Annual Report 2017

(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

Annual Report

2017

* 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 content set out in this annual 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. Deloitte Touche Tohmatsu Certified Public Accountants LLP has issued the standard audited report for the Company without qualified opinion.

The financial information in the annual 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 annual report.

V.

Proposal of profit distribution or capitalization of capital reserve during the Reporting Period

reviewed by the Board

As audited by Deloitte Touche Tohmatsu Certified Public Accountants LLP, the net profit of the Group and net profit attributable to shareholders of the Company in 2017 amounted to RMB5,043,386.53 and RMB5,027,297,997.74 respectively. The Company proposed to declare a cash dividend of RMB1,551,635,730.00 (representing RMB0.17 per share) (tax inclusive) to the shareholders of the Company for the year ended 31 December 2017. This proposal is subject to the approval at the 2017 annual general meeting of the Company.

VI. Risks relating to forward-looking statements

√ Applicable  Not applicable Forward-looking statements, such as plans for the future and development strategies, contained in this report do not constitute any actual commitment of the Company to its investors. Investors should be aware of the 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 “Discussion and Analysis concerning the Future Development of the Company” under item III of Section 5 headed “Discussion and Analysis of the Business Operation of the Company (Management Discussion and Analysis)” of this report.

X.

Others

 Applicable √ Not applicable

CONTENTS

Section 1

Section 8

Definitions

14

Significant Events

67

Section 2

Section 9

Corporate Profile and Key Financial Indicators
Changes in Ordinary Shares and Shareholders

16 24 28
87 96

Section 3
Section 10

Business Highlights of the Company

Description of Preference Shares

Section 4
Section 11

Chairman’s Statement

Directors, Supervisors,

Senior Management and Employees

97
110 131 132

Section 5 Discussion and Analysis of the Business Operation of the Company (Management Discussion and Analysis)
Section 12 Corporate Governance Report

30 59 65

Section 13

Section 6

Description of Corporate Bonds

Report of the Board
Section 14

Section 7

Financial Report

Report of the Supervisory Committee
Section 15

Index of Documents Available for Inspection

296

Haval Leading the Trend with Safety First in Mind

Introduction of Roof Quasi-static Pressure Test

U.S. Federal Motor Vehicle Safety Standard (FMVSS) No.216a, known as the world’s most stringent roof quasi-static pressure test, requires to load pressure successively against the driver’s side and the front passenger’s side and ensure that both sides are able to withstand the load of 3 times of the kerb mass and that the displacement of the top of the vehicle should not exceed 127mm. Meanwhile, occupants’ headroom for survival and protection performance of the vehicle should fully meet the requirements of the standard.

Driving to the Future XEV

Section 1 Definitions

I.

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)” “Articles” holders of A Share(s); 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 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;
“Great Wall Motor”

“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” “H Shares”
Great Wall Motor Company Limited and its subsidiaries; 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” “Model Code”
The Stock Exchange of Hong Kong Limited; Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 to the Hong Kong Listing Rules;

GREAT WALL MOTOR COMPANY LIMITED

14

Section 1 Definitions

“PRC”

the People’s Republic of China;

“Reporting Period” or
“Current Period” or “the Year” twelve months ended 31 December 2017;

”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.

ANNUAL REPORT 2017

15

Section 2 Corporate Profile and Key Financial Indicators

I.

CORPORATE INFORMATION

Chinese name of the Company Abbreviation of Chinese name of the Company English name of the Company

長城汽車股份有限公司長城汽車

Great Wall Motor Company Limited
Abbreviation of English name of the Company Legal representative of the Company
Great Wall Motor Wei Jian Jun

II. CONTACT PERSONS AND CONTACT METHODS

Secretary to the Board

Representative of Securities Affairs

Name Address
Xu Hui (Company Secretary) No. 2266 Chaoyang Road South, Baoding, Hebei Province, the PRC
86(312)-2197813
Chen Yong Jun No. 2266 Chaoyang Road South, Baoding, Hebei Province, the PRC

86(312)-2197813

Telephone

Fax

86(312)-2197812

E-mail address

[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 Office address of the Company
071000 No. 2266 Chaoyang Road South, Baoding, Hebei Province, the PRC
Postal code of the office address of the Company Company’s website
071000 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 (ceased to be the principal place of business of the Company in Hong Kong since 1 January 2018) Room 1903-4, 19/F., Hong Kong Trade Centre,
161 Des Voeux Road Central, Hong Kong (as the principal place of business of the Company in Hong Kong since 1 January 2018)

IV. INFORMATION DISCLOSURE AND PLACE OF DOCUMENT INSPECTION

Designated media for information disclosure

China Securities Journal, Shanghai Securities

News

Website designated by the CSRC

www.sse.com.cn

for publishing this annual report

Place for inspection of the Company’s annual reports

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 for publishing this annual report www.hkexnews.hk
The Company’s website for publishing this annual report www.gwm.com.cn

16

Section 2 Corporate Profile and Key Financial Indicators

V. INFORMATION ON THE COMPANY’S SHARES

Information on the Company’s Shares
Stock exchanges for the listing of
Previous stock

Stock classes

the Company’s Shares

Stock abbreviation

Stock code

abbreviation

A Shares H Shares
Shanghai Stock Exchange Hong Kong Stock Exchange
Great Wall Motor Great Wall Motor
601633 2333
––

Stock exchanges

for the listing of

Number of

Stock Classes

the Company’s Shares

Listing date

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)

ANNUAL REPORT 2017

17

Section 2 Corporate Profile and Key Financial Indicators

VI. OTHER RELEVANT INFORMATION

Domestic accounting firm appointed by the Company

Name

Deloitte Touche Tohmatsu Certified

Public Accountants LLP
30/F, 222 Yan An Road East, Huangpu District, Shanghai Xu Zhao Hui
Office address Names of the

signing accountants

Yang Ning

Legal adviser to the Company
(as to Hong Kong law)
Simmons & Simmons (ceased to be the legal adviser (as to Hong Kong law) of the Company since 1 January 2018) Herbert Smith Freehills (as the legal adviser (as to Hong Kong law) of the Company since 1 January 2018)

Legal adviser to the Company
(as to the 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

Investor and media relations consultant
(H Shares)
CorporateLink Limited 18/F, Shun Ho Tower, Nos 24-30 Ice House Street, Central, Hong Kong

Principal banker

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 Executive Directors
31 December Mr. Wei Jian Jun (Chairman) Ms. Wang Feng Ying (Vice Chairman) Ms. Yang Zhi Juan

18