Chongqing Changan Automobile Company Limited2021 Semi-annual Report Financial Statements
August 2021
The Financial Statements
I. Auditing ReportSemi-annual report is audited
□ Yes √ No
No audit on the semi-annual financial report.II. Financial statement mentFinancial in notes to the statements of the unit is: RMB yuan
1. Consolidated Balance Sheet
In RMB Yuan
| Account | 2021.6.30 | 2020.12.31 |
| Current assets: | ||
| Cash | 47,721,342,242.91 | 32,001,775,600.07 |
| Trading financial assets | 195,349,598.73 | 204,254,400.00 |
| Notes receivable | 28,778,252,297.19 | 28,371,541,054.75 |
| Accounts receivable | 1,628,018,973.81 | 2,141,197,139.45 |
| Prepayments | 386,980,948.32 | 460,703,603.80 |
| Other receivables | 1,590,660,654.32 | 723,919,037.36 |
| Inventories | 4,089,490,661.31 | 5,967,516,230.57 |
| Contract assets | 1,479,108,607.55 | 1,450,031,414.61 |
| Other current assets | 1,059,255,213.36 | 1,568,711,870.61 |
| Total current assets | 86,928,459,197.50 | 72,889,650,351.22 |
| Non-current assets: | ||
| Long-term equity investments | 11,571,676,934.12 | 12,109,089,795.67 |
| Investment in other equity instruments | 691,990,000.00 | 691,990,000.00 |
| Investment properties | 6,762,782.38 | 6,876,138.16 |
| Fixed assets | 23,289,621,403.41 | 24,298,402,558.49 |
| Construction in progress | 754,885,456.77 | 1,048,036,148.70 |
| Right-of-use asset | 68,982,797.00 | |
| Intangible assets | 4,141,087,463.87 | 4,433,771,236.26 |
| Development expenditure | 685,346,700.20 | 596,577,787.95 |
| Goodwill | 48,883,188.37 | 48,883,188.37 |
| Long-term deferred expenses | 12,303,868.61 | 10,642,512.51 |
| Deferred tax assets | 2,257,601,368.14 | 2,131,266,677.52 |
| Total non-current assets | 43,529,141,962.87 | 45,375,536,043.63 |
| TOTAL ASSETS | 130,457,601,160.37 | 118,265,186,394.85 |
| Current liabilities: | ||
| Short-term loans | 552,000,000.00 | 578,000,000.00 |
| Notes payable | 27,186,257,508.96 | 17,574,014,553.46 |
| Accounts payable | 24,517,099,039.98 | 23,118,793,794.42 |
| Contract liability | 4,667,333,563.93 | 4,471,158,190.75 |
| Payroll payable | 2,132,013,116.53 | 2,015,868,366.57 |
| Taxes payable | 607,975,454.79 | 1,292,001,263.86 |
| Other payables | 3,643,263,561.28 | 4,475,215,625.98 |
| Non-current liabilities within one year | 328,905,578.01 | 100,000,000.00 |
| Other current liabilities | 6,688,307,507.13 | 5,842,758,104.08 |
| Total current liabilities | 70,323,155,330.61 | 59,467,809,899.12 |
| Non-current liabilities: | ||
| Long-term loans | 654,300,000.00 | 955,300,000.00 |
| Lease liability | 26,430,150.16 | |
| Long-term payables | 207,811,375.66 | 261,260,928.70 |
| Long-term payroll payable | 38,679,134.87 | 41,634,000.00 |
| Estimated liabilities | 3,542,337,828.97 | 3,125,170,942.46 |
| Deferred Revenue | 1,260,920,806.57 | 818,398,430.21 |
| Deferred tax liabilities | 112,438,837.91 | 115,304,728.61 |
| Total non-current liabilities | 5,842,918,134.14 | 5,317,069,029.98 |
| Total liabilities | 76,166,073,464.75 | 64,784,878,929.10 |
| Owners’ equity (or Shareholders’ equity): | ||
| Share capital | 5,439,591,574.00 | 5,363,396,174.00 |
| Capital reserves | 11,469,222,886.42 | 10,930,781,918.64 |
| Other comprehensive income | 100,241,005.41 | 78,420,720.78 |
| Special reserves | 76,873,092.46 | 40,847,443.41 |
| Surplus reserves | 2,681,698,087.00 | 2,681,698,087.00 |
| Retained earnings | 34,378,050,740.32 | 34,315,048,892.26 |
| Equity attributable to owners | 54,145,677,385.61 | 53,410,193,236.09 |
| Minority interests | 145,850,310.01 | 70,114,229.66 |
| Total Owners’ equity (or Shareholders’ equity) | 54,291,527,695.62 | 53,480,307,465.75 |
| Liabilities and owners' equity (or shareholders' equity) in total | 130,457,601,160.37 | 118,265,186,394.85 |
Legal person: Zhu Huarong Chief financial officer: Zhang Deyong The head of accounting department: Chen Jianfeng
2. Balance sheet
In RMB Yuan
| Account | 2021.6.30 | 2020.12.31 |
| Current assets: | ||
| Cash | 39,359,211,333.65 | 25,238,014,025.38 |
| Trading financial assets | 163,778,100.00 | 180,929,400.00 |
| Notes receivable | 27,048,733,022.00 | 27,248,111,565.13 |
| Accounts receivable | 5,198,476,575.07 | 5,464,541,185.63 |
| Prepayments | 46,538,503.37 | 294,088,044.01 |
| Other receivables | 2,547,332,338.02 | 1,990,616,778.83 |
| Inventories | 2,258,720,911.74 | 4,332,579,774.46 |
| Contract assets | 933,593,869.30 | 941,046,613.60 |
| Other current assets | 658,687.55 | 322,467,261.74 |
| Total current assets | 77,557,043,340.70 | 66,012,394,648.78 |
| Non-current assets: | ||
| Long-term equity investments | 15,568,378,568.08 | 15,911,304,527.87 |
| Investment in other equity instruments | 681,630,000.00 | 681,630,000.00 |
| Fixed assets | 17,518,367,432.00 | 18,282,163,718.91 |
| Construction in progress | 546,437,512.04 | 586,144,839.34 |
| Right-of-use asset | 65,971,266.98 | |
| Intangible assets | 2,946,491,055.75 | 3,166,081,547.59 |
| Development expenditure | 654,152,078.23 | 555,569,523.02 |
| Long-term deferred expenses | 9,131,889.88 | 7,470,626.86 |
| Deferred tax assets | 1,904,135,032.43 | 1,803,491,965.40 |
| Total non-current assets | 39,894,694,835.39 | 40,993,856,748.99 |
| TOTAL ASSETS | 117,451,738,176.09 | 107,006,251,397.77 |
| Current liabilities: | ||
| Short-term loans | 510,000,000.00 | 510,000,000.00 |
| Notes payable | 24,003,015,056.60 | 14,600,240,612.86 |
| accounts payable | 18,528,961,362.63 | 18,770,044,628.44 |
| Contract liability | 4,023,516,395.94 | 3,885,522,883.33 |
| Payroll payable | 1,804,689,675.09 | 1,604,474,120.45 |
| Taxes payable | 395,274,764.10 | 1,045,768,022.62 |
| Other payables | 3,478,459,800.03 | 3,166,636,684.63 |
| Non-current liabilities due within one year | 301,000,000.00 | 100,000,000.00 |
| Other current liabilities | 5,804,606,576.64 | 5,235,294,795.79 |
| Total current liabilities | 58,849,523,631.03 | 48,917,981,748.12 |
| Non-current liabilities: | ||
| Long-term loans | 654,300,000.00 | 955,300,000.00 |
| Lease liability | 62,699,737.43 | |
| Long-term payables | 147,525,746.26 | 187,142,303.66 |
| Long-term payroll payable | 18,953,292.97 | 21,657,000.00 |
| Estimated liabilities | 2,650,626,670.22 | 2,196,924,682.57 |
| Deferred Revenue | 150,000,000.00 | 150,000,000.00 |
| Deferred tax liabilities | 72,585,956.38 | 75,158,651.38 |
| Total non-current liabilities | 3,756,691,403.26 | 3,586,182,637.61 |
| Total liabilities | 62,606,215,034.29 | 52,504,164,385.73 |
| Owners’ equity (or Shareholders’ equity): | ||
| Share capital | 5,439,591,574.00 | 5,363,396,174.00 |
| Capital reserves | 10,979,337,870.30 | 10,440,896,902.52 |
| Other comprehensive income | 159,954,052.00 | 159,954,052.00 |
| Special reserves | 16,479,840.77 | 7,505,438.57 |
| Surplus reserves | 2,681,698,087.00 | 2,681,698,087.00 |
| Retained earnings | 35,568,461,717.73 | 35,848,636,357.95 |
| Total Owners’ equity (or Shareholders’ equity) | 54,845,523,141.80 | 54,502,087,012.04 |
| Liabilities and owners' equity (or shareholders' equity) in total | 117,451,738,176.09 | 107,006,251,397.77 |
3. Consolidated Income Statement
In RMB Yuan
| Account | Current Period | Prior Period |
| 1.Total operating revenue | 56,784,631,899.07 | 32,781,657,479.10 |
| Less:Operating cost | 48,086,677,229.21 | 29,578,074,559.16 |
| Tax and surcharges | 2,087,694,667.07 | 1,206,286,383.45 |
| Operating expenses | 2,146,115,312.19 | 1,270,716,006.91 |
| General and administrative expenses | 2,217,147,044.50 | 1,145,860,984.31 |
| Research and development expenses | 1,495,583,362.16 | 1,423,575,470.37 |
| Financial expenses | -233,776,490.65 | -98,218,545.38 |
| Interest expense | 26,372,186.29 | 20,373,153.36 |
| Interest income | 281,294,223.92 | 131,048,028.86 |
| Add: Other income | 106,783,041.12 | |
| Investment income | 327,872,465.08 | 3,000,803,663.99 |
| Including: Investment income from associates and joint venture | 250,708,951.37 | -528,282,156.89 |
| Gains from changes in fair value | 15,734,698.73 | 1,753,674,697.00 |
| Credit impairment loss | -3,486,242.35 | -18,713,783.01 |
| Asset impairment loss | -195,687,107.11 | -212,828,953.71 |
| Gain on disposal of assets | 601,066,861.33 | 33,428,646.97 |
| 3.Operating profit | 1,837,474,491.39 | 2,811,726,891.52 |
| Add: Non-operating income | 40,983,845.94 | 31,178,860.44 |
| Less: Non-operating expenses | 14,103,602.29 | 51,351,646.13 |
| 4.Total profit | 1,864,354,735.04 | 2,791,554,105.83 |
| Less: Income tax expense | 59,373,446.09 | 189,931,296.64 |
| 5.Net profit | 1,804,981,288.95 | 2,601,622,809.19 |
| Classification by going concern | ||
| Net profit from continuing operations | 1,804,981,288.95 | 2,601,622,809.19 |
| Net profit from discontinued operations | ||
| Classification by ownership attribution | ||
| Net profit attributable to owners | 1,729,245,208.60 | 2,602,166,402.68 |
| Minority interests | 75,736,080.35 | -543,593.49 |
| 6.Other comprehensive income, net of tax | 21,820,284.63 | 6,766,939.37 |
| Net after-tax net of other comprehensive income attributable to the parent company owner | 21,820,284.63 | 6,766,939.37 |
| Other comprehensive income that will be reclassified into profit or loss | 21,820,284.63 | 6,766,939.37 |
| Foreign currency financial statement translation difference | 21,820,284.63 | 6,766,939.37 |
| 7.Total comprehensive income | 1,826,801,573.58 | 2,608,389,748.56 |
| Total comprehensive income attributable to owners | 1,751,065,493.23 | 2,608,933,342.05 |
| Total comprehensive income attributable to minority interest | 75,736,080.35 | -543,593.49 |
| 8.Earnings per share | ||
| Basic earnings per share | 0.32 | 0.54 |
| Diluted earnings per share | Not applicable | Not applicable |
4. Income Statement
In RMB Yuan
| Account | Current Period | Prior Period |
| 1.Operating revenue | 52,828,405,180.72 | 29,758,919,897.37 |
| Less: Operating cost | 45,513,544,394.59 | 27,864,973,824.68 |
| Tax and surcharges | 1,525,114,802.32 | 762,021,502.79 |
| Operating expenses | 1,736,500,574.77 | 961,038,581.56 |
| General and administrative expenses | 1,878,247,754.81 | 715,649,867.54 |
| Research and development expenses | 1,298,099,887.53 | 1,380,814,145.22 |
| Financial expenses | -204,613,231.91 | -98,135,764.79 |
| Interest expense | 21,764,130.34 | 4,888,747.72 |
| Interest income | 236,842,142.30 | 110,304,548.86 |
| Add: Other income | ||
| Investment income | 428,119,303.94 | 2,317,139,772.66 |
| Including: Investment income from associates and joint venture | 349,815,853.13 | -430,245,711.08 |
| Gains from changes in fair value | -17,151,300.00 | -21,300,000.00 |
| Credit impairment loss | -2,086,388.91 | -16,528,225.28 |
| Asset impairment loss | -213,509,747.87 | -167,332,499.89 |
| Gain on disposal of assets | 4,920,912.69 | -10,976,304.75 |
| 2.Operating profit | 1,281,803,778.46 | 273,560,483.11 |
| Add: Non-operating income | 11,549,617.96 | 22,925,521.70 |
| Less: Non-operating expenses | 10,500,438.13 | 43,916,807.17 |
| 3.Total profit | 1,282,852,958.29 | 252,569,197.64 |
| Less: Income tax expense | -103,215,762.03 | -85,786,079.95 |
| 4.Net profit | 1,386,068,720.32 | 338,355,277.59 |
| Net profit from continuing operations | 1,386,068,720.32 | 338,355,277.59 |
| Net profit from discontinued operations | ||
| 5.Other comprehensive income, net of tax | ||
| 6.Total comprehensive income | 1,386,068,720.32 | 338,355,277.59 |
| 7.Earnings per share | ||
| Basic earnings per share | 0.25 | 0.07 |
| Diluted earnings per share | Not applicable | Not applicable |
5. Consolidated cash flow statement
In RMB Yuan
| Account | Current Period | Prior Period |
| 1.Cash flows from operating activities: | ||
| Cash received from sale of goods or rendering of services | 63,916,698,589.71 | 39,547,166,284.75 |
| Refunds of taxes | 479,978,596.74 | 212,875,606.35 |
| Cash received relating to other operating activities | 1,798,083,078.94 | 1,460,594,720.28 |
| Subtotal of cash inflows | 66,194,760,265.39 | 41,220,636,611.38 |
| Cash paid for goods and services | 37,506,989,506.50 | 26,823,061,336.77 |
| Cash paid to and on behalf of employees | 3,273,064,979.18 | 2,602,751,432.93 |
| Cash paid for all types of taxes | 4,360,350,113.07 | 1,774,453,965.05 |
| Cash paid relating to other operating activities | 3,355,528,796.27 | 3,107,783,183.03 |
| Subtotal of cash outflows | 48,495,933,395.02 | 34,308,049,917.78 |
| Net cash flows from operating activities | 17,698,826,870.37 | 6,912,586,693.60 |
| 2.Cashflows from investing activities: | ||
| Cash received from investment income | 10,806,875.00 | 52,200,268.08 |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 47,111,653.89 | 50,925,772.51 |
| Cash received relating to other investing activities | 300,000,000.00 | 2,401,804.55 |
| Subtotal of cash inflows | 357,918,528.89 | 105,527,845.14 |
| Cash paid for acquisition of fixed assets, intangible assets and other long-term assets | 1,022,801,871.76 | 1,240,508,778.71 |
| Cash paid for acquisition of investments | 1,000,000.00 | 13,494,996.00 |
| Cash paid relating to other investing activities | 104,231,229.20 | |
| Subtotal of cash outflows | 1,023,801,871.76 | 1,358,235,003.91 |
| Net cash flows from investing activities | -665,883,342.87 | -1,252,707,158.77 |
| 3.Cash flows from financing activities: | ||
| Absorb cash received from investment | 507,461,364.00 | - |
| Cash received from borrowing | 20,000,000.00 | 1,661,945,472.30 |
| Cash received relating to other financing activities | 312,220,372.75 | 330,073,299.87 |
| Subtotal of cash inflows | 839,681,736.75 | 1,992,018,772.17 |
| Cash repayments of borrowings | 146,000,000.00 | 26,000,000.00 |
| Cash paid for distribution of dividends or profits and interest expenses | 1,690,977,626.11 | 14,711,837.52 |
| Cash paid relating to other financing activities | 418,592,802.69 | 141,928,386.47 |
| Subtotal of cash outflows | 2,255,570,428.80 | 182,640,223.99 |
| Net cash flows from financing activities | -1,415,888,692.05 | 1,809,378,548.18 |
| 4.Effect of changes in exchange rate on cash | -3,619,293.07 | -8,613,576.66 |
| 5.Net increase in cash and cash equivalents | 15,613,435,542.38 | 7,460,644,506.35 |
| Add: Opening balance of cash and cash equivalents | 30,655,968,057.63 | 9,360,474,674.89 |
| 6.Closing balance of cash and cash equivalents | 46,269,403,600.01 | 16,821,119,181.24 |
6. Cash flow statement
In RMB Yuan
| Account | Current Period | Prior Period |
| 1.Cash flows from operating activities: | ||
| Cash received from sale of goods or rendering of services | 55,145,607,987.10 | 35,373,943,984.62 |
| Cash received relating to other operating activities | 1,092,865,948.69 | 307,884,774.24 |
| Subtotal of cash inflows | 56,238,473,935.79 | 35,681,828,758.86 |
| Cash paid for goods and services | 31,953,727,307.50 | 24,853,008,533.51 |
| Cash paid to and on behalf of employees | 2,404,181,310.34 | 1,869,061,222.17 |
| Cash paid for all types of taxes | 3,332,896,561.58 | 745,408,673.77 |
| Cash paid relating to other operating activities | 2,779,051,429.05 | 1,991,778,401.18 |
| Subtotal of cash outflows | 40,469,856,608.47 | 29,459,256,830.63 |
| Net cash flows from operating activities | 15,768,617,327.32 | 6,222,571,928.23 |
| 2.Cashflows from investing activities: | ||
| Cash received from return on investments | 12,015,208.33 | 56,622,717.45 |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 7,594,323.89 | 93,034.76 |
| Other cash received relating to investing activities | 500,000,000.00 | |
| Subtotal of cash inflows | 519,609,532.22 | 56,715,752.21 |
| Cash paid for acquisition of fixed assets, intangible assets and other long-term assets | 883,493,763.31 | 992,736,013.34 |
| Cash paid for acquisition of investments | 1,000,000.00 | 186,108,581.00 |
| Subtotal of cash outflows | 884,493,763.31 | 1,178,844,594.34 |
| Net cash flows from investing activities | -364,884,231.09 | -1,122,128,842.13 |
| 3.Cash flows from financing activities: | ||
| Absorb cash received from investment | 507,461,364.00 | - |
| Cash received from borrowings | 1,500,000,000.00 | |
| Subtotal of cash inflows | 507,461,364.00 | 1,500,000,000.00 |
| Cash paid for debt repayment | 100,000,000.00 | |
| Cash paid for distribution of dividends or profits and interest expenses | 1,689,755,862.22 | 3,676,533.11 |
| Cash paid relating to other financing activities | 31,241,289.74 | |
| Subtotal of cash outflows | 1,820,997,151.96 | 3,676,533.11 |
| Net cash flows from financing activities | -1,313,535,787.96 | 1,496,323,466.89 |
| 4.Effect of changes in exchange rate on cash | ||
| 5.Net increase in cash and cash equivalents | 14,090,197,308.27 | 6,596,766,552.99 |
| Add: Opening balance of cash and cash equivalents | 25,190,870,784.06 | 6,563,020,335.56 |
| 6.Closing balance of cash and cash equivalents | 39,281,068,092.33 | 13,159,786,888.55 |
7. Consolidated statement of changes in shareholders’ equity
In RMB Yuan
| Items | Current period | |||||||||
| Equity attributable to owners | Minority interest | Total equity | ||||||||
| Share capital | Capital reserves | Less: Treasury shares | Special reserves | Surplus reserves | General reserves | Retained earnings | Other comprehensive income | |||
| I. At end of last year | 5,363,396,174.00 | 10,930,781,918.64 | 40,847,443.41 | 2,681,698,087.00 | 34,315,048,892.26 | 78,420,720.78 | 70,114,229.66 | 53,480,307,465.75 | ||
| II. At beginning of year | 5,363,396,174.00 | 10,930,781,918.64 | 40,847,443.41 | 2,681,698,087.00 | 34,315,048,892.26 | 78,420,720.78 | 70,114,229.66 | 53,480,307,465.75 | ||
| III. Changes during the year | 76,195,400.00 | 538,440,967.78 | 36,025,649.05 | 63,001,848.06 | 21,820,284.63 | 75,736,080.35 | 811,220,229.87 | |||
| 1.Total comprehensive income | 1,729,245,208.60 | 21,820,284.63 | 75,736,080.35 | 1,826,801,573.58 | ||||||
| 2. Capital contributed by owners and capital decreases | 76,195,400.00 | 538,440,967.78 | 614,636,367.78 | |||||||
| The amount of share-based payment included in owner's equity | 76,195,400.00 | 538,440,967.78 | 614,636,367.78 | |||||||
| 3. Distribution of profit | -1,666,243,360.54 | -1,666,243,360.54 | ||||||||
| Distribution to owners | -1,666,243,360.54 | -1,666,243,360.54 | ||||||||
| 4. Special reserves | 36,025,649.05 | 36,025,649.05 | ||||||||
| (1) Pick-up in current period | 61,973,559.99 | 61,973,559.99 | ||||||||
| (2) Used in current period | -25,947,910.94 | -25,947,910.94 | ||||||||
| IV. At end of current period | 5,439,591,574.00 | 11,469,222,886.42 | 76,873,092.46 | 2,681,698,087.00 | 34,378,050,740.32 | 100,241,005.41 | 145,850,310.01 | 54,291,527,695.62 | ||
Prior period
In RMB Yuan
