Sinotruk (Hong Kong)

History

Sinotruk (Hong Kong) Limited was incorporated on 31 January 2007 in Hong Kong, a special administrative region of China, as an intermediate holding company for the Chinese Government owned China National Heavy Duty Truck Group (, Sinotruk Group). Since 2 April, Sinotruk (Hong Kong) Limited owned the following subsidiaries: Sinotruk Jinan Truck, Sinotruk Jinan Commercial Truck, Sinotruk Jinan Power, Sinotruk Jinan Technical Center, Sinotruk Factory Design Institute, Sinotruk Shandong Import & Export Company, Sinotruk Jinan Ganghua Import & Export Company, Sinotruk Hong Kong International Investment Company and Sinotruk Finance. Sinotruk Jinan Truck itself, is a listed company in the Shenzhen Stock Exchange as SZSE:000951. The subsidiaries were acquired from Sinotruk (BVI) Limited and in turn acquired from Sinotruk Group.

Sinotruk (Hong Kong) Limited was listed in the Stock Exchange of Hong Kong on 28 November 2007. As of 2007, Sinotruk (Hong Kong) and its parent company Sinotruk Group, were jointly the largest heavy truck manufacturer in the Mainland China.

Since 10 March 2008, Sinotruk (Hong Kong) became a constituent of Hang Seng China-Affiliated Corporations Index, a stock market index for red chip companies. The stock was removed from the index on 4 June 2012 and re-instated on 7 September 2020.

In September 2012, China National Heavy Duty Truck Group (Hong Kong) International Capital Limited purchased Units 1 to 5 on the 31st floor of the West Wing of Shun Tak Centre from investor Liao Weilin for HK$160,049,032, with an area of 9,188 square feet and a price of approximately HK$17,400 per square foot.

Business

Sinotruk manufactures cargo trucks and semi-tractor trucks that are used in a range of industries including construction, container transportation, mining and steel production (Howo and Sitrak).

The company and its state-owned parent sold around 125,000 heavy-duty trucks in 2009 and accounted for about 20.1 percent of China's heavy-duty truck market. Sinotruk's overseas sales, mostly to developing markets such as countries of the former Soviet Union and Middle East states, accounted for about 19 percent (FY2007) both in terms of units sold and revenue.

Fuel-efficient trucks currently account for about 80 percent of the company's production.

Controversies

From 2010 to 2014, Sinotruk exported civilian trucks to North Korea which were converted to military use. Sinotruk denied any wrongdoing in the transaction.

Ownership

In 2009, the German truck maker MAN bought a 25% + 1 share stake in Sinotruk (Hong Kong).

References

References

1. (14 November 2007). "Global Offering". Sinotruk.
2. Nie, Nevin. (13 November 2007). "Sinotruk shares set at costly PEs". South China Morning Post.
3. (14 November 2007). "Global Offering". Sinotruk.
4. (c. 2008). "Hang Seng China-Affiliated Corporations Index (Changes Implemented Before 8 September 2008)". Hang Seng Indexes Company.
5. (September 2020). "Constituent Changes in Hang Seng China-Affiliated Corporations Index". Hang Seng Indexes Company.
6. Liu Zhen. (17 September 2017). "How North Korea evades UN sanctions". South China Morning Post.
7. Wong, Kandy. (16 July 2009). "MAN pays HK$6.05b for Sinotruk stake". South China Morning Post.