Annual Report 2016 2016 Annual 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 Annual Report 2016 2016 Annual 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 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. Director(s) absent from the Board meeting Position of the Name of the Reasons for director(s) absent director(s) absent being absent from the Board meeting from the Board meeting from the Board meeting Representative Independent director Lu Chuang Work commitment Ma Li Hui III. Deloitte Touche Tohmatsu Certified Public Accountants LLP (auditor of the Company) 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 approved by the Board As audited by Deloitte Touche Tohmatsu Certified Public Accountants LLP, the net profit of the Company and net profit attributable to shareholders of the Company in 2016 amounted to RMB10,553,954,644.48 and RMB10,551,158,884.21 respectively. The Company proposed to declare a cash dividend of RMB3,194,544,150 (representing RMB0.35 per share) (tax inclusive) for the year ended 31 December 2016. This proposal is subject to the approval at the 2016 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 √ Applicable Not applicable 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 8 Significant Events 58 Section 2 Section 9 Corporate Profile and Changes in Ordinary Shares Key Financial Indicators 10 and Shareholders 75 Section 3 Section 10 Business Highlights of the Company 18 Description of Preference Shares 83 Section 4 Section 11 Chairman’s Statement 21 Directors, Supervisors, Senior Management and Employees 84 Section 5 Discussion and Analysis of the Section 12 Business Operation of the Company Corporate Governance Report 96 (Management Discussion and Analysis) 23 Section 13 Section 6 Corporate Bonds 116 Report of the Board 50 Section 14 Section 7 Financial Report 117 Report of the Supervisory Committee 56 Section 15 Index of Documents Available for Inspection 276 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)” 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 twelve months ended 31 December 2016; “Current Period” or “the Year” 08 GREAT WALL MOTOR COMPANY LIMITED Section 1 Definitions “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 2016 09 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 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 www.hkexnews.hk for publishing this annual report The Company’s website for publishing www.gwm.com.cn this annual report 10 GREAT WALL MOTOR COMPANY LIMITED Section 2 Corporate Profile and Key Financial Indicators V. INFORMATION ON THE COMPANY’S SHARES 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) ANNUAL REPORT 2016 11 Section 2 Corporate Profile and Key Financial Indicators VI. OTHER RELEVANT INFORMATION Domestic accounting firm appointed Name Deloitte Touche Tohmatsu Certified by the Company Public Accountants LLP Office address 30/F, 222 Yan An Road East, Huangpu District, Shanghai Names of the Xu Zhao Hui signing accountants Zhang Luan Qing Legal adviser to the Company Simmons & Simmons (as to Hong Kong law) Legal adviser to the Company Zhong Lun Law Firm (as to the PRC law) H Share registrar and transfer office Computershare Hong Kong Investor Services Limited in Hong Kong 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 CorporateLink Limited (H Shares) 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 Authorised representatives Ms.