FAW JIEFANG GROUP CO., LTD
Semi-annual Report 2024
August 2024
Section I Important Notes, Contents and Definitions
The Board of Directors and Board of Supervisors, as well as directors,supervisors and senior executives of the Company guarantee that the contents ofthe semi-annual report are authentic, accurate and complete, there is no falserecord, misleading statement or major omission, and shall bear individual andjoint legal responsibilities.Wu Bilei, the person in charge of the Company, Ji Yizhi, the person in chargeof accounting, and Si Yuzhuo, the person in charge of the accounting organization(chief accountant), declare that they guarantee the authenticity, accuracy andcompleteness of the financial report in this semi-annual report.Except for the following directors, others attended the board meeting toreview the semi-annual report in person
| Names of Directors not Present in Person | Positions of Directors not Present in Person | Reasons for not Present in Person | Name of the Trustee |
| Wang Hao | Director | Work | Li Sheng |
This semi-annual report involves prospective statements such as future plans,and does not constitute a substantial commitment of the Company to investors.Investors and relevant individuals should maintain sufficient risk awareness andunderstand the differences between plans, forecasts, and commitments.
The Company has described in detail the possible risks and countermeasuresfor its future development in the section of Management Discussion and Analysis.
Investors are kindly requested to pay attention to relevant contents. ChinaSecurities Journal, Securities Times and CNINFO (http://www.cninfo.com.cn)are the information disclosure media selected by the Company. All informationof the Company is subject to that published in the above selected media. Investorsare kindly requested to pay attention to investment risks.The Company does not plan to pay cash dividends or bonus shares, or convertreserves into share capital.
Table of Contents
Section I Important Notes, Contents and Definitions ...... 2
Section II Company Profile and Main Financial Indicators ...... 8
Section III Management Discussion and Analysis ...... 12
Section IV Corporate Governance ...... 35
Section V Environmental and Social Responsibilities ...... 39
Section VI Important Matters ...... 54
Section VII Changes in Shares and Shareholders ...... 63
Section VIII Preferred Shares ...... 77
Section IX Bonds ...... 78
Section X Financial Report ...... 79
List of Documents for Future Reference(I) Financial statements were signed and sealed by the person in charge of the Company,the person in charge of accounting and the person in charge of the accountingorganization (chief accountant).(II) Originals of all company documents and announcements publicly disclosed on thewebsite designated by China Securities Regulatory Commission in the reporting period.
Interpretation
| Item | Refers to | Definition |
| Company, the Company, FAW Jiefang | Refers to | FAW JIEFANG GROUP CO., LTD |
| Jiefang Limited | Refers to | FAW Jiefang Automotive Co., Ltd. |
| FAW, FAW Group | Refers to | CHINA FAW GROUP CO., LTD. |
| FAW | Refers to | China FAW Group Corporation Limited |
| FAW Car | Refers to | FAW Car Co., Ltd. |
| FAW Bestune | Refers to | FAW Besturn Automotive Co., Ltd. |
| Finance company | Refers to | First Automobile Finance Co., Ltd. |
| Board of Directors | Refers to | Board of Directors of FAW JIEFANG GROUP CO., LTD. |
| Shareholders’ meeting | Refers to | Shareholders’ Meeting of FAW JIEFANG GROUP CO., LTD. |
| Board of Supervisors | Refers to | Board of Supervisors of FAW JIEFANG GROUP CO., LTD. |
| Ministry of Finance | Refers to | Ministry of Finance of the People’s Republic of China |
| CSRC | Refers to | China Securities Regulatory Commission |
| SZSE | Refers to | Shenzhen Stock Exchange |
| China Securities Depository and Clearing Corporation Limited (CSDC) | Refers to | Shenzhen Branch, China Securities Depository and Clearing Corporation Limited |
| Company Law | Refers to | Company Law of the People’s Republic of China |
| Articles of Association | Refers to | Articles of Association of FAW JIEFANG |
| GROUP CO., LTD. | ||
| Reporting Period | Refers to | January 1, 2024 - June 30, 2024 |
| CNY, CNY 10 thousand, CNY 100 million | Refers to | CNY, CNY 10 thousand, CNY 100 million |
Section II Company Profile and Main Financial IndicatorsI. Company Profile
| Stock abbreviation | FAW Jiefang | Stock code | 000800 |
| Stock exchanges on which shares are listed | Shenzhen Stock Exchange | ||
| Chinese name of the Company | FAW JIEFANG GROUP CO., LTD | ||
| Chinese abbreviation of the Company | FAW Jiefang | ||
| English name of the Company | FAW JIEFANG GROUP CO., LTD | ||
| English abbreviation of the Company | FAW Jiefang | ||
| Legal representative of the Company | Wu Bilei | ||
II. Contact Person and Contact Information
| Secretary of the Board of Directors | Securities Affairs Representative | |
| Name | Wang Jianxun | Yang Yuxin |
| Address | No. 2259, Dongfeng Street, Changchun Automobile Development Zone, Jilin Province | No. 2259, Dongfeng Street, Changchun Automobile Development Zone, Jilin Province |
| Tel. | 0431-80918881 0431-80918882 | 0431-80918881 0431-80918882 |
| Fax | 0431-80918883 | 0431-80918883 |
| faw0800@fawjiefang.com.cn | faw0800@fawjiefang.com.cn |
III. Other Information
1. Company Contact Information
Whether the registered address, office address and postal code, website and e-mail address of theCompany have changed in the reporting period
□Applicable ?Not applicable
The registered address, office address and postal code, website and e-mail address of the Companyhave not changed in the reporting period, please refer to the Annual Report 2023 for details.
2. Information Disclosure and Preparation Location
Whether the information disclosure and preparation location have changed in the reporting period
□Applicable ?Not applicable
There is no change in the name and website of the stock exchange and media where the Companydiscloses its semi-annual report, as well as the preparation location of the Company’s semi-annualreport during the reporting period. For details, please refer to the 2023 Annual Report.
3. Other Relevant Data
Whether other relevant data has changed in the reporting period
□Applicable ?Not applicable
IV. Main Accounting Data and Financial IndicatorsWhether the Company needs to retroactively adjust or restate the accounting data of previous years
□Yes ?No
| This reporting period | Same Period of Last Year | Increase/Decrease in This Reporting Period over the Same Period of Last Year | |
| Operating income (CNY) | 35,602,292,639.46 | 33,014,661,914.13 | 7.84% |
| Net profit attributable to shareholders of the listed company (CNY) | 478,251,870.50 | 401,336,302.35 | 19.16% |
| Net profit attributable to shareholders of the listed company after deducting non-recurring profits and losses (CNY) | 283,875,823.95 | 151,966,331.79 | 86.80% |
| Net cash flows from operating activities (CNY) | 4,240,930,055.62 | 6,714,159,377.47 | -36.84% |
| Basic earnings per Share (CNY/share) | 0.1034 | 0.0872 | 18.58% |
| Diluted earnings per Share (CNY/share) | 0.1034 | 0.0872 | 18.58% |
| Weighted average return on equity | 1.93% | 1.68% | Increased by 0.25% |
| At the End of This Reporting Period | At the End of Last Year | Increase/Decrease at the End of This Reporting Period over the End of Last Year | |
| Total assets (CNY) | 80,031,759,450.56 | 65,873,387,927.31 | 21.49% |
| Net assets attributable to shareholders of the listed company (CNY) | 24,268,153,399.20 | 24,486,759,369.40 | -0.89% |
V. Differences in Accounting Data under Domestic and Foreign Accounting Standards
1. Differences in net profits and net assets in the financial report disclosed simultaneouslyaccording to the international accounting standards and China accounting standards
□Applicable ?Not applicable
In the reporting period of the Company, there is no difference in net profits and net assets in thefinancial report disclosed according to the international accounting standards and China accountingstandards.
2. Differences in net profits and net assets in the financial report disclosed simultaneouslyaccording to foreign accounting standards and China accounting standards
□Applicable ?Not applicable
In the reporting period of the Company, there is no difference in net profits and net assets in thefinancial report disclosed according to foreign accounting standards and China accountingstandards.VI. Items and Amounts of Non-recurring Profit and Loss?Applicable □Not applicable
Unit: CNY
| Item | Amount | Description |
| Profits or losses on disposal of non-current assets (including the write-off part of the provision for impairment of assets made) | 746,088.82 | It refers to the net gain on disposal of non-current assets. |
| Government subsidies included in the current profit or loss (except those closely related to the Company’s normal operations, conforming to the State policies and regulations and enjoyed in line with the specified standards, and having a continuous impact on the profit or loss of the Company) | 209,501,338.40 | |
| Reversal of impairment provision for receivables subject to separate impairment test | 4,480,000.00 | It mainly refers to the reversal of impairment provision for receivables subject to separate impairment test. |
| Non-operating income and expenses other than the above | 24,323,682.07 | They mainly refer to the net non-operating income and expenses |
| Less: amount affected by income tax | 44,675,062.74 | |
| Total | 194,376,046.55 |
Specific conditions of other profit and loss items meeting the definition of non-recurring profit andloss:
□Applicable ?Not applicable
There is no specific conditions of profit and loss items meeting definition of non-recurring profitand loss for the Company.Explanation on defining the non-recurring profit and loss items listed in the ExplanatoryAnnouncement No.1 on Information Disclosure by Companies Issuing Securities Publicly - Non-recurring Profit and Loss as recurring profit and loss items
□Applicable ?Not applicable
The Company does not define the non-recurring profit and loss items listed in the ExplanatoryAnnouncement No. 1 on Information Disclosure by Companies Issuing Securities Publicly - Non-recurring Profit and Loss as recurring profit and loss items.
Section III Management Discussion and Analysis
I. Main Businesses of the Company in the Reporting Period(I) Main businesses
The Company is a commercial vehicle manufacturer that produces heavy, medium and lighttrucks, and buses, as well as core components such as engines, transmissions and axles, and has acomplete manufacturing system covering raw materials, core components, key large assemblies andcomplete vehicles. The products of the Company are mainly used in market segments such as traction,cargo carrying, dumping, special purposes, highway passenger transport, bus passenger transport, etc.,and the Company also provides standardized and customized commercial vehicle products.Relying on its five vehicle manufacturing bases, the Company has formed a capacity layout of“coordinated advancement of the main and auxiliary functions, with flexible complementary roles.”The Company’s total annual production capacity amounts to 418 thousand vehicles. Among them,the annual production capacity of each manufacturing base is as follows: Changchun, 153 thousandvehicles; Qingdao, 200 thousand vehicles; Guanghan, 40 thousand vehicles; Liuzhou, 20 thousandvehicles and Foshan, 5 thousand vehicles. In recent years, the Company has increased investment intechnological transformation continuously, accelerated the adjustment of production capacitystructure, and implemented continuous resource optimization and intelligent upgrading for high-endand new energy products. It has formed a number of advanced manufacturing bases with industry-leading levels, and has obvious technical and capacity advantages in the commercial vehicle industry,laying a solid foundation to continue to lead the market.The Company is committed to becoming a “China’s first and world-class” provider of green andintelligent transportation solutions, focusing on the main production lines, insisting on innovation-driven and reform-driven, and creating a leading trend. Main business, products, and business modelof the Company were not changed significantly in the reporting period.(II) Information on the industry to which the Company belongs
In the first half of 2024, the macro-economic growth resumed, with a GDP growth rate of 5%,
reaching the expected level, and achieving stable consumption growth, a significant decline in realestate sales and investment, a rebound in export growth rate from the bottom, and a weakening of thedriving force of economic transformation on the commercial vehicle industry. From the view ofhistorical industry demand and scrapping cycle characteristics, the fluctuation cycle was basicallyaround 7-8 years, and the industry was in the stage of cycle recovery in 2024. In the first half of 2024,the overall freight environment remained stable, with a slight increase in road freight turnover, and ayear-on-year increase of 4%. However, the sluggish road freight rates have not yet improved, and theprofitability of car owners and drivers have remained low. Although the phenomenon of vehiclesquantity exceeding cargo transportation needs and excess transportation capacity has been eased tosome extent, the improvement of the substantive situation was limited and remained an importantfactor in suppressing the demand for medium and heavy trucks at present.In the first half of 2024, the demand for medium and heavy trucks was 571 thousand vehicles,with a year-on-year increase of 4.4%. FAW Jiefang sold 123 thousand medium and heavy trucks,with a year-on-year increase of 9.4%, accounting for 21.5%, with a year-on-year increase of 1%,indicating that the sales growth rate of FAW Jiefang was significantly faster than that of theindustry.In the first half of 2024, due to the impact of low gas prices, accessible refueling, and stablegas supply, the natural gas type medium and heavy trucks continued the high growth trend in 2023,with an industry demand of 109 thousand vehicles, and a year-on-year increase of 104.2%. With itsleading advantage in the natural gas market, FAW Jiefang sold 35 thousand natural gas typemedium and heavy trucks in the first half of the year, still maintaining a leading position in thenatural gas market.Since the policy of comprehensive electrification of vehicles in the public sector has beenvigorously implemented, the proportion of electrification of vehicles used in urban public transport,environmental sanitation, express mail service, urban logistics and distribution, airports and otherscenarios has been rapidly increased, bringing a variety of opportunities for electrificationsubstitution for the industry. In the first half of 2024, the demand for new energy type medium and
heavy truck in the industry was 29 thousand vehicles, with a year-on-year increase of 136.7%. Thequantity of new energy type medium and heavy truck sold by FAW Jiefang was 2 thousandvehicles, with a year-on-year increase of 260%.(III) OperationIn the first half of 2024, By adhering to the guidance of the Xi Jinping Thought on Socialismwith Chinese Characteristics for a New Era, deeply implementing the spirit of the 20
th
NationalCongress of the Communist Party of China and the 2
nd Plenary Session of the 20
thCentral Committeeof the Communist Party of China, and promoting the study and education of Party discipline in ahigh-quality manner, the Company actively implemented its strategic deployment and annualrequirements, closely focused on key tasks, and promoted various work in a solid and effectivemanner with anchored leading goals. As of June 30, 2024, the total assets of the Company amountedto CNY 80.032 billion, with a year-on-year increase of 21.49%, and the net assets attributable toshareholders of the listed company amounted to CNY 24.268 billion, with a year-on-year decrease of
0.89%. During the reporting period, the operating revenue of the Company reached CNY 35.602billion, with a year-on-year increase of 7.84%, and the net profit attributable to the parent companyamounted to CNY 478 million, with a year-on-year increase of 19.16%. The total sale of completevehicles was 149.1 thousand, with a year-on-year increase of 13.4%, of which 122.9 thousandvehicles were medium and heavy trucks, with a year-on-year increase of 9.4%; the sale of light truckswas 26.2 thousand vehicles, with a year-on-year increase of 43.0%; the sale of new energy type was
8.5 thousand vehicles, with a year-on-year increase of 139.8%, showing a trend of leapfrog growth.Overseas exports reached 35.5 thousand vehicles, with a year-on-year increase of 37.2%, hittinganother record high with high growth.
Unit: CNY 100 million
In the first half of 2024, the Company has been awarded the “Annual Enterprise of EmployeeBenefits in China” and has been successfully selected as one of the “China’s Top 100 ESG (CorporateSocial Responsibility) Pioneer Listed Companies in China” for two consecutive years, with a brandvalue exceeding CNY 131.8 billion, ranking first in the industry for 13 consecutive years.
In the first half of 2024, the Company’s key work is as follows:
1. Effective development of leading role of the brand. By solidly promoting the “fivemodernizations” of its brand, the Company has vigorously improved the brand structure of itscomplete vehicle products, and accelerated the revitalization of its service brand. In addition, throughcollaborative efforts in domestic and overseas communication, as well as activities such as the 30
th
anniversary celebration in South Africa, the brand story of FAW Jiefang has attracted widespreadattention from the industry and society, and has won great popular support.
2. Effective implementation of market-leading strategy as a guiding principle. With firmupholding of the leading advantage of platform products, J7 Pioneer Edition was successfullyunveiled and set a new benchmark for “world-class” high-end heavy trucks. With the release of theJiefang “LANTU” hydrogen binary star product, the pace of green transformation has been steadilyaccelerated. More than 40 expanded products were launched in an orderly manner to more stronglysupport market growth.
3. Fruitful achievement of dual-wheel drive system. The Company has broken through nearly40 key core technologies, and achieved significant breakthroughs in the “1025” special project. In
| Total assets | Net assets | Operation revenue | Net profit attributable to parent company |
2023
| 2023 | June 2024 | 2023 | June 2024 |
Semi-annual data of
2023
| Semi-annual data of 2023 | Semi-annual data of 2024 | Semi-annual data of 2023 | Semi-annual data of 2024 | |||
addition, the Company has set up a joint research center with Shell to start the driving test of Starshiptruck. The Youth Research Project has been completed and put into service, and innovativeachievements continue to emerge. Deep promotion of management and personnel system reforms:
With the establishment of the Supply and Procurement Department, the deepening of themanufacturing transformation is started. The Company has laid out its strategic businesses, set upoverseas international companies and post-market companies, and continuously expanded its valuechain and growth chain, achieving initial results in a layered and graded quality operation system.More than 700 talents of various types have been introduced to effectively meet the demand for talentsin various fields. The key measures such as the “Year of Capability Enhancement” have been solidlypromoted and the total payroll management and salary distribution mechanism have been optimized,enabling employees more motivated and energetic in their efforts.
4. Impressive results of four major strategies. Focusing on solid foundation, the Company hasmade great efforts to vigorously consolidate the advantages of domestic traditional vehicles. In thedual base of medium and heavy trucks, a coordinated operation mechanism has been established forpricing and promotion, seizing market opportunities such as NG and large single bridge, andmaintaining sales volume as the top in China. The product strategy of “strengthening advantages,making up for shortcomings, and seizing opportunities” has been applied for light vehicles, and themarketing strategies of “taking the initiative” and “rapid expansion” have been implemented toachieve a dual increase in sales share. The Company has made great efforts in new energy vehicles,comprehensively pushed forward the layout of complete vehicles and independent assemblies, anddeeply cultivated innovation in typical scenarios and modes, showing a trend of leapfrog growthcontinuously. The Company has seized opportunities in terms of overseas exports, focused on thefour major strategies, and applied a combination of deepening reforms, strengthening systemfoundation and enhancing capabilities, resulting in record high sales in the same period. By adheringto the profitability target orientation and strictly controlling expenses, the Company has improvedrevenue-generating ability and provided strong support for operations.
5. Solid implementation of seven key works. The Company has implemented strategic
management methodology, completed the first round of strategic intent and innovation focusdiscussions, and focused more on strategic direction, continuously strengthening the role of strategicleadership. The Company has promoted problem solving in overseas market problems through qualitymanagement, and effectively and stably maintained its quality reputation. The Company has orderlypromoted the construction of more than 30 major IT systems, eliminated nearly 20 isolated islands,and promoted the application of employee intelligent assistants and styling-assisted design and otheradvanced AI technologies, realizing a more effective digital and intelligent transformation.Procurement resources at each base are controlled in an integrated manner to provide security forprocurement and supply, resulting in 100% assurance rate for procurement resources, and a moreresilient and secure supply chain. The lean and efficient practices have been implemented to providestrong support for market demand. The improvement of manufacturing technology capability hasbeen accelerated. The new energy qualifications have been obtained for Liuzhou and Guanghan, theproduction line for electric drive axles has reached the standard of production, and the production linefor fuel cell has met the production conditions. The Company has strengthened the capital operation,maintained the top market value in A-share commercial vehicles, and made significant progress inthe refinancing project approved by the CSRC. The action in terms of safety and environmentalprotection remediation and difficulties overcoming has been carried out in a comprehensive manner,resulting in more sound risk compliance and internal control system, accelerated improvement inconfidentiality management, and gradually enhanced support capacity.
In the second half of the year, with unswervingly upholding and strengthening of the leadershipof the Party, continuous implementation of annual work ideas and effective methods of overcomingdifficulties of the Company, maintenance of strategic focus, enhancement of crisis awareness,development of the spirit of struggle, and realization of various goals and tasks of party building andoperation throughout the year, the Company will lay a more solid foundation for high-qualityachievements throughout the year and sprinting towards the 14
thFive-Year Plan with stronger fightingspirit, more motivation, and better results.
II. Analysis of Core Competitiveness
The Company adheres to the corporate vision of “being the most proud commercial vehicleenterprise and the most trustworthy commercial vehicle brand”, the mission of “becoming China’sfirst and world-class provider of green and intelligent transportation solutions and promoting a moreprosperous society”, and the brand concept of “being trustworthy, intelligent and courageous, andbenefiting the world”; takes products and services as the main task, customers and employees as thefoundation, innovation and reform as the driving force; focuses on industry trends and customer needs,and improves product competitiveness and service level rapidly.
1. Product research and development: Four major fields: heavy, medium, and light trucks andpassenger vehicles, are covered. In the field of heavy trucks, eight major product platforms, i.e. J7,J6P, J6V, J6E, Yingtu, JH6, JH5, and Han V2.0, are included. In the field of medium trucks, fourmajor product platforms, i.e. J6G, J6L, JK6, and Dragon V, are included. In the field of light trucks,four major product platforms, i.e. Lingtu, Tiger 6G, J6F, Tiger V, are included. In the field ofpassenger vehicles, road vehicles, new energy buses, recreational vehicles, etc., are included, and newenergy products achieve full coverage of mainstream scenarios in the market segments. The Companyhas built a strong and complete independent R&D system in China from foresight technology, engine,transmission and axle to complete vehicle, and formed an efficient and collaborative R&D team ofmore than 3,000 people. With its five core capabilities, the Company has created five technicalplatforms encompassing low carbonization, informatization, intelligence, electrification and highquality, become one of the commercial vehicle enterprises mastering the core technologies of world-class complete vehicles and three power assemblies, and passed ISO9001, IATF16949 and GB9001Bquality system certifications. It is also a national-level independent automobile product R&D and testcertification base. In recent years, by accurately grasping the demands of the market segment, theCompany has successfully built the differentiated product technology advantages in traditionalvehicle systems, such as energy-saving, light weight, high-quality, and low-cost, the leading producttechnology advantages such as digital intelligent independent assembly of new energy vehicles,complete vehicle thermal management and complete vehicle energy management, and the pioneeringproduct technology advantages such as smart driving of intelligent connected vehicles, Internet of
Vehicles (IoV) big data and intelligent cockpit. Therefore, the Company always maintains anindustry-leading position in the fierce market competition.
2. Marketing and procurement: Adhering to the customer value orientation, the Company hastaken the lead in establishing a marketing service system with complete functions. The marketingservice network of three sales companies (including Changchun Medium and Heavy-duty Vehicle,Qingdao Medium and Heavy-duty Vehicle and Light Trucks) composed of nearly 1,000 dealers, morethan 1,800 service providers, more than 80 spare parts centers and more than 200 spare parts dealerscovers more than 230 prefecture-level cities in China, with a coverage rate of 97.5% in cities with acapacity of more than 1,000 vehicles. With a national average service radius of 48 kilometers, it is atthe leading level in the industry and provides users with 24-hour efficient and high-quality services.The Company is committed to integrating global high-quality resources to provide a strong guaranteefor the high reliability of Jiefang trucks. In recent years, FAW JIEFANG has successively signedcontracts with Huawei, Knorr-Bremse, ZF, Shell, Volkswagen, China Unicom, JD, PlusAI and othertop enterprises at home and abroad to become strategic partners and establish joint ventures.
3. Production and manufacturing: The Company has the most complete manufacturing systemin China from raw materials to core components, from key assemblies to complete vehicles, and itsprocessing and manufacturing depth ranks the top in the industry. The Company has five completevehicle bases in Changchun, Qingdao, Guanghan, Liuzhou and Foshan, with an existing plannedproduction capacity of 418 thousand vehicles. The Company also has three assembly bases inChangchun, Wuxi and Dalian. With its three product series, namely All-Win, Power-Win, and King-Win, the Wuxi Diesel Engine Factory has reached the world-class manufacturing level. Based on thebusiness such as commercial intelligent vehicles, post-market services, connected services, newenergy business model operations and fuel cell power systems, the Company has built six newbusiness bases in Suzhou, Nanjing, Tianjin, Shijiazhuang, Foshan and Wuxi.
4. Overseas export: The Company actively responds to the “Belt and Road” initiative,accelerates its presence in overseas markets, and creates new avenues of growth for its business. TheCompany accelerates the development of its commercial vehicle overseas business comprehensively,increasing investment layout, broadening the channels gradually and expanding overseas influenceof Jiefang brand continuously. With the export of Jiefang brand products to over 80 countries and
regions such as Southeast Asia, Middle East, Latin America, Africa and Eastern Europe, there aremore than 100 core dealers and nearly 190 service providers in more than 40 countries and regionsaround the world. Export products include models such as J7, J6, JH6, and Tiger V. Additionally, theCompany leverages its system advantages based on reality, and through system collaboration, strivesto build an overseas marketing platform of “talent+ service+ automotive+ finance”.
5. New energy products: It covers five major product lines of traction, self-dumping, cargo loading,special purpose and passenger vehicles, including three major technology routes of pure electric, fuelcell and hybrid. Differentiated combinations have been carried out to form a synergy to achieve fullcoverage of mainstream scenarios in the market segments, and to rapidly increase the terminal marketshare. The goal of product development is to meet market demand and alleviate user pain points. Itfocuses on achieving the “three-low and one-high” core competitiveness, which refers to low cost,low self-weight, low energy consumption and high reliability. Additionally, the Company strives todifferentiate its products through the attributes of long endurance, low-temperature resistance, highintelligence, and high comfort. To achieve these goals, the Company undertakes continual iterationand upgrading of its products and technologies. In terms of core technology, the Company hasachieved integration across three critical areas: complete vehicle architecture, vehicle controlsoftware, and assembly interface, which greatly improves the development efficiency. The Companyharnesses technologies such as efficient energy recovery and scenario-based calibration tosignificantly reduce energy consumption. Moreover, the application of assembly technologyincorporates a dual-wheel drive system that combines independent core assemblies with externalhigh-quality social resources, enabling complementary advantages. The independent electric drivesystem achieves full coverage of heavy, medium and light trucks, and passenger vehicles. Bycontinuously exploring and applying new products, technologies and processes, the Company aimsto maintain a leading position in both new energy technology and new energy products in the market.III. Analysis of Main BusinessGeneralSee relevant contents of “I. Main Businesses of the Company in the Reporting Period”.Year-on-year Changes of Main Financial Data
Unit: CNY
| This reporting period | Same period of previous year/at the beginning of the period | Year-on-year increase and decrease | Reason for Change | |
| Operating income | 35,602,292,639.46 | 33,014,661,914.13 | 7.84% | |
| Operating Costs | 33,252,419,902.01 | 30,590,523,778.02 | 8.70% | |
| Sales expenses | 835,467,097.82 | 774,822,818.33 | 7.83% | |
| Administrative expenses | 739,765,844.96 | 871,161,062.92 | -15.08% | |
| Financial expenses | -394,776,211.91 | -415,663,432.06 | 5.03% | |
| Income tax expenses | -154,311,861.89 | -203,065,319.73 | 24.01% | |
| R&D investment | 1,249,527,872.33 | 1,248,047,703.54 | 0.12% | |
| Net cash flows from operating activities | 4,240,930,055.62 | 6,714,159,377.47 | -36.84% | Mainly due to the increase in cash payments for the purchase of goods and acceptance of services in the current period |
| Net cash flows from investment activities | -779,303,259.33 | -961,691,276.91 | 18.97% | |
| Net cash flows from financing activities | -705,678,066.97 | -19,709,605.31 | -3,480.38% | Mainly due to the distribution of cash dividends in the current period. |
| Net increase in cash and cash equivalents | 2,755,942,692.24 | 5,732,768,748.83 | -51.93% | Mainly due to the increase in cash payments for the purchase of goods and acceptance of services in the |
| current period | ||||
| Notes receivable | 110,591,432.00 | 44,626,048.13 | 147.82% | Mainly due to the increase in commercial acceptance bills held at the end of the current period. |
| Accounts receivable | 11,708,633,140.72 | 1,989,386,169.77 | 488.56% | Mainly due to the increase in accounts receivable in the current period. |
| Accounts receivable financing | 8,448,273,887.92 | 4,878,126,972.73 | 73.19% | Mainly due to the increase in bank acceptance bills held at the end of the period. |
| Prepayments | 410,909,476.74 | 689,621,097.66 | -40.42% | Mainly due to the decrease in prepayments in the current period. |
| Development expenditures | 222,837,913.82 | 109,873,830.59 | 102.81% | Mainly due to the increase in the capitalization amount of research and development in the current period. |
| Notes payable | 25,947,712,941.61 | 11,769,864,678.11 | 120.46% | Mainly due to the increase in notes payable in the current period. |
| Contract liabilities | 1,055,648,915.82 | 2,204,692,602.77 | -52.12% | Mainly due to the decrease in contract liabilities in the current period. |
| Employee compensation payable | 560,440,000.75 | 402,039,885.19 | 39.40% | Mainly due to the increase in employee compensation |
| payable in the current period. | ||||
| Current portion of non-current liabilities | 14,750,421.22 | 27,171,195.40 | -45.71% | Mainly due to the decrease in lease liabilities due within one year |
| Other current liabilities | 60,702,098.17 | 214,456,037.00 | -71.69% | Mainly due to the decrease in contract liabilities included in other current liabilities |
| Treasury shares | 6,246,851.73 | 86,131,497.27 | -92.75% | Mainly due to the decrease in treasury shares in the current period. |
| Other comprehensive incomes | -3,197,978.68 | -8,514,110.10 | 62.44% | Mainly due to the increase in other comprehensive income in the current period. |
| Other income | 353,779,659.32 | 195,656,370.11 | 80.82% | Mainly due to the increase in VAT plus tax credits in the current period. |
| Credit impairment loss | -8,593,082.48 | -35,480,726.08 | 75.78% | Mainly due to the decrease in provision for impairment of receivables in the current period. |
| Asset impairment loss | -76,666,599.19 | -35,324,171.95 | -117.04% | Mainly due to the increase in provision for impairment of inventories in the current period. |
| Income from assets disposal | 746,088.82 | 98,132,494.11 | -99.24% | Mainly due to the decrease in income |
| from disposal of assets in the current period. | ||||
| Non-operating income | 28,106,223.95 | 9,542,486.79 | 194.54% | Mainly due to the increase in non-operating income in the current period. |
| Net after-tax amount of other comprehensive income | 5,316,131.42 | 250,455.89 | 2,022.58% | Mainly due to the increase in other comprehensive income in the current period. |
Significant changes in the Company’s profit composition or source during the reporting period
□Applicable ?Not applicable
No significant changes in the Company’s profit composition or source during the reporting period.
Composition of operating income
Unit: CNY
| This reporting period | Same Period of Last Year | Year-on-year increase and decrease | |||
| Amount | Proportion in Operating Income | Amount | Proportion in Operating Income | ||
| Total operating income | 35,602,292,639.46 | 100.00% | 33,014,661,914.13 | 100.00% | 7.84% |
| By industries | |||||
| Automobile industry | 35,602,292,639.46 | 100.00% | 33,014,661,914.13 | 100.00% | 7.84% |
| By products | |||||
| Commercial vehicles | 33,555,960,698.74 | 94.25% | 30,708,282,078.93 | 93.01% | 9.27% |
| Spare parts and others | 2,046,331,940.72 | 5.75% | 2,306,379,835.20 | 6.99% | -11.28% |
| By regions | |||||
| Northeast China, North China, Northwest China and Southwest China | 21,150,886,396.57 | 59.41% | 17,861,002,372.03 | 54.10% | 18.42% |
| East China, South China and Central China | 14,451,406,242.89 | 40.59% | 15,153,659,542.10 | 45.90% | -4.63% |
Information on industries, products or regions accounting for more than 10% of the Company’soperating income or operating profit?Applicable □Not applicable
Unit: CNY
| Operating income | Operating Costs | Gross Profit Rate | Increase/Decrease of Operating Income over the Same Period of Last Year | Increase/Decrease of Operating Cost over the Same Period of Last Year | Increase/Decrease of Gross Profit Rate over the Same Period of Last Year | |
| By industries | ||||||
| Automobile industry | 34,781,334,502.47 | 32,601,996,683.55 | 6.27% | 8.22% | 8.93% | Reduced by 0.60% |
| By products | ||||||
| Vehicle | 33,555,960,698.74 | 31,615,239,737.89 | 5.78% | 9.27% | 10.55% | Reduced by 1.09% |
| Spare parts and others | 1,225,373,803.73 | 986,756,945.66 | 19.47% | -14.36% | -25.84% | Increased by 12.47% |
| By regions | ||||||
| Northeast China, North China, Northwest China and Southwest China | 20,663,165,213.34 | 18,891,170,038.09 | 8.58% | 18.84% | 16.65% | Increased by 1.72% |
| East China, South China and Central China | 14,118,169,289.13 | 13,710,826,645.46 | 2.89% | -4.30% | -0.18% | Reduced by 4.00% |
The main business data of the Company adjusted at the end of the latest reporting period if thestatistical caliber of the Company’s main business data is adjusted in the reporting period
□Applicable ?Not applicable
IV. Analysis of Non-main Business
□Applicable ?Not applicable
V. Analysis of Assets and Liabilities
1. Major changes in asset composition
Unit: CNY
| At the End of This Reporting Period | End of Last Year | Increase/Decrease in Proportion | Description of Major Changes | |||
| Amount | Proportion in Total Assets | Amount | Proportion in Total Assets | |||
| Monetary capital | 25,609,204,954.65 | 32.00% | 22,920,710,903.12 | 34.80% | -2.80% | |
| Accounts receivable | 11,708,633,140.72 | 14.63% | 1,989,386,169.77 | 3.02% | 11.61% | |
| Contract assets | 16,476,441.87 | 0.02% | 17,582,856.82 | 0.03% | -0.01% | |
| Inventories | 7,580,283,903.54 | 9.47% | 9,210,971,356.15 | 13.98% | -4.51% | |
| Investment properties | 46,253,781.34 | 0.06% | 47,049,995.53 | 0.07% | -0.01% | |
| Long-term equity investments | 5,687,858,933.19 | 7.11% | 5,469,591,970.26 | 8.30% | -1.19% | |
| Fixed assets | 11,470,284,660.10 | 14.33% | 11,380,286,165.58 | 17.28% | -2.95% | |
| Project under construction | 750,571,700.84 | 0.94% | 816,484,299.18 | 1.24% | -0.30% | |
| Right-of-use assets | 117,251,281.65 | 0.15% | 138,989,886.70 | 0.21% | -0.06% | |
| Contract liabilities | 1,055,648,915.82 | 1.32% | 2,204,692,602.77 | 3.35% | -2.03% | |
| Lease liabilities | 35,523,520.47 | 0.04% | 30,494,014.13 | 0.05% | -0.01% | |
2. Main overseas assets
□Applicable ?Not applicable
3. Assets and liabilities measured at fair value
?Applicable □Not applicable
Unit: CNY
| Item | Beginning balance | Profits and losses from changes in fair value for the current period | Accumulated changes in fair value through equity | Provision for impairment in the current period | Purchase amount in the current period | Sales amount in the current period | Other changes | Closing balance |
| Financial assets | ||||||||
| 1. Investment in other equity instruments | 480,780,000.00 | 480,780,000.00 | ||||||
| Total | 480,780,000.00 | 480,780,000.00 | ||||||
| Financial liabilities | 0.00 | 0.00 | ||||||
Content of other changesWhether the measurement attribution of the Company’s main assets within the Reporting Periodwas significantly changed or not
□Yes ?No
4. Restrictions on asset rights as of the end of the reporting periodFor details, please refer to Note 22 “Assets with restricted ownership or use right” in part VII“Notes to Items in Consolidated Financial Statements” of Section X - Financial Report.
VI. Investment Analysis
1. Overall situation
?Applicable □Not applicable
| Investment Amount in the Reporting Period (CNY) | Investment Amount in the Same Period of Previous Year (CNY) | Variation range |
| 4,900,000.00 | 725,139,697.94 | -99.32% |
2. Major equity investments acquired in the reporting period
□Applicable ?Not applicable
3. Major non-equity investments in progress in the reporting period
□Applicable ?Not applicable
4. Financial assets investment
(1) Securities investment
□Applicable ?Not applicable
The Company has no securities investment in the reporting period.
(2) Derivatives investment
□Applicable ?Not applicable
The Company has no derivative investment in the reporting period.
5. Use of raised funds
□Applicable ?Not applicable
The Company does not use raised funds in the reporting period.VII. Sales of Major Assets and Equity
1. Sale of major assets
□Applicable ?Not applicable
The Company does not sell major assets in the reporting period.
2. Sale of major equity
□Applicable ?Not applicable
VIII. Analysis on Principal Holding and Joint-stock Companies?Applicable □Not applicableMajor subsidiaries and joint-stock companies affecting over 10% net profit of the Company
Unit: CNY 10 thousand
| Company Name | Company Type | Main business | Registered Capital | Total Assets | Net Assets | Operating income | Operating Profit | Net Profit |
| FAW Jiefang Automotive Co., Ltd. | Subsidiaries | Development, manufacturing and sales of vehicles and parts | 1,080,301.25 | 7,557,665.39 | 1,982,506.38 | 3,560,229.26 | 10,339.52 | 28,203.07 |
| First Automobile Finance Co., Ltd. | Joint-stock companies | Handling of financial business within the Group and other financial businesses approved by the People’s Bank of China | 1,000,000.00 | 16,873,937.20 | 2,208,124.61 | 328,189.22 | 131,240.44 | 98,619.13 |
Acquisition and disposal of subsidiaries in the reporting period
□Applicable ?Not applicable
Description of main holding and joint-stock companies
IX. Structured Entities Controlled by the Company
□Applicable ?Not applicable
X. Risks Faced by the Company and Countermeasures
1. Competition risk in the domestic market
The status quo of domestic stock competition has remained unchanged, and the game amongthe leading enterprises in the industry around product prices, marketing strategies, financial policiesand other end-sale factors will become more intense. Although environmental control, trade-in,emission standards and other policy guidances can stimulate the updates, the low road freight rates,the industry’s low level of operation and other commercial vehicle industry conditions cannot beimproved in the short term, and the competition in the industry may be intensified.
2. Risk of exchange rate fluctuations
Due to the ongoing competition in the domestic heavy truck market, the export of products isan inevitable trend. In the course of development of international business, due to economic data,monetary policies, investor confidence and various political factors, the exchange rate betweenCNY and currencies commonly used for international settlements may fluctuate, which may have acertain impact on the Company.
(3) Market structure change risk
With the continuous growth of industrial investment and the active recovery of privateinvestment, the prices of gasoline and diesel and liquefied natural gas, and the cost of new energybatteries are changing steadily. Under the influence of policies such as slowing down the real estatemarket and fostering new economic growth, the market structure will be further adjusted, and theCompany will face opportunities and challenges brought by changes in market structure. Moreover,due to changes in market structure, the market share of new energy products will continue toincrease. However, the intensified competition in the new energy market will also bring great risksto the operation of the Company.
Based on the above risks, the Company has prepared the following solutions:
1. Enhancement of environmental research and market study. The Company will conduct
market research and risk factor analysis on domestic and international political and economicenvironments, pay close attention to national policies and industry dynamics, and adjust businessstrategies in a timely manner. It will also establish a sound mechanism for obtaining environmentaland market information, strengthen publicity and promotion, and optimize cost structure, enhancingproduct technology level, and responding to market changes in a timely manner.
2. Improvement of product and service capabilities. By closely focusing on new energy andintelligence and other rapid development fields, the Company will launch new products that meetmarket demand, deeply explore user service needs, and improve the service capabilities to enhanceuser experience and satisfaction. Through innovation in technologies, concepts, and services, theCompany will continue to enhance its brand image and competitive strength, solidify its marketposition in a drastically changing environment, and avoid falling into a vicious cycle of low-levelprice war and disorderly competition.
3. Comprehensive development of overseas business system. It is required to promote a highlevel of opening up to the outside world, carry out overall arrangement in advance, and makeadequate preparations for diversified exports. Through the increased overseas recognition ofChinese products and leading advantages in new energy technology, based on the segmentationcharacteristics of the target market and user needs, the Company carries out customized productdevelopment to enhance the regional adaptability of products, provide cooperation with theexpansion of overseas marketing networks, and enhance overseas service level to strive for moreoverseas space.
4. Improvement for management of foreign exchange positions. By utilizing the foreignexchange market and exchange rate prediction information, and leveraging the marking-to-marketservices of professional institutions for foreign exchange risk, the Company can provides timelyinsight into foreign exchange risks, capture advantageous foreign exchange prices, and seizewindow periods, resulting in reduction of settlement costs, control of foreign exchange risks, andimprovement of capital returns.XI. Implementation of the “Improvement of Both Quality and Return” Action PlanAnnouncement on Whether the Company Disclosed the “Improvement of Both Quality and Return”
Action Plan.?Yes □NoThe “Improvement of Both Quality and Return” action plan is prepared in order to implementthe guiding ideologies of “activating the capital market and boosting investors’ confidence” asproposed at the meeting of the Political Bureau of the Central Committee of the CPC and of“vigorously improving the quality and investment value of listed companies, taking more powerfuland effective measures, and focusing on market stability and confidence stability” as proposed in theexecutive meeting of the State Council, safeguard the interests of all shareholders, enhance theinvestors’ confidence and promote the long-term sound and sustainable development of the Company.For details, please refer to the Announcement on the “Improvement of Both Quality and Return”Action Plan published by the Company in the Securities Times, China Securities Journal andCNINFO (http://www.cninfo.com.cn) on March 2, 2024.The Company consistently prioritizes high-quality development as its core theme. It is committedto advancing its main business and aspires to establish itself as a leading brand. The company placesa strong emphasis on product leadership, continuously innovating and driving reforms. It activelypursues the mastery of key core technologies, constantly striving to conquer new frontiers. It isaccelerating towards its goal of becoming “China’s first and world-class” green and intelligenttransportation solution provider, as well as a century-old national automobile brand. The Companyconstantly consolidates its corporate governance structure, improves its internal control system,promotes the standardized and efficient operation of the “shareholders’ meeting, Board of Directorsand Board of Supervisors”, and gives full play to the role of various governance subjects, thusensuring scientific and effective decision-making. The Company strictly abides by laws, regulationsand regulatory agency provisions, continuously improves the information disclosure quality,highlights the importance and pertinence of information disclosure, fully demonstrates the intrinsicvalue of the Company, and provides investors with an objective decision-making basis. Throughlisting announcements, brokerage strategy meetings, investor exchanges, Interaction Easy, telephone,email and other channels, the Company ensures good communication with investors and builds anefficient and transparent communication platform.
Through strict implementation of shareholders’ dividend return planning and profit distributionpolicy, in combination with the actual situation of the enterprise, the Company has developed a profitdistribution plan 2023, and distributed a cash dividend of CNY 1.50 (including tax) per 10 shares toall shareholders on the basis of 4,623,863,714 shares, resulting in a total distribution of cash dividendsof CNY 693,579,557.10 (including tax). The remaining undistributed profits were carried forward tothe next accounting year. The Company does not convert its capital reserves into share capital. Theex-warrants and ex-dividend date for this distribution plan is June 24, 2024.
Section IV Corporate GovernanceI. Information on Annual Shareholders’ Meeting and Extraordinary Shareholders’ MeetingHeld in the Reporting Period
1. Shareholders’ meeting in the reporting period
| Session | Meeting Type | Participation Ratio of Investors | Date | Date of Disclosure | Meeting Resolution |
| First extraordinary shareholders’ meeting of 2024 | Extraordinary shareholders’ meeting | 85.00% | February 21, 2024 | February 22, 2024 | The Proposal on the Estimated Amount of Daily Related Transactions for the Year 2024, the Proposal on the Estimated Amount of Financial Business with First Automobile Finance Co., Ltd. for the Year 2024, the Proposal on the Election of Deng Weigong as a Non-Independent Director of the Company and the Proposal on the Election of Li Ying as a Supervisor of the Company have been deliberated and adopted |
| Annual shareholders’ meeting of 2023 | Annual shareholders’ meeting | 84.45% | April 25, 2024 | April 26, 2024 | The 2023 Annual Work Report of the Board of Directors, the 2023 Annual Work Report of the Board of Supervisors, the 2023 Financial Final Accounts, the 2023 Annual Reportand Its Summary, the 2023 Profit Distribution Plan, the Proposal on Unfulfilling Conditions for Releasing Restricted Share for the Third Release Period of Restricted Shares Firstly Granted and the Second Release Period of Restricted Shares Reserved for Granting in Phase I Restricted Share |
| Incentive Plan and Repurchase and Cancellation of Partial Restricted Shares, the Proposal on Changing the Registered Capital of the Company, the Proposal on Modifying the Articles of Association, and the Proposal on the Election of Wang Hao as a Non-Independent Director of the Company have been deliberated and adopted | |||||
| Second Extraordinary Shareholders’ Meeting of 2024 | Extraordinary shareholders’ meeting | 84.11% | June 19, 2024 | June 20, 2024 | The Proposal on Extending the Validity Period of the Resolution on the Company’s 2023 Plan for Issuing A-share to Specific Targets, the Proposal on Extending the Authorization Period of the Resolution on Requesting the Shareholders’ Meeting of the Company to Authorize the Board of Directors to Handle Specific Matters Related to the Issuance of A-shares to Specific Objects, and the Proposal on the Election of Chen Hua as a Non-Independent Directors of the Company have been deliberated and adopted |
2. Preferred shareholders with resumed voting rights request to convene an extraordinaryshareholders’ meeting
□Applicable ?Not applicable
II. Changes in Directors, Supervisors and Senior Executives of the Company?Applicable □Not applicable
| Name | Position | Type | Date | Reason |
| Deng Weigong | Director | Elected | February 21, 2024 |
| Zhang Guohua | Director | Departure from office | March 8, 2024 | Job changes |
| Wang Hao | Director | Elected | April 25, 2024 | |
| Chen Hua | Director | Elected | June 19, 2024 | |
| Yan Feng | Chairman of Board of Supervisors | Departure from office | January 17, 2024 | Personal reasons |
| Li Ying | Chairman of Board of Supervisors | Elected | March 28, 2024 | |
| Ren Ruijie | Supervisor | Departure from office | March 8, 2024 | Job changes |
| Tian Haifeng | Deputy General Manager | Decruitment | March 8, 2024 | Job changes |
| Wang Jianyu | Deputy General Manager | Appointed | March 28, 2024 |
III. Profit Distribution and Transfer from Capital Reserve to Share Capital in the ReportingPeriod
□Applicable ?Not applicable
The Company does not plan to pay cash dividends or bonus shares, or convert reserves into sharecapital in the first half of the year.IV. Implementation of the Company’s Equity Incentive Plan, Employee Stock OwnershipPlan or Other Employee Incentive Measures?Applicable □Not applicable
1. Equity incentive
(1) On November 20, 2023, the Company held the 7
th
Meeting of the 10
thBoard of Directorsand the 6
th
Meeting of the 10
th
Board of Supervisors respectively, and deliberated and adopted theProposal on Repurchase and Cancellation of Partial Restricted Shares in Phase I Restricted Share
Incentive Plan, which was deliberated and adopted at the Fourth Extraordinary Shareholders’ Meetingin 2023. The Company agreed to repurchase and cancel all or part of 512,807 restricted shares thathave been granted to 10 incentive targets but have not been released from the restriction for sales. OnMarch 28, 2024, the Company published the Announcement on Completion of Repurchase andCancellation of Partial Restricted Shares on CNINFO (http://www.cninfo.com.cn).
(2) On March 28, 2024, the Company held the 11
th Meeting of the 10
thBoard of Directors andthe 10
th
Meeting of the 10
thBoard of Supervisors respectively, and deliberated and adopted theProposal on Unfulfilling Conditions for Releasing Restricted Share for the Third Release Period ofRestricted Shares Firstly Granted and the Second Release Period of Restricted Shares Reserved forGranting in Phase I Restricted Share Incentive Plan and Repurchase and Cancellation of PartialRestricted Shares. The Company agreed to repurchase and cancel the restricted shares of 299 objectsfailing to fulfill the conditions for releasing the restriction for sales, with a total repurchase quantityof 12,621,954 shares. On June 15, 2024, the Company published the Announcement on Completionof Repurchase and Cancellation of Partial Restricted Shares on CNINFO (http://www.cninfo.com.cn).For details of the above proposals, please refer to the relevant announcements published by theCompany in Securities Times, China Securities Journal and CNINFO (http://www.cninfo.com.cn).
2. Implementation of employee stock ownership plan
□Applicable ?Not applicable
3. Other employee incentives
□Applicable ?Not applicable
Section V Environmental and Social ResponsibilitiesI. Major Environmental Protection IssuesWhether the listed company and its subsidiaries are key pollutant discharging entities announced bythe environmental protection authority?Yes □NoEnvironmental protection related policies and industry standardsThe company strictly abides by the Environmental Protection Law of the People’s Republic ofChina, the Law of the People’s Republic of China on Environmental Impact Assessment, theRegulations on Environmental Protection Management of Construction Projects, the Law of thePeople’s Republic of China on the Prevention and Control of Atmospheric Pollution, the Law of thePeople’s Republic of China on the Prevention and Control of Water Pollution, the Law of the People’sRepublic of China on the Prevention and Control of Noise Pollution, the Law of the People’s Republicof China on the Prevention and Control of Environmental Pollution by Solid Wastes, the Law of thePeople’s Republic of China on the Prevention and Control of Soil Pollution, the Law of the People’sRepublic of China on the Promotion of Clean Production, the Measures for the Administration ofPollutant Discharge Permits, the Environmental Protection Tax Law of the People’s Republic ofChina, the Measures for the Administration of the List of Key Units of Environmental Supervision,the Measures for the Administration of Legal Disclosure of Environmental Information of Enterprises,the Measures for the Administration of Hazardous Waste Transfer and other relevant laws andregulations; and the Integrated Emission Standard of Air Pollutants (GB16297-1996), the IntegratedWastewater Discharge Standard (GB8978-1996), the Emission Standard of Industrial EnterprisesNoise at Boundary (GB12348-2008), the Standard for Pollution Control on Hazardous Waste Storage(GB18597-2023), the Technical Guidelines for Deriving Hazardous Waste Management Plans andRecords (HJ1259-2022), the Technical Specifications for Acceptance of Environmental ProtectionFacilities for Completed Construction Projects - Automobile Manufacturing Industry (HJ407-2021),and other national and industry standards.
