GREAT WALL MOTOR COMPANY LIMITED * (a joint stock company incorporated in the People s Republic of China with limited liability) (Stock Code: 2333)

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1 Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. GREAT WALL MOTOR COMPANY LIMITED * (a joint stock company incorporated in the People s Republic of China with limited liability) (Stock Code: 2333) 2014 THIRD QUARTERLY REPORT The Board hereby announces the 2014 Third Quarterly Report of the Company. This report was prepared in accordance with China Accounting Standards for Business Enterprises and has not been audited. This announcement is made pursuant to Rule of the Listing Rules and Part XIVA of the Securities and Futures Ordinance. The board of directors (the Board ) of Great Wall Motor Company Limited (the Company ) hereby announces the unaudited results of the Company and its subsidiaries (the Group ) for the nine months ended 30 September 2014 (the Third Quarterly Report ), which were prepared in accordance with China Accounting Standards for Business Enterprises. This announcement is made pursuant to Rule of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the Listing Rules ) and Part XIVA of the Securities and Futures Ordinance. The contents of this announcement are consistent with the announcement published on the Shanghai Stock Exchange. This announcement is published simultaneously in Hong Kong and Shanghai. 1. IMPORTANT NOTICE 1.1 The Board, the Supervisory Committee and the directors, supervisors and senior management of the Company warrant that the information in this quarterly report is true, accurate and complete, and does not contain any false representations, misleading statements or material omissions and they jointly and severally take legal responsibility for its contents. 1.2 All the directors of the Company attended the Board meeting to consider and approve this quarterly report. 1

2 1.3 Wei Jian Jun, person-in-charge of the Company, Li Feng Zhen, person-in-charge of the accounting affairs and Ji Wen Jun, person-in-charge of the accounting department (head of the accounting department) warrant the truthfulness, accuracy and completeness of the financial statements in this quarterly report. 1.4 The financial statements in the Third Quarterly Report of the Company have not been audited. 1.5 Definitions In this report, the following expressions shall, unless the context otherwise requires, have the following meanings: ASBE MOF Reporting Period or Current Period Accounting Standards for Business Enterprises and its guidelines, interpretations and other relevant regulations promulgated by MOF; Ministry of Finance of PRC; and the period commencing from 1 July 2014 and ending on 30 September KEY FINANCIAL DATA AND CHANGE IN SHAREHOLDERS OF THE COMPANY 2.1 Key financial data As at the Reporting Period Unit: RMB Currency: RMB Increase/decrease as at the Reporting Period over last As at year last year (%) Total assets 54,305,542, ,604,808, Net assets attributable to shareholders of the listed company 31,066,775, ,995,898,

3 From the beginning of this year to the end of the Reporting Period From the beginning of last year to the end of the reporting period of last year Increase/decrease as compared with the corresponding period last year (%) Net cash flow from operating activities 6,604,349, ,838,876, From the beginning of this year to the end of the Reporting Period From the beginning of last year to the end of the reporting period of last year Increase/decrease as compared with the corresponding period last year (%) Operating income 42,585,889, ,774,891, Net profit attributable to shareholders of the listed company 5,586,247, ,172,209, Net profit attributable to shareholders of the listed company after non-recurring gains/losses 5,502,711, ,076,358, Weighted average return on net assets (%) decreased by 7.07 percentage points Basic earnings per share (RMB per share) Diluted earnings per share (RMB per share) N/A N/A N/A 3

4 Excluding items and amounts of non-recurring gains/losses: Item Unit: RMB Currency: RMB the beginning of this year to the Reporting For the Current Period Period (July to Gains/losses on disposal of non-current assets -11,716, ,784, Government subsidies included in profits and losses for the Current Period, excluding those closely related to the normal business operations of the Company and of fixed amount or fixed quantity granted on an on-going basis in accordance with certain standards and in compliance with the State policies 29,460, ,397, Non-operating income and expenses other than the above items -903, ,972, Investment gains from the disposal of long-term equity investments and investment gains from the disposal of held-for-trading financial assets and available-for-sale financial assets 3,547, ,528, Gains (losses) from changes in fair value 15,458, ,062, Income tax effect -5,023, ,640, Minority interest effect (after tax) -14, Total 30,808, ,536,

