMB1.00 each in the share capital of the Company which are listed on the Shanghai Stock Exchange and traded in Renminbi (Stock Code: 601633); “A Shareholder(s)“ holders of A Share(s); “Articles“ articles of association of the Company, as amended, modified or otherwise supplemented from time to time; “Board“ the board of directors of the Company; “Company“ or Great Wall Motor Company Limited (長城汽車股份有限公司), a joint stock “Great Wall Motor“ company incorporated in the PRC with limited liability, the H Shares and A Shares of which are listed on the Hong Kong Stock Exchange and the Shanghai Stock Exchange, respectively; “Company Law“ Company Law of the PRC; “Competing Business“ a business that is identical with or similar to the principal business and other businesses of Great Wall Motor Company Limited; “CSRC“ China Securities Regulatory Commission; “Group“ Great Wall Motor Company Limited and its subsidiaries; “H Shares“ the overseas-listed foreign share(s) with a nominal value of RMB1.00 each in the share capital of the Company which are listed on the Main Board of the Hong Kong Stock Exchange and traded in Hong Kong dollars (Stock Code: 2333); “H Shareholder(s)“ holders of H Share(s); “Hong Kong Listing Rules“ the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited as amended from time to time; “Hong Kong Stock Exchange“ The Stock Exchange of Hong Kong Limited; “Model Code“ Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 to the Hong Kong Listing Rules; “PRC“ the People’s Republic of China; “Reporting Period“ or six months ended 30 June 2017; “Current Period“ “SFC“ The Securities and Futures Commission in Hong Kong; “SFO“ Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) as amended from time to time; and “Shanghai Stock Exchange“ Shanghai Stock Exchange. 16 GREAT WALL MOTOR COMPANY LIMITED Section 2 Corporate Profile and Key Financial Indicators I. CORPORATE INFORMATION Chinese name of the Company 長城汽車股份有限公司 Abbreviation of Chinese name of the Company 長城汽車 English name of the Company Great Wall Motor Company Limited Abbreviation of English name of the Company Great Wall Motor Legal representative of the Company Wei Jian Jun II. CONTACT PERSONS AND CONTACT METHODS Secretary to the Board Representative of Securities Affairs Name Xu Hui (Company Secretary) Chen Yong Jun Address No. 2266 Chaoyang Road South, No. 2266 Chaoyang Road South, Baoding, Hebei Province, the PRC Baoding, Hebei Province, the PRC Telephone 86(312)-2197813 86(312)-2197813 Fax 86(312)-2197812 86(312)-2197812 E-mail address [email protected] [email protected] III. BASIC INFORMATION Registered address of the Company No. 2266 Chaoyang Road South, Baoding, Hebei Province, the PRC Postal code of the registered address of the Company 071000 Office address of the Company No. 2266 Chaoyang Road South, Baoding, Hebei Province, the PRC Postal code of the office address of the Company 071000 Company’s website www.gwm.com.cn E-mail address [email protected] Principal place of business in Hong Kong 13th Floor, One Pacific Place, 88 Queensway, Hong Kong IV. INFORMATION DISCLOSURE AND PLACE OF DOCUMENT INSPECTION Designated newspapers for information disclosure China Securities Journal, Shanghai Securities News Website designated by the CSRC www.sse.com.cn for publishing this interim report Place for inspection of the Company’s interim report Securities Department of Great Wall Motor Company Limited No. 2266 Chaoyang Road South, Baoding, Hebei Province, the PRC Website designated by the Hong Kong Stock Exchange www.hkexnews.hk for publishing this interim report The Company’s website for publishing www.gwm.com.cn this interim report INTERIM REPORT 2017 17 Section 2 Corporate Profile and Key Financial Indicators V. INFORMATION ON THE COMPANY’S SHARES Stock exchanges Previous for the listing of stock Stock classes the Company’s Shares Stock abbreviation Stock code abbreviation A Shares Shanghai Stock Exchange Great Wall Motor 601633 — H Shares Hong Kong Stock Exchange Great Wall Motor 2333 — Stock exchanges for the listing of Stock Classes the Company’s Shares Listing date Number of issued shares Board lot A Shares Shanghai Stock Exchange 28 September 2011 6,027,729,000 100 A Shares (Total shares: 9,127,269,000 shares, H Shares: 3,099,540,000 shares) H Shares Hong Kong Stock Exchange 15 December 2003 3,099,540,000 500 H Shares (Total shares: 9,127,269,000 shares, A Shares: 6,027,729,000 shares) VI. OTHER RELEVANT INFORMATION Applicable Not applicable Accounting firm appointed by the Company Deloitte Touche Tohmatsu Certified Public Accountants LLP (auditor of the Company) Office address of the accounting firm appointed 30/F, 222 Yan An Road East, Shanghai by the Company Legal adviser to the Company (as to Hong Kong law) Simmons & Simmons Legal adviser to the Company (as to PRC law) Zhong Lun Law Firm H Share registrar and transfer office in Hong Kong Computershare Hong Kong Investor Services Limited Shops 1712–1716, 17th Floor, Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong A Share registrar and transfer office Shanghai Branch of China Securities Depository and Clearing Corporation Limited 3/F, China Insurance Building, 166 Lujiazui East Road, New Pudong District, Shanghai, PRC 18 GREAT WALL MOTOR COMPANY LIMITED Section 2 Corporate Profile and Key Financial Indicators Investor and media relations consultant (H Shares) CorporateLink Limited 18/F, Shun Ho Tower, Nos 24–30 Ice House Street, Central, Hong Kong Principal bankers Bank of China Limited, Baoding Yuhua sub-branch The Industrial and Commercial Bank of China, Baoding Yonghua Road sub-branch China Construction Bank, Baoding Hengxiang South Street sub-branch China Everbright Bank, Shijiazhuang sub-branch China CITIC Bank, Baoding sub-branch Bank of Communications Co., Ltd. Baoding sub-branch Industrial Bank Co., Ltd. Baoding sub-branch Authorised representatives Ms. Wang Feng Ying Mr. Xu Hui Financial year-end date 31 December Executive Directors Mr. Wei Jian Jun (Chairman) Ms. Wang Feng Ying Ms. Yang Zhi Juan Non-Executive Directors Mr. He Ping Independent Non-Executive Directors Mr. Wong Chi Hung, Stanley (resigned on 11 May 2017) Mr. Lu Chuang (resigned on 11 May 2017) Mr. Ma Li Hui Mr. Li Wan Jun (appointed on 11 May 2017) Mr. Ng Chi Kit (appointed on 11 May 2017) Employee Representative Supervisor Mr. Chen Biao Independent Supervisors Ms. Zong Yi Xiang Ms. Luo Jin Li Audit Committee Mr. Wong Chi Hung, Stanley (resigned on 11 May 2017) Mr. He Ping Mr. Lu Chuang (resigned on 11 May 2017) Mr. Ma Li Hui Mr. Li Wan Jun (appointed on 11 May 2017) Mr. Ng Chi Kit (appointed on 11 May 2017) Remuneration Committee Mr. Wei Jian Jun Mr. Lu Chuang (resigned on 11 May 2017) Mr.