Administrative licensing for environmental protectionThe Company strictly implemented the system of “environmental impact assessment” and“simultaneous design, construction and operation” when implementing the projects. All key pollutantdischarging entities shall apply for pollutant discharge permits according to legal provisions, andstrictly implement the pollutant discharge permit system.
| S/N | Name of Unit | Application (Renewal) Date of Pollutant Discharge Permit | Pollutant Discharge Permit No. | Validity Period (Year) |
| 1 | Truck Factory of FAW Jiefang Automotive Co., Ltd | December 30, 2022 | 91220101743028725R001R | 5 |
| 2 | Chengdu Branch of FAW Jiefang Automotive Co., Ltd. | July 16, 2022 | 91510114746407720B001V | 5 |
| 3 | Sichuan Branch of FAW Jiefang Automotive Co., Ltd. | July 21, 2023 | 91510681MABQ7AKG4Y001V | 5 |
| 4 | Transmission Branch (Transformation Factory) of FAW Jiefang Automotive Co., Ltd. | December 31, 2021 | 91220101571131661N001Q | 5 |
| 5 | Transmission Branch (New Axle Factory) of FAW Jiefang Automotive Co., Ltd. | May 21, 2024 | 91220101571131661N003V | 5 |
| 6 | Changchun Intelligent Bus Branch of FAW Jiefang Automotive Co., Ltd. | January 9, 2023 | 91220108MA170MRB74001V | 5 |
| 7 | FAW Jiefang (Qingdao) Automotive Co., Ltd. | December 29, 2023 | 91370200163567343M001V | 5 |
| 8 | Engine Branch of FAW Jiefang Automotive Co., Ltd. | December 27, 2022 | 912201017561635719001Q | 5 |
| 9 | Wuxi Diesel Engine Works of FAW Jiefang Automotive Co., Ltd. | October 5, 2021 | 91320200748159222H001Q | 5 |
| 10 | Wuxi Diesel Engine Huishan Factory of FAW Jiefang Automotive Co., Ltd. | June 19, 2023 | 91320206330969017N001C | 5 |
| 11 | FAW Jiefang Dalian Diesel Engine Co., Ltd. | March 14, 2024 | 91210213717880308K001U | 5 |
Industry Emission Standards and Specific Conditions of Pollutant Discharge Involved in Production and Operation Activities
| Name of Company or Subsidiary | Types of Main Pollutants and Specific Pollutants | Names of Main Pollutants and Specific Pollutants | Discharge Mode | Number of Discharge Outlets | Distribution of Discharge Outlets | Discharge concentration/intensity | Enforced pollutant discharge standard | Total Discharge | Total Approved Discharge | Excessive Discharge |
| Truck Factory of FAW Jiefang Automotive Co., Ltd | Wastewater | COD | Continuous or intermittent discharge | 4 | One for frame, cab and non-metal coating respectively, and one for general domestic sewage outlet | 191.31mg/L | 800mg/L | 58.8171 t | 630.104 t | No excessive discharge |
| Exhaust gas | Non-methane hydrocarbon | Continuous discharge during production | 71 | Frame, cab, roof of non-metallic coating workshop | 4.0066mg/m? | 120mg/m? | 5.4718 t | 346.1955 t | No excessive discharge | |
| Chengdu Branch of FAW Jiefang Automotive Co., Ltd. | Wastewater | COD | Intermittent discharge | 1 | Southeast of the Company | 27.5mg/L | 500mg/L | 0.135 t | 21.3 t | No excessive discharge |
| Exhaust gas | Non-methane hydrocarbon | Continuous discharge during production | 1 | Roof of coating workshop | 1.48mg/m? | 60mg/m? | 5.9316 t | 75.91 t | No excessive discharge | |
| Sichuan Branch of FAW Jiefang Automotive Co., Ltd. | Wastewater | COD | Intermittent discharge | 1 | Northwest corner of the Company | 45mg/L | 500mg/L | 0.285 t | 40.8469 t | No excessive discharge |
| Exhaust gas | Non-methane hydrocarbon | Continuous discharge during production | 15 | Roof of Painting Workshop and General Assembly Workshop | 9.071mg/m? | 60mg/m? | 6.5784 t | 16.5208 t | No excessive discharge | |
| Transmissio | Wastew | COD | Intermitten | 2 | One in the | 19mg/L | 500mg/L | 0.5778 t | 10 t | No |
| n Branch (Transformation Factory) of FAW Jiefang Automotive Co., Ltd. | ater | t discharge | northwest corner of substation one workshop and one in the southwest corner of substation two workshop | excessive discharge | ||||||
| Exhaust gas | Non-methane hydrocarbon | Continuous discharge during production | 5 | Four for No. 1 workshop and one for the south side outside No. 1 workshop | 1.6mg/m? | 120mg/m? | 0.2647 t | -- | No excessive discharge | |
| Transmission Branch (Axle Factory) of FAW Jiefang Automotive Co., Ltd. | Wastewater | COD | Intermittent discharge | 6 | Two for No. 1, No. 2 and No. 3 workshops respectively | 21mg/L | 500mg/L | 0.6582 t | -- | No excessive discharge |
| Exhaust gas | Non-methane hydrocarbon | Continuous discharge during production | 16 | 8 in No. 1 workshop, 7 in No. 2 workshop, and 1 in No. 3 workshop | 1.61mg/m? | 120mg/m? | 6.2124 t | -- | No excessive discharge | |
| Changchun Intelligent Bus Branch of FAW Jiefang Automotive Co., Ltd. | Wastewater | COD | Intermittent discharge | 1 | South gate of sewage treatment station | 50mg/L | 500mg/L | 0.5847 t | 4.575 t | No excessive discharge |
| Exhaust gas | Non-methane hydrocarbon | Continuous discharge during production | 12 | Roof of coating and welding workshop of the Company | 3.25mg/m? | 120mg/m? | 4.7693 t | 49.5 t | No excessive discharge | |
| FAW Jiefang (Qingdao) Automotive Co., Ltd. | Wastewater | COD, ammonia nitrogen | Continuous or intermittent discharge | 6 | Outside the sewage treatment station of the Company | COD: 53.9mg/L Ammonia nitrogen: 1.71mg/L | COD: 500mg/L; ammonia nitrogen: 45mg/L | COD: 6.79 t Ammonia nitrogen: 0.207 t | COD: 88.79 t; Ammonia nitrogen: 5.11 t | No excessive discharge |
| Exhaust gas | Non-methane hydrocarb | Continuous discharge during | 87 | Roof of each workshop of the Company | 1.50mg/m? | 30mg/m? | 28.15 t | 164.98 t | No excessive discharge |
| on | production | |||||||||
| Engine Branch of FAW Jiefang Automotive Co., Ltd. | Exhaust gas | Non-methane hydrocarbon | Intermittent discharge | 3 | Workshop roof | 0.67mg/m? | 120mg/m? | 0.019 t | -- | No excessive discharge |
| Wuxi Diesel Engine Works of FAW Jiefang Automotive Co., Ltd. | Wastewater | COD | Continuous discharge | 3 | One for west gate and two for south gate | 23mg/L | 500mg/L | 8.13 t | 243 t | No excessive discharge |
| Exhaust gas | Nitrogen oxide, non-methane hydrocarbon | Continuous discharge during production | 13 | Three for assembly workshop, five for the R&D Department, two for QA Department, two for processing workshop and one for hazardous waste warehouse | NOx, 76mg/m? Non-methane hydrocarbons, 2.46mg/m? | NOx, 200mg/m? Non-methane hydrocarbons, 60mg/m? | NOx, 14.5 tons VOCs 0.08 t | NOx, 27.2 tons VOCs 1.77 t | No excessive discharge | |
| Wuxi Diesel Engine Huishan Factory of FAW Jiefang Automotive Co., Ltd. | Wastewater | COD | Continuous discharge | 1 | 1 for the North Gate | 46mg/m? | 500mg/m? | 2.99 t | 79.15 t | No excessive discharge |
| Exhaust gas | Nitrogen oxide, non-methane hydrocarbon | Continuous discharge during production | 6 | Joint workshop | NOx, 39mg/m? Non-methane hydrocarbons, 1.07mg/m? | NOx, 200mg/m? Non-methane hydrocarbons, 60mg/m? | NOx, 14.52 tons VOCs 0.12 t | NOx, 26.137 tons VOCs 4.546 t | No excessive discharge | |
| FAW Jiefang Dalian Diesel Engine Co., | Wastewater | COD, ammonia nitrogen | Continuous or intermittent discharge | 1 | Outside the sewage treatment station of the Company | COD: 65mg/L Ammonia nitrogen: 11.65mg/L | COD: 300mg/L Ammonia nitrogen: 30mg/L | COD: 2.67 t Ammonia nitrogen: 0.504 t | COD: 11.398 t Ammonia nitrogen: 2.984 t | No excessive discharge |
| Ltd. | Exhaust gas | Nitrogen oxide, non-methane hydrocarbon | Continuous discharge during production | 5 | Roof of the Company’s workshop | NOx, 170mg/m? Volatile organic compounds 0.35mg/m? | NOx, 240mg/m? Volatile organic compounds 60mg/m? | Nitrogen oxides: 1.376 t Volatile organic compounds 1.516 t | Nitrogen oxides: 15.143 t Volatile organic compounds 7.547 t | No excessive discharge |
Disposal of pollutants(I) Wastewater treatment:
(1) The Truck Factory of FAW Jiefang Automotive Co., Ltd. has three sewage treatment stationscurrently, namely, frame workshop sewage treatment station, coating workshop sewage treatmentstation and non-metallic coating sewage treatment station. ① The frame sewage treatment stationhas a processing capacity of 300 tons/day, and it mainly processes the pre-treatment wastewater ofthe frame workshop. ② The cab coating workshop sewage treatment station has a treatment capacityof 400 tons/day, and mainly treats the wastewater and painting wastewater before they enter theworkshop. ③ The non-metallic wire sewage treatment station has a processing capacity of 240tons/day and it mainly processes the pre-treatment and painting wastewater of the production line.The wastewater pre treated by the three sewage stations mentioned above, together with domesticsewage and other wastewater, is discharged into the FAW Integrated Sewage Treatment Plant. Aftermeeting the treatment standards, it enters the West Suburb Sewage Treatment Plant in ChangchunCity.
(2) One sewage treatment station has been built in Chengdu Branch of FAW Jiefang AutomotiveCo., Ltd. for the treatment of production and domestic wastewater of the Company, with a totaltreatment capacity of 300 tons/day. The main treatment method is SBR process. All sewage stationscan operate continuously and stably, and the sewage discharged up to standard enters the urbansewage treatment plant through the municipal pipe network for further treatment.
(3) The Sichuan Branch of FAW Jiefang Automotive Co., Ltd. has a wastewater treatmentstation that is used to treat the Company’s production and domestic wastewater, has a total treatmentcapacity of 50 tons/hour, and adopts the physicochemical and biochemical treatment process. Thesewage station can operate continuously and stably. The industrial wastewater discharged aftermeeting the standard enters the urban sewage treatment plant through the municipal pipeline networkfor further treatment.
(4) Transmission Branch (Transmission Factory) of FAW Jiefang Automotive Co., Ltd., usesthe sewage treatment station in the Shaft Gear Park to treat the production wastewater of the Company.The total treatment capacity of the sewage treatment station is 50 tons/hour, and it operates stably.Industrial wastewater is treated by the sewage station and discharged into the West Suburb SewageTreatment Plant in Changchun City for further treatment.
(5) There is a sewage storage tank in each of the three workshops in the Transmission Branch(Axle Factory) of FAW Jiefang Automotive Co., Ltd., and the industrial wastewater of the No. 3Workshop is transferred to the sewage treatment station in Shaft Gear Park for treatment. The othertwo workshops signed a disposal contract with FAW to transfer the sewage by FAW tanks to thecomprehensive treatment workshop for complaint disposal every day.
(6) One sewage treatment station is built in Changchun Intelligent Bus Branch of FAW JiefangAutomotive Co., Ltd. for the treatment of production and domestic wastewater of the Company, witha treatment capacity of 300 tons/day. The physicochemical + biochemical treatment process isadopted, which can operate continuously and stably and discharge up to standard in real time. Thesewage discharged up to standard enters the urban sewage treatment plant through the municipal pipenetwork for further treatment.
(7) Two sewage treatment stations are built in FAW Jiefang Qingdao Automotive Co., Ltd. Theycombine physicochemical process with biochemical process and are mainly used to treat thephosphating wastewater, electrophoresis wastewater and degreasing wastewater discharged fromdaily production of the coating workshop, as well as the daily domestic sewage of the Company. Thedesigned maximum daily treatment capacity of the station is 2,160 tons/day. The treated wastewatermeets the index requirements of the Wastewater Quality Standards for Discharge to Municipal Sewers(GB/T31962-2015), and reaches the Reuse of Urban Recycling Water—Water Quality Standard forUrban Miscellaneous Use (GB/T18920-2020) after being further treated by the MBR improvementequipment, thus reducing the sewage concentration significantly, increasing the reuse amount ofrecycled water, and saving water. The up-to-standard treated wastewater is discharged to Jimo NorthSewage Treatment Plant for advanced treatment through the sewage outlet.
(8) The industrial wastewater produced by the Engine Branch of FAW Jiefang Automotive Co.,Ltd. is transferred to the sewage treatment station of the Shaft Gear Park for treatment.
(9) One sewage treatment station is built in Wuxi Diesel Engine Works of FAW JiefangAutomotive Co., Ltd. for the treatment of production and domestic wastewater of the Company, witha total treatment capacity of 3,000 tons/day and 24-hour operation. The main treatment process isphysicochemical + biochemical treatment. The sewage station can operate continuously and stably,and realize real-time up-to-standard discharge. The up-to-standard discharged sewage enters theurban sewage treatment plant through the municipal pipe network for further treatment.
(10) One sewage treatment station is built in the Wuxi Diesel Engine Huishan Factory of FAWJiefang Automotive Co., Ltd. for the treatment of production and domestic wastewater of theCompany, with a total treatment capacity of 1,000 tons/day and 24-hour operation. The maintreatment process is physicochemical + biochemical treatment. The sewage station can operatecontinuously and stably, and realize real-time up-to-standard discharge. The up-to-standarddischarged sewage enters the urban sewage treatment plant through the municipal pipe network forfurther treatment.
(11) One sewage treatment station is built in FAW Jiefang Dalian Diesel Engine Co., Ltd. forthe treatment of production and domestic wastewater, with a total treatment capacity of 816 tons/dayand 24-hour operation. The main treatment processes are distillation pretreatment of productionwastewater and biochemical treatment of comprehensive wastewater. The sewage station can operatecontinuously and stably, and realize real-time up-to-standard discharge. The up-to-standarddischarged sewage enters the urban sewage treatment plant through the municipal pipe network forfurther treatment.
(II) Waste gas treatment:
(1) All waste gas treatment facilities in the Truck Factory of FAW Jiefang Automotive Co., Ltd.can operate continuously and stably. The dust generated by the plasma cutting machine in thestamping workshop is collected and filtered and then discharged through a 15m exhaust pipe. TheCO2 welding machine adopts a single-machine dust removal system, and the waste gas is dischargedlocally in the workshop after being treated by a single-machine dust collector. The waste gasgenerated by the treatment and drying process before entering the frame workshop is dischargedthrough a 15m exhaust pipe after being treated by a direct combustion device. The exhaust gas ofVOCs from cab coating and non-metallic coating is discharged after reaching the standard throughhydrocyclone + zeolite runner adsorption concentration + RTO (regenerative incineration).
(2) All waste gas treatment facilities of the Chengdu Branch of FAW Jiefang Automotive Co.,Ltd. can operate continuously and stably. The painting waste gas of the coated body is dischargedafter reaching the standard through hydrocyclone + dry filtration + zeolite runner adsorption andconcentration + RTO (regenerative incineration). All welding fumes are discharged after reaching thestandard and being treated by centralized and mobile dust removal systems.
(3) All waste gas treatment facilities of the Sichuan Branch of FAW Jiefang Automotive Co.,Ltd. can operate continuously and stably. The painting waste gas of the coated body is dischargedafter reaching the standard through dry paper box + zeolite runner adsorption and concentration +RTO (regenerative incineration). All welding fumes are discharged after reaching the standard andbeing treated by centralized and mobile dust removal systems.
(4) All waste gas treatment facilities of the Transmission Branch (Transformation Factory) ofFAW Jiefang Automotive Co., Ltd. can operate continuously and stably. The painting waste gasgenerated from the coating line is discharged after reaching the standard and being treated byactivated carbon adsorption and desorption catalytic combustion devices. All welding fumes aredischarged after reaching the standard and being treated by centralized and mobile dust removalsystems.
(5) All waste gas treatment facilities of the Transmission Branch (Axle Factory) of FAW JiefangAutomotive Co., Ltd. can operate continuously and stably, and all welding fumes are discharged afterreaching the standard and being treated by centralized and mobile dust removal systems. The wastegas from the painting line is treated by zeolite runner +RCO device and discharged after meeting thestandard.
(6) All kinds of exhaust gas treatment facilities of the Transmission Branch (Axle Factory) ofFAW Jiefang Automotive Co., Ltd. can operate continuously and stably, and various types of weldingfumes are treated by centralized and mobile dust removal systems before meeting emission standards.The waste gas from the painting process is treated by the pretreatment filtration system + zeoliteconcentration runner + RTO incineration treatment system and then discharged after reaching thestandard.
(7) All waste gas treatment facilities of FAW Jiefang (Qingdao) Automotive Co., Ltd. canoperate continuously and stably. The painting waste gas generated by Painting Workshops 1 and 2,Non-metallic Painting Workshop and Assembly Workshops 1 and 2 is discharged after reaching thestandard and being purified by paint mist, adsorbed by zeolite concentration runner and treated by anRTO incineration device in the three workshops. The drying waste gas generated by the generalassembly workshop is burned with low nitrogen, and discharged after reaching the standard and beingtreated by the quaternary combustion device. The drying waste gas generated by the coating workshopis burned with low nitrogen and discharged after reaching the standard and receiving TNV thermal
incineration. All welding fumes are discharged after reaching the standard and being treated by afilter cartridge dust collector.
(8) The Engine Branch of FAW Jiefang Automotive Co., Ltd. has three quenching machinesgenerating waste gas and equipped with adsorption purification devices. After treatment, the wastegas is discharged up to standard.
(9) All waste gas treatment facilities of Wuxi Diesel Engine Works of FAW Jiefang AutomotiveCo., Ltd. can operate continuously and stably. The painting waste gas generated from coating isdischarged after reaching the standard and receiving activated carbon adsorption and desorption +catalysis, and the waste gas generated from test run is discharged after reaching the standard andbeing treated by SCR treatment device.
(10) All waste gas treatment facilities of Wuxi Diesel Engine Huishan Factory of FAW JiefangAutomotive Co., Ltd. can operate continuously and stably. The painting waste gas generated fromcoating is discharged after reaching the standard and receiving activated carbon adsorption anddesorption + catalysis, and the waste gas generated from test run is discharged after reaching thestandard and being treated by SCR treatment device.
(11) All waste gas treatment facilities of FAW Jiefang Dalian Diesel Engine Co., Ltd. canoperate continuously and stably. The painting waste gas generated from coating is discharged afterreaching the standard and being treated by water curtain paint mist treatment device + activatedcarbon adsorption, and the waste gas generated from test run is discharged after being treated by SCRpost-treatment + alkali liquor washing exhaust gas treatment device and reaching the standard.
(III) Noise control:
All noise reduction and vibration reduction measures of branches and subsidiaries of theCompany can meet the requirements of national laws and regulations, and the noise within the plantboundary meets the requirements of national emission standards.
(IV) Hazardous waste disposal:
All branches and subsidiaries of the Company deliver 100% of hazardous wastes toorganizations with hazardous waste transportation and disposal qualification for compliant transferand disposal in strict accordance with the requirements of national laws, regulations and standards.Emergency plan for environmental emergencies
We organized relevant departments to revise and improve the comprehensive plan, specialemergency plan and on-site disposal plan of the Emergency Response Plan for EnvironmentalEmergencies, conducted a detailed risk assessment on each risk point, clearly defined the workresponsibilities of each department, refined the emergency disposal procedures for unexpectedenvironmental events, supplemented and provided all kinds of emergency response materials, andtrained relevant personnel on the contents of the plan as required.We organized relevant departments to formulate the emergency response drill plan and carried outthe drills on the emergency plan, special emergency plan and on-site disposal plan for key areassuch as sewage treatment stations, hazardous waste stations and waste gas treatment facilities onschedule. The drills improved the awareness of relevant personnel for the emergency procedures,and their emergency response ability and coordination ability for emergencies, providing the actualpractice to the environmental emergency team and effectively improving the emergency responseability.Investment in environmental governance and protection and payment of environmentalprotection taxesIn the first half of 2024, the Company invested over CNY 14 million in various environmentalgovernance and protection expenses, as well as paid environmental protection taxes.Environmental self-monitoring planAll branches and subsidiaries of the Company have prepared self-monitoring plans based on therequirements of pollutant discharge permits and regulations, and organized qualified monitoringorganizations to conduct environmental monitoring of wastewater, exhaust gas, noise, etc.according to the plan requirements. The test report for the first half of 2024 shows that allmonitoring indicators meet the requirements of all national emission regulations and standards.Administrative penalties due to environmental problems in the Reporting Period
| Name of Company or Subsidiary | Cause for Penalties | Violations | Results of Penalties | Impact on Production and Operation of the Listed Company | Rectification Measures of the Company |
| None | None | None | None | None | None |
Other environmental information that shall be disclosedAll subsidiary companies of the Company have disclosed environmental information inaccordance with the requirements, and have strictly conducted clean production audits inaccordance with the requirements. As a responsible central enterprise, the Company strictly abidesby the national requirements, has been practicing the concept of scientific development, builds aclean and green enterprise, and is committed to becoming an ecological civilization benchmarkingenvironment-friendly enterprise of “energy conservation, consumption reduction, emissionreduction and efficiency improvement”.Measures taken to reduce carbon emissions in the reporting period and their effects?Applicable □Not applicableThe Company is deeply committed to the battle of energy conservation and carbon reduction,actively connecting with the government’s preferential energy policies. In the first half of 2024, thegreen electricity trading share exceeded 23 million kWh, and the PV clean energy projectsimplemented by Liuzhou Branch, FAW Jiefang (Qingdao) Automotive Co., Ltd. and other branchesand subsidiaries were connected to the grid to generate electricity, further reducing carbon emissions.In the first half of 2024, more than 200 energy-saving and cost-reducing projects were approvedand implemented, with total annual savings of more than CNY 56 million and 46 thousand t CO2.Other information related to environmental protection
In the first half of 2024, the Company revised 8 environmental protection managementdocuments, and refined the identification and evaluation standards for environmental factors, in orderto improve the evaluation process. In addition, the Company also strictly standardized the“simultaneous design, construction and operation” management of construction projects, in order toclarify the management standards and spot inspection operation requirements for environmentalprotection facilities, and increase the identification of laws and regulations.In order to enhance the environmental responsibility awareness and work ability of managersand operators at all levels, the Company and its subsidiaries have developed an environmentalprotection training plan and refreshed 9 professional environmental protection training courses, which
can provide targeted training on important environmental regulations and lay a good foundation forthe development of various work.In the first half of 2024, the Company organized a series of activities of “EnvironmentalProtection Publicity Month”, and carefully prepared the Plan of Environmental Protection PublicityMonth Activities for 2024. During the activity month, the Company carried out the activities, suchas the production of promotional posters in the electronic “Environment Day” themed, participationin the group company’s environmental protection forum to share excellent practice cases, andinitiation of the selection of environmental protection excellent cases. Becaused of the extensiveparticipation of employees from various organizations, the Company has achieved good publicityresults.II. Social ResponsibilityIn the first half of 2024, FAW Jiefang deepened its social responsibility practice to helpcomprehensively promote rural revitalization. It is necessary to continue to implement the pairingand co-construction work of Party building, in order to provide paired assistance to FengshanCounty in Guangxi and Zhenlai County in Jilin, and highlight the construction of beautifulcountryside and industrial assistance. In addition, it is also necessary to continue to assist in therevitalization and development of the assisted regions. By deepening and expanding consumptionassistance, continuing to carry out activities such as social responsibility week and centralenterprise consumption assistance, it is necessary to broaden the sales channels for agricultural andsideline products in poverty-stricken areas, and mobilize employees and all sectors of society toparticipate in consumption assistance actions, in order to jointly contribute to rural revitalization.
Section VI Important MattersI. Commitments Made by the Company’s Actual Controllers, Shareholders, Related Parties,Purchasers and the Company to Interested Parties that will be Fulfilled in the ReportingPeriod, and Commitments not Fulfilled by the End of the Reporting Period
□Applicable ?Not applicable
During the reporting period, there were no commitments made by the actual controllers,shareholders, related parties, and purchasers of the Company that were fully fulfilled during thereporting period or were not fully fulfilled by the end of the reporting period.II. Non-operating Occupation of Funds by Controlling Shareholders and Other RelatedParties to the Listed Company
□Applicable ?Not applicable
During the reporting period, there was no non-operating occupation of funds by controllingshareholders and other related parties.III. Illegal External Guarantee
□Applicable ?Not applicable
The Company has no illegal external guarantee in the reporting period.IV. Appointment and Dismissal of Accounting FirmHas the semi-annual financial report been audited?
□Yes ?No
The semi-annual report of the Company is not audited.V. Description of the Board of Directors and the Board of Supervisors on the “Non-standardAudit Report” of the Accounting Firm in the Reporting Period
□Applicable ?Not applicable
VI. Description of the Board of Directors on the “Non-standard Audit Report” of the LastYear
□Applicable ?Not applicable
VII. Matters Related to Bankruptcy Reorganization
□Applicable ?Not applicable
The Company has no matter related to bankruptcy reorganization in the reporting period.VIII. Litigation MattersMajor litigation and arbitration matters
□Applicable ?Not applicable
The Company has no major litigation or arbitration matter in the reporting period.Other litigation matters?Applicable □Not applicable
| Basic Information about Litigation (Arbitration) | Amount Involved (CNY 10 thousand) | Estimated liabilities formed or not | Progress of Litigation (Arbitration) | Litigation (Arbitration) Results and Impact | Implementation of Litigation (Arbitration) Judgment | Date of Disclosure | Disclosure Index |
| Summary of other litigation not reaching the major disclosure standard | 9,320.29 | Including estimated liabilities of CNY 8.59 million | Case not closed | No significant impact | Case not closed by the end of the reporting period | ||
| 2,654.18 | No | Case closed | No significant impact | Judgmented or fully executed |
IX. Punishment and Rectification
□Applicable ?Not applicable
The company has no punishment or rectification in the reporting period.X. Integrity of the Company and Its Controlling Shareholders and Actual Controllers
□Applicable ?Not applicable
XI. Major Related Transactions
1. Related transactions related to daily operations
?Applicable □Not applicable
| Related Transaction Party | Correlation | Type of Related Transaction | Content of Related Transaction | Pricing Principle of Related Transaction | Price of Related Transaction | Amount of Related Transaction (CNY 10 thousand) | Proportion to the Amount of Similar Transactions | Approved Transaction Amount (CNY 10 thousand) | Whether it Exceeds the Approved Amount | Settlement Method of Related Transaction | Available Market Value of Similar Transactions | Date of Disclosure | Disclosure Index |
| China FAW Group Import & Export Co., Ltd. | The same ultimate controlling party | Sales of goods | Sales of goods | Market price | Market price | 849,352.12 | 23.86% | 1,475,014 | No | Cash + bill settlement | CNY 8.4935212 billion | January 31, 2024 | http://www.cninfo.com.cn/new/disclosure/stock?stockCode=000800&orgId=gssz0000800&sjstsBond=false#latestAnnouncement |
| Total | -- | -- | 849,352.12 | -- | 1,475,014 | -- | -- | -- | -- | -- | |||
| Details of large sales returns | None | ||||||||||||
| Actual performance in the reporting period, if the total amount of daily related transactions to be incurred in the current period is estimated by category | For details about the actual performance of related transactions in the reporting period, please see Item XIV “Related Parties and Related Transactions” in Section X of this report. | ||||||||||||
| Reasons for large difference between | N/A | ||||||||||||
2. Related transactions arising from the acquisition and sale of assets or equity
□Applicable ?Not applicable
The Company has no related transaction arising from the acquisition and sale of assets or equity inthe reporting period.
3. Related transactions of joint foreign investment
□Applicable ?Not applicable
The Company has no related transaction of joint foreign investment in the reporting period.
4. Related credit and debt transactions
?Applicable □Not applicableWhether there are non-operating related credit and debt transactions
□Yes ?No
The Company has no non-operating related credit and debt transactions in the reporting period.
5. Transaction with related finance companies
?Applicable □Not applicableDeposit Business
| Related Parties | Correlation | Maximum Daily Deposit Limit (CNY 10 thousand) | Deposit Interest Rate Range | Opening Balance (CNY 10 thousand) | Amount Incurred in Current Period | Ending Balance (CNY 10 thousand) | |
| Total Deposit Amount in the Current Period (CNY 10 thousand) | Total Withdrawal Amount in the Current Period (CNY 10 thousand) | ||||||
| First Automobile Finance Co., Ltd. | Associated enterprise of the Company, the same ultimate controlling party | 3,000,000 | 0.455%--1.8% | 1,404,657.52 | 18,260,986.65 | 18,797,837.24 | 867,806.93 |
Credit Granting or Other Financial Businesses
| Related Parties | Correlation | Business Type | Total Amount (CNY 10 thousand) | Actual Amount Incurred (CNY 10 thousand) |
| First Automobile Finance Co., Ltd. | Associated enterprise of the Company, the same ultimate controlling party | Other financial businesses | 920,000 | 91,495.66 |
6. Transactions between finance companies controlled by the Company and related parties
□Applicable ?Not applicable
There is no deposit, loan, credit granting or other financial businesses between the financecompanies controlled by the Company and related parties.
7. Other major related transactions
?Applicable □Not applicableOn January 30, 2024, the 10
st Meeting of the 10
thBoard of Directors of the Company reviewedand approved the Proposal on Estimated Amount of Daily Related Transactions in 2024 and theProposal on Estimated Amount of Financial Business with First Automobile Finance Co., Ltd. in2024, which were reviewed and approved by the First Extraordinary Shareholders’ Meeting of theCompany in 2024.Relevant Inquiries on Disclosure Website of Interim Report of Major Related Transactions
| Name of Temporary Announcement | Disclosure Date of Temporary Announcement | Name of Temporary Announcement Disclosure Website |
| Announcement on estimated amount of daily related transactions in 2024 | January 31, 2024 | CNINFO (http://www.cninfo.com.cn) |
| Announcement on estimated amount of financial business with First Automobile Finance Co., Ltd. in 2024 | January 31, 2024 | CNINFO (http://www.cninfo.com.cn) |
XII. Major Contracts and Their Performance
1. Trusteeship, contracting and lease
(1) Trusteeship
□Applicable ?Not applicable
There is no trusteeship made by the Company in the reporting period.
(2) Contracting
□Applicable ?Not applicable
There is no contracting made by the Company in the reporting period.
(3) Lease
?Applicable □Not applicableDescription of leaseFor details of the Company’s operating lease, please refer to Note 14 “Investment real estate”, Note15 “Fixed assets”, and Note 19 “Right-of-use assets” in Notes to Items in VII “ConsolidatedFinancial Statements” of Section X “Financial Report”, and Note 5 “Information of relatedtransactions” in XIV “Related parties and related transactions”.Projects that bring about profits and losses exceeding 10% of the total profit of the Company in thereporting period
□Applicable ?Not applicable
The Company has no leasing project that brings about profits and losses exceeding 10% of the totalprofit of the Company in the reporting period.
2. Major guarantees
□Applicable ?Not applicable
The Company has no major guarantee in the reporting period.
3. Entrusted financial management
□Applicable ?Not applicable
The Company has no entrusted financial management in the reporting period.
4. Other major contracts
□Applicable ?Not applicable
The Company has no other major contracts in the reporting period.XIII. Other Major Matters to be Explained?Applicable □Not applicableThe 4
th
Meeting of the 10
th Board of Directors and the 3
rd
Meeting of the 10
thBoard ofSupervisors held by the Company on June 19, 2023 reviewed and approved the Proposal on theCompany’s Eligibility to Issue A Shares to Specific Objects, the Proposal on the Company’s Plan toIssue A Shares to Specific Objects in 2023 and other proposals, which were reviewed and approvedby the Second Extraordinary Shareholders’ Meeting of 2023 of the Company held on July 18, 2023.On July 18, 2023, the Company disclosed the Announcement on Matters Related to the Issuance ofA Shares to Specific Objects in 2023 Approved by China FAW Group; on August 3, 2023, theCompany disclosed the Announcement on the Application for Issuance of A Shares to SpecificObjects in 2023 Accepted by the Shenzhen Stock Exchange. On October 13, 2023, the Companydisclosed the Announcement on Issuance of A Shares to Specific Objects in 2023 Approved byListing Audit Center of Shenzhen Stock Exchange. On June 25, 2024, the Company disclosed theAnnouncement on Obtaining Registration Approval from the China Securities RegulatoryCommission for Applying to Issue Stocks to Specific Objects and the A-share Issuance Prospectus toSpecific Objects in 2023 (Registration Draft)For details of the above matters, please refer to the Company’s relevant announcements publishedin Securities Times, China Securities Journal and CNINFO (http://www.cninfo.com.cn).XIV. Major Events of Subsidiaries
□Applicable ?Not applicable
Section VII Changes in Shares and ShareholdersI. Changes in Shares
1. Changes in shares
Unit: share
| Before the Change | Increase/Decrease Made by the Change (+, -) | After the Change | |||||||
| Quantity | Percentage | Issue of New Shares | Bonus shares | Share Transferred from Accumulation Fund | Others | Subtotal | Quantity | Percentage | |
| I. Restricted shares | 14,433,543 | 0.31% | -12,959,128 | -12,959,128 | 1,474,415 | 0.03% | |||
| 1. Shares held by the state | |||||||||
| 2. Shares held by the state-owned legal person | |||||||||
| 3. Shares held by other domestic enterprises | 14,433,543 | 0.31% | -12,959,128 | -12,959,128 | 1,474,415 | 0.03% | |||
| Including: shares held by domestic legal person | |||||||||
| Shares held by domestic natural person | 14,433,543 | 0.31% | -12,959,128 | -12,959,128 | 1,474,415 | 0.03% | |||
| 4. Shares held by foreign enterprises | |||||||||
| Including: shares held | |||||||||
| by overseas legal person | |||||||||
| Shares held by overseas natural person | |||||||||
| II. Unrestricted shares | 4,622,564,932 | 99.69% | -175,633 | -175,633 | 4,622,389,299 | 99.97% | |||
| 1. CNY ordinary shares | 4,622,564,932 | 99.69% | -175,633 | -175,633 | 4,622,389,299 | 99.97% | |||
| 2. Foreign shares listed in China | |||||||||
| 3. Foreign shares listed overseas | |||||||||
| 4. Others | |||||||||
| III. Total number of shares | 4,636,998,475 | 100.00% | -13,134,761 | -13,134,761 | 4,623,863,714 | 100.00% |
Reasons for changes in shares?Applicable □Not applicable
During the reporting period, due to the failure to achieve the performance evaluation targets setfor the third release of restricted stock incentive plan granted for the first time and the second releaseof restricted stock incentive plan reserved for grant, as well as the repurchase and cancellation ofincentive recipients due to organizational arrangements, statutory retirement, and personal reasons,the final total was 13,134,761 shares. After the aforesaid repurchase and cancellation, the total sharecapital of the Company was changed to 4,623,863,714 shares.Approval of share changes?Applicable □Not applicable
(1) On November 20, 2023, the 7
th
Meeting of the 10
th Board of Directors and the 6
thMeeting of the10th Board of Supervisors of the Company approved the Proposal on Repurchasing and CancelingSome Restricted Stocks in the First Phase of the Restricted Stock Incentive Plan, with a total of512,807 restricted stocks repurchased and cancelled. On December 6, 2023, the Proposal wasdeliberated and approved at the Company’s first Extraordinary Shareholders’ Meeting in 2023.
(2) On March 28, 2024, the 11
th
Meeting of the 10
th Board of Directors and the 10
thMeeting of the
thBoard of Supervisors of the Company deliberated and approved the Proposal on UnsuccessfulLifting of Conditions of the Second Release Period First Granted by the Phase I Restricted ShareIncentive Plan for Releasing the Restricted Sales and of Conditions of the First Release PeriodReserved by the Phase I Restricted Share Incentive Plan for Releasing the Restricted Sales andRepurchase and Cancellation of Some Restricted Shares, with a total number of 12,621,954 restrictedshares repurchased and canceled. On April 25, 2024, the proposal was reviewed and approved at theCompany’s 2023 Annual Shareholders’ Meeting.Transfer of share changes?Applicable □Not applicable
(1) On March 15, 2024, the Company submitted relevant registration materials to CDSC for 512,807shares involved in equity incentive repurchase and cancellation. On March 27, 2024, CSDC issuedthe Confirmation of Securities Transfer Registration to the Company, and the total share capital ofthe Company was reduced to 4,636,485,668 shares.
(2) On June 11, 2024, the Company submitted relevant registration materials to CDSC for 12,621,954shares involved in equity incentive repurchase and cancellation. On June 13, 2024, CSDC issued theConfirmation of Securities Transfer Registration to the Company, and the total share capital of theCompany was reduced to 4,623,863,714 shares.Implementation progress of share repurchase
□Applicable ?Not applicable
Implementation progress of reducing repurchased shares by centralized bidding
□Applicable ?Not applicable
Impact of changes in shares on financial indicators such as basic earnings per share and dilutedearnings per share in the latest year and the latest period, and net assets per share attributable toshareholders with ordinary shares of the Company?Applicable □Not applicableIn the reporting period, the share capital of the Company decreased by 13,134,761 shares,which had little impact on the Company’s financial indicators such as basic earnings per share,diluted earnings per share, and net assets per share attributable to shareholders with ordinary sharesof the Company.Other information disclosed as deemed necessary by the Company or required by the securitiesregulatory authority
□Applicable ?Not applicable
2. Changes in restricted shares
?Applicable □Not applicable
Unit: share
| Name of Shareholder | Number of Restricted Shares at the Beginning of the Period | Number of Restricted Shares Released in the Current Period | Number of Restricted Shares Increased in the Current Period | Number of Restricted Shares at the End of the Period | Reason for Restriction | Release Date |
| Wu Bilei | 95,992 | 58,853 | 37,139 | Executive lockup | The lockup restrictions can be lifted annually based on 25% of the total number of shares held | |
| Li Sheng | 80,966 | 49,639 | 31,327 | Executive lockup | The lockup restrictions can be lifted annually based on 25% of the |
| total number of shares held | ||||||
| Zhang Guohua | 95,967 | 20,564 | 75,403 | Resignation lockup | After the expiration of the resignation lockup period, the sales restriction can be lifted in accordance with regulations | |
| Ji Yizhi | 80,966 | 49,639 | 31,327 | Executive lockup | The lockup restrictions can be lifted annually based on 25% of the total number of shares held | |
| Wang Jianyu | 65,544 | 34,217 | 31,327 | Executive lockup | The lockup restrictions can be lifted annually based on 25% of the total number of shares held | |
| Tian Haifeng | 80,966 | 17,349 | 63,617 | Resignation lockup | After the expiration of the resignation lockup period, the sales restriction can be lifted in accordance with regulations | |
| Wang Jianxun | 80,966 | 49,639 | 31,327 | Executive lockup | The lockup restrictions can be lifted annually based on 25% of the total number of shares held | |
| Other core | 13,852,176 | 12,679,228 | 1,172,948 | Equity incentive, | The restrictions on sales are |
| employees of senior director and above | etc. | lifted in phases based on the assessment objectives and the restricted share incentive plan. | ||||
| Total | 14,433,543 | 12,959,128 | 0 | 1,474,415 | -- | -- |
II. Issuance and Listing of Securities
□Applicable ?Not applicable
III. Number of Shareholders and Shareholdings of the Company
Unit: share
| Total Number of Shareholders with Ordinary Shares at the End of the Reporting Period | 75,824 | Total Number of Shareholders with Preferred Share with Restored Voting Rights at the End of the Reporting Period | 0 | |||||||
| Shareholdings situation of ordinary shareholders holding more than 5% or top 10 ordinary shareholders (excluding shares lent through securities refinancing). | ||||||||||
| Name of Shareholder | Nature of Shareholders | Share proportion | Number of Ordinary Shares Held at the End of the Reporting Period | Increase and Decrease in the Reporting Period | Number of Restricted Ordinary Shares Held | Number of Unrestricted Ordinary Shares Held | Pledge, Marking or Freezing | |||
| Status of Shares | Quantity | |||||||||
| China FAW Group Corporation Limited | State-owned legal person | 66.19% | 3,060,649,901 | 0 | 0 | 3,060,649,901 | N/A | 0 | ||
| FAW Besturn Automotive Co., Ltd. | State-owned legal person | 16.97% | 784,500,000 | 0 | 0 | 784,500,000 | N/A | 0 | ||
| Hong Kong Securities Clearing Company Ltd. | Overseas legal person | 1.31% | 60,631,925 | -2,183,034 | 0 | 60,631,925 | N/A | 0 | ||
| Lu Min | Domestic natural person | 0.78% | 36,096,590 | 0 | 0 | 36,096,590 | N/A | 0 |
| Industrial and Commercial Bank of China Limited-Huatai-PineBridge CSI 300 Trading Open Index Securities Investment Fund | Others | 0.24% | 11,117,800 | 4,677,800 | 0 | 11,117,800 | N/A | 0 |
| Duanmu Xiaoyi | Domestic natural person | 0.23% | 10,538,600 | 6,055,700 | 0 | 10,538,600 | N/A | 0 |
| Chao Guo | Domestic natural person | 0.18% | 8,293,558 | -372,000 | 0 | 8,293,558 | N/A | 0 |
| Li Yan | Domestic natural person | 0.17% | 7,660,000 | 0 | 0 | 7,660,000 | N/A | 0 |
| China Construction Bank Corporation - E Fund CSI 300 Trading Open Index Securities Investment Fund | Others | 0.16% | 7,240,000 | 4,944,700 | 0 | 7,240,000 | N/A | 0 |
| Zhong Ou AMC - Agricultural Bank of China - Zhong Ou & CITIC Securities Financial Asset Management Plan | Others | 0.12% | 5,549,500 | 0 | 0 | 5,549,500 | N/A | 0 |
| Bosera Asset Management Co., Ltd. - Agricultural Bank of China - Bosera & CITIC Securities Financial Asset Management Plan | Others | 0.12% | 5,549,500 | 0 | 0 | 5,549,500 | N/A | 0 |
| Strategic investors or general legal persons who become the top 10 shareholders with ordinary shares due to the issuance of new shares | None | |||||||
| Description of correlation or concerted action of the above shareholders | Among the above shareholders, FAW Bestune is a holding subsidiary of FAW, and is a person acting in concert as specified in the Regulations for the Takeover of Listed Companies. The public disclosure data indicates that the Company does not know whether there is a correlation between other shareholders of outstanding shares, nor whether other shareholders of outstanding shares are persons acting in concert as specified in the Regulations for the Takeover of Listed Companies. | |||||||
| Description of involvement of the above shareholders in entrusting/entrusted voting rights and | None | |||||||
| waiving voting rights | ||||
| Special description of the existence of repurchase special accounts among the top 10 shareholders | None | |||
| Shareholding situation of the top 10 ordinary shareholders with unlimited sales conditions (excluding shares lent through refinancing and executive lockup shares) | ||||
| Name of Shareholder | Number of Unrestricted Ordinary Shares Held at the End of the Reporting Period | Type of Shares | ||
| Type of Shares | Quantity | |||
| China FAW Group Corporation Limited | 3,060,649,901 | CNY ordinary shares | 3,060,649,901 | |
| FAW Besturn Automotive Co., Ltd. | 784,500,000 | CNY ordinary shares | 784,500,000 | |
| Hong Kong Securities Clearing Company Ltd. | 60,631,925 | CNY ordinary shares | 60,631,925 | |
| Lu Min | 36,096,590 | CNY ordinary shares | 36,096,590 | |
| Industrial and Commercial Bank of China Limited-Huatai-PineBridge CSI 300 Trading Open Index Securities Investment Fund | 11,117,800 | CNY ordinary shares | 11,117,800 | |
| Duanmu Xiaoyi | 10,538,600 | CNY ordinary shares | 10,538,600 | |
| Chao Guo | 8,293,558 | CNY ordinary shares | 8,293,558 | |
| Li Yan | 7,660,000 | CNY ordinary shares | 7,660,000 | |
| China Construction Bank Corporation - E Fund CSI 300 Trading Open Index Securities Investment Fund | 7,240,000 | CNY ordinary shares | 7,240,000 | |
| Zhong Ou AMC - Agricultural Bank of China - Zhong Ou & CITIC Securities Financial Asset Management Plan | 5,549,500 | CNY ordinary shares | 5,549,500 | |
| Bosera Asset Management Co., Ltd. - Agricultural Bank of China - Bosera & CITIC | 5,549,500 | CNY ordinary shares | 5,549,500 | |
| Securities Financial Asset Management Plan | ||
| Description of correlation or concerted action between the top 10 shareholders with unrestricted ordinary shares, and between the top 10 shareholders with unrestricted ordinary shares and the top 10 shareholders with ordinary shares | Among the above shareholders, FAW Bestune is a holding subsidiary of FAW, and is a person acting in concert as specified in the Regulations for the Takeover of Listed Companies. The public disclosure data indicates that the Company does not know whether there is a correlation between other shareholders of outstanding shares, nor whether other shareholders of outstanding shares are persons acting in concert as specified in the Regulations for the Takeover of Listed Companies. | |
| Description of participation in financing bonds business of top 10 shareholders with ordinary shares | Lu Min, a domestic natural person, holds 36,096,590 shares of the Company through the guaranteed securities account for customer credit trading of CITIC Securities. Duanmu Xiaoyi, a domestic natural person, holds 10,538,600 shares of the Company through the guaranteed securities account for customer credit trading of CITIC Securities. Chao Guo, a domestic natural person, holds 8,274,400 shares of the Company through the guaranteed securities account for customer credit trading of Minsheng Securities. Li Yan, a domestic natural person, holds 7,660,000 shares of the Company through the guaranteed securities account for customer credit trading of Dongguan Securities. | |
Participation of shareholders holding more than 5% of the shares, top 10 shareholders, and top 10shareholders with unlimited tradable shares in lending shares through the transfer and financingbusiness?Applicable □Not applicable
Unit: share
| Participation of shareholders holding more than 5% of the shares, top 10 shareholders, and top 10 shareholders with unlimited tradable shares in lending shares through the transfer and financing business | ||||||||
| Name of Shareholder (Full Name) | Opening ordinary account and credit account shareholding | Number of shares lent at the begining of the period of refinancing and not yet returned | Ending ordinary account and credit account shareholding | Number of shares lent at the ending of the period of refinancing and not yet returned | ||||
| Total Quantity | Proportion to Total | Total Quantity | Proportion to Total | Total Quantity | Proportion to Total | Total Quantity | Proportion to Total | |
| Share Capital | Share Capital | Share Capital | Share Capital | |||||
| Industrial and Commercial Bank of China Limited-Huatai-PineBridge CSI 300 Trading Open Index Securities Investment Fund | 6,440,000 | 0.14% | 568,300 | 0.01% | 11,117,800 | 0.24% | 0 | 0.00% |
| China Construction Bank Corporation - E Fund CSI 300 Trading Open Index Securities Investment Fund | 2,295,300 | 0.05% | 315,400 | 0.01% | 7,240,000 | 0.16% | 87,600 | 0.00% |
Changes in the top 10 shareholders and the top 10 shareholders of unrestricted tradable shares dueto refinancing, lending, and repayment reasons compared to the previous period
□Applicable ?Not applicable
Do the top 10 shareholders with ordinary shares and the top 10 shareholders with unrestrictedordinary shares of the Company conduct agreed repurchase transactions in the reporting period
□Yes ?No
The top 10 shareholders with ordinary shares and the top 10 shareholders with unrestricted ordinaryshares of the Company do not conduct agreed repurchase transactions in the reporting periodIV. Changes in Shareholding of Directors, Supervisors and Senior Management?Applicable □Not applicable
| Name | Position | Employme | Number of Shares | Number of | Number of Shares | Number of Shares | Number of | Number Of | Number of |
| nt Status | Held at the Beginning of the Period (share) | Shares Increased in the Current Period (share) | Reduced in the Current Period (share) | Held at the End of the Period (share) | Restricted Shares Granted at the Beginning of the Period (shares) | Restricted Shares Granted In The Current Period (shares) | Restricted Shares Granted at the End of the Period (shares) | ||
| Wu Bilei | Chairman of the Board | In-service | 153,130 | 77,708 | 75,422 | 153,130 | -77,708 | 75,422 | |
| Li Sheng | Director and General Manager | In-service | 129,161 | 65,544 | 63,617 | 129,161 | -65,544 | 63,617 | |
| Wang Hao | Director | In-service | |||||||
| Zhang Guohua | Director | Departure from office | 153,090 | 77,687 | 75,403 | 153,090 | -77,687 | 75,403 | |
| Bi Wenquan | Director | Departure from office | |||||||
| Liu Yanchang | Director | In-service | |||||||
| Deng Weigong | Director | In-service | |||||||
| Chen Hua | Director | In-service |
| Han Fangming | Independent director | In-service | |||||||
| Mao Zhihong | Independent director | In-service | |||||||
| Dong Zhonglang | Independent director | In-service | |||||||
| Li Ying | Chairman of Board of Supervisors | In-service | |||||||
| Yan Feng | Chairman of Board of Supervisors | Departure from office | |||||||
| Xu Haigen | Employee Supervisor | In-service | |||||||
| Wang Lijun | Employee Supervisor | In-service | |||||||
| Duan Yinghui | Employee Supervisor | In-service | |||||||
| Ren Ruijie | Employee Supervisor | Departure from office |
| Yu Changxin | Executive Deputy General Manager | In-service | |||||||
| Ji Yizhi | Deputy General Manager | In-service | 129,161 | 65,544 | 63,617 | 129,161 | -65,544 | 63,617 | |
| Wang Jianyu | Deputy General Manager | In-service | 129,161 | 65,544 | 63,617 | 129,161 | -65,544 | 63,617 | |
| Tian Haifeng | Deputy General Manager | Departure from office | 129,161 | 65,544 | 63,617 | 129,161 | -65,544 | 63,617 | |
| Wang Jianxun | Secretary of the Board of Directors | In-service | 129,161 | 65,544 | 63,617 | 129,161 | -65,544 | 63,617 | |
| Total | -- | -- | 952,025 | 0 | 483,115 | 468,910 | 952,025 | -483,115 | 468,910 |
Changes in controlling shareholders or actual controllersChanges in controlling shareholders in the reporting period
□Applicable ?Not applicable
There is no change in the controlling shareholders of the Company in the reporting period.Change of actual controller in the reporting period
□Applicable ?Not applicable
There is no change in the actual controller of the Company in the reporting period.
