Production Capacity and Facilities - The Group completed the restructuring and capital increase for Wuling New Energy, which now has a production capacity of 200,000 units per year and occupies an area of approximately 550,000 square meters[5] - The Group's production facilities in Liuzhou, Qingdao, and Chongqing have a combined annual production capacity exceeding 2 million sets/units of automotive components[14] - The Group's production plant in India maintained profitability in 2022, focusing on automotive component business for a renowned PRC car manufacturer[13] - The Group's new energy vehicle business segment is supported by advanced automated production lines for welding, painting, and final assembly[5] - The company's overseas production facilities in Indonesia and India achieved satisfactory performance in 2022, with the Indonesian plant continuing to profit due to local demand growth[40] - The company's main production facilities are located in Liuzhou, Qingdao, Chongqing, India, and Indonesia[127] Financial Performance - The vehicles' power supply systems division recorded a revenue increase to RMB 2,896,038,000 and an operating profit of RMB 30,155,000 in 2022[10] - Total revenue of the automotive components and other industrial services division for the year ended 31 December 2022 was RMB6,047,688,000, representing a decrease of approximately 15.0% compared to the previous year[39] - Revenue for 2022 was approximately RMB 12,595,607,000, representing a decline of approximately 12.6% compared to the previous year[99] - Net profit for 2022 was RMB 40,038,000, with profit attributable to owners of the company at RMB 22,611,000[99] - Revenue for 2022 was RMB 12,595,607 thousand, a decrease from RMB 14,408,507 thousand in 2021[160] - Profit before tax for 2022 was RMB 46,597 thousand, compared to a loss of RMB 45,914 thousand in 2021[160] - Net profit attributable to the owner of the company for 2022 was RMB 22,611 thousand, compared to a loss of RMB 24,148 thousand in 2021[160] - Total assets as of 31 December 2022 were RMB 15,545,416 thousand, an increase from RMB 15,021,524 thousand in 2021[160] - Net assets attributable to the owner of the company as of 31 December 2022 were RMB 1,913,112 thousand, compared to RMB 1,880,635 thousand in 2021[160] - The fair value of investment properties decreased by RMB 1,745 thousand in 2022, compared to a decrease of RMB 12,543 thousand in 2021[161] Cost Control and Operational Efficiency - The Group aims to optimize cost control, enhance operational efficiency, and implement measures to reduce procurement and manufacturing costs[9] - The company developed and released a series of industrial software to enhance operational efficiency and management effectiveness[105] Product Development and Market Expansion - The Group has diversified its product portfolio by developing motors and electronic controls for external markets, including SAIC Maxus, Dongfeng Motor, and Changan Automobile[10] - The Group aims to accelerate product transformation and upgrading through deepening cooperation with world-renowned enterprises, focusing on lightweight, electrification, and intelligent development, and advancing into the high-end passenger vehicle supporting field[81] - The Group plans to promote the launch of new energy electric logistics vehicle series, including models G200 and G105, to create market opportunities[81] - The Group has developed higher quality and more functional commercial vehicles, such as side-opening micro-vans, electric logistics vehicles, and refrigerated trucks, to meet market demand and enhance regulatory standards[97] - The company successfully entered the US and Japanese markets with its new energy light logistics vehicles, becoming the first Chinese company to export such vehicles to the US[103] - The company plans to accelerate the transformation and upgrade of its products towards lightweight, electric, and intelligent solutions[111] - The company aims to enter the high-end component and part supply market through the development of high-tech flagship products[111] - The company is accelerating the launch and promotion of new energy electric logistics vehicle models, such as G200 and G105[111] - Wuling Motors Holdings has sold over 20,000 electric logistic vehicles since 2020 and expanded its distribution network to over 130 dealerships nationwide[149] - The company has extended its products to overseas markets, including Japan and the United States, with expected growth in sales