| Items | Prior period | |||||||||
| Equity attributable to owners | Minority interest | Total equity | ||||||||
| Share capital | Capital reserves | Less: Treasury shares | Special reserves | Surplus reserves | General reserves | Retained earnings | Other comprehensive income | |||
| I. At end of last year | 4,802,648,511.00 | 5,366,097,594.66 | 47,076,242.71 | 2,401,324,255.50 | 31,271,171,559.60 | 139,994,580.19 | -94,241,765.21 | 43,934,070,978.45 | ||
| II. At beginning of year | 4,802,648,511.00 | 5,366,097,594.66 | 47,076,242.71 | 2,401,324,255.50 | 31,271,171,559.60 | 139,994,580.19 | -94,241,765.21 | 43,934,070,978.45 | ||
| III. Changes during the year | 31,323,255.07 | 2,602,166,402.68 | 6,766,939.37 | -543,593.49 | 2,639,713,003.63 | |||||
| 1.Total comprehensive income | 2,602,166,402.68 | 6,766,939.37 | -543,593.49 | 2,608,389,748.56 | ||||||
| 2. Capital contributed by owners and capital decreases | ||||||||||
| 3. Distribution of profit | ||||||||||
| 4. Special reserves | 31,323,255.07 | 31,323,255.07 | ||||||||
| (1) Pick-up in current period | 58,125,436.05 | 58,125,436.05 | ||||||||
| (2) Used in current period | -26,802,180.98 | -26,802,180.98 | ||||||||
| IV. At end of current period | 4,802,648,511.00 | 5,366,097,594.66 | 78,399,497.78 | 2,401,324,255.50 | 33,873,337,962.28 | 146,761,519.56 | -94,785,358.70 | 46,573,783,982.08 | ||
8. Statement of changes in shareholders’ equity
In RMB Yuan
| Items | Current period | |||||||
| Share capital | Capital reserves | Less: Treasury shares | Special reserves | Surplus reserves | Retained earnings | Other comprehensive income | Total equity | |
| I. At end of last year | 5,363,396,174.00 | 10,440,896,902.52 | 7,505,438.57 | 2,681,698,087.00 | 35,848,636,357.95 | 159,954,052.00 | 54,502,087,012.04 | |
| II. At beginning of year | 5,363,396,174.00 | 10,440,896,902.52 | 7,505,438.57 | 2,681,698,087.00 | 35,848,636,357.95 | 159,954,052.00 | 54,502,087,012.04 | |
| III. Changes during the year | 76,195,400.00 | 538,440,967.78 | 8,974,402.20 | -280,174,640.22 | 343,436,129.76 | |||
| 1.Total comprehensive income | 1,386,068,720.32 | 1,386,068,720.32 | ||||||
| 2. Capital contributed by owners and capital decreases | 76,195,400.00 | 538,440,967.78 | 614,636,367.78 | |||||
| The amount of share-based payment included in owner's equity | 76,195,400.00 | 538,440,967.78 | 614,636,367.78 | |||||
| 3. Distribution of profit | -1,666,243,360.54 | -1,666,243,360.54 | ||||||
| Distribution to owners | -1,666,243,360.54 | -1,666,243,360.54 | ||||||
| 4. Special reserves | 8,974,402.20 | 8,974,402.20 | ||||||
| (1) Pick-up in current period | 26,035,435.80 | 26,035,435.80 | ||||||
| (2) Used in current period | -17,061,033.60 | -17,061,033.60 | ||||||
| IV. At end of current period | 5,439,591,574.00 | 10,979,337,870.30 | 16,479,840.77 | 2,681,698,087.00 | 35,568,461,717.73 | 159,954,052.00 | 54,845,523,141.80 | |
Prior period
In RMB Yuan
| Items | Prior period | |||||||
| Share capital | Capital reserves | Less: Treasury shares | Special reserves | Surplus reserves | Retained earnings | Other comprehensive income | Total equity | |
| I. At end of last year | 4,802,648,511.00 | 5,014,772,792.87 | 19,917,658.63 | 2,401,324,255.50 | 31,852,751,052.34 | 259,380,413.58 | 44,350,794,683.92 | |
| Add: others | -354,897,932.62 | -354,897,932.62 | ||||||
| II. At beginning of year | 4,802,648,511.00 | 5,014,772,792.87 | 19,917,658.63 | 2,401,324,255.50 | 31,497,853,119.72 | 259,380,413.58 | 43,995,896,751.30 | |
| III. Changes during the year | 1,785,128.50 | 338,355,277.59 | 340,140,406.09 | |||||
| 1.Total comprehensive income | 338,355,277.59 | 338,355,277.59 | ||||||
| 2. Capital contributed by owners and capital decreases | ||||||||
| 3. Distribution of profit | ||||||||
| 4. Special reserves | 1,785,128.50 | 1,785,128.50 | ||||||
| (1) Pick-up in current period | 23,380,155.36 | 23,380,155.36 | ||||||
| (2) Used in current period | -21,595,026.86 | -21,595,026.86 | ||||||
| IV. At end of current period | 4,802,648,511.00 | 5,014,772,792.87 | 21,702,787.13 | 2,401,324,255.50 | 31,836,208,397.31 | 259,380,413.58 | 44,336,037,157.39 | |
III. CORPORATE INFORMATIONChongqing Changan Automobile Company Limited (hereafter referred to as the “Company”) is a company limited by sharesregistered in Chongqing, People’s Republic of China. It was establish on 31 October 1996 with an indefinite business period. Theordinary A shares of Renminbi issued by the company and the B shares of domestically listed foreign shares have been listed on theShenzhen Stock Exchange. Changan Group is headquartered at 260 Jianxin East Road, Jiangbei District, Chongqing, China.
After the establishment of the company, the share capital and shareholding structure have undergone several changes. As of June 30,2021, the company’s controlling shareholder China Changan Automobile Group Company Limited (hereinafter referred to as “ChinaChangan”) and its wholly-owned subsidiary Zhonghui Futong (Hong Kong) Investment Company Limited held a total of ordinaryshares of the company1,175,623,127 shares with an equity ratio of 21.61%. China South Industries Group Co., Ltd. (hereinafterreferred to as “China South Group”), the parent company of China Changan, and its wholly-owned subsidiary, South IndustriesInternational Holdings (Hong Kong) Company Limited, hold 1,139,295,521 ordinary shares of the company, with a 20.90%shareholding ratio. China Changan and China South Group holds ordinary shares 2,314,918,648 in total with a shareholding ratio of
42.56%.
The Company and its subsidiaries collectively refer to as the Group, and its main business activities are: the manufacturing and salesof automobiles (including cars), automobile engine products, and supporting parts.
The holding company and ultimate holding company of the Company are China Changan and China South Group respectively.
The scope of consolidation in the consolidated financial statement is determined based on control. For the consolidation scope of thisyear, please refer to Note VIII.
IV. BASIS OF PREPERATIONThe financial statements have been prepared in accordance with Accounting Standards for Business Enterprises-Basic Standard andthe specific standards issued and modified subsequently, and the implementation guidance, interpretations and other relevantprovisions issued subsequently by the MOF (correctly referred to as “Accounting Standards for Business Enterprises”).
The financial statements are presented on a going concern basis.
The financial statements have been prepared under the historical cost convention, except for certain financial instruments. If theassets are impaired, the corresponding provisions should be made accordingly.
V. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESAccording to the actual production and operation characteristics, the group formulated the specific accounting policies andaccounting estimates, mainly reflected in provision of accounts receivables, inventory valuation, depreciation of fixed assets,intangible assets amortization, condition of capitalization of research and development expense and revenue recognition andmeasurement.
1. Statement of compliance with Accounting Standards for Business Enterprises
The financial statements present fairly and fully, the financial position of the Company as at 31 December 2020 and the financialresults and the cash flows for the year then ended in accordance with Accounting Standards for Business Enterprises.
2. Accounting year
The accounting year of the Group is from 1 January to 31 December of each calendar year.
3. Functional currency
The Group’s functional and reporting currency is the Renminbi (“RMB”). Unless otherwise stated, the unit of the currency is Yuan.Each entity in the Group determines its own functional currency in accordance with the operating circumstances. At the end of thereporting period, the foreign currency financial statements are translated into the reporting currency of the Company of RMB.
4. Business combination
Business combinations are classified into business combinations involving entities under common control and business combinationsinvolving entities not under common control.
Business combination involving entities under common controlA business combination involving entities under common control is a business combination in which all of the combining entities areultimately controlled by the same party or parties both before and after the combination, and that control is not transitory. For abusiness combination involving entities under common control, the party which, on the combination date, obtains control of anotherentity participating in the combination is the acquiring party, while that other entity participating in the combination is a party beingacquired. Combination date is the date on which the acquiring party effectively obtains control of the party being acquired.
Assets and liabilities that are obtained by the acquiring party in a business combination involving entities under common controlshall be measured at their carrying amounts at the combination date as recorded by the party being acquired. The difference betweenthe carrying amount of the net assets obtained and the carrying amount of the consideration paid for the combination (or theaggregate face value of shares issued as consideration) shall be adjusted to capital reserve. If the capital reserve is not sufficient toabsorb the difference, any excess shall be adjusted against retained earnings.
Business combination involving entities not under common controlA business combination involving entities not under common control is a business combination in which all of the combining entitiesare not ultimately controlled by the same party or parties both before and after the combination. For a business combinationinvolving entities not under common control, the party that, on the acquisition date, obtains control of another entity participating inthe combination is the acquirer, while that other entity participating in the combination is the acquiree. Acquisition date is the date onwhich the acquirer effectively obtains control of the acquiree.
The acquirer shall measure the acquiree’s identifiable assets, liabilities and contingent liabilities acquired in the business combinationat their fair values on the acquisition date.
Goodwill is initially recognized and measured at cost, being the excess of the aggregate of the fair value of the considerationtransferred (or the fair value of the equity securities issued) and any fair value of the Group’s previously held equity interest in the
acquiree over the Group’s interest in the fair value of the acquiree’s net identifiable assets. After initial recognition, goodwill ismeasured at cost less any accumulated impairment losses. Where the aggregate of the fair value of the consideration transferred (orthe fair value of the equity securities issued) and any fair value of the Group’s previously held equity interest in the acquiree is lowerthan the Group’s interest in the fair value of the acquiree’s net identifiable assets, the Group reassesses the measurement of the fairvalue of the acquiree’s identifiable assets, liabilities and contingent liabilities and the fair value of the consideration transferred (orthe fair value of the equity securities issued), together with the fair value of the Group’s previously held equity interest in theacquiree. If after that reassessment, the aggregate of the fair value of the consideration transferred (or the fair value of the equitysecurities issued) and the Group’s previously held equity interest in the acquiree is still lower than the Group’s interest in the fairvalue of the acquiree’s net identifiable assets, the Group recognize the remaining difference in profit or loss.
5. Consolidated financial statements
The scope of the consolidated financial statements, which include the financial statements of the Company and all of its subsidiaries,is determined on the basis of control. A subsidiary is an entity that is controlled by the Company (such as an enterprise, a deemedseparate entity, or a structured entity controlled by the Company).
In the preparation of the consolidated financial statements, the financial statements of the subsidiaries are prepared for the samereporting period as the Company, using consistent accounting policies. All intra-group assets and liabilities, equity, income, expensesand cash flows relating to transactions between members of the Group are eliminated in full on consolidation.
When the current loss belong to minorities of the subsidiary exceeds the beginning equity of the subsidiary belong to minorities, theexceeded part will still deduct the equity belong to minorities.
With respect to subsidiaries acquired through business combinations involving entities not under common control, the operatingresults and cash flows of the acquiree should be included in the consolidated financial statements, from the day that the Group gainscontrol, till the Group ceases the control of it. While preparing the consolidated financial statements, the acquirer should adjust thesubsidiary’s financial statements, on the basis of the fair values of the identifiable assets, liabilities and contingent liabilitiesrecognized on the acquisition date.
With respect to subsidiaries acquired through business combinations involving entities under common control, the operating resultsand cash flows of the acquiree should be included in the consolidated financial statements from the beginning of the period in whichthe combination occurs.
If the changes of relevant facts and circumstances will result in the changes of one or more control elements, then the Group shouldreassess whether it has taken control of the investee.
6. Joint venture arrangement classification and joint operation
Joint venture arrangements are classified into joint operation and joint venture. Joint operation refers to those joint venturearrangements, relevant assets and liabilities of which are enjoyed and assumed by the joint ventures. Joint ventures refer to those jointventure arrangements, only the right to net assets of which is enjoyed by the joint ventures.
Any joint venture shall recognize the following items related to its share of benefits in the joint operation and conduct accounting
treatment in accordance with relevant accounting standards for business enterprises: assets it solely holds and its share of jointly-heldassets based on its percentage; liabilities it solely assumes and its share of jointly-assumed liabilities based on its percentage; incomesfrom sale of output enjoyed by it from the joint operation; incomes from sale of output from the joint operation based on itspercentage; and separate costs and costs for the joint operation based on its percentage.
7. Cash and cash equivalents
Cash comprises cash on hand and bank deposits which can be used for payment at any time; Cash equivalents are short-term, highlyliquid investments held by the Group, that are readily convertible to known amounts of cash and which are subject to an insignificantrisk of changes in value.
8. Foreign currency translation
The Group translates the amount of foreign currency transactions occurred into functional currency.
The foreign currency transactions are recorded, on initial recognition in the functional currency, by applying to the foreign currencyamount at the spot exchange rate on the transaction dates. Foreign currency monetary items are translated using the spot exchangerate quoted by the People’s Bank of China at the balance sheet date. The exchange gains or losses arising from occurrence oftransactions and exchange of currencies, except for those relating to foreign currency borrowings specifically for construction andacquisition of fixed assets capitalized, are dealt with in the profit and loss accounts. Non-monetary foreign currency items measuredat historical cost remain to be translated at the spot exchange rate prevailing on the transaction date, and the amount denominated inthe functional currency should not be changed. Non-monetary foreign currency items measured at fair value should be translated atthe spot exchange rate prevailing on the date when the fair values are determined. The exchange difference thus resulted should becharged to the current income or other comprehensive income account of the current period.
When preparing consolidated financial statements, the financial statements of the subsidiaries presented in foreign currencies aretranslated into Renminbi as follows: asset and liability accounts are translated into Renminbi at exchange rates ruling at the balancesheet date; shareholders’ equity accounts other than retained profits are translated into Renminbi at the applicable exchange ratesruling at the transaction dates; income and expense in income statement are translated into Renminbi at spot exchange rates ontransaction occurrence; total difference between translated assets and translated liabilities and shareholders’ equity is separately listedas “foreign currency exchange differences” below retained profits. The translation difference arising from the settlement of overseasubsidiaries is charged to the current liquidation profit and loss in proportion to the settlement ratio of the assets concerned.
Foreign currency cash flows and the cash flows of foreign subsidiaries should be translated using the average exchange rateprevailing on the transaction month during which the cash flows occur. The amount of the effect on the cash arising from the changein the exchange rate should be separately presented as an adjustment item in the cash flow statement.
9. Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument ofanother entity.
Recognition and derecognition
The Group recognizes a financial asset or a financial liability, when the Group becomes a party to the contractual provision of theinstrument.
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarilyderecognized (i.e., removed from the Group’s consolidated balance sheet) when:
1) the rights to receive cash flows from the financial asset have expired;
2) the Group has transferred its rights to receive cash flows from the financial asset, or has assumed an obligation to pay the receivedcash flows in full without material delay to a third party under a “pass-through” arrangement; and either (a) has transferredsubstantially all the risks and rewards of the financial asset, or (b) has neither transferred nor retained substantially all the risks andrewards of the asset, but has transferred control of the financial asset.