Section VIII Preferred Shares
□Applicable ?Not applicable
The Company has no preferred shares in the reporting period.
Section IX Bonds
□Applicable ?Not applicable
Section X Financial ReportI. Audit ReportIs the semi-annual report audited
□Yes ?No
The semi-annual financial report of the Company is not audited.II. Financial StatementsThe unit in the notes to the financial statement is CNY
1. Consolidated balance sheet
Prepared by: FAW JIEFANG GROUP CO., LTD.
June 30, 2024
Unit: CNY
| Item | Ending balance | Opening balance |
| Current assets: | ||
| Monetary capital | 25,609,204,954.65 | 22,920,710,903.12 |
| Settlement reserve fund | ||
| Loans to banks and other financial institutions | ||
| Financial assets held for trading | ||
| Derivative financial assets | ||
| Notes receivable | 110,591,432.00 | 44,626,048.13 |
| Accounts receivable | 11,708,633,140.72 | 1,989,386,169.77 |
| Accounts receivable financing | 8,448,273,887.92 | 4,878,126,972.73 |
| Prepayments | 410,909,476.74 | 689,621,097.66 |
| Premiums receivable | ||
| Reinsurance accounts receivable | ||
| Reinsurance contract reserves receivable | ||
| Other receivables | 1,176,699,147.26 | 1,309,376,221.57 |
| Including: interests receivable | ||
| Dividends receivable | ||
| Financial assets purchased under agreements to resell | ||
| Inventories | 7,580,283,903.54 | 9,210,971,356.15 |
| Including: data resources | ||
| Contract assets | 16,476,441.87 | 17,582,856.82 |
| Held-for-sale assets |
| Current portion of non-current assets | 229,571,360.00 | 222,664,624.89 |
| Other current assets | 733,547,168.89 | 1,032,089,815.23 |
| Total current assets | 56,024,190,913.59 | 42,315,156,066.07 |
| Non-current assets: | ||
| Loans and advances | ||
| Debt investment | ||
| Other debt investments | ||
| Long-term receivables | 142,564,776.60 | 132,031,253.27 |
| Long-term equity investments | 5,687,858,933.19 | 5,469,591,970.26 |
| Other equity instruments investments | 480,780,000.00 | 480,780,000.00 |
| Other non-current financial assets | ||
| Investment properties | 46,253,781.34 | 47,049,995.53 |
| Fixed assets | 11,470,284,660.10 | 11,380,286,165.58 |
| Project under construction | 750,571,700.84 | 816,484,299.18 |
| Productive biological assets | ||
| Oil and gas assets | ||
| Right-of-use assets | 117,251,281.65 | 138,989,886.70 |
| Intangible assets | 2,386,449,982.49 | 2,438,433,780.65 |
| Including: data resources | ||
| Development expenditures | 222,837,913.82 | 109,873,830.59 |
| Including: data resources | ||
| Goodwill | ||
| Long-term deferred expenses | ||
| Deferred Income tax assets | 2,702,715,506.94 | 2,544,710,679.48 |
| Other non-current assets | ||
| Total non-current assets | 24,007,568,536.97 | 23,558,231,861.24 |
| Total assets | 80,031,759,450.56 | 65,873,387,927.31 |
| Current liabilities: | ||
| Short-term loans | ||
| Borrowing from the central bank | ||
| Placements from banks and other financial institutions | ||
| Financial liabilities held for trading | ||
| Derivative financial liabilities | ||
| Notes payable | 25,947,712,941.61 | 11,769,864,678.11 |
| Accounts payable | 18,062,160,228.69 | 16,495,571,442.45 |
| Advance receipts | 715,111.97 | 641,221.46 |
| Contract liabilities | 1,055,648,915.82 | 2,204,692,602.77 |
| Financial assets sold under agreement to repurchase |
| Deposits taking and interbank deposits | ||
| Acting trading securities | ||
| Acting underwriting securities | ||
| Employee compensation payable | 560,440,000.75 | 402,039,885.19 |
| Taxes payable | 106,373,325.65 | 129,222,373.32 |
| Other payables | 5,193,920,530.52 | 5,305,057,045.18 |
| Including: interests payable | ||
| Dividends payable | 171,500.02 | 171,500.02 |
| Handling charges and commissions payable | ||
| Reinsurance accounts payable | ||
| Held-for-sale liabilities | ||
| Current portion of non-current liabilities | 14,750,421.22 | 27,171,195.40 |
| Other current liabilities | 60,702,098.17 | 214,456,037.00 |
| Total current liabilities | 51,002,423,574.40 | 36,548,716,480.88 |
| Non-current liabilities: | ||
| Insurance contract reserve | ||
| Long-term loans | ||
| Bonds payable | ||
| Including: preferred shares | ||
| Perpetual Bond | ||
| Lease liabilities | 35,523,520.47 | 30,494,014.13 |
| Long-term payables | ||
| Long-term employee compensation payable | 679,333,932.03 | 672,957,633.25 |
| Estimated liabilities | 709,985,205.49 | 735,710,304.03 |
| Deferred income | 2,960,308,188.38 | 2,983,678,367.53 |
| Deferred income tax liabilities | 376,031,630.59 | 415,071,758.09 |
| Other non-current liabilities | ||
| Total non-current liabilities | 4,761,182,476.96 | 4,837,912,077.03 |
| Total liabilities | 55,763,606,051.36 | 41,386,628,557.91 |
| Owner’s equities: | ||
| Share capital | 4,623,863,714.00 | 4,636,485,668.00 |
| Other equity instruments | ||
| Including: preferred shares | ||
| Perpetual Bond | ||
| Capital reserves | 10,276,761,678.62 | 10,343,418,951.73 |
| Less: treasury shares | 6,246,851.73 | 86,131,497.27 |
| Other comprehensive incomes | -3,197,978.68 | -8,514,110.10 |
| Special reserves | 310,114,694.40 | 319,314,527.85 |
| Surplus reserves | 3,090,408,316.87 | 3,090,408,316.87 |
| General risk provision | ||
| Undistributed profits | 5,976,449,825.72 | 6,191,777,512.32 |
| Total equity attributable to owners of the parent company | 24,268,153,399.20 | 24,486,759,369.40 |
| Minority equity | ||
| Total owners’ equity | 24,268,153,399.20 | 24,486,759,369.40 |
| Total liabilities and owner’s equities | 80,031,759,450.56 | 65,873,387,927.31 |
Legal representative: Wu Bilei Person in charge of accounting: Ji Yizhi Person in charge of the accountingorganization: Si Yuzhuo
2. Balance sheet of parent company
Unit: CNY
| Item | Ending balance | Opening balance |
| Current assets: | ||
| Monetary capital | 5,431,357.03 | 165,157,237.21 |
| Financial assets held for trading | ||
| Derivative financial assets | ||
| Notes receivable | ||
| Accounts receivable | ||
| Accounts receivable financing | ||
| Prepayments | 84,000.00 | 84,000.00 |
| Other receivables | 219,864.00 | 219,864.00 |
| Including: interests receivable | ||
| Dividends receivable | ||
| Inventories | ||
| Including: data resources | ||
| Contract assets | ||
| Held-for-sale assets | ||
| Current portion of non-current assets | ||
| Other current assets | 412,611.48 | 261,636.19 |
| Total current assets | 6,147,832.51 | 165,722,737.40 |
| Non-current assets: | ||
| Debt investment | ||
| Other debt investments | ||
| Long-term receivables | ||
| Long-term equity investments | 25,794,526,170.67 | 25,594,049,970.19 |
| Other equity instruments investments | ||
| Other non-current financial assets | ||
| Investment properties | ||
| Fixed assets |
| Project under construction | ||
| Productive biological assets | ||
| Oil and gas assets | ||
| Right-of-use assets | ||
| Intangible assets | ||
| Including: data resources | ||
| Development expenditures | ||
| Including: data resources | ||
| Goodwill | ||
| Long-term deferred expenses | ||
| Deferred Income tax assets | ||
| Other non-current assets | ||
| Total non-current assets | 25,794,526,170.67 | 25,594,049,970.19 |
| Total assets | 25,800,674,003.18 | 25,759,772,707.59 |
| Current liabilities: | ||
| Short-term loans | ||
| Financial liabilities held for trading | ||
| Derivative financial liabilities | ||
| Notes payable | ||
| Accounts payable | 264,628.26 | 250,327.84 |
| Advance receipts | ||
| Contract liabilities | ||
| Employee compensation payable | ||
| Taxes payable | 4,389,523.56 | 3,368,528.10 |
| Other payables | 268,484,598.22 | 90,343,250.16 |
| Including: interests payable | ||
| Dividends payable | 171,500.02 | 171,500.02 |
| Held-for-sale liabilities | ||
| Current portion of non-current liabilities | ||
| Other current liabilities | ||
| Total current liabilities | 273,138,750.04 | 93,962,106.10 |
| Non-current liabilities: | ||
| Long-term loans | ||
| Bonds payable | ||
| Including: preferred shares | ||
| Perpetual Bond |
| Lease liabilities | ||
| Long-term payables | ||
| Long-term employee compensation payable | ||
| Estimated liabilities | ||
| Deferred income | ||
| Deferred income tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | ||
| Total liabilities | 273,138,750.04 | 93,962,106.10 |
| Owner’s equities: | ||
| Share capital | 4,623,863,714.00 | 4,636,485,668.00 |
| Other equity instruments | ||
| Including: preferred shares | ||
| Perpetual Bond | ||
| Capital reserves | 12,104,430,650.56 | 12,171,693,342.10 |
| Less: treasury shares | 6,246,851.73 | 86,131,497.27 |
| Other comprehensive incomes | 6,446,198.58 | 863,137.93 |
| Special reserves | ||
| Surplus reserves | 1,859,690,555.97 | 1,859,690,555.97 |
| Undistributed profits | 6,939,350,985.76 | 7,083,209,394.76 |
| Total owners’ equity | 25,527,535,253.14 | 25,665,810,601.49 |
| Total liabilities and owner’s equities | 25,800,674,003.18 | 25,759,772,707.59 |
3. Consolidated profit statement
Unit: CNY
| Item | Semi-annual 2024 | Semi-annual 2023 |
| I. Total operating income | 35,602,292,639.46 | 33,014,661,914.13 |
| Including: operating income | 35,602,292,639.46 | 33,014,661,914.13 |
| Interest income | ||
| Premium earned | ||
| Handling charges and commission income | ||
| II. Total operating cost | 35,673,829,224.05 | 33,178,733,500.55 |
| Including: operating cost | 33,252,419,902.01 | 30,590,523,778.02 |
| Interest expense | ||
| Handling charges and commission expense | ||
| Surrender value | ||
| Net payments for insurance claims | ||
| Net allotment of reserves for insurance liabilities | ||
| Policy dividend expenditure |
| Reinsurance expenses | ||
| Taxes and surcharges | 105,369,314.20 | 109,841,569.80 |
| Sales expenses | 835,467,097.82 | 774,822,818.33 |
| Administrative expenses | 739,765,844.96 | 871,161,062.92 |
| R&D expenses | 1,135,583,276.97 | 1,248,047,703.54 |
| Financial expenses | -394,776,211.91 | -415,663,432.06 |
| Including: interest expenses | 1,431,811.40 | 2,201,462.83 |
| Interest income | 330,521,706.02 | 332,873,373.32 |
| Add: Other incomes | 353,779,659.32 | 195,656,370.11 |
| Investment income (loss to be listed with “-”) | 101,886,844.66 | 133,617,879.87 |
| Including: income from investment in associates and joint ventures | 213,988,413.65 | 234,054,148.54 |
| Gains on derecognition of financial assets at amortized cost | ||
| Foreign exchange gains (loss to be listed with “-”) | ||
| Net exposure hedging income (loss to be listed with “-”) | ||
| Profit arising from changes in fair value (loss to be listed with "-") | ||
| Credit impairment loss (loss to be listed with “-”) | -8,593,082.48 | -35,480,726.08 |
| Asset impairment loss (loss to be listed with “-”) | -76,666,599.19 | -35,324,171.95 |
| Income from assets disposal (loss to be listed with “-”) | 746,088.82 | 98,132,494.11 |
| III. Operating profit (loss to be listed with “-”) | 299,616,326.54 | 192,530,259.64 |
| Add: non-operating income | 28,106,223.95 | 9,542,486.79 |
| Less: non-operating expenses | 3,782,541.88 | 3,801,763.81 |
| IV. Total profit (loss to be listed with “-”) | 323,940,008.61 | 198,270,982.62 |
| Less: income tax expenses | -154,311,861.89 | -203,065,319.73 |
| V. Net profit (net loss to be listed with “-”) | 478,251,870.50 | 401,336,302.35 |
| (I) Classified by continuity of operation | ||
| 1. Net profit from continuing operations (net loss to be listed with “-”) | 478,251,870.50 | 401,336,302.35 |
| 2. Net profit from discontinuing operations (net loss to be listed with “-”) | ||
| (II) Classified by attribution of the ownership | ||
| 1. Net profit attributable to shareholders of the parent company (net loss to be listed with “-”) | 478,251,870.50 | 401,336,302.35 |
| 2. Minority profit and loss (net loss to be listed with “-”) | ||
| VI. Net after-tax amount of other comprehensive income | 5,316,131.42 | 250,455.89 |
| Net after-tax amount of other comprehensive income attributable to the owners of the parent company | 5,316,131.42 | 250,455.89 |
| (I) Other comprehensive incomes that cannot be reclassified into profits or losses | 5,679,897.29 | |
| 1. Changes arising from re-measurement of the defined |
| benefit plan | ||
| 2. Other comprehensive incomes that cannot be transferred to profits or losses under the equity method | 5,679,897.29 | |
| 3. Changes in fair value of investment in other equity instruments | ||
| 4. Changes in fair value of the Company’s credit risk | ||
| 5. Others | ||
| (II) Other comprehensive incomes that will be reclassified into profits or losses | -363,765.87 | 250,455.89 |
| 1. Other comprehensive incomes that can be transferred to profits or losses under the equity method | -96,836.64 | 254,420.76 |
| 2. Changes in the fair value of other debt investments | ||
| 3. Amount of financial assets reclassified into other comprehensive incomes | ||
| 4. Other debt investment credit impairment provisions | ||
| 5. Cash flow hedging reserve | ||
| 6. Translation difference in foreign currency financial statements | -266,929.23 | -3,964.87 |
| 7. Others | ||
| Net after-tax amount of other comprehensive income attributable to minority shareholders | ||
| VII. Total comprehensive income | 483,568,001.92 | 401,586,758.24 |
| Total comprehensive income attributable to the owners of parent company | 483,568,001.92 | 401,586,758.24 |
| Total comprehensive income attributable to minority shareholders | ||
| VIII. Earnings per share: | ||
| (I) Basic income per share | 0.1034 | 0.0872 |
| (II) Diluted income per share | 0.1034 | 0.0872 |
In case of business merger under common control in the current period, the net profit realized by the combinedparty before the merger and that in the previous period are CNY 0.00.Legal representative: Wu Bilei Person in charge of accounting: Ji Yizhi Person in charge of the accountingorganization: Si Yuzhuo
4. Profit statement of parent company
Unit: CNY
| Item | Semi-annual 2024 | Semi-annual 2023 |
| I. Operating income | 0.00 | 0.00 |
| Less: operating costs | -1,270,265.34 | 1,004,509.14 |
| Taxes and surcharges | 41,580.57 | 92,539.45 |
| Sales expenses | ||
| Administrative expenses | 826,289.90 | 609,861.32 |
| R&D expenses | ||
| Financial expenses | -2,138,135.81 | 302,108.37 |
| Including: interest expenses | 319,616.24 | 369,423.14 |
| Interest income | 2,458,998.74 | 67,334.77 |
| Add: Other incomes | 57,741.82 | 344,768.40 |
| Investment income (loss to be listed with “-”) | 548,393,139.83 | 232,563,045.29 |
| Including: income from investment in associates and joint ventures | 194,893,139.83 | 232,563,045.29 |
| Gains on derecognition of financial assets at amortized cost (loss to be listed with “-”) | ||
| Net exposure hedging income (loss to be listed with “-”) | ||
| Profit arising from changes in fair value (loss to be listed with “-”) | ||
| Credit impairment loss (loss to be listed with “-”) | ||
| Asset impairment loss (loss to be listed with “-”) | ||
| Income from assets disposal (loss to be listed with “-”) | ||
| II. Operating profit (loss to be listed with “-”) | 549,721,146.99 | 231,903,304.55 |
| Add: non-operating income | 1.11 | |
| Less: non-operating expenses | ||
| III. Total profit (total loss to be listed with “-”) | 549,721,148.10 | 231,903,304.55 |
| Less: income tax expenses | ||
| IV. Net profit (net loss to be listed with “-”) | 549,721,148.10 | 231,903,304.55 |
| (I) Net profit from continuing operations (net loss to be listed with “-”) | 549,721,148.10 | 231,903,304.55 |
| (II) Net profit from discontinuing operations (net loss to be listed with “-”) | ||
| V. Net after-tax amount of other comprehensive incomes | 5,583,060.65 | 254,420.76 |
| (I) Other comprehensive incomes that cannot be reclassified into profits or losses | 5,679,897.29 | |
| 1. Changes arising from re-measurement of the defined benefit plan | ||
| 2. Other comprehensive incomes that cannot be transferred to profits or losses under the equity method | 5,679,897.29 | |
| 3. Changes in fair value of investment in other equity instruments | ||
| 4. Changes in fair value of the Company’s credit risk | ||
| 5. Others | ||
| (II) Other comprehensive incomes that will be reclassified into profits or losses | -96,836.64 | 254,420.76 |
| 1. Other comprehensive incomes that can be transferred to profits or losses under the equity method | -96,836.64 | 254,420.76 |
| 2. Changes in the fair value of other debt investments | ||
| 3. Amount of financial assets reclassified into other comprehensive incomes | ||
| 4. Other debt investment credit impairment provisions | ||
| 5. Cash flow hedging reserve |
| 6. Translation difference in foreign currency financial statements | ||
| 7. Others | ||
| VI. Total comprehensive income | 555,304,208.75 | 232,157,725.31 |
| VII. Earnings per share: | ||
| (I) Basic income per share | ||
| (II) Diluted income per share |
5. Consolidated cash flow statement
Unit: CNY
| Item | Semi-annual 2024 | Semi-annual 2023 |
| I. Cash flows from operating activities: | ||
| Cash received from sales of goods and provision of services | 26,571,299,613.10 | 26,509,677,303.11 |
| Net increase in customer bank deposits and due to banks and other financial institutions | ||
| Net increase in borrowings from the central bank | ||
| Net increase in placements from other financial institutions | ||
| Cash from premium of original insurance contract | ||
| Net cash received from reinsurance business | ||
| Net increase in deposits and investments from policyholders | ||
| Cash received from interests, handling charges and commissions | ||
| Net increase in placements from banks and other financial institutions | ||
| Net increase in repurchase business capital | ||
| Net cash received from securities brokerage | ||
| Tax refunds received | 80,428,478.21 | 324,144,774.70 |
| Other cash received relating to operating activities | 766,061,762.08 | 641,647,622.93 |
| Subtotal of cash inflows from operating activities | 27,417,789,853.39 | 27,475,469,700.74 |
| Cash paid for goods and services | 19,330,228,104.51 | 16,681,742,834.34 |
| Net increase in loans and advances to customers | ||
| Net increase in deposits with central bank and other financial institutions | ||
| Cash paid for original insurance contract claims | ||
| Net increase in loans to banks and other financial institutions | ||
| Cash paid for interests, handling charges and commissions | ||
| Cash paid for policyholder dividend | ||
| Cash paid to and on behalf of employees | 2,392,662,792.06 | 2,351,935,403.71 |
| Taxes paid | 507,389,936.19 | 775,864,015.70 |
| Cash paid for other operating activities | 946,578,965.01 | 951,768,069.52 |
| Subtotal of cash outflows from operating activities | 23,176,859,797.77 | 20,761,310,323.27 |
| Net cash flows from operating activities | 4,240,930,055.62 | 6,714,159,377.47 |
| II. Cash flows from investment activities: | ||
| Cash received from the return of investment | ||
| Cash received from acquirement of investment income | 6,500,530.62 | 11,728,790.64 |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 77,910,098.29 | 3,224,430.67 |
| Net cash received from the disposal of subsidiaries and other business entities | ||
| Cash received from other investment activities | 368,529,711.02 | |
| Subtotal of cash inflows from investment activities | 84,410,628.91 | 383,482,932.33 |
| Cash paid to acquire fixed assets, intangible assets and other long-term assets | 858,813,888.24 | 798,231,104.91 |
| Cash paid to acquire investments | 4,900,000.00 | 546,943,104.33 |
| Net increase in pledged loans | ||
| Net cash paid to acquire subsidiaries and other business units | ||
| Other cash paid relating to investment activities | ||
| Subtotal of cash outflows from investment activities | 863,713,888.24 | 1,345,174,209.24 |
| Net cash flows from investment activities | -779,303,259.33 | -961,691,276.91 |
| III. Cash flows from financing activities: | ||
| Cash received from absorbing investment | ||
| Including: cash received by subsidiaries absorbing minority shareholders’ investments | ||
| Cash received from borrowings | ||
| Cash received relating to other financing activities | ||
| Subtotal of cash inflows from financing activities | ||
| Cash paid for repayment of debts | ||
| Cash paid for distribution of dividends, profits or interest repayment | 693,696,364.17 | |
| Including: dividends and profits paid to minority shareholders by subsidiaries | ||
| Other cash paid relating to financing activities | 11,981,702.80 | 19,709,605.31 |
| Subtotal of cash outflows from financing activities | 705,678,066.97 | 19,709,605.31 |
| Net cash flows from financing activities | -705,678,066.97 | -19,709,605.31 |
| IV. Effects from change of exchange rate on cash and cash equivalents | -6,037.08 | 10,253.58 |
| V. Net increase in cash and cash equivalents | 2,755,942,692.24 | 5,732,768,748.83 |
| Add: opening balance of cash and cash equivalents | 22,483,844,553.59 | 20,697,669,726.18 |
| VI. Ending Balance of cash and cash equivalents | 25,239,787,245.83 | 26,430,438,475.01 |
6. Cash flow statement of parent company
Unit: CNY
| Item | Semi-annual 2024 | Semi-annual 2023 |
| I. Cash flows from operating activities: | ||
| Cash received from sales of goods and provision of services | ||
| Tax refunds received | ||
| Other cash received relating to operating activities | 265,696,548.98 | 98,280,887.47 |
| Subtotal of cash inflows from operating activities | 265,696,548.98 | 98,280,887.47 |
| Cash paid for goods and services | ||
| Cash paid to and on behalf of employees | 189,000.00 | 189,000.00 |
| Taxes paid | 0.00 | 96,728.40 |
| Cash paid for other operating activities | 85,037,064.99 | 97,575,865.50 |
| Subtotal of cash outflows from operating activities | 85,226,064.99 | 97,861,593.90 |
| Net cash flows from operating activities | 180,470,483.99 | 419,293.57 |
| II. Cash flows from investment activities: | ||
| Cash received from the return of investment | ||
| Cash received from acquirement of investment income | 353,500,000.00 | 4,835,877.87 |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | ||
| Net cash received from the disposal of subsidiaries and other business entities | ||
| Cash received from other investment activities | 67,334.77 | |
| Subtotal of cash inflows from investment activities | 353,500,000.00 | 4,903,212.64 |
| Cash paid to acquire fixed assets, intangible assets and other long-term assets | ||
| Cash paid to acquire investments | ||
| Net cash paid to acquire subsidiaries and other business units | ||
| Other cash paid relating to investment activities | ||
| Subtotal of cash outflows from investment activities | ||
| Net cash flows from investment activities | 353,500,000.00 | 4,903,212.64 |
| III. Cash flows from financing activities: | ||
| Cash received from absorbing investment | ||
| Cash received from borrowings | ||
| Cash received relating to other financing activities | ||
| Subtotal of cash inflows from financing activities | ||
| Cash paid for repayment of debts | ||
| Cash paid for distribution of dividends, profits or interest repayment | 693,696,364.17 | |
| Other cash paid relating to financing activities | ||
| Subtotal of cash outflows from financing activities | 693,696,364.17 | |
| Net cash flows from financing activities | -693,696,364.17 | |
| IV. Effects from change of exchange rate on cash and cash equivalents | 0.00 | |
| V. Net increase in cash and cash equivalents | -159,725,880.18 | 5,322,506.21 |
| Add: opening balance of cash and cash equivalents | 165,157,237.21 | 4,235,008.50 |
| VI. Ending Balance of cash and cash equivalents | 5,431,357.03 | 9,557,514.71 |
7. Consolidated statement of changes in owners’ equity
Amount in the current period
Unit: CNY
| Item | Semi-annual 2024 | ||||||||||||||
| Equity Attributable To Owners of the Parent Company | Minority equity | Total owners’ equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: treasury shares | Other comprehensive incomes | Special reserves | Surplus reserves | General risk provision | Undistributed profits | Others | Subtotal | |||||
| Preferred Shares | Perpetual Bond | Others | |||||||||||||
| I. Ending Balance of the previous year | 4,636,485,668.00 | 10,343,418,951.73 | 86,131,497.27 | -8,514,110.10 | 319,314,527.85 | 3,090,408,316.87 | 6,191,777,512.32 | 24,486,759,369.40 | 24,486,759,369.40 | ||||||
| Add: changes in accounting policies | |||||||||||||||
| Correction of | |||||||||||||||
| prior period errors | |||||||||||||||
| Others | |||||||||||||||
| II. Opening Balance of the current year | 4,636,485,668.00 | 10,343,418,951.73 | 86,131,497.27 | -8,514,110.10 | 319,314,527.85 | 3,090,408,316.87 | 6,191,777,512.32 | 24,486,759,369.40 | 24,486,759,369.40 | ||||||
| III. Increase/decrease in amount of the current period (decrease to be listed with “-”) | -12,621,954.00 | -66,657,273.11 | -79,884,645.54 | 5,316,131.42 | -9,199,833.45 | -215,327,686.60 | -218,605,970.20 | -218,605,970.20 | |||||||
| (I) Total comprehensive income | 5,316,131.42 | 478,251,870.50 | 483,568,001.92 | 483,568,001.92 | |||||||||||
| (II) Invested and decreased capital of owners | -12,621,954.00 | -66,657,273.11 | -79,884,645.54 | 605,418.43 | 605,418.43 |
| 1. Ordinary shares invested by owners | -12,621,954.00 | -67,262,691.54 | -79,884,645.54 | -79,884,645.54 | |||||||||||
| 2. Capital contributed by holders of other equity instruments | |||||||||||||||
| 3. Amounts of share-based payments recorded in owner’s equity | |||||||||||||||
| 4. Others | 605,418.43 | -79,884,645.54 | 80,490,063.97 | 80,490,063.97 | |||||||||||
| (III) Profit distribution | -693,579,557.10 | -693,579,557.10 | -693,579,557.10 | ||||||||||||
| 1. Appropriation to surplus |
| reserves | |||||||||||||||
| 2. Appropriation to general risk reserves | |||||||||||||||
| 3. Distribution to owners (or shareholders) | -693,579,557.10 | -693,579,557.10 | -693,579,557.10 | ||||||||||||
| 4. Others | |||||||||||||||
| (IV) Internal carryover of owners’ equity | |||||||||||||||
| 1. Transfer from capital reserve to paid-in capital (or share capital) | |||||||||||||||
| 2. |
| Transfer from surplus reserves to paid-in capital (or share capital) | |||||||||||||||
| 3. Recovery of losses by surplus reserves | |||||||||||||||
| 4. Retained earnings carried forward from changes in defined benefit plans | |||||||||||||||
| 5. Retained earnings carried forward |
| from other comprehensive income | |||||||||||||||
| 6. Others | |||||||||||||||
| (V) Special reserves | -9,199,833.45 | -9,199,833.45 | -9,199,833.45 | ||||||||||||
| 1. Appropriation in the current period | 6,016,604.46 | 6,016,604.46 | 6,016,604.46 | ||||||||||||
| 2. Use in the current period | -15,216,437.91 | -15,216,437.91 | -15,216,437.91 | ||||||||||||
| (VI) Others | |||||||||||||||
| IV. Ending Balance of the current period | 4,623,863,714.00 | 10,276,761,678.62 | 6,246,851.73 | -3,197,978.68 | 310,114,694.40 | 3,090,408,316.87 | 5,976,449,825.72 | 24,268,153,399.20 | 24,268,153,399.20 |
Amount of the previous year
Unit: CNY
| Item | Semi-annual 2023 | ||||||||||||
| Equity Attributable To Owners of the Parent Company | Minority equit | Total owners’ equity | |||||||||||
| Share capital | Other equity | Capital reserves | Less: treasury | Other comprehensive | Special reserves | Surplus reserves | General | Undistributed | Other | Subtotal | |||
| instruments | shares | incomes | risk provision | profits | s | y | |||||||||
| Preferred Shares | Perpetual Bond | Others | |||||||||||||
| I. Ending Balance of the previous year | 4,651,965,655.00 | 10,451,088,236.74 | 267,837,184.11 | -5,399,120.81 | 370,420,291.86 | 3,058,249,602.44 | 5,460,939,601.36 | 23,719,427,082.48 | 23,719,427,082.48 | ||||||
| Add: changes in accounting policies | |||||||||||||||
| Correction of prior period errors | |||||||||||||||
| Others | |||||||||||||||
| II. Opening Balance of the current year | 4,651,965,655.00 | 10,451,088,236.74 | 267,837,184.11 | -5,399,120.81 | 370,420,291.86 | 3,058,249,602.44 | 5,460,939,601.36 | 23,719,427,082.48 | 23,719,427,082.48 | ||||||
| III. Increase/decrease in amount of the current period (decrease to be listed with “-”) | -14,633,325.00 | -70,430,027.93 | -92,539,863.27 | 250,455.89 | -1,450,331.71 | 401,336,302.35 | 407,612,936.87 | 407,612,936.87 | |||||||
| (I) Total comprehensive income | 250,455.89 | 401,336,302.35 | 401,586,758.24 | 401,586,758.24 | |||||||||||
| (II) Invested and decreased capital of owners | -14,633,325.00 | -70,430,027.93 | -92,539,863.27 | 7,476,510.34 | 7,476,510.34 | ||||||||||
| 1. Ordinary shares invested by | -14,633,325.00 | -77,906,538.27 | -92,539,863.27 | -92,539,863.27 |
| owners | |||||||||||||||
| 2. Capital contributed by holders of other equity instruments | |||||||||||||||
| 3. Amounts of share-based payments recorded in owner’s equity | 7,500,283.02 | 7,500,283.02 | 7,500,283.02 | ||||||||||||
| 4. Others | -23,772.68 | -92,539,863.27 | 92,516,090.59 | 92,516,090.59 | |||||||||||
| (III) Profit distribution | |||||||||||||||
| 1. Appropriation to surplus reserves | |||||||||||||||
| 2. Appropriation |
| to general risk reserves | |||||||||||||||
| 3. Distribution to owners (or shareholders) | |||||||||||||||
| 4. Others | |||||||||||||||
| (IV) Internal carryover of owners’ equity | |||||||||||||||
| 1. Transfer from capital reserve to paid-in capital (or share capital) | |||||||||||||||
| 2. Transfer from surplus reserves to |
| paid-in capital (or share capital) | |||||||||||||||
| 3. Recovery of losses by surplus reserves | |||||||||||||||
| 4. Retained earnings carried forward from changes in defined benefit plans | |||||||||||||||
| 5. Retained earnings carried forward from other comprehensive income |
| 6. Others | |||||||||||||||
| (V) Special reserves | -1,450,331.71 | -1,450,331.71 | -1,450,331.71 | ||||||||||||
| 1. Appropriation in the current period | 15,046,812.40 | 15,046,812.40 | 15,046,812.40 | ||||||||||||
| 2. Use in the current period | -16,497,144.11 | -16,497,144.11 | -16,497,144.11 | ||||||||||||
| (VI) Others | |||||||||||||||
| IV. Ending Balance of the current period | 4,637,332,330.00 | 10,380,658,208.81 | 175,297,320.84 | -5,148,664.92 | 368,969,960.15 | 3,058,249,602.44 | 5,862,275,903.71 | 24,127,040,019.35 | 24,127,040,019.35 |
8. Statement of Changes in Owners’ Equity of Parent Company
Amount in the current period
Unit: CNY
| Item | Semi-annual 2024 | |||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: treasury shares | Other comprehensive incomes | Special reserves | Surplus reserves | Undistributed profits | Others | Total owners’ equity | |||
| Preferr | Perpet | Othe | ||||||||||
| ed Shares | ual Bond | rs | ||||||||||
| I. Ending Balance of the previous year | 4,636,485,668.00 | 12,171,693,342.10 | 86,131,497.27 | 863,137.93 | 1,859,690,555.97 | 7,083,209,394.76 | 25,665,810,601.49 | |||||
| Add: changes in accounting policies | ||||||||||||
| Correction of prior period errors | ||||||||||||
| Others | ||||||||||||
| II. Opening Balance of the current year | 4,636,485,668.00 | 12,171,693,342.10 | 86,131,497.27 | 863,137.93 | 1,859,690,555.97 | 7,083,209,394.76 | 25,665,810,601.49 | |||||
| III. Increase/decrease in amount of the current period (decrease to be listed with “-”) | -12,621,954.00 | -67,262,691.54 | -79,884,645.54 | 5,583,060.65 | -143,858,409.00 | -138,275,348.35 | ||||||
| (I) Total comprehensive income | 5,583,060.65 | 549,721,148.10 | 555,304,208.75 | |||||||||
| (II) Invested and decreased capital of owners | -12,621,954.00 | -67,262,691.54 | -79,884,645.54 | |||||||||
| 1. Ordinary shares invested by owners | -12,621,954.00 | -67,262,691.54 | -79,884,645.54 | |||||||||
| 2. Capital contributed by holders of other equity instruments | ||||||||||||
| 3. Amounts of share-based payments recorded |
| in owner’s equity | ||||||||||||
| 4. Others | -79,884,645.54 | 79,884,645.54 | ||||||||||
| (III) Profit distribution | -693,579,557.10 | -693,579,557.10 | ||||||||||
| 1. Appropriation to surplus reserves | ||||||||||||
| 2. Distribution to owners (or shareholders) | -693,579,557.10 | -693,579,557.10 | ||||||||||
| 3. Others | ||||||||||||
| (IV) Internal carryover of owners’ equity | ||||||||||||
| 1. Transfer from capital reserve to paid-in capital (or share capital) | ||||||||||||
| 2. Transfer from surplus reserves to paid-in capital (or share capital) | ||||||||||||
| 3. Recovery of losses by surplus reserves | ||||||||||||
| 4. Retained earnings carried forward from changes in defined benefit plans | ||||||||||||
| 5. Retained earnings carried forward from other comprehensive income | ||||||||||||
| 6. Others |
| (V) Special reserves | ||||||||||||
| 1. Appropriation in the current period | ||||||||||||
| 2. Use in the current period | ||||||||||||
| (VI) Others | ||||||||||||
| IV. Ending Balance of the current period | 4,623,863,714.00 | 12,104,430,650.56 | 6,246,851.73 | 6,446,198.58 | 1,859,690,555.97 | 6,939,350,985.76 | 25,527,535,253.14 |
Amount of the previous year
Unit: CNY
| Item | Semi-annual 2023 | |||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: treasury shares | Other comprehensive incomes | Special reserves | Surplus reserves | Undistributed profits | Others | Total owners’ equity | |||
| Preferred Shares | Perpetual Bond | Others | ||||||||||
| I. Ending Balance of the previous year | 4,651,965,655.00 | 12,278,939,213.88 | 267,837,184.11 | -480,794.77 | 1,827,531,841.54 | 6,793,780,964.90 | 25,283,899,696.44 | |||||
| Add: changes in accounting policies | ||||||||||||
| Correction of prior period errors | ||||||||||||
| Others | ||||||||||||
| II. Opening Balance of the current year | 4,651,965,655.00 | 12,278,939,213.88 | 267,837,184.11 | -480,794.77 | 1,827,531,841.54 | 6,793,780,964.90 | 25,283,899,696.44 | |||||
| III. | -14,633,325.00 | -77,906,538.27 | -92,539,863.27 | 254,420.76 | 231,903,304.55 | 232,157,725.31 | ||||||
| Increase/decrease in amount of the current period (decrease to be listed with “-”) | ||||||||||||
| (I) Total comprehensive income | 254,420.76 | 231,903,304.55 | 232,157,725.31 | |||||||||
| (II) Invested and decreased capital of owners | -14,633,325.00 | -77,906,538.27 | -92,539,863.27 | 0.00 | ||||||||
| 1. Ordinary shares invested by owners | -14,633,325.00 | -77,906,538.27 | -92,539,863.27 | |||||||||
| 2. Capital contributed by holders of other equity instruments | ||||||||||||
| 3. Amounts of share-based payments recorded in owner’s equity | ||||||||||||
| 4. Others | -92,539,863.27 | 92,539,863.27 | ||||||||||
| (III) Profit distribution | ||||||||||||
| 1. Appropriation to surplus reserves | ||||||||||||
| 2. Distribution to owners (or shareholders) | ||||||||||||
| 3. Others | ||||||||||||
| (IV) Internal carryover of owners’ equity | ||||||||||||
| 1. Transfer from capital reserve to |
| paid-in capital (or share capital) | ||||||||||||
| 2. Transfer from surplus reserves to paid-in capital (or share capital) | ||||||||||||
| 3. Recovery of losses by surplus reserves | ||||||||||||
| 4. Retained earnings carried forward from changes in defined benefit plans | ||||||||||||
| 5. Retained earnings carried forward from other comprehensive income | ||||||||||||
| 6. Others | ||||||||||||
| (V) Special reserves | ||||||||||||
| 1. Appropriation in the current period | ||||||||||||
| 2. Use in the current period | ||||||||||||
| (VI) Others | ||||||||||||
| IV. Ending Balance of the current period | 4,637,332,330.00 | 12,201,032,675.61 | 175,297,320.84 | -226,374.01 | 1,827,531,841.54 | 7,025,684,269.45 | 25,516,057,421.75 |
III. Company Profile
1. Overview
FAW JIEFANG GROUP CO., LTD., formerly known as FAW Car Co., Ltd., is a limited liability companyregistered in Changchun City, Jilin Province.FAW Car was approved by TGS [1997] No. 55 Document of the State Commission for Restructuring the EconomicSystems in 1997 and established exclusively by CHINA FAW GROUP CO., LTD. On June 18, 1997, FAW Carwas approved by the China Securities Regulatory Commission to issue shares publicly and listed on the ShenzhenStock Exchange for circulation.On April 9, 2012, FAW Group invested 862,983,689 shares of FAW Car into FAW as its capital contribution, andreceived the Confirmation of Securities Transfer Registration issued by China Securities Depository & ClearingCo., Ltd. Shenzhen Branch on the same day.On November 28, 2019, FAW Car held the 10
th Meeting of the 8
thBoard of Directors, and reviewed and approvedthe adjustment plan for major asset restructuring. After the adjustment, FAW Car transferred all its assets andliabilities except the equity and some reserved assets of First Automobile Finance Co., Ltd. and SanguardAutomobile Insurance Co., Ltd. to FAW Bestune, and then replaced 100% equity of FAW Bestune Car Co., Ltd.with the equivalent part of 100% equity of FAW Jiefang Automotive Co., Ltd. (Jiefang Limited) held by FAW. Atthe same time, FAW Car purchased the difference between the purchased assets and the sold assets from FAW byissuing shares and paying cash.On March 12, 2020, FAW Car received the Reply on Approving the Major Asset Restructuring of FAW Car Co.,Ltd. and Issuing Shares to China FAW Co., Ltd. for Asset Purchase (ZJXK [2020] No. 352) issued by the ChinaSecurities Regulatory Commission, and China Securities Regulatory Commission reviewed and approved the majorasset replacement, share issuance and cash payment for assets purchase and related transactions of FAW Car.The Capital Verification Report (XYZH/2020BJA100417) issued by ShineWing Accounting Firm (special generalpartnership) indicates that, as of March 19, 2020, all proposed purchased assets, i.e. 100% equity of Jiefang Limited,to be replaced by FAW Car to FAW by issuing shares had been transferred to FAW Car. The industrial andcommercial change registration procedures of Jiefang Limited had been completed, all proposed assets, i.e. 100%equity of FAW Bestune, had been transferred to FAW, and the industrial and commercial change registrationprocedures of FAW Bestune had been completed. The registered capital of FAW Car is CNY 4,609,666,212.00after this change.In May 2020, the name of FAW Car was changed to “FAW JIEFANG GROUP CO., LTD.” and the stockabbreviation was changed to “FAW Jiefang”.On January 11, 2021, the Company held the First Extraordinary Shareholders’ Meeting of 2021, and reviewed andapproved the Proposal on the Restricted Share Incentive Plan of FAW JIEFANG GROUP CO., LTD. (Draft) andIts Abstract, the Proposal on the Regulations for the Implementation Assessment of Restricted Share Incentive Planof FAW JIEFANG GROUP CO., LTD., the Proposal on the Regulations for Restricted Share Incentive of FAW
JIEFANG GROUP CO., LTD., and the Proposal on Requesting the Shareholders’ Meeting to Authorize the Boardof Directors to Handle Matters Related to the Company’s Restricted Share Incentive Plan. On January 15, 2021, theCompany held the 12
th Meeting of the 9
thBoard of Directors, and reviewed and approved the Proposal on Adjustingthe List of the First Batch of Incentive Objects and the Number of Grants in the Phase I Restricted Share IncentivePlan and the Proposal on Granting Restricted Shares to the Incentive Objects of the Phase I Restricted ShareIncentive Plan for the First Time. Nine directors and senior executives, including Hu Hanjie, Zhu Qixin, ZhangGuohua, Wang Ruijian, Shang Xingwu, Ou Aimin, Kong Dejun, Wu Bilei and Wang Jianxun, and 310 other coreemployees with the title of senior director and above were granted to subscribe for 40,987,657 new shares of theCompany at an issue price of CNY 7.54 per share, and the registered capital of the Company was changed to CNY4,650,653,869.00. This change was verified by the Capital Verification Report (ZTYZ (2021) No. 110C000033)issued by Grant Thornton Certified Public Accountants (Special General Partnership). On February 1, 2021, theCompany disclosed the Announcement on the Completion of the First Grant Registration of Phase I Restricted ShareIncentive Plan.On December 9, 2021, the Company held the 20
th Meeting of the 9
th Board of Directors and the 19
thMeeting of the
thBoard of Supervisors, and reviewed and approved the Proposal on Granting Reserved Part of Restricted Sharesin the Phase I Restricted Share Incentive Plan to Incentive Objects and the Proposal on Repurchase and Cancellationof Partial Restricted Shares in the Phase I Restricted Share Incentive Plan respectively. Thirty-three core techniciansand management backbones, including Wang Manhong, Zhang Yu and Qu Yi, subscribed for 3,721,601 new sharesat an issue price of CNY 6.38/share, and 260,857 shares were repurchased at a price of CNY 7.04/share from 2employees who were no longer eligible for incentive objects. The registered capital of the Company was changedto CNY 4,654,114,613.00. This change was verified by the Capital Verification Report (ZTYZ (2021) No.110C000927) issued by Grant Thornton Accounting Firm (special general partnership). On January 6, 2022, theCompany disclosed the Announcement on the Completion of Registration of the Grant of Reserved Part ofRestricted Shares in the Phase I Restricted Share Incentive Plan. On January 17, 2022, the Company disclosed theAnnouncement on the Completion of Repurchase and Cancellation of Some Restricted Shares.On August 29, 2022, the Company held the 26
th Meeting of the 9
th
Board of Directors and the 23
rd
Meeting of the
th
Board of Supervisors, and reviewed and approved the Proposal on Repurchase and Cancellation of PartialRestricted Shares in the Phase I Restricted Share Incentive Plan. It was agreed to repurchase 789,711 shares at aprice of CNY 6.39/share from 6 employees who are no longer qualified as incentive objects, and the registeredcapital of the Company was changed to CNY 4,653,324,902.00. This change was verified according to the CapitalVerification Report (XYZH/2022CCAA2B0016) issued by ShineWing Accounting Firm (special generalpartnership). On November 14, 2022, the Company disclosed the Announcement on Completion of Repurchase andCancellation of Some Restricted Shares.On October 28, 2022, the Company held the 28
th
Meeting of the 9
th Board of Directors and the 24
th
Meeting of the
th
Board of Supervisors, and reviewed and approved the Proposal on Repurchase and Cancellation of PartialRestricted Shares in the Phase I Restricted Share Incentive Plan, and agreed to repurchase 1,359,247 shares at aprice of CNY 6.39/share from 11 employees who are no longer qualified as incentive objects. The registered capitalof the Company was changed to CNY 4,651,965,655.00. This change was verified according to the CapitalVerification Report (XYZH/2023CCAA2B0001) issued by ShineWing Accounting Firm (special generalpartnership). On January 17, 2023, the Company disclosed the Announcement on Completion of Repurchase andCancellation of Some Restricted Shares.