volume in the coming years[149] - The new energy vehicle segment achieved significant breakthroughs, selling over 20,000 electric logistics vehicles since 2020 and establishing a nationwide dealer network with over 130 dealers[194] ESG and Corporate Governance - The Group's ESG report discloses the gender ratio in the workforce as of 31 December 2022, with no specific targets set for gender diversity[32] - The Group's internal control and risk management systems were reviewed, with no significant control failures or deficiencies identified[28] - The Group's nomination committee held two meetings in 2022 to review board appointments and recommend candidates based on meritocracy[21][19] - The company has established a Board Diversity Policy, aiming to appoint a female director with suitable skills and experience by the end of 2024[57] - The company is currently developing relevant recruitment and selection procedures, expected to be implemented within the year[57] - The company's internal audit department reviewed and approved the audit scope and plan for the year ended 31 December 2022, focusing on higher potential risk areas[52] - The company has implemented management measures for supervision, employee discipline, and anti-corruption to strictly manage the behaviors of directors and employees[53] - The Board is responsible for maintaining an adequate internal control and risk management system to safeguard shareholder investments and the Group's assets, reviewing its effectiveness annually with the participation of the Audit Committee[69] - The Group's dividend policy outlines the principles and guidelines for distributing dividends to shareholders, ensuring alignment with the Company's financial health and strategic goals[74] - The Group has established written guidelines and policies for securities transactions by employees likely to possess unpublished price-sensitive information, ensuring compliance with the Model Code[67][68] Financial Transactions and Capital Management - The company's external auditor, KPMG, received remuneration for audit and non-audit services provided to the Group for the year ended 31 December 2022[51] - The company successfully placed 223,000,000 shares at HK$2.47 per share, representing approximately 6.76% of the issued share capital[145] - Wuling Motors Holdings completed a capital reorganization, consolidating 1,521,400,000 convertible preference shares into 380,350,000 ordinary shares[136] - The company's substantial shareholders, including Wuling Motors (Hong Kong) Holdings Limited, hold 56.54% of the issued share capital[142] - Wuling Motors Holdings adopted a share option scheme on 10 November 2021 to incentivize employees and align interests with long-term development[150] - The company's net proceeds from the share placement and subscription were used to strengthen its financial position and support future growth[148] - The net proceeds from the Subscription amounted to approximately HK$537.8 million, with HK$300 million (55.8%) allocated for R&D projects of new model electric logistic vehicles, HK$95 million (17.7%) for repayment of short-term borrowings, and HK$142.8 million (26.5%) for future business development or investments[195] - The Company's net Subscription Price, after deducting commission, fees, costs, and expenses, was estimated to be approximately HK$2.41 per Subscription Share[195] R&D and Innovation - The company utilized HK$300.0 million of net proceeds for R&D projects of new model electric logistic vehicles as of 31 December 2022[167] - The related amount incurred by Wuling Industrial on the R&D Projects up to 31 December 2021 was RMB144.7 million (equivalent to approximately HK$174.8 million)[170] - The unutilised Net Proceeds of approximately HK$125.2 million will be fully utilised on the R&D Projects on or before 31 December 2022[170] - The Company intended to apply RMB55.6 million (equivalent to approximately HK$65.6 million) as part of its capital contribution to Wuling New Energy upon completion of the Capital Increase[187] - The Company plans to forge a new energy vehicle business segment by investing in Wuling New Energy, focusing on R&D, manufacture, and sale of new energy vehicles in the PRC[170] - The balances out of the Net Proceeds earmarked for R&D Projects and capital contribution to Wuling New Energy had been fully utilized as at 31 December 2022[170][187] Market and Industry Outlook - The company is optimistic about the potential of the automotive industry in Indonesia, given