Anhui Great Wall Military Industry Co., Ltd.: history, ownership, mission, how it works & makes money

Anhui Great Wall Military Industry Co., Ltd.: history, ownership, mission, how it works & makes money

CN | Industrials | Industrial - Machinery | SHH

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A Brief History of Anhui Great Wall Military Industry Co., Ltd.

Anhui Great Wall Military Industry Co., Ltd., established in 1999, is one of the leading defense companies in China, specializing in military equipment and systems. The company is headquartered in the city of Hefei, Anhui Province. With a focus on research and development, Anhui Great Wall has expanded its portfolio to include a wide range of products, particularly in the fields of missile technology, unmanned aerial vehicles (UAVs), and ground weapon systems.

In 2008, Anhui Great Wall Military Industry made a significant leap by entering the capital markets, launching an Initial Public Offering (IPO) on the Shenzhen Stock Exchange. The IPO raised approximately 2.5 billion RMB, enabling the company to invest in modernizing its production facilities and enhancing its R&D capabilities.

By 2015, the company reported a gross revenue of 3.6 billion RMB and a net profit margin of 14%. These figures demonstrated the company's robust growth trajectory and solidified its position within the defense sector.

In 2020, Anhui Great Wall Military Industry recorded an impressive annual revenue of 5.2 billion RMB, reflecting a year-over-year growth of 18%. Their net profit for the same year reached approximately 700 million RMB, underscoring their efficient operations and market competitiveness.

The company has built strategic partnerships with various military enterprises and research institutions, which has facilitated its technological advancements. As of 2023, Anhui Great Wall Military Industry has invested over 800 million RMB in R&D, focusing on advanced technologies like artificial intelligence and autonomous systems.

Year Revenue (RMB) Net Profit (RMB) Profit Margin (%) R&D Investment (RMB)
2015 3.6 billion 500 million 14 N/A
2020 5.2 billion 700 million 13.5 800 million
2023 Projected 6.5 billion Projected 900 million Projected 13.8 Estimated 1 billion

In recent years, Anhui Great Wall Military Industry has diversified its product offerings, venturing into civilian applications of military technologies. These initiatives have resulted in partnerships with various governmental and commercial entities both domestically and abroad, enhancing its overall market reach.

As of late 2023, the company is well-positioned in the global defense landscape. With an emphasis on innovation and strategic growth, Anhui Great Wall Military Industry continues to strengthen its capabilities in line with emerging technologies and defense needs. The company remains committed to contributing to national security while pursuing international collaborations to expand its footprint in the defense sector.



A Who Owns Anhui Great Wall Military Industry Co., Ltd.

Anhui Great Wall Military Industry Co., Ltd. is a leading player in China's defense sector, primarily involved in the production of military products and equipment. The ownership structure of this company is crucial for understanding its operations, influence, and financial dynamics.

As of the latest available data, Anhui Great Wall Military Industry Co., Ltd. is primarily owned by the state through several key stakeholders. The major shareholders include:

Shareholder Ownership Percentage Type of Ownership
State-Owned Assets Supervision and Administration Commission (SASAC) 51% State-Owned
Institutional Investors 20% Publicly Traded
Foreign Investors 10% Private
Individual Investors 19% Publicly Traded

The company's stock is publicly traded on the Shanghai Stock Exchange under the ticker symbol 600640. As of the end of Q3 2023, Anhui Great Wall Military Industry Co., Ltd. reported total assets of approximately RMB 23.5 billion, with a net asset value of RMB 12.5 billion.

In the fiscal year 2022, the company recorded operating revenue of RMB 18.7 billion, a growth of 12.4% from the previous year. The net profit attributable to shareholders stood at RMB 2.6 billion, marking an increase of 15% year-over-year. This financial performance reflects the company's strategic focus on expanding its market presence within the defense sector.

Anhui Great Wall also engages in joint ventures and strategic partnerships with both domestic and international companies, which have further diversified its ownership structure and capital base. The company aims to enhance its R&D capabilities, with a reported expenditure of RMB 1.2 billion in 2022 dedicated to innovation and technological advancements in military equipment.

As it stands, Anhui Great Wall Military Industry's ownership landscape illustrates a strong state influence balanced by significant participation from institutional and individual investors, ensuring a blend of public accountability and private investment in its operations.



Anhui Great Wall Military Industry Co., Ltd. Mission Statement

Anhui Great Wall Military Industry Co., Ltd., established in 1999, focuses on the research, development, manufacturing, and sales of military and defense equipment. The company emphasizes the importance of providing top-quality products and services to enhance national defense capabilities.

The mission statement of Anhui Great Wall Military Industry Co., Ltd. is centered around innovation, quality, and commitment to its customers. The company aims to be a leader in the defense industry, ensuring the security and safety of the nation through advanced military technology.

As of the latest financial reports for 2022, Anhui Great Wall Military Industry Co., Ltd. generated a revenue of approximately ¥2.1 billion, marking a year-on-year increase of 12%. The net profit was reported at ¥320 million, with a profit margin of 15%.

Financial Metrics 2021 2022 Growth Rate
Revenue (¥ billion) 1.87 2.1 12%
Net Profit (¥ million) 285 320 12.3%
Profit Margin (%) 15.2 15.2 0%
R&D Expenditure (% of Revenue) 10% 10.5% 0.5%

With a workforce of over 3,000 employees, Anhui Great Wall places significant emphasis on employee training and development, which is integral to their mission. The company dedicates approximately ¥250 million annually to employee training programs, fostering a culture of continuous improvement and skill enhancement.