On December 15, 2022, the Company held the 30
th
Meeting of the 9
th Board of Directors and the 26
thMeeting ofthe 9thBoard of Supervisors, and reviewed and approved the Proposal on the Achievement of Unlocking Conditionsin the First Release Period of the Restricted Shares Firstly Granted in the Phase I Restricted Incentive Plan. Theunlocking conditions in the first release period of the restricted shares firstly granted in the phase I restrictedincentive plan had been fulfilled. The unlocking matters of the first restriction releasing period for restricted sharesfirstly granted were handled in accordance with the restricted share incentive plan. There were a total of 311incentive objects eligible for unlocking, and the number of restricted stocks unlocked this time was 13,042,347, andthese shares were listed on May 16, 2023. On February 3, 2024, the Company disclosed the IndicativeAnnouncement on the Listing and Circulation of Unlocked Shares in the First Release Period of the RestrictedShares Firstly Granted in the Phase I Restricted Share Incentive Plan.The Proposal on the Repurchase and Cancellation of Partial Restricted Shares in the Phase I Restricted ShareIncentive Plan was reviewed and approved at the 30
th Meeting of the 9
th Board of Directors and the 26
thMeeting ofthe 9thBoard of Supervisors on December 15, 2022. The participant at the meeting agreed to repurchase and cancelall or some restricted shares granted to 6 incentive objects but not yet released, totaling 723,435 shares, and theregistered capital of the Company was changed to CNY 4,651,242,220. This change was verified according to theCapital Verification Report (XYZH/2023CCAA2B0103) issued by ShineWing Accounting Firm (special generalpartnership). On April 28, 2023, the Company disclosed the Announcement on Completion of Repurchase andCancellation of Some Restricted Shares.On March 31, 2023, the Proposal on Unfulfilling Conditions for Releasing Restricted Sales in the Second Period ofReleasing Restricted Shares Firstly Granted and Conditions for the First Period of Releasing Restricted SharesReserved for Granting in Phase I Restricted Share Incentive Plan and Repurchase and Cancellation of SomeRestricted Shares was reviewed and approved at the 32
nd Meeting of the 9
th Board of Directors and the 28
thMeetingof the 9
thBoard of Supervisors. The participants at the meeting agreed to repurchase and cancel all or some restrictedshares granted to 327 incentive objects but not yet released, totaling 13,909,890 shares, and the registered capital ofthe Company was changed to CNY 4,637,332,330. This change was verified according to the Capital VerificationReport (XYZH/2023CCAA2B017) issued by ShineWing Accounting Firm (special general partnership). On June30, 2023, the Company disclosed the Announcement on Completion of Repurchase and Cancellation of SomeRestricted Shares.On April 27, 2023, the Company held the 2
nd Meeting of the 10
th Board of Directors and the 2
nd Meeting of the 10
th
Board of Supervisors, respectively, and reviewed and approved the Proposal on Releasing Restriction on Sales ofPart of Restricted Shares. The Board of Directors believed that conditions for releasing restricted sales of restrictedshares in the first restriction releasing period for incentive objects Hu Hanjie, Wu Bilei, Zhang Guohua and WangJianxun had been fulfilled, and agreed to release restricted sales of restricted shares in the first restriction releasingperiod for them, totaling 64,954 shares. and these shares were listed on May 16, 2023. On May 15, 2023, theCompany disclosed the Indicative Announcement on Sales Restriction Releasing and Listing and Circulation ofPart of Restricted Shares.The Proposal on the Repurchase and Cancellation of Partial Restricted Shares in the Phase I Restricted ShareIncentive Plan was reviewed and approved at the 5
th
Meeting of the 10
th Board of Directors and the 4
thMeeting ofthe 10
th
Board of Supervisors on August 29, 2023. The participants at the meeting agreed to repurchase and cancelall or some restricted shares granted to 8 incentive objects but not yet released, totaling 333,855 shares, and the
registered capital of the Company was changed to CNY 4,636,998,475.00. This change was verified according tothe Capital Verification Report (XYZH/2023CCAA2B0188) issued by ShineWing Accounting Firm (specialgeneral partnership). On November 29, 2023, the Company disclosed the Announcement on Completion ofRepurchase and Cancellation of Some Restricted Shares.The Proposal on the Repurchase and Cancellation of Partial Restricted Shares in the Phase I Restricted ShareIncentive Plan was reviewed and approved at the 7
th
Meeting of the 10
th Board of Directors and the 6
thMeeting ofthe 10thBoard of Supervisors on November 20, 2023. The participants at the meeting agreed to repurchase andcancel all or some restricted shares granted to some incentive objects but not yet released, totaling 512,807 shares,and the registered capital of the Company was changed to CNY 4,636,485,668. This change was verified accordingto the Capital Verification Report (XYZH/2024CCAA2B0020) issued by ShineWing Accounting Firm (specialgeneral partnership). On March 28, 2024, the Company disclosed the Announcement on Completion of Repurchaseand Cancellation of Some Restricted Shares.On March 28, 2024, the Proposal on Unfulfilling Conditions for Releasing Restricted Sales in the Second Period ofReleasing Restricted Shares Firstly Granted and Conditions for the First Period of Releasing Restricted SharesReserved for Granting in Phase I Restricted Share Incentive Plan and Repurchase and Cancellation of SomeRestricted Shares was reviewed and approved at the 11
th Meeting of the 10
th Board of Directors and the 10
thMeetingof the 10
thBoard of Supervisors. The participants at the meeting agreed to repurchase and cancel all or somerestricted shares granted to 299 incentive objects but not yet released, totaling 12,621,954 shares, and the registeredcapital of the Company was changed to CNY 4,623,863,714. This change was verified according to the CapitalVerification Report (XYZH/2024CCAA2B0173) issued by ShineWing Accounting Firm (special generalpartnership). On June 15, 2024, the Company disclosed the Announcement on Completion of Repurchase andCancellation of Some Restricted Shares.The Company establishes a corporate governance structure consisting of the Shareholders’ Meeting, the Board ofDirectors and the Board of Supervisors, and has one wholly-owned subsidiary, Jiefang Limited. Jiefang Limited hassix wholly-owned subsidiaries, namely, FAW Jiefang (Qingdao) Automotive Co., Ltd., Wuxi Dahao Power Co.,Ltd., FAW Jiefang Dalian Diesel Engine Co., Ltd., FAW Jiefang Austria R&D Co., Ltd., FAW Jiefang New EnergyAutomotive Sales Co., Ltd., and FAW Jiefang Younida (Tianjin) Technology Co., Ltd. It also has 11 associatedcompanies, namely, First Automobile Finance Co., Ltd., Sanguard Automobile Insurance Co., Ltd., FAWChangchun Baoyou Jiefang Steel Processing and Distribution Co., Ltd., FAW Changchun Ansteel Steel Processingand Distribution Co., Ltd., Changchun Wabco Automotive Control System Co., Ltd., Suzhou Zhito Technology Co.,Ltd., FAW Jiefang Fujie (Tianjin) Technology Industry Co., Ltd., Smartlink Intelligent Technology (Nanjing) Co.,Ltd., Foshan Diyiyuansu New Energy Technology Co., Ltd., Changchun Automotive Test Center Co., Ltd. and DiyiAESC New Energy Power Technology (Wuxi) Co., Ltd. It has 1 joint company, namely, FAW Jiefang-CATL NewEnergy Technology Co., Ltd.Business scope of the Company: R&D, production and sales of light, medium and heavy trucks, complete vehicles,buses, bus chassis, medium truck deformation vehicles, automobile assemblies and parts, machining, diesel enginesand accessories (non-vehicle), mechanical equipment and accessories, instruments, technical services, technicalconsultation, installation and maintenance of mechanical equipment, lease of mechanical equipment and facilities,lease of houses and workshops, labor services (excluding foreign labor cooperation and domestic labor dispatch),sales of steel, automobile trunks, hardware & electrical equipment and electronic products, testing of internal
combustion engine, engineering technology research and testing, advertising design, production and release, importand export of goods and technologies (excluding publication import business and commodities and technologiesthat are restricted or prohibited for import and export by the state); value-added telecommunications services; carrentals and second-handed car sales; (the following items are operated by the branch company) Chinese foodproduction and sales, warehousing and logistics (excluding flammable, explosive and precursor dangerouschemicals), automobile repair, tank manufacturing of chemical liquid tanker, automobile trunk manufacturing;operation of medical devices, Internet freight (excluding road transport of dangerous goods); road freight transport(excluding dangerous goods) (items subject to approval according to law can be operated only after being approvedby relevant authorities).Registered address of the Company: No. 2259, Dongfeng Street, Changchun Automobile Development Zone, JilinProvince.The legal representative of the Company is Wu Bilei.The financial statements and notes to the financial statements were approved for issue by the Board of Directors ofthe Company on August 29, 2023.
2. Scope of consolidated financial statements
During the reporting period, the Company has 1 secondary subsidiary and 6 tertiary subsidiaries included in thescope of consolidation. For details, please refer to Section X Financial Report 10, Equity in Other Entities.IV. Basis of Preparation for Financial Statements
1. Preparation basis
The financial statements are prepared according to the Accounting Standards for Business Enterprises issued bythe Ministry of Finance and its application guidelines, interpretations and other relevant provisions (hereinaftercollectively referred to as “ASBE”). In addition, the Company also discloses relevant financial informationaccording to the Rules No. 15 for Preparing Information Disclosure by Companies Offering Securities to thePublic—General Provisions on Financial Reporting (2023 Revision) issued by China Securities RegulatoryCommission.
2. Continuing operations
The financial statements are presented on continuing operations.The financial accounting of the Company is based on the accrual basis. The financial statements are prepared on ahistorical cost basis except for certain financial instruments. If the assets are impaired, the corresponding provisionfor impairment shall be made as specified.V. Significant Accounting Policies and Accounting EstimatesTips for specific accounting policies and accounting estimates:
The Company determines the depreciation of fixed assets, amortization of intangible assets, capitalizationconditions of R&D expenses and income recognition policies according to its own production and operationcharacteristics. For specific accounting policies, please see 21, 23 and 30 in V “Significant Accounting Policiesand Accounting Estimates” in Section X - Financial Report.
1. Statement of compliance with accounting standards for business enterprisesThis financial statement complies with the requirements of the Enterprise Accounting Standards and truthfully andcompletely reflects the consolidated and financial position of the Company as of June 30, 2024, as well as theconsolidated and operating results and cash flows of the Company for the first half of 2024.
2. Accounting period
The accounting period of the Company is a calendar year, namely, from January 1 to December 31 every year.
3. Operating cycle
The operating cycle of the Company is 12 months.
4. Recording currency
The Company and its domestic subsidiaries use CNY as their recording currency. The overseas subsidiaries of theCompany determine EUR as the recording currency according to the currency in the main economic environmentin which they operate. The Company uses CNY to prepare the financial statements.
5. Methods for determining materiality criteria and selection basis
?Applicable □Not applicable
| Item | Materiality Criteria |
| Receivables with significant provision for bad debts by individual item | 10% of the absolute value of net profit or 10% of similar business |
| Write-off of significant receivables in the current period | 10% of the absolute value of net profit or 10% of similar business |
| Significant changes in the book value of contractual assets | 10% of the absolute value of net profit or 10% of similar business |
| Major projects under construction | 10% of the absolute value of net profit or 10% of similar business |
| Significant capitalized R&D projects | 10% of the absolute value of net profit or 10% of similar business |
6. Accounting treatment method for business merger under common control and different control
(1) Business merger under common control
As to the business merger under common control, the assets and liabilities of the combined party obtained by thecombining party are calculated in the book value in the consolidated financial statements of the ultimate controllerby the combined party on the combination date. The capital reserve (stock premium) is adjusted based on thedifference between the book value of the combination consideration and the book value of the net assets obtainedin the combination. The retained earnings are adjusted if the capital reserve (stock premium) is insufficient for offset.
Business merger under common control realized step-by-step through multiple transactionsThe assets and liabilities of the combined party obtained by the combining party in the combination are measuredbased on the book value of the ultimate controlling party in the consolidated financial statements on the combinationdate. The capital reserve (share capital premium) is adjusted based on the difference between the sum of the bookvalue of the pre-combination investment and the book value of the newly paid consideration on the combinationdate and the book value of the net assets obtained in the combination. The retained earnings are adjusted if thecapital reserve is insufficient for offset. The long-term equity investment held before the acquisition of the combinedparty’s control by the combining party and the profit or loss, other comprehensive incomes and changes in otherowners’ equities that have been recognized during the period from the date of acquisition of the original equity, orthe date of common control of the combining party and the combined entity (which is later) to the combination dateshall offset against the retained opening earnings or current profit or loss respectively during the period ofcomparative statement.
(2) Business merger under different control
In case of business merger under different control, the combination cost is the fair value of assets paid, liabilitiesincurred or assumed and equity securities issued on the acquisition date for acquiring the control over the acquiree.The assets, liabilities and contingent liabilities of the acquiree obtained are recognized as per the fair value on theacquisition date.Where the combination cost is greater than the fair value of identifiable net assets obtained from the acquiree, thedifference shall be recognized as goodwill and subsequently measured by deducting the accumulated depreciationprovision by cost; Where the combination cost is less than the fair value of identifiable net assets obtained from theacquiree, the difference shall be included in current profits and losses after review.Business merger not under common control realized step-by-step through multiple transactionsThe combination cost is the sum of the consideration paid on the acquisition date and the fair value of the acquiree’sequity already held before the acquisition date on the acquisition date. The acquiree’s equity held before theacquisition date shall be remeasured at the fair value of the equity on the acquisition date. The difference betweenthe fair value and its book value shall be included in the investment income for the current period. If the acquiree’sequity held before the acquisition date involves other comprehensive income, changes in other owner’s equitiesshall be transformed into the current profit on the acquisition date, except other comprehensive income generateddue to remeasuring the change in net liabilities or net assets of the defined benefit plan (DBP) by the investee, andother comprehensive income related to a non-trading equity instrument investment originally measured at fair valuewith its changes included in other comprehensive income.
(3) Disposal of related handling charges for business merger
The overhead for the business merger of the combining party, including the expenses for audit, legal services,assessment, and other administrative expenses, shall be recorded in current profits and losses when they occur. Thetransaction expenses of the equity securities or liability securities issued as the consideration for the combinationshall be recorded as the initial recognition amount of the equity securities or liability securities.
7. Criteria for control and preparation method of consolidated financial statements[Document No.15, Article XVI (VI), Criteria for control and preparation method of consolidated financialstatements]
(1) Criteria for control
The scope of consolidated financial statements is determined on the basis of control. Control refers to the power ofthe Company over the investee, with which the Company enjoys variable returns through participating in relatedactivities of the investee and is able to influence its amount of return with the power over the investee. The Companywill carry out re-assessment when changes in relevant facts and circumstances result in changes in elements involvedin the definition of control.When determining whether to include structured entities in the consolidation scope, the Company assesses whetherto control the structured entity by comprehensively taking all facts and circumstances into consideration, includingassessing the purpose and design of the structured entity, identifying the types of variable returns, and assessingwhether it assumes part or all of the variability of the returns through its participation in related activities of theentity.
(2) Preparation methods of consolidated financial statements
The consolidated financial statements are prepared by the Company based on the financial statements of theCompany and its subsidiaries and with other relevant data. The major accounting policies and accounting periodsadopted by the subsidiaries are defined as the same as those of the Company during the preparation of theconsolidated financial statements. The significant transactions and balances between companies are offset.Where a subsidiary or business has been acquired through a business merger involving enterprises under commoncontrol in the reporting period, the subsidiary or business is deemed to be included in the consolidated financialstatements from the date they are controlled by the ultimate controlling party. Their operating results and cash flowsare respectively included in the consolidated income statement and consolidated cash flow statement from the datethey are controlled by the ultimate controlling party.For the subsidiaries and businesses increased in the reporting period due to business merger under different control,their earnings, expenses and profits from the acquisition date to the end of the reporting period are included in theconsolidated profit statement, and their cash flows are included in the consolidated cash flow statement.The portion of shareholders’ equity of subsidiaries not belonging to the Company shall be listed separately underthe item “Shareholders’ Equity” in consolidated balance sheet as minority shareholders’ equity. The portion of netprofit or loss of subsidiaries in current period belonging to minority shareholders’ equity shall be listed separatelyunder the item “Minority Shareholders’ Profit or Loss” in the consolidated income statement. If the loss of asubsidiary borne by minority shareholders exceeds the amount of their shares of owners’ equity in the subsidiary atthe beginning, the balance shall offset the minority equity.
(3) Purchase of minority shareholders’ equity in subsidiaries
The capital reserve (stock premium) in the consolidated balance sheet is adjusted based on the difference betweenthe newly acquired long-term equity investment cost from the purchase of minority equity and the share of net assetsin the subsidiary calculated constantly from the purchase date or combination date as per the newly increasedshareholding proportion, and the difference between the disposal price obtained from the partial disposal of equityinvestment in the subsidiary without losing the right of control and the share of net assets in the subsidiary calculatedcontinuously from the purchase date or combination date corresponding to the disposed long-term equity investment.The retained earnings are adjusted if the capital reserve is insufficient for offset.
(4) Disposal of the loss of control over subsidiaries
If the control power on the original subsidiaries is lost due to the disposal of part of equity investment or otherreasons, the remaining equity shall be recalculated at fair value on the day when the control power is lost. Thebalance from the sum of consideration obtained from the disposal of equity and the fair value of the remainingequity minus the sum of the share of net assets book value and the goodwill of original subsidiaries calculatedcontinuously starting from the purchase date as per the original shareholding ratio shall be included in currentinvestment income at the loss of control.Other comprehensive income in connection with equity investment of the original subsidiaries shall be subject toaccounting method on the same basis as the original subsidiary’s direct disposal of relevant assets or liabilities uponthe loss of control. Other changes in owners’ equity related to the original subsidiary that are accounted by theequity method shall be transferred to the current profits and losses upon the loss of control.
8. Classification of Joint Venture Arrangement and Accounting Treatment Methods for Joint OperationsJoint arrangement refers to an arrangement jointly controlled by two or more participants. Joint arrangements of theCompany include joint operations and joint ventures.
(1) Joint operation
Joint operation refers to the joint arrangement in which the Company enjoys related assets and bears relatedliabilities.The Company recognizes the following items related to the interest share in the joint operation and carries outaccounting according to the ASBE:
A. Recognizing the assets held separately and the assets held jointly as per its shares;B. Recognizing the liabilities borne separately and the liabilities borne jointly according to its shares;C. Recognizing the income generated from the sale of shares enjoyed in the joint operation;D. Recognizing the income generated from the sale of shares enjoyed in the joint operation as per its shares;
E. Recognizing the expenses incurred separately and the expenses arising from joint operation as per its shares.
(2) Joint ventures
Joint venture refers to a joint arrangement in which the Company only has power over the net assets of thearrangement.The Company conducts accounting for the investment of joint ventures according to provisions of the equity methodaccounting for long-term equity investments.
9. Standards for recognition of cash and cash equivalents
Cash refers to the cash on hand and the deposits that are readily available for payment. Cash equivalents refer to theshort-term and highly liquid investments held by the Company that are readily convertible into known amounts ofcash and with low risk in value change.
10. Foreign currency transaction and foreign currency statement translation
(1) Foreign currency transaction
Foreign currency transactions of the Company are converted into the amount in recording currency at the exchangerate determined by systematic and reasonable methods.On the balance sheet date, the foreign currency monetary items are converted at the spot exchange rate on thebalance sheet date. The exchange difference arising from the difference between the spot exchange rate on thebalance sheet date and the spot exchange rate at the time of initial recognition or on the previous balance sheet dateis included in current profits and losses. Foreign currency non-monetary items measured at historical cost are stillconverted at the spot exchange rate on the transaction date. Foreign currency non-monetary items measured at fairvalue are converted at the spot exchange rate on the date when the fair value is determined. The difference betweenthe converted recording currency amount and the original recording currency amount is included in current profitsand losses or other comprehensive income according to the nature of the non-monetary items.
(2) Translation of foreign currency financial statements
At the balance sheet date, when the foreign currency financial statements of overseas subsidiaries are translated, theassets and liabilities of the balance sheet are translated to CNY using the spot exchange rate at the balance sheetdate. Items of the shareholders’ equity, except for “undistributed profits”, are translated at the spot exchange rate atthe dates on which such items arose.The income and expense items in the profit statement are translated at the exchange rate determined by systematicand reasonable methods.
All items in the cash flow statement are translated at the exchange rate determined by systematic and reasonablemethods. As an adjustment item for influence amount of cash, exchange rate movement is independently presentedas “Influence of exchange rate movement to cash and cash equivalent” in cash flow statement.Differences arising from the translation of financial statements are separately presented as “Other comprehensiveincome” in the shareholders’ equity of the balance sheet.During the disposal of overseas operation and upon the loss of the right of control, the conversion difference offoreign currency statements listed under the shareholders’ equity items in the balance sheet and related to theoverseas operation is transferred to the current profits and losses of disposal in full or as per the disposal proportionof the overseas operation.
11. Financial instruments
Financial instruments refer to contracts that form the financial assets of a party, and form financial liabilities orequity instruments of other parties.
(1) Recognition and derecognition of the financial instruments
The Company recognizes a financial asset or financial liability when it becomes a party to the contract of thefinancial instrument.If one of the following conditions is met, the financial assets are terminated:
① The contractual right to receive the cash flow of the financial asset is terminated.
② The financial asset has been transferred and is in accordance with the following conditions for derecognition.If the current obligations of financial liability have been discharged in total or in part, derecognize all or part of it.The Company (the Debtor) signs an agreement with the Creditor to replace the existing financial liabilities withnew financial liabilities; the existing financial liabilities are derecognized and the new financial liabilities arerecognized when the contractual terms of the new financial liabilities and those of the existing financial liabilitiesare different in essence.Financial assets transacted in a conventional way are subject to accounting recognition and derecognition on thetransaction date.
(2) Classification and measurement of financial assets
The Company classifies financial assets into the following three categories according to the business mode offinancial assets management and the contractual cash flow characteristics of financial assets at the time of initialrecognition: financial assets measured at amortized cost, financial assets measured at fair value with their changesincluded in other comprehensive income, and financial assets measured at fair value with their changes included inthe current profits or losses.
Financial assets are measured at fair value upon initial recognition. For financial assets at fair value through profitor loss, relevant transaction costs are directly included in current profits and losses; for other types of financialassets, relevant transaction costs are included in the initially recognized amount. For receivables arising from thesale of products or the provision of services that do not include or take into account significant financing components,the Company takes the consideration amount entitled to receive in expectation as the initially recognized amount.Financial assets measured at amortized costThe Company classifies the financial assets that meet the following conditions but are not designated to be measuredat fair value and with the changes included in current profits or losses as the financial assets measured at amortizedcost:
? The Company manages the financial assets in order to collect contractual cash flows;? The contract terms of the financial assets stipulate that the cash flow generated on a specific date is only
the payment of the principal and the interest based on the outstanding principal amount.After initial recognition, such financial assets are measured at amortized cost using the effective interest method.Any gains or losses on financial assets at amortized cost that are not part of the hedging relationship are charged tothe current profit or loss at derecognition, amortization using the effective interest method, or recognition ofimpairment.Financial assets measured at fair value with their changes included in other comprehensive incomeThe Company classifies financial assets that meet the following conditions and are not designated to be financialassets at fair value with their changes included in current profit or loss as financial assets at fair value with theirchanges included in other comprehensive incomes:
? The Company manages the financial assets in order not only to collect contractual cash flows but also to
sell the financial assets;? The contract terms of the financial assets stipulate that the cash flow generated on a specific date is only
the payment of the principal and the interest based on the outstanding principal amount.After initial recognition, such financial assets are subsequently measured at fair value. Interests, impairment lossesor gains and exchange gains and losses calculated with the effective interest method are included in the currentprofits and losses, and other gains or losses are included in other comprehensive income. When the financial assetsare derecognized, the accumulated profits or losses previously included in other comprehensive income aretransferred out and included in the current profits and losses.Financial assets at fair value through profit or lossExcept for the above-mentioned financial assets measured at amortized cost and fair value through othercomprehensive income, the Company classifies all remaining financial assets as financial assets measured at fairvalue through profit or loss. At the time of initial recognition, in order to eliminate or significantly reduce accounting
mismatch, the Company irrevocably designates some financial assets that should be measured at amortized cost orfair value through other comprehensive income as financial assets measured at fair value through current profitsand losses.After initial recognition, such financial assets are subsequently measured at fair value, and the gains or losses(including interest and dividend income) incurred are included in current profits and losses unless they are part of ahedging relationship.The business model of managing financial assets refers to how the Company manages financial assets to generatecash flows. The business model determines whether the cash flow of financial assets managed by the Companycomes from collecting contractual cash flows, selling financial assets, or both. The Company determines thebusiness model for managing financial assets on the basis of objective facts and specific business objectives formanaging financial assets decided by key management personnel.The Company evaluates the contractual cash flow characteristics of financial assets to determine whether thecontractual cash flow generated by relevant financial assets on a specific date is only the payment of principal andinterest based on the outstanding principal amount. Principal refers to the fair value of financial assets at initialrecognition; interest includes consideration for the time value of money, credit risk associated with the amount ofprincipal outstanding over a specific period, and other underlying borrowing risks, costs and profits. In addition, theCompany evaluates the contract terms that may cause changes in the time distribution or amount of contractual cashflows of financial assets to determine whether they meet the requirements for the above-mentioned contractual cashflow characteristics.Only when the Company changes its business model for managing financial assets, can all affected related financialassets be reclassified on the first day of the first reporting period after the change in business model; otherwise,financial assets shall not be reclassified after initial recognition.Financial assets are measured at fair value upon initial recognition. For financial assets at fair value through profitor loss, relevant transaction costs are directly included in current profits and losses; for other types of financialassets, relevant transaction costs are included in the initially recognized amount. For accounts receivable arisingfrom sales of products or provision of labor services that do not include or consider significant financing components,the consideration amount that the Company is expected to be entitled to receive will be taken as the initiallyrecognized amount.
(3) Classification and measurement of financial liabilities
Financial liabilities of the Company are classified into financial liabilities at fair value through profit or loss andfinancial liabilities measured at amortized cost upon initial recognition. For financial liabilities not classified asthose measured at fair value through profit or loss, relevant transaction costs are included in their initially recognizedamounts.
Financial liabilities at fair value through profit or lossFinancial liabilities at fair value through profit or loss include financial liabilities held for trading and thosedesignated upon initial recognition to be measured at fair value through profit or loss. Such financial liabilities aresubsequently measured at fair value, and the gains or losses arising from changes in fair value as well as dividendsand interest expenses related to such financial liabilities are included in current profits and losses.Financial liabilities measured at amortized costOther financial liabilities are subsequently measured at amortized cost using the effective interest method, and gainsor losses arising from derecognition or amortization are included in current profits and losses.Distinction between financial liabilities and equity instrumentsFinancial liabilities refer to those that meet one of the following conditions:
① Contractual obligations to deliver cash or other financial assets to other parties.
② Contractual obligations to exchange financial assets or financial liabilities with other parties under potentiallyadverse conditions.
③ A non-derivative instrument contract that must or can be settled with the enterprise’s own equity instruments inthe future, and according to which the enterprise will deliver a variable number of its own equity instruments.
④ A derivative contract that must or can be settled with the enterprise’s own equity instruments in the future,except for derivative contracts where a fixed amount of its own equity instruments is exchanged for a fixed amountof cash or other financial assets.An equity instrument refers to a contract that can prove the residual equity in the assets of an enterprise after allliabilities are deducted.If the Company cannot unconditionally avoid performing a contractual obligation by delivering cash or otherfinancial assets, the contractual obligation meets the definition of financial liabilities.If a financial instrument must or can be settled with the Company’s own equity instruments, it is necessary toconsider whether the Company’s own equity instruments used for settlement of such instruments are used assubstitutes for cash or other financial assets or to enable the instrument holder to enjoy residual equity in the assetsof the issuer after deduction of all liabilities. If meets the former condition, the financial instrument should berecognized as financial liabilities; If meets the latter condition, the financial instrument is recognized as an equityinstrument.
(4) Fair value of financial instruments
For the determination methods for the fair value of financial assets and liabilities, refer to 36 “Others” in V“Significant Accounting Policies and Accounting Estimates” of Section X - Financial Report.
(5) Impairment of financial assets
The Company accounts for impairment and recognizes the loss provision for the following items on the basis ofexpected credit losses:
? Financial assets measured at amortized cost;? Receivables and debt investments at fair value through other comprehensive income;? Contract assets as defined in ASBE NO. 14 - Revenue;? Lease receivables;? Financial guarantee contracts (except for those measured at fair value through profit and loss, where the
transfer of financial assets does not meet derecognition conditions or is continuously involved in thetransferred financial assets).Measurement of expected credit lossesExpected credit loss refers to the weighted average of the credit losses of financial instruments that are weighted bythe risk of default. Credit loss refers to the difference between all contractual cash flows receivable according to thecontract and discounted by the Company at the original effective interest rate and all cash flows expected to becollected, that is, the present value of all cash shortages.The Company considers reasonable and reliable information about past events, current situation and forecast of thefuture economic situation, weighs the risk of default, calculates the probability weighted amount of the present valueof the difference between the cash flow receivable from the contract and the cash flow expected to be received, andrecognizes the expected credit loss.The Company measures the expected credit losses of financial instruments at different stages respectively. Forfinancial instruments for which the credit risk has not significantly increased since initial recognition, they areclassified in Stage 1. The company measures the loss provision based on expected credit losses over the next 12months. For financial instruments in which the credit risk has significantly increased since initial recognition but nocredit impairment has occurred, they are classified in Stage 2. The company measures the loss provision based onthe expected credit losses over the entire remaining lifetime of the instrument. For financial instruments in which acredit impairment has occurred since initial recognition, they are classified in Stage 3. The company measures theloss provision based on the expected credit losses over the entire remaining lifetime of the instrument.The Company assumes that the credit risk of the financial instruments with a low credit risk on the balance sheetdate has not increased significantly since the initial recognition, and measures the provision for loss based on theexpected credit loss in the next 12 months.
The expected credit loss during the whole duration refers to the expected credit loss caused by all default eventsthat may occur during the whole expected duration of financial instruments. The expected credit loss in the next 12months refers to that caused by the possible default events of the financial instruments within 12 months after thebalance sheet date (or the expected duration if the expected duration of financial instruments is less than 12 months),which is a part of the expected credit loss in the whole duration.During the measurement of expected credit losses, the maximum term to be considered by the Company is themaximum contract term of the enterprise facing credit risk (including the option to renew the contract).For financial instruments in the first and second stages and with low credit risk, the Company calculates interestincome according to the book balance before deducting impairment provision and the actual interest rate. Forfinancial instruments in the third stage, interest income is calculated according to their book balance minus theamortized cost after impairment provision and the effective interest rate.Notes receivable, accounts receivable and contract assetsFor notes receivable, accounts receivable and contract assets, the Company always measures their loss provisionaccording to the amount equivalent to the expected credit loss in the whole duration no matter whether there is anysignificant financing component.If the expected credit loss of a single financial or contractual asset cannot be evaluated at a reasonable cost, theCompany divides the notes receivable, accounts receivable and contractual assets into portfolios according to thecredit risk characteristics based on the following, and calculates the expected credit loss on the basis of the portfolios:
A. Notes receivable? Notes receivable portfolio 1: bank acceptance bills? Notes receivable portfolio 2: commercial acceptance billsB. Accounts receivable? Aging portfolioC. Contract assets? Aging portfolioThe Company calculates the expected credit loss of the notes receivable and contract assets divided into portfoliosby referring to the historical credit loss experience, combining the current situation and the forecast of the futureeconomic situation, and based on the default risk exposure and the expected credit loss rate for the whole duration.For accounts receivable divided into portfolios, the Company prepares a comparison table of account receivableaging/overdue days and expected credit loss rate for the whole duration with a reference to historical credit lossexperience and in combination with the current situation and forecast of the future economic situation, so as tocalculate the expected credit loss. The aging of accounts receivable is calculated from the date of recognition, and
the number of days overdue from the credit expiration date.Other receivablesThe Company divides other receivables into several portfolios according to the credit risk characteristics based onthe following, and calculates the expected credit loss according to the portfolios:
? Portfolio 1 of other receivables: portfolio of margin, deposit and reserve fund? Portfolio 2 of other receivables: aging portfolio
For other receivables divided into portfolios, the Company calculates the expected credit loss through default riskexposure and expected credit loss rate in the next 12 months or the whole duration. The aging of other receivablesdivided into portfolios by aging is calculated from the date of recognition.Long-term receivablesThe Company’s long-term receivables include the receivables from sales of goods by installments.The Company divides the long-term receivables into several portfolios according to the credit risk characteristicsbased on the following, and calculates the expected credit loss on the basis of the portfolios:
Finance lease receivables
? Long-term receivables portfolio 1: receivables from sales of goods by installments? Long-term receivables portfolio 2: other receivables
The Company calculates the expected credit loss of the receivables from sales of goods by installments based onthe default risk exposure and the expected credit loss rate for the whole duration with a reference to the historicalcredit loss experience, the current situation and the forecast of the future economic situation.The Company calculates the expected credit loss of other receivables and long-term receivables divided intoportfolios other than receivables from sales of goods by installments according to the default risk exposure and theexpected credit loss rate in the next 12 months or the whole duration.Debt investment and other debt investmentsFor debt investments and other debt investments, the Company calculates expected credit losses according to thenature of the investment, various types of counterparties and risk exposures, default risk exposures and expectedcredit loss rates in the next 12 months or throughout the duration.Assessment of significant increase in credit riskThe Company compares the risk of default of financial instruments on the balance sheet date with the risk of defaulton the initial recognition date so as to determine the relative change in the default risk of financial instruments in
the expected duration and evaluate whether the credit risk of financial instruments has increased significantly sincethe initial recognition.In determining whether the credit risk has increased significantly since initial recognition, the Company considersreasonable and well-founded information (including forward-looking information) that can be obtained withoutunnecessary additional costs or efforts. The information to be considered by the Company is as follows:
? Failure of the debtor to pay the principal and interest on the due date of the contract;? Serious deterioration in the external or internal credit rating (if any) of the financial instrument that hasoccurred or is expected;? Serious deterioration of the debtor’s operating results that has occurred or is expected;? Changes in the technical, market, economic or legal environment that has occurred or is expected andtheir potential material adverse effect on the repayment ability of the debtor to the Company.According to the nature of financial instruments, the Company evaluates whether the credit risk has increasedsignificantly on the basis of individual financial instruments or portfolios of financial instruments. When evaluatingon the basis of portfolios of financial instruments, the Company may classify the financial instruments based oncommon credit risk characteristics, such as overdue information and credit risk rating.If it is overdue for more than 30 days, the Company determines that the credit risk of financial instruments hasincreased significantly.Credit-impaired financial assetsThe Company evaluates on the balance sheet date whether credit impairment has occurred on the financial assetsmeasured at amortized cost and on the creditor’s debt investment measured at fair value through othercomprehensive income. A financial asset becomes credit-impaired when one or more events that have an adverseimpact on its expected future cash flows occur. Evidence of credit impairment of financial assets includes thefollowing observable information:
? The issuer or the debtor is involved in serious financial difficulties;? The debtor breaches the contract, such as default on or overdue repayment of interest or principal;? The Company, for economic or contractual reasons relating to the debtor’s financial difficulty, grants the
debtor concessions that would not have been made in any other circumstances.? There is a great possibility of bankruptcy or other financial restructuring of the debtor;? The financial difficulties of the issuer or debtor result in the disappearance of the active market of suchfinancial assets.Presentation of provision for expected credit lossIn order to reflect the changes in the credit risk of financial instruments since the initial recognition, the Companyremeasures the expected credit loss on each balance sheet date; the increased or reversed amount of the lossprovision arising therefrom shall be included in the current profits and losses as impairment losses or gains. The
loss provision of the financial assets measured at amortized cost is used to offset their book value presented in thebalance sheet. For the debt investment measured at fair value with its changes included in other comprehensiveincome, the Company recognizes its loss provision in other comprehensive income, which will not offset the bookvalue of the financial assets.Write-offThe Company writes down the book balance of the financial assets when it no longer reasonably expects that thecontractual cash flow of the financial asset can be recovered in whole or in part. Such write-down constitutes thederecognition of related financial assets. This usually occurs when the Company determines that the debtor has noassets or sources of income that can generate sufficient cash flows to repay the amount to be written down. However,the written-down financial assets may still be affected by the execution activities according to the Company’sprocedures for recovering due amounts.Any financial assets that have been previously written off and subsequently recovered are recognized as a reversalof impairment loss and recorded in the current period’s income statement.
(6) Transfer of financial assets
Transfer of financial assets refers to the assignment or delivery of financial assets to the party (transferee) other thanthe issuer of such financial assets.The financial asset is derecognized if the Company has transferred substantially all the risks and rewards ofownership of a financial asset to the transferee. The financial asset is not derecognized if the Company has retainedsubstantially all the risks and rewards of ownership of a financial asset.If the Company neither transfers nor retains almost all risks and rewards of ownership of a financial asset, it shalldeal with them as follows: if the control over the financial asset is waived, the financial asset shall be derecognizedand the assets and liabilities incurred shall be recognized; if the control over the financial asset is not waived, therelevant financial asset shall be recognized to the extent that it continues to be involved in the transferred financialasset, and the relevant liabilities shall be recognized accordingly.
(7) Offset of financial assets and financial liabilities
Financial assets and financial liabilities are presented in the balance sheet with the amount after offsetting each otherwhen the Company has a legal right to offset the recognized financial assets and financial liabilities and the legalright can be exercised currently, and when the Company intends either to settle on a net basis, or to realize thefinancial assets and pay off the financial liabilities simultaneously. In other cases, financial assets and financialliabilities are presented separately in the balance sheet and are not offset against each other.
12. Notes receivable
Refer to 11 “Financial instruments” in V “Significant Accounting Policies and Accounting Estimates” of SectionX - Financial Report.
13. Accounts receivable
Refer to 11 “Financial instruments” in V “Significant Accounting Policies and Accounting Estimates” of SectionX - Financial Report.
14. Receivables financing
Refer to 11 “Financial instruments” in V “Significant Accounting Policies and Accounting Estimates” of SectionX - Financial Report.
15. Other receivables
For determination methods and accounting methods of expected credit losses of other receivables,Refer to 11 “Financial instruments” in V “Significant Accounting Policies and Accounting Estimates” of SectionX - Financial Report.
16. Contract assets
The Company presents the contract assets or contract liabilities in the balance sheet according to the relationshipbetween the performance obligations and the customer’s payment. The Company presents the contract assets andliabilities under the same contract on a net basis after offsetting each other.A contractual asset refers to a right to receive consideration for goods or services that have been transferred to acustomer, and the right depends on factors other than the passage of time.For the determination method and accounting method of the Company for the expected credit loss of the contractassets, refer to 11 “Financial instruments” in V “Significant Accounting Policies and Accounting Estimates” ofSection X - Financial Report.
17. Inventories
(1) Classification of inventories
The inventories of the Company are divided into raw materials, self-made semi-finished products and goods inprocess, goods in stock, revolving materials, etc.
(2) Valuation method for inventories sent out
The Company’s inventories are accounted for at the planned cost when acquired. The difference between theplanned cost and the actual cost is accounted for through the cost variance account, and the cost variance that shouldbe borne by the inventories sent out is carried forward on schedule to adjust the planned cost to the actual cost.
(3) Basis and method for provision of inventory depreciation reserves
On the balance sheet date, inventories are measured at the lower of cost and net realizable value. When the netrealizable value of the inventories is lower than their cost, a provision for inventory depreciation reserves is made.Net realizable value refers to the difference of the estimated sale price of inventory less the cost to estimated beincurred until completion, estimated sales expenses and related taxes. The net realizable value of inventories isdetermined based on the unambiguous evidence obtained as well as the consideration of the purpose of holdinginventories and the impact of events after the balance sheet date.The Company makes provision for inventory depreciation reserves on an individual inventory item basis. Provisionfor inventory depreciation reserves is made by inventory category for inventories with large quantities and low unitprices.
(4) Inventory system
The Company adopts the perpetual inventory system.
(5) Amortization method of low-value consumables and packaging materials
Low-value consumables and packaging materials of the Company are amortized by one-off write-off method whenacquired.
18. Long-term receivables
Refer to 11 “Financial instruments” in V “Significant Accounting Policies and Accounting Estimates” of SectionX - Financial Report.
19. Long-term equity investments
Long-term equity investments include equity investments to subsidiaries, joint ventures and associated enterprises.The investee which may be subject to significant influence of the Company is an associated enterprise of theCompany.
(1) Recognition of initial investment cost
Long-term equity investments acquired from the business combination: For the long-term equity investmentacquired from the business combination under common control, the investment cost refers to the share of the bookvalue of the owner’s equity of the combined party in the consolidated financial statements of the ultimate controllingparty on the combination date; for the long-term equity investment acquired from the business combination underdifferent control, the investment cost refers to the combination cost.For long-term equity investments acquired by other methods: For those acquired with cash payment, the actualpurchase price shall be recognized as the initial investment cost; for those acquired through the issuance of equitysecurities, the fair value of issued equity securities shall be recognized as the initial investment cost.
(2) Subsequent measurement and recognition of profit or loss
Investments to subsidiaries are accounted for with the cost method unless the investment meets the conditions forheld-for-sale; investments to associated enterprises and joint ventures are accounted for with the equity method.For long-term equity investments calculated by cost method, except for the declared but not yet released cashdividends or profits included in the actual price or consideration paid when the investment is acquired, thedistributed cash dividends or profits declared by the investee shall be recognized as investment income and includedin current profits and losses.For the long-term equity investments accounted for with the equity method, the investment cost is not adjusted ifthe initial investment cost exceeds the share of the fair value of the investee’s identifiable net assets at the time ofthe investment; the book value of the long-term equity investment is adjusted and the difference is included in thecurrent profits and losses if the initial investment cost is less than the share of fair value of the investee’s identifiablenet assets at the time of the investment.For accounting with the equity method, the investment income and other comprehensive income shall be recognizedrespectively according to the share of the net profits and losses and other comprehensive income realized by theinvestee that shall be enjoyed or shared. Meanwhile, the book value of the long-term equity investments shall beadjusted. The part of due share shall be calculated according to the distributed profit or cash dividend declared bythe investee, and the book value of the long-term equity investment shall be reduced accordingly. For other changesin owners’ equity of the investee except net profit and loss, other comprehensive income and profit distribution, thebook value of long-term equity investment shall be adjusted and included in capital reserve (other capital reserve).The Company recognizes its share of the investee’s net profits or losses based on the fair values of the investee’sindividual separately identifiable assets at the time of acquisition, after making appropriate adjustments thereto inconformity with the accounting policies and accounting periods of the Company.The sum of the fair value of the original equity and the new investment cost is taken as the initial investment costcalculated with the equity method on the date of conversion if it is possible to exert significant influence on orimplement joint control but not constitute control over the investee due to additional investment or other reasons.The cumulative changes in fair value originally included in other comprehensive income related to the originalequity are transferred to retained earnings when the equity method is adopted if the original equity is classified as anon-trading equity instrument measured at fair value through other comprehensive income.In case the Company loses joint control of or the significant influence on the investee due to the disposal of part ofthe equity investment, the residual equity after the disposal is accounted for in accordance with the AccountingStandards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments on the date oflosing the joint control or significant influence, and the difference between the fair value and the book value isincluded in the current profits and losses. Other comprehensive income recognized from the original equityinvestment accounted with the equity method shall be accounted for on the same basis as the direct disposal of
relevant assets or liabilities of the investee when the equity method is terminated. Other changes in owner’s equityrelated to the original equity investment shall be transferred into current profit and loss.In case the Company loses the right of control over the investee due to the disposal of partial equity investment orother reasons, the equity method is applied, and it is deemed that the residual equity is adjusted with the equitymethod from the time of acquisition if the residual equity after disposal can exert joint control over or significantinfluence on the investee; the accounting is carried out according to the Accounting Standards for BusinessEnterprises No. 22 - Recognition and Measurement of Financial Instruments, and the difference between the fairvalue and the book value on the date of losing control is included in the current profits and losses if the residualequity after disposal cannot exert joint control over or significant influence on the investee.If the shareholding ratio of the Company decreases due to capital increase by other investors, resulting in loss ofcontrol but joint control over or significant influence on the investee, the Company’s share of net assets increaseddue to capital increase and share expansion of the investee shall be recognized according to the new shareholdingratio, and the difference from the original book value of long-term equity investment corresponding to the decreasein shareholding ratio that shall be carried forward shall be included in current profits and losses. Then, adjustmentsare made based on the new shareholding ratio with the equity method as if it had been used since the acquisition ofthe investment.Unrealized gains and losses from internal transactions between the Company and its associated enterprises and jointventures that are attributable to the Company are calculated based on the shareholding ratio, and investment profitsand losses are recognized based on the offsetting of that portion. However, the unrealized loss from internaltransactions incurred between the Company and its investee is not offset if it belongs to impairment loss from assetstransferred.
(3) Basis for determining joint control and significant influence on the investee
Joint control refers to the control over certain arrangement under related agreements, and related activities of thearrangement can only be determined with the unanimous consent of the parties sharing the control. During thejudgment of joint control, it is required to determine whether the arrangement is controlled collectively by allparticipants or combinations of participants, and then determine whether decisions on activities related to thearrangement must be made with the unanimous consent of those participants who collectively control thearrangement. It is deemed that all participants or a group of participants collectively control the arrangement ifrelated activities of an arrangement can be decided only with the concerted action of all participants or a group ofparticipants. If there are two or more combinations of parties that can collectively control an arrangement, thissituation does not constitute joint control. For the determination of whether there is joint control, protective rightsare not taken into account.Significant influence refers to the power of the investor to participate in making decisions on the financial andoperating policies of the investee, but cannot control or jointly control with other parties over the preparation ofthese policies. The possibility of exerting significant influence on the investee is determined by considering the
influence of the voting shares of the investee directly or indirectly held by the investor and the influence when it isassumed that the potential voting rights executable for the current period held by the investor and other parties areconverted into the equity of the investee, including the influence of the warrants, stock options and corporate bondswhich can be converted in the current period issued by the investee.It is generally considered that the Company has significant influence on the investee when the Company directlyholds more than 20% (inclusive) but less than 50% of the voting shares of the investee or holds indirectly throughsubsidiaries, unless there is clear evidence indicating that it cannot participate in the production and operationdecisions of the investee under such circumstances, in which case it has no significant influence. It is generally notconsidered that the Company has significant influence on the investee when the Company owns less than 20%(exclusive) of the voting shares of the investee, unless there is clear evidence indicating that it can participate in theproduction and operation decisions of the investee under such circumstances, in which case it has significantinfluence.
(4) Impairment test method and impairment provision methods
For investments to subsidiaries, associated enterprises and joint ventures, the method of provision for assetimpairment is described in 36 “Others” in V “Significant Accounting Policies and Accounting Estimates” of SectionX - Financial Report.
20. Investment properties
Measurement mode of investment properties: cost methodDepreciation or amortization methodInvestment properties refer to the properties held for earning rent or capital appreciation, or both. Investmentproperties of the Company include the land use rights that have already been rented, the land use rights held fortransfer after appreciation, and the buildings that have been rented.Investment properties of the Company are initially measured as per the price upon acquisition and depreciated oramortized on schedule as per relevant provisions on fixed assets or intangible assets.For the investment real estate which is subsequently measured with the cost mode, the method of drawing assetimpairment is described in 36 “Others” in V “Significant Accounting Policies and Accounting Estimates” of SectionX - Financial Report.The disposal income from the sale, transfer, retirement or damage of investment properties shall be included incurrent profits and losses after deducting its book value and relevant taxes.
21. Fixed assets
(1) Recognition conditions
Fixed assets of the Company refer to the tangible assets held for the production of goods, rendering of services,the renting or operation and management, with a service life exceeding one accounting year.
The fixed assets can be recognized only when the economic benefits related to such fixed assets are likely to flowinto the enterprise and the cost of such fixed assets can be measured reliably.Fixed assets of the Company are initially measured at the actual cost upon acquisition.Subsequent expenditures related to fixed assets are included in the cost of fixed assets when the related economicbenefits are likely to flow into the Company and the costs can be reliably measured. The daily repair costs of fixedassets that do not meet the conditions for the subsequent expenditure of fixed assets capitalization are included inthe current profits and losses or the costs of relevant assets based on the beneficiaries at the time of occurrence.For the replaced part, its book value is derecognized.
(2) Depreciation method
| Category | Depreciation Method | Depreciation Period | Residual Rate | Annual Depreciation Rate |
| Houses and Buildings | Straight-line method | 20 years | 3-5 | 4.85-4.75 |
| Machinery equipment | Straight-line method | 10 years | 0-3 | 10.00-9.70 |
| Transportation equipment | Straight-line method | 4-10 years | 0-5 | 25.00-9.50 |
| Electronic equipment | Straight-line method | 3 years | 0-5 | 33.33-31.67 |
| Office equipment | Straight-line method | 5 years | 3-5 | 19.40-19.00 |
| Others | Straight-line method | 5 years | 0-5 | 20.00-19.00 |
The Company uses the straight-line method for depreciation. The depreciation of fixed assets starts when they reachthe expected serviceable condition and stops when they are derecognized or classified as non-current assets held forsale. Without taking into account the provision for impairment, the Company determines the annual depreciationrate of various fixed assets according to the category, estimated service life and estimated residual value of fixedassets.Among them, for fixed assets with provision for impairment, the accumulated amount of provision for impairmentshall also be deducted to calculate and determine the depreciation rate.
(3) For the impairment test method and provision for impairment of fixed assets, please refer to 36 Othersin V Significant accounting policies and accounting estimates of Section X - Financial report.
(4) The Company reviews the service life, expected net residual value and depreciation method of fixedassets at the end of each year.The service life of fixed assets shall be adjusted if the expected service life is different from the original estimate,and the estimated net residual value shall be adjusted if the estimated net residual value is different from the originalestimate.
(5) Disposal of fixed assets
If a fixed asset is disposed of or if no economic benefit will be obtained from the use or disposal, the recognition ofsuch fixed asset is terminated. The disposal income from the sale, transfer, retirement or damage of fixed assetsshall be included in current profits and losses after deducting its book value and relevant taxes.
22. Construction in progress
The cost of construction in progress of the Company is recognized according to the actual construction expenditures,including various necessary construction expenditures incurred during the construction period, borrowing costs thatshall be capitalized before the construction reaches the expected condition for its intended use, and other relevantexpenses.Construction in progress is transferred to fixed assets when it is ready for its intended use.For the method of provision for asset impairment of construction in progress, refer to 36 “Others” in V “SignificantAccounting Policies and Accounting Estimates” of Section X - Financial Report.
23. Intangible Assets
(1) Service life and its determination basis, estimate, amortization method or review procedureIntangible assets of the Company include land use rights, software, non-patented technologies, etc.Intangible assets are initially measured at cost and their service life is analyzed and judged at the time of acquisition.Where the service life is limited, the intangible asset is amortized over its expected service life, from the time it isavailable, with an amortization method that reflects the expected realization of the economic benefits associatedwith the asset. The straight-line method is adopted for amortization if the expected realization mode cannot bedetermined reliably. Intangible assets with uncertain service life are not amortized.The amortization method for intangible assets with limited service life is as follows:
| Category | Service Life | Amortization Method | Remarks |
| Land use right | 50 years | Straight-line method | |
| Software | 2-10 years | Straight-line method | |
| Non-patented technology | 5-10 years | Straight-line method |
The Company reviews the service life and amortization method of intangible assets with limited service life at theend of each year. If it is different from the previous estimate, the original estimate shall be adjusted and treated as achange in accounting estimates.The book value of an intangible asset is transferred into the current profits and losses in full if it is expected that theasset cannot bring economic benefits to the enterprise in the future on the balance sheet date.
For the method of provision for asset impairment of the intangible assets, refer to 36 “Others” in V “SignificantAccounting Policies and Accounting Estimates” of Section X - Financial Report.
(2) Scope of aggregation of expenditures on research and development and related accounting treatmentmethodsThe Company’s research and development expenditures are directly related to the Company’s research anddevelopment activities, including research and development labor costs, test expenses, depreciation costs, designfees, and trial production fees.The Company divides the expenditures of internal research and development projects into expenditures at theresearch stage and expenditures at the development stage.The expenditures at the research stage are included in current profits and losses when incurred.Expenditures at the development stage can be capitalized only when the following conditions are metsimultaneously, namely, it is technically feasible to complete the intangible assets so that they can be used or sold;there is an intention to complete the intangible assets and use or sell them; the ways for intangible assets to generateeconomic benefits include proving that there is a market for the products produced by using the intangible assets orthe intangible assets themselves, and proving their usefulness if they are to be used internally; there are sufficienttechnical, financial and other resources to support the development of the intangible assets and the ability to use orsell the intangible assets; the expenditure at the development stage of the intangible assets can be measured reliably.The development expenditures failing to meet the above conditions are included in current profits and losses whenthey occur.The R&D projects of the Company enter the development stage after project approval by meeting the aboveconditions and passing the technical feasibility and economic feasibility study.The capitalized expenditures at the development stage are presented as development expenditures on the balancesheet and are transferred into intangible assets from the date when the project realizes its intended use.The capitalization conditions of specific research and development projects are as follows: The Company’s researchand development project ends with product planning, and the division point of the research and development stageslies in the fact that the overall plan of the development project is prepared and adopted through deliberation anddecision-making on the product project review meeting (that is, project initiation). The expenses incurred in theplanning stage before the project initiation are directly included in the current profits and losses, and those incurredafter the project initiation are included in expenditures in the development stage.