A financial liability is derecognized when the obligation under the liability is discharged or cancelled, or expires. When an existingfinancial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability aresubstantially modified, such an exchange or modification is treated as a derecognition of the original liability and a recognition of anew liability, and the difference between the respective carrying amounts is recognized in profit or loss.
Regular way purchases and sales of financial assets are recognized and derecognized using trade date accounting. Regular waypurchases or sales are purchases or sales of financial assets that require delivery within the period generally established by regulationor convention in the marketplace. The trade date is the date that the Group committed to purchase or sell a financial asset.
Classification and measurement of financial assets
The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics andthe Group’s business model for managing them: financial assets at fair value through profit or loss, financial assets at amortized costand financial assets at fair value through other comprehensive income. All affected related financial assets will be reclassified only ifthe Group changes its business model for managing financial assets.
Financial assets are measured at fair value on initial recognition, but accounts receivable or notes receivable arising from the sale ofgoods or rendering of services that do not contain significant financing components or for which the Group has applied the practicalexpedient of not adjusting the effect of a significant financing component due within one year, are initially measured at thetransaction price.
For financial assets at fair value through profit or loss, relevant transaction costs are directly recognized in profit or loss, andtransaction costs relating to other financial assets are included in the initial recognition amounts.
The subsequent measurement of financial assets depends on their classification as follows:
Debt investments measured at amortized costThe Group measures financial assets at amortized cost if both of the following conditions are met: the financial asset is held within a
business model with the objective to hold financial assets in order to collect contractual cash flows; the contractual terms of thefinancial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amountoutstanding. Financial assets at amortized cost are subsequently measured using the effective interest method. Gains and losses arerecognized in profit or loss when the asset is derecognized, modified or impaired.
Debt investments at fair value through other comprehensive incomeThe Group measures debt investments at fair value through other comprehensive income if both of the following conditions are met:
the financial asset is held within a business model with the objective of both holding to collect contractual cash flows and selling; thecontractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest onthe principal amount outstanding. Interest income is recognized using the effective interest method. The interest income, impairmentlosses and foreign exchange revaluation are recognized in profit or loss. The remaining fair value changes are recognized in othercomprehensive income. Upon derecognition, the cumulative fair value change recognized in other comprehensive income is recycledto profit or loss.
Equity investments at fair value through other comprehensive incomeThe Group can elect to classify irrevocably its equity investments which are not held for trading as equity investments designated atfair value through other comprehensive income. Only the relevant dividend income (excluding the dividend income explicitlyrecovered as part of the investment cost) is recognized in profit or loss. Subsequent changes in the fair value are included in othercomprehensive income, and no provision for impairment is made. When the financial asset is derecognized, the accumulated gains orlosses previously included in other comprehensive income are transferred from other comprehensive income to retained earnings.
Financial assets at fair value through profit or lossThe financial assets other than the above financial assets measured at amortized cost and financial assets at fair value through othercomprehensive income are classified as financial assets at fair value through profit or loss. Such financial assets are subsequentlymeasured at fair value with net changes in fair value recognized in profit or loss.
Classification and measurement of financial liabilities
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, other financialliabilities. For financial liabilities at fair value through profit or loss, relevant transaction costs are directly recognized in profit or loss,and transaction costs relating to other financial assets are included in the initial recognition amounts.
The subsequent measurement of financial liabilities depends on their classification as follows:
Financial liabilities at fair value through profit or lossFinancial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designatedupon initial recognition as at fair value through profit or loss. Financial liabilities held for trading are subsequently measured at fairvalue with net changes in fair value recognized in profit or loss. Gains or losses on liabilities designated at fair value through profit orloss are recognised in profit or loss, except for the gains or losses arising from the Group’s own credit risk which are presented inother comprehensive income with no subsequent reclassification to profit or loss.
Other financial liabilities
Other financial liabilities are subsequently measured at amortized cost using the effective interest method.
Impairment of financial assets
On the basis of expected credit losses, the Group performs impairment treatment on financial assets measured at amortized cost andequity instrument investments measured at fair value and whose changes are included in other comprehensive income, and reservesfor loss are recognized.
For receivables and contract assets that do not contain significant financing components, the Group uses a simplified measurementmethod to measure the loss provision vased on the expected credit loss amount for the entire duration.
For financial assets other than the simplified measurement method mentioned above, the Group assesses on each balance sheet datewhether its credit risk has not increased significantly since initial recognition, it is in the first stage. The Group measures the lossprovision based on the amount equivalent to the expected credit loss in the next 12 months, and calculates the interest income basedon the book balance and the actual interest rate; if the credit risk has increased significantly since initial recognition but has not yetsuffered credit impairment, it is in the second at this stage, the Group measures the loss provision based on the amount equivalent tothe expected credit loss for the entire duration, and calculates the interest income based on the book balance and the actual interestrate; If credit impairment occurs after initial recognition, it is in the third stage. The amount of expected credit losses is measuredover the entire duration of the loss allowance, and interest income is calculated based on amortized cost and effective interest rate.For financial instruments with low credit risk on the balance sheet date, the Group assumes that their credit risk has not increasedsignificantly since initial recognition.
The Group assesses the expected credit losses of financial instruments based on individual items and portfolios. The Group hasconsidered the credit risk characteristics of different customers and evaluated the expected credit losses of accounts receivable andother receivables based on the ageing combination.
Please refer to Note VIII.3 for the disclosure of the Group’s judgment criteria for significant increase in credit risk, the definition ofcredit impairment assets that have occurred, and assumptions about the expected credit loss measurement.
When the Group no longer reasonably expects to be able to fully or partially recover the contractual cash flows of financial assets,the Group directly writes down the book balance of the financial asset.Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currentlyenforceable legal right to offset the recognized amounts; and there is an intention to settle on a net basis, or to realize the assets andsettle the liabilities simultaneously.
Transfer of financial assets
If the Group transfers substantially all the risks and rewards of ownership of the financial asset, the Group derecognizes the financialasset; and if the Group retains substantially all the risks and rewards of the financial asset, the Group does not derecognize the
financial asset.
If the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset, the Groupdetermines whether it has retained control of the financial asset. In this case: (i) if the Group has not retained control, it derecognizesthe financial asset and recognize separately as assets or liabilities any rights and obligations created not retained in the transfer; (ii) ifthe Group has retained control, it continues to recognize the financial asset to the extent of its continuing involvement in thetransferred financial asset and recognizes an associated liability.
10. Inventories
Inventory includes raw materials, goods in transit, work in progress, finished goods, consigned processing materials, low-valueconsumables and spare parts.
Inventory is initially carried at the actual cost. Inventory costs comprise all costs of purchase, costs of conversion and other costsincurred in bringing the inventory to its present location and condition. Weighted average method is assigned to the determination ofactual costs of inventories. One-off writing off method is adopted in amortization of low-value consumables.
The Group applies a perpetual counting method of inventory.
At the balance sheet date, the inventory is stated at the lower of cost and net realizable value. If the cost is higher than the netrealizable value, provision for the inventory should be made through profit or loss. If factors that resulted in the provision for theinventory have disappeared and made the net realizable value higher than their book value, the amount of the write-down should bereversed, to the extent of the amount of the provision for the inventory, and the reversed amount should be recognized in the incomestatement for the current period.
Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and theestimated costs necessary to make the sale. The impairment provision should be made on a basis of each item of inventoriesaccording to the difference between cost and net realizable value. For large numbers of inventories at relatively low unit prices, theprovision for loss on decline in value of inventories should be made by category.
11. Contract assets and contract liabilities
The group lists contract assets or contract liabilities in the balance sheet according to the relationship between performanceobligations and customer payments. The group presents the contract assets and contract liabilities under the same contract in netamount after offsetting each other.
Contract assets
Contract assets refer to the right to receive consideration for goods or services transferred to customers, and the right depends onother factors other than the passage of time.
The group's determination method and accounting treatment method of expected credit loss of contract assets are detailed in note Vand 9.
Contractual liabilities
Contractual liabilities refer to the obligation to transfer goods or services to customers for the consideration received or receivablefrom customers, such as the amount received by the enterprise before transferring the promised goods or services.
12. Long-term equity investments
Long-term equity investments include investments in subsidiaries, joint ventures and associates.
Long-term equity investments are recognized at initial investment cost upon acquisition. For a long-term equity investment acquiredthrough a business combination under common control, the initial investment cost of the long-term equity investment shall be theabsorbing party’s share of the carrying amount of the owners’ equity of the party being absorbed in the consolidated financialstatements of the ultimate controlling party at combination date. The difference between the initial investment cost and the carryingamount of cash paid, non-cash assets transferred and liabilities assumed shall be adjusted to capital reserve. If the balance of capitalreserve is not sufficient, any excess shall be adjusted to retained earnings. Any other comprehensive income previously recognizedshall be accounted for on the same basis as would have been required if the investee had directly disposed of the related assets orliabilities. The portion recognized based on changes in the investee’s equity (other than net profit or loss, other comprehensiveincome and profit appropriation) is charged to profit or loss upon disposal of such long-term equity investment. For those partiallydisposed equity investments, gains or losses upon disposal are proportionately recognized in profit or loss when they still constitutelong-term equity investments after the disposal and are fully charged to profit or loss when they are reclassified to financialinstruments after the disposal. For business combination involving entities not under common control, the initial investment costshould be the cost of acquisition (for step acquisitions not under common control, the initial investment cost is the sum of thecarrying amount of the equity investment in the acquiree held before the acquisition date and the additional investment cost paid onthe acquisition date), which is the sum of the fair value of assets transferred, liabilities incurred or assumed and equity instrumentsissued. If the equity investments in the acquiree involve other comprehensive income prior to the acquisition date, when disposing ofthe investments, the relevant other comprehensive income will be accounted for on the same basis as would have been required ifthe investee had directly disposed of the related assets or liabilities. The portion recognized based on changes in the investee’s equity(other than net profit or loss, other comprehensive income and profit appropriation) is charged to profit or loss upon disposal of suchlong-term equity investment. The initial investment cost of a long-term equity investment acquired otherwise than through abusiness combination shall be determined as follows: for a long-term equity investment acquired by paying cash, the initialinvestment cost shall be the actual purchase price has been paid plus those costs, taxes and other necessary expenditures directlyattributable to the acquisition of the long-term equity investment; for those acquired by the issue of equity securities, the initialinvestment cost shall be the fair value of the equity securities issued.
The Company adopted cost method to account for long-term investments in the subsidiaries in the separate financial statements of theCompany. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
Under cost method, the long-term equity investment is valued at the cost of the initial investment. The cost of long-term equityinvestment should be adjusted in case of additional investment or disinvestments. When cash dividends or profits are declared bythe invested enterprise is recognized as investment income in current period.
The equity method is applied to account for long-term equity investments, when the Group has jointly control, or significantinfluence on the investee enterprise. Joint control is the contractually agreed sharing of control over an economic activity, and existsonly when the strategic financial and operating decisions relating to the activity require the unanimous consent of the parties sharingcontrol (the ventures). Significant influence is the power to participate in the financial and operating policy decisions of an economicactivity but is not control or joint control over those policies.
Under equity method, when the initial investment cost of a long-term equity investment exceeds the investing enterprise’s interest inthe fair values of the investee’s identifiable net assets at the acquisition date, the difference is accounted for as an initial cost. As tothe initial investment cost is less than the investing enterprise’s interest in the fair values of the investee’s identifiable net assets at theacquisition date, the difference shall be charged to the income statement for the current period, and the cost of the long-term equityinvestment shall be adjusted accordingly.
Under equity method, the Group recognizes its share of post-acquisition equity in the investee enterprise for the current period as again or loss on investment, and also increases or decreases the carrying amount of the investment. When recognizing its share in thenet profit or loss of the investee entities, the Group should, based on the fair values of the identifiable assets of the investee entitywhen the investment is acquired, in accordance with the Group’s accounting policies and periods, after eliminating the portion of theprofits or losses, arising from internal transactions with joint ventures and associates, attributable to the investing entity according tothe share ratio (but losses arising from internal transactions that belong to losses on the impairment of assets, should be recognized infull), recognize the net profit of the investee entity after making appropriate adjustments. The book value of the investment is reducedto the extent that the Group’s share of the profit or cash dividend declared to be distributed by the investee enterprise. However, theshare of net loss is only recognized to the extent that the book value of the investment is reduced to zero, except to the extent that theGroup has incurred obligations to assume additional losses. The Group shall adjust the carrying amount of the long-term equityinvestment for other changes in owners’ equity of the investee enterprise (other than net profits or losses), and include thecorresponding adjustments in equity, which should be realized through profit or loss in subsequent settlement of the respectivelong-term investment.
On settlement of a long-term equity investment, the difference between the proceeds actually received and the carrying amount shallbe recognized in the income statement for the current period. As to other comprehensive income recognized based on measurementof the original equity investment by employing the equity method, accounting treatment shall be made on the same basis as would berequired if the invested entity had directly disposed of the assets or liabilities related thereto when measurement by employing theequity method is terminated. As to any change in owners' equity of the invested entity other than net profit or loss, othercomprehensive income and profit distribution, the investing party shall be transferred to the income statement for the current period.If the remaining equities still be measured under the equity method, accumulative change previously recorded in othercomprehensive income shall be transferred to current profit or loss, in measurement on the same basis as the invested entity haddirectly disposed of the assets or liabilities related thereto. The income or loss recorded in the equity directly should been transferredto the current income statement on settlement of the equity investment on the disposal proportion.
13. Investment property
Investment property are properties held to earn rentals or for capital appreciation, or both, including rented land use right, land useright which is held and prepared for transfer after appreciation, and rented building.
The initial measurement of the investment property shall be measured at its actual cost. The follow-up expenses pertinent to aninvestment property shall be included in the cost of the investment property, if the economic benefits pertinent to this real estate arelikely to flow into the enterprise, and, the cost of the investment property can be reliably measured. Otherwise, they should beincluded in the current profits and losses upon occurrence.
The group adopts the cost method to make follow-up measurement to the investment property. The buildings are depreciated understraight-line method.
14. Fixed assets
A fixed asset probably shall be recognized only when the economic benefits associated with the asset will flow to the Group and thecost of the asset can be measured reliably. Subsequent expenditure incurred for a fixed asset that meet the recognition criteria shall beincluded in the cost of the fixed asset, and the book value of the component of the fixed asset that is replaced shall be derecognized.Otherwise, such expenditure shall be recognized in the income statement in the period during which they are incurred.
Fixed assets are initially measured at actual cost on acquisition. The cost of a purchased fixed asset comprises the purchase price,relevant taxes and any directly attributable expenditure for bringing the asset to working condition for its intended use, such asdelivery and handling costs, installation costs and other surcharges.
Fixed assets are depreciated on straight-line basis. The estimated useful lives estimated residual values and annual depreciation ratesfor each category of fixed assets are as follows:
| Category | Deprecation period | Residual rate (%) | Yearly deprecation rate (%) |
| Buildings | 20 to 35 years | 3% | 2.77%-4.85% |
| Machinery (Note) | 5 to 20 years | 3% | 4.85%-19.40% |
| Vehicles | 4 to 10 years | 3% | 9.70%-24.25% |
| Others | 3 to 21 years | 3% | 4.62%-32.33% |
| Note: the molds in machinery should be depreciated in units-of-production method. | |||
The Group reviews the useful life and estimated net residual value of a fixed asset and the depreciation method applied at least at theend of each year and makes adjustments if necessary.
15. Construction in progress
The cost of construction in progress is determined according to the actual expenditure for the construction, including all necessary
construction expenditure incurred during the construction period, borrowing costs that should be capitalized before the constructionreaches the condition for intended use and other relevant expenses.
Construction in progress is transferred to fixed assets when the asset is ready for its intended use.
16. Borrowing costs
Borrowing costs are interest and other costs incurred by the Group in connection with the borrowing of the funds. Borrowing costsinclude interest, amortization of discounts or premiums related to borrowings, ancillary costs incurred in connection with thearrangement of borrowings, and exchange differences arising from foreign currency borrowings.
The borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized,otherwise the borrowing costs are expensed in the period during which they are incurred. A qualifying asset is an asset (an item ofproperty, plant and equipment and inventory etc.) that necessarily takes a substantial period of time to get ready for its intended useof sale.
The capitalization of borrowing costs is as part of the cost of a qualifying asset shall commence when:
1) expenditure for the asset is being incurred;
2) borrowing costs are being incurred; and
3) activities that are necessary to prepare the asset for its intended use or sale are in progress.
Capitalization of borrowing costs shall be ceased when substantially all the activities necessary to prepare the qualifying asset for itsintended use or sale have been done. And subsequent borrowing costs are recognized in the income statement.
During the capitalization period, the amount of interest to be capitalized for each accounting period shall be determined as follows:
1) where funds are borrowed for a specific-purpose, the amount of interest to be capitalized is the actual interest expense incurredon that borrowing for the period less any bank interest earned form depositing the borrowed funds before being used on the asset orany investment income on the temporary investment of those funds;
2) where funds are borrowed for a general-purpose, the amount of interest to be capitalized on such borrowings is determined byapplying a weighted average interest rate to the weighted average of the excess amounts of cumulative expenditure on the asset overand above the amounts of specific-purpose borrowings.
During the construction or manufacture of assets that are qualified for capitalization, if abnormal discontinuance, other thanprocedures necessary for their reaching the expected useful conditions, happens, and the duration of the discontinuance is over threemonths, the capitalization of the borrowing costs is suspended. Borrowing costs incurred during the discontinuance are recognized asexpense and charged to the income statement of the current period, till the construction or manufacture of the assets resumes.
17. Right of use assets
Recognition conditions of right to use assets
On the beginning date of the lease term, the Group recognizes the right to use assets for leases other than short-term leases and low
value asset leases.
The right of use assets are initially measured at cost. This cost includes:
1) Initial measurement amount of lease liabilities;
2) For the lease payment paid on or before the beginning of the lease term, if there is lease incentive, the relevant amount of leaseincentive enjoyed shall be deducted;
3) Initial direct costs incurred;
4) The estimated costs incurred for dismantling and removing the leased assets, restoring the site where the leased assets are locatedor restoring the leased assets to the state agreed in the lease terms.Depreciation method of right of use assets
The group adopts the straight-line method for depreciation. If the group, as the lessee, can reasonably determine the ownership of theleased asset at the expiration of the lease term, depreciation shall be accrued within the remaining service life of the leased asset. If itis impossible to reasonably determine that the ownership of the leased asset can be obtained at the expiration of the lease term,depreciation shall be accrued within the shorter of the lease term and the remaining service life of the leased asset.
18. Intangible assets
An intangible asset probably shall be recognized only when the economic benefits associated with the asset will flow to the Groupand the cost of the asset can be measured reliably. Intangible assets are initially measured at cost. The cost of intangible assetsacquired in a business combination is the fair value as at the date of acquisition, if the fair value can be reliably measured.