5 Total number of shareholders and shareholding of the top 10 shareholders and the top 10 shareholders of tradable shares or shares without selling restrictions as at the end of the Reporting Period Unit: Shares Total number of shareholders 34,965 Shareholding of the top 10 shareholders Name of shareholder (Full name) Baoding Innovation Great Wall Asset Management Company Limited ( 保定創新長城資產管理有限公司 ) HKSCC NOMINEES LIMITED Increase/ decrease during the Reporting Period 0 24,900 (H Shares) WU FEE PHILIP 0 (H Shares) Bank of China Jiashi Stable Open Stock Investment Fund China Construction Bank Bosera Theme Industry Stock Securities Investment Fund National Social Security Fund 103 Package Bosera Value Growth Securities Investment Fund Bank of Communications Huaxia BlueChip Core Mixed Securities Investment Fund (LOF) Industrial and Commercial Bank of China China Universal Balanced Growth Equity Fund CSOP Asset Management Limited CSOP FSTE China A50 ETF -3,877, , , ,717 5,396,255 1,429,782 Number of shares at the end of the Reporting Period 1,705,000,000 1,008,181,384 (H Shares) 18,055,000 (H Shares) 15,431,178 14,634,980 12,944,764 9,177,479 7,351,390 6,596,106 5,373,923 Percentage (%) Number of shares with selling restrictions held Pledged or frozen State of shares Number of shares Type of shareholder Nil Domestic non-state-owned legal person Unknown Overseas legal person 0.59 Unknown Overseas natural person 0.51 Unknown Others 0.48 Unknown Others 0.43 Unknown Others 0.30 Unknown Others 0.24 Unknown Others 0.22 Unknown Others 0.18 Unknown Others 5

6 Shareholding of the top 10 shareholders holding shares without selling restrictions Number of tradable shares without selling Class and number of shares restrictions Class Number Name of shareholder held of shares of shares Baoding Innovation Great Wall Asset 1,705,000,000 RMB-denominated ordinary shares 1,705,000,000 Management Company Limited ( 保定創新長城資產管理有限公司 ) HKSCC NOMINEES LIMITED 1,008,181,384 (H Shares) Overseas listed foreign shares 1,008,181,384 (H Shares) WU FEE PHILIP 18,055,000 Overseas listed 18,055,000 Bank of China Jiashi Stable Open Stock Investment Fund China Construction Bank Bosera Theme Industry Stock Securities Investment Fund National Social Security Fund 103 Package Bosera Value Growth Securities Investment Fund Bank of Communications Huaxia BlueChip Core Mixed Securities Investment Fund (LOF) Industrial and Commercial Bank of China China Universal Balanced Growth Equity Fund CSOP Asset Management Limited CSOP FSTE China A50 ETF Description of the related party relationship or acting in concert relationship among the above shareholders Description of the shareholders holding preference shares with restored voting rights and their shareholding (H Shares) 15,431,178 14,634,980 12,944,764 9,177,479 7,351,390 6,596,106 5,373,923 foreign shares RMB-denominated ordinary shares RMB-denominated ordinary shares RMB-denominated ordinary shares RMB-denominated ordinary shares RMB-denominated ordinary shares RMB-denominated ordinary shares RMB-denominated ordinary shares (H Shares) 15,431,178 14,634,980 12,944,764 9,177,479 7,351,390 6,596,106 5,373,923 There is no related party relationship between Baoding Innovation Great Wall Asset Management Company Limited ( 保定創新長城資產管理有限公司 ), the controlling shareholder of the Company, and the other shareholders. In addition, the Company is not aware of any related party relationship among the other shareholders mentioned above. 6

7 3. SIGNIFICANT EVENTS 3.1 Details of and reasons for material changes in key financial statement items and financial indicators of the Company Applicable Not applicable Items in the consolidated balance sheet as at 30 September 2014 with significant changes as compared to those of 31 December 2013: Item 30 September December 2013 Change (%) Reason Financial assets held for trading 14,333, ,270, The change in financial assets held for trading was due to a change in fair value of forward foreign exchange contracts. Accounts receivable 899,374, ,312, The change in account receivables was primarily due to an increase in account receivables which were sales on credit through China Export & Credit Insurance Corporation from January to September Prepayments 755,913, ,068, The change in prepayments was primarily due to increases in the purchase of materials and prepaid taxes for the acquisition and installation of fixed assets. Other current assets 292,899, ,680, The change in other current assets was primarily due to an increase in taxes to be deducted. Entrusted loans and advances Construction-inprogress Long-term deferred expenses 13,285, The change in entrusted loans and advances was due to the entrusted loans and advances granted by the newly established subsidiary, Tianjin Great Wall Binyin Automotive Finance Company Ltd. ( 天津長城濱銀汽車金融有限公司 ). 5,329,212, ,989,228, The change in construction-in-progress was primarily due to an increase in the investment in land, plant and equipment for the addition and expansion of production lines of the Group. 46,799, ,678, The change in long-term deferred expenses was primarily due to an increase in renovation cost and land rentals. 7

