Financial Performance - The total revenue for Wuling Motors Group Holdings Limited in 2019 was RMB 14,237,305,000, representing a decline of 5.8% compared to the previous year[14]. - The group recorded a net loss of RMB 166,615,000 for the year, influenced by impairment losses and interest expenses totaling RMB 230,000,000[14]. - Gross profit for the year was RMB 1,172,160,000, down 8.6% year-on-year, with a gross margin of 8.2% compared to 8.5% last year[30]. - The company recorded a net loss of RMB 166,615,000, with a loss attributable to shareholders of RMB 124,026,000, resulting in a basic and diluted loss per share of RMB 6.05[34]. - The overall automotive sales in China decreased by 8.2% in 2019 compared to 2018, marking the first decline in a decade[34]. - The company anticipates challenges due to the COVID-19 pandemic but remains committed to its core business and transformation initiatives[26]. - The company faced significant impairment losses of RMB 187,636,000 related to property, plant, and equipment, impacting overall profitability[104]. - The company recorded a net loss of RMB 201,030,000 from other gains and losses, mainly due to impairment losses on property, plant, and equipment[106]. Revenue Segments - The revenue from automotive parts business reached RMB 7,117,211,000, with a passenger vehicle supply ratio exceeding 70%[16]. - Total revenue for the engine and related parts segment reached RMB 2,632,657,000, a significant increase of 67.3% compared to the previous year[59]. - Total revenue for the automotive parts and other industrial services segment was RMB 7,117,211,000, a decrease of 23.9% compared to the previous year[70]. - The total revenue of the specialized vehicle segment for the year ended December 31, 2019, was RMB 4,474,073,000, an increase of 6.6% compared to the previous year[82]. Production and Development - The engine production capacity increased to over 20,000 units per month, exceeding the annual sales plan ahead of schedule[16]. - The company has initiated the development of new energy hybrid engines and electric motor control systems, enhancing its market presence[16]. - The company has successfully developed key components such as the pure electric rear axle and electric control systems, which are now in the market[20]. - The company plans to continue expanding its new energy product range and improve core technologies to drive steady business growth[20]. - The company is focusing on digitalization in product development management and has implemented smart manufacturing projects to improve efficiency by 20%[16]. - The company is actively expanding production capacity and upgrading facilities to meet the growing demand for SUVs and MPVs[72]. Market Strategy and Expansion - The company aims to deepen market penetration and increase revenue by enhancing its business coverage with major domestic brands like Geely and BYD[23]. - The company has established a production base in India with a capacity of 100,000 sets, promoting its internationalization efforts[23]. - The company has expanded its market by supplying components to major clients, including Geely and BAIC New Energy[16]. - Wuling Motors Group continues to deepen cooperation with global top 500 companies, ensuring its business transformation and upgrade[16]. - The company plans to actively adjust marketing strategies to expand its complete vehicle business, particularly in the specialized vehicle segment[34]. Operational Efficiency and Cost Control - The company is focusing on cost control and operational efficiency through comprehensive budget management and performance tracking[26]. - The company aims to enhance competitiveness through necessary improvements and upgrades in automation and intelligent production systems[34]. - Strategic measures have been implemented to control costs and reduce general and administrative expenses, mitigating the adverse impact on profit margins[70]. - The company is committed to developing environmentally friendly transportation in line with national policies on new energy and electric vehicles[37]. Corporate Governance - The company emphasizes the importance of good corporate governance as a foundation for sustainable development[154]. - The board of directors is responsible for major decisions, including approving all policies and monitoring financial performance[157]. - The company has established a strong governance structure with independent directors and committees overseeing key areas such as remuneration and audit[140]. - The company has received annual independence confirmation from all independent non-executive directors as of December 31, 2019[162]. - The company has established a nomination committee to ensure a balanced and independent board composition[157]. Challenges and Future Outlook - The group anticipates a competitive and challenging business environment in China for 2020 and the coming years due to global economic slowdown and the impact of COVID-19[1]. - The management believes that the long-term business potential in the Chinese automotive industry will continue to strengthen[1]. - The overall operating environment for the automotive industry remains challenging, with uncertainties related to the COVID-19 pandemic affecting future performance predictions[99]. - The company plans to leverage its partnership with Faurecia Group to enhance technical support and expand business opportunities in automotive seating and interior systems[92][93].

INTERIM REPORT 2019 中期報告 WULING MOTORS HOLDINGS LIMITED 五菱汽車集團控股有限公司 (Incorporated in Bermuda with limited liability) 五菱汽車集團控股有限公司 （於百慕達註冊成立之有限公司） Entering the Era of HIGH PERFORMANCE with CLEAN ENERGY 走進 高效節能新年代 中期報告 HKEx Stock Code : 305 香港聯交所股份代號 : 305 CORPORATE PROFILE Wuling Motors Holdings Limited ("Wuling Motors Holdings" or the "Company") and its subsidiaries (collectively referred to as the "Wuling Group" or the "Group") are principally engaged in the businesses of trading and manufacturing of auto ...