The useful life of the intangible assets shall be assessed according to the estimated beneficial period expected to generate economicbenefits. An intangible asset shall be regarded as having an indefinite useful life when there is no foreseeable limit to the period overwhich the asset is expected to generate economic benefits for the Group.
The useful lives of the intangible assets are as follow:
Useful life
Land use right 43 to 50 yearsSoftware 2 yearsTrademark 10 yearsNon-patent technology 5 years
Land use rights that are purchased or acquired through the payment of land use fees are accounted for as intangible assets. Withrespect to self-developed properties, the corresponding land use right and buildings should be recorded as intangible and fixed assetsseparately. As to the purchased properties, if the reasonable allocation of outlays cannot be made between land and buildings, allassets purchased will be recorded as fixed assets. The cost of a finite useful life intangible asset is amortized using the straight-linemethod during the estimated useful life. For an intangible asset with a finite useful life, the Group reviews the estimated useful lifeand amortization method at least at the end of each year and adjusts if necessary.
The Group should test an intangible asset with an indefinite useful life for impairment by comparing its recoverable amount with itscarrying amount annually, whenever there is an indication that the intangible asset may be impaired. An intangible asset with anindefinite useful life shall not be amortized.
The useful life of an intangible asset that is not being amortised shall be reviewed each period to determine whether events andcircumstances continue to support an indefinite useful life assessment for that asset. If there are indicators that the intangible assethas finite useful life, the accounting treatment would be in accordance with the intangible asset with finite useful life.
19. Research and development expenditures
The Group classified the internal research and development expenditures as follows: research expenditures and development cost.
The expenditures in research stage are charged to the current income on occurrence.
The expenditures in development stage are capitalized that should meet all the conditions of (a) it is technically feasible to finishintangible assets for use or sale; (b) it is intended to finish and use or sell the intangible assets; (c) the usefulness of methods forintangible assets to generate economic benefits shall be proved, including being able to prove that there is a potential market for theproducts manufactured by applying the intangible assets or there is a potential market for the intangible assets itself or the intangibleassets will be used internally; (d) it is able to finish the development of the intangible assets, and able to use or sell the intangibleassets, with the support of sufficient technologies, financial resources and other resources; and (e) the development expenditures ofthe intangible assets can be reliably measured. Expenses incurred that don’t meet the above requirements unanimously should beexpensed in the income statement of the reporting period.
The Group discriminates between research and development stage with the condition that the project research has been determined,in which the relevant research complete all the fractionalization of products measurements and final product scheme under finalapproval of management. The expenditures incurred before project-determination stage is charged to the current income, otherwise itis recorded as development cost.
20. Impairment of assets
The Group determines the impairment of assets, other than the impairment of inventory, contract assets and assets related to contractcosts, deferred income taxes, and financial assets, using the following methods:
The Group assesses at the balance sheet date whether there is any indication that an asset may be impaired. If any indication existsthat an asset may be impaired, the Group estimates the recoverable amount of the asset and performs impairment tests. Goodwillarising from a business combination and an intangible asset with an indefinite useful life are tested for impairment at least at the endof every year, irrespective of whether there is any indication that the asset may be impaired. An intangible asset which is not readyfor its intended use is tested for impairment at least at the end of every year.
The recoverable amount of an asset is the higher of its fair value less costs to sell and the present value of the future cash flowexpected to be derived from the asset. The Group estimates the recoverable amount on an individual basis. If it is not possible to
estimate the recoverable amount of the individual asset, the Group determines the recoverable amount of the asset group to which theasset belongs. Identification of an asset group is based on whether major cash flows generated by the asset group are independent ofthe cash flows from other assets or asset groups.
When the recoverable amount of an asset or asset group is less than its carrying amount, the carrying amount is reduced to therecoverable amount. The impairment of asset is provided for and the impairment loss is recognized in the income statement for thecurrent period.
For the purpose of impairment testing, the carrying amount of goodwill acquired in a business combination is allocated, on areasonable basis, to related asset groups; if it is impossible to allocate to the related asset groups, it is allocated to each of the relatedsets of asset groups. Each of the related asset groups or related sets of asset groups is a group or set of asset group that is able tobenefit from the synergies of the business combination and shall not be larger than a reportable segment determined by the Group.
When an impairment test is conducted on an asset group or a set of asset groups that contains goodwill, if there is any indication ofimpairment, the Group firstly tests the asset group or the set of asset groups excluding the amount of goodwill allocated forimpairment, i.e., it determines and compares the recoverable amount with the related carrying amount and then recognize impairmentloss if any. Thereafter, the Group tests the asset group or set of asset groups including goodwill for impairment, the carrying amount(including the portion of the carrying amount of goodwill allocated) of the related asset group or set of asset groups is compared to itsrecoverable amount. If the carrying amount of the asset group or set of asset groups is higher than its recoverable amount, the amountof the impairment loss is firstly eliminated by and amortized to the book value of the goodwill included in the asset group or set ofasset groups, and then eliminated by the book value of other assets according to the proportion of the book values of assets other thanthe goodwill in the asset group or set of asset groups.
Once the above impairment loss is recognized, it cannot be reversed in subsequent periods.
21. Long-term deferred expenses
The long-term deferred expenses represent the payment for the improvement on buildings and other expenses, which have been paidand should be deferred in the following years. Long-term deferred expenses are amortized on the straight-line basis over the expectedbeneficial period and are presented at actual expenditure net of accumulated amortization.
22. Employee benefits
Employee benefits refer to all kinds of remunerations or compensation made by enterprises to their employees in exchange forservices provided by the employees or termination of labor relation. Employee compensation includes short-term compensation andpost-employment benefits. The benefits offered by enterprises to the spouse, children, the dependents of the employee, the familymember of deceased employee and other beneficiaries are also employee compensation.
Short-term employee salaries
During the accounting period of employee rendering service, the actual employees salaries and are charged to the statement of profitor loss as they become payable in balance sheet.
Post-employment benefits (Defined contribution plans)
The employees of the Group participate in pension insurance, which is managed by local government and the relevant expenditure, isrecognized, when incurred, in the costs of relevant assets or the profit and loss for the current period.
Post-employment benefits (Defined benefit plan)
The Group operates a defined benefit pension plan which requires contributions to be made to a separately administered fund. Thebenefits are unfunded. The cost of providing benefits under the defined benefit plan is determined using the projected unit creditactuarial valuation method.
Remeasurements arising from defined benefit pension plans are recognised immediately in the consolidated statement of financialposition with a corresponding debit or credit to retained profits through other comprehensive income in the period in which theyoccur. Remeasurements are not reclassified to profit or loss in subsequent periods.
Past service costs are recognised in profit or loss at the earlier of: the date of the plan amendment or curtailment; and the date that theGroup recognises restructuring-related costs.
Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Group recognises thefollowing changes in the net defined benefit obligation under administrative expenses in the consolidated statement of profit or lossby function: ?service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routinesettlements;net interest expense or income.
Termination benefits
Termination benefits are recognized at the earlier of when the Group can no longer withdraw the offer of those benefits and when theGroup recognises restructuring costs involving the payment of termination benefits.
23. Provisions
An obligation related to a contingency shall be recognised by the Group as a provision when all of the following conditions aresatisfied, except for contingent considerations and contingent liabilities assumed in a business combination not involving entitiesunder common control:
1) the obligation is a present obligation of the Group;
2) it is probable that an outflow of economic benefits from the Group will be required to settle the obligation;
3) a reliable estimate can be made of the amount of the obligation.
Contingent liabilities are initially measured according to the current best estimate for the expenditure necessary for the performanceof relevant present obligations, with comprehensive consideration given to factors such as the risks, uncertainty and time value of
money relating to contingencies. The book value of the contingent liabilities should be reviewed at each balance sheet date. If there isobjective evidence showing that the book value cannot reflect the present best estimate, the book value should be adjusted accordingto the best estimate.
The contingent liabilities of the acquiree acquired in the business combination involving entities not under common control aremeasured at fair value upon initial recognition. After initial recognition, the balance of the amount recognized according to theestimated liabilities and the amount initially recognized after deducting the accumulated amortization determined by the revenuerecognition principle is subsequently measured at the higher of the two.
24. Revenue from contracts with customers
The Group has fulfilled its performance obligations in the contracts, that is, the revenue is recognized when the customer obtainscontrol of the relevant goods or services. Obtaining control over related goods or services means being able to lead the use of thegoods or the provision of the services and obtain almost all of the economic benefits from it.
Contracts for the sale of goods
A contract for the sale of goods between the Group and the customer usually includes the performance obligation to transfer of goods,transportation services and free maintenance. The Group allocates the transaction price to each individual performance obligation inaccordance with the relative proportion of the stand-alone selling price of the goods or services promised by each individualperformance obligation on the date of contract commencement. Regarding the performance obligations of the transferred goods, theGroup usually recognizes revenue at the point when the performance obligations are fulfilled based on the following indicators,which include: a present right to payment for goods, the transfer of significant risks and rewards of ownership of goods, the transferof legal title to goods, the transfer of physical possession of goods, the customer’s acceptance of goods.
Provide service contract
The performance obligations of the service provision contract between the Group and the customer are due to the fact that thecustomer obtains and consumes the economic benefits brought by the performance of the group at the same time the group performsthe contract, and the group has the right to accumulate the economic benefits during the entire contract period. The Group regards itas a performance obligation performed within a period, and recognizes the revenue according to the performance progress, unless theperformance progress cannot be reasonably determined. In accordance with the output method, the Group determines the progress ofthe performance of the service provided based on the completed or delivered products. When the performance progress cannot bereasonably determined, if the cost incurred by the Group is expected to be compensated, the revenue will be recognized according tothe amount of the cost incurred until the performance progress can be reasonably determined.
Variable consideration
Some contracts between the Group and customers have sales rebate arrangements, forming variable consideration. The Groupdetermines the best estimate of the variable consideration based on the expected value or the most likely amount, but the transactionprice including the variable consideration does not exceed the amount that the accumulated recognized revenue will most likely notbe materially reversed when the relevant uncertainty is eliminated.
Warranty obligations
In accordance with contractual agreements and legal provisions, the Group provides quality assurance for the goods sold. Forguarantee quality assurance to ensure that the products sold meet the established standards, the Group conducts accounting treatmentin accordance with Note III, 21. For the service quality assurance that provides a separate service in addition to the establishedstandards to ensure that the goods sold meet the established standards, the Group regards it as a single performance obligation, basedon the stand-alone selling price of the quality assurance of the goods and services provided. In a relative proportion, part of thetransaction price is allocated to service quality assurance, and revenue is recognized when the customer obtains control of the service.When assessing whether the quality assurance provides a separate service in addition to ensuring that the products sold meet theestablished standards, the Group considers whether the quality assurance is a legal requirement, the quality assurance period, and thenature of the group's commitment to perform tasks.
Principal/agent
For the Group to lead a third party to provide services to customers on behalf of the Group, the Group has the right to independentlydetermine the price of the goods or services traded, that is, the Group can control the relevant goods before transferring the goods tothe customers, so the Group is the main responsible person, and recognize revenue based on the total consideration received orreceivable. Otherwise, the Group acts as an agent and recognizes revenue based on the amount of commission or fees expected to becharged. This amount should be based on the net amount of the total consideration received or receivable minus the price payable toother related parties, or based on the established commission amount or proportions, etc.
25. Share based payment
Share based payment is divided into equity settled share based payment and cash settled share based payment. Equity settled sharebased payment refers to the transaction settled by the group with shares or other equity instruments as consideration for obtainingservices.
Where equity settled share based payment is exchanged for services provided by employees, it shall be measured at the fair value ofequity instruments granted to employees. If the right is exercisable immediately after the grant, it shall be included in the relevantcosts or expenses according to the fair value on the date of grant, and the capital reserve shall be increased accordingly; If the rightcan only be exercised after completing the services in the waiting period or meeting the specified performance conditions, on eachbalance sheet date in the waiting period, based on the best estimate of the number of exercisable equity instruments, the servicesobtained in the current period shall be included in the relevant costs or expenses according to the fair value on the grant date, and thecapital reserve shall be increased accordingly.
For the share based payment that fails to exercise due to non market conditions and / or service term conditions, no costs or expensesare recognized. If the market conditions or non exercisable conditions are specified in the share based payment agreement, no matterwhether the market conditions or non exercisable conditions are met or not, as long as all other performance conditions and / orservice term conditions are met, it is deemed to be exercisable.
If the terms of equity settled share based payment are modified, the services obtained shall be recognized at least according to theunmodified terms. In addition, the increase in the fair value of the granted equity instruments or the change beneficial to theemployees on the modification date shall be recognized as the increase in the services obtained.
If the equity settled share based payment is cancelled, it shall be treated as accelerated exercise on the cancellation date, and theunrecognized amount shall be recognized immediately. If an employee or other party can choose to meet the non exercisableconditions but fails to meet them within the waiting period, it shall be treated as canceling the equity settled share based payment.However, if a new equity instrument is granted and it is determined that the granted new equity instrument is used to replace thecancelled equity instrument on the grant date of the new equity instrument, the granted alternative equity instrument shall be treatedin the same way as the modification of the terms and conditions of the original equity instrument.
26. Government grants
A government grant is recognized only when there is reasonable assurance that the entity will comply with any conditions attached tothe grant and the grant will be received. Monetary grants are accounted for at received or receivable amount. Non-monetary grantsare accounted for at fair value. If there is no reliable fair value available, the grants are accounted for a nominal amount.
A government grant which is specified by the government documents to be used to purchase and construct the long-term assets shallbe recognized as the government grant related to assets. A government grant which is not specified by the government documentsshall be judged based on the basic conditions to obtain the government grant. The one whose basic condition was to purchase andconstruct the long-term assets shall be recognized as the government grant related to assets.
The Group uses the gross method to account for government grants.
Government grants related to income to be used as compensation for future expenses or losses shall be recognized as deferred incomeand shall be charged to the current profit or loss or be used to write down the relevant loss, during the recognition of the relevant costexpenses or losses; or used as compensation for relevant expenses or losses already incurred by enterprises shall be directly chargedto the profit and loss account in the current period or used to write down the relevant cost.
The government grants related to assets shall be used to write down the book value of the relevant assets or be recognized as deferredincome. The government grants related to assets, recognized as deferred income, shall be charged to the profit and loss reasonablyand systematically in stages over the useful lives of the relevant assets. The government grants measured at nominal amount shall bedirectly charged to the current profit and loss. The remaining book value of the government grants related to assets should becharged to the profit and loss account in the current period when the relative assets sold, transferred, disposed or damaged.
27. Income taxes
Income tax comprises current and deferred tax. Income tax is recognized as an income or an expense and include in the incomestatement for the current period, except to the extent that the tax arises from a business combination or if it relates to a transaction orevent which is recognized directly in equity.
Current income tax liabilities or assets for the current and prior periods, are measured at the amount expected to be paid (or recovered)
according to the requirements of tax laws.
For temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts, andtemporary differences between the carrying amounts and the tax bases of items, the tax bases of which can be determined for taxpurposes, but which have not been recognized as assets and liabilities, deferred taxes are provided using the liability method.
A deferred tax liability is recognized for all taxable temporary differences, except:
(1) to the extent that the deferred tax liability arises from the initial recognition of goodwill or the initial recognition of an asset
or liability in a transaction which contains both of the following characteristics: the transaction is not a business combinationand at the time of the transaction, it affects neither the accounting profit nor taxable profit or loss.
(2) in respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in
jointly-controlled enterprises, where the timing of the reversal of the temporary differences can be controlled and it isprobable that the temporary differences will not reverse in the foreseeable future.A deferred tax asset is recognized for deductible temporary differences, carry forward of unused tax credits and unused tax losses, tothe extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carryforward of unused tax credits and unused tax losses can be utilized except:
(1) where the deferred tax asset relating to the deductible temporary differences arises from the initial recognition of an asset or
liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accountingprofit nor taxable profit or loss; and
(2) in respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint
ventures, deferred tax assets are only recognized to the extent that it is probable that the temporary differences will reverse inthe foreseeable future and taxable profit will be available against which the temporary differences can be utilized.
At the balance sheet date, deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period whenthe asset is realized or the liability is settled, according to the requirements of tax laws. The measurement of deferred tax assets anddeferred tax liabilities reflects the tax consequences that would follow from the manner in which the Group expects at the balancesheet date, to recover the assets or settle the liabilities.
At the balance sheet date, the Group reviews the book value of deferred tax assets. If it is probable that sufficient taxable incomecannot be generated to use the tax benefits of deferred tax assets, the book value of deferred tax assets should be reduced. When it isprobable that sufficient taxable income can be generated, the amount of such reduction should be reversed. When it is probable thatsufficient taxable income can be generated, the amount of such reduction should be reversed.
When the following conditions are met at the same time, the deferred tax assets and deferred tax liabilities are listed at the net amountafter offset: the legal right to settle the current income tax assets and current income tax liabilities at the net amount; the deferred taxassets and deferred tax liabilities are related to the income tax levied by the same tax collection and management department on thesame taxable subject or different taxpaying subjects However, in the future, during each period when the significant deferred taxassets and deferred tax liabilities are reversed, the tax payer involved intends to settle the current income tax assets and current
income tax liabilities with net amount or obtain assets and pay off debts at the same time.
28. Lease liabilities
At the beginning of the lease term, the Group recognizes the present value of the unpaid lease payments as lease liabilities, except forshort-term leases and low value asset leases. When calculating the present value of lease payments, the group adopts the interest rateembedded in the lease as the discount rate; If the interest rate embedded in the lease cannot be determined, the lessee's incrementalloan interest rate shall be used as the discount rate. The group calculates the interest expense of the lease liability in each period ofthe lease term according to the fixed periodic interest rate and records it into the current profit and loss, unless otherwise specified, itis included into the cost of relevant assets. The amount of variable lease payments not included in the measurement of lease liabilitiesshall be included in the current profits and losses when they actually occur, unless otherwise specified to be included in the cost ofrelevant assets.
After the beginning date of the lease term, when the actual fixed payment amount changes, the expected payable amount of theguaranteed residual value changes, the index or ratio used to determine the lease payment amount changes, the evaluation results oractual exercise of the purchase option, renewal option or termination option change, The group remeasures the lease liabilitiesaccording to the present value of the changed lease payments.
29. Lease
Identification of leases
On the contract commencement date, the group evaluates whether the contract is a lease or includes a lease. If one party in thecontract transfers the right to control the use of one or more identified assets within a certain period in exchange for consideration,the contract is a lease or includes a lease. In order to determine whether the contract transfers the right to control the use of theidentified assets within a certain period, the group evaluates whether the customers in the contract have the right to obtain almost allthe economic benefits arising from the use of the identified assets during the use period, and have the right to dominate the use of theidentified assets during the use period.