8 Item 30 September December 2013 Change (%) Reason Short-term borrowings 763,022, ,198, The change in short-term borrowings was primarily due to an additional borrowing in Hong Kong dollars for the payment of dividends in June Salaries payable 456,747, ,096,561, The change in salaries payable was primarily due to the payment of employee s bonuses accrued as at the end of last year in January Other payables 1,418,441, ,270,050, The change in other payables was primarily due to the payment for the construction and equipment during the period from January to September Minority interests 66,279, ,098, The change in minority interest was primarily due to the capital injection from minority shareholders in the newly established subsidiary, Tianjin Great Wall Binyin Automotive Finance Company Ltd. ( 天津長城濱銀汽車金融有限公司 ) Items in the consolidated income statement for the period from 1 January 2014 to 30 September 2014 with significant changes as compared to those of the corresponding period last year: Item January to September 2014 January to September 2013 Change (%) Reason Administration expenses 2,503,259, ,676,887, The change in administration expenses was primarily due to an increase in technology research and development expenses. Asset impairment loss 1,179, ,457, The change in asset impairment loss mainly due to a decrease in the provision for inventory impairment and the reversal of the provision for bad debts during the period from January to September Gains from changes in fair value (losses are indicated with - ) 10,062, ,111, The change in gains from changes in fair value was due to changes in fair value of forward foreign exchange contracts. 8

9 Item January to September 2014 January to September 2013 Change (%) Reason Investment gains (losses are indicated with - ) Non-operating expenses Profit and loss of minority shareholders 12,291, ,047, The change in investment gains was primarily due to a decrease in investment and wealth management products during the period from January to September 2014 and investment gains from the disposals of subsidiaries in January ,585, ,940, The change in non-operating expenses was primarily due to increases in losses from the disposals of non-current assets and expenses for claims relating to molds during the period from January to September , ,550, The change in profit and loss of minority shareholders was primarily due to the acquisition of minority interests in Macs (Baoding) Auto A/C System Co., Ltd. ( 麥克斯 ( 保定 ) 汽車空調系 統有限公司 ) by the Company and its wholly owned subsidiary, Billion Sunny Development Limited ( 億新發展有限 公司 ), which resulted in the operation results of Macs (Baoding) Auto A/C System Co., Ltd. ( 麥克斯 ( 保定 ) 汽車 空調系統有限公司 ) during the period from January to September 2014 being attributed to the Company Items in the consolidated cash flow statement for the period from 1 January 2014 to 30 September 2014 with significant changes as compared to those of the corresponding period last year: Item January to September 2014 January to September 2013 Change (%) Reason Net cash flow from operating activities Net cash flow from investing activities Net cash flow from financing activities 6,604,349, ,838,876, The change in the net cash flow from operating activities was mainly due to a decrease in profit during the period from January to September ,228,890, ,066,117, The change in the net cash flow from investing activities was mainly due to an increase in capital investment in land, plant and equipment for the addition and expansion of production lines of the Group. -1,650,199, ,674,586, The net cash flow from financing activities during the period from January to September 2014 was basically at the same level as that during the period from January to September

10 3.2 Analysis and explanation of the progress of significant events and their implications and solutions Applicable Not applicable 3.3 Performance of undertakings made by the Company and its shareholders holding 5% or more of shares Applicable Not applicable 1. Baoding Innovation Great Wall Asset Management Company Limited ( 保定創新長城資產管理有限公司 ), the controlling shareholder of the Company, has undertaken that for a period of 36 months from the date of listing of A shares, Baoding Innovation Great Wall Asset Management Company Limited ( 保定創新長城資產管理有限公司 ) would not transfer or entrust others to manage any of the A shares directly or indirectly held by it issued before the initial public offering of A shares by the issuer, nor allow such shares to be repurchased by the issuer. 2. Mr. Wei Jian Jun, the de facto controller of the Company, has undertaken that for a period of 36 months from the date of listing of A shares, Mr. Wei Jian Jun would not transfer or entrust others to manage any of the A shares directly or indirectly held by him issued before the initial public offering of A shares by the issuer, nor allow such shares to be repurchased by the issuer. 3. The Company has undertaken that from 1 January 2012, it would not enter into any transactions relating to automotive parts and components with Hebei Baoding Tai Hang Group Company Limited ( 河北保定太行集團有限責任公司 ) and Baoding Tai Hang Pump Manufacturing Company Limited ( 保定市太行製泵有限公司 ). 4. Baoding Innovation Great Wall Asset Management Company Limited ( 保定創新長城資產管理有限公司 ), the controlling shareholder of the Company, has undertaken that (1) Baoding Innovation Great Wall Asset Management Company Limited ( 保定創新長城資產管理有限公司 ) is not directly or indirectly engaged in any business that is identical with or similar to the principal business and other businesses of Great Wall Motor Company Limited (the Competing Business ); (2) as long as Baoding Innovation Great Wall Asset Management Company Limited ( 保定創新長城資產管理有限公司 ) remains as a related party that has control over Great Wall Motor Company Limited ( 長城汽車股份有限公司 ), its directly or indirectly-controlled subsidiaries would not in any way, directly or indirectly, engage in any existing or potential Competing Business; and (3) subject to the same conditions, Great Wall Motor Company Limited ( 長城汽車股份有限公司 ) shall have the right of first refusal over the investment or other business opportunities relating to Competing Businesses that Baoding Innovation Great Wall Asset Management Company Limited ( 保定創新長城資產管理有限公司 ) will pursue or may get in the future. 10