the country's large population and recent positive economic development[40] - The company expects continued pressure on production and operation in 2023 due to the post-COVID-19 pandemic era and global economic downturn[107] - Wuling Motors Holdings is ranked among the Global Top 100 Enterprises of Automotive Components Suppliers since 2018[127] - The Company's largest customer and supplier for the year ended 31 December 2022 was SAIC-GM-Wuling Automobile Co., Ltd., in which Guangxi Automobile Holdings Limited holds 5.8% of its registered capital[193] - The aggregate purchases attributable to the Group's largest supplier and the five (5) largest suppliers taken together accounted for respectively 21.4% (2021: 24.0%) and 35.4% (2021: 38.8%) of the Group's total purchases for the year[178] Employee and Workforce Management - The company's total employee-related expenses under continuous contracts for the year ended 31 December 2022 amounted to HKD83,138,200, with a net balance of HKD43,059,730 after deductions[37] - The internal audit department's scope of review and audit plan for the year ended December 31, 2022, focused on areas with relatively higher perceived risks and were approved by the Audit Committee in conjunction with Management[70] Financial Statements and Reporting - The Group's performance for the year ended December 31, 2022, is detailed in the "Consolidated Statement of Profit or Loss and Other Comprehensive Income" on pages 155-156 of the annual report[64] - The Group's reserves movement details for the year are set out in the "Consolidated Statement of Changes in Equity" on pages 159-160 of the annual report[92][93]

股份數目 金 額 千港元 已 發 行 及 已 繳 足： 每股面值0.004港元之普通股 i. 根據本公司股東於二零二二年六月十六日召開的本公司股東週年大會上通 過 的 各 項 普 通 決 議 案：(i) 1,521,400,000股本公司每股面值0.001港元的法定但 未發行可換股優先股合併為380,350,000股本公司每股面值0.004港元的經合併 可 換 股 優 先 股；及；(ii) 380,350,000股本公司每股面值0.004港元的法定但未發 行的經合併可換股優先股重新分類為380,350,000股本公司每股面值0.004港 元 的 普 通 股。 同 時，尤 其 是 本 年 度 上 半 年，其 他 客 戶 之 銷 售（其 中 部 分 客 戶 之 生 產 設 施 位 於 新 冠 疫 情 零 星 爆 發 之 地 區）由 於 停 工 及 生 產 中 斷 而 受 到 不 利 影 響。 年 內 外 部 客 戶 之 銷 售 總 額（以 排 量 介 乎1.0L至1.6L之 發 動 機 為 主）減 少 約 25.7%至人民幣1,084,553,000元，佔 該 分 部 總 收 入 之 約37%。 – 22 – 得 ...

INTERIM REPORT 2022 中期報告 WULING MOTORS HOLDINGS LIMITED 五菱汽車集團控股有限公司 五菱汽車集團控股有限公司 (Incorporated in Bermuda with limited liability) （於百慕達註冊成立之有限公司） INTERIM REPORT 香港聯交所股份代號 Entering the Era of no Limit INTELLIGENCE andDILIGENCE with 新無止境 智啟未來 CORPORATE PROFILE 企業簡介 Wuling Motors Holdings Limited ("Wuling Motors Holdings" or the "Company") and its subsidiaries (collectively referred to as the "Group") are principally e n g a g e d i n t h e b u s i n e s s e s o f t r a d i n g a n d manufacturing of automoti ...

Financial Performance - In 2021, the Group reported full-year revenue of RMB 14,408,507,000, representing a year-on-year decrease of 6.3%[15]. - The Group recorded a net loss of RMB 45,860,000 in 2021, an increase of 109.7% compared to the net loss of RMB 21,867,000 in 2020[15]. - Loss attributable to owners of the Company was RMB 24,148,000 in 2021, a decrease of 27.7% compared to the previous year due to a substantial reduction in finance costs[15]. - The Group's revenue from the automotive components business in 2021 was RMB 7,114,330,000, showing a slight decrease compared to 2020[25]. - Revenue from external markets, excluding SGMW, reached RMB 2,105,445,000, representing a significant year-on-year increase of 50.2%[25]. - The total revenue of the vehicles' power supply systems division for the year ended December 31, 2021, was RMB 2,759,012,000, representing a decrease of 11.4% compared to the previous year due to a slowdown in engine set sales[64]. - Total revenue for the automotive components and other industrial services division was RMB 7,114,330,000, representing a slight decrease of 0.5% compared to the previous year[89]. - Total revenue for the commercial vehicles assembly division was RMB 4,489,599,000, a decrease of 11.9% compared to the previous year, primarily due to semiconductor supply issues[120]. - FL Seating reported total revenue of RMB 265,607,000 for 2021, a decrease of 31.3% compared to the previous year[157]. - FL Interior experienced a total revenue of RMB 416,047,000, marking a substantial increase of 114.4% compared to the previous year[161]. - FL Emission reported total revenue of RMB 631,285,000 in 2021, a moderate decrease of 6.4% compared to the previous year[161]. - AAM JV recorded total revenue of RMB 58,092,000 in 2021, with an operating loss of RMB 