长城汽车股份有限公司great wall motor company limited

--gREATWALLMOTORCOMPANYLIMITED*(ajointstockcompanyincorporatedinthePeople’sRepublicofChinawithlimitedliability)(Stockcode:2333)ANNOUNCEMENTOFINTERIMRESULTSFORTHESIXMONTHSENDED30JUNE2008FINANCIALHIgHLIgHTSFortheForthesixmonthsendedsixmonthsended30June200830June2007(unaudited)(unaudited)Change(%)REVENUE(RMBMillion)4,6103,34537.8Profitbeforetax(RMBMillion)486478.7Profitaftertaxattributabletoequityholdersoftheparent(RMBMillion)4084060.5EarningspershareRMB0.37RMB0.42-.9-2-Theboardofdirectors(the“Board”)ofGreatWallMotorCompanyLimited(the“Company”)ispleasedtoannouncetheunauditedcondensedconsolidatedincomestatementoftheCompanyanditssubsidiaries(the“Group”)forthesixmonthsended30June2008(the“period”)andthecondensedconsolidatedbalancesheetoftheGroupasat30June2008whichhavebeenreviewedbytheCompany’sauditor,Ernst&Young,togetherwiththecomparativefiguresforthesameperiodof2007asfollows:1.CONDENSEDCONSOLIDATEDFINANCIALSTATEMENTSCondensedConsolidatedIncomeStatementSixmonthsended30June20082007UnauditedUnauditedNotesRMB’000 RMB’000REVENUE(i)4,609,6883,344,945Costofsales(3,663,992)(2,544,642)Grossprofit945,696800,303Otherincomeandgains(i)42,1332,64Sellinganddistributioncosts(228,284)(67,668)Administrativeexpenses(154,780)(00,6)Otherexpenses(117,399)(83,45)Financecosts(ii)(7,161)(2,450)Shareofprofitsandlossesofassociates3,5313,23Shareofprofitsandlossesofjointly-controlledentities2,2446,262PROFITBEFORETAX(iii)485,980477,725Tax(iv)(58,823)(37,983)PROFITFORTHEPERIOD427,157439,742ATTRIBUTABLETO:Equityholdersoftheparent408,327406,047Minorityinterests18,83033,695427,157439,742EARNINGSPERSHAREATTRIBUTABLETOORDINARYEQUITYHOLDERSOFTHEPARENT-Basic(v)RMB0.37RMB0.42DIVIDEND(vi)NilNil-3-CondensedConsolidatedBalanceSheet30June3December20082007UnauditedAuditedRMB’000 RMB’000Non-currentassetsProperty,plantandequipment2,479,077,597,425Prepaidlandpremium274,385283,578Constructioninprogress1,512,1262,73,680Goodwill2,1642,64Interestsinjointly-controlledentities176,20754,226Interestsinassociates16,9870,403Available-for-salefinancialassets1,200–Deferredtaxassets65,84067,680Totalnon-currentassets4,527,9864,289,56CurrentassetsInventories1,095,182957,633Tradereceivables169,11252,20Billsreceivable564,431657,763Available-for-salefinancialassets190,00020,000Prepaymentsandotherreceivables815,493506,34Pledgedbankbalances456,809238,486Cashandcashequivalents2,693,0283,073,577Totalcurrentassets5,984,0555,795,983CurrentliabilitiesInterest-bearingbankborrowings,secured3,594–Tradepayables1,888,743,72,38Billspayable619,074457,395Taxpayable(47,192)(44,09)Otherpayablesandaccruals1,019,904984,99Dividendpayabletominorityshareholders8,1107,384Provisionforproductwarranties39,97939,396Totalcurrentliabilities3,532,2123,57,456-4-30June3December20082007UnauditedAuditedRMB’000 RMB’000NETCURRENTASSETS2,451,8432,638,527TOTALASSETSLESSCURRENTLIABILITIES6,979,8296,927,683NON-CURRENTLIABILITIESDeferredincome68,03169,892Totalnon-currentliabilities68,03169,892NETASSETS6,911,7986,857,79EQUITYEquityattributabletoequityholdersoftheparentIssuedsharecapital1,095,272,095,272Reserves5,535,9345,27,75Proposedfinaldividend–29,0546,631,2066,442,04Minorityinterests280,59245,750TOTALEQUITY6,911,7986,857,79-5-Notes:(i)REVENUE,OTHERINCOMEANDgAINSRevenuerepresentsthenetinvoicedvalueofgoodssold,afterallowancesfortradediscountsandreturns,andexcludessalestaxesandintra-grouptransactions.Ananalysisofrevenue,otherincomeandgainsisasfollows:Sixmonthsended30June20082007UnauditedUnauditedRMB’000 RMB’000RevenueSaleofautomobiles4,333,3803,200,479Saleofautomotivepartsandcomponents276,30844,4664,609,6883,344,945OtherincomeandgainsBankinterestincome16,0945,583Governmentgrants:Recognitionofdeferredincome1,861974Others*9864,477Gainondisposalofheld-for-tradingfinancialassets–498Unrealisedgainonrevaluationofheld-for-tradingfinancialassets–82Gainondisposalofprepaidlandpremiums7,245–Gainonacquisitionofminorityinterests13,517–Incomefromavailable-for-salefinancialassets2,430–42,1332,64*Representinggovernmentgrantsandvalueaddedtaxrefunds.ThegrantsmustbeutilisedforthebusinessdevelopmentoftheCompanyandcertainofitssubsidiaries.(ii)FINANCECOSTSThefinancecostsmainlyrepresentedthebankchargesandinterestonbankborrowingsincurredduringtheperiod.-6-(iii)PROFITBEFORETAXTheGroup’sprofitbeforetaxisarrivedataftercharging/(crediting):Sixmonthsended30June20082007UnauditedUnauditedRMB’000 RMB’000Costofinventoriessold3,663,9922,544,642Depreciation98,62580,36Recognitionofprepaidlandpremiums2,1792,625Minimumleasepaymentsunderoperatingleasesinrespectoflandandbuildings101–Auditors’remuneration1,343600Employeebenefitsexpenses(includingdirectors’andsupervisors’remuneration):Wagesandsalaries232,87542,97Retirementbenefitscontributions18,5444,674251,41957,59Provisionforproductwarranties10,34920,76Researchcosts113,59775,072Foreignexchangedifferences,net8,8447,679Write-downofinventoriestonetrealisablevalue11,0316,896Loss/(Gain)ondisposalofitemsofproperty,plantandequipment734(220)Impairment/(Write-ba