11 5. Mr. Wei Jian Jun, the de facto controller of the Company, has undertaken that (1) the subsidiaries directly or indirectly controlled by Mr. Wei Jian Jun are not directly or indirectly engaged in any Competing Business; (2) as long as Mr. Wei Jian Jun remains as a related party who has control over Great Wall Motor Company Limited ( 長城汽車股份有限公司 ), the subsidiaries directly or indirectly controlled by him would not in any way, directly or indirectly, engage in any existing or potential Competing Business; and (3) subject to the same conditions, Great Wall Motor Company Limited ( 長城汽車股份有限公司 ) shall have the right of first refusal over the investment or other business opportunities relating to the Competing Businesses that the subsidiaries directly or indirectly controlled by Mr. Wei Jian Jun will pursue or may get in the future. After prudent verification, the Board confirmed that the above undertakings had been strictly fulfilled by each of the parties and there was no breach of the same. 3.4 Warning and explanation as to anticipated loss in accumulated net profit from the beginning of this year to the next reporting period or significant changes in the same over the corresponding period last year Applicable Not applicable 3.5 Impact of the Adoption of New Accounting Standards on the Consolidated Financial Statements In the financial statements of 2013, the Group has early adopted ASBE 9 Employee Benefits (revised), ASBE 30 Financial Statements Presentation (revised), ASBE 33 Consolidated Financial Statements (revised), ASBE 39 Fair value Measurement and ASBE 40 Joint Arrangements issued by MOF in January and February The changes in relevant accounting standards have no material impacts on the financial statements of the Group. In the financial statements for the first half of 2014, the Group has early adopted ASBE 2 Long-term Equity Investment (revised) issued by MOF in March According to ASBE 2 Long-term Equity Investment (revised) in relation to the change of the scope of accounts, the Group classified equity investments amounted to RMB7,200, as of 30 June 2014 (RMB7,200, as of 31 December 2013) where there is no control, joint control and significant influence to investee, and there is no quoted price in active market, the fair value of such investment cannot be reliably measured as available-for-sale financial assets and the comparative figures for last year were adjusted. 11

12 3.5.1 Impact of the Changes in Long-term Equity Investment Standards on the Consolidated Financial Statements Unit: RMB Currency: RMB Investee Information of transaction Equity attributable to shareholders of the parent company as at 1 January 2013 (+/-) Long-term equity investments (+/-) 31 December 2013 Available-forsale financial assets (+/-) Equity attributable to shareholders of the parent company China Automobile Development United Investment Co., Ltd.( 中發聯投資有限公司 ) -4,200, ,200, China Automobile (Beijing) Automobile Lightweight Technology Research Institute Company Limited ( 國汽 ( 北京 ) 汽車輕量化技術研究院有限公司 ) -3,000, ,000, Total -7,200, ,200, Description of the impact of the changes in long-term equity investment standards on the consolidated financial statements The changes in long-term equity investment standards have no impacts on the net assets as at all previous periods, and only have impacts on balance sheet items. 12

13 3.6 Launch of models Leveraging on its fashionable style, Haval H2 has attached great attention since its launch in mid-july 2014, and has become another popular model under Haval brand. It has doubled the monthly sales for two consecutive months, recording a significant sales growth month-on-month. Since July 2014, other six redesigned models, including the upgraded version of Great Wall C50, Great Wall C model and Haval H model, have been gradually launched After the launch of stylish SUV Haval H2, small SUV Haval H1 and high-ended offroad SUV Haval H9 are planned to be launched this year In respect of Haval H8, the Company stated in its announcement issued on 8 May 2014 that as there were some knocking noises in the transmission system of Haval H8, the Company decided to further rectify Haval H8 which will not be launched unless it is of premium standard. It is found that the problem is caused by the defects of rear main decelerator of Haval H8. The Company has engaged a new international supplier of automotive parts and components to develop the part and will conduct relevant experiments and tests upon the completion of its development. The Company will publish an announcement in a timely manner when Haval H8 has satisfied the launching conditions. Great Wall Motor Company Limited Legal Representative: Wei Jian Jun 23 October

