Great Wall Motor Co Ltd
Summary (from latest annual report – 2015)
- Total equity : 5.81 billion USD
- Market Cap is 9.8 billion USD ( last price of the stock is 5.72 HKD = 0.73 USD)
- Great Wall Motors Company Limited is a Chinese automobile manufacturer formed in 1984. The company is named after the Great Wall of China. As of 2010, it is China's largest sport utility vehicle (SUV) producer
- Equity of total company increased from 5.09 billion USD in 2014 to 5.81 billion in 2015
- Company has 553 million USD in cash on account (from latest annual report 2015 year)
- Total equity – cash on account = 5.81 billion USD – 553 million USD = 5.25 billion USD
- In 2015 company has 7.6 million USD long-term debt, short – term debt is 45.6 million USD (In 2014 total tebt was zero)
- In latest annual report - total equity increased to 5.81 billion USD from 5.09 billion USD in 2014, total debt is 53.2 million USD in 2015)
- Company's revenue increased in 2015 (latest annual report) to 11.55 billion USD from 9.51 billion in 2014
- Net income in 2015 was 1.22 billion USD, Net income in 2014 was 1.2 billion USD
- In 2015 company paid 471 million USD dividend to its shareholders
Great Wall Motor Co Ltd Subsidiaries
Great Wall Motors Company Limited is a Chinese automobile manufacturer formed in 1984. The company is named after the Great Wall of China. As of 2010, it is China's largest sport utility vehicle (SUV) producer. Great Wall initially manufactured only trucks not producing a sedan car until 2010. The company has been a very successful producer of pick-ups first reaching top position in the Chinese pick-up market in 1998. Great Wall started selling in Europe in 2006, offering small vans. A lot of 500 SUVs were shipped to Italy in 2006 as well. Great Wall products were first available in the Australian market in 2009, and the company was, as of 2010, the only Chinese car manufacturer to sell in the EU. European sales continue, with the 2011 opening of a factory in Bulgaria that assembles three different models from knock-down kits. The Company also manufactures and supplies relative automotive parts and components.
The Group focuses on SUV category and the innovation of its product lines. Through expanding its business in all segments of SUV, the Group is able to fulfill different needs of customers and maintain its leading position in all segments. The position of the Group in SUV market is therefore consolidated.
In respect of sales, the Group has continuously refined its sales network. In order to connect consumers in China, the Group has launched Havel, the first customised automobile e-commerce in China. In addition, the Group has exerted efforts to expand its overseas market. The overseas sales achieved satisfactory result. The Group has established sales companies in Russia, Australia and South Africa, among which the ones in Russia and Australia have already commenced operation.
- China division is worth 9 billion usd
- Chile, Iran, Algeria, Ecuador, Peru and other overseas divisions are worth 1 billion USD
Great Wall Motor standalone subsidiaries and acquisitions :
- Company acquired 50% shareholdings from Shanghai Jiehua Automotive Trim Development Co., Ltd. with consideration amounted to RMB23,408,700.00, upon completion, the Company holds 100% shares of Baoding Jiehua worth 10 million USD
- Great Wall Motor invested 500 million USD in the Russian market
- Standalone subsidiaries : Baoding Nuobo, Macs (Baoding) Auto A/C Systems, Tide Technology and Trade Company Limited, Tianjin Lean, Lean Schoo, Tianjin Boxin, Haval, Automotive Finance, Sinyos Technology and Trade, Japan Motor, Billion Sunny Development, Tianjin Wantong worth 800 million USD
Total = 1.31 billion usd
- During the Reporting Period, the Company has issued share dividends by way of capitalization of the undistributed profits on the basis of 10 new shares for every 10 shares in issue and distributed a cash dividend of RMB2.50 per 10 shares (tax inclusive) out of the undistributed profits to all shareholders, aggregating to 3,042,423,000 shares and RMB760,605,750 (tax inclusive) based on the total of 3,042,423,000 share capital as of 30 June 2015. The Company has also issued shares to all shareholders by way of capitalization of capital reserve (share premium) on the basis of 10 shares for every 10 shares in issue, aggregating to 3,042,423,000 shares. After the issue of the share dividends and the capitalization of capital reserves, the total share capital of the Company will increase by 6,084,846,000 shares to 9,127,269,000 shares.
- The Company put a great emphasis on research and development. As at the end of 2015, the Company applied for 5,333 patents in China and overseas and was granted 3,937 patents for its core technologies, including engine, transmission, new energy and electronics. In 2015, the research and development expenses of the Company amounted to 420 million USD, representing an increase of 7.35% as compared with last year.
Opinion about the company
Fundamentally it is a very good company and in the future we can expect its growth (Total debt is small -53.2 million usd, company has 553 million USD in cash on account, ROE is around 22.5 %).