Great Wall Motor : Corporate Social Responsibility Report 2016

Great Wall Motor Company Limited ("Great Wall Motor" or the "Company") is the largest SUV and pick-up truck manufacturer in the People's Republic of China (the "PRC"). The H Shares and A Shares of the Company were listed in Hong Kong in 2003 and in the PRC in 2011, respectively. Currently, the Company has three product brands, namely Havel, Great Wall and WEY, covering three major product lines of SUVs, sedans and pick-up trucks. The Company has two production bases in Baoding and Tianjin, and is able to independently produce engines, transmissions, and other core parts and components. The Company has over 40 subsidiaries and more than 70,000 employees.

Adhering to its corporate philosophy of "making progress every day", with its advanced corporate culture and management teams, the Company has established unique operating and management models. Its performance is one of the best in the automobile industry in mainland China.

In recent years, the development potential of Great Wall Motor has been widely recognized. It has been accredited as the first of the "China Union Top 100 Listed Company Results" (「中聯上市公司業績百強」) and one of the "Most Valuable Listed Automobile Companies" (「最具價值汽車類上市公司」) and "Top Ten Listed Automobile Companies in the PRC" (「中國汽車上市公司十佳」). It has also been repeatedly selected as the "Top 500 Enterprises in the PRC" (「中國企業 500 強」), the "Top 500 Machinery Enterprises in the PRC" (「中國機械 500 強」), the "Top 500 Manufacturers in the PRC" (「中國製造 500 強」). The Company has been named as the "Recommended Brand for Export" (「推薦出口品牌」) by China Chamber of Commerce for Import and Export of Machinery and Electronic Products and the "Automobile Export Enterprises of the PRC" (「國家汽車整車出口基地企業」) by the Ministry of Commerce of the PRC and the National Development and Reform Commission.

Products are developed under the brand philosophy of "Focus, Dedication, Specialization" with high-tech and high-performance features. It is the strategy of Great Wall Motor to produce high-quality products. The strategic approach of Great Wall Motor is to focus on the production of high-end automobiles. Great Wall Motor is committed to developing Havel into a world-class professional SUV brand.

Great Wall Motor has maintained its leading positions in both the overseas and domestic markets. In the domestic market, the sales volume of SUVs has ranked first for 14 consecutive years while the market share and sales volume of pick-up trucks of Great Wall Motor have also ranked first for 19 consecutive years. In the overseas market, the brand recognition and reputation of Great Wall Motor have been improving.

Great Wall Motor has been established for more than 20 years. The management has been committed to the mission of "surprising customers, improving well-being of staff, creating value for customers and contributing to the community". Based on the corporate philosophy of "making progress every day", the Company has developed an extraordinary corporate culture to promote loyalty of staff, customers and business partners by virtue of the essences of fidelity, integrity, creativity and quality, which provides perpetual momentum to Great Wall Motor for its development as a legend of the industry as well as its sustainable and coordinated development.

The Company has established an effective information disclosure management system and actively performed the obligation of information disclosure in accordance with the laws and regulations including the Rules Governing the Listing of Stocks on Shanghai Stock Exchange, the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Administrative Measures for the Disclosure of Information of Listed Companies as well as relevant rules and regulations of the Company. It has ensured the truthfulness, accuracy, completeness and promptness of the information disclosure and guaranteed that all shareholders have equal access to the disclosed information of the Company.

In pursuit of mutual benefit and harmonious cooperation, the Company actively expanded its business coverage in domestic and international automotive market to enhance profitability. In tandem with its sustainable development and balanced dividend distribution among shareholders, the Company also attached great importance to the investment returns. Dividends have been distributed every fiscal year since its listing. As of 2015, the Company has distributed dividends of approximately RMB10.892 billion in aggregate. Pursuant to the proposed profit distribution plan of the Company for 2016, every 10 shares should be distributed with a cash dividend of RMB3.5 (tax inclusive) and a total of approximately RMB3,194,544,150 will be distributed as cash dividends.

The Company has exerted effort in the management of its investor relations. Corporation information was disclosed on the websites of the Shanghai Stock Exchange, Hong Kong Exchanges and Clearing Limited and the Company in strict compliance with the provisions of relevant documents such as the Rules Governing the Listing of Stocks on Shanghai Stock Exchange, the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the articles of association of the Company. As such, investors can keep abreast of the operation conditions of the Company.

The Company will explain its operating results to its investors through various channels, such as road show and telephone conference, after its operating results have been announced.

Designated personnel have been appointed by the Company to give objective and truthful answers to the questions raised by investors through various channels, such as telephone, email and e-interaction at the Shanghai Stock Exchange ( 上交 所 e 互動 ), without violating relevant laws and regulations. As a result, its prompt communication with investors has been ensured.

Based on the strategic objective of "a strong enterprise underpinned by talents" and adhering to the principle of "talents are the foundation of car production", Great Wall Motor focuses on talent development and provides a platform for career development of various talents. A high caliber, career-specific and passionate workforce has been developed to serve as a strong talent base to facilitate the achievement of the visions and targets of the Company. Under the "people-oriented and staff caring" approach, the Company has developed a safe and healthy work environment as well as a simple and transparent work atmosphere. Through a visible career development platform, staff can develop their career along with the Company. The Company provides a distinctive happy life platform to ensure work-life balance so as to fulfill the target of providing its employees with a career secure living and happiness.

Pursuant to the principle of "safety is top priority and prevention is the answer", the Company strictly complies with the Law of the PRC on Work Safety (《中華人民 共和國安全生產法》), Law of the PRC on Prevention and Control of Occupational Diseases (《中華人民共和國職業病防治法》), Fire Protection Law of the PRC (《中華人民共和國消防法》) and other laws and regulations as well as the work safety accountability system at all levels. The Company has continued to improve the occupational health and safety management system to ensure its applicability, adequacy and effectiveness. Through strengthened assessment, employees are motivated to contribute in work safety and to ensure the effectiveness of safety activities. Safety responsibility is achieved through performance appraisal. Safety incidents have been effectively prevented. The Company has also launched monthly activities such as the Safety Month ( 安全月 ) and Fire Prevention Month ( 消防月 ) to promote a good safety culture and atmosphere.

Through a regulated operation according to safety work standards, the Company has practically enhanced the workplace safety. The Company systematically identified occupational risk factors through workplace operation observation, analysis of tasks and experience and equipment inspection. The items, measurement and indices of occupational health environment inspections in major workplaces are identified for regular review and dynamic management. Professional institutions are retained to conduct annual inspection and assessment of toxic and hazardous workplaces. The Company increased investment to improve dust and noise reduction in workplaces, to prevent occupational risk factors arising from the use of raw materials and work process. The Company has maintained comprehensive staff health records and organized regular staff health examinations. Standard safety work tools are provided whenever necessary. It has been the practice of the Company to take both prevention and remedial safety measures. The Company has continued to improve occupational health and safety conditions through automation and improvement in engineering and work processes. It is the objective of the Company to create a safe, healthy and comfortable work environment.