14 4. APPENDIX 4.1 Financial Statements Consolidated Balance Sheet As at 30 September 2014 Prepared by: Great Wall Motor Company Limited Unit: RMB Currency: RMB Audit status: Unaudited Item Closing balance of the period Opening balance of the year Current assets: Cash and bank balances 6,499,483, ,990,516, Balances with clearing companies Placements with banks and other financial institutions Financial assets held for trading 14,333, ,270, Bills receivable 16,088,567, ,548,258, Accounts receivable 899,374, ,312, Prepayments 755,913, ,068, Premiums receivable Reinsurance accounts receivable Deposits receivable from reinsurance contracts Interests receivable 57, Dividends receivable 9,000, ,000, Other receivables 2,903,103, ,559,193, Financial assets purchased under agreements to resell Inventories 2,640,015, ,763,890, Non-current assets due within one year Other current assets 292,899, ,680, Total current assets 30,102,748, ,026,191,

15 Item Closing balance of the period Opening balance of the year Non-current assets: Entrusted loans and advances 13,285, Financial assets available for sale 7,200, ,200, Investments held to maturity Long-term receivables Long-term equity investments 51,746, ,983, Investment properties 6,387, ,090, Fixed assets 15,888,427, ,656,928, Construction-in-progress 5,329,212, ,989,228, Construction materials Disposal of fixed assets Biological assets for production Oil and gas assets Intangible assets 2,471,606, ,442,835, Development expenses Goodwill 2,163, ,163, Long-term deferred expenses 46,799, ,678, Deferred income tax assets 385,965, ,509, Other non-current assets Total non-current assets 24,202,794, ,578,617, Total assets 54,305,542, ,604,808,

16 Item Closing balance of the period Opening balance of the year Current liabilities: Short-term borrowings 763,022, ,198, Borrowings from central bank Deposit and amounts due to banks Placement from banks and other financial institutions Financial liabilities held for trading Bills payable 4,627,635, ,539,529, Accounts payable 9,674,826, ,712,169, Payments received in advance 3,285,571, ,808,752, Financial assets sold under agreements to repurchase Handling charges and commission payable Salaries payable 456,747, ,096,561, Taxes payable 564,671, ,274, Interests payable Dividends payable 156, Other payables 1,418,441, ,270,050, Reinsurance accounts payable Deposits for insurance contracts Customer deposits for securities trading Customer deposits for securities underwriting Non-current liabilities due within one year 69,582, ,258, Other current liabilities 602,930, ,678, Total current liabilities 21,463,585, ,839,474, Non-current liabilities: Long-term borrowings Debentures payable Long-term payables Special payables Projected liabilities Deferred income tax liabilities Other non-current liabilities 1,708,901, ,757,337, Total non-current liabilities 1,708,901, ,757,337, Total liabilities 23,172,487, ,596,812,

17 Item Closing balance of the period Opening balance of the year Owners equity (or shareholders equity): Paid-up capital (or share capital) 3,042,423, ,042,423, Capital reserves 4,453,872, ,453,872, Less: Treasury shares Special reserves Surplus reserves 2,281,860, ,281,860, Provision for general risks Undistributed profit 21,316,009, ,224,548, Exchange difference arising on translation -27,390, ,806, Total equity attributable to owners of the parent company 31,066,775, ,995,898, Minority interests 66,279, ,098, Total owners equity 31,133,054, ,007,996, Total liabilities and owners equity 54,305,542, ,604,808, Legal Representative of Person-in-charge of Person-in-charge of the the Company: accounting affairs: accounting department: Wei Jian Jun Li Feng Zhen Ji Wen Jun 17

18 Balance Sheet of the Parent Company As at 30 September 2014 Prepared by: Great Wall Motor Company Limited Unit: RMB Currency: RMB Audit status: Unaudited Item Closing balance of the period Opening balance of the year Current assets: Cash and bank balances 3,731,893, ,425,463, Financial assets held for trading 14,333, ,270, Bills receivable 12,805,421, ,337,820, Accounts receivable 1,718,921, ,210,243, Prepayments 613,516, ,414, Interests receivable Dividends receivable 529,603, ,493, Other receivables 2,914,337, ,586,105, Inventories 1,560,661, ,488,948, Non-current assets due within one year Other current assets 268,251, ,563, Total current assets 24,156,939, ,661,323,