24. Impairment of long-term assets
The asset impairment of long-term equity investment to subsidiaries, associated enterprises and joint ventures,investment real estate subsequently measured by the cost model, fixed assets, projects under construction, right-of-
use assets, intangible assets, etc. (except for inventories, deferred income tax assets and financial assets) isrecognized with the following methods:
The Company judges whether there is a sign of impairment to assets on the balance sheet date. If such a sign exists,the Company estimates the recoverable amount and conducts the impairment test. Impairment tests shall be carriedout every year on goodwill resulting from business mergers, intangible assets with uncertain service life andintangible assets that are not available no matter whether there is any sign of impairment.The recoverable amount is the net amount of the fair value of the assets after deducting the disposal expenses or thepresent value of the expected future cash flow of the assets, whichever is higher. The Company estimates therecoverable amount based on a single asset. If it is difficult to estimate the recoverable amount of a single asset, therecoverable amount of the asset group shall be determined based on the asset group to which the asset belongs. Anasset group is determined based on the fact that the main cash inflows generated by the asset group are independentof the cash inflows of other assets or asset groups.When the recoverable amount of an asset or asset group is lower than its book value, the Company writes down itsbook value to the recoverable amount, and the write-down amount is included in current profits and losses, and thecorresponding impairment provision of assets is made at the same time.For the impairment test of goodwill, the book value of goodwill resulting from business merger is amortized torelevant asset groups with reasonable methods from the acquisition date, or amortized to relevant asset groupportfolio if it is difficult to amortize it to relevant asset groups. Relevant asset groups or portfolios of asset groupsare those that can benefit from the synergies of business merger and are not greater than the reporting segmentdetermined by the Company.If there is any sign of impairment in the asset group or portfolio of asset groups related to goodwill during theimpairment test, the impairment test shall be carried out on the asset group or portfolio of asset groups not includinggoodwill, and the recoverable amount shall be calculated to determine the corresponding impairment loss. Then, animpairment test is carried out on the asset group or portfolio of asset groups including goodwill to compare its bookvalue and recoverable amount, and determine the impairment loss of goodwill if the recoverable amount is lowerthan the book value.Once the impairment loss of assets is determined, it will never be reversed in subsequent accounting periods.
25. Long-term deferred expenses
Long-term unamortized expenses of the Company shall be valued as per actual cost and averagely amortized as perthe expected benefit period. The amortized value of the long-term deferred expenses that cannot benefit the futureaccounting period is included in the current profits and losses.
26. Contract liabilities
The Company presents the contract assets or contract liabilities in the balance sheet according to the relationshipbetween the performance obligations and the customer’s payment. The Company presents the contract assets andliabilities under the same contract on a net basis after offsetting each other.Contractual liability refers to an obligation to transfer goods or services to a customer for which customerconsideration has been received or receivable, such as payments received by an enterprise prior to the transfer ofpromised goods or services.
27. Employee compensation
(1) Accounting method of short-term compensation
Employee compensation refers to various forms of remuneration or compensation given by enterprises to obtainservices provided by employees or to terminate labor relations. Employee compensation includes short-termcompensation, post-employment benefits, dismissal benefits and other long-term employee benefits. The benefitsprovided by the enterprise to employees’ spouses, children, dependents, survivors of deceased employees and otherbeneficiaries also belong to employee compensation.According to liquidity, employee compensation is listed in the “employee compensation payable” and “long-termemployee compensation payable” items of the balance sheet.Short-term compensationIn the accounting period when employees provide services, the Company recognizes the employee wages, bonuses,social security contributions according to regulations such as medical insurance, work injury insurance andmaternity insurance as well as housing funds as liability, and includes them in current profits and losses or relevantasset costs.
(2) Accounting method of post-employment benefits
The post-employment benefit plan includes defined contribution plan and defined benefit plan. The definedcontribution plan refers to the post-employment benefit plan that the enterprise will no longer bear the paymentobligation after paying fixed fees to independent funds. The defined benefit plan refers to the post-employmentbenefit plan other than the defined contribution plan.Defined contribution planThe defined contribution plan includes basic pension insurance, unemployment insurance and enterprise annuityplan.In the accounting period when employees provide services, the Company recognizes the amount payable to adefined contribution plan as a liability, and includes it in the current profit or loss or relevant asset cost.Defined benefit plan
The defined benefit plan shows that an actuarial valuation is performed by an independent actuary on the annualbalance sheet date, and the benefit cost is determined with the expected cumulative benefit unit method. TheCompany recognizes the following components of employee benefits cost arising from defined benefit plans:
① Service costs include current service costs, past service costs and settlement gains or losses. Among them, thecurrent service cost refers to the increase in the present value of the defined benefit plan obligations due to theprovision of services by employees in the current period; the past service cost refers to the increase or decrease inthe present value of the defined benefit plan obligations related to the employee services in the previous period dueto the modification of the defined benefit plan.
② Net interest on net liabilities or assets of defined benefit plans, including interest income of plan assets, interestexpense of defined benefit plan obligations and interest affected by asset ceiling.
③ Changes arising from remeasurement of net liabilities or net assets of defined benefit plans.The Company includes the above items ① and ② in the current profits and losses, unless other accountingstandards require or allow the cost of employee benefits to be included in the cost of assets; item ③ is included inother comprehensive income and will not be reversed back to profit or loss in subsequent accounting periods, andthe part originally included in other comprehensive income within the equity scope is carried forward toundistributed profit when the original defined benefit plan terminates.
(3) Accounting method of dismissal welfare
When the Company provides dismissal welfare to employees, the liabilities of the employee compensation arisingfrom dismissal welfare are recognized at the earlier of the following two dates and included in the current profit orloss: the Company cannot unilaterally provide the dismissal welfare provided due to the labor relation terminationplan or the layoff suggestions; the Company recognizes the costs or expenses related to the restructuring oftermination benefits payment.If the early retirement plan is implemented, the economic compensation before the official retirement date belongsto dismissal welfare. The wages proposed to be paid to the early retired employee and the social insurance premiumsto be paid are included in the current profits and losses in a lump sum from the date when the employee stopsproviding services to the normal retirement date. Economic compensation after the official retirement date (such asnormal pension) belongs to post-employment benefits.
(4) Accounting method of other long-term employee benefits
Other long-term employee benefits provided by the Company to the employees satisfying the conditions forclassifying as a defined contributions plan are accounted for in accordance with the above requirements relating todefined contribution plan. The benefits that meet the requirements of the defined benefit plan are treated inaccordance with the provisions of the plan. However, the “changes caused by remeasurement of net liabilities or net
assets of the defined benefit plan” in relevant employee compensation costs are included in current profits and lossesor relevant asset costs.
28. Provisions
The Company recognizes the obligations related to contingencies as estimated liabilities if they meet all of thefollowing conditions:
(1) The obligation is the current obligation of the Company;
(2) Performance of this obligation will probably cause an outflow of economic interest of the Company;
(3) The amount of such obligation can be measured reliably.
Expected liabilities are initially measured at the optimal estimate required to perform the relevant current obligation,in comprehensive consideration of the risks, uncertainty, time value of money, and other factors pertinent to theContingencies. The best estimate is determined by discounting the relevant future cash outflow if the time value ofmoney has a significant impact. At the balance sheet date, the book value of the estimated liabilities is reviewed andadjusted by the Company to reflect the current best estimate.If all or part of the expenditures necessary for clearing off the recognized provisions are expected to be compensatedby a third party or any other party, the amount of compensation shall be recognized as assets separately only whenit is basically sure that the amount can be obtained. The recognized amount of compensation shall not exceed thebook value of recognized liabilities.
29. Share-based payment
(1) Types of share-based payment
The share-based payments of the Company are divided into equity-settled share-based payment and cash-settledshare-based payment.
(2) Determination methods for fair value of equity instruments
The Company recognizes the fair value of equity instruments such as granted options with an active marketaccording to the quotation of the active market. The Company recognizes the fair value of equity instruments suchas granted options without active market by using the option pricing model. The following factors are consideredin the selected option pricing model: A. exercise price of options; B. validity period of options; C. current price ofunderlying shares; D. expected fluctuation ratio of stock price; E. expected dividends of shares; F. risk-free interestrate within the validity period of options.
(3) Basis for determining the optimal estimate of vested equity instruments
The Company makes the optimal estimate based on the latest follow-up information such as changes in the numberof vesting employees and corrects the expected number of vested equity instruments on each balance sheet datewithin the vesting period. On the vesting date, the final estimated number of vested equity instruments shall beconsistent with the number of actual vested equity instruments.
(4) Accounting treatment related to implementation, modification and termination of share-based payment planShare-based payments settled by equity are measured at the fair value of the equity instruments granted to employees.Where the equity instrument can be vested immediately upon being granted, the share-based payment is includedin relevant costs or expenses at the fair value of equity instrument on the granting date and the capital reserve shallbe increased accordingly. Where the equity instrument can not be vested until the vesting period comes to an endor until the specified performance conditions are met, at each balance sheet date within the vesting period, theservices obtained in the current period are, based on the optimal estimate of the number of vested equity instruments,included in relevant costs or expenses and capital reserve at the fair value specified on the granting date of equityinstruments. After the vesting date, it shall make no adjustment to the relevant costs or expenses as well as the totalamount of the owner’s equities which have been confirmed.Share-based payments settled by cash are measured at the fair value of liabilities recognized based on shares orother equity instruments assumed by the Company. Where the equity instrument can be vested immediately uponbeing granted, the payment shall be included in the relevant costs or expenses at the fair value of the liabilitiesassumed by the Company on the granting date, and the liabilities shall be increased accordingly. Where the share-based payment settled by cash cannot be vested until the vesting period comes to an end or until the specifiedperformance conditions are met, on each balance sheet date within the vesting period, the services acquired incurrent period are, based on the optimal estimation of the vesting right, included in costs or expenses andcorresponding liabilities at the fair value of the liabilities assumed by the Company. On each balance sheet date andthe settlement date prior to the settlement of the relevant liabilities, the fair value of the liabilities shall be re-measured, with its changes included in the current profits and losses.When the Company modifies the share-based payment plan, the increase in services obtained shall be recognizedbased on the increase (if any) in the fair value of equity instruments; if the quantity of granted equity instruments isincreased, the fair value of the increased equity instruments shall be recognized accordingly as the increase in theservices obtained. The increase in the fair value of equity instruments refers to the difference between the fair valuesof equity instruments before and after modification on the modification date. If the total fair value of share-basedpayment is reduced in the modification or the terms and conditions of the share-based payment plan are modifiedin other ways unfavorable to employees, the accounting treatment on acquired services shall continue as if thechange has never occurred, unless the Company has canceled part or all of the granted equity instruments.If, during the vesting period, the granted instruments are canceled (except for those canceled because of failure tomeet the non-market conditions of the vesting conditions), the Company shall accelerate the vesting of the granted
equity instruments, and immediately include the amount to be recognized in the remaining vesting period in thecurrent profit and loss, and determine the capital reserve in the meantime. In the event that the employees or otherparties can choose to meet the non-vesting conditions but fail to meet such conditions during the vesting period, theCompany shall treat it as the cancellation of granted equity instruments.
(5) Restricted shares
The Company grants restricted shares to the incentive objects in the equity incentive plan, and the incentive objectssubscribe for the shares preferentially. If the unlocking conditions stipulated in the equity incentive plan are not metsubsequently, the Company will repurchase the shares at the price agreed in advance. If the restricted shares issuedto employees have completed capital increase procedures such as registration as specified, the Company shalldetermine the share capital and capital reserve (share premium) according to the share subscription money receivedfrom employees on the granting date, and determine the treasury shares and other payables in terms of the repurchaseobligation.
30. Income
Accounting policies adopted for recognition and measurement of income disclosed by business type
(1) General principles
The Company recognizes its income when it has fulfilled its performance obligations of the contract, i.e., thecustomer has obtained the control rights of the relevant goods or services.If the contract contains two or more performance obligations, the Company shall, at the beginning date of thecontract, apportion the transaction price to each performance obligation according to the relative proportion of theindividual selling price of the goods or services promised by each performance obligation, and measure theincome according to the transaction price apportioned to each performance obligation.In case one of the following conditions is met, the Company will perform the performance obligations within aperiod of time. Otherwise, it will perform the performance obligations at a time point:
① The customer obtains and consumes the economic benefits brought by the performance of the contract by theCompany at the same time.
② The customer can control the goods under construction during the Company’s performance;
③ The goods produced during the performance of the Company are irreplaceable, and the Company has beenentitled to receive payment for the performance accumulated so far throughout the term of the contract.For the performance obligations performed within a certain period of time, the Company shall determine the incomewithin that period according to the performance progress. If the performance progress cannot be reasonablyconfirmed, and the costs incurred by the Company can be expected to be compensated, the incomes shall berecognized according to the amount of costs incurred until the performance progress can be reasonably confirmed.For performance obligations performed at a certain time point, the Company shall confirm the income at the timepoint when the customer gains control rights of the relevant goods or services. In determining whether a customer
has obtained the control rights of the goods or services, the Company shall take the following signs intoconsideration:
① The Company enjoys the right to the current collection, i.e., the customer has the obligation to payimmediately with respect to the goods;
② The Company has transferred the legal ownership of the goods to the customer, i.e., the customer owns thelegal ownership of the goods;
③ The Company has transferred the goods to the customer in kind, i.e., the customer has possessed the goods;
④ The Company has transferred the major risks and remuneration on the ownership of the goods to the customer,i.e., the customer has obtained the major risks and remuneration on the ownership of the goods.
⑤ The customer has accepted such goods or services.
⑥ Other signs indicate that the customer has obtained the right to control the goods.The right of the Company to receive the consideration due to the transfer of goods or services to the customer (andthe right depends on factors other than the passage of time) is taken as a contractual asset, and the provision forimpairment of the contractual assets are based on the expected credit losses (please refer to 11 “FinancialInstruments” in V “Significant Accounting Policies and Accounting Estimates” of Section X - Financial Report).The Company’s unconditional (subject only to the passage of time) right to collect consideration from customersshall be presented as receivables. The Company’s obligations to transfer goods or services to the customer due tocustomer consideration received or receivable shall be defined as contract liabilities.Contract assets and contract liabilities under the same contract shall be presented in net amount. If the net amountis the debit balance, it shall be presented in the item of “contract assets” or “other non-current assets” according toits liquidity; if the net amount is the credit balance, it shall be presented in the item of “contract liabilities” or “othernon-current liabilities” according to its liquidity.
(2) Specific methods
When the complete vehicles and their accessories and other goods are transported to the agreed delivery locationunder the terms of the contract, the customer has accepted the goods and obtained the right to control over them,and the Company recognizes the income.Similar businesses adopt different operating models involving different revenue recognition methods andmeasurement methods: None
31. Contract cost
The contract cost includes the incremental cost incurred for obtaining a contract and the contract performance cost.Incremental costs incurred for obtaining a contract refer to the costs (such as sales commissions) that would nothave occurred if the Company had not obtained the contract. If the cost is expected to be recovered, the Companyrecognizes it as a contract acquisition cost and an asset. Other expenditures incurred by the Company for obtainingcontracts other than incremental costs that are expected to be recovered are included in current profits and losseswhen incurred.
If the cost incurred for contract performance is not within the scope of other accounting standards for businessenterprises such as inventories and meets the following conditions at the same time, the Company recognizes it asan asset for the contract performance cost:
① The cost is directly related to a current or expected contract, including direct labor, direct materials,manufacturing costs (or similar costs), the costs clearly borne by the customer, and other costs incurred only by theContract;
② This cost increases the Company’s resources for performing the performance obligations in the future;
③ This cost is expected to be recovered.
Assets recognized as contract acquisition costs and that recognized as contract performance costs (hereinafterreferred to as “assets related to contract costs”) are amortized on the same basis as revenue recognition of goods orservices related to the assets and are included in current profits and losses.When the book value of the assets related to the contract cost is higher than the difference between the followingtwo items, the Company will make provision for the impairment of the excess and recognize it as the assetimpairment loss:
① The residual consideration expected to be obtained by the Company from the transfer of goods or services relatedto the asset;
② The estimated costs to be incurred for the transfer of relevant goods or services.
32. Government subsidies
The government subsidies shall be recognized when all the attached conditions can be satisfied and the governmentsubsidies can be received.The government subsidies considered as monetary assets are measured at the amount received or receivable. Thegovernment subsidies considered as non-monetary assets are measured based on the fair value, or the nominalamount of CNY 1 if the fair value cannot be acquired reliably.Asset-related government subsidies refer to those obtained by the Company and used for acquiring or forming long-term assets in other ways; otherwise, they are regarded as income-related government subsidies.For the government subsidies with the grant objects not expressly stipulated in the government documents, if theycan be used to form long-term assets, the government subsidies corresponding to the asset value are deemed as thegovernment subsidies related to assets while the rest is deemed as the one related to income; for the governmentsubsidies that are difficult to differentiate, the government subsidies as a whole are deemed as income-relatedgovernment subsidies.
Asset-related government subsidies are recognized as deferred income and included in profits or losses by stageswith a reasonable and systematic method within the service life of related assets. For the income-related governmentsubsidies, they shall be included in the current profit and loss or write down related costs if used to compensate forthe incurred related costs or losses; if used to compensate for the related costs or losses during future periods, theyshall be included in the deferred income, and included in the current profit and loss during the period when therelated costs or losses are recognized. Government subsidies measured at the nominal amount are directly includedin the current profit and loss. The Company adopts the same treatment for those transactions of similar governmentsubsidies.The government subsidies related to daily activities shall be included in other incomes based on the substance ofbusiness transactions. Government subsidies irrelevant to daily activities are included in non-business income.If it is necessary to refund the government subsidies that have been recognized, the book value of the assets whichhas been offset at the time of initial recognition is adjusted; the book balance of the deferred income concerned (ifany) is offset, and the excess is included in the current profits and losses; others are directly included in the currentprofits and losses.
33. Deferred income tax assets and deferred income tax liabilities
Income tax includes current income tax and deferred income tax. The income tax shall be included in the currentprofit and loss as income tax expenses, except that the deferred income taxes related to the adjustment of goodwilldue to business merger or the transactions or matters directly included in the owner’s equity are included in theowner’s equity.The Company recognizes deferred income tax by the balance sheet liability method according to the temporarydifference between the book value of assets and liabilities on the balance sheet date and the tax base.Relevant deferred tax liabilities shall be recognized for each taxable temporary difference, unless the taxabletemporary difference arises from the following transactions:
(1) The initial recognition of goodwill or the initial recognition of assets or liabilities incurred in a transaction thatis neither a business combination nor affects the accounting profit or taxable income at the time of the transaction(except for individual transactions where the assets and liabilities initially recognized result in equal amounts oftaxable temporary differences and deductible temporary differences);
(2) Concerning the taxable temporary difference related to the investment of subsidiaries, joint ventures andassociated enterprises, the time of reversal of the temporary difference can be controlled and the temporarydifference is unlikely to be reversed in the foreseeable future.The Company recognizes a deferred tax asset for the carry-forward of deductible temporary differences, deductiblelosses and tax credits to subsequent periods, to the extent that it is probable that future taxable profits will be
available against which the deductible temporary differences, deductible losses and tax credits can be utilized,except for those incurred in the following transactions:
(1) The transaction is neither a business combination nor affects the accounting profit or taxable income at the timeof the transaction (except for individual transactions where the assets and liabilities initially recognized result inequal amounts of taxable temporary differences and deductible temporary differences);
(2) Corresponding deferred income tax assets are recognized if the deductible temporary difference associated withinvestments in subsidiaries, associated enterprises and joint ventures meets all of the following conditions: Thetemporary difference is likely to be reversed in the foreseeable future, and the taxable income which is used todeduct the deductible temporary difference is likely to be obtained in the future.The Company measures the deferred income tax assets and deferred income tax liabilities at the applicable tax rateduring the expected period for recovering the assets or paying off the liabilities on the balance sheet date and reflectsthe impact on income tax from assets recovery or liability settlement on the balance sheet date.At the balance sheet date, the Company reviews the book value of a deferred income tax asset. If it is likely thatsufficient taxable profits will not be available in future periods to deduct the benefit of the deferred tax assets, thebook value of the deferred tax assets is reduced. Any such write-down shall be subsequently reversed where itbecomes probable that sufficient taxable income will be available.At the balance sheet date, deferred income tax assets and deferred income tax liabilities are presented by net amountafter set-off when both of the following conditions are satisfied:
(1) The taxpayer within the Company has the legal rights to settle the income tax assets and income tax liabilitiesin the current period by net amount;
(2) Deferred income tax assets and deferred tax liabilities are associated with the income taxes imposed by the sametaxation authority on the same taxpayer within the Company.
34. Lease
(1) Accounting treatment methods of lease with the Company as the lessee
Identification of leaseOn the commencement date of the contract, the Company, as the lessee or lessor, evaluates whether the customerin the contract is entitled to obtain almost all economic benefits arising from the use of the identified assets duringthe use period, and is entitled to dominate the use of the identified assets during the use period. If one party to thecontract abalienates the right to control the use of one or more identified assets within a certain period of time inexchange for consideration, the Company determines that the contract is a lease or includes a lease.
The Company acting as the lesseeAt the commencement of the lease term, the Company recognizes right-of-use assets and lease liabilities for allleases, except for simplified short-term leases and low-value asset leases.For the accounting policies of the right-of-use assets, see 36 “Others” in V “Significant Accounting Policies andAccounting Estimates” of Section X - Financial Report.Lease liabilities shall be initially measured at the present value calculated by the interest rate implicit in the leaseaccording to the unpaid lease payment on the commencement date of the lease term. If the interest rate implicit inlease cannot be determined, the incremental borrowing rate shall be used as the discount rate. The lease paymentincludes: fixed payment and substantial fixed payment. If there is a lease incentive, the amount related to the leaseincentive shall be deducted; variable lease payments depending on index or ratio; the exercise price of the purchaseoption, provided that the lessee reasonably determines that the option will be exercised; payments for exercising theoption to terminate the lease, provided that the lease term reflects that the lessee will exercise the option to terminatethe lease; and the amount expected to be paid according to the guaranteed residual value provided by the lessee.The interest expenses of the lease liabilities within each lease term shall be calculated subsequently according to thefixed periodic rate, and included in the current profits and losses. Variable lease payments not included in themeasurement of lease liabilities are included in the current profits and losses when they actually occur.Short-term leaseShort-term lease refers to a lease with a lease term of not more than 12 months on the commencement date of thelease term, except for the lease containing the purchase option.The Company includes the lease payment for short-term lease into relevant asset costs or current profits and lossesby the straight-line method at each period within the lease term.For short-term lease, the Company selects the above simplified treatment method for the items meeting the short-term lease conditions in the following asset types according to the category of leased assets.Low-value asset leaseLow-value asset lease refers to the lease in which the value of a single new leased asset is less than CNY 40 thousand.The Company includes the payment of low-value asset lease into relevant asset costs or current profits and losseswith the straight-line method in each period within the lease term.For low-value asset leases, the Company selects the above simplified treatment method according to the specificconditions of each lease.Lease change
If the lease changes and meets the following conditions at the same time, the Company takes the lease change as aseparate lease for the accounting treatment: ① The lease change expands the lease scope by increasing the right touse one or more leased assets; and ② the increased consideration is equivalent to the amount by adjusting theseparate price of the expanded lease scope according to the contract.If the lease change is not taken as a separate lease for accounting treatment, the Company will, on the effective dateof the lease change, reallocate the consideration of the changed contract, redetermine the lease term, and remeasurethe lease liabilities according to the changed lease payment and the present value calculated by the revised discountrate.If the lease scope is reduced or the lease term is shortened due to the lease change, the Company will correspondinglyreduce the book value of right-of-use assets, and include relevant profits or losses of partial or complete terminationof leasing in current profits and losses.If the lease liabilities are remeasured due to the other lease changes, the Company shall adjust the book value of theright-of-use asset accordingly.
(2) Accounting methods of lease with the Company as the lessor
When the Company is the lessor, the lease that substantially transfers all risks and rewards related to the ownershipof the assets is recognized as a finance lease, and other leases than finance leases are recognized as operating leases.Finance leaseIn financial lease, at the commencement of the lease term, the Company takes the net investment in a lease as theentry value of the finance lease receivables, and the net investment in a lease is the sum of the unguaranteed residualvalue and the present value of the lease receipts not yet received at the commencement of the lease term discountedat the interest rate implicit in lease. The Company, as the lessor, calculates and recognizes interest income in eachlease term at a fixed periodic rate. The variable lease payment obtained by the Company as the lessor and notincluded in the measurement of net lease investment is included in the current profits and losses when it actuallyoccurs.Derecognition and impairment of finance lease receivables are accounted for according to the ASBE No. 22 -Recognition and Measurement of Financial Instruments and the ASBE No. 23 - Transfer of Financial Assets.Operating leaseLease income from operating leases is included in current profits or losses by the Company as per the straight-linemethod over the lease term. The occurred initial direct cost related to the operating lease shall be capitalized,amortized within the lease term according to the same base with the recognition of rental income, and included inthe current profits and losses by stages. The variable lease receipts obtained by the Company related to operatingleases and not charged to the lease receipts shall be charged to the current profit and loss when they actually occur.
Lease changeIn case of any change in an operating lease, the Company carries out accounting treatment as it is a new lease sincethe effective date of the change, and the advance receipts and receivables related to the lease before the change aredeemed as the receipts of the new lease.If the financial lease changes and meets the following conditions, the Company takes the change as a separate leasefor accounting treatment: ① The change expands the lease scope by increasing the right to use one or more leasedassets; and ② the increased consideration is equivalent to the amount by adjusting the separate price of theexpanded lease scope according to the contract.If the change of finance lease is not taken as a separate lease for accounting treatment, the Company shall treat thechanged lease under the following circumstances respectively: ① If the change takes effect on the commencementdate of the lease and the lease will be classified as an operating lease, the Company will take it as a new lease foraccounting treatment from the effective date of the lease change, and take the net investment in the lease before theeffective date of the lease change as the book value of the leased asset. ② If the change takes effect on thecommencement date of the lease and the lease will be classified as a finance lease, the Company shall carry outaccounting treatment in accordance with the provisions of the Accounting Standards for Business Enterprises No.22 - Recognition and Measurement of Financial Instruments on modifying or renegotiating the contract.
35. Changes in significant accounting policies and accounting estimates
(1) Change in significant accounting policies
□Applicable ?Not applicable
(2) Change in significant accounting estimates
□Applicable ?Not applicable
(3) Adjustment of relevant items in the financial statements at the beginning of the year after the firstimplementation of the new accounting standards since 2024
□Applicable ?Not applicable
36. Others
(1) Fair value measurement
Fair value refers to the price to be received for sale of an asset or to be paid for the transfer of liability by marketparticipants in the orderly transaction on the measurement date.The Company measures related assets or liabilities at fair value, assuming that the sale of an asset or the transfer ofliability is conducted in major markets for relevant assets or liabilities in an orderly transaction. If the major marketis not provided, the transaction shall be assumed to be performed in the most favorable market for relevant assetsor liabilities. Major markets (or most favorable markets) are the markets where the Company can enter on the
measurement date. The Company uses the assumptions used by market participants to maximize their economicbenefits when they price the asset or liability.Fair value of financial assets or financial liabilities with the active market is determined based on quotations in theactive market by the Company. Fair value of financial instrument without an active market is determined throughvaluation techniques.When non-financial assets are measured at fair value, it is required to consider the ability of market participants touse the asset for optimal purposes to produce economic benefits, or to sell the asset to other market participants thatcan use such assets for optimal purposes to produce economic benefits.The Company shall adopt the estimation technique that is applicable in the current conditions and is supportedsufficiently by available data and other information. The relevant observable input values shall be used in priorityduring the application of estimation technique. Only when relevant observable value cannot be obtained or can beobtained but is not feasible, the unobservable input value can be used.For assets and liabilities measured or disclosed at fair value in the financial statements, the level to which the fairvalue belongs is determined according to the lowest level input value that is of significance for the whole fair valuemeasurement: The input value for the first level refers to the unadjusted quotation of the same assets or liabilities inthe active market that can be obtained on the measurement date; the input value for the second level refers to theinput value that can be directly or indirectly observed for relevant assets or liabilities other than that for the firstlevel; and the input value for the third level refers to the input value that cannot be observed for relevant assets orliabilities.The Company reassesses the assets and liabilities successively measured at fair value recognized in financialstatements on each balance sheet date to determine the transition among fair value measurement levels.
(2) Work safety cost and maintenance & renovation cost
The Company withdraws the work safety cost month by month in an average manner by taking the method of excessregression based on the actual operating income of the previous year according to the provisions of CZ [2022] No.136 document. The specific standards are as follows:
For the machinery manufacturing enterprises with an operating income of not exceeding CNY 10 million, 2.35% ofwork safety cost will be withdrawn; for the part of operating income between CNY 10 million and CNY 100 million,
1.25% will be withdrawn; for the part of the operating income between CNY 100 million and CNY 1 billion, 0.25%will be withdrawn; for the part of the operating income between CNY 1 billion and CNY 5 billion, 0.1% will bewithdrawn; for the part of the operating income over CNY 5 billion, 0.05% will be withdrawn.For transportation enterprises, the work safety cost is withdrawn month by month in an average manner accordingto the following standards based on the actual operating income in the previous year: 1% for ordinary freightbusiness; 1.5% for passenger transportation, pipeline transportation, dangerous goods transportation and other
special freight businesses. Work safety cost and maintenance & renovation cost are included in the cost of relevantproducts or the current profit and loss when withdrawn, and are also included in the “special reserve” account.For the withdrawn work safety cost and maintenance & renovation cost used within the specified scope, thosebelong to expense expenditures are directly offset by specific reserves; those cost incurred via collection under theitem of “construction in progress” is recognized when the safety project completes and is ready for intended use. Atthe same time, the Company will offset the specific reserves according to the cost that formed fixed assets anddetermine the accumulated depreciation of the same amount. The fixed assets will no longer be depreciated insubsequent periods.
(3) Repurchase of shares
Shares repurchased by the Company are managed as treasury shares before being canceled or transferred, and allexpenditures on repurchased shares are transferred to treasury share costs. Considerations in the payment for sharesrepurchase and reduced owner’s equity in transaction expenses are not recognized as profits or losses duringrepurchase, assignment and write-off of the Company’s shares.The transferred treasury shares are included in the capital reserve based on the difference between the amountactually received and the book value of the treasury shares. The surplus reserve and undistributed profits shall beoffset if the capital reserve is insufficient to offset. The canceled treasury shares are used to offset the capital reservebased on the difference between the book balance and the face value of the canceled treasury shares by reducing theshare capital according to the face value of the shares and the number of canceled shares. The surplus reserve andundistributed profits shall be offset if the capital reserve is insufficient to offset.
(4) Significant accounting judgment and estimate
The Company continuously evaluates the significant accounting estimates and key assumptions adopted based onhistorical experience and other factors, including reasonable expectations for future events. Significant accountingestimates and key assumptions that may lead to significant adjustment risk to the book value of assets and liabilitiesin the next accounting year are presented as follows:
Classification of financial assetsMajor judgments involved in determining the classification of financial assets include the analysis of businessmodels and contractual cash flow characteristics.The Company determines the business model of managing financial assets at the level of financial asset portfolio,considering the way of evaluating and reporting financial asset performance to key management personnel, the risksaffecting the financial asset performance and their management methods, and the way for the relevant businessmanagement personnel to obtain the remuneration.When evaluating whether the contractual cash flow of financial assets is consistent with the basic loan arrangement,the Company has the following main judgments: May the principal change in the time distribution or amount in the
duration due to prepayment and other reasons? Does the interest include only the time value of money, credit risk,other basic borrowing risks, and consideration for costs and profits? For example, does the amount of prepaymentonly reflect the unpaid principal and interest based on the outstanding principal, as well as reasonable compensationpaid due to early termination of the contract?Measurement of expected credit losses on accounts receivableThe Company calculates the expected credit loss of accounts receivable through default risk exposure and expectedcredit loss rate of accounts receivable, and determines the expected credit loss rate based on default probability andloss given default. In determining the expected credit loss rate, the Company uses the internal historical credit lossexperience and other data, and adjusts the historical data according to the current situation and forward-lookinginformation. When the forward-looking information is considered, the indicators used by the Company include risksof economic downturn, changes in external market environment, technological environment and customerconditions. The Company regularly monitors and reviews the assumptions related to the calculation of expectedcredit losses.Development expendituresIn determining the capitalization amounts, the management must make assumptions on the expected future cashflow generation of assets, discount rate to be adopted and expected benefit period.Deferred Income tax assetsThe deferred tax assets shall be recognized in respect of all unused tax losses to the extent it is highly probable thatthere will be sufficient taxable profits available for offsetting the losses. This requires the management to estimatethe timing and amount of future taxable profit using large amounts of judgment and to determine the recognizedamount of deferred tax assets by referring to the tax planning strategy.Estimated liabilitiesExpected liabilities are initially measured at the optimal estimate required to perform the relevant current obligation,in comprehensive consideration of the risks, uncertainty, time value of money, and other factors pertinent to theContingencies. The best estimate is determined by discounting the relevant future cash outflow if the time value ofmoney has a significant impact. At the balance sheet date, the book value of the estimated liabilities is reviewed andadjusted by the Company to reflect the current best estimate.If all or part of the expenditures necessary for clearing off the recognized provisions are expected to be compensatedby a third party or any other party, the amount of compensation shall be recognized as assets separately only whenit is basically sure that the amount can be obtained. The recognized amount of compensation shall not exceed thebook value of recognized liabilities.
(5) Right-of-use assets
① Recognition conditions of right-of-use assets
Right-of-use assets refer to the right of the Company, as the lessee, to use the leasing assets within the lease term.At the commencement date of the lease term, the right-of-use assets are initially measured at cost. This cost includesthe initial measurement amount of lease liabilities, lease payments made on or before the lease commencement date,from which any lease incentives enjoyed (if any) needed to be deducted, initial direct costs incurred by the Companyas a lessee, and the estimated costs expected to be incurred by the Company as a lessee for dismantling and removingthe leased asset, restoring the leased asset’s site, or restoring the leased asset to the contractual conditions asstipulated in the lease agreement. The Company, as the lessee, recognizes and measures the cost of demolition andrestoration in accordance with the Accounting Standards for Business Enterprises No. 13 - Contingencies.Subsequent adjustments are made for any remeasurement of the lease liabilities.
② Depreciation method of right-of-use assets
The Company uses the straight-line method for depreciation. If the Company, as the lessee, can reasonably confirmthat it obtains the ownership of the leasing assets at the expiration of the lease term, the depreciation shall be drawnwithin the remaining service life of the leasing assets. In case of a failure to determine the ownership of the leasedassets reasonably at the end of the lease period, the depreciation shall be drawn within the lease term or the remainingservice life of leasing assets, whichever is shorter.
③ For the impairment test methods and impairment provision methods of right-of-use assets, please refer to 36“Others” in V “Significant Accounting Policies and Accounting Estimates” of Section X - Financial Report.
(6) Asset impairment
The asset impairment of long-term equity investment to subsidiaries, associated enterprises and joint ventures,investment real estate subsequently measured by cost model, fixed assets, projects under construction, right-of-useassets, intangible assets, etc. (except for inventories, deferred income tax assets and financial assets) is recognizedwith the following methods:
The Company judges whether there is a sign of impairment to assets on the balance sheet date. If such a sign exists,the Company estimates the recoverable amount and conducts the impairment test. Impairment tests shall be carriedout every year on goodwill resulting from business mergers, intangible assets with uncertain service life andintangible assets that are not available no matter whether there is any sign of impairment.The recoverable amount is the net amount of the fair value of the assets after deducting the disposal expenses or thepresent value of the expected future cash flow of the assets, whichever is higher. The Company estimates therecoverable amount based on a single asset. If it is difficult to estimate the recoverable amount of a single asset, therecoverable amount of the asset group shall be determined based on the asset group to which the asset belongs. Anasset group is determined based on the fact that the main cash inflows generated by the asset group are independentof the cash inflows of other assets or asset groups.
When the recoverable amount of an asset or asset group is lower than its book value, the Company writes down itsbook value to the recoverable amount, and the write-down amount is included in current profits and losses, and thecorresponding impairment provision of assets is made at the same time.For the impairment test of goodwill, the book value of goodwill resulting from business merger is amortized torelevant asset groups with reasonable methods from the acquisition date, or amortized to relevant asset groupportfolio if it is difficult to amortize it to relevant asset groups. Relevant asset groups or portfolios of asset groupsare those that can benefit from the synergies of business merger and are not greater than the reporting segmentdetermined by the Company.If there is any sign of impairment in the asset group or portfolio of asset groups related to goodwill during theimpairment test, the impairment test shall be carried out on the asset group or portfolio of asset groups not includinggoodwill, and the recoverable amount shall be calculated to determine the corresponding impairment loss. Then, animpairment test is carried out on the asset group or portfolio of asset groups including goodwill to compare its bookvalue and recoverable amount, and determine the impairment loss of goodwill if the recoverable amount is lowerthan the book value.Once the impairment loss of assets is determined, it will never be reversed in subsequent accounting periods.
VI. Taxes
1. Main taxes and tax rates
| Tax Category | Tax Basis | Tax Rate |
| VAT | Taxable value-added tax (the tax payable is calculated by multiplying taxable sales by the applicable tax rate and then deducting input tax allowed to be deducted for the current period) | 13%, 9%, 6%, 5% |
| Urban maintenance and construction tax | Turnover tax actually paid | 7%, 5% |
| Corporate income tax | Taxable income | 25% |
| Education surcharges | Turnover tax actually paid | 3% |
| Local educational surcharges | Turnover tax actually paid | 2% |
| Land use tax | Land use area | CNY 9/m2, CNY 14/m2, etc. |
| Property tax | Property residual value and rental income | 1.2%, 12% |
Disclosure of different corporate income tax rates for taxable entities
| Name of Taxpayer | Income Tax Rate |
| The Company | 25% |
| Jiefang Limited | 15% |
| Wuxi Dahao Power Co., Ltd. | 25% |
| FAW Jiefang (Qingdao) Automotive Co., Ltd. | 25% |
| FAW Jiefang Dalian Diesel Engine Co., Ltd. | 15% |
| FAW Jiefang Austria R&D Co., Ltd. | 24% |
| FAW Jiefang Automotive Sales Co., Ltd. | 25% |
| FAW Jiefang Uni-D (Tianjin) Technology Industry Co., Ltd. | 25% |
2. Tax preference
(1) Income tax
Jiefang Limited, a subsidiary of the Company, is recognized as a high-tech enterprise, with a validity period of threeyears and an income tax rate of 15% within the validity period according to the High-tech Enterprise Certificate(issued on October 16, 2023, with a certificate number of GR202322000922) jointly issued by the Science andTechnology Department of Jilin Province, the Department of Finance of Jilin Province and the Jilin Provincial TaxService of State Taxation Administration.FAW Jiefang Dalian Diesel Engine Co., Ltd., a subsidiary of the Company, is recognized as a high-tech enterprise,with a validity period of three years and an income tax rate of 15% within the validity period according to the listof the third batch of high-tech enterprises (with a certificate number of GR202121200892) issued by Dalian onDecember 15, 2021.
(2) VAT
FAW Jiefang Automotive Co., Ltd. and FAW Jiefang Dalian Diesel Engine Co., Ltd. satisfy the conditions foradvanced manufacturing enterprises and are allowed to add 5% of the current deductible input tax to offset theamount of VAT payable from January 1, 2023 according to the Document No. 43 issued by the Ministry of Financeand the State Taxation Administration in 2023, Announcement on VAT Additional Tax Credit Policy for AdvancedManufacturing Enterprises.VII. Notes to Items in Consolidated Financial Statements
1. Monetary capital
Unit: CNY
| Item | Ending balance | Opening balance |
| Bank deposit | 16,908,983,571.44 | 8,849,319,921.20 |
| Other monetary capital | 22,152,057.29 | 24,815,735.14 |
| Deposit in finance companies | 8,678,069,325.92 | 14,046,575,246.78 |
| Total | 25,609,204,954.65 | 22,920,710,903.12 |
| Including: total amount deposited abroad | 7,721,619.78 | 11,941,864.29 |
Other descriptionDetails of restricted monetary capital are as follows: Unit: CNY
| Item | Ending balance | Opening balance |
| Security deposit for three types of personnel | 28,321,219.94 | 27,839,503.40 |
| Housing maintenance fund | 22,152,057.29 | 22,103,193.44 |
| Court freezing | 725,230.81 | |
| Total | 50,473,277.23 | 50,667,927.65 |
2. Notes receivable
(1) Classified presentation of notes receivable
Unit: CNY
| Item | Ending balance | Opening balance |
| Commercial acceptance notes | 110,591,432.00 | 44,626,048.13 |
| Total | 110,591,432.00 | 44,626,048.13 |
(2) Disclosure by the method of provision for bad debts
Unit: CNY
| Category | Ending balance | Opening balance | ||||||||
| Book balance | Provision for Bad Debts | Book Value | Book balance | Provision for Bad Debts | Book Value | |||||
| Amount | Percentage | Amount | Provision proportion | Amount | Percentage | Amount | Provision proportion | |||
| Including: | ||||||||||
| Notes receivable with provision for bad debts by portfolio | 110,785,000.00 | 100.00% | 193,568.00 | 0.17% | 110,591,432.00 | 44,841,286.30 | 100.00% | 215,238.17 | 0.48% | 44,626,048.13 |
| Including: | ||||||||||
| Commercial acceptance bill | 110,785,000.00 | 100.00% | 193,568.00 | 0.17% | 110,591,432.00 | 44,841,286.30 | 100.00% | 215,238.17 | 0.48% | 44,626,048.13 |
| Total | 110,785,000.00 | 100.00% | 193,568.00 | 0.17% | 110,591,432.00 | 44,841,286.30 | 100.00% | 215,238.17 | 0.48% | 44,626,048.13 |
Category name of provision for bad debt reserve by combination:
Unit: CNY
| Name | Ending balance | ||
| Book balance | Provision for Bad Debts | Provision proportion | |
| Within 1 year | 110,785,000.00 | 193,568.00 | 0.17% |
| Total | 110,785,000.00 | 193,568.00 |
Description of the basis for determining this portfolio:
If the provision for bad debts of notes receivable is withdrawn based on the general model of expected creditlosses:
?Applicable □Not applicable
Unit: CNY
| Provision for Bad Debts | Stage I | Stage II | Stage III | Total |
| Expected Credit Losses for the Next 12 Months | Expected credit loss in the duration (credit impairment not occurred) | Expected credit loss for the entire duration (with credit impairment) | ||
| Balance as at January 1, 2024 | 215,238.17 | 215,238.17 | ||
| Balance on January 1, 2024 in the current period | ||||
| Provision in the current period | -21,670.17 | -21,670.17 | ||
| Balance as at June 30, 2024 | 193,568.00 | 193,568.00 |
Basis for stage division and proportion of bad debt provisionExplanation of significant changes in the book balance of accounts receivable with changes in loss provisions inthe current period:
(3) Provision for bad debts provided, recovered or reversed in the current periodProvision for bad debts in the current period:
Unit: CNY
| Category | Opening balance | Change in the Current Period | Ending balance | |||
| Provision | Recovery or reversal | Write-off | Others | |||
| Commercial acceptance bill | 215,238.17 | -21,670.17 | 193,568.00 | |||
| Total | 215,238.17 | -21,670.17 | 193,568.00 | |||
Important provision for bad debts recovered or reversed in the current period:
□Applicable ?Not applicable
3. Accounts receivable
(1) Disclosure by aging
Unit: CNY
| Aging | Ending book balance | Beginning Book Balance |
| Within 1 year (including 1 year) | 11,601,111,284.82 | 1,841,405,361.88 |
| Including: 0-6 months | 11,412,392,138.61 | 1,761,474,596.90 |
| 7-12 months | 188,719,146.21 | 79,930,764.98 |
| 1-2 years | 46,137,240.71 | 61,551,354.54 |
| 2-3 years | 127,524,339.01 | 121,453,806.43 |
| Over 3 years | 133,000,637.42 | 137,477,637.42 |
| 3-4 years | 36,423,000.00 | 44,736,900.00 |
| 4-5 years | 4,291,899.94 | 454,999.94 |
| Over 5 years | 92,285,737.48 | 92,285,737.48 |
| Total | 11,907,773,501.96 | 2,161,888,160.27 |
(2) Disclosure by the method of provision for bad debts
Unit: CNY
| Category | Ending balance | Opening balance | ||||||||
| Book balance | Provision for Bad Debts | Book Value | Book balance | Provision for Bad Debts | Book Value | |||||
| Amount | Percentage | Amount | Provision proportion | Amount | Percentage | Amount | Provision proportion | |||
| Accounts receivable with provision for bad debts on an individual basis | 85,331,549.22 | 0.72% | 85,331,549.22 | 100.00% | 0.00 | 89,811,549.22 | 4.15% | 89,811,549.22 | 100.00% | 0.00 |
| Including: | ||||||||||
| Accounts receivable with provision for bad debts by portfolio | 11,822,441,952.74 | 99.28% | 113,808,812.02 | 0.96% | 11,708,633,140.72 | 2,072,076,611.05 | 95.85% | 82,690,441.28 | 3.99% | 1,989,386,169.77 |
| Including: | ||||||||||
| Total | 11,907,773,501.96 | 100.00% | 199,140,361.24 | 1.67% | 11,708,633,140.72 | 2,161,888,160.27 | 100.00% | 172,501,990.50 | 7.98% | 1,989,386,169.77 |
Category name for provision for bad debts by individual item:
Unit: CNY
| Name | Opening balance | Ending balance | ||||
| Book balance | Provision for Bad Debts | Book balance | Provision for Bad Debts | Provision proportion | Reasons for Provision | |
| Jiangsu Xinrui New Energy Vehicle Technology Co., Ltd. | 37,612,001.70 | 37,612,001.70 | 37,612,001.70 | 37,612,001.70 | 100.00% | It is highly probable that the amounts will not be recovered |
| Zhejiang Hanglun Ligang Trading Co., Ltd. | 8,581,536.83 | 8,581,536.83 | 8,581,536.83 | 8,581,536.83 | 100.00% | It is highly probable that the amounts will not be recovered |
| Putian New Energy Automotive (Shandong) Co., Ltd. | 8,156,900.00 | 8,156,900.00 | 3,676,900.00 | 3,676,900.00 | 100.00% | It is highly probable that the amounts will not be recovered |
| Dalian Qingfeng Bus Co., Ltd. | 8,043,264.87 | 8,043,264.87 | 8,043,264.87 | 8,043,264.87 | 100.00% | It is highly probable that the amounts will not be recovered |
| Beijing Hotan Automobile Modification Co., Ltd. | 7,436,520.00 | 7,436,520.00 | 7,436,520.00 | 7,436,520.00 | 100.00% | It is highly probable that the amounts will not be recovered |
| Changchun Xiongtu New Energy Vehicle | 6,230,500.00 | 6,230,500.00 | 6,230,500.00 | 6,230,500.00 | 100.00% | It is highly |
| Co., Ltd. | probable that the amounts will not be recovered | |||||
| Zhonghe Shunyang Supply Chain Management (Jilin) Co., Ltd. | 5,643,600.00 | 5,643,600.00 | 5,643,600.00 | 5,643,600.00 | 100.00% | It is highly probable that the amounts will not be recovered |
| Shuozhou Jinsheng Automobile Trading Co., Ltd. | 1,822,961.43 | 1,822,961.43 | 1,822,961.43 | 1,822,961.43 | 100.00% | It is highly probable that the amounts will not be recovered |
| FAW Jingye Engine Co., Ltd. | 1,820,957.23 | 1,820,957.23 | 1,820,957.23 | 1,820,957.23 | 100.00% | It is highly probable that the amounts will not be recovered |
| Xinjiang Jingyang Optoelectronic Co., Ltd. | 1,179,590.41 | 1,179,590.41 | 1,179,590.41 | 1,179,590.41 | 100.00% | It is highly probable that the amounts will not be recovered |
| Yulin Jiayu Jiefang Automobile Sales Co., Ltd. | 971,012.59 | 971,012.59 | 971,012.59 | 971,012.59 | 100.00% | It is highly probable that the amounts will not be recovered |
| Shenyang Jinbei Vehicle Manufacturing Co., | 889,279.05 | 889,279.05 | 889,279.05 | 889,279.05 | 100.00% | It is highly probable |
| Ltd. | that the amounts will not be recovered | |||||
| Dalian Baofeng Automobile Sales Co., Ltd. | 496,200.00 | 496,200.00 | 496,200.00 | 496,200.00 | 100.00% | It is highly probable that the amounts will not be recovered |
| Jilin Zhuzhan Automobile Trading Co., Ltd. | 484,400.00 | 484,400.00 | 484,400.00 | 484,400.00 | 100.00% | It is highly probable that the amounts will not be recovered |
| Liangshan Huatai Trading Co., Ltd. | 349,190.00 | 349,190.00 | 349,190.00 | 349,190.00 | 100.00% | It is highly probable that the amounts will not be recovered |
| Zhejiang Baoding Automobile Sales Co., Ltd. | 80,035.12 | 80,035.12 | 80,035.12 | 80,035.12 | 100.00% | It is highly probable that the amounts will not be recovered |
| Yancheng Zhongwei Bus Co., Ltd. | 13,599.99 | 13,599.99 | 13,599.99 | 13,599.99 | 100.00% | It is highly probable that the amounts will not be recovered |
| Total | 89,811,549.22 | 89,811,549.22 | 85,331,549.22 | 85,331,549.22 |
Category name of provision for bad debt reserve by combination:
Unit: CNY
| Name | Ending balance | ||
| Book balance | Provision for Bad Debts | Provision proportion | |
| Within 1 year | 11,601,251,660.16 | 36,483,173.47 | 0.31% |
| 1-2 years | 46,286,880.31 | 4,873,137.07 | 10.53% |
| 2-3 years | 127,527,339.01 | 36,002,428.22 | 28.23% |
| 3-4 years | 36,420,000.00 | 25,494,000.00 | 70.00% |
| Over 4 years | 10,956,073.26 | 10,956,073.26 | 100.00% |
| Total | 11,822,441,952.74 | 113,808,812.02 | |
Description of the basis for determining this portfolio:
If the provision for bad debts of accounts receivable is withdrawn based on the general model of expected creditlosses:
?Applicable □Not applicable
Unit: CNY
| Provision for Bad Debts | Stage I | Stage II | Stage III | Total |
| Expected Credit Losses for the Next 12 Months | Expected credit loss in the duration (credit impairment not occurred) | Expected credit loss for the entire duration (with credit impairment) | ||
| Balance as at January 1, 2024 | 5,230,492.48 | 77,459,948.80 | 89,811,549.22 | 172,501,990.50 |
| Balance on January 1, 2024 in the current period | ||||
| Provision in the current period | 31,252,680.99 | -134,310.25 | 31,118,370.74 | |
| Reversal in the Current Period | 4,480,000.00 | 4,480,000.00 | ||
| Balance as at June 30, 2024 | 36,483,173.47 | 77,325,638.55 | 85,331,549.22 | 199,140,361.24 |
The basis for dividing each stage and the provision ratio for bad debts: In the first and second stages, bad debts areprovisioned based on the aging, with provision ratios of 0.31% for less than 1 year, 10.53% for 1-2 years, 28.23%for 2-3 years, 70.00% for 3-4 years, 100% for more than 4 years, and 100% for the third stage.Explanation of significant changes in the book balance of accounts receivable with changes in loss provisions inthe current period:
(3) Provision for bad debts provided, recovered or reversed in the current periodProvision for bad debts in the current period:
Unit: CNY
| Category | Opening balance | Change in the Current Period | Ending balance | |||
| Provision | Recovery or reversal | Write-off | Others | |||
| Accounts receivable | 172,501,990.50 | 31,118,370.74 | 4,480,000.00 | 199,140,361.24 | ||
| Total | 172,501,990.50 | 31,118,370.74 | 4,480,000.00 | 199,140,361.24 |
Important provision for bad debts recovered or reversed in the current period:
Unit: CNY
| Name of Unit | Amount Recovered or Reversed | Reason for reversal | Recovery Method | Basis of determining the proportion of provision for original bad debts and its rationality |
| Putian New Energy Automotive (Shandong) Co., Ltd. | 4,480,000.00 | Recovery of amounts due | Bank transfers and bank acceptance bills | Provision by individual item |
| Total | 4,480,000.00 |
(4) Other accounts receivable and contractual assets from the top five borrowers classified based on theending balance
Unit: CNY
| Name of Unit | Ending Balance of Accounts Receivable | Ending balance of contractual assets | Ending balance of accounts receivable and contractual assets | Proportion in total ending balance of accounts receivable and contractual assets | Ending balance of bad debt provision for accounts receivable and impairment provision for contractual assets |
| China FAW Group Import & Export Co., Ltd. | 7,446,827,018.24 | 7,446,827,018.24 | 62.45% | 21,870,950.49 | |
| Jiefang Times New Energy Technology Co., Ltd. | 801,428,696.29 | 801,428,696.29 | 6.72% | 2,133,786.12 | |
| Customer 1 | 135,543,758.77 | 135,543,758.77 | 1.14% | 650,610.04 | |
| Customer 2 | 133,348,265.55 | 133,348,265.55 | 1.12% | 640,071.67 | |
| Customer 3 | 120,546,009.26 | 120,546,009.26 | 1.01% | 578,620.85 | |
| Total | 8,637,693,748.11 | 8,637,693,748.11 | 72.44% | 25,874,039.17 |
4. Contract assets
(1) Contractual assets
Unit: CNY
| Item | Ending balance | Opening balance | ||||
| Book balance | Provision for Bad Debts | Book Value | Book balance | Provision for Bad Debts | Book Value | |
| Contract assets | 17,304,189.41 | 827,747.54 | 16,476,441.87 | 18,023,563.08 | 440,706.26 | 17,582,856.82 |
| Total | 17,304,189.41 | 827,747.54 | 16,476,441.87 | 18,023,563.08 | 440,706.26 | 17,582,856.82 |
(2) Disclosure by the method of provision for bad debts
Unit: CNY
| Category | Ending balance | Opening balance | ||||||||
| Book balance | Provision for Bad Debts | Book Value | Book balance | Provision for Bad Debts | Book Value | |||||
| Amount | Percentage | Amount | Provision proportion | Amount | Percentage | Amount | Provision proportion | |||
| Including: | ||||||||||
| Provision for bad debts made by portfolio | 17,304,189.41 | 100.00% | 827,747.54 | 4.78% | 16,476,441.87 | 18,023,563.08 | 100.00% | 440,706.26 | 2.45% | 17,582,856.82 |
| Including: | ||||||||||
| Total | 17,304,189.41 | 100.00% | 827,747.54 | 4.78% | 16,476,441.87 | 18,023,563.08 | 100.00% | 440,706.26 | 2.45% | 17,582,856.82 |
Category name for provision for bad debts by portfolio: Provision for bad debts by portfolio
Unit: CNY
| Name | Ending balance | ||
| Book balance | Provision for Bad Debts | Provision proportion | |
| Within 1 year | 12,925,381.71 | 50,672.69 | 0.39% |
| 1-2 years | 2,216,880.70 | 44,397.79 | 2.00% |
| 2-3 years | 2,161,927.00 | 732,677.06 | 33.89% |
| Total | 17,304,189.41 | 827,747.54 | |
Description of the basis for determining this portfolio:
Provision for bad debts based on the general model of expected credit losses?Applicable □Not applicable
Unit: CNY
| Provision for Bad Debts | Stage I | Stage II | Stage III | Total |
| Expected Credit Losses for the Next 12 Months | Expected credit loss in the duration (credit impairment not occurred) | Expected credit loss for the entire duration (with credit impairment) | ||
| Balance as at January 1, 2024 | 60,935.81 | 379,770.45 | 440,706.26 | |
| Balance on January 1, 2024 in the current period | ||||
| Provision in the current period | -10,263.12 | 397,304.40 | 387,041.28 | |
| Balance as at June 30, 2024 | 50,672.69 | 777,074.85 | 827,747.54 |
The basis for dividing each stage and the provision ratios for bad debts: In the first and second stages, bad debtsare provisioned based on the aging, with provision ratios of 0.39% for less than 1 year, 2% for 1-2 years, and
33.89% for 2-3 years.
