| Share’s code： | 000550 | Share’s Name： | Jiangling Motors | No.： | 2024-034 |
| 200550 | Jiangling B |
Jiangling Motors Corporation, Ltd.Public Announcement on the Changes in Accounting Policies
Jiangling Motors Corporation, Ltd. and its Board members undertake that theinformation disclosed herein is truthful, accurate and complete and does notcontain any false statement, misrepresentation or major omission.
Special note: Jiangling Motors Corporation, Ltd. (hereinafter referred to as the‘Company’) has changed its accounting policies in accordance with the requirementsof "Compilation of Application Guidelines for Enterprise Accounting Standards 2024"issued by the Ministry of Finance of the People’s Republic of China. These changes inaccounting policies do not need to be submitted to the Board of Directors and theshareholders' meeting of the Company for consideration, and do not have any materialimpact on the Company's financial position, results of operations and cash flows.
I. Brief Introduction of the changes in accounting policies(i) Reasons for the changesThe Ministry of Finance of the People's Republic of China (hereinafter referred to asthe “MOF”) issued the “Compilation of Application Guidelines for EnterpriseAccounting Standards 2024” in March 2024, of which the expected liabilities arisingfrom quality assurance should be recorded into cost of sales. Due to theabovementioned revision of accounting standards, the Company is required to makecorresponding adjustments to the relevant accounting policies previously adopted.
(ii) Date of the changesThe Company implemented the aforesaid accounting standards from January 1, 2024and made changes to the related accounting policies.
(iii) Accounting policies adopted before the changesPrior to these changes in accounting policies, the Company implemented the“Accounting Standards for Business Enterprises - Basic Standards”, each of the specificaccounting standards, the Guidelines for “Application of Accounting Standards forBusiness Enterprises (ASBEs)”, ASBEs Interpretation Bulletins, and other relevantregulations issued by the MOF.
(iv) Accounting policies adopted after the changesThe Company shall follow the relevant provisions of the "Compilation of ApplicationGuidelines for Enterprise Accounting Standards 2024" issued by the MOF in March2024. Other unchanged parts are still in accordance with the “Accounting Standards forBusiness Enterprises - Basic Standards”, each of the specific accounting standards, theGuidelines on the Application of Accounting Standards for Business Enterprises
(ASBE), the ASBE Interpretation Bulletins, and other relevant regulations issued bythe MOF in the previous period.
II. Impact of the changes in accounting policies on the CompanyThe MOF issued the “Compilation of Application Guidelines for Enterprise AccountingStandards 2024” in March 2024, of which the expected liabilities arising from qualityassurance should be recorded into cost of sales. In the first half of 2024, the Companyhas adopted the guidelines to compile and prepare the financial statements of theCompany for the first half of 2024, and the main impacts of the Company'simplementation of this provision are as follows:
Consolidated financial statements:
| Affected report project names | January to June 2023 | ||
| Before adjustment | After adjustment | Impact amount | |
| Selling and distribution expenses | 655,850,091 | 529,719,611 | -126,130,480 |
| Cost of sales | 13,156,439,449 | 13,282,569,929 | 126,130,480 |
Company financial statements:
| Affected report project names | January to June 2023 | ||
| Before adjustment | After adjustment | Impact amount | |
| Selling and distribution expenses | 72,461,216 | 64,683,930 | -7,777,286 |
| Cost of sales | 12,862,306,219 | 12,870,083,505 | 7,777,286 |
The changes in accounting policies are changes made by the Company in accordancewith the provisions and requirements of the relevant accounting standards issued by theMOF. The changed accounting policies are able to reflect the Company's financialposition and operating results in a more objective and fair manner. The changes inaccounting policies are in compliance with relevant laws and regulations and the actualsituation of the Company, and do not materially affect the Company's financial position,operating results and cash flows, as well as do not jeopardize the interests of theCompany and its shareholders.
Board of DirectorsJiangling Motors Corporation, Ltd.August 30, 2024