19 Item Closing balance of the period Opening balance of the year Non-current assets: Financial assets available for sale 7,200, ,200, Investments held to maturity Long-term receivables Long-term equity investments 4,927,928, ,782,303, Investment properties 6,387, ,090, Fixed assets 13,225,680, ,157,005, Construction-in-progress 4,915,522, ,467,386, Construction materials Disposal of fixed assets Biological assets for production Oil and gas assets Intangible assets 2,160,486, ,131,246, Development expenses Goodwill Long-term deferred expenses 36,016, ,921, Deferred income tax assets 133,768, ,218, Other non-current assets 504,500, Total non-current assets 25,412,990, ,215,871, Total assets 49,569,929, ,877,195, Current liabilities: Short-term borrowings 763,022, ,198, Financial liabilities held for trading Bills payable 2,607,037, ,572,362, Accounts payable 10,406,940, ,264,678, Payments received in advance 3,417,133, ,577,913, Salaries payable 266,691, ,834, Taxes payable 329,671, ,007, Interests payable Dividends payable Other payables 874,228, ,754,578, Non-current liabilities due within one year 51,098, ,774, Other current liabilities 225,547, ,441, Total current liabilities 18,941,373, ,713,791,

20 Item Closing balance of the period Opening balance of the year Non-current liabilities: Long-term borrowings Debentures payable Long-term payables Special payables Projected liabilities Deferred income tax liabilities Other non-current liabilities 1,430,018, ,463,426, Total non-current liabilities 1,430,018, ,463,426, Total liabilities 20,371,391, ,177,218, Owners equity (or shareholders equity): Paid-up capital (or share capital) 3,042,423, ,042,423, Capital reserves 4,506,077, ,506,077, Less: Treasury shares Special reserves Surplus reserves 1,521,231, ,521,231, Provision for general risks Undistributed profit 20,128,807, ,630,245, Total owners equity (or shareholders equity) 29,198,538, ,699,976, Total liabilities and owners equity (or shareholder s equity) 49,569,929, ,877,195, Legal Representative of Person-in-charge of Person-in-charge of the the Company: accounting affairs: accounting department: Wei Jian Jun Li Feng Zhen Ji Wen Jun 20

21 Consolidated Income Statement Prepared by: Great Wall Motor Company Limited Unit: RMB Currency: RMB Audit status: Unaudited Item For the Current Period (July to For last corresponding period (July to the year to the Reporting Period last year to the last corresponding reporting period 1. Total revenue 14,059,272, ,358,052, ,586,645, ,774,891, Including: Operating income 14,058,515, ,358,052, ,585,889, ,774,891, Interest income 756, , Premiums earned Handling charges and commission income 2. Total operating costs 12,051,492, ,833,075, ,881,393, ,412,232, Including: Operating costs 10,166,988, ,198,105, ,546,943, ,963,645, Interest expenses Handling charges and commission expenses Payments on surrender Net claim expenses Net provision for insurance contract reserves Policyholder dividend expenses Reinsurance costs Business tax and surcharges 523,318, ,794, ,508,369, ,476,093, Selling expenses 461,009, ,836, ,367,072, ,338,139, Administration expenses 898,554, ,887, ,503,259, ,676,887, Finance costs 687, ,544, ,430, ,991, Asset impairment loss 934, ,995, ,179, ,457, Add: Gains from changes in fair value (losses are indicated with - ) 15,458, ,731, ,062, ,111, Investment gains (losses are indicated with - ) 5,597, ,768, ,291, ,047, Including: Gains from investment in associated companies and joint ventures 2,050, , ,762, ,722, Exchange gains (losses are indicated with - ) 21

22 Item For the Current Period (July to For last corresponding period (July to the year to the Reporting Period last year to the last corresponding reporting period 3. Operating profit (losses are indicated with - ) 2,028,835, ,531,014, ,727,606, ,403,594, Add: Non-operating income 35,433, ,955, ,170, ,371, Less: Non-operating expenses 18,592, ,315, ,585, ,940, Including: Losses from disposal of non-current assets 12,498, ,205, ,431, ,509, Total profits (total losses are indicated with - ) 2,045,676, ,559,654, ,812,191, ,491,026, Less: Income tax expenses 414,273, ,572, ,226,588, ,312,266, Net profits (net losses are indicated with - ) 1,631,402, ,087,082, ,585,602, ,178,759, Net profit attributable to owners of the parent company 1,631,934, ,084,877, ,586,247, ,172,209, Profit and loss of minority shareholders -531, ,204, , ,550, Earnings per share: (1) Basic earnings per share (RMB per share) (2) Diluted earnings per share (RMB per share) 7. Other comprehensive income -23,640, ,583, , Total comprehensive income 1,607,762, ,087,082, ,565,018, ,178,728, Total comprehensive income attributable to owners of the parent company 1,608,293, ,084,877, ,565,664, ,172,178, Total comprehensive income attributable to minority shareholders -531, ,204, , ,550, Legal Representative of Person-in-charge of Person-in-charge of the the Company: accounting affairs: accounting department: Wei Jian Jun Li Feng Zhen Ji Wen Jun 22