Identification of individual leases
If the contract contains multiple separate leases at the same time, the group will split the contract and conduct accounting treatmentfor each separate lease. If the following conditions are met at the same time, the right to use the identified assets constitutes aseparate lease in the contract:
(1) The lessee can profit from the use of the asset alone or in combination with other easily available resources;
(2) The asset is not highly dependent or highly related to other assets in the contract.
Spin off of leased and non leased parts
If the contract includes both lease and non lease parts, the group, as the lessor and lessee, will split the lease and non lease parts foraccounting treatment;
Evaluation of lease term
The lease term is the irrevocable period during which the group has the right to use the leased assets. The group has the option torenew the lease, that is, it has the option to renew the asset. If it is reasonably determined that the option will be exercised, the leaseterm also includes the period covered by the option to renew the lease. The group has the option to terminate the lease, that is, it hasthe option to terminate the lease of the asset, but it is reasonably determined that it will not exercise the option, and the lease termincludes the period covered by the option to terminate the lease. If a major event or change occurs within the control of the group andaffects whether the group reasonably determines that it will exercise the corresponding option, the group reassesses whether itreasonably determines that it will exercise the renewal option, the purchase option or not to exercise the termination option.
As lessee
For the general accounting treatment of the group as lessee, see notes V and 17 and notes V and 28.
Lease change
Lease change refers to the change of lease scope, lease consideration and lease term beyond the terms of the original contract,including increasing or terminating the use right of one or more leased assets, extending or shortening the lease term specified in thecontract, etc.
If the lease changes and the following conditions are met at the same time, the group will treat the lease change as a separate lease foraccounting treatment:
(1) The lease change expands the lease scope by increasing the use right of one or more leased assets;
(2) The increased consideration is equivalent to the amount of the separate price for most of the expansion of the lease scope adjustedaccording to the conditions of the contract.
If the lease change is not accounted for as a separate lease, on the effective date of the lease change, the group redefines the leaseterm and discounts the changed lease payment at the revised discount rate to re measure the lease liability. When calculating thepresent value of the lease payment after the change, the group adopts the lease embedded interest rate during the remaining leaseperiod as the discount rate; If the implicit interest rate of the lease for the remaining lease period cannot be determined, the group'sincremental loan interest rate on the effective date of the lease change shall be used as the discount rate.
With regard to the impact of the above lease liability adjustment, the group makes accounting treatment according to the followingcircumstances:
(1) If the lease scope is reduced or the lease term is shortened due to the lease change, the group reduces the book value of the rightof use assets to reflect the partial or complete termination of the lease, and the relevant gains or losses of the partial or completetermination of the lease are included in the current profit and loss;
(2) For other lease changes, the group adjusts the book value of the right to use assets accordingly.
Short term leases and low value asset leases
The Group recognizes the lease with a lease term of no more than 12 months and excluding the purchase option as a short-term leaseon the beginning date of the lease term; Leases with insignificant value when a single leased asset is a new asset are recognized aslow value asset leases. Where the group sublets or expects to sublet leased assets, the original lease is not recognized as a low valueasset lease. The group does not recognize the right to use assets and lease liabilities for short-term leases and low value asset leases.In each period of the lease term, it shall be included in the relevant asset cost or current profit and loss according to the straight-linemethod.
As lessor
Leases that have substantially transferred almost all the risks and rewards related to the ownership of the leased assets on the leasecommencement date are finance leases, except for operating leases.
As an operating lessor
The rental income from operating leases is recognized as the current profit and loss by the straight-line method in each period of thelease term, and the variable lease payments not included in the lease receipts are included in the current profit and loss when theyactually occur.
30. Profit distribution
The cash dividend of the Group is recognized as liabilities after the approval of general meeting of stockholders.
31. Safety fund
The safety fund extracted by the Group shall be recognized as the cost of the related products or income statement, while berecognized as special reserve. When using safety fund, it shall be distinguished whether it will form fixed assets or not. Theexpenditure shall write down the special reserve; the capital expenditure shall be recognized as fixed assets when meet the expectedconditions for use, and write down the special reserve while recognizing accumulated depreciation with the same amount.
32. Fair value measurement
The Group measures its equity investments at fair value at the end of each reporting period. Fair value is the price that would bereceived to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place eitherin the principal market for the asset or liability, or in the absence of a principal market, in the most advantageous market for the assetor liability. The principal or the most advantageous market must be accessible by the Group. The fair value of an asset or a liability ismeasured using the assumptions that market participants would use when pricing the asset or liability, assuming that marketparticipants act in their economic best interest.
The Group measures equity investments at fair value at the end of each reporting period. Fair value is the price that would bereceived to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place in theprincipal market for the asset or liability or in the most advantageous market for the asset or liability when a principal market is
absent. The principal or the most advantageous market must be accessible to by the Group. The fair value of an asset or a liability ismeasured using the assumptions that market participants would use when pricing the asset or liability, assuming that marketparticipants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits byusing the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and bestuse.
The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data and other supportinginformation are available to measure fair value, giving priority to the use of relevant observable inputs, and using unobservableinputs only when observable inputs are unavailable or not feasible to obtain.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair valuehierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly orindirectly observable
Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable
For assets and liabilities that are recognized in the financial statements on a recurring basis, the Group determines whether transfershave occurred between levels in the hierarchy by reassessing categorization at the end of each reporting period.
33. Significant accounting judgments and estimates
The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the amountsand disclosures of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities, at the balance sheet date.However, uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to thecarrying amounts of the assets or liabilities affected in the future.
Judgments
In the process of applying the Group’s accounting policies, management has made the following judgments which have significanteffect on the financial statements:
Business modelThe classification of financial assets at initial recognition depends on the business model of the Group’s management of financialassets. When judging the business model, the Group considers the methods including enterprise evaluation and reporting of financialasset performance to key management personnel, risks affecting financial asset performance and its anagement method and the wayin which related business managers get paid. When evaluating whether to take contract cash flow as the goal, the Group needs toanalyze and judge the reasons, time, frequency and value of the sale of financial assets before the due date.
Contract cash flow characteristicsThe classification of financial assets at initial recognitions depends on the contractual cash flow characteristics of the financial assets.It is necessary to determine whether the contractual cash flow is only for the payment of principal and interest based on outstandingprincipal, including correction of the time value of money during the evaluation, it is necessary to determine whether there is asignificant difference compared to the benchmark cash flow. For financial assets that include prepayment characteristics, it isnecessary to determine whether the fair value of the prepayment characteristics is very small, etc.
Uncertainty of accounting estimates
The crucial assumptions of significant accounting estimates in future and other crucial sources of estimated uncertainty, which mayresult in the significant adjustments to the book value of the subsequent accounting period, are as the following:
Impairment of financial instrumentsThe Group uses the expected credit loss model to assess the impairment of financial instruments. The application of the expectedcredit loss model requires significant judgments and estimates. All reasonable and valid information must be considered, includingforward-looking information. In making these judgments and estimates, the Group infers the expected changes in the credit risk ofthe debtor based on historical repayment data combined with economic policies, macroeconomic indicators, industry risks and otherfactors. Different estimates may affect the provision for impairment losses. The provision for impairment losses may not be equal tothe actual amount of future impairment losses.
Impairment of non-current assets other than financial assets (goodwill excluded)The Group assesses at each reporting date whether there is an indication that non-current assets other than financial assets may beimpaired. If there is any sign of possible assets impairment, the assets concerned should be subject to impairment test. When thecarrying amount of an asset or the relevant assets group exceeds its recoverable amount which is the higher one of the net amount ofthe fair value of the asset minus the disposal expenses and the present value of the expected future cash flow of the asset, the asset isconsidered impaired. The fair value minus the disposal expenses is determined by reference to the recent market transactions price orobserved market price less any directly attributable expenditure for disposing. When making an estimate of the present value of thefuture cash flow of an asset, the Group should estimate the future cash flows of the asset or the relevant assets group, with theappropriate discount rate selected to reflect the present value of the future cash flows.
Fair value of unlisted equity investmentsFor unlisted equity instrument investments, several valuation models are used to estimate the fair value. This requires the Group tomake estimates of unobservable market parameters such as price-to-book ration, discount rate, sustainable growth rate, asset priceindex, etc., and is therefore uncertain.
Development expendituresWhen determining the capitalization amount, management should make assumptions such as the expected cash flows of the assetsrelated, the applicable discount rate and expected benefit period.
Deferred tax assetsThe Group should recognize the deferred income tax assets arising from all the existing unutilized tax deficits and deductibletemporary differences to the extent of the amount of the taxable income which it is most likely to obtain and which can be deductedfrom the deductible temporary differences. Enormous accounting judgments, as well as the tax planning are compulsory for
management to estimate the time and amount of prospective taxable profits and thus determine the appropriate amount of thedeferred tax assets concerned.
WarrantyThe Group provides warranties on automobile and undertakes to repair or replace items that fail to perform satisfactorily based oncertain pre-determined conditions. Factors that influence estimation of related warranty claim include: 1) renewal of laws andregulations; 2) quality promotion of Group products; 3) change of parts and labour cost. In general, the Group records warranty basedon selling volume and estimated compensatory unit warranty cost, deduction multi-agreed compensation from suppliers. As atbalance sheet day, the Group launches retrospective analysis on warranty carrying amount in consideration of accrual warrantypayment during relative warranty period, and recent trends of product renovation and replacement, and further adjustment ifnecessary. Any increase or decrease in the provision would affect profit or loss in future years.
Depreciation and amortizationThe Group’s management determines the estimated useful lives and residual value of fixed assets and intangible assets. This estimateis based on the historical experience of actual useful lives of fixed assets and intangible assets of similar nature and functions.Management will increase the depreciation and amortization charges where useful lives are less than previously estimated.
34. Changes in accounting policies and accounting estimates
(1) Changes in significant accounting policies
√ applicable □ not applicable
The new lease criteria will be implemented for the first time since 2021On December 7, 2018, the Ministry of Finance revised and issued accounting standards for Business Enterprises No. 21 - leasing(CK [2018] No. 35). According to the requirements of the Ministry of finance, enterprises listed at home and abroad and enterpriseslisted abroad and preparing financial statements using international financial reporting standards or accounting standards for businessenterprises shall be implemented as of January 1, 2019; Other enterprises that implement the accounting standards for businessenterprises shall be implemented as of January 1, 2021. Due to the revision of the above accounting standards for business enterprises,the company needs to adjust the relevant accounting policies originally adopted.
According to the time specified by the Ministry of finance, the company will implement the new leasing standards from January 1,2021.
The impact of the implementation of the new lease standards on the financial statements of 2021 is as follows:
Consolidated balance sheet
In RMB Yuan
| Account | December 31, 2020 | January 01, 2021 | Adjustment |
| Current assets: | |||
| Cash | 32,001,775,600.07 | 32,001,775,600.07 | |
| Transactional financial assets | 204,254,400.00 | 204,254,400.00 | |
| Notes receivable | 28,371,541,054.75 | 28,371,541,054.75 | |
| Accounts receivable | 2,141,197,139.45 | 2,141,197,139.45 |
| Prepayments | 460,703,603.80 | 460,703,603.80 | |
| Other receivables | 723,919,037.36 | 723,919,037.36 | |
| Inventories | 5,967,516,230.57 | 5,967,516,230.57 | |
| Contract assets | 1,450,031,414.61 | 1,450,031,414.61 | |
| Other current assets | 1,568,711,870.61 | 1,568,711,870.61 | |
| Total current assets | 72,889,650,351.22 | 72,889,650,351.22 | |
| Non-current assets: | |||
| Long-term equity investment | 12,109,089,795.67 | 12,109,089,795.67 | |
| Other equity investment | 691,990,000.00 | 691,990,000.00 | |
| Investment properties | 6,876,138.16 | 6,876,138.16 | |
| Fixed assets | 24,298,402,558.49 | 24,298,402,558.49 | |
| Construction in progress | 1,048,036,148.70 | 1,048,036,148.70 | |
| Right of use assets | - | 55,231,380.07 | 55,231,380.07 |
| Intangible assets | 4,433,771,236.26 | 4,433,771,236.26 | |
| Devlopment expenditure | 596,577,787.95 | 596,577,787.95 | |
| Goodwill | 48,883,188.37 | 48,883,188.37 | |
| Long-term deferred expenses | 10,642,512.51 | 10,642,512.51 | |
| Deferred tax assets | 2,131,266,677.52 | 2,131,266,677.52 | |
| Total non-current assets | 45,375,536,043.63 | 45,430,767,423.70 | 55,231,380.07 |
| Total assets | 118,265,186,394.85 | 118,320,417,774.92 | 55,231,380.07 |
| Current liabilities: | |||
| Short-term loans | 578,000,000.00 | 578,000,000.00 | |
| Notes payable | 17,574,014,553.46 | 17,574,014,553.46 | |
| Accounts payable | 23,118,793,794.42 | 23,118,793,794.42 | |
| Advances from customers | |||
| Contract liabilities | 4,471,158,190.75 | 4,471,158,190.75 | |
| Payroll payable | 2,015,868,366.57 | 2,015,868,366.57 | |
| Taxes payable | 1,292,001,263.86 | 1,292,001,263.86 | |
| Other payables | 4,475,215,625.98 | 4,475,215,625.98 | |
| Non current liabilities due within one year | 100,000,000.00 | 100,000,000.00 | |
| Other current liabilities | 5,842,758,104.08 | 5,842,758,104.08 | |
| Total current liabilities | 59,467,809,899.12 | 59,467,809,899.12 | |
| Non-current liabilities: |
| Long-term loans | 955,300,000.00 | 955,300,000.00 | |
| Lease liabilities | - | 55,231,380.07 | 55,231,380.07 |
| Long-term payable | 261,260,928.70 | 261,260,928.70 | |
| Long term payroll payable | 41,634,000.00 | 41,634,000.00 | |
| Estimated liabilities | 3,125,170,942.46 | 3,125,170,942.46 | |
| Deferred earnings | 818,398,430.21 | 818,398,430.21 | |
| Deferred tax liabilities | 115,304,728.61 | 115,304,728.61 | |
| Total non-current liabilities | 5,317,069,029.98 | 5,372,300,410.05 | 55,231,380.07 |
| Total liabilities | 64,784,878,929.10 | 64,840,110,309.17 | 55,231,380.07 |
| Owners’ equity: | |||
| Share capital | 5,363,396,174.00 | 5,363,396,174.00 | |
| Capital reserves | 10,930,781,918.64 | 10,930,781,918.64 | |
| Other Comprehensive Income | 78,420,720.78 | 78,420,720.78 | |
| Special reserves | 40,847,443.41 | 40,847,443.41 | |
| Surplus reserves | 2,681,698,087.00 | 2,681,698,087.00 | |
| Retained earnings | 34,315,048,892.26 | 34,315,048,892.26 | |
| Equity attributable to owners | 53,410,193,236.09 | 53,410,193,236.09 | |
| Minority interests | 70,114,229.66 | 70,114,229.66 | |
| Total equity | 53,480,307,465.75 | 53,480,307,465.75 | |
| Total liabilities and owener’s equity | 118,265,186,394.85 | 118,320,417,774.92 | 55,231,380.07 |
Balance sheet
In RMB Yuan
| Account | December 31, 2020 | January 01, 2021 | Adjustment |
| Current assets: | |||
| Cash | 25,238,014,025.38 | 25,238,014,025.38 | |
| Transactional financial assets | 180,929,400.00 | 180,929,400.00 | |
| Notes receivable | 27,248,111,565.13 | 27,248,111,565.13 | |
| Accounts receivable | 5,464,541,185.63 | 5,464,541,185.63 | |
| Prepayments | 294,088,044.01 | 294,088,044.01 | |
| Other receivables | 1,990,616,778.83 | 1,990,616,778.83 | |
| Inventories | 4,332,579,774.46 | 4,332,579,774.46 | |
| Contract assets | 941,046,613.60 | 941,046,613.60 | |
| Other current assets | 322,467,261.74 | 322,467,261.74 |
| Total current assets | 66,012,394,648.78 | 66,012,394,648.78 | |
| Non-current assets: | |||
| Long-term equity investments | 15,911,304,527.87 | 15,911,304,527.87 | |
| Other equity investment | 681,630,000.00 | 681,630,000.00 | |
| Fixed assets | 18,282,163,718.91 | 18,282,163,718.91 | |
| Construction in progress | 586,144,839.34 | 586,144,839.34 | |
| Right of use assets | - | 52,544,645.37 | 52,544,645.37 |
| Intangible assets | 3,166,081,547.59 | 3,166,081,547.59 | |
| Development expenditure | 555,569,523.02 | 555,569,523.02 | |
| Long-term deferred expenses | 7,470,626.86 | 7,470,626.86 | |
| Deferred tax assets | 1,803,491,965.40 | 1,803,491,965.40 | |
| Total non-current assets | 40,993,856,748.99 | 41,046,401,394.36 | 52,544,645.37 |
| Total assets | 107,006,251,397.77 | 107,058,796,043.14 | 52,544,645.37 |
| Current liabilities: | |||
| Short-term loans | 510,000,000.00 | 510,000,000.00 | |
| Notes payable | 14,600,240,612.86 | 14,600,240,612.86 | |
| Accounts payable | 18,770,044,628.44 | 18,770,044,628.44 | |
| Advances from customers | |||
| Contract liabilities | 3,885,522,883.33 | 3,885,522,883.33 | |
| Payroll payable | 1,604,474,120.45 | 1,604,474,120.45 | |
| Taxes payable | 1,045,768,022.62 | 1,045,768,022.62 | |
| Other payables | 3,166,636,684.63 | 3,166,636,684.63 | |
| Non current liabilities due within one year | 100,000,000.00 | 100,000,000.00 | |
| Other current liabilities | 5,235,294,795.79 | 5,235,294,795.79 | |
| Total current liabilities | 48,917,981,748.12 | 48,917,981,748.12 | |
| Non-current liabilities: | |||
| Long-term loans | 955,300,000.00 | 955,300,000.00 | |
| Lease liabilities | - | 52,544,645.37 | 52,544,645.37 |
| Long-term payable | 187,142,303.66 | 187,142,303.66 | |
| Long term payroll payable | 21,657,000.00 | 21,657,000.00 | |
| Estimated liabilities | 2,196,924,682.57 | 2,196,924,682.57 | |
| Deferred earnings | 150,000,000.00 | 150,000,000.00 | |
| Deferred tax liabilities | 75,158,651.38 | 75,158,651.38 |
| Total non-current liabilities | 3,586,182,637.61 | 3,638,727,282.98 | 52,544,645.37 |
| Total liabilities | 52,504,164,385.73 | 52,556,709,031.10 | 52,544,645.37 |
| Owners' equity: | |||
| Share capital | 5,363,396,174.00 | 5,363,396,174.00 | |
| Capital reserves | 10,440,896,902.52 | 10,440,896,902.52 | |
| Other comprehensive income | 159,954,052.00 | 159,954,052.00 | |
| Special reserves | 7,505,438.57 | 7,505,438.57 | |
| Surplus reserves | 2,681,698,087.00 | 2,681,698,087.00 | |
| Retained earnings | 35,848,636,357.95 | 35,848,636,357.95 | |
| Total owners' equity | 54,502,087,012.04 | 54,502,087,012.04 | |
| Total liabilities and owners’ equity | 107,006,251,397.77 | 107,058,796,043.14 | 52,544,645.37 |
The company's government subsidy accounting policy is changed from the total amount method to the net amount method
√ applicable □ not applicable
| Contents and reasons for changes in accounting policies | Procedures for examination and approval | Remarks |
| In May 2017, the Ministry of Finance issued the notice on Issuing and revising the accounting standards for Business Enterprises No. 16 - government subsidies (CK [2017] No. 15), which revised the accounting standards for Business Enterprises No. 16 - government subsidies. According to the provisions of the revised accounting standards for Business Enterprises No. 16 - government subsidies, Government subsidies can be accounted by total amount method and net amount method. Before the change of accounting policy, the company adopts the total amount method for accounting of government subsidies. In order to make the company's accounting more accurately, objectively and fairly reflect the company's financial status and operating results, the company's government subsidy accounting policy is changed from the total amount method to the net amount method from January 1, 2021. | Adopted at the 16th meeting of the 8th board of directors of the company | The reclassification adjustment of the accounting policy change to different accounts will not have an impact on the company's net assets, net profit and cash flow |
Other instructions:
For this accounting policy change, the company needs to adopt the retroactive adjustment method for the government subsidiesobtained before January 1, 2021, adjust the opening balance of relevant items in the financial statements and present the comparabledata disclosed in the previous period according to the impact of the accounting policy change; The reclassification adjustment of theaccounting policy change to different subjects will not have an impact on the company's net assets, net profit and cash flow, and willnot damage the interests of the company and shareholders.