Description of significant changes in the book balance of contractual assets with changes in provision for loss inthe current period: None
5. Receivables financing
(1) Presentation of receivables financing by category
Unit: CNY
| Item | Ending balance | Opening balance |
| Bank acceptance bill | 8,448,273,887.92 | 4,878,126,972.73 |
| Total | 8,448,273,887.92 | 4,878,126,972.73 |
(2) Financing of receivables endorsed or discounted by the Company at the end of the period and not yetdue on the balance sheet date
Unit: CNY
| Item | Derecognized Amount at the End of the Period | Amount not Derecognized at the End of the Period |
| Bank acceptance bill | 12,453,690,012.18 | |
| Total | 12,453,690,012.18 |
(3) Other notes
The Company classifies bank acceptance bills as financial assets measured at fair value and whose changes areincluded in other comprehensive income and presents them as receivables financing according to the needs ofdaily fund management.The Company has no bank acceptance bills with the impairment provision by individual item. As of June 30,2024, the Company believes that the bank acceptance bills held have no material credit risk and do not bringmaterial losses as a result of a bank default.The bank acceptance bills for discounting have a small risk of credit and deferred payment, and the risk of theinterest rate related to the bills has been transferred to the bank, so it can be judged that the main risks and rewardsof the bill ownership have been transferred, and the recognition is ended.
6. Other receivables
Unit: CNY
| Item | Ending balance | Opening balance |
| Other receivables | 1,176,699,147.26 | 1,309,376,221.57 |
| Total | 1,176,699,147.26 | 1,309,376,221.57 |
(1) Other receivables
1) Classification of other receivables by nature
Unit: CNY
| Nature | Ending book balance | Beginning Book Balance |
| Current account | 1,026,906,667.11 | 1,191,301,022.21 |
| Claim payment | 201,066,386.23 | 192,151,504.78 |
| Margin, deposit | 29,150,613.20 | 41,422,562.20 |
| Reserve fund | 14,610,173.13 | 621,409.08 |
| Total | 1,271,733,839.67 | 1,425,496,498.27 |
2) Disclosure by aging
Unit: CNY
| Aging | Ending book balance | Beginning Book Balance |
| Within 1 year (including 1 year) | 480,764,061.68 | 571,985,195.12 |
| Including: 0-6 months | 424,374,904.73 | 556,407,667.28 |
| 7-12 months | 56,389,156.95 | 15,577,527.84 |
| 1-2 years | 677,734,290.71 | 764,590,667.17 |
| 2-3 years | 27,453,816.42 | 1,331,719.31 |
| Over 3 years | 85,781,670.86 | 87,588,916.67 |
| 3-4 years | 4,534,974.84 | 3,713,565.73 |
| 4-5 years | 18,990.89 | 149,607.62 |
| Over 5 years | 81,227,705.13 | 83,725,743.32 |
| Total | 1,271,733,839.67 | 1,425,496,498.27 |
3) Disclosure by the method of provision for bad debts
?Applicable □Not applicable
Unit: CNY
| Category | Ending balance | Opening balance | ||||||||
| Book balance | Provision for Bad Debts | Book Value | Book balance | Provision for Bad Debts | Book Value | |||||
| Amount | Percentage | Amount | Provision proportion | Amount | Percentage | Amount | Provision proportion | |||
| Provision for bad debts made by individual item | 59,879,639.41 | 4.71% | 59,879,639.41 | 100.00% | 59,879,639.41 | 4.20% | 59,879,639.41 | 100.00% | ||
| Including: | ||||||||||
| Provision for bad debts made by portfolio | 1,211,854,200.26 | 95.29% | 35,155,053.00 | 2.90% | 1,176,699,147.26 | 1,365,616,858.86 | 95.80% | 56,240,637.29 | 4.12% | 1,309,376,221.57 |
| Including: | ||||||||||
| Total | 1,271,733,839.67 | 100.00% | 95,034,692.41 | 7.47% | 1,176,699,147.26 | 1,425,496,498.27 | 100.00% | 116,120,276.70 | 8.15% | 1,309,376,221.57 |
Category name for provision for bad debts by individual item:
Unit: CNY
| Name | Opening balance | Ending balance | ||||
| Book balance | Provision for Bad Debts | Book balance | Provision for Bad Debts | Provision proportion | Reasons for Provision | |
| Changchun Finance Bureau | 37,820,100.00 | 37,820,100.00 | 37,820,100.00 | 37,820,100.00 | 100.00% | It is highly probable that the amounts will not be recovered |
| The People’s Government of Dalian Municipality | 20,500,000.00 | 20,500,000.00 | 20,500,000.00 | 20,500,000.00 | 100.00% | It is highly probable that the amounts will not be recovered |
| Wuxi Large Cargo Port Lifting and Transportation Co., Ltd. | 542,293.00 | 542,293.00 | 542,293.00 | 542,293.00 | 100.00% | It is highly probable that the amounts will not be recovered |
| FAW Jingye Automobile Co., Ltd. | 199,194.30 | 199,194.30 | 199,194.30 | 199,194.30 | 100.00% | It is highly probable that the amounts will not be recovered |
| Beijing Torchstar Automation Technology Co., Ltd. | 198,000.00 | 198,000.00 | 198,000.00 | 198,000.00 | 100.00% | It is highly probable that the amounts will not be recovered |
| Chongqing Jinhua Automobile Brake Corporation | 154,539.47 | 154,539.47 | 154,539.47 | 154,539.47 | 100.00% | It is highly probable that the amounts will not be recovered |
| Nanjing Xinpu Electromechanical Equipment Manufacturing Co., Ltd. | 135,000.00 | 135,000.00 | 135,000.00 | 135,000.00 | 100.00% | It is highly probable that the amounts will not be recovered |
| Hunan Changji | 119,600.00 | 119,600.00 | 119,600.00 | 119,600.00 | 100.00% | It is highly |
| Technology Development Co., Ltd. | probable that the amounts will not be recovered | |||||
| Others | 210,912.64 | 210,912.64 | 210,912.64 | 210,912.64 | 100.00% | It is highly probable that the amounts will not be recovered |
| Total | 59,879,639.41 | 59,879,639.41 | 59,879,639.41 | 59,879,639.41 |
Category name of provision for bad debt reserve by combination:
Unit: CNY
| Name | Ending balance | ||
| Book balance | Provision for Bad Debts | Provision proportion | |
| Aging portfolio | 1,211,854,200.26 | 35,155,053.00 | 2.90% |
| Total | 1,211,854,200.26 | 35,155,053.00 | |
Description of the basis for determining this portfolio:
Provision for bad debts based on the general model of expected credit losses:
Unit: CNY
| Provision for Bad Debts | Stage I | Stage II | Stage III | Total |
| Expected Credit Losses for the Next 12 Months | Expected credit loss in the duration (credit impairment not occurred) | Expected credit loss for the entire duration (with credit impairment) | ||
| Balance as at January 1, 2024 | 12,941,288.00 | 43,299,349.29 | 59,879,639.41 | 116,120,276.70 |
| Balance on January 1, 2024 in the current period | ||||
| Provision in the current period | -2,549,132.62 | -18,536,451.67 | -21,085,584.29 | |
| Balance as at June 30, 2024 | 10,392,155.38 | 24,762,897.62 | 59,879,639.41 | 95,034,692.41 |
Basis for stage division and proportion of bad debt provisionSignificant book balance changes occurred in the provision for losses in the current period
□Applicable ?Not applicable
4) Provision, recovery, or reversal of bad debts in the current period
Provision for bad debts in the current period:
Unit: CNY
| Category | Opening balance | Change in the Current Period | Ending balance | |||
| Provision | Recovery or | Charge-off or | Others | |||
| reversal | write-off | |||||
| Other receivables | 116,120,276.70 | -21,085,584.29 | 95,034,692.41 | |||
| Total | 116,120,276.70 | -21,085,584.29 | 95,034,692.41 |
5) Top five ending balances of other receivables classified by debtors
Unit: CNY
| Name of Unit | Nature of Payment | Ending balance | Aging | Proportion in total ending balance of other receivables | Ending Balance of Provision for Bad Debts |
| Customer 1 | Funds for land purchase and reserve | 660,862,800.00 | 1-2 years | 51.97% | 660,862.80 |
| Customer 2 | New energy vehicle sales subsidies | 163,210,700.00 | Less than 1 year or more than 5 years | 12.83% | 50,927,475.80 |
| Customer 3 | Funds for land purchase and reserve | 73,634,578.00 | Within 1 year | 5.79% | 2,245,854.63 |
| Customer 4 | New energy vehicle sales subsidies | 49,557,522.13 | 1-2 years | 3.90% | 12,543,008.85 |
| Customer 5 | Security deposit for migrant workers, etc. | 26,061,584.00 | 2-3 years | 2.05% | |
| Total | 973,327,184.13 | 76.54% | 66,377,202.08 |
7. Advance payment
(1) Presentation of advance payment by aging
Unit: CNY
| Aging | Ending balance | Opening balance | ||
| Amount | Percentage | Amount | Percentage | |
| Within 1 year | 267,306,591.11 | 65.05% | 438,665,956.06 | 63.60% |
| 1-2 years | 71,083,258.55 | 17.30% | 155,704,502.78 | 22.58% |
| 2-3 years | 55,479,496.33 | 13.50% | 75,007,663.59 | 10.88% |
| Over 3 years | 17,040,130.75 | 4.15% | 20,242,975.23 | 2.94% |
| Total | 410,909,476.74 | 689,621,097.66 | ||
Reasons for delay in settlement of advance payment with important amounts and aging over 1 year:
| Name of Debtor | Book balance (CNY) | Proportion in Total Advance Payment (%) | Reason for non-settlement |
| China FAW Group Import & Export Co., Ltd. | 55,798,125.30 | 13.58% | Undue settlement period |
| RiseSun MGL | 36,757,493.13 | 8.95% | Undue settlement period |
| FAW Mold Manufacturing Co., Ltd. | 11,760,095.26 | 2.86% | Undue |
| settlement period | |||
| Zhongqi Jiaojian Group Co., Ltd. | 9,100,600.00 | 2.21% | Undue settlement period |
| Total | 113,416,313.69 | 27.60% |
(2) Top five ending balances of advance payments classified by advance payment objectsThe advance payments with top five closing balance classified by the prepaid parties in the current period is CNY205,484,568.55, accounting for 50.01% of the total closing balance of advance payments.Other description:
8. Inventories
Does the Company need to comply with the disclosure requirements of the real estate industry: No
(1) Classification of inventories
Unit: CNY
| Item | Ending balance | Opening balance | ||||
| Book balance | Impairment Provision of Inventories or Contract Performance Costs | Book Value | Book balance | Impairment Provision of Inventories or Contract Performance Costs | Book Value | |
| Raw material | 353,998,484.32 | 32,812,348.28 | 321,186,136.04 | 346,085,168.15 | 33,387,013.66 | 312,698,154.49 |
| Goods in process | 597,577,155.21 | 16,536,596.69 | 581,040,558.52 | 449,087,779.38 | 14,783,370.86 | 434,304,408.52 |
| Goods in stock | 4,325,914,842.85 | 92,622,110.99 | 4,233,292,731.86 | 6,221,152,433.69 | 178,277,353.30 | 6,042,875,080.39 |
| Revolving material | 89,949,816.14 | 5,607,440.20 | 84,342,375.94 | 96,527,196.36 | 1,940,234.71 | 94,586,961.65 |
| Others | 2,516,172,327.36 | 155,750,226.18 | 2,360,422,101.18 | 2,488,739,701.04 | 162,232,949.94 | 2,326,506,751.10 |
| Total | 7,883,612,625.88 | 303,328,722.34 | 7,580,283,903.54 | 9,601,592,278.62 | 390,620,922.47 | 9,210,971,356.15 |
(2) Impairment provision of inventories and contract performance costs
Unit: CNY
| Item | Opening balance | Increase in the Current Period | Decrease in the Current Period | Ending balance | ||
| Provision | Others | Reverse or Charge-off | Others | |||
| Raw material | 33,387,013.66 | 324,565.07 | 899,230.45 | 32,812,348.28 | ||
| Goods in | 14,783,370.86 | 2,286,338.53 | 533,112.70 | 16,536,596.69 | ||
| process | ||||||
| Goods in stock | 178,277,353.30 | 58,840,807.68 | 144,496,049.99 | 92,622,110.99 | ||
| Revolving material | 1,940,234.71 | 3,667,809.29 | 603.80 | 5,607,440.20 | ||
| Others | 162,232,949.94 | 11,160,037.34 | 17,642,761.10 | 155,750,226.18 | ||
| Total | 390,620,922.47 | 76,279,557.91 | 163,571,758.04 | 303,328,722.34 |
9. Long-term receivables due within 1 year
Unit: CNY
| Item | Ending balance | Opening balance |
| Long-term receivables due within 1 year | 229,571,360.00 | 222,664,624.89 |
| Total | 229,571,360.00 | 222,664,624.89 |
(1) Debt investments due within one year
□Applicable ?Not applicable
(2) Other debt investments due within one year
□Applicable ?Not applicable
10. Other current assets
Unit: CNY
| Item | Ending balance | Opening balance |
| Input VAT | 226,934,626.73 | 398,062,687.06 |
| Input VAT to be certified | 506,612,542.16 | 625,978,432.77 |
| Prepaid income tax | 8,048,695.40 | |
| Total | 733,547,168.89 | 1,032,089,815.23 |
Other description:
11. Investment in other equity instruments
Unit: CNY
| Project Name | Opening balance | Gains included in other comprehensive incomes in the current period | Losses included in other comprehensive incomes in the current period | Cumulative gains included in other comprehensive incomes at the end of the current | Cumulative losses included in other comprehensive incomes at the end of the current period | Dividend income recognized in the current period | Ending balance | Reason for being designated as being measured at fair value and changes included in other comprehensive incomes |
| period | ||||||||
| REFIRE | 480,780,000.00 | 480,780,000.00 | ||||||
| Total | 480,780,000.00 | 480,780,000.00 |
Other notes: The equity of Shanghai Refire Group Limited is an investment that the Company plans to hold for along time for strategic purposes, so the Company designates it as a financial asset measured at fair value andwhose changes are included in other comprehensive incomes.
12. Long-term receivables
(1) Long-term receivables
Unit: CNY
| Item | Ending balance | Opening balance | Discount Rate Range | ||||
| Book balance | Provision for Bad Debts | Book Value | Book balance | Provision for Bad Debts | Book Value | ||
| Sales of goods by installment | 385,726,758.23 | 13,590,621.63 | 372,136,136.60 | 365,224,533.59 | 10,528,655.43 | 354,695,878.16 | |
| Long-term receivables due within 1 year | -242,420,744.80 | -12,849,384.80 | -229,571,360.00 | -232,504,099.49 | -9,839,474.60 | -222,664,624.89 | |
| Total | 143,306,013.43 | 741,236.83 | 142,564,776.60 | 132,720,434.10 | 689,180.83 | 132,031,253.27 | |
(2) Disclosure by the method of provision for bad debts
Unit: CNY
| Category | Ending balance | Opening balance | ||||||||
| Book balance | Provision for Bad Debts | Book Value | Book balance | Provision for Bad Debts | Book Value | |||||
| Amount | Percentage | Amount | Provision proportion | Amount | Percentage | Amount | Provision proportion | |||
| Including: | ||||||||||
| Provision for bad debts made by portfolio | 385,726,758.23 | 100.00% | 13,590,621.63 | 3.52% | 372,136,136.60 | 365,224,533.59 | 100.00% | 10,528,655.43 | 2.88% | 354,695,878.16 |
| Including: | ||||||||||
| Total | 385,726,758.23 | 100.00% | 13,590,621.63 | 3.52% | 372,136,136.60 | 365,224,533.59 | 100.00% | 10,528,655.43 | 2.88% | 354,695,878.16 |
Category name of provision for bad debt reserve by combination:
Unit: CNY
| Name | Ending balance | ||
| Book balance | Provision for Bad Debts | Provision proportion | |
| Long-term receivables | 385,726,758.23 | 13,590,621.63 | 3.52% |
| Total | 385,726,758.23 | 13,590,621.63 | |
Description of the basis for determining this portfolio:
Provision for bad debts based on the general model of expected credit losses
Unit: CNY
| Provision for Bad Debts | Stage I | Stage II | Stage III | Total |
| Expected Credit Losses for the Next 12 Months | Expected Credit Losses over the Entire Duration (no Credit Impairment) | Expected credit loss for the entire duration (with credit impairment) | ||
| Balance as at January 1, 2024 | 10,528,655.43 | 10,528,655.43 | ||
| Balance on January 1, 2024 in the current period | ||||
| Provision in the current period | 3,061,966.20 | 3,061,966.20 | ||
| Balance as at June 30, 2024 | 13,590,621.63 | 13,590,621.63 |
Basis for stage division and proportion of bad debt provision
(3) Provision for bad debts provided, recovered or reversed in the current period
Unit: CNY
| Category | Opening balance | Change in the Current Period | Ending balance | |||
| Provision | Recovery or reversal | Charge-off or write-off | Others | |||
| Long-term receivables | 10,528,655.43 | 3,061,966.20 | 13,590,621.63 | |||
| Total | 10,528,655.43 | 3,061,966.20 | 13,590,621.63 | |||
Other description:
13. Long-term equity investment
Unit: CNY
| Investee | Opening balance (book value) | Opening balance of impairment provision | Increase/Decrease in the current period | Ending balance (book Value) | Ending balance of impairment provision | |||||||
| Additional Investment | Reduced Investment | Investment gains or losses recognized under the equity method | Adjustment to other comprehensive income | Changes in other equity | Cash dividends and profits declared to pay | Impairment Provision | Others | |||||
| I. Joint ventures | ||||||||||||
| Jiefang Times New Energy Technology Co., Ltd. | 41,528,982.67 | -4,168,278.12 | 37,360,704.55 | |||||||||
| Subtotal | 41,528,982.67 | -4,168,278.12 | 37,360,704.55 | |||||||||
| II. Associated enterprises | ||||||||||||
| First Automobile Finance Co., Ltd. | 4,337,808,758.45 | 192,765,866.35 | -96,836.64 | 4,530,477,788.16 | ||||||||
| Changchun Automotive Test Center Co., Ltd. | 700,656,627.27 | 16,536,148.61 | 717,192,775.88 | |||||||||
| Sanguard Automobile Insurance Co., Ltd. | 171,795,598.71 | 2,127,273.48 | 5,679,897.29 | 179,602,769.48 | ||||||||
| FAW Changchun Ansteel Steel Processing and Distribution Co., Ltd. | 87,942,751.83 | 1,048,764.72 | 88,991,516.55 | |||||||||
| FAW Changchun Baoyou Jiefang Steel Processing and Distribution Co., Ltd. | 43,464,086.43 | 3,705,053.58 | 6,500,530.62 | 40,668,609.39 | ||||||||
| FAW Jiefang Fujie (Tianjin) | 36,982,856.24 | 2,767,497.43 | 296,019.25 | 40,046,372.92 | ||||||||
| Technology Industry Co., Ltd. | ||||||||||||
| Foshan Diyiyuan New Energy Technology Co., Ltd. | 33,214,745.08 | -1,206,715.23 | 32,008,029.85 | |||||||||
| Changchun Wabco Automotive Control System Co., Ltd. | 16,197,563.58 | 509,482.42 | 16,707,046.00 | |||||||||
| SmartLink | ||||||||||||
| Suzhou Zhito Technology Co., Ltd. | ||||||||||||
| Diyi AESC New Energy Power Technology (Wuxi) Co., Ltd. | 4,900,000.00 | -96,679.59 | 4,803,320.41 | |||||||||
| Subtotal | 5,428,062,987.59 | 4,900,000.00 | 218,156,691.77 | 5,583,060.65 | 6,500,530.62 | 296,019.25 | 5,650,498,228.64 | |||||
| Total | 5,469,591,970.26 | 4,900,000.00 | 213,988,413.65 | 5,583,060.65 | 6,500,530.62 | 296,019.25 | 5,687,858,933.19 |
The recoverable amount is the net amount of the fair value after deducting the disposal expenses
□Applicable ?Not applicable
The recoverable amount is the present value of the expected future cash flow
□Applicable ?Not applicable
Reason for apparent discrepancies between the foregoing information and the information used in the impairmenttest or external information in the previous year: NoneReason for apparent discrepancies between the information used in the Company’s impairment test of theprevious year and the actual situation in the current year: NoneOther description
14. Investment properties
(1) Investment properties measured at cost
?Applicable □Not applicable
Unit: CNY
| Item | Houses and Buildings | Land use right | Project under construction | Total |
| I. Original book value | ||||
| 1. Opening balance | 72,815,332.95 | 7,474,052.82 | 80,289,385.77 | |
| 2. Increase in the current period | 1,070,465.65 | 1,070,465.65 | ||
| (1) Purchase | ||||
| (2) Transfer from inventories/fixed assets/construction in progress | 1,070,465.65 | 1,070,465.65 | ||
| (3) Increase due to business combination | ||||
| 3. Decrease in the current period | ||||
| (1) Disposal | ||||
| (2) Other transfer-out | ||||
| (3) Reversal of intangible assets | ||||
| (4) Transferred to fixed assets | ||||
| 4. Ending balance | 73,885,798.60 | 7,474,052.82 | 81,359,851.42 | |
| II. Accumulated depreciation and accumulated amortization | ||||
| 1. Opening balance | 31,844,973.90 | 1,394,416.34 | 33,239,390.24 | |
| 2. Increase in the current period | 1,790,858.86 | 75,820.98 | 1,866,679.84 | |
| (1) Provision or amortization | 1,651,949.76 | 75,820.98 | 1,727,770.74 | |
| (2) Transfer-in of |
| intangible assets | ||||
| (3) Transfer-in of fixed assets | 138,909.10 | 138,909.10 | ||
| 3. Decrease in the current period | ||||
| (1) Disposal | ||||
| (2) Other transfer-out | ||||
| (3) Reversal of intangible assets | ||||
| (4) Transferred to fixed assets | ||||
| 4. Ending balance | 33,635,832.76 | 1,470,237.32 | 35,106,070.08 | |
| III. Impairment provision | ||||
| 1. Opening balance | ||||
| 2. Increase in the current period | ||||
| (1) Provision | ||||
| 3. Decrease in the current period | ||||
| (1) Disposal | ||||
| (2) Other transfer-out | ||||
| 4. Ending balance | ||||
| IV. Book value | ||||
| 1. Ending book value | 40,249,965.84 | 6,003,815.50 | 46,253,781.34 | |
| 2. Beginning book value | 40,970,359.05 | 6,079,636.48 | 47,049,995.53 |
The recoverable amount is the net amount of the fair value after deducting the disposal expenses
□Applicable ?Not applicable
The recoverable amount is the present value of the expected future cash flow
□Applicable ?Not applicable
Reason for apparent discrepancies between the foregoing information and the information used in the impairmenttest or external information in the previous year: NoneReason for apparent discrepancies between the information used in the Company’s impairment test of theprevious year and the actual situation in the current year: NoneOther description:
15. Fixed assets
Unit: CNY
| Item | Ending balance | Opening balance |
| Fixed assets | 11,462,225,947.74 | 11,372,570,486.81 |
| Disposal of fixed assets | 8,058,712.36 | 7,715,678.77 |
| Total | 11,470,284,660.10 | 11,380,286,165.58 |
(1)Situation of fixed assets Unit: CNY
| Item | Houses and Buildings | Machinery equipment | Transportation equipment | Electronic equipment | Office equipment | Others | Total |
| I. Original book value | |||||||
| 1. Opening balance | 6,307,772,400.65 | 17,908,866,291.78 | 166,206,037.96 | 722,265,738.13 | 63,384,017.87 | 1,375,757,179.01 | 26,544,251,665.40 |
| 2. Increase in the current period | 112,366,495.27 | 904,785,475.77 | 6,977,807.08 | 21,555,883.67 | 1,574,045.55 | 12,010,554.66 | 1,059,270,262.00 |
| (1) Purchase | 1,912,599.52 | -600.00 | 4,422,111.94 | 88,495.57 | 94,949.99 | 6,517,557.02 | |
| (2) Transfer from construction in progress | 112,366,495.27 | 902,825,686.08 | 6,978,407.08 | 15,463,475.80 | 1,485,549.98 | 11,915,604.67 | 1,051,035,218.88 |
| (3) Increase due to business combination | |||||||
| (4) Other increases | 47,190.17 | 1,670,295.93 | 1,717,486.10 | ||||
| 3. Decrease in the current period | 205,990,581.41 | 80,673,898.98 | 1,348,369.48 | 13,367,435.47 | 969,489.60 | 590,704.64 | 302,940,479.58 |
| (1) Disposal or retirement | 204,897,842.70 | 68,118,026.91 | 1,348,369.48 | 12,881,107.10 | 486,509.22 | 590,704.64 | 288,322,560.05 |
| (2) Other decreases | 1,092,738.71 | 12,555,872.07 | 486,328.37 | 482,980.38 | 14,617,919.53 | ||
| 4. Ending balance | 6,214,148,314.51 | 18,732,977,868.57 | 171,835,475.56 | 730,454,186.33 | 63,988,573.82 | 1,387,177,029.03 | 27,300,581,447.82 |
| II. Accumulated depreciation | |||||||
| 1. Opening balance | 2,484,933,288.21 | 10,793,027,418.15 | 125,224,299.82 | 567,928,108.63 | 44,591,287.54 | 1,130,691,908.67 | 15,146,396,311.02 |
| 2. Increase in the current period | 151,013,045.56 | 632,877,246.88 | 7,558,204.18 | 52,483,347.31 | 2,880,318.11 | 30,356,658.39 | 877,168,820.43 |
| (1) Provision | 151,013,045.56 | 632,872,183.02 | 7,558,204.18 | 50,011,368.54 | 2,763,797.81 | 30,356,658.39 | 874,575,257.50 |
| (2) Other increases | 5,063.86 | 2,471,978.77 | 116,520.30 | 2,593,562.93 | |||
| 3. Decrease in the current period | 121,015,799.77 | 73,342,805.62 | 1,306,097.59 | 13,314,795.23 | 944,910.65 | 569,393.44 | 210,493,802.30 |
| (1) Disposal or retirement | 120,872,229.63 | 65,141,974.38 | 1,306,097.59 | 12,828,466.86 | 467,403.23 | 569,393.44 | 201,185,565.13 |
| (2) Other decreases | 143,570.14 | 8,200,831.24 | 486,328.37 | 477,507.42 | 9,308,237.17 | ||
| 4. Ending balance | 2,514,930,534.00 | 11,352,561,859.41 | 131,476,406.41 | 607,096,660.71 | 46,526,695.00 | 1,160,479,173.62 | 15,813,071,329.15 |
| III. Impairment provision | |||||||
| 1. Opening balance | 12,344.37 | 22,288,724.08 | 43,047.04 | 2,940,752.08 | 25,284,867.57 | ||
| 2. Increase in the current period |
| (1) Provision | |||||||
| 3. Decrease in the current period | 696.64 | 696.64 | |||||
| (1) Disposal or retirement | 696.64 | 696.64 | |||||
| 4. Ending balance | 12,344.37 | 22,288,724.08 | 42,350.40 | 2,940,752.08 | 25,284,170.93 | ||
| IV. Book value | |||||||
| 1. Ending book value | 3,699,205,436.14 | 7,358,127,285.08 | 40,359,069.15 | 123,357,525.62 | 17,419,528.42 | 223,757,103.33 | 11,462,225,947.74 |
| 2. Beginning book value | 3,822,826,768.07 | 7,093,550,149.55 | 40,981,738.14 | 154,337,629.50 | 18,749,683.29 | 242,124,518.26 | 11,372,570,486.81 |
(2) Temporary idle fixed assets
Unit: CNY
| Item | Original book value | Accumulated depreciation | Impairment Provision | Book Value | Remarks |
| Machinery equipment | 257,610,681.21 | 232,976,866.13 | 6,661,184.75 | 17,972,630.33 | |
| Transportation equipment | 865,190.88 | 850,040.38 | 15,150.50 | ||
| Electronic equipment | 7,450.00 | 7,450.00 | |||
| Office equipment | 77,872.15 | 75,536.00 | 267.95 | 2,068.20 | |
| Others | 7,463,031.82 | 6,575,247.44 | 802,534.08 | 85,250.30 | |
| Total | 266,024,226.06 | 240,485,139.95 | 7,463,986.78 | 18,075,099.33 |
(3) Fixed assets without property ownership certificates
Unit: CNY
| Item | Book Value | Reasons for failure to obtain the certificate |
| Guanghan base project | 277,262,782.14 | The property ownership certificate will be applied for after the final account audit upon completion of the project |
| Project of exiting the city and entering the industrial park | 264,710,957.08 | It is a new plant, and the information is incomplete and currently being processed. |
Other description
(4) Impairment testing of fixed assets
□Applicable ?Not applicable
(5) Disposal of fixed assets
Unit: CNY
| Item | Ending balance | Opening balance |
| Houses and Buildings | 19,398.36 | 44,864.97 |
| Machinery equipment | 6,205,551.58 | 5,776,946.67 |
| Means of transport | 126,838.43 | 125,020.45 |
| Electronic equipment | 6,317.27 | 12,316.70 |
| Office equipment | 47,113.83 | 132,249.55 |
| Others | 1,653,492.89 | 1,624,280.43 |
| Total | 8,058,712.36 | 7,715,678.77 |
Other description:
16. Construction in progress
Unit: CNY
| Item | Ending balance | Opening balance |
| Project under construction | 750,571,700.84 | 816,484,299.18 |
| Total | 750,571,700.84 | 816,484,299.18 |
(1) Construction in progress
Unit: CNY
| Item | Ending balance | Opening balance | ||||
| Book balance | Impairment Provision | Book Value | Book balance | Impairment Provision | Book Value | |
| New and reconstructed investment project | 139,946,680.69 | 1,945,416.12 | 138,001,264.57 | 109,030,761.94 | 1,945,416.12 | 107,085,345.82 |
| Technical transformation investment project | 612,625,933.46 | 55,497.19 | 612,570,436.27 | 709,454,450.55 | 55,497.19 | 709,398,953.36 |
| Total | 752,572,614.15 | 2,000,913.31 | 750,571,700.84 | 818,485,212.49 | 2,000,913.31 | 816,484,299.18 |
(2) Changes in important construction in progress in the current period
Unit: CNY
| Project Name | Budget | Opening balance | Increase in the Current Period | Amount transferred to fixed assets in the current period | Other Decreases in the Current Period | Ending balance | Proportion of accumulated investment in constructions to budget | Project Progress | Cumulative amount of capitalized interest | Including: Capitalized interest amount during the current period | Capitalization rate of interest in current period | Capital source |
| R&D capacity improvement project of FAW Jiefang Qingdao Base | 651,579,440.00 | 216,719,303.35 | 146,054,477.28 | 362,773,780.63 | 55.68% | 82.76% | Others | |||||
| Business Integrating and Technology Upgrading for Light Vehicle Chassis in the Complete Vehicle | 227,508,500.00 | 13,655,092.51 | 67,921,039.94 | 81,576,132.45 | 43.82% | 42.69% | Others |
| Division of FAW Jiefang Qingdao Project | ||||||||||||
| Faw Jiefang Wuxi R&D Base Construction Project | 423,550,000.00 | 12,690,733.03 | 50,379,907.99 | 63,070,641.02 | 14.89% | 29.97% | Others | |||||
| Technical transformation project of integrated heavy duty AMT gearbox | 898,000,000.00 | 232,307,221.17 | 354,815,082.61 | 545,665,813.79 | 41,456,489.99 | 65.71% | 77.83% | Others | ||||
| Project of exiting the city and entering the industrial park | 936,068,800.00 | 19,204,724.39 | 19,204,724.39 | 71.53% | 93.70% | Others | ||||||
| E-Axle Assembly Pilot Line Project | 39,000,000.00 | 19,024,778.76 | 19,024,778.76 | 48.78% | 48.78% | Others | ||||||
| Drivetrai | 36,800,000.00 | 15,994,328.04 | 1,363,497.74 | 17,357,825.78 | 47.17% | 47.17% | Other |
| n Assembly NVH Bench Laboratory AC Motor Dynamometer Project | s | |||||||||||
| FAW Jiefang south new energy base project | 413,800,000.00 | 48,893,985.90 | 33,435,894.87 | 70,215,478.66 | 12,114,402.11 | 54.83% | 54.83% | Others | ||||
| New energy product introduction and smart logistics upgrade project | 79,820,000.00 | 10,322,123.89 | 1,330,045.51 | 11,652,169.40 | 71.27% | 94.64% | Others | |||||
| Heavy-Duty Vehicle Transmission Life Testing Rig Project | 20,250,000.00 | 9,875,983.28 | 1,432,729.20 | 11,308,712.48 | 55.85% | 55.85% | Others | |||||
| Automatic Transmission Test Rig | 19,100,000.00 | 9,369,998.38 | 939,138.05 | 10,309,136.43 | 53.97% | 53.97% | Others |
| Project | ||||||||||||
| Total | 3,745,476,740.00 | 608,058,272.70 | 657,671,813.19 | 615,881,292.45 | 649,848,793.44 |
(3) Impairment testing of projects under construction
□Applicable ?Not applicable
17. Productive biological assets
(1) Productive biological assets measured at cost
□Applicable ?Not applicable
(2) Impairing testing situation of productive biological assets measured at cost model
□Applicable ?Not applicable
(3) Productive biological assets measured at fair value
□Applicable ?Not applicable
18. Oil and gas assets
□Applicable ?Not applicable
19. Right-of-use assets
(1) Right-of-use assets
Unit: CNY
| Item | Houses and Buildings | Machinery equipment | Land | Total |
| I. Original book value | ||||
| 1. Opening balance | 173,847,035.89 | 54,778,761.06 | 17,260,643.29 | 245,886,440.24 |
| 2. Increase in the current period | 2,853,545.96 | 464,977.82 | 3,318,523.78 | |
| (1) Leasing | 2,853,545.96 | 464,977.82 | 3,318,523.78 | |
| 3. Decrease in the current period | 8,108,767.60 | 8,108,767.60 | ||
| (1) Lease expiration | 2,416,818.20 | 2,416,818.20 | ||
| (2) Other decreases | 5,691,949.40 | 5,691,949.40 | ||
| 4. Ending balance | 168,591,814.25 | 55,243,738.88 | 17,260,643.29 | 241,096,196.42 |
| II. Accumulated depreciation | ||||
| 1. Opening balance | 84,424,735.38 | 10,955,752.21 | 11,516,065.95 | 106,896,553.54 |
| 2. Increase in the current period | 16,663,555.45 | 5,516,624.25 | 1,497,009.26 | 23,677,188.96 |
| (1) Provision | 16,663,555.45 | 5,516,624.25 | 1,497,009.26 | 23,677,188.96 |
| 3. Decrease in | 6,728,827.73 | 6,728,827.73 |
| the current period | ||||
| (1) Disposal | ||||
| (2) Lease expiration | 2,108,786.72 | 2,108,786.72 | ||
| (3) Other decreases | 4,620,041.01 | 4,620,041.01 | ||
| 4. Ending balance | 94,359,463.10 | 16,472,376.46 | 13,013,075.21 | 123,844,914.77 |
| III. Impairment provision | ||||
| 1. Opening balance | ||||
| 2. Increase in the current period | ||||
| (1) Provision | ||||
| 3. Decrease in the current period | ||||
| (1) Disposal | ||||
| 4. Ending balance | ||||
| IV. Book value | ||||
| 1. Ending book value | 74,232,351.15 | 38,771,362.42 | 4,247,568.08 | 117,251,281.65 |
| 2. Beginning book value | 89,422,300.51 | 43,823,008.85 | 5,744,577.34 | 138,989,886.70 |
(2) Impairment testing situation of right-of-use assets
□Applicable ?Not applicable
Other description:
20. Intangible Assets
(1) Details of intangible assets
Unit: CNY
| Item | Land use right | Patent rights | Non-patented technology | Software | Total |
| I. Original book value | |||||
| 1. Opening balance | 2,594,295,359.22 | 507,713,333.30 | 565,194,081.77 | 3,667,202,774.29 | |
| 2. Increase in the current period | 14,370,333.50 | 39,422,142.50 | 53,792,476.00 | ||
| (1) Purchase | 8,651,499.88 | 36,342,701.47 | 44,994,201.35 | ||
| (2) Internal R&D | 980,512.13 | 980,512.13 | |||
| (3) Increase due to business combination |
| (4) Other increases | 4,738,321.49 | 3,079,441.03 | 7,817,762.52 | ||
| 3. Decrease in the current period | 11,590,528.41 | 11,590,528.41 | |||
| (1) Disposal | 6,852,206.92 | 6,852,206.92 | |||
| (2) Invalid and derecognized portion | |||||
| (3) Other decreases | 4,738,321.49 | 4,738,321.49 | |||
| 4. Ending balance | 2,594,295,359.22 | 522,083,666.80 | 593,025,695.86 | 3,709,404,721.88 | |
| II. Accumulated amortization | |||||
| 1. Opening balance | 596,783,473.72 | 338,000,836.46 | 293,984,683.46 | 1,228,768,993.64 | |
| 2. Increase in the current period | 27,006,811.89 | 16,338,264.50 | 58,057,907.75 | 101,402,984.14 | |
| (1) Provision | 27,006,811.89 | 15,973,233.03 | 58,057,907.75 | 101,037,952.67 | |
| (2) Other increases | 365,031.47 | 365,031.47 | |||
| 3. Decrease in the current period | 7,217,238.39 | 7,217,238.39 | |||
| (1) Disposal | 6,852,206.92 | 6,852,206.92 | |||
| (2) Invalid and derecognized portion | |||||
| (3) Other decreases | 365,031.47 | 365,031.47 | |||
| 4. Ending balance | 623,790,285.61 | 354,339,100.96 | 344,825,352.82 | 1,322,954,739.39 | |
| III. Impairment provision | |||||
| 1. Opening balance | |||||
| 2. Increase in the current period | |||||
| (1) Provision | |||||
| 3. Decrease in the current period | |||||
| (1) Disposal | |||||
| 4. Ending balance | |||||
| IV. Book value | |||||
| 1. Ending book value | 1,970,505,073.61 | 167,744,565.84 | 248,200,343.04 | 2,386,449,982.49 | |
| 2. Beginning book value | 1,997,511,885.50 | 169,712,496.84 | 271,209,398.31 | 2,438,433,780.65 |
The proportion of intangible assets formed through internal R&D to the balance of intangible assets at the end of
current period is 0.04%.
21. Deferred income tax assets and deferred income tax liabilities
(1) Deferred income tax assets not offset
Unit: CNY
| Item | Ending balance | Opening balance | ||
| Deductible temporary difference | Deferred Income tax assets | Deductible temporary difference | Deferred Income tax assets | |
| Impairment provision of assets | 625,888,003.09 | 96,276,501.14 | 677,552,365.56 | 118,050,995.83 |
| Unrealized profits of internal transactions | 173,759,629.21 | 43,439,907.30 | 173,759,629.21 | 43,439,907.30 |
| Deductible losses | 9,044,450,556.98 | 1,532,022,389.07 | 8,023,847,062.56 | 1,401,699,212.71 |
| Estimated liabilities | 710,046,828.43 | 103,354,745.17 | 643,639,504.01 | 105,676,319.80 |
| Employee compensation payable | 92,843,035.71 | 14,335,508.54 | 89,862,914.88 | 15,035,569.66 |
| Accrued expenses | 3,203,758,027.14 | 719,468,267.38 | 2,823,814,796.43 | 668,864,711.49 |
| Deferred income | 496,791,958.65 | 105,237,450.29 | 498,058,268.35 | 105,908,875.92 |
| Contract liabilities | 588,499,925.26 | 77,214,139.08 | 477,559,638.17 | 73,059,220.04 |
| Lease liabilities | 51,125,920.36 | 11,366,598.97 | 59,027,119.45 | 12,975,866.73 |
| Total | 14,987,163,884.83 | 2,702,715,506.94 | 13,467,121,298.62 | 2,544,710,679.48 |
(2) Deferred income tax liabilities not offset
Unit: CNY
| Item | Ending balance | Opening balance | ||
| Taxable temporary difference | Deferred income tax liabilities | Taxable temporary difference | Deferred income tax liabilities | |
| Depreciation of fixed assets with amortization period longer than tax preference period | 1,754,981,427.63 | 319,801,950.36 | 1,905,769,976.37 | 344,383,021.84 |
| Accrued interest income | 285,536,653.82 | 44,812,164.74 | 386,198,421.88 | 58,128,494.37 |
| Right-of-use assets | 49,982,944.28 | 11,417,515.49 | 57,431,098.06 | 12,560,241.88 |
| Total | 2,090,501,025.73 | 376,031,630.59 | 2,349,399,496.31 | 415,071,758.09 |
(3) Deferred tax assets or liabilities presented in net amount after offset
Unit: CNY
| Item | Ending Mutual Offset Amount of Deferred Tax Assets and Liabilities | Ending balance of deferred tax assets or liabilities after offset | Opening mutual offset amount of deferred tax assets and liabilities | Opening balance of deferred tax assets or liabilities after offset |
| Deferred Income tax assets | 2,702,715,506.94 | 2,544,710,679.48 |
| Deferred income tax liabilities | 376,031,630.59 | 415,071,758.09 |
(4) Details of unrecognized deferred tax assets
Unit: CNY
| Item | Ending balance | Opening balance |
| Deductible temporary difference | 524,871,458.61 | 577,137,993.79 |
| Deductible losses | 240,846,637.93 | 433,079,936.50 |
| Total | 765,718,096.54 | 1,010,217,930.29 |
(5) Deductible losses of unrecognized deferred tax assets will be due in the following years
Unit: CNY
| Year | Ending amount | Beginning balance | Remarks |
| 2026 | 324,798.62 | 1,441,940.00 | |
| 2027 | 3,524,136.57 | 3,524,136.57 | |
| 2028 | 6,764,901.92 | 201,247,514.48 | |
| 2029 | 31,407,588.07 | 28,041,132.70 | |
| 2032 | 198,825,212.75 | 198,825,212.75 | |
| Total | 240,846,637.93 | 433,079,936.50 |
Other description
22. Assets with restricted ownership or use right
Unit: CNY
| Item | Ending | Beginning | ||||||
| Book balance | Book Value | Restriction type | Restriction | Book balance | Book Value | Restriction type | Restriction | |
| Monetary capital | 50,473,277.23 | 50,473,277.23 | Housing maintenance fund, security deposit for three types of personnel (Main responsible manager, project manager, and | 50,667,927.65 | 50,667,927.65 | Housing maintenance fund, security deposit for three types of personnel and frozen funds | ||
| full-time safety production management personnel of the Construction Organization) | ||||||||
| Total | 50,473,277.23 | 50,473,277.23 | 50,667,927.65 | 50,667,927.65 |
Other description:
23. Notes payable
Unit: CNY
| Category | Ending balance | Opening balance |
| Commercial acceptance bill | 25,947,712,941.61 | 11,769,864,678.11 |
| Total | 25,947,712,941.61 | 11,769,864,678.11 |
The total amount of notes payable due but unpaid at the end of the current period is CNY 0.00.
24. Accounts payable
(1) Presentation of accounts payable
Unit: CNY
| Item | Ending balance | Opening balance |
| Payment for goods | 17,147,249,872.33 | 15,746,874,454.72 |
| Project and equipment payment | 331,095.28 | 71,355,989.71 |
| Expenses and others | 914,579,261.08 | 677,340,998.02 |
| Total | 18,062,160,228.69 | 16,495,571,442.45 |
25. Other payables
Unit: CNY
| Item | Ending balance | Opening balance |
| Dividends payable | 171,500.02 | 171,500.02 |
| Other payables | 5,193,749,030.50 | 5,304,885,545.16 |
| Total | 5,193,920,530.52 | 5,305,057,045.18 |
(1) Dividends payable
Unit: CNY
| Item | Ending balance | Opening balance |
| Ordinary stock dividends | 171,500.02 | 171,500.02 |
| Total | 171,500.02 | 171,500.02 |
Other description, including the disclosure of the reasons for not paying the important dividends payable for morethan 1 year:
(2) Other payables
1) Presentation of other payables by payment nature
Unit: CNY
| Item | Ending balance | Opening balance |
| Expenses payable | 3,533,091,016.38 | 3,611,643,900.11 |
| Margin, deposit | 237,654,900.20 | 310,785,014.96 |
| Project funds payable | 1,416,756,262.19 | 1,296,325,132.82 |
| Repurchase obligations of restricted shares | 6,246,851.73 | 86,131,497.27 |
| Total | 5,193,749,030.50 | 5,304,885,545.16 |
2) Other significant payables with aging over 1 year or overdue
Unit: CNY
| Item | Ending balance | Reasons for not being repaid or carried over |
| Eisenmann (Shanghai) Co., Ltd. | 15,722,294.45 | Project not completed |
| Hangzhou HIK Robot Co., Ltd. | 14,314,364.40 | Project not completed |
| FAW Mold Manufacturing Co., Ltd. | 11,480,090.27 | Project not completed |
| Jilin Hongze Construction Engineering Co., Ltd. | 11,429,681.82 | Project not completed |
| Wuhan Li’ao Automation Co., Ltd. | 8,670,040.00 | Project not completed |
| Total | 61,616,470.94 |
The other payables of the top five closing balances classified by the other payable parties in the current period areCNY 174,691,000.20, accounting for 3.36% of the total closing balance of other payables.