23 Income Statement of the Parent Company Prepared by: Great Wall Motor Company Limited Unit: RMB Currency: RMB Audit status: Unaudited Item For the Current Period (July to For last corresponding period (July to the year to the Reporting Period last year to the last corresponding reporting period 1. Total revenue 13,750,785, ,786,091, ,789,551, ,880,411, Less: Operating cost 10,834,129, ,669,682, ,794,039, ,153,276, Business tax and surcharges 498,549, ,178, ,444,701, ,402,895, Selling expenses 158,179, ,055, ,629, ,070, Administration expenses 782,709, ,996, ,180,715, ,365,457, Finance costs 21,494, ,988, ,154, ,895, Asset impairment loss 256, ,697, ,214, ,703, Add: Gains from changes in fair value (losses are indicated with - ) 15,458, ,731, ,062, ,111, Investment gains (losses are indicated with - ) 2,964, ,253, ,770,943, ,307,951, Including: Gains from investment in associated companies and joint ventures 1,031, , ,916, ,397, Operating profit (losses are indicated with - ) 1,473,890, ,913,991, ,695,412, ,914,743, Add: Non-operating income 19,133, ,246, ,744, ,542, Less: Non-operating expenses 16,473, ,430, ,145, ,822, Including: Losses from disposal of non-current assets 12,109, ,853, ,592, ,210, Total profits (total losses are indicated with - ) 1,476,551, ,932,808, ,748,011, ,962,463, Less: Income tax expenses 268,315, ,045, ,663, ,091, Net profits (net losses are indicated with - ) 1,208,236, ,625,762, ,993,348, ,117,371, Earnings per share: (1) Basic earnings per share (RMB per share) (2) Diluted earnings per share (RMB per share) 6. Other comprehensive income 7. Total comprehensive income 1,208,236, ,625,762, ,993,348, ,117,371, Legal Representative of Person-in-charge of Person-in-charge of the the Company: accounting affairs: accounting department: Wei Jian Jun Li Feng Zhen Ji Wen Jun 23

24 Consolidated Cash Flow Statement January to September 2014 Prepared by: Great Wall Motor Company Limited Unit: RMB Currency: RMB Audit status: Unaudited Item the year to the Reporting Period (January to last year to the last corresponding reporting period 1. Cash flow from operating activities: Cash received from the sale of products and provision of services 50,463,193, ,828,364, Net increase in deposits from customers and placements from bank and other financial institutions Net increase in borrowings from central bank Net increase in placements from other financial institutions Cash received from premiums of original insurance contracts Net cash received from reinsurance operations Net increase in policyholders deposits and investments Net increase in disposal of financial assets held for trading Cash received from interest, handling charges and commission 21, Net increase in placements from banks and other financial institutions Net increase in capital for repurchase Tax rebate received 27,464, ,971, Cash received from other operating activities 184,569, ,544, Cash inflow from operating activities subtotal 50,675,248, ,668,880,

25 Item the year to the Reporting Period (January to last year to the last corresponding reporting period Cash paid for goods purchased and service rendered 33,874,090, ,674,111, Net increase in loans and advances to customers 13,285, Net increase in placements with central bank and other financial institutions Cash paid for claims on original insurance policies Cash paid for interest, handling charges and commission Cash paid for policyholders dividend Cash paid to and for employees 3,851,356, ,000,783, Taxes paid 4,466,730, ,054,737, Cash paid for other operating activities 1,865,434, ,100,371, Cash outflow from operating activities subtotal 44,070,898, ,830,004, Net cash flow from operating activities 6,604,349, ,838,876, Cash flow from investing activities: Cash received from redemption of investments 1,842,000, ,442,000, Cash received from investment gains 6,528, ,352, Net cash received from disposal of fixed assets, intangible assets and other long-term assets 6,302, ,416, Net cash received from disposal of subsidiaries and other business units 95,223, Cash received from other investing activities 131, ,529, Cash inflow from investing activities subtotal 1,854,961, ,722,521,

26 Item the year to the Reporting Period (January to last year to the last corresponding reporting period Cash paid for acquisition and installation of fixed assets, intangible assets and other long-term assets 5,241,852, ,301,702, Cash paid for investments 1,842,000, ,442,000, Net increase in pledged loans Net cash paid for acquisition of subsidiaries and other business units Cash paid for other investing activities 44,935, Cash outflow from investing activities subtotal 7,083,852, ,788,638, Net cash flow from investing activities -5,228,890, ,066,117, Cash flow from financing activities: Cash received from investments 55,000, Including: Cash received by subsidiaries from minority shareholders investments Cash received from borrowings 764,370, Cash received from issuance of debentures Cash received from other financing activities 207,350, ,474, Cash inflow from financing activities subtotal 1,026,720, ,474, Cash paid for debt repayment 182,198, Cash paid for dividend, profit distribution or interest payments 2,494,721, ,739,060, Including: Dividend and profit paid to minority shareholders by subsidiaries 17, ,406, Cash paid for other financing activities Cash outflow from financing activities subtotal 2,676,920, ,739,060,