The main impact of the change in the accounting treatment method of government subsidies on the financial statements is as follows:
Consolidated balance sheet
Unit：Yuan
| Before accounting policy change | Reclassification of changes in accounting policies | After accounting policy change | |
| December 31, 2020 | December 31, 2020 | ||
| Assets： | |||
| Fixed assets | 26,436,757,696.96 | -2,138,355,138.47 | 24,298,402,558.49 |
| Intangible assets | 4,946,035,052.46 | -512,263,816.20 | 4,433,771,236.26 |
| Liabilities： | |||
| Defferred revenue | 3,469,017,384.88 | -2,650,618,954.67 | 818,398,430.21 |
Balance sheet
Unit：Yuan
| Before accounting policy change | Reclassification of changes in accounting policies | After accounting policy change | |
| December 31, 2020 | December 31, 2020 | ||
| Assets： | |||
| Fixed assets | 19,757,553,675.99 | -1,475,389,957.08 | 18,282,163,718.91 |
| Intangible assets | 3,653,199,216.48 | -487,117,668.89 | 3,166,081,547.59 |
| Liabilities： | |||
| Defferred revenue | 2,112,507,625.97 | -1,962,507,625.97 | 150,000,000.00 |
Consolidated income statement
| Before accounting policy change | Reclassification of changes in accounting policies | After accounting policy change | |
| 1st Half of 2020 | 1st Half of 2020 | ||
| Operating cost | 29,734,615,697.63 | -156,541,138.47 | 29,578,074,559.16 |
| Selling expense | 1,270,717,082.07 | -1,075.16 | 1,270,716,006.91 |
| G&A expense | 1,164,152,772.91 | -18,291,788.60 | 1,145,860,984.31 |
| R&D expense | 1,464,554,423.42 | -40,978,953.05 | 1,423,575,470.37 |
| Financial expense | -98,053,545.38 | -165,000.00 | -98,218,545.38 |
| Other income | 215,977,955.28 | -215,977,955.28 | - |
Income statement
| Before accounting policy change | Reclassification of changes in accounting policies | After accounting policy change | |
| 1st Half of 2020 | 1st Half of 2020 | ||
| Operating cost | 27,911,858,903.03 | -46,885,078.35 | 27,864,973,824.68 |
| Selling expense | 961,039,656.72 | -1,075.16 | 961,038,581.56 |
| G&A expense | 726,483,524.17 | -10,833,656.63 | 715,649,867.54 |
| Financial expense | -97,970,764.79 | -165,000.00 | -98,135,764.79 |
| Other income | 57,884,810.14 | -57,884,810.14 |
(2) Changes in significant accounting estimates
The provision proportion of staff education funds shall be changed from 1.5% to 5%
√ applicable □ not applicable
| Contents and reasons for changes in accounting policies | Procedures for examination and approval | Time point of application | Remarks |
| According to the notice of the Ministry of Finance and the State Administration of Taxation on the pre Tax Deduction Policy of enterprise employee education funds (CS [2018] No. 51), from January 1, 2018, the part of the enterprise's employee education expenditure that does not exceed 8% of the total wages and salaries is allowed to be deducted when calculating the taxable income of enterprise income tax; The excess part is allowed to be carried forward and deducted in subsequent tax years. The company's staff education fund has been subject to the withdrawal standard of 1.5%. In order to actively respond to the call of the CPC Central Committee to "implement the strategy of strengthening the country with talents", the human resources department of the company has created a learning organization, strengthened the training of human resources of the company, and encouraged employees to continuously improve their ability to perform their duties, the professional training allowance has been added to the employee salary structure. According to the calculation of the amount of annual professional training allowance, it is necessary to withdraw employee education funds according to 5% of the total annual salary, and the withdrawal proportion of employee education funds needs to be changed from 1.5% to 5%. | Adopted at the 16th meeting of the 8th board of directors of the company | Implemented from January 1, 2021 | The proportion of employee education funds was changed from 1.5% to 5%, and the annual increase of employee education funds was about 96 million yuan. |
VI. TAXES
1. Main taxes and tax rates
| Value added tax (“VAT”) | - | The income from the sale of goods and the income from the provision of services are calculated at the tax rates of 13% and 6%, respectively, and the VAT is calculated on the basis of the difference after deducting the input tax that is allowed to be deducted in the current period. |
| Consumption tax | - | Consumption tax is calculated at 1%, 3% or 5% of taxable income. |
| City maintenance and construction tax | - | 5% or 7% of the turnover tax paid is calculated and paid. |
| Educational surcharge | - | 3% of the actual turnover tax paid is calculated and paid. |
| Local educational surcharge | - | 2% of the turnover tax actually paid is calculated and paid. |
| Corporate income tax | - | Corporate income tax is paid at 15%, 20% or 25% of taxable income. |
2. Tax benefits
According to the relevant provisions of the national high-tech identification and relevant tax preferential policies, the followingcompanies of the group are identified as high-tech enterprises and are subjected to the preferential corporate income tax rate of 15%within the prescribed period: the company (2018-2020), and the Company’s subsidiaries including Hefei Changan AutomobileCompany Limited (2019-2021), Hebei Changan Automobile Company Limited (2020-2023), Baoding Changan Bus ManufacturingCompany Limited (2020-2023), Chongqing Changan Connected Car Technology Co., Ltd. (2019-2021).
In accordance to Circular for Further Implementation of Tax Incentives In the Development of Western Regions collectively issued bythe ministry of Finance, the Customs General Administration and the National Taxation Bureau of PRC, from 1 January 2011 to 31December 2020, enterprises located in the Western Region and engaged in encouraged business would be entitled to a preferential CITrate of 15%. The Company’s subsidiaries, including Changan International Corporation, Chongqing Changan Special Vehicle Co., Ltd.,Chongqing Changan Automobile Customer Service Co., Ltd., Chongqing Changan Lingyao Automobile Co., Ltd., ChongqingChehemei Technology Co., Ltd. and Chongqing Changan Automobile Software Technology Co., Ltd. are qualified to the requirementand are subjected to the preferential tax rate of 15%.VII. Notes to the consolidated financial statements
1. Cash
In RMB Yuan
| Item | Ending | Beginning |
| Cash | 1,527.85 | 52,569.13 |
| Cash at bank | 46,269,402,072.16 | 30,655,915,488.50 |
| Other cash | 1,451,938,642.90 | 1,345,807,542.44 |
| Total | 47,721,342,242.91 | 32,001,775,600.07 |
As at 30 June 2021, the book value of restricted cash and cash equivalents is RMB 1,451,938,642.9, which was mainly restricted forthe issuance of acceptance bill.As at 30 June 2021, the cash at bank oversea is equivalent to RMB 235,680,963.02.
2. Transactional financial assets
| Item | Ending | Beginning |
| Equity instrument investment | 163,778,100.00 | 180,929,400.00 |
| Derivative financial assets | 31,571,498.73 | 23,325,000.00 |
| Total | 195,349,598.73 | 204,254,400.00 |
As of June 30, 2021, the trading financial assets measured at fair value are 33.63 million ordinary shares of Southwest Securities Co.,Ltd. held by the group (December 31, 2020: 33.63 million shares), which are derivative The financial assets are USD forwardcontracts signed by the Group.
3. Notes receivable
(1) Classification of notes receivable
In RMB Yuan
| Type | Ending | Beginning |
| Commercial acceptance bill | 10,306,950,933.39 | 11,456,829,106.12 |
| Bank acceptance bill | 18,471,301,363.80 | 16,914,711,948.63 |
| Total | 28,778,252,297.19 | 28,371,541,054.75 |
(2) The notes receivable pledged as follows:
| Type | Ending | Beginning |
| Commercial acceptance bill | 1,483,417,460.00 | 1,707,332,200.00 |
| Bank acceptance bill | 7,349,990,936.62 | 5,613,218,260.00 |
| Total | 8,833,408,396.62 | 7,320,550,460.00 |
The bank acceptance bill of the above amount has been pledged for the notereceivable on 30 June 2021 and 31 December 2020.
(3) Endorsed or discounted but unexpired notes receivable as at the end of reporting period are as follows:
In RMB Yuan
| Type | Ending | Beginning | ||
| Derecognition | Un-derecognition | Derecognition | Un-derecognition | |
| Commercial acceptance bill | 270,434,540.00 | |||
| Bank acceptance bill | 949,918,527.77 | 4,823,033,140.36 | ||
| Total | 949,918,527.77 | - | 5,093,467,680.36 | - |
4. Accounts receivable
(1)Aging analysis of the accounts receivable is as follows:
In RMB Yuan
| Aging | Ending | Beginning |
| Within 1 year | 1,394,235,410.26 | 1,801,562,183.50 |
| 1 to 2 years | 134,148,970.29 | 371,018,064.79 |
| 2 to 3 years | 145,670,057.07 | 60,086,826.22 |
| Over 3 years | 146,505,259.25 | 98,021,103.16 |
| Total | 1,820,559,696.87 | 2,330,688,177.67 |
| Less: Provision | -192,540,723.06 | -189,491,038.22 |
| Total | 1,628,018,973.81 | 2,141,197,139.45 |
(2)The movements in provision for impairment of accounts receivable are as follows:
| Beginning balance | Addition | Deduction | Ending balance | |||
| Provision | Other | Reversal | Write-off | |||
| 2021 | 189,491,038.22 | 3,800,652.77 | - | 328,968.23 | 421,999.70 | 192,540,723.06 |
| 2020 | 84,152,474.01 | 105,402,877.08 | 28,657.87 | 35,655.00 | 189,491,038.22 | |
(3)Analysis of accounts receivable by category is as follows:
| Item | Ending | |||
| Balance | Provision | |||
| Amount | (%) | Amount | (%) | |
| Individually analyzed for provision | 979,976,822.07 | 53.83 | 129,173,108.92 | 13.18 |
| Accounts receivable analyzed as groups for provision | 840,582,874.80 | 46.17 | 63,367,614.14 | 7.54 |
| Total | 1,820,559,696.87 | 100.00 | 192,540,723.06 | 10.58 |
| Item | Beginning | |||
| Balance | Provision | |||
| Amount | (%) | Amount | (%) | |
| Individually analyzed for provision | 1,739,103,610.26 | 74.62 | 129,549,853.46 | 7.45 |
| Accounts receivable analyzed as groups for provision | 591,584,567.41 | 25.38 | 59,941,184.76 | 10.13 |
| Total | 2,330,688,177.67 | 100.00 | 189,491,038.22 | 8.13 |
(4)The Group’s accounts receivable was analyzed for provision by expected credit loss model
| Ending | Beginning | |||||
| Estimated face value for default | Expected credit loss rate (%) | Expected credit loss for the entire duration | Face balance | Provision ratio (%) | Provision for bad debt | |
| Within 1 year | 591,845,162.46 | 0.11 | 679,611.16 | 380,624,542.70 | 0.43 | 1,629,902.59 |
| 1 to 2 years | 118,272,067.87 | 7.93 | 9,383,375.27 | 114,659,032.16 | 12.32 | 14,121,441.41 |
| 2 to 3 years | 78,770,757.00 | 28.64 | 22,561,115.16 | 52,003,007.12 | 40.07 | 20,836,462.37 |
| Over 3 years | 51,694,887.47 | 59.47 | 30,743,512.55 | 44,297,985.43 | 52.72 | 23,353,378.39 |
| Total | 840,582,874.80 | 7.54 | 63,367,614.14 | 591,584,567.41 | 10.13 | 59,941,184.76 |
(5)As at June 30, 2021, accounts receivable from Top 5 clients amounted to RMB 1,021,176,665.33, accounted for 56.09% of thetotal accounts receivable (December 31, 2020: RMB 1,427,737,884.48, accounted for 61.26% of the total amount).
(6) As of June 30, 2021, the Group has no accounts receivable that are derecognized as the transfer of financial assets (December 31,2020: Nil).
5. Prepayments
(1) An aged analysis of the prepayments is as follows:
In RMB Yuan
| Aging | Ending | Beginning | ||
| Amount | % | Amount | % | |
| Within 1 year | 366,494,907.99 | 94.71 | 399,060,385.64 | 86.61 |
| 1 to 2 years | 16,331,905.80 | 4.22 | 25,223,574.66 | 5.48 |
| 2 to 3 years | 4,154,134.53 | 1.07 | 36,342,451.32 | 7.89 |
| Over 3 years | - | 77,192.18 | 0.02 | |
| Total | 386,980,948.32 | 100.00 | 460,703,603.80 | 100.00 |
(2)As at 30 June 2021, the total amount of the top five prepayments was RMB 241,900,175.75, accounting for 62.51% of the totalamount of prepayments (2020: RMB 346,863,258.58, accounting for 75.29%).
6. Other receivables
In RMB Yuan
| Ending | Beginning | |
| Dividend receivable | 854,896,010.57 | |
| Other receivables | 735,764,643.75 | 723,919,037.36 |
| Total | 1,590,660,654.32 | 723,919,037.36 |
Dividend receivable
In RMB Yuan
| Beginning | Increase in this period | Decrease in this period | Ending | Reasons for non-recovery | Whether the relevant funds are impaired | |
| Dividends receivable within one year of age | 858,326,010.57 | 3,430,000.00 | 854,896,010.57 | Dividend distribution has not yet arrived | No | |
| Dividends receivable aged over one year | ||||||
| Total | 858,326,010.57 | 3,430,000.00 | 854,896,010.57 | -- | -- |
Other receivables
(1)Aging analysis of other receivables is as follows:
| Ending | Beginning | |
| Within 1 year | 519,087,230.11 | 331,458,596.48 |
| 1 to 2 years | 27,392,882.62 | 129,964,617.73 |
| 2 to 3 years | 180,111,464.00 | 194,978,317.34 |
| Over 3 years | 21,003,965.64 | 79,338,758.60 |
| Total | 747,595,542.37 | 735,740,290.15 |
| Provision | -11,830,898.62 | -11,821,252.79 |
| Total | 735,764,643.75 | 723,919,037.36 |
(2)Other receivables are classified by nature as follows:
| Nature | Ending | Beginning |
| New energy subsidy | 251,906,995.80 | 517,224,182.80 |
| Reserve | 107,800.00 | 18,868,220.28 |
| New energy points | 333,838,264.00 | |
| Other | 149,911,583.95 | 187,826,634.28 |
| Total | 735,764,643.75 | 723,919,037.36 |
(3)In 2021, the changes in the provision for bad debts for other receivables based on the 12-month expected credit losses and theexpected credit losses for the entire duration are as follows:
| Stage 1 12-month ECLs | Stage 2 Lifetime ECLs | Stage 3 Credit-impaired financial assets (Lifetime ECLs) | Total | |
| Opening balance | 269,269.46 | 42,082.56 | 11,509,900.77 | 11,821,252.79 |
| Changes due to the opening balance | ||||
| - Transfer to Stage 2 | ||||
| - Transfer to Stage 3 | ||||
| - Turn back Stage 2 | ||||
| - Turn back Stage 1 | ||||
| Provision | 17,904.92 | 3,500.00 | - | 21,404.92 |
| Reversal | -6,847.11 | - | - | -6,847.11 |
| Write-off | - | -4,911.98 | -4,911.98 | |
| Ending balance | 280,327.27 | 45,582.56 | 11,504,988.79 | 11,830,898.62 |
(4)In 2020, the changes in the provision for bad debts for other receivables based on the 12-month expected credit losses and theexpected credit losses for the entire duration are as follows:
| Stage 1 12-month ECLs | Stage 2 Lifetime ECLs | Stage 3 Credit-impaired financial assets (Lifetime ECLs) | Total | |
| Opening balance | 291,182.01 | 111,686,526.12 | 13,616,375.98 | 125,594,084.11 |
| Impact of applying the new revenue standard | - | -111,066,213.00 | -1,572,800.00 | -112,639,013.00 |
| Balance at the beginning of the year adjusted in accordance with the new income standards | 291,182.01 | 620,313.12 | 12,043,575.98 | 12,955,071.11 |
| Changes due to the opening balance | ||||
| - Transfer to Stage 2 | - | - | - | - |
| - Transfer to Stage 3 | - | -534,931.90 | 534,931.90 | - |
| - Turn back Stage 2 | - | - | - | - |
| - Turn back Stage 1 | - | - | - | - |
| Provision | - | - | 4,323,884.00 | 4,323,884.00 |
| Reversal | -21,912.55 | -43,298.66 | -1,889,832.11 | -1,955,043.32 |
| Write-off | - | - | -3,502,659.00 | -3,502,659.00 |
| Closing balance | 269,269.46 | 42,082.56 | 11,509,900.77 | 11,821,252.79 |
(5)As at June 30, 2021, top five debtors of other receivables are as follows:
| Debtors | Amount | Aging | Proportion of total other receivables (%) |
| First | 195,200,000.00 | Within 6 months | 26.11 |
| Second | 124,312,677.99 | Over 3 years | 16.63 |
| Third | 74,416,240.80 | 2-3 years | 9.95 |
| Fourth | 64,274,400.00 | Within 6 months | 8.60 |
| Fifth | 48,350,040.00 | Within 6 months | 6.47 |
| Total | 506,553,358.79 | 67.76 |
As at 31 December 2020, top five debtors of other receivables are as follows:
| Debtors | Amount | Aging | Proportion of total other receivables (%) |
| First | 404,133,442.00 | Within 1year | 54.93 |
| Second | 113,090,740.80 | Within 1year | 15.37 |
| Third | 124,312,677.99 | 2-3 years | 16.90 |
| Fourth | 6,750,000.00 | Within 1 year | 0.92 |
| Fifth | 4,205,240.91 | 0-2 years | 0.57 |
| Total | 652,492,101.70 | 88.69 |
(6) As of June 30, 2021, the Group has no other receivables derecognized as financial asset transfers. (December 31, 2020: Nil).