26. Advance receipts
(1) Presentation of advance receipts
Unit: CNY
| Item | Ending balance | Opening balance |
| Rental fee | 715,111.97 | 641,221.46 |
| Total | 715,111.97 | 641,221.46 |
27. Contract liabilities
Unit: CNY
| Item | Ending balance | Opening balance |
| Payment for goods | 537,992,732.13 | 1,863,445,370.73 |
| Others | 578,358,281.86 | 555,703,269.04 |
| Contract liabilities included in other current liabilities | -60,702,098.17 | -214,456,037.00 |
| Total | 1,055,648,915.82 | 2,204,692,602.77 |
28. Employee compensation payable
(1) Presentation of employee compensation payable
Unit: CNY
| Item | Opening balance | Increase in the Current Period | Decrease in the Current Period | Ending balance |
| I. Short-term compensation | 296,724,446.00 | 2,037,364,590.82 | 1,837,942,253.12 | 496,146,783.70 |
| II. Post-employment benefits-defined contribution plan | 16,284,549.40 | 319,124,786.63 | 328,212,281.77 | 7,197,054.26 |
| III. Dismissal welfare | 38,420,889.80 | 11,011,318.43 | 21,286,177.44 | 28,146,030.79 |
| IV. Other benefits due within one year | 50,609,999.99 | 21,659,867.99 | 28,950,132.00 | |
| Total | 402,039,885.19 | 2,367,500,695.88 | 2,209,100,580.32 | 560,440,000.75 |
(2) Presentation of short-term compensation
Unit: CNY
| Item | Opening balance | Increase in the Current Period | Decrease in the Current Period | Ending balance |
| 1. Wages, bonuses, allowances and subsidies | 1,470,590,674.49 | 1,286,614,267.92 | 183,976,406.57 | |
| 2. Employee welfare expenses | 97,868,160.35 | 97,868,160.35 | ||
| 3. Social insurance premiums | 3,927,312.53 | 178,184,058.90 | 180,911,647.03 | 1,199,724.40 |
| Including: medical insurance premiums | 3,927,312.53 | 167,121,573.85 | 169,849,161.98 | 1,199,724.40 |
| Work-related injury insurance premiums | 9,437,602.77 | 9,437,602.77 | ||
| Maternity insurance premium | 1,624,882.28 | 1,624,882.28 | ||
| 4. Housing provident fund | 234,197,241.76 | 234,197,241.76 | ||
| 5. Labor union funds and employee education funds | 292,797,133.47 | 56,524,455.32 | 38,350,936.06 | 310,970,652.73 |
| Total | 296,724,446.00 | 2,037,364,590.82 | 1,837,942,253.12 | 496,146,783.70 |
(3) Presentation of defined contribution plan
Unit: CNY
| Item | Opening balance | Increase in the Current Period | Decrease in the Current Period | Ending balance |
| 1. Basic endowment insurance | 13,909,612.19 | 214,562,327.32 | 228,471,939.51 |
| 2. Unemployment insurance premiums | 2,374,937.21 | 6,976,071.75 | 9,351,008.96 | |
| 3. Payment of enterprise annuity | 97,586,387.56 | 90,389,333.30 | 7,197,054.26 | |
| Total | 16,284,549.40 | 319,124,786.63 | 328,212,281.77 | 7,197,054.26 |
Other description
29. Taxes payable
Unit: CNY
| Item | Ending balance | Opening balance |
| VAT | 42,773,492.98 | 33,868,153.98 |
| Corporate income tax | 24,512,846.83 | 12,652,169.68 |
| Individual income tax | 6,698,386.44 | 44,332,949.39 |
| Urban maintenance and construction tax | 1,451,357.79 | 1,563,765.87 |
| Property tax | 8,153,574.92 | 12,070,417.66 |
| Land use tax | 4,260,011.07 | 4,302,440.45 |
| Education surcharges | 3,508,165.78 | 3,588,461.26 |
| Other taxes | 15,015,489.84 | 16,844,015.03 |
| Total | 106,373,325.65 | 129,222,373.32 |
Other description
30. Non-current liabilities due within one year
Unit: CNY
| Item | Ending balance | Opening balance |
| Lease liabilities due within one year | 14,750,421.22 | 27,171,195.40 |
| Total | 14,750,421.22 | 27,171,195.40 |
Other description:
31. Other current liabilities
Unit: CNY
| Item | Ending balance | Opening balance |
| Taxes to be written off | 60,702,098.17 | 214,456,037.00 |
| Total | 60,702,098.17 | 214,456,037.00 |
Other description:
32. Lease liabilities
Unit: CNY
| Item | Ending balance | Opening balance |
| Lease payment | 52,833,724.20 | 61,122,271.61 |
| Unrecognized financing charges | -2,559,782.51 | -3,457,062.08 |
| Lease liabilities due within one | -14,750,421.22 | -27,171,195.40 |
| year | ||
| Total | 35,523,520.47 | 30,494,014.13 |
Other notes: The interest of lease liabilities accrued is CNY 1.0792 million from January to June in 2024.
33. Long-term employee compensation payable
(1) Long-term employee compensation payable
Unit: CNY
| Item | Ending balance | Opening balance |
| I. Post-employment welfare - net liabilities of defined benefit plan | 645,190,132.01 | 667,280,000.00 |
| II. Dismissal welfare | 91,239,962.81 | 94,708,523.04 |
| Long-term employee compensation payable due within one year | -57,096,162.79 | -89,030,889.79 |
| Total | 679,333,932.03 | 672,957,633.25 |
34. Estimated liabilities
Unit: CNY
| Item | Ending balance | Opening balance | Reason |
| Pending litigation | 8,594,661.90 | 7,321,618.04 | Product quality disputes |
| Product quality assurance | 684,163,548.30 | 711,161,690.70 | Expenses for return, replacement and repair |
| Others | 17,226,995.29 | 17,226,995.29 | Labor social security |
| Total | 709,985,205.49 | 735,710,304.03 |
Other description, including important assumptions and estimation descriptions related to important estimatedliabilities:
35. Deferred income
Unit: CNY
| Item | Opening balance | Increase in the Current Period | Decrease in the Current Period | Ending balance | Reason |
| Government subsidies | 2,983,678,367.53 | 111,030,641.83 | 134,400,820.98 | 2,960,308,188.38 | |
| Total | 2,983,678,367.53 | 111,030,641.83 | 134,400,820.98 | 2,960,308,188.38 |
Other description:
36. Share capital
Unit: CNY
| Opening balance | Increase/Decrease (+/-) | Ending balance | |||||
| Issue of New Shares | Bonus shares | Share Transferred from Accumulation | Others | Subtotal | |||
| Fund | |||||||
| Total shares | 4,636,485,668.00 | -12,621,954.00 | -12,621,954.00 | 4,623,863,714.00 |
Other description:
37. Capital reserves
Unit: CNY
| Item | Opening balance | Increase in the Current Period | Decrease in the Current Period | Ending balance |
| Capital premium (stock premium) | 9,341,522,399.02 | 67,262,691.54 | 9,274,259,707.48 | |
| Other capital reserves | 1,001,896,552.71 | 605,418.43 | 1,002,501,971.14 | |
| Total | 10,343,418,951.73 | 605,418.43 | 67,262,691.54 | 10,276,761,678.62 |
Other description, including increase/decrease in the current period and reasons for change:
(1) The capital reserve (share premium) decreased by CNY 67,262,691.54 in the current period due to the repurchaseand cancellation of equity incentive shares of the Company.
(2) The capital reserve (other capital reserves) increased by CNY 605,418.43 in the current period due to therecognition of share-based payment expenses during the vesting period of the Company’s equity incentive plan.
38. Treasury shares
Unit: CNY
| Item | Opening balance | Increase in the Current Period | Decrease in the Current Period | Ending balance |
| Treasury shares | 86,131,497.27 | 79,884,645.54 | 6,246,851.73 | |
| Total | 86,131,497.27 | 79,884,645.54 | 6,246,851.73 |
Other description, including increase/decrease in the current period and reasons for change:
39. Other comprehensive incomes
Unit: CNY
| Item | Opening balance | Amount Incurred in Current Period | Ending balance | |||||
| Amount incurred before income tax in the current period | Less: Current Profits or Losses Transferred from Other Comprehensive Income Recorded in the Previous Period | Less: Current Retained Earnings Transferred from Other Comprehensive Income Recorded in the Previous Period | Less: income tax expenses | After-tax amount attributable to parent company | After-tax amount attributable to minority shareholders | |||
| I. Other | -8,735,366.35 | 5,679,897.29 | -3,055,469.06 | |||||
| comprehensive incomes that cannot be reclassified into profits or losses | ||||||||
| Including: changes arising from re-measurement of the defined benefit plan | -9,210,000.00 | -9,210,000.00 | ||||||
| Other comprehensive incomes that cannot be reclassified into profit or loss under the equity method | 474,633.65 | 5,679,897.29 | 6,154,530.94 | |||||
| II. Other comprehensive incomes that will be reclassified into profits or losses | 221,256.25 | -363,765.87 | -142,509.62 | |||||
| Including: other comprehensive incomes that can be reclassified into profits or losses under the equity | 375,337.28 | -96,836.64 | 278,500.64 |
| method | ||||||||
| Translation difference in foreign currency financial statements | -154,081.03 | -266,929.23 | -421,010.26 | |||||
| Total other comprehensive incomes | -8,514,110.10 | 5,316,131.42 | -3,197,978.68 |
Other description, including the adjustment of the effective part of cash flow hedging profit or loss transferred tothe initially recognized amount of the hedged item:
40. Special reserves
Unit: CNY
| Item | Opening balance | Increase in the Current Period | Decrease in the Current Period | Ending balance |
| Work safety cost | 319,314,527.85 | 6,016,604.46 | 15,216,437.91 | 310,114,694.40 |
| Total | 319,314,527.85 | 6,016,604.46 | 15,216,437.91 | 310,114,694.40 |
Other description, including increase/decrease in the current period and reasons for change:
41. Surplus reserves
Unit: CNY
| Item | Opening balance | Increase in the Current Period | Decrease in the Current Period | Ending balance |
| Statutory surplus reserve | 2,792,881,825.16 | 2,792,881,825.16 | ||
| Discretionary surplus reserves | 297,526,491.71 | 297,526,491.71 | ||
| Total | 3,090,408,316.87 | 3,090,408,316.87 |
Description of surplus reserve, including increase/decrease and reasons for change in the current period:
42. Undistributed profits
Unit: CNY
| Item | Current period | Previous period |
| Undistributed profits at the end of the previous period before adjustment | 6,191,777,512.32 | 5,460,939,601.36 |
| Undistributed profits at the beginning of the current period after adjustment | 6,191,777,512.32 | 5,460,939,601.36 |
| Add: net profit attributable to owners of parent company in the current period | 478,251,870.50 | 401,336,302.35 |
| Less: ordinary stock dividends payable | 693,579,557.10 | |
| Undistributed profits at the end of the period | 5,976,449,825.72 | 5,862,275,903.71 |
Details of adjustment to undistributed profits at the beginning of period:
1) The retroactive adjustment of the Accounting Standards for Business Enterprises and its relevant newregulations impacts the opening undistributed profit by CNY 0.00.
2) The undistributed profit at the beginning of the period affected by changes in accounting policies is CNY 0.00.
3) The undistributed profit at the beginning of the period affected by correction of significant accounting errors isCNY 0.00.
4) The change in combination scope caused by the same control impacts the opening undistributed profit by CNY
0.00.
5) Other adjustments affect the opening undistributed profit by CNY 0.00 in total.
43. Operating income and operating cost
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period | ||
| Income | Cost | Income | Cost | |
| Main business | 34,781,334,502.47 | 32,601,996,683.55 | 32,139,093,286.21 | 29,929,907,291.11 |
| Other business | 820,958,136.99 | 650,423,218.46 | 875,568,627.92 | 660,616,486.91 |
| Total | 35,602,292,639.46 | 33,252,419,902.01 | 33,014,661,914.13 | 30,590,523,778.02 |
Other descriptionInformation related to the transaction price allocated to the remaining performance obligations: The incomecorresponding to the performance obligations that have been signed but not yet fulfilled or completed at the end ofthe reporting period is CNY 578,358,281.86, of which CNY 289,179,140.93 is expected to be recognized in 2024and CNY 289,179,140.93 is expected to be recognized in 2025.Information related to variable consideration in the Contract:
Other description
44. Taxes and surcharges
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Urban maintenance and construction tax | 8,735,866.96 | 19,546,313.81 |
| Education surcharges | 6,239,901.02 | 14,049,726.20 |
| Property tax | 36,577,269.48 | 27,465,239.54 |
| Land use tax | 21,263,435.84 | 17,742,508.40 |
| Vehicle and vessel use tax | 55,080.14 | 51,933.49 |
| Stamp duty | 32,322,074.63 | 30,606,438.19 |
| Environmental protection tax | 320,082.33 | 427,254.80 |
| Others | -144,396.20 | -47,844.63 |
| Total | 105,369,314.20 | 109,841,569.80 |
Other description:
45. Administrative expenses
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Employee compensation | 435,912,218.49 | 554,575,877.44 |
| Repair cost of fixed assets | 74,393,472.71 | 86,296,341.73 |
| Depreciation cost | 70,160,216.19 | 62,859,036.45 |
| Amortization of intangible assets | 42,960,831.97 | 45,228,775.75 |
| Labor outsourcing fee | 19,200,519.52 | 20,600,631.57 |
| Information system service fee | 15,385,298.95 | 18,919,334.81 |
| Sewage charge | 7,020,968.97 | 9,479,418.73 |
| Kinetic energy and workshop heating cost | 16,359,943.57 | 15,614,154.67 |
| Publicity fee | 733,152.88 | 2,792,288.47 |
| Test and inspection fee | 8,512,181.61 | 5,943,937.13 |
| Others | 49,127,040.10 | 48,851,266.17 |
| Total | 739,765,844.96 | 871,161,062.92 |
Other description
46. Sales expenses
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Product quality assurance fee | 354,345,170.32 | 372,020,904.40 |
| Employee compensation | 261,388,918.42 | 230,992,397.31 |
| Storage fee | 54,530,428.75 | 49,482,396.12 |
| Promotion fee | 2,072,688.58 | 5,652,694.61 |
| Packing cost | 63,410,413.70 | 36,501,913.05 |
| Business publicity fee | 7,335,461.53 | 5,491,042.24 |
| Travel expense | 42,282,800.13 | 32,468,745.00 |
| Sales service fee | 7,063,389.32 | 7,172,990.92 |
| Rental fee | 25,362,533.68 | 23,305,950.67 |
| Insurance premium | 376,867.84 | 2,116,210.71 |
| Others | 17,298,425.55 | 9,617,573.30 |
| Total | 835,467,097.82 | 774,822,818.33 |
Other description:
47. R&D expenses
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Material procurement and consumption | 58,713,565.00 | 83,066,490.71 |
| Fuel and power | 30,352,085.23 | 37,703,182.12 |
| Employee compensation | 762,070,442.14 | 781,461,814.17 |
| Depreciation and amortization | 127,558,615.73 | 123,318,628.06 |
| Technological development | 21,371,901.93 | 55,353,771.51 |
| Test and inspection fee | 54,071,350.93 | 80,965,496.03 |
| Road testing expense | 48,592,572.48 | 44,968,204.89 |
| Others | 32,852,743.53 | 41,210,116.05 |
| Total | 1,135,583,276.97 | 1,248,047,703.54 |
Other description
48. Financial expenses
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Interest income | -330,521,706.02 | -332,873,373.32 |
| Net actuarial interest | 395,666.67 | 463,219.03 |
| Handling charge of financial institutions | 213,654.95 | 62,645.64 |
| Interest expense | 1,431,811.40 | 2,201,462.83 |
| Exchange gain or loss | 178,734.27 | -134,786.41 |
| Others | -66,474,373.18 | -85,382,599.83 |
| Total | -394,776,211.91 | -415,663,432.06 |
Other description
49. Other income
Unit: CNY
| Sources of other income | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Government subsidies | 209,501,338.40 | 193,604,585.44 |
| Service charges of individual income tax withholding | 2,035,928.98 | 2,051,784.67 |
| Additional tax credit of VAT | 142,242,391.94 | |
| Total | 353,779,659.32 | 195,656,370.11 |
50. Investment income
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Income from long-term equity investments accounted for using the equity method | 213,988,413.65 | 234,054,148.54 |
| Others | -112,101,568.99 | -100,436,268.67 |
| Total | 101,886,844.66 | 133,617,879.87 |
Other description
51. Credit impairment loss
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Bad debt losses of notes receivable | 21,670.17 | -69,181.55 |
| Bad debt losses of accounts receivable | -26,638,370.74 | -32,194,937.26 |
| Bad debt losses of other receivables | 21,085,584.29 | -288,813.51 |
| Bad debt losses of long-term receivables | -3,061,966.20 | -2,927,793.76 |
| Total | -8,593,082.48 | -35,480,726.08 |
Other description
52. Asset impairment loss
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| I. Inventory falling price loss and contract performance cost impairment loss | -76,279,557.91 | -35,182,158.70 |
| II. Impairment loss of contract assets | -387,041.28 | -142,013.25 |
| Total | -76,666,599.19 | -35,324,171.95 |
Other description:
53. Income from assets disposal
Unit: CNY
| Sources of income from assets disposal | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Gains from disposal of fixed assets | 746,088.82 | 98,132,494.11 |
54. Non-operating income
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period | Amount included in current non-recurring profits and losses |
| Unpayable amount recognized | 11,378,406.14 | 581,828.00 | 11,378,406.14 |
| Income from compensation, liquidated damages and penalties | 6,971,354.67 | 7,871,739.74 | 6,971,354.67 |
| Gains from damage and retirement of non-current assets | 46,052.83 | 695,112.91 | 46,052.83 |
| Others | 9,710,410.31 | 393,806.14 | 9,710,410.31 |
| Total | 28,106,223.95 | 9,542,486.79 | 28,106,223.95 |
Other description:
55. Non-operating expenses
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period | Amount included in current non-recurring profits and losses |
| Donation | 2,978,920.00 | 2,000,000.00 | 2,978,920.00 |
| Losses from damage and retirement of non-current assets | 989,080.93 | 1,297,109.63 | 989,080.93 |
| Expenditure of liquidated damages and penalties | -210,191.05 | 435,083.63 | -210,191.05 |
| Others | 24,732.00 | 69,570.55 | 24,732.00 |
| Total | 3,782,541.88 | 3,801,763.81 | 3,782,541.88 |
Other description:
56. Income tax expenses
(1) Statement of income tax expenses
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Current income tax expenses | 42,733,093.07 | 42,401,718.66 |
| Deferred income tax expense | -197,044,954.96 | -245,467,038.39 |
| Total | -154,311,861.89 | -203,065,319.73 |
(2) Adjustment process of accounting profits and income tax expenses
Unit: CNY
| Item | Amount Incurred in Current Period |
| Total profits | 323,940,008.61 |
| Income tax expense calculated at statutory/applicable tax rate | 80,985,002.15 |
| Effect of different tax rates applied to subsidiaries | -12,357,345.92 |
| Effect of adjustment to income tax of previous periods | -25,280,791.16 |
| Effect of non-deductible costs, expenses and losses | 550,302.01 |
| Effects of deductible temporary differences or deductible losses of deferred income tax assets unrecognized in the current period | 841,613.84 |
| Profit or loss of joint ventures and associated enterprises calculated by equity method | -51,587,576.03 |
| Tax effect of R&D expenses plus deduction (to be listed with “-”) | -134,396,432.98 |
| Tax effect of unrecognized deductible losses and deductible temporary difference | -13,066,633.80 |
| Others | |
| Income tax expenses | -154,311,861.89 |
Other description
57. Other comprehensive incomes
For details, please refer to 39 “Other comprehensive income” in VII “Notes to Items in Consolidated FinancialStatements” of Section X - Financial Report.
58. Items of cash flow statement
(1) Cash related to operating activities
Other cash received related to operating activities
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Bank interest | 397,148,937.72 | |
| Collection and payment | 8,170,165.98 | 9,286,574.17 |
| Government subsidies received | 184,296,132.42 | 89,195,336.75 |
| Deposits received | 9,510,303.41 | |
| Rental fee received | 963,013.62 | 2,874,590.58 |
| Fines and indemnities received | 3,043,576.01 | 4,419,145.87 |
| Recovery of reserve funds | 468,225.38 | 538,760.42 |
| Refund of handling fees | 884,632.38 | 803,868.95 |
| Other current accounts | 161,576,775.16 | 534,529,346.19 |
| Total | 766,061,762.08 | 641,647,622.93 |
Description of other cash received related to operating activities:
Other cash paid related to operating activities
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Out-of-pocket expenses | 491,987,715.82 | 494,020,512.30 |
| Current account | 451,612,329.19 | 455,747,557.22 |
| Donations | 2,978,920.00 | 2,000,000.00 |
| Total | 946,578,965.01 | 951,768,069.52 |
Description of other cash payments related to operating activities:
(2) Cash related to investing activities
Other cash received related to investing activities
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Interest received | 368,529,711.02 |
| Total | 368,529,711.02 |
Description of other cash received related to investing activities:
(3) Cash related to financing activities
Other cash paid related to financing activities
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Amount paid to repay lease liabilities | 11,981,702.80 | 19,709,605.31 |
| Total | 11,981,702.80 | 19,709,605.31 |
Description of other cash payments related to financing activities:
Changes in liabilities arising from financing activities
□Applicable ?Not applicable
59 Supplementary information to cash flow statement
(1) Supplementary information to cash flow statement
Unit: CNY
| Supplementary information | Amount in the current period | Amount of the Previous Period |
| 1. Reconciliation of net profit to cash flows from operating activities: | ||
| Net Profit | 478,251,870.50 | 401,336,302.35 |
| Add: impairment provision of assets | 85,259,681.67 | 70,804,898.03 |
| Depreciation of fixed assets, depletion of oil and gas assets and productive biological assets | 888,228,121.73 | 806,546,681.57 |
| Depreciation of right-of-use asset | 796,214.19 | 5,115,821.82 |
| Amortization of intangible assets | 50,898,373.61 | 52,772,614.33 |
| Amortization of long-term deferred expenses | ||
| Losses from disposal of fixed assets, intangible assets and other long-term assets (incomes to be listed with “-”) | -746,088.82 | -98,132,494.11 |
| Loss from retirement of fixed assets (incomes to be listed with “-”) | 989,080.93 | 1,297,109.63 |
| Loss from changes in fair value (incomes to be listed with “-”) | ||
| Financial expenses (incomes to be listed with “-”) | -317,865,186.72 | -330,682,164.07 |
| Investment losses (incomes to be listed with “-”) | -101,886,844.66 | -133,617,879.87 |
| Decrease of deferred income tax assets (increase to be listed with “-”) | -158,004,827.46 | -248,346,478.93 |
| Increases of deferred income tax liabilities (decrease to be listed with “-”) | -39,040,127.50 | 1,005,800.22 |
| Decrease in inventories (increase to be listed with “-”) | 1,630,687,452.61 | -1,448,702,170.39 |
| Decrease in operating receivables (increase to be listed with “-”) | -14,800,044,542.39 | -9,607,002,028.80 |
| Increase in operating items payable (decrease to be listed with “-”) | 16,555,976,890.53 | 17,346,803,689.10 |
| Others | -32,570,012.60 | -105,040,323.41 |
| Net cash flows from operating activities | 4,240,930,055.62 | 6,714,159,377.47 |
| 2. Significant investment and financing activities not involving cash deposit and withdrawal: | ||
| Conversion of debt into capital | ||
| Convertible corporate bonds within one year | ||
| Fixed assets acquired under financial lease | ||
| 3. Net changes in cash and cash equivalents: | ||
| Ending balance of cash | 25,239,787,245.83 | 26,430,438,475.01 |
| Less: opening balance of cash | 22,483,844,553.59 | 20,697,669,726.18 |
| Add: ending balance of cash equivalents | ||
| Less: opening balance of cash equivalents | ||
| Net increase in cash and cash equivalents | 2,755,942,692.24 | 5,732,768,748.83 |
(2) Composition of cash and cash equivalents
Unit: CNY
| Item | Ending balance | Opening balance |
| I. Cash | 25,239,787,245.83 | 22,483,844,553.59 |
| II. Cash equivalents | ||
| VI. Balance of ending cash and cash equivalents | 25,239,787,245.83 | 22,483,844,553.59 |
60 Foreign currency monetary items
(1) Foreign currency monetary items
Unit: CNY
| Item | Foreign Currency Balance at the End of the Period | Exchange rate | Ending Balance Converted into CNY |
| Monetary capital | |||
| Including: USD | |||
| EUR | 1,007,820.69 | 7.6617 | 7,721,619.78 |
| HKD | |||
| Accounts receivable | |||
| Including: USD | |||
| EUR | |||
| HKD | |||
| Long-term loans | |||
| Including: USD | |||
| EUR |
| HKD |
Other description:
(2) Description of overseas operating entities, including the disclosure of main overseas business place,recording currency and selection basis, or changes in the recording currency (if any) for important overseasoperating entities.
□Applicable ?Not applicable
61. Lease
(1) The Company acting as the lessee
?Applicable □Not applicableVariable lease payments not included in the measurement of lease liabilities
□Applicable ?Not applicable
Lease expenses for simplified short-term leases or low-value asset leases?Applicable □Not applicable
| Item | Amount incurred in the current period (CNY) |
| Short-term lease expense | 20,698,594.18 |
| Low-value asset lease expense | |
| Variable lease payments not included in the measurement of lease liabilities | |
| Total | 20,698,594.18 |
Circumstances involving sale and leaseback transactions
(2) The Company acting as the lessor
Operating lease with the Company acting as the lessor
□Applicable ?Not applicable
Financing lease with the Company acting as the lessor
□Applicable ?Not applicable
Yearly undiscounted lease receipts for the next five years
□Applicable ?Not applicable
Reconciliation Statement for Undiscounted Lease Receipts and Net Lease Investments
(3) Profits and losses of financing lease sales recognized as a manufacturer or distributor
□Applicable ?Not applicable
VIII. R&D Expenditures
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Including: Expensed R&D expenditure | 1,135,583,276.97 | 1,248,047,703.54 |
| Capitalized R&D expenditure | 113,944,595.36 |
1. R&D projects eligible for capitalization
Unit: CNY
| Item | Opening balance | Increase in the Current Period | Decrease in the Current Period | Ending balance | ||
| Internal development expenditures | Others | Recognized as intangible assets | Transferred to current profits and losses | |||
| 9130102303 | 404,305.77 | 404,305.77 | ||||
| 9130012317 | 980,512.13 | 980,512.13 | ||||
| A2205 | 5,393,345.15 | 9,826,144.18 | 15,219,489.33 | |||
| A2207 | 9,870,532.31 | 11,292,856.19 | 21,163,388.50 | |||
| A2208 | 12,756,268.49 | 8,556,661.39 | 21,312,929.88 | |||
| A2209 | 26,396,041.18 | 1,849,888.88 | 28,245,930.06 | |||
| A2305 | 12,547,492.73 | 16,144,515.66 | 28,692,008.39 | |||
| A2306 | 16,094,984.19 | 10,183,762.22 | 26,278,746.41 | |||
| A2307 | 2,723,108.10 | 13,618,283.59 | 16,341,391.69 | |||
| A2308 | 12,945,847.92 | 16,023,783.19 | 28,969,631.11 | |||
| T2208 | 8,944,559.08 | 10,512,100.27 | 19,456,659.35 | |||
| T2209 | 2,201,651.44 | 3,180,522.13 | 5,382,173.57 | |||
| T2303 | 752,935.81 | 752,935.81 | ||||
| XC2411020 | 1,553,097.79 | 1,553,097.79 | ||||
| XC2411030 | 1,339,911.45 | 1,339,911.45 | ||||
| XC2411089 | 760,229.42 | 760,229.42 | ||||
| XC2411098 | 5,889,217.40 | 5,889,217.40 | ||||
| XC2411107 | 1,075,867.89 | 1,075,867.89 | ||||
| Total | 109,873,830.59 | 113,944,595.36 | 980,512.13 | 222,837,913.82 | ||
Significant capitalized R&D projects
| Item | R&D progress | Expected completion time | Expected generation method of economic benefits | Time point of capitalization starting | Specific basis for capitalization starting |
| 9130102303 | The review of sample boxes has completed and the current stage is the stage of product freezing for production | April 30, 2025 | Production and sales | June 24, 2024 | Being adopted by consideration and decision-making at the project review |
| preparation start | meeting | ||||
| 9130012317 | The trial production of sample machines has completed and the current stage is the stage of design and verification | June 30, 2024 | Production and sales | January 24, 2024 | Being adopted by consideration and decision-making at the project review meeting |
| A2205 | Production preparation start | June 30, 2026 | Production and sales | January 31, 2023 | Being adopted by consideration and decision-making at the project review meeting |
| A2207 | Production preparation start | June 30, 2026 | Production and sales | January 31, 2023 | Being adopted by consideration and decision-making at the project review meeting |
| A2208 | Production preparation start | June 30, 2026 | Production and sales | January 31, 2023 | Being adopted by consideration and decision-making at the project review meeting |
| A2209 | Trial production stage | May 31, 2024 | Production and sales | January 31, 2023 | Being adopted by consideration and decision-making at the project review meeting |
| A2305 | Engineering design and verification stage | February 28, 2026 | Production and sales | March 31, 2023 | Being adopted by consideration and decision-making at the project review meeting |
| A2306 | Engineering design and verification stage | December 31, 2024 | Production and sales | March 31, 2023 | Being adopted by consideration and decision-making at the project review meeting |
| A2307 | Engineering design and verification stage | February 28, 2026 | Production and sales | March 31, 2023 | Being adopted by consideration and decision-making at the project review meeting |
| A2308 | Engineering design and verification stage | March 31, 2026 | Production and sales | January 31, 2023 | Being adopted by consideration and decision-making at the project review meeting |
| T2208 | Engineering design and verification stage | March 31, 2026 | Production and sales | January 31, 2023 | Being adopted by consideration and decision-making at the project review meeting |
| T2209 | Trial production stage | December 31, 2024 | Production and sales | January 31, 2023 | Being adopted by consideration and decision-making at the project review meeting |
| T2303 | The production preparation start has completed, and the current stage is the stage of product freezing and trial production | December 31, 2024 | Production and sales | June 24, 2024 | Being adopted by consideration and decision-making at the project review meeting |
| XC2411020 | The design scheme | December 31, | Production | February 1, | Being adopted |
| freezing has completed, and the current stage is the stage of design and verification | 2024 | and sales | 2024 | by consideration and decision-making at the project review meeting | |
| XC2411030 | The design scheme freezing has completed, and the current stage is the stage of design and verification | December 31, 2024 | Production and sales | February 1, 2024 | Being adopted by consideration and decision-making at the project review meeting |
| XC2411089 | The design scheme freezing has completed, and the current stage is the stage of design and verification | September 30, 2024 | Production and sales | March 1, 2024 | Being adopted by consideration and decision-making at the project review meeting |
| XC2411098 | The project approval has completed, and the current stage is the stage for trial production | November 30, 2024 | Production and sales | January 24, 2024 | Being adopted by consideration and decision-making at the project review meeting |
| XC2411107 | The trial production of sample machines has completed, and the current stage is the stage of development for machinery combined with sample machines A and B | December 31, 2024 | Production and sales | March 1, 2024 | Being adopted by consideration and decision-making at the project review meeting |
IX. Changes in Consolidation Scope
(1) Business merger under different control
(1) Profits or losses arising from remeasurement of equity held before the purchase date at fair valueWhether there are transactions that achieve the business merger through multiple transactions and obtain controlduring the reporting period
□Yes ?No
2. Others: None
X. Equity in Other Entities
1. Equity in subsidiaries
(1) Composition of the enterprise group
Unit: CNY
| Name of subsidiary | Registered Capital | Principal business place | Registered address | Nature of business | Share proportion | Way of acquisition | |
| Direct | Indirect | ||||||
| Jiefang Limited | 10,803,012,510.01 | Changchun | Changchun | Vehicle manufacturing | 100.00% | Business merger under common control | |
| FAW Jiefang (Qingdao) Automotive Co., Ltd. | 802,000,000.00 | Qingdao | Qingdao | Vehicle manufacturing and sales | 100.00% | Business merger under common control | |
| FAW Jiefang Dalian Diesel Engine Co., Ltd. | 1,400,000,000.00 | Dalian | Dalian | Automotive engine manufacturing | 100.00% | Business merger under common control | |
| Wuxi Dahao Power Co., Ltd. | 38,094,059.61 | Wuxi | Wuxi | Manufacturing of automotive components and accessories | 100.00% | Business merger under common control | |
| FAW Jiefang Austria R&D Co., Ltd. | 15,765,000.00 | Austria | Austria | Technology research and development | 100.00% | Business merger under common control | |
| FAW Jiefang Automotive Sales Co., Ltd. | 200,000,000.00 | Changchun | Changchun | Vehicle sales | 100.00% | Establishment by investment | |
| FAW Jiefang Uni-D (Tianjin) Technology Industry Co., Ltd. | 90,000,000.00 | Tianjin | Tianjin | Technical services and other services | 100.00% | Establishment by investment | |
Description of the fact that the shareholding proportion in subsidiaries is different from the proportion of votingrights: noneBasis for holding half or less of the voting rights but still controlling the investee, and for holding more than halfof the voting rights but not controlling the investee: none
Basis for control of important structured entities included in the consolidation scope: noneBasis for determining whether the Company is an agent or a principal: noneOther description:
2. Equities in joint ventures or associated enterprise
(1) Important joint ventures or associated enterprises
| Name of Joint Ventures or Associated Enterprises | Principal business place | Registered address | Nature of business | Share proportion | Accounting Treatment Method for Investment in Joint Ventures or Associated Enterprises | |
| Direct | Indirect | |||||
| First Automobile Finance Co., Ltd. | Changchun | Changchun | Financial services | 21.84% | Equity method | |
| Sanguard Automobile Insurance Co., Ltd. | Changchun | Changchun | Financial insurance | 17.50% | Equity method | |
| FAW Changchun Ansteel Steel Processing and Distribution Co., Ltd. | Changchun | Changchun | Industrial manufacturing | 40.00% | Equity method | |
| FAW Changchun Baoyou Jiefang Steel Processing and Distribution Co., Ltd. | Changchun | Changchun | Industrial manufacturing | 21.81% | Equity method | |
| Changchun Wabco Automotive Control System Co., Ltd. | Changchun | Changchun | Manufacturing of automotive components and accessories | 40.00% | Equity method | |
| Suzhou Zhito Technology Co., Ltd. | Suzhou | Suzhou | Research and experimental development | 25.68% | Equity method | |
| FAW Jiefang Fujie (Tianjin) Technology Industry Co., Ltd. | Tianjin | Tianjin | Software and information technology services | 10.00% | Equity method | |
| SmartLink | Nanjing | Nanjing | Software and information technology services | 35.00% | Equity method | |
| Foshan Diyiyuan New Energy Technology Co., Ltd. | Foshan | Foshan | Manufacturing and technical services | 45.00% | Equity method | |
| Changchun Automotive Test Center Co., Ltd. | Changchun | Changchun | Technical services | 14.63% | Equity method | |
| Jiefang Times New Energy Technology Co., Ltd. | Shijiazhuang | Shijiazhuang | Technical services and other services | 50.00% | Equity method | |
| Diyi AESC New Energy Power Technology (Wuxi) Co., Ltd. | Wuxi | Wuxi | Engineering and technology research and experiment development | 49.00% | Equity method |
Explanation of the fact that the shareholding proportion in joint ventures or associated enterprises is different fromthe proportion of voting rights: there is no difference between the shareholding proportion and the proportion ofvoting rights.Basis for holding less than 20% of voting rights but with significant influence, or holding 20% or more of votingrights but without significant influence: The Company holds 17.50% of the shares of Sanguard AutomobileInsurance Co., Ltd., but it sends one director to the latter according to the Articles of Association of the latter, sothe Company can exert significant influence on Sanguard Automobile Insurance Co., Ltd. The Company holds
10.00% of the shares of Jiefang Fujie (Tianjin) Technology Industry Co., Ltd., but it sends three directors to thelatter according to the Articles of Association of the latter, so the Company can exert significant influence onJiefang Fujie (Tianjin) Technology Industry Co., Ltd. The Company holds 14.63% of the shares of ChangchunAutomotive Test Center Co., Ltd., but it sends one director to the latter according to the Articles of Association ofthe latter, so the Company can exert significant influence on Changchun Automotive Test Center Co., Ltd.
(2) Main financial information of important joint ventures
Unit: CNY
| Ending Balance/Amount Incurred in Current Period | Opening Balance/Amount Incurred in Previous Period | |
| Jiefang Times New Energy Technology Co., Ltd. | Jiefang Times New Energy Technology Co., Ltd. | |
| Current assets | 226,424,018.04 | 107,060,648.01 |
| Including: Cash and cash equivalents | 61,208,846.42 | 23,493,644.57 |
| Non-current assets | 202,724,472.32 | 180,155,847.21 |
| Total assets | 429,148,490.36 | 287,216,495.22 |
| Current liabilities | 139,732,848.41 | 40,887,314.87 |
| Non-current liabilities | 214,694,232.87 | 163,271,215.01 |
| Total liabilities | 354,427,081.28 | 204,158,529.88 |
| Minority equity | ||
| Equity attributable to shareholders of the parent company | 74,721,409.08 | 83,057,965.34 |
| Shares of net assets calculated as per the shareholding proportion | 37,360,704.55 | 41,528,982.67 |
| Adjustments | ||
| --Goodwill | ||
| --Unrealized profits from internal transactions | ||
| --Others | ||
| Book value of equity investment to joint ventures | 37,360,704.55 | 41,528,982.67 |
| The fair value of equity investment in joint ventures with a public offer | ||
| Operating income | 217,004,793.22 | 23,610,012.53 |
| Financial expenses | 4,666,304.22 | -786,426.54 |
| Income tax expenses | 283.87 | |
| Net Profit | -8,336,556.25 | -6,942,034.66 |
| Net profit from discontinued operations | ||
| Other comprehensive incomes | ||
| Total comprehensive income | -8,336,556.25 | -6,942,034.66 |
| Dividends received from joint ventures in the current year |
Other description
(3) Main financial information on important associated enterprises
Unit: CNY
| Ending Balance/Amount Incurred in Current Period | |||||||||||
| First Automobile Finance Co., Ltd. | Sanguard Automobile Insurance Co., Ltd. | FAW Changchun Ansteel Steel Processing and Distribution Co., Ltd. | Changchun Wabco Automotive Control System Co., Ltd. | FAW Changchun Baoyou Jiefang Steel Processing and Distribution Co., Ltd. | Suzhou Zhito Technology Co., Ltd. | FAW Jiefang Fujie (Tianjin) Technology Industry Co., Ltd. | SmartLink | Foshan Diyiyuan New Energy Technology Co., Ltd. | Changchun Automotive Test Center Co., Ltd. | Diyi AESC New Energy Power Technology (Wuxi) Co., Ltd. | |
| Current assets | 82,826,458,285.51 | 1,735,189,182.46 | 236,934,530.42 | 41,976,542.95 | 314,811,659.63 | 388,730,442.01 | 840,177,519.67 | 129,573,143.85 | 77,950,576.34 | 1,971,968,649.47 | 11,914,216.94 |
| Non-current assets | 85,912,913,739.17 | 680,384,942.50 | 59,013,028.84 | 22,535,665.99 | 50,342,316.54 | 79,350,893.35 | 789,129,965.77 | 198,944,967.72 | 602,067.31 | 1,785,145,939.47 | 53,529,536.46 |
| Total assets | 168,739,372,024.68 | 2,415,574,124.96 | 295,947,559.26 | 64,512,208.94 | 365,153,976.17 | 468,081,335.36 | 1,629,307,485.44 | 328,518,111.57 | 78,552,643.65 | 3,757,114,588.94 | 65,443,753.40 |
| Current liabilities | 146,422,969,364.73 | 405,603,134.71 | 73,746,945.12 | 22,747,940.94 | 174,660,490.17 | 105,149,543.23 | 959,088,478.01 | 326,180,678.01 | 9,408,260.47 | 107,789,515.82 | 635,077.58 |
| Non-current liabilities | 235,156,602.55 | 975,510,294.37 | 3,991,562.83 | 956,704,669.63 | 267,471,267.83 | 61,168,800.88 | 0.00 | 124,016,501.99 | 55,053,185.81 | ||
| Total liabilities | 146,658,125,967.28 | 1,381,113,429.08 | 73,746,945.12 | 22,747,940.94 | 178,652,053.00 | 1,061,854,212.86 | 1,226,559,745.84 | 387,349,478.89 | 9,408,260.47 | 231,806,017.81 | 55,688,263.39 |
| Net Assets | 22,081,246,057.40 | 1,034,460,695.88 | 222,200,614.14 | 41,764,268.00 | 186,501,923.17 | -593,772,877.50 | 402,747,739.60 | -58,831,367.32 | 69,144,383.18 | 3,525,308,571.13 | 9,755,490.01 |
| Minority equity | 1,316,124,588.85 | 223,155.56 | -3,150,336.43 | 448,173,439.46 | |||||||
| Equity attributable to shareholders of the parent company | 20,765,121,468.55 | 1,034,460,695.88 | 222,200,614.14 | 41,764,268.00 | 186,501,923.17 | -593,772,877.50 | 402,524,584.04 | -55,681,030.89 | 69,144,383.18 | 3,077,135,131.67 | 9,755,490.01 |
| Shares of net assets calculated as per the shareholding proportion | 4,534,957,172.88 | 181,030,621.78 | 88,880,245.66 | 16,705,707.20 | 40,668,609.39 | -152,480,874.94 | 40,252,458.40 | -19,488,360.81 | 31,114,972.43 | 450,184,869.76 | 4,780,190.10 |
| Adjustments | -4,479,384.72 | -1,427,852.30 | 111,270.89 | 1,338.80 | 152,480,874.94 | -206,085.48 | 19,488,360.81 | 893,057.42 | 267,007,906.12 | 23,130.31 | |
| --Goodwill | |||||||||||
| --Unrealized profits from | -153,628.00 | ||||||||||
| internal transactions | |||||||||||
| --Others | -4,479,384.72 | -1,427,852.30 | 111,270.89 | 1,338.80 | 152,480,874.94 | -52,457.48 | 19,488,360.81 | 893,057.42 | 267,007,906.12 | 23,130.31 | |
| Book value of equity investment in associated enterprises | 4,530,477,788.16 | 179,602,769.48 | 88,991,516.55 | 16,707,046.00 | 40,668,609.39 | 40,046,372.92 | 32,008,029.85 | 717,192,775.88 | 4,803,320.41 | ||
| Fair value of equity investment in associated enterprises with public offer | |||||||||||
| Operating income | 3,281,892,190.25 | 386,083,038.36 | 296,638,967.53 | 40,259,066.14 | 789,746,319.57 | 85,033,872.89 | 965,490,898.85 | 193,932,427.03 | 318,704,117.24 | ||
| Net Profit | 986,191,282.57 | 17,220,710.15 | 2,621,911.81 | 1,270,359.13 | 16,990,982.18 | -81,676,062.89 | 23,985,548.31 | -27,586,993.78 | -2,681,589.41 | 113,197,008.93 | -244,509.99 |
| Net profit from discontinued operations | |||||||||||
| Other comprehensive incomes | -443,405.41 | 35,550,850.22 | |||||||||
| Total comprehensive income | 985,747,877.16 | 52,771,560.37 | 2,621,911.81 | 1,270,359.13 | 16,990,982.18 | -81,676,062.89 | 23,985,548.31 | -27,586,993.78 | -2,681,589.41 | 113,197,008.93 | -244,509.99 |
| Dividends received from associated enterprises in the current year | 6,500,530.62 |
| Opening Balance/Amount Incurred in Previous Period | ||||||||||
| First Automobile Finance Co., Ltd. | Sanguard Automobile Insurance Co., Ltd. | FAW Changchun Ansteel Steel Processing and Distribution Co., Ltd. | Changchun Wabco Automotive Control System Co., Ltd. | FAW Changchun Baoyou Jiefang Steel Processing and Distribution Co., Ltd. | Suzhou Zhito Technology Co., Ltd. | FAW Jiefang Fujie (Tianjin) Technology Industry Co., Ltd. | SmartLink | Foshan Diyiyuan New Energy Technology Co., Ltd. | Changchun Automotive Test Center Co., Ltd. | |
| Current assets | 60,775,261,687.53 | 1,702,254,232.36 | 269,973,515.28 | 34,757,850.89 | 357,052,308.05 | 435,005,995.30 | 2,019,060,250.13 | 175,926,690.46 | 74,360,794.55 | 1,905,889,144.98 |
| Non-current assets | 113,266,395,863.62 | 876,220,650.46 | 61,635,140.40 | 24,179,782.51 | 49,442,981.99 | 86,241,055.85 | 845,687,497.81 | 183,160,633.97 | 1,980,391.85 | 1,778,261,365.48 |
| Total assets | 174,041,657,551.15 | 2,578,474,882.82 | 331,608,655.68 | 58,937,633.40 | 406,495,290.04 | 521,247,051.15 | 2,864,747,747.94 | 359,087,324.43 | 76,341,186.40 | 3,684,150,510.46 |
| Current liabilities | 152,572,057,589.80 | 409,136,482.45 | 111,751,776.05 | 18,443,724.53 | 205,065,072.99 | 127,443,900.05 | 2,188,704,666.79 | 286,751,551.15 | 2,530,641.78 | 148,517,574.12 |
| Non-current liabilities | 373,433,560.68 | 1,187,649,264.86 | 2,108,533.06 | 905,831,430.48 | 301,718,046.26 | 90,779,279.56 | 123,521,374.14 | |||
| Total liabilities | 152,945,491,150.48 | 1,596,785,747.31 | 111,751,776.05 | 18,443,724.53 | 207,173,606.05 | 1,033,275,330.53 | 2,490,422,713.05 | 377,530,830.71 | 2,530,641.78 | 272,038,948.26 |
| Net Assets | 21,096,166,400.67 | 981,689,135.51 | 219,856,879.63 | 40,493,908.87 | 199,321,683.99 | -512,028,279.38 | 374,325,034.89 | -18,443,506.28 | 73,810,544.62 | 3,412,111,562.20 |
| Minority equity | 1,212,589,189.69 | -1,056,387.18 | 448,669,357.62 | |||||||
| Equity attributable to shareholders of the parent company | 19,883,577,210.98 | 981,689,135.51 | 219,856,879.63 | 40,493,908.87 | 199,321,683.99 | -512,028,279.38 | 374,325,034.89 | -17,387,119.10 | 73,810,544.62 | 2,963,442,204.58 |
| Shares of net assets calculated as per the shareholding proportion | 4,342,434,077.83 | 171,795,598.71 | 87,942,751.83 | 16,197,563.58 | 43,464,086.43 | -131,488,862.14 | 37,432,503.49 | -6,085,491.68 | 33,214,745.08 | 433,551,594.53 |
| Adjustments | -4,625,319.38 | 131,488,862.14 | -449,647.25 | 6,085,491.68 | 267,105,032.74 | |||||
| --Goodwill | ||||||||||
| --Unrealized profits from internal transactions | -449,647.25 | |||||||||
| --Others | -4,625,319.38 | 131,488,862.14 | 6,085,491.68 | 267,105,032.74 | ||||||
| Book value of equity investment in associated enterprises | 4,337,808,758.45 | 171,795,598.71 | 87,942,751.83 | 16,197,563.58 | 43,464,086.43 | 36,982,856.24 | 33,214,745.08 | 700,656,627.27 | ||
| Fair value of equity investment in | ||||||||||
| associated enterprises with public offer | ||||||||||
| Operating income | 3,209,535,678.73 | 436,757,499.61 | 290,397,008.90 | 29,994,307.74 | 688,788,120.17 | 35,847,499.57 | 1,389,765,322.96 | 159,572,163.42 | 240,465,225.12 | |
| Net Profit | 1,165,863,071.10 | 22,325,313.14 | 4,167,069.20 | -916,143.61 | 14,884,160.46 | -94,145,183.33 | 18,284,853.78 | -36,269,129.74 | -233,646.64 | 70,700,030.55 |
| Net profit from discontinued operations | ||||||||||
| Other comprehensive incomes | 1,185,724.65 | 15,630,049.55 | ||||||||
| Total comprehensive income | 1,167,048,795.75 | 37,955,362.69 | 4,167,069.20 | -916,143.61 | 14,884,160.46 | -94,145,183.33 | 18,284,853.78 | -36,269,129.74 | -233,646.64 | 70,700,030.55 |
| Dividends received from associated enterprises in the current year | 4,835,877.87 | 6,892,912.77 |
Other description
(4) Excess losses incurred by joint ventures or associated enterprises
Unit: CNY
| Name of Joint Ventures or Associated Enterprises | Unrecognized Losses Accumulated in Prior Periods | Unrecognized Losses in the Current Period (or Net Profit Shared in the Current Period) | Accumulated Unrecognized Losses at the End of the Current Period |
| Suzhou Zhito Technology Co., Ltd. | 131,488,862.14 | 52,509,372.59 | 183,998,234.73 |
| SmartLink | 6,085,491.68 | 10,344,079.45 | 16,429,571.13 |
Other descriptionXI. Government subsidies
1. Government subsidies recognized at the receivable amount at the end of the reporting period
□Applicable ?Not applicable
Reasons for failing to receive the expected amount of government subsidies at the expected time point
□Applicable ?Not applicable
2. Liability items with government subsidies
□Applicable ?Not applicable
3. Government subsidies included in the current profit or loss
?Applicable □Not applicable
Unit: CNY
| Account item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Government subsidies | 209,501,338.40 | 193,604,585.44 |
Other description: none
XII. Risks Related to Financial Instruments
1. Various risks arising from financial instruments
The main financial instruments of the Company include monetary capital, notes receivable, accounts receivable,receivables financing, other receivables, non-current assets due within one year, other current assets, long-termreceivables, notes payable, accounts payable, other payables, non-current liabilities due within one year, and leaseliabilities. Details of each financial instrument have been disclosed in relevant notes. The risks related to thesefinancial instruments and the risk management policies adopted by the Company to reduce these risks are describedbelow. The management of the Company manages and monitors these risk exposures to ensure that the above risksare controlled within a limited range.
