Annual Report 2010 3

Contents

Corporate Information 3

Highlights 4

Organisation Structure 5

Chairman’s Statement 6

Management Discussion and Analysis 12

Directors and Senior Management 23

Corporate Governance Report 29

Report of the Directors 34

Independent Auditor’s Report 51

Consolidated Statement of Comprehensive Income 53

Consolidated Balance Sheet 54

Company Balance Sheet 56

Consolidated Statement of Changes in Equity 58

Consolidated Cash Flows Statement 59

Notes to the Consolidated Financial Statements 60

Five Years Financial Summary 155 ANNUAL REPORT 2010 3

Corporate Information

DIRECTORS AUDIT COMMITTEE LEGAL ADVISERS

Executive Directors: Lin Zhijun (Chairman) Hong Kong Ouyang Minggao Sidley Austin Ma Chunji (Chairman of the Board) Chen Zheng Cai Dong (President) Tong Jingen Wei Zhihai (Vice President) PRC Wang Haotao (Vice President) REMUNERATION DeHeng Law Offices Tong Jingen (Chief Economist) COMMITTEE Wang Shanpo (Chief Engineer) AUDITOR Pan Qing (Vice President) Chen Zheng (Chairman) Lin Zhijun PricewaterhouseCoopers Non-executive Directors: Li Xianyun Wei Zhihai SHARE REGISTRAR Georg Pachta-Reyhofen Tong Jingen Jörg Schwitalla Computershare Hong Kong Investor Lars Wrebo HEAD QUARTER Services Limited Independent Non-executive 165 Yingxiongshan Road, Ji’nan COMPANY WEBSITE Directors: Shandong Province, China Postal code: 250002 www.sinotruk.com Shao Qihui Lin Zhijun REGISTERED OFFICE IN STOCK CODE Ouyang Minggao HONG KONG Hu Zhenghuan 3808 Chen Zheng Units 2102-2103 Li Xianyun China Merchants Tower INVESTOR RELATIONS Shun Tak Centre EXECUTIVE COMMITTEE 168-200 Connaught Road Central Securities Department Hong Kong Ma Chunji (Chairman) China: Tel (86) 531 8866 3808 Fax (86) 531 8558 2545 Cai Dong COMPANY SECRETARIES Wei Zhihai Hong Kong: Tel (852) 3102 3808 Wang Haotao AND AUTHORIZED Fax (852) 3102 3812 Tong Jingen REPRESENTATIVES Wang Shanpo Email: [email protected] Pan Qing Tong Jingen Kwok Ka Yiu PUBLIC RELATIONS STRATEGY AND CONSULTANT INVESTMENT COMMITTEE PRINCIPAL BANKERS Christensen Ma Chunji (Chairman) Industrial and Commercial Bank of Tel: (852) 2117 0861 Cai Dong China - Ji’nan Branch, Email: [email protected] Shao Qihui Tianqiao Sub-branch Ouyang Minggao Bank of China - Ji’nan Branch Hu Zhenghuan Agricultural Bank of China- Wang Haotao Ji’nan Branch, Huaiyin Sub-branch Wang Shanpo China Construction Bank – Ji’nan Branch, Tianqiao Sub-branch 4

Highlights

2010 2009 Increase/(Decrease) % Operating results (RMB million) Turnover 39,656 27,901 11,755 42.1 Earnings before interest and tax 2,505 1,593 912 57.3 Profit attributable to equity holders of the Company 1,481 837 644 77.0

Profitability Gross profit margin 16.0% 13.4% 2.6% 19.4 Operating profit margin 5.8% 4.9% 0.9% 18.4 Net profit margin 4.4% 3.6% 0.8% 22.2

Liquidity Current ratio (time) 1.4 1.5 (0.1) (6.7) Inventory turnover (days)* 105.0 83.2 21.8 26.2 Trade receivable turnover (days)* 78.5 65.5 13.0 19.8 Trade payable turnover (days)* 119.2 115.5 3.7 3.2

Per share data Earnings per share - basic (RMB) 0.54 0.38 0.16 42.1 Dividend per share (HKD) 0.18 0.06 0.12 200.0

Share information (as at 31 December) Number of issued shares (million) 2,761 2,761 — — Market capitalisation (RMB million) 18,819 22,049 (3,230) (14.6)

* 2009 figures are not adjusted with the changes after the adoption of merger accounting from the acquisition of CNHTC Jining Commercial Truck Co., Ltd.

• Turnover at RMB39,656 million, 42.1% increase

• Heavy duty truck sales volume at 150,064 units, 38.3% increase; export volume at 13,549 units, 59.4% increase

• Profit attributable to equity holders of the Company at RMB1,481 million, 77.0% increase

• Basic earnings per share at RMB0.54, 42.1% increase

• Proposed final dividend per share at HKD0.18, 200% increase ANNUAL REPORT 2010 5

Organisation Structur