7. Inventory
(1) Classification of inventory
In RMB Yuan
| Item | Ending | Beginning | ||||
| Balance | Provision | Net value | Balance | Provision | Net value | |
| Raw materials | 634,930,742.70 | 325,895,639.25 | 309,035,103.45 | 774,157,630.94 | 361,595,043.64 | 412,562,587.30 |
| Work in transit | 210,173,876.01 | - | 210,173,876.01 | 221,894,049.90 | - | 221,894,049.90 |
| Work in progress | 874,015,158.82 | 112,982,816.41 | 761,032,342.41 | 870,386,230.20 | 74,926,608.94 | 795,459,621.26 |
| Commodity stock | 2,868,488,344.57 | 85,280,664.70 | 2,783,207,679.87 | 4,703,486,357.31 | 214,237,621.88 | 4,489,248,735.43 |
| Revolving materials | - | - | - | 18,085,079.75 | - | 18,085,079.75 |
| Spare parts | 26,041,659.57 | - | 26,041,659.57 | 30,266,156.93 | - | 30,266,156.93 |
| Total | 4,613,649,781.67 | 524,159,120.36 | 4,089,490,661.31 | 6,618,275,505.03 | 650,759,274.46 | 5,967,516,230.57 |
(2) Provision for inventory
In RMB Yuan
| Type | Beginning | Provision | Deduction | Ending | |
| Reversal | Write-off | ||||
| Raw materials | 361,595,043.64 | 603,445.32 | 29,090.72 | 36,273,758.99 | 325,895,639.25 |
| Work in progress | 74,926,608.94 | 70,374,567.96 | 657,556.57 | 31,660,803.92 | 112,982,816.41 |
| Commodity stock | 214,237,621.88 | 5,639,246.20 | 419,862.72 | 134,176,340.66 | 85,280,664.70 |
| Total | 650,759,274.46 | 76,617,259.48 | 1,106,510.01 | 202,110,903.57 | 524,159,120.36 |
8. Contract assets
(1) Classification of Contract assets
In RMB Yuan
| Item | Ending | Beginning | ||||
| Balance | Provision for impairment | Net value | Balance | Provision for impairment | Net value | |
| Contract assets | 1,591,314,764.43 | 112,206,156.88 | 1,479,108,607.55 | 1,584,180,347.49 | 134,148,932.88 | 1,450,031,414.61 |
| Total | 1,591,314,764.43 | 112,206,156.88 | 1,479,108,607.55 | 1,584,180,347.49 | 134,148,932.88 | 1,450,031,414.61 |
(2) Current contract assets provision for impairment
In RMB Yuan
| Beginning balance | Provision for this year | Deduction | Ending balance | ||
| Reversal | Write-off | ||||
| 2021 | 134,148,932.88 | 20,192,776.00 | 1,750,000.00 | 112,206,156.88 | |
9. Other current assets
In RMB Yuan
| Item | Ending | Beginning |
| Accrual input tax | 639,879,161.18 | 847,632,683.61 |
| Entrusted Loan | - | 300,000,000.00 |
| Others | 419,376,052.18 | 421,079,187.00 |
| Total | 1,059,255,213.36 | 1,568,711,870.61 |
10. Other equity instrument investments
| Accumulative changes in fair value included in other comprehensive income | Fair value | Dividends Income | Reason for being designated as fair value through other comprehensive income | |
| Corun Hybrid Power Technology Co. Ltd | 8,090,000.00 | 208,090,000.00 | Unlisted equity instruments | |
| China South Industry Group Finance Co., Ltd. | 160,099,200.00 | 317,120,000.00 | 70,204,197.65 | Unlisted equity instruments |
| Guoqi (Beijing) Intelligent Network Association Automotive Research Institute Co., Ltd. | 3,900,000.00 | 53,900,000.00 | Unlisted equity instruments | |
| Guoqi Automobile Power Cell Research Co., Ltd. | 13,680,000.00 | 53,680,000.00 | Unlisted equity instruments | |
| China North Industries Group Financial Leasing Co., Ltd. | 4,648,000.00 | 35,200,000.00 | Unlisted equity instruments | |
| Zhong Fa Lian Investment Co., Ltd. | 21,000,000.00 | Unlisted equity instruments | ||
| CAERI(Beijing) automobile Lightweight Technology Research Institution Co., Ltd. | - | 3,000,000.00 | - | Unlisted equity instruments |
| Total | 190,417,200.00 | 691,990,000.00 | 70,204,197.65 |
11. Long-term equity investment
In RMB Yuan
| Investee | Beginning balance | Increase or decrease | Investment income under equity method | Other equity variation | Cash dividends declared | Other Deduction | Provision | Ending balance | Provision ending balance |
| Joint Venture | |||||||||
| Changan Ford Automobile Co., Ltd. | 1,791,533,495.17 | 362,952,450.03 | 2,154,485,945.20 | ||||||
| Changan Mazda Automobile Co., Ltd. | 1,995,998,622.28 | 280,357,717.64 | 719,500,000.00 | 1,556,856,339.92 | |||||
| Changan Mazda Engine Co., Ltd. | 832,869,256.44 | 15,721,810.83 | 848,591,067.27 | ||||||
| Nanchang Jiangling Holding Co., Ltd. | 1,545,807,633.84 | 78,245,997.25 | 1,624,053,631.09 | ||||||
| Associates | |||||||||
| Chongqing Changan Kuayue Automobile Co., Ltd. | 237,736,134.21 | 4,994,618.02 | 3,430,000.00 | 239,300,752.23 | |||||
| Chongqing Changan Kuayue Automobile Sales Co., Ltd. (note1) | - | - | |||||||
| Beijing Fang’an cresent taxi Co., Ltd. (note1) | - | - | |||||||
| Changan Automobile Financing Co.,Ltd | 2,337,849,374.75 | 129,697,153.59 | 65,191,812.92 | 2,402,354,715.42 | |||||
| Hainan Anxinxing Information Technology Co., Ltd. | 2,316,052.92 | -1,009,343.24 | 1,306,709.68 | ||||||
| Nanjing Chelai Travel Technology Co., Ltd. | 1,192,605.27 | -134,310.36 | 1,058,294.91 | ||||||
| Hunan Guoxin Semiconductor Technology Co., Ltd. | 25,373,809.47 | -514,689.73 | 24,859,119.74 |
| Nanjing Leading Equity Investment Partnership | 999,636,607.63 | -33,139.50 | 999,603,468.13 | ||||||
| Nanjing Leading Equity Investment Management Co., Ltd. | 1,262,180.39 | -64,190.89 | 1,197,989.50 | ||||||
| Jiangling Holdings Co., Ltd. | 201,736,644.25 | -48,302,837.53 | 153,433,806.72 | ||||||
| Chongqing Changan New Energy Automobile Technology Co., Ltd. | 1,991,016,135.19 | -571,646,859.78 | 1,419,369,275.41 | ||||||
| Anhe (Chongqing) Equity Investment Fund Management Co., Ltd. | 1,518,177.47 | -420,086.71 | 1,098,090.76 | ||||||
| Hangzhou Chelizi Intelligent Technology Co., Ltd. | 9,692,964.92 | -26,284.37 | 9,666,680.55 | ||||||
| Beijing Wutong Chelian Technology Co., Ltd. (note1) | - | - | |||||||
| Pakistan Master Automobile Co., Ltd. | 33,550,101.47 | 1,644,573.96 | 35,194,675.43 | ||||||
| Zhongqi Chuangzhi Technology Co., Ltd. | 100,000,000.00 | -753,627.84 | 99,246,372.16 | ||||||
| Total | 12,109,089,795.67 | 250,708,951.37 | 788,121,812.92 | 11,571,676,934.12 | -- |
Note1: As at June 30, 2021, the Group is not responsible for extra loss from Chongqing Changan Kuayue Automobile Sales Co., Ltd., Beijing Fang’an cresent taxi Co., Ltd. and Beijing Wutong
Chelian Technology Co., Ltd. Therefore, when excess losses of these three associates occurred, the Group just reduced its correspondent long-term equity investment to zero, and did notrecognize contingent liabilities accordingly.
12. Investment property
According to the cost of the investment real estate
In RMB Yuan
| Item | Beginning | Addition | Deduction | Ending |
| I. Original cost | 10,050,100.00 | 10,050,100.00 | ||
| Buildings | 10,050,100.00 | 10,050,100.00 | ||
| II. Accumulated depreciationand amortization | 3,173,961.84 | 113,355.78 | 3,287,317.62 | |
| Buildings | 3,173,961.84 | 113,355.78 | 3,287,317.62 | |
| III. Net Value | ||||
| Buildings | ||||
| IV. Impairment Provision | 6,876,138.16 | -113,355.78 | 6,762,782.38 | |
| Buildings | 6,876,138.16 | -113,355.78 | 6,762,782.38 |
13. Fixed assets
| Beginning | Ending (Restated) | |
| Fixed assets | 23,289,607,252.47 | 24,298,402,558.49 |
| Fixed assets cleanup | 14,150.94 | |
| total | 23,289,621,403.41 | 24,298,402,558.49 |
Fixed assets
In RMB Yuan
| Item | Beginning (Restated) | Addition | Deduction | Ending |
| I. Original cost | 46,580,586,336.46 | 901,183,927.26 | 483,839,940.04 | 46,997,930,323.68 |
| Buildings | 11,091,180,455.31 | 4,481,251.79 | 260,089,092.93 | 10,835,572,614.17 |
| Machinery | 25,112,728,137.98 | 601,737,167.12 | 41,683,465.58 | 25,672,781,839.52 |
| Vehicles | 1,375,868,861.24 | 289,715,972.94 | 142,850,963.04 | 1,522,733,871.14 |
| Other Equipments | 9,000,808,881.93 | 5,249,535.41 | 39,216,418.49 | 8,966,841,998.85 |
| II. Accumulated depreciation | 20,593,765,688.59 | 1,515,838,567.70 | 189,745,792.17 | 21,919,858,464.12 |
| Buildings | 2,504,726,565.55 | 167,241,162.91 | 111,108,816.44 | 2,560,858,912.02 |
| Machinery | 12,955,993,422.16 | 829,455,742.37 | 1,590,874.24 | 13,783,858,290.29 |
| Vehicles | 651,778,015.76 | 63,110,890.19 | 76,347,995.59 | 638,540,910.36 |
| Other Equipments | 4,481,267,685.12 | 456,030,772.23 | 698,105.90 | 4,936,600,351.45 |
| III. Net Value | 25,986,820,647.87 | -614,654,640.44 | 294,094,147.87 | 25,078,071,859.56 |
| Buildings | 8,586,453,889.76 | -162,759,911.12 | 148,980,276.49 | 8,274,713,702.15 |
| Machinery | 12,156,734,715.82 | -227,718,575.25 | 40,092,591.34 | 11,888,923,549.23 |
| Vehicles | 724,090,845.48 | 226,605,082.75 | 66,502,967.45 | 884,192,960.78 |
| Other Equipments | 4,519,541,196.81 | -450,781,236.82 | 38,518,312.59 | 4,030,241,647.40 |
| IV.Impairment Provision | 1,688,418,089.38 | 133,683,760.35 | 33,637,242.64 | 1,788,464,607.09 |
| Buildings | 100,051,106.88 | 5,388,281.83 | 94,662,825.05 | |
| Machinery | 1,233,285,296.24 | 86,259,889.66 | 1,326,953.89 | 1,318,218,232.01 |
| Vehicles | 124,040,034.61 | 26,922,006.92 | 97,118,027.69 | |
| Other Equipments | 231,041,651.65 | 47,423,870.69 | 278,465,522.34 | |
| V. Book Value | 24,298,402,558.49 | -748,338,400.79 | 260,456,905.23 | 23,289,607,252.47 |
| Buildings | 8,486,402,782.88 | -162,759,911.12 | 143,591,994.66 | 8,180,050,877.10 |
| Machinery | 10,923,449,419.58 | -313,978,464.91 | 38,765,637.45 | 10,570,705,317.22 |
| Vehicles | 600,050,810.87 | 226,605,082.75 | 39,580,960.53 | 787,074,933.09 |
| Other Equipments | 4,288,499,545.16 | -498,205,107.51 | 38,518,312.59 | 3,751,776,125.06 |
Fixed assets cleanup
| Item | Beginning book value | Ending book value | Reasons for transfer to cleanup |
| mechanical equipment | 14,150.94 | Scrapped and not disposed of | |
| total | 14,150.94 | —— —— |
14. Construction in progress
(1) Details of construction in progress
In RMB Yuan
| Item | Closing balance | Openning balance | ||||
| Balance | Provision | Book value | Balance | Provision | Book value | |
| Vehicle production equipment | 36,382,238.86 | 36,382,238.86 | 17,743,577.36 | 17,743,577.36 | ||
| Car production equipment | 91,492,887.79 | 91,492,887.79 | 88,814,216.88 | 88,814,216.88 | ||
| Engine project | 126,742,173.61 | 126,742,173.61 | 146,394,397.19 | 146,394,397.19 | ||
| Vehicle research institution | 45,893,419.11 | 45,893,419.11 | 38,021,494.37 | 38,021,494.37 | ||
| Vehicle moulds | 212,278,534.70 | 21,532,971.11 | 190,745,563.59 | 241,611,437.44 | 21,532,971.11 | 220,078,466.33 |
| Hefei Vehicle Project | 3,507,161.30 | 3,507,161.30 | 336,334.75 | 336,334.75 | ||
| Others | 309,942,000.52 | 49,819,988.01 | 260,122,012.51 | 586,467,649.83 | 49,819,988.01 | 536,647,661.82 |
| Total | 826,238,415.89 | 71,352,959.12 | 754,885,456.77 | 1,119,389,107.82 | 71,352,959.12 | 1,048,036,148.70 |
(2) Movement of major construction in progress projects
In RMB Yuan
| Item | Beginning | Addition | Transferred to fixed assets | Deduction | Ending |
| Vehicle production equipment | 17,743,577.36 | 83,690,096.66 | 65,051,435.16 | 36,382,238.86 | |
| Car production equipment | 88,814,216.88 | 3,937,246.56 | 1,258,575.65 | 91,492,887.79 | |
| Engine project | 146,394,397.19 | 146,594,617.30 | 166,246,840.88 | 126,742,173.61 | |
| Vehicle research institution | 38,021,494.37 | 54,977,877.12 | 47,105,952.38 | 45,893,419.11 | |
| Vehicle moulds | 220,078,466.33 | 30,012,254.41 | 59,345,157.15 | 190,745,563.59 | |
| Hefei Vehicle Project | 336,334.75 | 3,170,826.55 | 3,507,161.30 | ||
| Others | 536,647,661.82 | 281,873,689.58 | 558,399,338.89 | 260,122,012.51 | |
| Total | 1,048,036,148.70 | 604,256,608.18 | 897,407,300.11 | 754,885,456.77 |
(3) Provision for impairment of construction in progress
On June 30, 2021, the balance of impairment provision for construction in progress was RMB 71,352,959.12. There was no accruedor resold amount in the current year. (As of December 31, 2020, the amount of impairment provision for construction in progress wasRMB 71,352,959.12).
15. Right-of-use asset
In RMB Yuan
| Item | Beginning | Addition | Deduction | Ending |
| I. Original cost | 55,231,380.07 | 25,976,026.62 | - | 81,207,406.69 |
| Buildings | 55,231,380.07 | 25,976,026.62 | - | 81,207,406.69 |
| Machinery | - | - | - | - |
| Vehicles | - | - | - | - |
| Other Equipments | - | - | - | - |
| II. Accumulated depreciation | - | 12,224,609.69 | - | 12,224,609.69 |
| Buildings | - | 12,224,609.69 | - | 12,224,609.69 |
| Machinery | - | - | - | - |
| Vehicles | - | - | - | - |
| Other Equipments | - | - | - | - |
| III.Impairment Provision | - | - | - | - |
| Buildings | - | - | - | - |
| Machinery | - | - | - | - |
| Vehicles | - | - | - | - |
| Other Equipments | - | - | - | - |
| IV. Book Value | 55,231,380.07 | 13,751,416.93 | - | 68,982,797.00 |
| Buildings | 55,231,380.07 | 13,751,416.93 | - | 68,982,797.00 |
| Machinery | - | - | - | - |
| Vehicles | - | - | - | - |
| Other Equipments | - | - | - | - |
16. Intangible assets
Details of intangible assets
In RMB Yuan
| Item | Beginning(Restated) | Addition | Deduction | Ending |
| I. Original cost | 10,917,473,478.80 | 339,529,907.86 | 128,420,006.92 | 11,128,583,379.74 |
| Land use rights | 2,296,172,277.67 | 9,222.24 | 128,415,191.11 | 2,167,766,308.80 |
| Software use rights | 587,986,774.18 | 11,233,173.00 | 480.66 | 599,219,466.52 |
| Trademark use rights | 211,770,000.00 | - | 211,770,000.00 | |
| Non-patent technology | 7,821,544,426.95 | 328,287,512.62 | 4,335.15 | 8,149,827,604.42 |
| II. Accumulated amortization | 6,076,168,982.33 | 545,011,292.13 | 47,902,992.09 | 6,573,277,282.37 |
| Land use rights | 399,281,544.39 | 22,762,390.62 | 47,902,992.09 | 374,140,942.92 |
| Software use rights | 564,106,714.47 | 10,745,497.13 | - | 574,852,211.60 |
| Trademark use rights | 205,936,666.62 | 5,833,333.38 | - | 211,770,000.00 |
| Non-patent technology | 4,906,844,056.85 | 505,670,071.00 | 5,412,514,127.85 | |
| III. Net value | 4,841,304,496.47 | -205,481,384.27 | 80,517,014.83 | 4,555,306,097.37 |
| Land use rights | 1,896,890,733.28 | -22,753,168.38 | 80,512,199.02 | 1,793,625,365.88 |
| Software use rights | 23,880,059.71 | 487,675.87 | 480.66 | 24,367,254.92 |
| Trademark use rights | 5,833,333.38 | -5,833,333.38 |
| Non-patent technology | 2,914,700,370.10 | -177,382,558.38 | 4,335.15 | 2,737,313,476.57 |
| IV. Impairment provision | 407,533,260.21 | 6,685,373.29 | - | 414,218,633.50 |
| Land use rights | - | - | - | |
| Software use rights | 23,617,923.17 | - | - | 23,617,923.17 |
| Trademark use rights | - | - | ||
| Non-patent technology | 383,915,337.04 | 6,685,373.29 | - | 390,600,710.33 |
| V. Book value | 4,433,771,236.26 | -212,166,757.56 | 80,517,014.83 | 4,141,087,463.87 |
| Land use rights | 1,896,890,733.28 | -22,753,168.38 | 80,512,199.02 | 1,793,625,365.88 |
| Software use rights | 262,136.54 | 487,675.87 | 480.66 | 749,331.75 |
| Trademark use rights | 5,833,333.38 | -5,833,333.38 | ||
| Non-patent technology | 2,530,785,033.06 | -184,067,931.67 | 4,335.15 | 2,346,712,766.24 |
As at 30 June 2021, the intangible assets from internal research and development account for 56.67% of total intangible assets (OnDecember 31, 2020: 49.25%).