(1) Risk management objectives and policies
The Company carries out risk management to achieve an appropriate balance between risks and benefits, minimizethe negative impact of risks on the Company’s business performance, and maximize the interests of shareholdersand other equity investors. The Company, based on the risk management objectives, adopts the basic riskmanagement strategy of determining and analyzing various risks faced by the Company, establishing an appropriatebaseline for risk tolerance and carrying out risk management, and supervising various risks in a timely and reliablemanner to control the risks within a limited range.Main risks caused by financial instruments of the Company include credit risk, liquidity risk and market risk(including exchange rate risk and interest rate risk).? Credit riskCredit risk refers to the risk of financial loss to the Company caused by the counterparty’s failure to perform itscontractual obligations.The Company manages credit risks by portfolio classification. Credit risk mainly arises from bank deposits, notesreceivable, accounts receivable, other receivables, long-term receivables, etc.The Company’s deposits are mainly deposited in state-owned banks and other large and medium-sized listed banksand First Automobile Finance Co., Ltd., and the Company does not expect significant credit risks in its bank deposits.The Company makes relevant policies to control the credit risk exposure for notes receivable, accounts receivable,other receivables and long-term receivables. The Company evaluates the credit qualification of customers and setsthe credit period based on their financial conditions, credit records and other factors such as current market situations.The Company monitors the credit records of customers regularly, and take measures such as written reminders,shortening of credit period or cancellation of credit period for customers with poor credit records, so as to ensurethat the overall credit risk is within a controllable range.The debtors of the Company’s accounts receivable are customers distributed in different industries and regions. TheCompany carries out continuous credit assessment on the financial condition of accounts receivable and purchasescredit guarantee insurance when appropriate.The maximum credit risk exposure borne by the Company is the book value of each financial asset in the balancesheet. The Company does not provide any other guarantee that may expose the Company to credit risk.The accounts receivable of the top five customers account for 72.44% of the total accounts receivable of theCompany. Other receivables of the top five companies with debts account for 76.54% of the total other receivablesof the Company.
? Liquidity riskLiquidity risk refers to the risk of capital shortage when the Company performs its obligations of settlement bydelivering cash or other financial assets.
The Company maintains and monitors cash and cash equivalents deemed adequate by the management duringliquidity risk management to meet the Company’s operating needs and reduce the impact of fluctuations in cashflows. The management of the Company monitors the use of bank loans and ensures compliance with the loanagreements. Meanwhile, the Company obtains commitments from major financial institutions to provide sufficientreserve funds to meet short-term and long-term funding needs.The sources of the Company’s working capital include funds generated from operating activities, bank loans andother loans. As of June 30, 2024, the unused bank loan amount of the Company is CNY 10.291 billion.
? Market risk
Market risk of financial instruments refers to the risk of fluctuation in fair value or future cash flow of financialinstruments due to the changes in market price, including interest rate risk, exchange rate risk and other price risks.Interest rate riskThe risk of changes in cash flow of financial instruments caused by changes in interest rates of the Company ismainly related to bank loans with floating interest rates. It is the policy of the Company to maintain floating interestrates on these loans.Sensitivity analysis on interest rate risk:
The sensitivity analysis on interest rate risk is based on the assumption that changes in market interest rates affectinterest income or expenses on variable rate financial instruments.The Company had no interest-bearing debts such as bank loans as of June 30, 2024.Exchange rate riskExchange rate risk refers to the risk of fluctuation in fair value or future cash flow of financial instruments due tochange in foreign exchange rate. Exchange rate risk may come from financial instruments denominated in a foreigncurrency other than the recording currency.The foreign exchange risk borne by the Company is mainly related to euros. Main business activities of theCompany are settled in CNY, except that the subsidiary established in Austria holds assets settled in EUR. Thebalance of Company’s assets and liabilities were all in CNY as of June 30, 2024, except a small amount of monetarycapitals including the balance in EUR. Therefore, the Company does not believe that the exchange rate risk facedis significant.
(2) Capital management
The Company prepares capital management policy to ensure continuous operation of the Company, thus providingreturns to shareholders, benefiting other stakeholders, and maintaining the best capital structure to reduce capitalcosts.
In order to maintain or adjust the capital structure, the Company may adjust the financing method, adjust the amountof dividends paid to shareholders, return capital to shareholders, issue new shares and other equity instruments, orsell assets to reduce debt.The Company monitors the capital structure based on the asset-liability ratio (i.e. total liabilities divided by totalassets). As of June 30, 2024, the Company’s asset-liability ratio is 69.68%.
2. Financial assets
(1) Classification of transfer methods
□Applicable ?Not applicable
(2) Financial assets derecognized due to transfer
□Applicable ?Not applicable
(3) Financial assets with continuous involvement in asset transfer
□Applicable ?Not applicable
Other description
XIII. Disclosure of Fair Value
1. Ending fair value of assets and liabilities measured at fair value
Unit: CNY
| Item | Ending fair value | |||
| Level 1 fair value measurement | Level 2 fair value measurement | Level 3 fair value measurement | Total | |
| I. Ongoing fair value measurement | -- | -- | -- | -- |
| (Ⅰ) Other equity instrument investments | 480,780,000.00 | 480,780,000.00 | ||
| Total assets continuously measured at fair value | 480,780,000.00 | 480,780,000.00 | ||
| Ⅱ. Non-continuous fair value measurement | -- | -- | -- | -- |
2. Basis for determination of market prices for continuous and non-continuous level I measurement items atfair valueLevel I: Quotations for the same assets or liabilities in active markets (unadjusted).
3. Valuation techniques and qualitative and quantitative information about key parameters of items subjectto continuous and non-continuous level II fair value measurementLevel II: Observable input values other than market quotations for assets or liabilities in the first level are useddirectly (i.e. price) or indirectly (i.e. derived from price).
4. Valuation techniques and qualitative and quantitative information about key parameters of items subjectto continuous and non-continuous level III fair value measurementLevel III: Any input value (non-observable input value) not based on observable market data is used for assets orliabilities.
5. Others
The Company’s financial assets and financial liabilities measured at amortized cost mainly include monetarycapital, notes receivable, accounts receivable, other receivables, notes payable, accounts payable, other payables,etc.XIV. Related Parties and Related Party Transactions
1. Parent company of the Company
| Name of Parent Company | Registered address | Nature of business | Registered Capital | Shareholding Proportion of the Parent Company in the Company | Proportion of Voting Rights of the Parent Company in the Company |
| FAW | Changchun | Production and sales of automobiles and parts | 7,800,000.00 | 66.19% | 66.19% |
Description of the parent company of the Company: The ultimate controlling party of the Company is FAWGroup.Other description: The registered capital of the parent company has not changed during the reporting period.
2. Subsidiaries of the Company
For details of subsidiaries of the Company, see Section 10 of the Notes to the Financial Report, Ⅴ Interests inother entities, 1.
3. Information on joint ventures and associated enterprises of the CompanyFor details of the significant joint ventures or associated enterprises of the Company, see Section 10 of the Notesto the Financial Report, X Interests in other entities, 2.Other joint ventures or associated enterprises that have related party transactions with the Company in the currentperiod or in the previous period, resulting in balance, are as follows:
| Name of Joint Ventures or Associated Enterprises | Relationship with the Company |
| First Automobile Finance Co., Ltd. | Associated enterprise of the Company, the same ultimate controlling party |
| Sanguard Automobile Insurance Co., Ltd. | Associated enterprise of the Company, the same |
| ultimate controlling party | |
| Changchun Automotive Test Center Co., Ltd. | Associated enterprise of the Company, the same ultimate controlling party |
| FAW Changchun Ansteel Steel Processing and Distribution Co., Ltd. | Associated enterprise of the Company |
| Changchun Wabco Automotive Control System Co., Ltd. | Associated enterprise of the Company |
| Suzhou Zhito Technology Co., Ltd. | Associated enterprise of the Company |
| FAW Changchun Baoyou Jiefang Steel Processing and Distribution Co., Ltd. | Associated enterprise of the Company |
| FAW Jiefang Fujie (Tianjin) Technology Industry Co., Ltd. | Associated enterprise of the Company |
| SmartLink | Associated enterprise of the Company |
| Foshan Diyiyuan New Energy Technology Co., Ltd. | Associated enterprise of the Company |
| Jiefang Times New Energy Technology Co., Ltd. | Joint enterprise of the Company |
| Diyi AESC New Energy Power Technology (Wuxi) Co., Ltd. | Associated enterprise of the Company |
Other description: none
4. Information on other related parties
| Names Of Other Related Parties | Relationship between Other Related Parties and the Company |
| China FAW Group Import & Export Co., Ltd. | The same ultimate controlling party |
| Changchun FAW Automobile Culture Communication Co., Ltd. | The same ultimate controlling party |
| FAW Changchun Automobile Trading Service Co., Ltd. | The same ultimate controlling party |
| FAW Asset Management Co., Ltd. | The same ultimate controlling party |
| FAW Foundry Co., Ltd. | The same ultimate controlling party |
| FAW Zhixing Technology (Nanjing) Co., Ltd. | The same ultimate controlling party |
| FAW Logistics Co., Ltd. | The same ultimate controlling party |
| FAW Logistics (Changchun Lushun) Storage and Transportation Co., Ltd. | The same ultimate controlling party |
| FAW Logistics (Qingdao) Co., Ltd. | The same ultimate controlling party |
| FAW Logistics (Chengdu) Co., Ltd. | The same ultimate controlling party |
| FAW Mold Manufacturing Co., Ltd. | The same ultimate controlling party |
| FAW Harbin Light Automobile Co., Ltd. | The same ultimate controlling party |
| Changchun Faw Service Trade Co., Ltd. | The same ultimate controlling party |
| FAW Forging (Jilin) Co., Ltd. | The same ultimate controlling party |
| FAW (Dalian) International Logistics Co., Ltd. | The same ultimate controlling party |
| Sanguard Automobile Insurance Co., Ltd. | The same ultimate controlling party |
| Wuxi Sawane Spring Co., Ltd. | The same ultimate controlling party |
| Qiming Information Technology Co., Ltd. | The same ultimate controlling party |
| Hainan Tropical Automobile Test Co., Ltd. | The same ultimate controlling party |
| FAW Changchun Comprehensive Utilization Co., Ltd. | Other related parties |
| FAW Changchun Yanfeng Visteon Electronics Co., Ltd. | Other related parties |
| FAW Changchun Communication Technology Co., | Other related parties |
| Ltd. | |
| Changchun FAW United Casting Company | Other related parties |
| Changchun FAWAY Automobile Components Co., Ltd. | Other related parties |
| Changchun FAWSN Group Co., Ltd. | Other related parties |
| Changchun Yidong Clutch Co., Ltd. | Other related parties |
| Changchun Automotive Economic and Technological Development Zone Environmental Sanitation and Cleaning Co., Ltd. | Other related parties |
| FAW Jingye Engine Co., Ltd. | Other related parties |
| FAW Jilin Automobile Co., Ltd. | Other related parties |
| FAW Hongta Yunnan Automobile Manufacturing Co., Ltd. | Other related parties |
| Cinda FAW Commercial Factoring Co., Ltd. | Other related parties |
| Wuxi CRRC New Energy Automobile Co., Ltd. | Other related parties |
| Shandong Pengxiang Automobile Co., Ltd. | Other related parties |
| United Fuel Cell System R&D (Beijing) Co., Ltd. | Other related parties |
| Jilin Checheng Garden Hotel Co., Ltd. | Other related parties |
| The Ninth Institute of Project Planning & Research of China Machinery Industry (FIPPR) | Other related parties |
| Hongqi Intelligent Mobility Technology (Beijing) Co., Ltd. | Other related parties |
| Grammer Vehicle Parts (Harbin) Co., Ltd. | Other related parties |
| Fawer Auto Parts Co., Ltd. | Other related parties |
Other description:
5. Related transactions
(1) Related transactions of purchasing or selling goods and providing or receiving labor servicesStatement of goods purchase/reception of labor services
Unit: CNY
| Related Parties | Content of Related Transaction | Amount Incurred in Current Period | Approved Transaction Amount | Is the Transaction Amount Exceeded | Amount Incurred in the Previous Period |
| China FAW Group Corporation Limited | Goods purchase and reception of labor services | 168,278,364.51 | 360,000,000.00 | No | 155,846,981.56 |
| FAW Harbin Light Automobile Co., Ltd. | Goods purchase and reception of labor services | 34,043,954.78 | 138,020,000.00 | No | 32,547,680.87 |
| FAW Logistics Co., Ltd. | Goods purchase and reception of labor services | 132,075,955.87 | 495,900,000.00 | No | 195,120,017.33 |
| FAW Logistics (Qingdao) Co., Ltd. | Goods purchase and reception of labor services | 190,769,196.12 | 426,220,000.00 | No | 119,111,915.14 |
| FAW Foundry Co., Ltd. | Goods purchase and reception of labor services | 384,030,084.81 | 931,140,000.00 | No | 413,071,742.20 |
| FAW Forging (Jilin) Co., Ltd. | Goods purchase and reception of labor services | 132,632,358.53 | 557,310,000.00 | No | 191,850,549.63 |
| China FAW Group Import & Export Co., Ltd. | Goods purchase and reception of labor services | 114,352,745.51 | 375,350,000.00 | No | 62,900,925.02 |
| Qiming Information Technology Co., Ltd. | Goods purchase and reception of labor services | 37,009,622.81 | 194,010,000.00 | No | 72,665,910.12 |
| Changchun Automotive Test Center Co., Ltd. | Goods purchase and reception of labor services | 6,343,840.40 | 119,170,000.00 | No | 22,796,281.44 |
| The Ninth Institute of Project Planning & Research of China Machinery Industry (FIPPR) | Goods purchase and reception of labor services | 159,432,158.11 | 235,580,000.00 | No | 35,812,164.45 |
| FAW Changchun Ansteel Steel Processing and Distribution Co., Ltd. | Goods purchase and reception of labor services | 198,996,257.45 | 516,630,000.00 | No | 156,577,508.70 |
| FAW Changchun Baoyou Jiefang Steel Processing and Distribution Co., Ltd. | Goods purchase and reception of labor services | 227,909,641.46 | 502,720,000.00 | No | 101,309,325.27 |
| SmartLink | Goods purchase and reception of labor services | 115,585,042.51 | 302,560,000.00 | No | 89,982,268.22 |
| Changchun Yidong Clutch Co., Ltd. | Goods purchase and reception of labor services | 107,551,528.62 | 250,180,000.00 | No | 103,546,734.02 |
| Fawer Auto Parts Co., Ltd. | Goods purchase and reception of labor services | 768,424,274.21 | 1,972,380,000.00 | No | 751,551,871.30 |
| Changchun FAWSN Group Co., Ltd. | Goods purchase and reception of labor services | 286,249,843.64 | 604,920,000.00 | No | 280,903,728.09 |
| Changchun FAWAY Automobile Components Co., Ltd. | Goods purchase and reception of labor services | 212,166,163.52 | 585,000,000.00 | No | 181,104,399.46 |
| FAW Jilin Automobile Co., Ltd. | Goods purchase and reception of labor services | 24,828,172.39 | 251,930,000.00 | No | 2,367,964.59 |
| Shandong Pengxiang Automobile Co., Ltd. | Goods purchase and reception of labor services | 167,405,214.29 | 723,730,000.00 | No | 321,749,405.78 |
| Grammer Vehicle Parts (Harbin) Co., Ltd. | Goods purchase and reception of labor services | 128,212,162.85 | 284,590,000.00 | No | 45,950,885.93 |
| China FAW Group Co., Ltd. and other related parties | Goods purchase and reception of labor services | 139,488,038.44 | 489,900,000.00 | No | 194,637,679.90 |
Statement of goods sales/rendering of services
Unit: CNY
| Related Parties | Content of Related Transaction | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| China FAW Group Import & Export Co., Ltd. | Selling goods and providing services | 8,493,521,248.00 | 6,728,264,167.89 |
| FAW Jiefang Fujie (Tianjin) Technology Industry Co., Ltd. | Selling goods and providing services | 568,251,081.37 | 1,213,457,947.93 |
| SmartLink | Selling goods and providing services | 4,181,200.56 | 66,851,895.14 |
| Jiefang Times New Energy Technology Co., Ltd. | Selling goods and providing services | 647,603,840.05 | |
| FAW Changchun Comprehensive Utilization Co., Ltd. | Selling goods and providing services | 75,447,154.97 | 100,636,434.81 |
| China FAW Group Co., Ltd. and other related parties | Selling goods and providing services | 76,963,064.64 | 67,374,869.64 |
Description of related transactions of purchasing or selling goods and providing or receiving labor services:
(2) Related lease
The Company, as the lessor:
Unit: CNY
| Name of Lessee | Type of Leased Assets | Lease Income Recognized in the Current Period | Lease Income Recognized in the Previous Period |
| Changchun Automotive Test Center Co., Ltd. | Houses and Buildings | 1,288,392.99 | |
| FAW | Houses and Buildings | 774,875.72 | 1,017,306.92 |
| Fawer Auto Parts Co., Ltd. | Houses and Buildings | 197,702.76 | 197,702.76 |
| FAW Changchun Communication Technology Co., Ltd. | Land | 22,018.35 | |
| Shandong Pengxiang Automobile Co., Ltd. | Houses, buildings and land | 386,020.18 | 377,350.46 |
| FAW Changchun Baoyou Steel Processing | Plant | 1,059,049.54 |
| and Distribution Co., Ltd. | |||
| Foshan Diyiyuan New Energy Technology Co., Ltd. | Building | 48,441.12 |
The Company, as the lessee:
Unit: CNY
| Name of lessor | Type of Leased Assets | Rental expenses for simplified short-term leases or low-value asset leases | Variable lease payments not included in the measurement of lease liabilities | Rent Paid | Interest Expense on Lease Liabilities Incurred | Increased right-of-use assets | |||||
| Amount Incurred in Current Period | Amount Incurred in the Previous Period | Amount Incurred in Current Period | Amount Incurred in the Previous Period | Amount Incurred in Current Period | Amount Incurred in the Previous Period | Amount Incurred in Current Period | Amount Incurred in the Previous Period | Amount Incurred in Current Period | Amount Incurred in the Previous Period | ||
| FAW Group | House and land | 2,132,938.00 | |||||||||
| FAW | Houses and Buildings | 3,839,917.11 | 112,555.99 | 22,096.94 | |||||||
| Changchun Automotive Test Center Co., Ltd. | Houses and Buildings | 2,335,846.88 | 55,363.78 | ||||||||
Description of related leases
(3) Remuneration of key management personnel
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Remuneration of key management personnel | 5,382,500.00 | 4,467,250.06 |
Note 1: Due to the adjustment of statistical caliber, the change occurred in the same period last year.
(4) Other related transactions
Interest income and interest expense
| Related Parties | Content of Related Transaction | Amount incurred in the current period (CNY) | Amount incurred in the previous period (CNY) |
| First Automobile Finance Co., Ltd. | Interest income | 61,055,123.68 | 59,863,417.16 |
Deposits and interests in finance companies
| Project name | Related Parties | Transaction content | Ending balance (CNY) | Ending balance of the previous year (CNY) |
| Monetary capital | First Automobile Finance Co., Ltd. | Deposits and interests of finance company included in bank deposits | 8,678,069,325.92 | 14,046,575,246.78 |
Equity investment
| Item | Amount incurred in the current period (CNY) | Amount incurred in the previous period (CNY) |
| Changchun Automotive Test Center Co., Ltd. | 670,872,897.94 |
6. Receivables and payables of related parties
(1) Receivables
Unit: CNY
| Project Name | Related Parties | Ending balance | Opening balance | ||
| Book balance | Provision for Bad Debts | Book balance | Provision for Bad Debts | ||
| Accounts receivable | FAW | 443,661.84 | 2,129.58 | 2,150,000.00 | 10,320.00 |
| Accounts receivable | FAW Harbin Light Automobile Co., Ltd. | 3,310,192.84 | 4,601.41 | 260,081,914.30 | 261,998.72 |
| Accounts receivable | China FAW Group Import & Export Co., Ltd. | 7,446,827,018.24 | 21,870,950.49 | 565,045,453.53 | 1,438,890.29 |
| Accounts receivable | FAW Asset Management Co., Ltd. | 874,946.68 | 456,782.67 | 454,999.94 | 454,999.94 |
| Accounts | FAW Hongta | 43,106,461.34 | 11,709,465.17 | 54,814,238.73 | 11,781,810.57 |
| receivable | Yunnan Automobile Manufacturing Co., Ltd. | ||||
| Accounts receivable | Suzhou Zhito Technology Co., Ltd. | 25,032.67 | 120.16 | ||
| Accounts receivable | SmartLink | 1,243,517.38 | 2,755.27 | 5,106,986.20 | 5,106.99 |
| Accounts receivable | Jiefang Times New Energy Technology Co., Ltd. | 801,428,696.29 | 2,133,786.12 | 193,088,998.31 | 743,368.60 |
| Accounts receivable | Changchun Yidong Clutch Co., Ltd. | 1,168,165.53 | 5,607.19 | 15,885.93 | 76.25 |
| Accounts receivable | Fawer Auto Parts Co., Ltd. | 66,687.97 | 320.10 | ||
| Accounts receivable | Changchun FAWSN Group Co., Ltd. | 19,816.32 | 95.12 | ||
| Accounts receivable | United Fuel Cell System R&D (Beijing) Co., Ltd. | 177,876.10 | 853.81 | 210,717.10 | 1,011.44 |
| Accounts receivable | Changchun FAWAY Automobile Components Co., Ltd. | 8,670.94 | 41.62 | 8,670.94 | 41.62 |
| Accounts receivable | FAW Jingye Engine Co., Ltd. | 1,820,957.23 | 1,820,957.23 | 1,820,957.23 | 1,820,957.23 |
| Accounts receivable | FAW Changchun Yanfeng Visteon Electronics Co., Ltd. | 2,722.49 | |||
| Accounts receivable | Shandong Pengxiang Automobile Co., Ltd. | 92,917.44 | 13,086.18 | 62.81 | |
| Accounts receivable | Grammer Vehicle Parts (Harbin) Co., Ltd. | 124,587.00 | 116,052.30 | 557.05 | |
| Accounts receivable | FAW Changchun Comprehensive Utilization Co., Ltd. | 24,427.35 | 117.25 | ||
| Accounts receivable | Qiming Information Technology Co., Ltd. | 131,897.06 | 633.11 | ||
| Other receivables | FAW | 59,722.27 | |||
| Other receivables | FAW Logistics Co., Ltd. | 323,318.34 | 323.32 | 55,370.79 | 1,688.81 |
| Other receivables | FAW Foundry Co., Ltd. | 2,439.14 | |||
| Other | China FAW Group | 363,892.85 | 2,547.25 |
| receivables | Import & Export Co., Ltd. | ||||
| Other receivables | FAW Asset Management Co., Ltd. | 386,818.51 | 3,124,921.61 | 93,785.11 | |
| Other receivables | SmartLink | 9,567,968.06 | 291,823.02 | 7,597,737.61 | 231,731.00 |
| Other receivables | FAW Forging (Jilin) Co., Ltd. | 23,548.67 | 718.23 | ||
| Other receivables | FAW Mold Manufacturing Co., Ltd. | 19,983.53 | 609.50 | ||
| Other receivables | FAW Logistics (Changchun Lushun) Storage and Transportation Co., Ltd. | 1,219.65 | 37.20 | ||
| Prepayments | FAW Mold Manufacturing Co., Ltd. | 24,958,345.36 | 12,268,345.36 | ||
| Prepayments | China FAW Group Import & Export Co., Ltd. | 97,893,842.46 | 291,602,226.68 | ||
| Prepayments | Qiming Information Technology Co., Ltd. | 1,300,611.20 | 2,083,957.10 | ||
| Prepayments | Changchun Automotive Test Center Co., Ltd. | 29,773,068.93 | 26,426,263.51 | ||
| Prepayments | The Ninth Institute of Project Planning & Research of China Machinery Industry (FIPPR) | 867,810.00 | 600,000.00 | ||
| Prepayments | SmartLink | 1,682,000.00 | 5,473,400.00 | ||
| Prepayments | FAW Jilin Automobile Co., Ltd. | 3,757,511.16 | 12,256,098.84 | ||
| Prepayments | FAW Foundry Co., Ltd. | 20,532.03 |
(2) Payables
Unit: CNY
| Project Name | Related Parties | Ending book balance | Beginning Book Balance |
| Accounts payable | FAW | 6,188,299.81 | 29,476,172.06 |
| Accounts payable | FAW Harbin Light Automobile Co., Ltd. | 19,833,783.87 | 65,513,752.89 |
| Accounts payable | Sanguard Automobile Insurance Co., Ltd. | 837,164.00 | 2,822,789.08 |
| Accounts payable | FAW Logistics Co., Ltd. | 62,541,066.13 | 80,290,107.51 |
| Accounts payable | FAW Logistics (Changchun Lushun) Storage and Transportation Co., Ltd. | 12,733,958.63 | 8,629,745.71 |
| Accounts payable | FAW Logistics (Chengdu) Co., Ltd. | 971,125.36 | |
| Accounts payable | FAW Logistics (Qingdao) Co., Ltd. | 122,291,453.83 | 104,662,732.36 |
| Accounts payable | FAW (Dalian) International Logistics Co., Ltd. | 1,146,147.03 | 6,942,812.41 |
| Accounts payable | FAW Foundry Co., Ltd. | 62,978,613.78 | 44,286,964.68 |
| Accounts payable | FAW Forging (Jilin) Co., Ltd. | 14,995,105.72 | 76,891,932.23 |
| Accounts payable | FAW Mold Manufacturing Co., Ltd. | 198,377.90 | 1,133,423.20 |
| Accounts payable | China FAW Group Import & Export Co., Ltd. | 386,921.09 | 2,678,724.16 |
| Accounts payable | Qiming Information Technology Co., Ltd. | 25,145,671.35 | 32,857,375.09 |
| Accounts payable | FAW Asset Management Co., Ltd. | 452,360.34 | 226,180.17 |
| Accounts payable | FAW Zhixing Technology (Nanjing) Co., Ltd. | 56,300.00 | 16,200.00 |
| Accounts payable | FAW Changchun Automobile Trading Service Co., Ltd. | 252,245.05 | 2,609,565.02 |
| Accounts payable | Wuxi Sawane Spring Co., Ltd. | 2,321,062.19 | 377,207.77 |
| Accounts payable | Changchun Automotive Test Center Co., Ltd. | 238,700.00 | 6,851,687.59 |
| Accounts payable | FAW Hongta Yunnan Automobile Manufacturing Co., Ltd. | 1,800.00 | |
| Accounts payable | FAW Changchun Baoyou Jiefang Steel Processing and Distribution Co., Ltd. | 117,302.64 | 117,304.27 |
| Accounts payable | Changchun Wabco Automotive Control System Co., Ltd. | 9,955,310.52 | 5,414,883.93 |
| Accounts payable | Suzhou Zhito Technology Co., Ltd. | 1,517,123.38 | 10,237.07 |
| Accounts payable | SmartLink | 9,481,061.27 | 18,624,052.12 |
| Accounts payable | Changchun FAW United Casting Company | 2,826,258.25 | 39,972.52 |
| Accounts payable | Changchun Yidong Clutch Co., Ltd. | 80,559,751.91 | 52,247,878.28 |
| Accounts | Fawer Auto Parts Co., Ltd. | 410,219,192.48 | 321,637,528.00 |
| payable | |||
| Accounts payable | Changchun FAWSN Group Co., Ltd. | 87,142,731.86 | 33,612,267.32 |
| Accounts payable | FAW Changchun Communication Technology Co., Ltd. | 894,647.22 | 61,517.85 |
| Accounts payable | Changchun FAWAY Automobile Components Co., Ltd. | 149,954,475.86 | 142,502,192.54 |
| Accounts payable | Changchun Automotive Economic and Technological Development Zone Environmental Sanitation and Cleaning Co., Ltd. | 212,699.82 | 451,864.50 |
| Accounts payable | Wuxi CRRC New Energy Automobile Co., Ltd. | 757,023.75 | |
| Accounts payable | FAW Changchun Comprehensive Utilization Co., Ltd. | 177,817.38 | 2,361,868.60 |
| Accounts payable | FAW Changchun Yanfeng Visteon Electronics Co., Ltd. | 52,137.94 | 51,837.99 |
| Accounts payable | Shandong Pengxiang Automobile Co., Ltd. | 86,134,801.21 | 95,007,782.33 |
| Accounts payable | Hongqi Intelligent Mobility Technology (Beijing) Co., Ltd. | 279,949.22 | 326,523.80 |
| Accounts payable | Grammer Vehicle Parts (Harbin) Co., Ltd. | 53,590,737.22 | 10,120,909.07 |
| Accounts payable | Hainan Tropical Automobile Test Co., Ltd. | 1,625,476.03 | |
| Accounts payable | Changchun FAW International Tendering Co., Ltd. | 26,778.00 | |
| Accounts payable | FAW Logistics (Foshan) Co., Ltd. | 4,293.00 | |
| Accounts payable | FAW Group | 2,212,607.00 | |
| Accounts payable | Dalian Qiming Haitong Information Technology Co., Ltd. | 240,000.00 | |
| Accounts payable | FAW Changchun Tianqi Process Equipment Engineering Co., Ltd. | 178,081.90 | |
| Accounts payable | China Unicom Intelligent Network Technology Co., Ltd. | 30,249.00 | |
| Accounts payable | FAW Changchun Industrial Shuixing Rubber and Plastic Products Co., Ltd. | 15,197.33 | |
| Other payables | FAW Group | 1,557,231.25 | |
| Other payables | FAW | 4,185,509.65 | 95,802,940.17 |
| Other payables | Sanguard Automobile Insurance Co., Ltd. | 78,000.00 | 77,800.00 |
| Other payables | FAW Mold Manufacturing Co., Ltd. | 38,494,533.47 | 17,227,387.87 |
| Other payables | China FAW Group Import & Export Co., Ltd. | 14,308,220.88 | 3,485,617.92 |
| Other payables | Qiming Information Technology Co., Ltd. | 14,242,385.77 | 21,046,660.22 |
| Other payables | Changchun Automotive Test Center Co., Ltd. | 778,615.62 | 26,847,716.00 |
| Other payables | The Ninth Institute of Project Planning & Research of China Machinery Industry (FIPPR) | 15,330,311.40 | 94,265,971.56 |
| Other payables | FAW Changchun Baoyou Jiefang Steel Processing and Distribution Co., Ltd. | 2,413,738.39 | |
| Other payables | SmartLink | 79,133.00 | 1,876,477.00 |
| Other payables | Changchun Yidong Clutch Co., Ltd. | 455,297.19 | |
| Other payables | Fawer Auto Parts Co., Ltd. | 18,670,798.96 | 10,095,378.21 |
| Other payables | FAW Changchun Communication Technology Co., Ltd. | 2,221,042.13 | 3,062,361.99 |
| Other payables | Shandong Pengxiang Automobile Co., Ltd. | 800,000.00 | 1,040,000.00 |
| Other payables | FAW Hongta Yunnan Automobile Manufacturing Co., Ltd. | 134,832,393.40 | |
| Other payables | FAW Harbin Light Automobile Co., Ltd. | 8,241,822.24 | |
| Other payables | Changchun Faw Service Trade Co., Ltd. | 320,000.00 | |
| Other payables | Suzhou Zhito Technology Co., Ltd. | 10,000.00 | |
| Other payables | FAW Asset Management Co., Ltd. | 3,925.62 | |
| Contract liabilities | China FAW Group Import & Export Co., Ltd. | 9,195,426.75 | 4,057,439.29 |
| Contract liabilities | FAW Asset Management Co., Ltd. | 20,698.19 | |
| Contract liabilities | Changchun Faw Service Trade Co., Ltd. | 5,193,035.42 | 28,117,018.95 |
| Contract liabilities | Suzhou Zhito Technology Co., Ltd. | 176,990.83 | 334,400.00 |
| Contract liabilities | FAW Jiefang Fujie (Tianjin) Technology Industry Co., Ltd. | 4,094,899.58 | |
| Contract liabilities | Jiefang Times New Energy Technology Co., Ltd. | 19,003.50 | |
| Contract liabilities | FAW Changchun Comprehensive Utilization Co., Ltd. | 1,124,205.71 | 2,463,687.98 |
| Contract liabilities | FAW Jiefang Fujie (Tianjin) Technology Industry Co., Ltd. | 309,314,130.28 | |
| Contract liabilities | Shandong Pengxiang Automobile Co., Ltd. | 492,721.62 | |
| Contract liabilities | FAW Changchun Automobile Trading Service Co., Ltd. | 26,830.00 | |
| Contract | FAW New Energy Vehicle Sales (Shenzhen) | 8,060.00 |
| liabilities | Co., Ltd. | ||
| Accounts received in advance | FAW | 387,437.84 | |
| Accounts received in advance | FAW Changchun Automobile Trading Service Co., Ltd. | 26,830.00 | |
| Accounts received in advance | Fawer Auto Parts Co., Ltd. | 107,748.00 | 107,748.00 |
| Accounts received in advance | FAW Changchun Communication Technology Co., Ltd. | 6,422.03 | |
| Accounts received in advance | Shandong Pengxiang Automobile Co., Ltd. | 210,381.00 |
XV. Share-based Payment
1. General conditions of share-based payments
?Applicable □Not applicable
Unit: CNY
| Grantee category | Shares granted in the current period | Shares exercised in the current period | Shares unlocked in the current period | Shares invalidated in the current period | ||||
| Quantity | Amount | Quantity | Amount | Quantity | Amount | Quantity | Amount | |
| Manager | 13,107,301.00 | 50,594,181.86 | 15,479,987.00 | 97,950,033.45 | ||||
| Total | 13,107,301.00 | 50,594,181.86 | 15,479,987.00 | 97,950,033.45 | ||||
Stock options or other equity instruments outstanding at the end of the current period
□Applicable ?Not applicable
Other description
2. Equity-settled share-based payment
?Applicable □Not applicable
Unit: CNY
| Measures for determining the fair value of equity instruments on the grant date | Restricted shares are determined according to the closing price on the grant date, and stock options are determined according to the B-S option pricing model. |
| Important parameters of fair value of equity instruments on the grant date | Quoted prices in active markets |
| Basis for determining the number of exercisable | The Company determines the number according to the |
| equity instruments | Proposal on the Restricted Share Incentive Plan of FAW JIEFANG GROUP CO., LTD. (Draft) and Its Summary, the Proposal on the Regulations for the Implementation Assessment of Restricted Share Incentive Plan of FAW JIEFANG GROUP CO., LTD., the Proposal on the Regulations for Restricted Share Incentive of FAW JIEFANG GROUP CO., LTD., and the Proposal on Requesting the Shareholders’ Meeting to Authorize the Board of Directors to Handle Matters Related to the Company’s Restricted Share Incentive Plan. |
| Reasons for significant differences between current estimates and previous estimates | None |
| Aggregate amount of equity-settled share-based payment charged to the capital reserve | 53,722,176.82 |
| Total expenses recognized by equity-settled share-based payment in the current period | -24,775,825.33 |
Other description
3. Cash-settled share-based payment
□Applicable ?Not applicable
4. Share-based payment expenses in the current period
?Applicable □Not applicable
Unit: CNY
| Grantee category | Equity-settled share-based payment expenses | Cash-settled share-based payment expenses |
| Manager | 605,418.43 | |
| Total | 605,418.43 |
Other description
5. Modification and termination of share-based payment: None
XVI. Commitments and Contingencies
1. Important commitments
Important commitments existing on the balance sheet dateThe Company has no other commitments that should be disclosed as of June 30, 2024.
2. Contingencies
(1) Important contingencies existing on the balance sheet date
Contingent liabilities arising from pending litigation and arbitration and their financial impact
| Plaintiff | Defendant | Cause of Action | Court of Acceptance | Subject amount (yuan) | Case Progress |
| China Pacific Insurance Co., Ltd. Changchun Center Branch | Changchun Yongchun Automobile Shipping Co., Ltd., Zhang Tianbao, FAW Jiefang Automobile Co., Ltd., FAW Jiefang Automobile Co., Ltd. Smart Logistics Branch, Sanguard Automobile Insurance Co., Ltd. Jilin Branch | Traffic accident liability case | Lvyuan District People’s Court of Changchun City | 2,566,400.00 | First instance |
| Sun Zhongwu | Zaozhuang Jujin Vehicle Co., Ltd., FAW Group | Product liability cases | Yicheng District People’s Court of Zaozhuang City | 1,580,000.00 | First instance |
| He Zihua, Deng Liwen | Wei Chengtie, Nanning Hongfa Logistics Co., Ltd., FAW Group, Guangxi Jiefang Automobile Trading Co., Ltd. | Traffic accident liability case | Xingning District People’s Court of Nanning City | 901,417.50 | First instance |
| Jiangxi Lefeng Logistics Co., Ltd. | Shenzhen SF Zhida Network Technology Co., Ltd., FAW Group | Product liability cases | Shangrao Intermediate People’s Court | 643,091.56 | Second instance |
| Huaiyuan County Smooth Transport Co., Ltd. | Bengbu Huaxin Automobile Sales and Service Co., Ltd., FAW Group | Product liability cases | Yuhui District People’s Court of Bengbu City | 551,325.93 | First instance |
| Luoyang Nengxin Automobile Transport Co., Ltd. | Luoyang Kayou Automobile Sales and Service Co., Ltd., FAW Group | Product liability cases | Xin’an County People’s Court, Henan Province | 452,960.30 | First instance |
| Beijing Founder Electronics Co.,Ltd. | FAW Jiefang (Qingdao) Automotive Co., Ltd. | Infringement disputes | Beijing Internet Court | 400,000.00 | First instance |
| Dong Yan, Shang Jia, Shang Hui, Liu Guoying | Zhang Tianbao, Changchun Yongchun Automobile Shipping Co., Ltd., FAW Logistics Co., Ltd., Sanguard Automobile Insurance Co., Ltd. Jilin Branch, FAW Jiefang Automobile Co., Ltd. Smart Logistics Branch, FAW Jiefang Automobile Co., Ltd. | Traffic accident liability case | Kangping County People’s Court of Shenyang City | 391,171.05 | First instance |
| Sanming Huatong Jiefang Automobile Sales and Service Co., Ltd. | FAW Group | Product liability cases | Changchun Intermediate People’s Court | 308,244.66 | Second instance |
Liu Zhenyu
| Liu Zhenyu | Zhang Tianbao, Changchun Yongchun Automobile Shipping Co., Ltd., FAW Logistics Co., Ltd., Sanguard Automobile Insurance Co., Ltd. Jilin Branch, FAW Jiefang Automobile Co., Ltd. Smart Logistics Branch, FAW Jiefang Automobile Co., Ltd. | Traffic accident liability case | Kangping County People’s Court of Shenyang City | 268,262.96 | First instance |
As of June 30, 2024, the Company has no contingencies other than those mentioned above that should bedisclosed.
(2) Explanation is also required when the Company has no important contingencies to be disclosed
The Company has no important contingencies to be disclosed.
XVII. Events after the Balance Sheet Date
1. Notes on other events after the balance sheet date
The Company had no events after the balance sheet date to be disclosed as of August 29, 2024.
XVIII. Other Significant Matters
1. Annuity plan
The Company decided to participate in the enterprise annuity plan implemented by FAW Group from January 1,
2010, and 5 other companies implemented self-defined enterprise annuity plans according to the Labor Law of the
People’s Republic of China, the Trust Law of the People’s Republic of China, the Trial Measures for Enterprise
Annuity (Order No. 20 of the Ministry of Labor and Social Security) and other laws and regulations, and in
combination with actual situation of the Company.
Main contents of annuity plan are as follows:
(1) “Enterprise annuity” mentioned in this plan refers to the enterprise supplementary endowment insurance systemvoluntarily established by the enterprise and its employees according to national policies and regulations on thebasis of purchasing the basic endowment insurance and fulfilling the payment obligation according to law, and isan integral part of the enterprise employee compensation and welfare system.
(2) Organization, management and supervision: Enterprise representatives and employee representatives establishthe FAW Enterprise Annuity Council (hereinafter referred to as the Annuity Council) through collective negotiation.The Annuity Council is composed of enterprise and employee representatives, of which not less than one third areemployee representatives. The Annuity Council, as the trustee of this plan, is responsible for the operation andmanagement of FAW Group’s enterprise annuity fund.
(3) Fund raising and payment methods: The expenses required for enterprise annuity are jointly paid by theenterprise and employees.
(4) Account management: The enterprise annuity fund implements a full accumulation system and is managed bypersonal accounts. At the same time, enterprise accounts are established to collect unvested rights and interests.
(5) Fund management: The enterprise annuity fund consists of the following items: ① Enterprise’s payment; ②Employees’ payment; ③ Investment and operation income. The enterprise annuity fund is entrusted to the AnnuityCouncil for management. The enterprise and employee representatives entrust the Company to sign the enterpriseannuity fund entrusted management contract with the Annuity Council through collective negotiation, and entrustthe Annuity Council for management and market-oriented operation of the enterprise annuity fund collected by thisplan.
(6) Benefit planning and distribution: The employee’s payment and its investment income belong to the employee;the part of enterprise’s payment distributed to the individual account and its investment income belong to theemployee as specified, and the part not belonging to the individual is transferred to the enterprise account.
(7) Payment method of enterprise annuity: ① For the retired employee and the employee completing the retirementprocedures, the balance of the annuity personal account can be received at one time (or monthly, in several times orat one time based the balance of the individual account, the individual income tax burden, etc.); ② For the dead,the balance of the individual account of the enterprise annuity can be collected by the legal successor at one time;
③ For the overseas residents, the balance of the personal account of the enterprise annuity may be paid to them atone time according to their requirements.XIX. Notes to Major Items of Parent Company’s Financial Statements1 Other receivables
Unit: CNY
| Item | Ending balance | Opening balance |
| Other receivables | 219,864.00 | 219,864.00 |
| Total | 219,864.00 | 219,864.00 |
(1) Other receivables
1) Classification of other receivables by nature
Unit: CNY
| Nature | Ending book balance | Beginning Book Balance |
| Current account | 459,006.26 | 459,006.26 |
| Total | 459,006.26 | 459,006.26 |
2) Disclosure by aging
Unit: CNY
| Aging | Ending book balance | Beginning Book Balance |
| 2-3 years | 459,006.26 | 459,006.26 |
| Total | 459,006.26 | 459,006.26 |
3) Disclosure by the method of provision for bad debts
Unit: CNY
| Category | Ending balance | Opening balance | ||||||||
| Book balance | Provision for Bad Debts | Book Value | Book balance | Provision for Bad Debts | Book Value | |||||
| Amount | Percentage | Amount | Provision proportion | Amount | Percentage | Amount | Provision proportion | |||
| Including: | ||||||||||
| Provision for bad debts made by portfolio | 459,006.26 | 100.00% | 239,142.26 | 52.10% | 219,864.00 | 459,006.26 | 100.00% | 239,142.26 | 52.10% | 219,864.00 |
| Including: | ||||||||||
| Total | 459,006.26 | 100.00% | 239,142.26 | 52.10% | 219,864.00 | 459,006.26 | 100.00% | 239,142.26 | 52.10% | 219,864.00 |
Category name of provision for bad debt reserve by combination:
Unit: CNY
| Name | Ending balance | ||
| Book balance | Provision for Bad Debts | Provision proportion | |
| Provision for bad debts made by portfolio | 459,006.26 | 239,142.26 | 52.10% |
| Total | 459,006.26 | 239,142.26 | |
Description of the basis for determining this portfolio:
Provision for bad debts based on the general model of expected credit losses:
Unit: CNY
| Provision for Bad Debts | Stage I | Stage II | Stage III | Total |
| Expected Credit Losses for the Next 12 Months | Expected credit loss in the duration (credit impairment not occurred) | Expected credit loss for the entire duration (with credit impairment) | ||
| Balance as at January 1, 2024 | 239,142.26 | 239,142.26 | ||
| Balance on January 1, 2024 in the current period | ||||
| Balance as at June 30, 2024 | 239,142.26 | 239,142.26 |
Basis for stage division and proportion of bad debt provisionSignificant book balance changes occurred in the provision for losses in the current period
□Applicable ?Not applicable
4) Top five ending balances of other receivables classified by debtors
Unit: CNY
| Name of Unit | Nature of Payment | Ending balance | Aging | Proportion in total ending balance of other receivables | Ending Balance of Provision for Bad Debts |
| Customer 1 | Current account | 459,006.26 | 2-3 years | 100.00% | 239,142.26 |
| Total | 459,006.26 | 100.00% | 239,142.26 |
2. Long-term equity investment
Unit: CNY
| Item | Ending balance | Opening balance | ||||
| Book balance | Impairment Provision | Book Value | Book balance | Impairment Provision | Book Value | |
| Investment in subsidiaries | 21,084,445,613.03 | 21,084,445,613.03 | 21,084,445,613.03 | 21,084,445,613.03 | ||
| Investment in associated enterprises and joint ventures | 4,710,080,557.64 | 4,710,080,557.64 | 4,509,604,357.16 | 4,509,604,357.16 | ||
| Total | 25,794,526,170.67 | 25,794,526,170.67 | 25,594,049,970.19 | 25,594,049,970.19 | ||
(1) Investment in subsidiaries
Unit: CNY
| Investee | Opening balance (book value) | Opening balance of impairment provision | Increase/Decrease in the current period | Ending balance (book Value) | Ending balance of impairment provision | |||
| Additional Investment | Reduced Investment | Impairment Provision | Others | |||||
| FAW Jiefang Automotive Co., Ltd. | 21,084,445,613.03 | 21,084,445,613.03 | ||||||
| Total | 21,084,445,613.03 | 21,084,445,613.03 | ||||||
(2) Investment in associated enterprises and joint ventures
Unit: CNY
| Investor | Opening balance (book value) | Opening balance of impairment provision | Increase/Decrease in the current period | Ending balance (book Value) | Ending balance of impairment provision | |||||||
| Additional Investment | Reduced Investment | Investment gains or losses recognized under the equity method | Adjustment to other comprehensive income | Changes in other equity | Cash dividends and profits declared to pay | Impairment Provision | Others | |||||
| I. Joint ventures | ||||||||||||
| II. Associated enterprises | ||||||||||||
| First Automobile Finance Co., Ltd. | 4,337,808,758.45 | 192,765,866.35 | -96,836.64 | 4,530,477,788.16 | ||||||||
| Sanguard Automobile Insurance Co., Ltd. | 171,795,598.71 | 2,127,273.48 | 5,679,897.29 | 179,602,769.48 | ||||||||
| Subtotal | 4,509,604,357.16 | 194,893,139.83 | 5,583,060.65 | 4,710,080,557.64 | ||||||||
| Total | 4,509,604,357.16 | 194,893,139.83 | 5,583,060.65 | 4,710,080,557.64 | ||||||||
The recoverable amount is the net amount of the fair value after deducting the disposal expenses
□Applicable ?Not applicable
The recoverable amount is the present value of the expected future cash flow
□Applicable ?Not applicable
Reasons for apparent discrepancies between the foregoing information and the information used in the impairmenttests or external information in the previous yearReasons for apparent discrepancies between the information used in the Company’s impairment tests in theprevious year and the actual situation in the current year
3. Investment income
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Long-term equity investment income calculated with cost method | 353,500,000.00 | |
| Income from long-term equity investments accounted for using the equity method | 194,893,139.83 | 232,563,045.29 |
| Total | 548,393,139.83 | 232,563,045.29 |
XX. Supplementary Information
1. Breakdown of non-recurring profit or loss of current period
?Applicable □Not applicable
Unit: CNY
| Item | Amount | Description |
| Profits or losses on disposal of non-current assets | 746,088.82 | It refers to the net gain on disposal of non-current assets. |
| Government subsidies included in the current profit or loss (except those closely related to the Company’s normal operations, conforming to the State policies and regulations and enjoyed in line with the specified standards, and having a continuous impact on the profit or loss of the Company) | 209,501,338.40 | |
| Reversal of impairment provision for receivables subject to separate impairment test | 4,480,000.00 | It mainly refers to the reversal of impairment provision for receivables subject to separate impairment test. |
| Non-operating income and expenses other than | 24,323,682.07 | They mainly refer to the net non- |
| the above | operating income and expenses | |
| Less: amount affected by income tax | 44,675,062.74 | |
| Total | 194,376,046.55 | -- |
Specific conditions of other profit and loss items meeting the definition of non-recurring profit and loss:
□Applicable ?Not applicable
There is no specific conditions of profit and loss items meeting definition of non-recurring profit and loss for theCompany.Explanation on defining the non-recurring profit and loss items listed in the Explanatory Announcement No.1 onInformation Disclosure by Companies Issuing Securities Publicly - Non-recurring Profit and Loss as recurringprofit and loss items
□Applicable ?Not applicable
2. Return on net assets and earnings per share
| Profit for the Reporting Period | Weighted average return on equity | Earnings per Share | |
| Basic earnings per share (CNY/share) | Diluted earnings per share (CNY/share) | ||
| Net profit attributable to ordinary shareholders of the Company | 1.93% | 0.1034 | 0.1034 |
| Net profit attributable to ordinary shareholders of the Company after deduction of non-recurring profit and loss | 1.19% | 0.0614 | 0.0614 |
3. Differences in accounting data under domestic and foreign accounting standards
(1) Differences in net profits and net assets in the financial report disclosed simultaneously according to theinternational accounting standards and China accounting standards
□Applicable ?Not applicable
(2) Differences in net profits and net assets in the financial report disclosed simultaneously according toforeign accounting standards and China accounting standards
□Applicable ?Not applicable
(3) Explanation of the reasons for accounting data differences under domestic and foreign accountingstandards shall be given, and where data audited by an overseas audit authority has been adjusted based onthe differences, the name of the overseas institution shall be indicated.