16,859,000, an improvement from the previous year's loss of RMB 24,907,000[164]. - Gross profit for the year was RMB 1,085,847,000, a decrease of 10.2% from the previous year, with a gross profit margin of 7.5% down from 7.9%[168]. Challenges and Market Conditions - The Group faced challenges including high raw material prices and a shortage of chips, which affected production levels of major customers[14]. - The overall economic recovery in China since the second half of 2020 positively influenced market sentiment and growth momentum[20]. - The company faced adverse impacts from rising raw material costs and semiconductor supply constraints, affecting production schedules[167]. - The sales decrease in the commercial vehicles assembly division is viewed as transitory, primarily due to semiconductor supply shortages and increased R&D costs[137]. Strategic Focus and Development - The Group aims to leverage opportunities arising from "electrification, intelligence, networking, and sharing" in the automobile industry[14]. - The Group is committed to innovation-driven development and actively launching new businesses to ensure steady growth[14]. - The Group's strategic focus includes enhancing production safety and pandemic prevention measures[14]. - The Group plans to establish a new joint venture, Liuzhou Wuling New Energy Automobile Co., Ltd., to integrate and restructure its new energy vehicle-related assets and businesses[36]. - The Group aims to enhance innovation-driven development and optimize industrial structure in alignment with the national "14th Five-Year Plan" for high-quality growth[44]. - The Group aims to maintain a prominent market share of existing popular models while exploring future growth opportunities in the new energy vehicle segment[149]. Research and Development - The Group launched 810 product development projects in 2021, with 316 achieving Start of Production (SOP) status[43]. - Research and development expenses increased significantly due to the active implementation of new business projects, including new energy vehicle projects[169]. - The division is focusing on research and development of products applicable for new energy vehicles to maintain competitiveness in the market segment[84]. - The company plans to prudently continue research and development projects aligned with its strategic business opportunities[3]. Production and Capacity - The Group's main production facilities are located in Liuzhou, Qingdao, Chongqing, India, and Indonesia, focusing on both commercial and new energy vehicles[5]. - The division's production capacity exceeds 2 million sets/units of automotive components annually, enabling it to target business opportunities from sizable car manufacturers[105]. - The company has completed the construction of a new production line for mass production of electric motor control systems for new energy vehicles, aiming to capture opportunities in the fast-growing EV market in China[79]. - The production plant in Indonesia became profitable in 2021 after years of losses, benefiting from local demand growth in the automotive industry[110]. - The Indian production plant maintained profitability in 2021, focusing on automotive components for a renowned PRC car manufacturer[113]. Financial Management - The Group aims to maintain a financially healthy position amidst the dynamic business environment and risks associated with the automobile industry[194]. - The Group will continue to closely monitor its liquidity and financial position in response to the unprecedented adverse market conditions[196]. - The Group's financial strategy will be adjusted based on the monitoring of market conditions and financial market trends[196]. - The Group considers its exposure to fluctuations in exchange rates to be reasonable, given the relative size of its assets and liabilities denominated in RMB[200]. Customer and Market Expansion - The Group expanded its customer base by optimizing customer structure and entering new markets, including Great Wall Motor and overseas markets like Iran and Italy[25]. - The Group established a nationwide distribution network with over 120 dealerships, facilitating market expansion[139]. - The Group anticipates that the sales volume of overseas orders, including those from Japan and the United States, will gradually increase in 2022[139]. - Continuous efforts in market diversification have led to encouraging initial responses from projects with external customers, focusing on the new energy sector[99].