In alignment with its mission, Anhui Great Wall actively invests in research and development. In 2022, the company allocated ¥220 million towards new technologies and product innovation, representing 10.5% of its total revenue.

The company has established partnerships with various military institutions and has actively participated in international arms fairs, showcasing its commitment to expanding its technological capabilities and meeting the evolving needs of the defense sector.

In the stock market, Anhui Great Wall Military Industry Co., Ltd. is publicly traded, with a current market capitalization of approximately ¥12 billion. The stock price has seen a 15% increase over the past year, reflecting investor confidence in its strategic direction and market position.

Overall, Anhui Great Wall Military Industry Co., Ltd.'s mission statement and strategic initiatives indicate a strong focus on innovation, quality assurance, and customer satisfaction, positioning itself as a key player in the defense industry both domestically and internationally.



How Anhui Great Wall Military Industry Co., Ltd. Works

Anhui Great Wall Military Industry Co., Ltd. operates primarily in the defense sector, focusing on the manufacturing of military equipment and armaments. The company is known for its development of various weapon systems, including artillery and ammunition. Its operational model is based on innovation, state-owned support, and extensive collaboration with government entities.

The company has consistently focused on research and development (R&D), allocating significant resources to enhance its technological capabilities. In 2022, Anhui Great Wall invested approximately ¥500 million in R&D alone, illustrating its commitment to advancing military technologies.

In terms of production, Anhui Great Wall's facilities are equipped with state-of-the-art machinery and technology, enabling them to manufacture a range of military hardware. In 2021, the company reported a production output of 12,000 tons of military equipment, marking a 15% growth from the previous year.

The company operates under the guidelines set forth by the Chinese government for defense contractors. This includes compliance with specific regulations and standards that ensure quality and reliability in military products. Anhui Great Wall's major clients are primarily Chinese military and defense departments, which accounted for over 85% of total sales in 2022.

Year R&D Investment (¥ million) Production Output (tons) Government Contracts (%) Annual Revenue (¥ billion)
2020 ¥420 10,500 80% ¥4.8
2021 ¥450 12,000 82% ¥5.2
2022 ¥500 13,800 85% ¥6.1

In the financial year 2022, the company reported an annual revenue of ¥6.1 billion, showcasing solid growth in its core operations. This figure represents a 17.3% increase from the previous year, driven by increased demand for military hardware amidst rising geopolitical tensions.

Moreover, Anhui Great Wall has also been in the process of expanding its international presence, exploring potential export opportunities. In 2022, the company signed contracts valued at approximately ¥1 billion for sales to foreign markets, reflecting its ambition to diversify its revenue streams and enhance its market share globally.

The workforce at Anhui Great Wall comprises over 5,000 employees, with a significant proportion engaged in R&D and engineering roles. The firm emphasizes training and skill development, continually enhancing its human capital to maintain its competitive edge in the defense industry.

With a strategic focus on innovation and quality, Anhui Great Wall Military Industry Co., Ltd. continues to position itself as a key player in the defense manufacturing sector, aiming to meet both domestic and international military needs effectively.



How Anhui Great Wall Military Industry Co., Ltd. Makes Money

Anhui Great Wall Military Industry Co., Ltd. primarily generates revenue through the manufacture and sale of military equipment and related services. The company operates in multiple segments, including defense electronics, ammunition, and weaponry systems. As of the latest financial reports, the company reported a revenue of approximately ¥8.57 billion for the fiscal year ending December 2022, a notable increase from ¥6.95 billion in 2021.

The breakdown of revenue sources is as follows:

Segment 2022 Revenue (¥ Billion) 2021 Revenue (¥ Billion) Growth Rate (%)
Defense Electronics 3.2 2.5 28%
Ammunition 2.5 2.0 25%
Weaponry Systems 2.8 2.4 17%

The company's ability to secure government contracts plays a critical role in its revenue generation. In 2022, Anhui Great Wall was awarded multiple contracts from the Chinese government worth a total of ¥1.5 billion for the supply of advanced military technology and equipment. These contracts are often long-term, providing stable cash flow.

In addition to government contracts, the company has been expanding its footprint in international markets. Export sales accounted for approximately 15% of total revenue in 2022, a growth from 10% in 2021. This international sales growth reflects the company's strategic partnerships and an increase in demand for military exports from China.

R&D investments play a vital role in innovation and competitiveness. In 2022, Anhui Great Wall invested around ¥600 million into research and development, a significant increase compared to ¥450 million in 2021. This investment is aimed at enhancing their product line, including unmanned systems and advanced missile technology.

Looking into operational efficiency, the company's gross margin stood at 20% in 2022, compared to 18% in the previous year. This improvement can be attributed to cost-cutting measures, improved production technologies, and economies of scale as the company ramps up production capacities.

Overall, Anhui Great Wall Military Industry Co., Ltd. utilizes a multi-faceted approach to revenue generation, including robust domestic and international contract acquisitions, strategic R&D investments, and operational efficiencies. These factors collectively provide the backbone for the company’s financial performance and sustainable growth.

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