Board of Directors Meeting Held in Sinotruk (Hong Kong) Limited

On August 25th, Ma Chunji, the chairman of the Board of Directors, presided over the Board of Directors Meeting of Sinotruk (Hong Kong) Limited in Jinan.

All directors unanimously approved the Operation Report made by the Executive Director and CEO Cai Dong, the Finance Report made by the CFO Kong Xiangquan and the 2015 interim report.

According to the 2015 Sinotruk Interim Report approved on the Board Meeting, China’s heavy-duty truck market sales declined significantly in the first half of 2015 as affected by poor macro-economic conditions. Facing such serious market competition, Sinotruk adjusted its development strategies and product mix and improved product technologies and quality levels to maintain the stability of business operation. During this period, Sinotruk continuously developed innovative marketing models, set up and completed the marketing networks, and more focused on improving the quality of marketing networks. Shares in domestic market segments advantageously increased by a large margin as a result of further improved marketing networks for various product series and continuously completed product mix; the solid dominance in overseas markets also kept Sinotruk as the export leader of heavy-duty trucks in China and enabled the sustainable growth of its export revenue; technologies and quality levels have been continuously optimized, and the product competitiveness has been significantly improved. During this period, Sinotruk could provide 2668 different models conforming to national IV & V emission standards for the choices of users having different requirements.

It was noted on this Board meeting that, the world economy system would still follow the unbalanced growth trend in the second half year of 2015, which would keep the downward pressure remaining to Chinese economy. In the meantime, enterprises will be brought with new development opportunities and challenged by series of measures for steady growth, domestic regional economic revitalization and development strategies and the One Belt One Road initiative stipulated by the State as well as by the innovation-driven development, Internet Plus and Made in China 2025 programs. Sinotruk will further enrich itself by properly adjusting the business operation strategies and taking related effective measures for its healthy development, which may be specifically detailed as follows: firstly, push the innovation of marketing models and business policies, continuously complete the domestic marketing network system, promote the market sales, and increase the market shares; secondly, keep insisting on the international strategy, further expand the international market, and create new advantages in the international market; thirdly, continue optimizing the product structure, consolidate the market dominance of engineering vehicle models, and promote the sales increase of road vehicle models such as the tractor vehicle by fully making use of the advantages from MAN’s techniques to achieve the qualitative change from the quantitative change; more focus on improving the brand image and market impact, and further improve the product quality and technical levels to promote the sales increase of all models including heavy-duty trucks, light-duty trucks and buses; fourthly, further develop the Brand, Quality & Benefit Upgrade Year program, strengthen the enterprise internal management, reinforce the cost reducing and efficiency increasing measures, enhance the ability of enterprise to prevent and control risks, improve the enterprise benefit, and stimulate the healthy and sustainable development of the enterprise; fifthly, keep cooperating with MAN Group, fully introduce the partner products of Sinotruk and MAN Group to the market, and continue developing and expanding the partnership and cooperation scope between both parties as specifically required for the market development.

Attendees on this Board meeting included: executive directors Cai Dong, Tong Jingen, Wang Shanpo, Liu Wei, Kong Xiangquan, Liu Peimin and Franz Neundlinger, independent non-executive directors Chen Zheng, Yang Weicheng, Huang Shao’an and Lin Zhijun (attending the meeting via telephone conference system), non-executive directors Georg Pachta-Reyhofen and Anders Nielsen, non-executive director to be appointed Joachim Drees as invited guest, MAN’s representative Ulf-carsten Steinborn as invited guest, and the attorney from the law firm employed by the Company.

Prior to the Board meeting, Ma Chunji, Cai Dong, Liu Wei, Kong Xiangquan, Franz Neundlinger and heads of finance department, securities department and international department have successively discussed with Georg Pachta-Reyhofen, Joachim Drees, Anders Nielsen and Ulf-carsten Steinborn for exchange of views about the future development of the Company. Joachim Drees accepted the training program initiated by Sidley Austin LLP. Wang Shanpo accompanied Georg Pachta-Reyhofen to visit the production lines of MAN engine in Jinan Power Division, Jinan Commercial Vehicle Co., Ltd and Jinan Axle & Transmission Co., Ltd, and Georg Pachta-Reyhofen highly praised for the manufacturing and quality control processes of MAN engine.