Financial Performance - For the six months ended June 30, 2021, total revenue was RMB 7,162,782,000, representing a significant increase of 25.5% compared to the same period in 2020[6]. - Gross profit for the period was RMB 493,345,000, reflecting a substantial increase of 97.3% year-on-year, although the gross profit margin improved only to 6.9% due to rising raw material costs and semiconductor supply constraints[12]. - The Group reported a net loss of RMB 45,226,000, which is an 84.6% decrease from the net loss of RMB 294,025,000 in the corresponding period of 2020[12]. - Loss attributable to the owners of the Company decreased by 89.4% to RMB 21,015,000 compared to RMB 198,697,000 for the same period in 2020[12]. - Basic loss per share for the six months ended June 30, 2021, was RMB 0.64 cents, significantly improved from RMB 7.50 cents in the corresponding period in 2020[153]. - Other income totaled RMB 92,261,000, representing an increase of 16.1% compared to the same period in 2020, driven by increased rental income and government grants[154]. - The Group experienced a net loss of RMB 12,542,000 from other gains and losses, primarily due to losses on the disposal of property and equipment[154]. - The share of results from associates reported a total net operating profit of RMB 2,192,000 for the six months ended June 30, 2021, benefiting from the recovery of the PRC economy[155]. - The Group's total revenue for the six months ended June 30, 2021, was RMB 7,162,782,000, representing a significant increase of 25.5% compared to the same period in 2020[148]. Revenue Breakdown - The automotive components and other industrial services division achieved sales revenue of RMB 3,054,930,000, representing a year-on-year increase of 41.3% in the first half of 2021[17]. - The vehicles' power supply system division registered revenue of RMB 1,453,583,000, reflecting a year-on-year growth of 20.9% in the first half of 2021[24]. - Total sales volume for the commercial vehicle division reached 59,600 vehicles, with total revenue of RMB 2,606,796,000, representing an 11.7% year-on-year increase in the first half of 2021[30]. - The total revenue of the automotive components and other industrial services division for the six months ended June 30, 2021, was RMB 3,054,930,000, representing a substantial increase of 41.3% compared to the same period in 2020[89]. - The Group's total revenue for the commercial vehicles assembly division for the six months ended June 30, 2021, was RMB 2,606,796,000, representing an increase of 11.7% compared to the same period in 2020[109]. Operational Highlights - The Group's main production facilities are located in Liuzhou, Qingdao, Chongqing, India, and Indonesia, focusing on both commercial and new energy vehicles[2]. - The Group has been ranked as one of the Global Top 100 Enterprises of Automotive Components Suppliers since 2018, indicating its strong position in the automotive supply chain[2]. - The overall recovery of the PRC economy and gradual improvement in market sentiment contributed positively to the Group's performance in the first half of 2021[6]. - The Group aims to continuously formulate appropriate strategies and expansion programs for its core businesses, including automotive components and power supply systems[6]. - The Group's project management capabilities were strengthened to ensure timely delivery of key projects, enhancing operational efficiency[62]. Challenges and Risks - The challenging business environment due to global economic complexities and uncertainties related to the pandemic continues to impact the Group's performance[6]. - The Group's gross profit performance was pressured by rising raw material costs and semiconductor supply constraints[148]. - The Group continues to implement cost control measures to mitigate the adverse impact of tightening gross profit margins[160]. - The Group's financial strategy will be adjusted based on ongoing market assessments and financial conditions[184]. Research and Development - The increase in administrative and research and development expenses was partly due to the active implementation of new business projects, including new energy vehicle initiatives[12]. - The division continues to focus on research and development and marketing programs for existing and new products, particularly those applicable to new energy vehicles[84]. - The company is implementing various technological upgrades and enhancement projects for new energy vehicles, impacting profitability performance[75]. - The Group completed 67% of its annual patent application target by June 2021, representing a year-on-year growth of 37% in patent applications[52]. Market and Customer Focus - The company focused on ensuring an uninterrupted supply of components to its main customer, SGMW, while enhancing product technology and innovation[17]. - The division is actively expanding its customer base beyond SGMW, with initial positive responses from diversification projects including Great Wall Motor and Beiqi Foton Motor[92]. - The Group is actively pursuing the development of electric vehicles, including electric logistic vehicles and sightseeing buses, to align with national policies on clean energy[117]. Financial Position - Total assets as of June 30, 2021, amounted to RMB 14,643,734,000, while total liabilities were RMB 11,772,029,000[168]. - Total equity attributable to the shareholders of the Company was RMB 1,887,331,000 as of June 30, 2021, with a net asset value per share of approximately RMB 57.2 cents[181]. - The Group's liquidity and capital structure were primarily supported by bank borrowings and discounted bills receivable[175]. - The Group's financial condition is deemed stable, allowing it to withstand current market risks and challenges[183].

