On August 20th, Great Wall Motors (2333.HK) released its midterm performace report of 2010.

The report shows, the turnover of Great Wall Motors in the first half of this year totaled 9.125 billion Yuan (RMB), up 77 percent on last year's same period. The net profits have increased to 0.907 billion Yuan from 0.279 billion Yuan of the same period of last year; profits per share has increased to 0.79 Yuan from 0.24 Yuan of the same period of last year, up 230.9%. The sale of SUVs, saloon cars and pickups have grown by 174.7%, 36.9% and 25.5% respectively.

As the first private whole vehicle enterprise listed in H shares in China, Great Wall Motors has always kept an excellent performance since its going public in 2003. Free of loans or liabilities, both parent company and subsidary companies have gone up-market, and their shares are awarded the 3A credit level by big banks including private ones, Great Wall Motors becomes the leading force of independent brands, displaying great potential.

Meanwhile, because of the positive changing of the international economy, export condition of the company is also making its turning with a large scale increasement in exportation. For example, earnings of the export to Russia has firmed up to 0.159 billion Yuan from 0.453 millionYuan of the first half year of last year, which is an enormous increase. Up to now, the export amount of its Hover is up 613.4%, Voleex up 339.2% and pickup down 8.3% comparing to the same period last year. The company has alread established solid marketing networks with 121 target export countries such as Austrilia, Russia, Italy, South Africa, and Iraq.

The strategy by which could Great Wall Motors achieve so proud a performance is to build brand advantages through building advantages in product types. In the first half year, the products of the company underwent an integration, with the three major types, namely Haval SUV, Voleex and Wingle going forward shoulder by shoulder making great efforts together from all aspects, finally forming the triple supporting points situations. The sale increasement of all types were the major drive for the profits increasing during the period.

The report shows, as for new product and innovation, Great Wall Motors has launched the brand new saloon car Voleex C30 in May, whose model is economical and environmentally friendly, featuring the competitive advantages of lower oil consumption and larger space. Meanwhile. the 5AMT transmission was also introduced to the market with its electric shift mechanism and electric clutch control mechanism, which makes the automatic control of the shift and clutch possible. Additionally, the company has also acquired independent technologies, standards and intellectual property rights with regard to engine, transmission, entire car appearance, entire car design, and examination.

In order to realize a long-term and rapid developing, Great Wall Motors has set strategical plans as follows: achieving the sale objective of 1.8 million units and the product capacity of 2 million units by 2015; keeping the sale of pickpu and SUV the largest in China and bringing the top quality to its independent brand A level saloon cars; and making the sale of economical SUV and economical pickup the largest in the world by 2020.

As for the brand, Great Wall Motors has broken the silence of independent brand and raised the flag of “Great Wall- Creation of China” for the first time, determining to make the best quality cars in China.

In the future, the group will strengthen its R&D of core components, accelerate the developing of engines and transmissions. Currently, a highly efficient and energy-saving diesel engine with a 2.0 emission and an output per litre up to 55kw is undergoing trial production, and will be firstly equipped on Haval H5 in September.

Meanwhile, the company is constructing a whole car and components base in Tianjin Developing Area, which would further improve the production capacity and increase the integrated competition strength of the group.