27 Item the year to the Reporting Period (January to last year to the last corresponding reporting period Net cash flow from financing activities -1,650,199, ,674,586, Effects of changes in exchange rates on cash and cash equivalents -8,942, ,930, Net increase in cash and cash equivalents -283,683, ,088,242, Add: Balance of cash and cash equivalents at the period 5,522,642, ,595,535, Balance of cash and cash equivalents at the period 5,238,959, ,683,778, Legal Representative of Person-in-charge of Person-in-charge of the the Company: accounting affairs: accounting department: Wei Jian Jun Li Feng Zhen Ji Wen Jun 27

28 Cash Flow Statement of the Parent Company January to September 2014 Prepared by: Great Wall Motor Company Limited Unit: RMB Currency: RMB Audit status: Unaudited Item the year to the Reporting Period last year to the last corresponding reporting period 1. Cash flow from operating activities: Cash received from the sale of products and provision of services 47,615,415, ,515,816, Tax rebate received 8,504, ,216, Cash received from other operating activities 112,962, ,970, Cash inflow from operating activities subtotal 47,736,882, ,229,004, Cash paid for goods purchased and service rendered 35,088,876, ,229,637, Cash paid to and for employees 2,750,586, ,949,376, Taxes paid 3,414,230, ,008,812, Cash paid for other operating activities 1,257,263, ,376, Cash outflow from operating activities subtotal 42,510,957, ,011,202, Net cash flow from operating activities 5,225,925, ,217,801,

29 Item the year to the Reporting Period last year to the last corresponding reporting period 2. Cash flow from investing activities: Cash received from redemption of investments 700,000, ,110,000, Cash received from investment gains 1,314,363, ,136,796, Net cash received from disposal of fixed assets, intangible assets and other long-term assets 4,754, , Net cash received from disposal of subsidiaries and other business units 98,450, Cash received from other investing activities 131, ,528, Cash inflow from investing activities subtotal 2,019,249, ,498,031, Cash paid for acquisition and installation of fixed assets, intangible assets and other long-term assets 4,687,815, ,359,801, Cash paid for investments 1,173,209, ,347,063, Net cash paid for acquisition of subsidiaries and other business units 165,000, Cash paid for other investing activities 44,935, Cash outflow from investing activities subtotal 6,026,024, ,751,799, Net cash flow from investing activities -4,006,774, ,253,768,

30 Item the year to the Reporting Period last year to the last corresponding reporting period 3. Cash flow from financing activities: Cash received from investments Cash received from borrowings 764,370, Cash received from issuance of bonds Cash received from other financing activities 13,354, Cash inflow from financing activities subtotal 764,370, ,354, Cash paid for debt repayment 182,198, Cash paid for dividend, profit distribution or interest payments 2,494,704, ,728,653, Cash paid for other financing activities 613,687, Cash outflow from financing activities subtotal 3,290,590, ,728,653, Net cash flow from financing activities -2,526,220, ,715,298, Effect of changes in exchange rate on cash and cash equivalents -188, ,341, Net increase in cash and cash equivalents -1,307,258, ,238,392, Add: Balance of cash and cash equivalents at the period 4,074,446, ,601,505, Balance of cash and cash equivalents at the period 2,767,188, ,839,898, Legal Representative of Person-in-charge of Person-in-charge of the the Company: accounting affairs: accounting department: Wei Jian Jun Li Feng Zhen Ji Wen Jun 30

31 4.2 Audit Report If the quarterly report has been audited by the Certified Public Accountant, the content of such audit report shall be disclosed in the appendix. Applicable Not applicable By order of the Board Great Wall Motor Company Limited Xu Hui Company Secretary Baoding, the PRC, 23 October 2014 As at the date of this announcement, members of the Board comprise: Executive Directors: Mr. Wei Jian Jun, Mr. Liu Ping Fu, Ms. Wang Feng Ying, Mr. Hu Ke Gang and Ms. Yang Zhi Juan. Non-executive Directors: Mr. He Ping and Mr. Niu Jun. Independent Non-executive Directors: Mr. Wong Chi Hung, Stanley, Mr. Lu Chuang, Mr. Liang Shang Shang and Mr. Ma Li Hui. * For identification purpose only 31