Financial Performance - The company achieved a total revenue of RMB 15,382,213,000 in 2020, representing an 8% increase compared to the previous year [15]. - The net loss for 2020 was RMB 21,867,000, significantly reduced from a net loss of RMB 166,615,000 in 2019 and RMB 294,025,000 in the first half of 2020 [15]. - The gross profit for the year was RMB 1,209,428,000, reflecting a moderate growth of 3.2% year-on-year [39]. - The gross margin slightly decreased to 7.9% for the year, down from 8.2% in the previous year due to the impact of COVID-19 [39]. - The total revenue for the year ended December 31, 2020, was RMB 15,382,213,000, an increase of 8% compared to the previous year [39]. - The company reported a revenue increase of 10.1% for Guangxi Weixiang, reaching RMB 590,978,000, with a net profit increase of 9.0% [107]. - The company recorded a significant decline in revenue for its automotive interior systems, with total revenue of RMB 194,055,000, down 60.2% year-on-year [111]. - The total revenue for the specialized vehicle segment was RMB 5,097,664,000, an increase of 13.9% compared to the previous year [94]. - The automotive parts and other industrial services division reported total revenue of RMB 7,148,068,000, a slight increase of 0.4% year-on-year [77]. Strategic Initiatives - The company maintained its strategic focus and implemented various measures to stabilize growth and improve efficiency during the pandemic [15]. - The company is committed to transforming its business towards new energy directions, enhancing its product and customer structure [17]. - The company is focusing on product innovation to drive market competition and is transitioning towards lightweight, electric, and intelligent vehicle production [29]. - The company is actively exploring partnerships with leading international firms to enhance component technology and market resources, aiming for product upgrades and business performance improvement [48]. - The company is committed to developing environmentally friendly transportation in line with national policies, leveraging over a decade of experience in new energy vehicle development [46]. - The company plans to continue investing in the new energy vehicle sector, focusing on the development of new energy logistics vehicles [31]. - The company is actively adjusting its marketing strategy to expand its specialty vehicle business in response to market demand [43]. - The company is focused on restructuring its product portfolio to respond to market demands and ensure continuous growth in the automotive industry [53]. Operational Efficiency - The company has established 135 automated production lines and deployed 924 robots, improving production efficiency by an average of 20% [25]. - The company aims to enhance operational efficiency through comprehensive budget management and cost control measures [32]. - The company has implemented new strategies to improve operational efficiency and reduce costs, aiming for a more sustainable business model [158]. - The company plans to establish advanced and highly automated facilities across different regions in China to enhance production efficiency and control costs [53]. Market Position and Growth - The company has been recognized as one of the top 100 global automotive parts suppliers since 2018, highlighting its competitive position in the market [2]. - The company focused on developing specialized vehicles, including new energy vehicles, to capture market opportunities in the rapidly growing automotive sector [2]. - The company is enhancing its investment layout in the new energy vehicle industry to tap into sustainable development potential [22]. - The company is committed to improving customer service standards and responding quickly to customer feedback, which is crucial for the business outlook of the specialized vehicle division [104]. - The management believes that the long-term business potential in the Chinese automotive industry will continue to strengthen despite the challenging business environment [56]. Research and Development - The company has increased its R&D spending to support new development projects for new energy vehicles and electric vehicle components [39]. - Research and development expenses increased by 5.2% to RMB 205,167,000, indicating ongoing investment in new energy vehicle projects [119]. - The company is developing a new 2.0L engine model (NPT20) to meet specific customer needs in the passenger vehicle sector, enhancing its market position [67]. - The company has initiated various projects related to electric vehicles, including electric motors, control equipment, and hybrid solutions, to capture future business opportunities in the new energy sector [46]. Governance and Management - The company has a strong governance framework in place, ensuring compliance with the corporate governance code as of December 31, 2020 [180]. - The management team emphasizes the importance of good corporate governance as a foundation for sustainable development [180]. - The board of directors is responsible for major decisions, including approving policies, strategies, and financial performance [180]. - The company has established a nomination committee to ensure that the board's composition meets the business and development needs [189]. - The board has been actively involved in reviewing and approving significant transactions and related party transactions [189]. Challenges and Risks - The company has faced operational losses in 2020 due to the impact of COVID-19, affecting the performance of its joint ventures [46]. - The group recorded a loss of RMB 18,811,000 from fair value changes in financial instruments and a net foreign exchange gain of RMB 24,114,000 [126]. - The group implemented various cost control measures to mitigate the adverse effects of margin compression [126]. - The company's current liabilities increased significantly by approximately 44.5%, reaching RMB 1,884,523,000 compared to RMB 1,304,476,000 as of December 31, 2019 [51].