Financial Performance - The total revenue for Wuling Motors Group Holdings Limited in 2018 was RMB 15,120,119,000, a decrease of 6.2% compared to the previous year[13]. - Net profit for the year was RMB 125,195,000, down 55.6% year-on-year, with profit attributable to shareholders decreasing by 59.2% to RMB 70,673,000[13]. - Gross profit for the year was RMB 1,282,825,000, down 20.0% due to a significant decline in the engine and related parts segment[38]. - The group's gross profit margin decreased to 8.5% for the year ended December 31, 2018, down from 9.9% in the previous year[113]. - Operating profit for the year was RMB 12,926,000, down 91.3% year-on-year[58]. - Other income totaled RMB 162,115,000, an increase of 14.7% year-over-year, driven by higher sales of waste materials, interest income, rental income, and government subsidies[114]. - Sales and distribution costs decreased to RMB 244,103,000, a reduction of 10.9% compared to the previous year[117]. - Research and development expenses decreased by 13.3% to RMB 140,599,000 for the year ended December 31, 2018[119]. - Financing costs decreased by 8.3% to RMB 133,105,000, including RMB 35,407,000 related to convertible loan notes[119]. - Basic earnings per share were RMB 2.73, a decrease of approximately 55.9%[123]. Sales and Market Performance - The group sold a total of 110,200 vehicles in 2018, with 1,800 units being new energy vehicles, and the modified vehicle market sales increased by 53%[17]. - Sales volume of specialized vehicles reached approximately 110,200 units in 2018, an increase of about 47.5% year-on-year[43]. - The sales of modified vehicles (trucks and passenger cars) reached 105,000 units, reflecting a growth of 53.5% year-on-year[43]. - The market share for modified vehicles reached 65%, maintaining a leading position in the industry[17]. - The company is focusing on expanding its specialized vehicle segment to counteract the slowdown in passenger vehicle growth[43]. - In 2018, the company sold a total of 1,800 electric vehicles, including electric logistics vehicles and electric sightseeing vehicles[44]. Product Development and Innovation - The group successfully developed over 20 new component products for passenger vehicles, including the CN120S independent rear suspension, which is now ready for mass production[14]. - The company is focusing on the development of new energy vehicles and has initiated research on hybrid and pure electric power systems[17]. - The group is actively developing new electric vehicle projects, including the L100 electric sightseeing vehicle and EN300P electric logistics vehicle[44]. - The group has established a joint venture with Zhendi Technology to develop electric motor controllers and core components for new energy vehicles[24]. - The company is focusing on the development of high-end passenger vehicle components to meet market demands[49]. Strategic Partnerships and Collaborations - The group actively pursued partnerships and collaborations to enhance product transformation and upgrade[19]. - The group has established strategic partnerships with several global companies, including a joint venture with Faurecia for automotive seating and interiors, enhancing production capabilities[21]. - The group is actively pursuing partnerships with Fortune 500 companies to enhance its core technology and product transformation[21]. - The company has established joint ventures with Faurecia to develop automotive seating and interior systems, which are expected to enhance product transformation and upgrade[45]. - A new joint venture for automotive emission control systems was signed in October 2018, aimed at integrating market resources and technology capabilities[45]. Operational Efficiency and Automation - The group has implemented 108 automated production lines and 807 robots, achieving an average automation rate of 60% in key factories[20]. - The company is strategically expanding its production capacity, including upgrades to existing facilities and the establishment of a new "smart factory" for high-end passenger vehicle chassis components[81]. - The company has initiated a joint venture to develop electric vehicle control systems, with initial testing of the first model currently underway[68]. - The company has implemented strict cost control measures, resulting in a slight reduction in general and administrative expenses as well as R&D spending[77]. - The group aims to reduce costs and improve efficiency through detailed management strategies, including lowering bad receivables and procurement costs[25]. Corporate Governance - The company has fully complied with the corporate governance code and best practices as of December 31, 2018[173]. - The board of directors is committed to ensuring transparency and accountability in the company's operations[176]. - The company has established corporate governance practices tailored to its needs, emphasizing the importance of good governance for sustainable development[175]. - The board includes independent directors with over 20 years of experience in finance and investment, enhancing the company's governance structure[157][160]. - The company has established a nomination committee to ensure a balanced and independent board structure, with three independent non-executive directors[182]. Future Outlook and Challenges - The company believes in the long-term growth potential of the Chinese automotive industry, despite current market challenges[53]. - The company anticipates a competitive and challenging business environment in China for 2019 and the following years[54]. - The group will closely monitor its financial and liquidity position to formulate appropriate financing strategies[126]. - The company expects to leverage its partnerships and operational strategies to convert challenges into opportunities in the automotive sector[53].