Financial Performance - Total revenue for the first half of 2020 was RMB 5,708,780,000, representing a decrease of 7.1% compared to the same period in 2019[13]. - Gross profit for the period was RMB 249,991,000, a significant decrease of 52.1% compared to the corresponding period in 2019, resulting in a gross profit margin of 4.4%[17]. - The Group reported a net loss of RMB 294,025,000 for the first half of 2020, compared to a net profit of RMB 12,450,000 for the same period in 2019[18]. - Loss attributable to the owners of the Company increased to RMB 198,697,000 for the first half of 2020, compared to a loss of RMB 3,043,000 for the same period in 2019[18]. - The decline in revenue was primarily attributed to significant disruptions caused by the COVID-19 outbreak, particularly in the first quarter of 2020[128]. Revenue Breakdown - Revenue from the engines and parts division showed some improvement, while revenue from the specialized vehicles division remained solid during the period[13]. - Total revenue for the engines and related parts division was RMB 1,202,335,000 for the first half of 2020, representing a 51.3% increase compared to the same period in 2019[64]. - Total revenue for the automotive components and other industrial services division was RMB 2,162,684,000 for the six months ended June 30, 2020, representing a decrease of 28.3% compared to the same period in 2019[81]. - The total revenue of the specialized vehicles division for the six months ended June 30, 2020, was RMB 2,333,941,000, maintaining a similar level compared to the corresponding period in 2019[97]. Sales Performance - The total number of motor vehicles sold in the PRC decreased by 16.9% to approximately 10.26 million vehicles during the six months ended 30 June 2020[23]. - Sales volume of specialized vehicles in the first half of 2020 was approximately 52,600 vehicles, down from 60,900 vehicles in the same period in 2019[27]. - Sales of redecorated vehicles (for goods and for passengers) contributed approximately 51,400 vehicles, compared to 58,800 vehicles sold in the corresponding period in 2019[27]. - Approximately 1,900 electric vehicles, including electric logistics and sightseeing vehicles, were sold in the first half of 2020, an increase from 1,100 vehicles sold in the same period in 2019[29]. Operational Challenges - The adverse impact on profit margins was exacerbated by additional costs related to health and safety measures implemented during the pandemic[17]. - The economic environment in the PRC faced significant challenges, including intensified competition and new industry challenges[19]. - The Group's joint ventures with Faurecia recorded operating losses during the six months ended 30 June 2020 due to COVID-19 disruptions[30]. - The division recorded an operating loss of RMB 46,920,000 due to lower gross profit margins and additional costs related to health and safety measures during production resumption[69]. Research and Development - Increased research and development expenses were incurred due to continuous launches of new products and technological upgrades[18]. - Research and development expenses increased significantly by 234.8% to RMB 102,796,000 due to continuous launches of new products and technological upgrades[143]. - The Group is focused on re-engineering its product structure to secure continued growth in the automobile manufacturing business, including the expansion of its car assembly business and development of new energy vehicles[49]. - The Group aims to optimize production facilities' positioning and scale operations to enhance efficiency and control costs through collaborations with joint ventures and business partners[49]. Financial Position - The Group's unaudited net assets as of June 30, 2020, amounted to RMB 2,177,589,000, a decrease from the audited net assets of RMB 2,305,323,000 recorded at December 31, 2019[41]. - The unaudited net current liabilities of the Group increased by approximately 63.6% to RMB 2,134,251,000 compared to the audited net current liabilities of RMB 1,304,476,000 as of December 31, 2019[43]. - Cash at bank balances, including pledged bank deposits, increased by 122.4% to RMB 3,372,643,000, reflecting the Group's strategic management to strengthen liquidity[44]. - The Group's financial position is being closely monitored to ensure sustainability amid risks associated with excessive capacities and dynamic market situations[46]. Strategic Initiatives - The Group announced a Rights Issue exercise to raise approximately HK$205.01 million by issuing new shares at a subscription price of HK$0.20 per rights share[34]. - The Group is focusing on developing new energy vehicles and has attained key technologies in electric motors, vehicle control, and integration[29]. - The Group's strategy includes monitoring the changing business environment and applying practical short-term measures to address challenges[46]. - The Group plans to enhance product quality and technical capabilities through quality service-oriented and technical re-engineering programs to remain competitive in the industry[46]. Market Outlook - The Group's management is optimistic about a solid economic recovery in the second half of 2020, despite the current unfavorable business environment[44]. - The business environment in the PRC is expected to remain highly competitive and challenging, influenced by global economic uncertainties and the ongoing impacts of COVID-19[54]. - Despite challenges, the Group anticipates steady growth in the PRC economy, driven by rising household income and increased demand for motor vehicles[54]. - The management is confident in the long-term business potential in the PRC automobile industry, supported by the backing of Guangxi Automobile and other customers[60].

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].