17. Development expenditure
In RMB Yuan
| Item | Beginning | Addition | Deduction | Ending | |
| Included in current profit and loss | Recognized as intangible assets | ||||
| Automobile Development | 596,577,787.95 | 464,549,611.05 | 57,123,680.65 | 318,657,018.15 | 685,346,700.20 |
| Total | 596,577,787.95 | 464,549,611.05 | 57,123,680.65 | 318,657,018.15 | 685,346,700.20 |
18. Goodwill
In RMB Yuan
| Investee | Beginning | Addition | Deduction | Ending | Impairment provision |
| Hebei Changan Automobile Co., Ltd | 9,804,394.00 | 9,804,394.00 | |||
| Nanjing Changan Automobile Co., Ltd | 73,465,335.00 | ||||
| Avita Technology (Chongqing) Co., Ltd. (Note) | 39,078,794.37 | 39,078,794.37 | |||
| Total | 48,883,188.37 | 48,883,188.37 | 73,465,335.00 |
Note: In May 2021, Changan Weilai New Energy Automobile Technology Co., Ltd. was renamed Avita Technology (Chongqing) Co.,Ltd.
19. Long-term deferred expenses
In RMB Yuan
| Item | Beginning | Addition | Amortization | Ending |
| Long-term deferred expenses | 10,642,512.51 | 4,332,235.91 | 2,670,879.81 | 12,303,868.61 |
| Total | 10,642,512.51 | 4,332,235.91 | 2,670,879.81 | 12,303,868.61 |
20. Deferred tax assets and liabilities
Recognized deferred tax assets and liabilities:
In RMB Yuan
| Item | Ending | Beginning |
| Deferred tax assets: | ||
| Provision for the impairment of assets | 347,918,271.33 | 340,410,466.42 |
| Accrued expenses and contingent liabilities | 1,253,365,334.20 | 1,116,879,367.85 |
| Unpaid tech development expense and advertisement expense | 145,832,004.03 | 127,040,348.39 |
| Deferred income | 445,156,840.73 | 426,639,099.35 |
| Unpaid salary and bonus and others | 65,328,917.85 | 120,297,395.51 |
| Subtotal | 2,257,601,368.14 | 2,131,266,677.52 |
| Deferred tax liabilities: | ||
| Changes in fair value of financial assets | 56,138,136.57 | 57,473,856.77 |
| Fair value adjustment of business combination not under the same control | 35,049,656.72 | 36,579,827.23 |
| Others | 21,251,044.62 | 21,251,044.61 |
| Subtotal | 112,438,837.91 | 115,304,728.61 |
21. Short-term loans
In RMB Yuan
| Item | Ending | Beginning |
| Pledge loans | 42,000,000.00 | 48,000,000.00 |
| Credit loans | 510,000,000.00 | 530,000,000.00 |
| Total | 552,000,000.00 | 578,000,000.00 |
22. Notes payable
In RMB Yuan
| Item | Ending | Beginning |
| Commercial acceptance bill | 1,519,474,680.26 | 4,562,217,151.91 |
| Bank acceptance bill | 25,666,782,828.70 | 13,011,797,401.55 |
| Total | 27,186,257,508.96 | 17,574,014,553.46 |
23. Accounts payable
In RMB Yuan
| Item | Ending | Beginning |
| Accounts payable | 24,517,099,039.98 | 23,118,793,794.42 |
| total | 24,517,099,039.98 | 23,118,793,794.42 |
24. Contract liabilities
In RMB Yuan
| Item | Ending | Beginning |
| Advance payment | 4,010,308,455.47 | 3,779,593,859.42 |
| Pre-collected service fee | 657,025,108.46 | 691,564,331.33 |
| total | 4,667,333,563.93 | 4,471,158,190.75 |
25. Payroll payable
In RMB Yuan
| Item | Beginning | Addition | Deduction | Ending |
| Short term salary benefits | 1,920,693,265.47 | 3,001,383,119.45 | 2,923,032,138.81 | 1,999,044,246.11 |
| Defined contribution plans | 91,080,101.10 | 271,504,207.89 | 233,686,767.21 | 128,897,541.78 |
| Early retirement benefits and others | 4,095,000.00 | 4,074,520.29 | 4,098,191.65 | 4,071,328.64 |
| Total | 2,015,868,366.57 | 3,276,961,847.63 | 3,160,817,097.67 | 2,132,013,116.53 |
| Short term salary benefits as follows: | ||||||
| In RMB Yuan | ||||||
| Item | Beginning | Addition | Deduction | Ending | ||
| Salary, bonus, allowance and subsidy | 1,575,687,212.16 | 2,398,327,611.58 | 2,269,105,356.23 | 1,704,909,467.51 | ||
| Employee benefit | 50,451,868.33 | 98,391,685.48 | 142,873,400.27 | 5,970,153.54 | ||
| Social insurance | 30,045,657.36 | 204,372,539.67 | 180,290,176.01 | 54,128,021.02 | ||
| Housing accumulation fund | 74,632,036.37 | 179,622,026.91 | 207,608,244.34 | 46,645,818.94 | ||
| Labor fund and employee education fund | 189,876,491.25 | 120,669,255.81 | 123,154,961.96 | 187,390,785.10 | ||
| Total | 1,920,693,265.47 | 3,001,383,119.45 | 2,923,032,138.81 | 1,999,044,246.11 | ||||||
| Defined contribution plans as follows: | ||||||||||
| In RMB Yuan | ||||||||||
| Item | Beginning | Addition | Deduction | Ending | ||||||
| Basic retirement security | 82,228,882.36 | 263,829,857.58 | 227,513,471.99 | 118,545,267.95 | ||||||
| Unemployment insurance | 8,851,218.74 | 7,674,350.31 | 6,173,295.22 | 10,352,273.83 | ||||||
| Total | 91,080,101.10 | 271,504,207.89 | 233,686,767.21 | 128,897,541.78 | ||||||
26. Taxes payable
In RMB Yuan
| Item | Ending | Beginning |
| Value-added tax | 167,086,045.25 | 441,502,809.12 |
| Consumption tax | 294,962,007.83 | 730,908,794.38 |
| Corporate income tax | 83,016,728.51 | 60,154,873.22 |
| City maintenance and construction tax, education additional expenses | 47,516,876.35 | 35,664,425.85 |
| Others | 15,393,796.85 | 23,770,361.29 |
| Total | 607,975,454.79 | 1,292,001,263.86 |
27. Other payables
| Item | Ending | Beginning |
| Dividend payable | 1,020,630.53 | - |
| Other payables | 3,642,242,930.75 | 4,475,215,625.98 |
| 合计 | 3,643,263,561.28 | 4,475,215,625.98 |
Dividend payable
In RMB Yuan
| Item | Ending | Beginning |
| Interest on long-term borrowings with interest payments due | 765,630.50 | |
| Interest payable on short-term loans | 255,000.03 | |
| Total | 1,020,630.53 | - |
Other payables
In RMB Yuan
| Item | Ending | Beginning |
| Deposits of dealer and supplier | 228,521,330.55 | 190,379,159.39 |
| Maintenance fees | 169,945,555.78 | 213,623,566.01 |
| Advertising fees | 369,622,352.21 | 642,353,999.96 |
| Warehousing and transport fees | 465,422,386.27 | 120,627,263.12 |
| Receipt of land and plant disposal fees in advance | - | 1,000,000,000.00 |
| Purchase and construction of fixed assets, intangible assets and project deposits | 1,545,914,933.06 | 1,627,340,431.42 |
| Others | 862,816,372.88 | 680,891,206.08 |
| Total | 3,642,242,930.75 | 4,475,215,625.98 |
28. Estimated liabilities
In RMB Yuan
| Item | Beginning | Addition | Deduction | Ending |
| product quality assurance | 2,555,699,406.23 | 847,110,447.51 | 358,249,314.82 | 3,044,560,538.92 |
| Supplier compensation | 569,471,536.23 | 71,694,246.18 | 497,777,290.05 | |
| Total | 3,125,170,942.46 | 847,110,447.51 | 429,943,561.00 | 3,542,337,828.97 |
Note: The product quality assurance is the maintenance cost of the estimated three-package period of the sold vehicle.
29. Other current liabilities
In RMB Yuan
| Item | Ending | Beginning |
| Accrued utilities | 11,813,851.75 | 25,513,787.11 |
| Accrued transportation fee | 603,870,538.29 | 646,608,569.79 |
| Accrued maintenance fee | 42,280,512.39 | 56,717,786.02 |
| Accrued technology transfer and development fee | 344,806,939.80 | 78,382,904.18 |
| Accrued commercial discount payable | 3,302,801,566.29 | 3,661,553,908.15 |
| Accrued market development expense | 845,726,993.02 | 475,834,141.44 |
| Accrued rental fee | 79,887,270.52 | 82,867,604.56 |
| Accrued fuel consumption negative points fee | 1,311,033,458.49 | 674,762,264.15 |
| Others | 146,086,376.58 | 140,517,138.68 |
| Total | 6,688,307,507.13 | 5,842,758,104.08 |
30. Long term loan
In RMB Yuan
| Item | Ending | Beginning |
| Credit loan | 955,300,000.00 | 1,055,300,000.00 |
| Including: long-term loans due within one year | 301,000,000.00 | 100,000,000.00 |
| Net Long term loan | 654,300,000.00 | 955,300,000.00 |
31. Lease liability
In RMB Yuan
| Item | Ending | Beginning |
| Lease liability | 54,335,728.17 | 55,231,380.07 |
| Including: lease liabilities due within one year | 27,905,578.01 | |
| Net Lease liability | 26,430,150.16 | 55,231,380.07 |
32. Long-term payables
| Item | Ending | Beginning |
| Special payables | 207,811,375.66 | 261,260,928.70 |
| Total | 207,811,375.66 | 261,260,928.70 |
Special payables
In RMB Yuan
| Item | Beginning | Addition | Deduction | Ending |
| Nanjing Chang'an Demolition Compensation Fund | 55,350,709.40 | 55,350,709.40 | ||
| Intelligent manufacturing project | 131,865,237.97 | 9,701,500.00 | 26,795,751.25 | 114,770,986.72 |
| Lightweight design of automobile structure | 6,914,468.49 | 1,310,000.00 | 7,815,489.10 | 408,979.39 |
| Others | 67,130,512.84 | 1,885,857.00 | 31,735,669.69 | 37,280,700.15 |
| Total | 261,260,928.70 | 12,897,357.00 | 66,346,910.04 | 207,811,375.66 |
33. Deferred income
30 June, 2021
In RMB Yuan
| Item | Beginning (Restated) | Addition | Deduction | Ending |
| Government grants related to assets | 154,000,000.00 | 147,672,725.87 | 143,531,402.87 | 158,141,323.00 |
| Government grants related to income | 664,398,430.21 | 599,765,955.14 | 161,384,901.78 | 1,102,779,483.57 |
| Total | 818,398,430.21 | 747,438,681.01 | 304,916,304.65 | 1,260,920,806.57 |
As at 30 June 2021, details of liabilities related to government grants are as follows:
In RMB Yuan
| Item | Beginning (Restated) | Addition | Deduction | Ending |
| Related to assets | 154,000,000.00 | 147,672,725.87 | 143,531,402.87 | 158,141,323.00 |
| Production and construction subsidies | - | 135,448,745.57 | 127,307,422.57 | 8,141,323.00 |
| R&D technology subsidies | 4,000,000.00 | 5,052,195.96 | 9,052,195.96 | - |
| Other government subsidies | 150,000,000.00 | 7,171,784.34 | 7,171,784.34 | 150,000,000.00 |
| Related to income | 664,398,430.21 | 599,765,955.14 | 161,384,901.78 | 1,102,779,483.57 |
| R&D technology subsidies | 408,299,844.41 | 599,000,000.00 | 98,207,401.80 | 909,092,442.61 |
| Other government subsidies | 256,098,585.80 | 765,955.14 | 63,177,499.98 | 193,687,040.96 |
| Total | 818,398,430.21 | 747,438,681.01 | 304,916,304.65 | 1,260,920,806.57 |
34. Share capital
In RMB Yuan
| Beginning | Current movement | Ending | ||||||
| Issuance of shares | Stock dividend | Transfer of reserve to common shares | others | Subtotal | ||||
| I. | Restricted shares | |||||||
| 1 | State-owned legal person holdings | 283,138,318 | 283,138,318 | |||||
| 2 | Other domestic holdings | 244,917,965 | 76,195,400 | -244,899,065 | -168,703,665 | 76,214,300 | ||
| 3 | Foreign shareholding | 32,710,280 | -32,710,280 | -32,710,280 | - | |||
| Total restricted shares | 560,766,563 | 76,195,400 | -277,609,345 | -201,413,945 | 359,352,618 | |||
| II. | Unrestricted shares | |||||||
| 1 | RMB ordinary shares | 3,900,643,469 | 277,609,345 | 277,609,345 | 4,178,252,814 | |||
| 2 | Domestically listed foreign shares | 901,986,142 | 901,986,142 | |||||
| Total unrestricted shares | 4,802,629,611 | 277,609,345 | 277,609,345 | 5,080,238,956 | ||||
| III. | Total shares | 5,363,396,174 | 76,195,400 | - | 76,195,400 | 5,439,591,574 | ||
35. Capital reserves
In RMB Yuan
| Item | Beginning | Addition | Deduction | Ending |
| Share premium | 10,364,453,940.59 | 430,822,567.78 | 10,795,276,508.37 | |
| Share-based payment | 107,618,400.00 | 107,618,400.00 | ||
| Capital reserve transferred arising from the old standards | 44,496,899.00 | 44,496,899.00 | ||
| Equity investment preparation | 17,015,985.20 | 17,015,985.20 | ||
| Others | 504,815,093.85 | 504,815,093.85 | ||
| Total | 10,930,781,918.64 | 538,440,967.78 | 11,469,222,886.42 |
36. Other comprehensive income
In RMB Yuan
| 2020.12.31 | Increase or decrease | 2021.6.30 | |
| Remeasure the net liabilities or changes in net assets of defined benefit plans | 1,222,000.00 | 1,222,000.00 | |
| Under the equity method, the invested unit's share of other comprehensive income that cannot be reclassified into profit and loss | -2,088,068.00 | -2,088,068.00 | |
| Changes in the fair value of other equity instrument investments | 161,854,620.00 | 161,854,620.00 | |
| Translation differences of foreign currency financial statements | -82,567,831.22 | 21,820,284.63 | -60,747,546.59 |
| Total | 78,420,720.78 | 21,820,284.63 | 100,241,005.41 |
37. Surplus reserves
In RMB Yuan
| Item | Beginning | Addition | Deduction | Ending |
| Statutory surplus | 2,681,698,087.00 | 2,681,698,087.00 | ||
| Total | 2,681,698,087.00 | 2,681,698,087.00 |
38. Retained earnings
In RMB Yuan
| Item | Amount |
| Retained earnings at beginning of year | 34,315,048,892.26 |
| Add: Net profit belong to parent company | 1,729,245,208.60 |
| Less: Dividends payable on ordinary shares | 1,666,243,360.54 |
| Retained earnings at the end | 34,378,050,740.32 |
39. Operating revenue and cost
In RMB Yuan
| Report period | Same period of last year (Restated) | |||
| Revenue | Cost | Revenue | Cost | |
| Main business | 55,859,466,497.39 | 47,581,200,934.60 | 32,014,959,151.44 | 29,196,996,395.37 |
| Other business | 925,165,401.68 | 505,476,294.61 | 766,698,327.66 | 381,078,163.79 |
| Total | 56,784,631,899.07 | 48,086,677,229.21 | 32,781,657,479.10 | 29,578,074,559.16 |
40. Tax and surcharges
In RMB Yuan
| Item | Report period | Same period of last year |
| Consumption tax | 1,599,192,250.70 | 954,339,591.94 |
| City maintenance and construction tax | 196,961,006.14 | 79,821,375.83 |
| Education additional expenses | 134,489,938.43 | 50,469,342.13 |
| Others | 157,051,471.80 | 121,656,073.55 |
| Total | 2,087,694,667.07 | 1,206,286,383.45 |
41. Operating expenses
In RMB Yuan
| Item | Report period | Same period of last year (Restated) |
| Payroll and welfare | 240,101,135.80 | 204,419,163.59 |
| Promotional advertising fees and sales service fees | 1,662,488,840.31 | 863,454,318.26 |
| Transportation expenses | 168,961,271.58 | 110,198,692.55 |
| Travelling expenses | 30,394,898.13 | 21,867,777.56 |
| Package expenses | 14,493,447.37 | 4,637,273.00 |
| Administrative expenses | 1,834,879.56 | 1,929,938.37 |
| Consulting fee | 5,542,562.49 | 993,897.25 |
| Training fee | 1,834,814.74 | 1,557,051.04 |
| Others | 20,463,462.21 | 61,657,895.29 |
| Total | 2,146,115,312.19 | 1,270,716,006.91 |
42. General and administrative expenses
In RMB Yuan
| Item | Report period | Same period of last year (Restated) |
| Payroll and welfare | 1,216,671,339.99 | 710,197,732.15 |
| Administrative expenses | 4,131,070.43 | 1,813,546.15 |
| Depreciation and amortization | 117,765,985.28 | 133,684,029.10 |
| Miscellaneous service charges | 5,262,718.15 | 11,389,441.25 |
| Traffic and travelling expenses | 27,865,566.05 | 19,024,299.22 |
| Entertainment expenses | 851,087.95 | 450,275.19 |
| New energy credit fee | 636,271,194.34 | |
| Others | 208,328,082.31 | 269,301,661.25 |
| Total | 2,217,147,044.50 | 1,145,860,984.31 |
43. Research and development expenses
| Item | Report period | Same period of last year (Restated) |
| Wages and benefits | 592,150,357.04 | 519,844,836.98 |
| Material fee | 70,981,081.39 | 58,974,839.13 |
| Subcontract fee | 147,374,115.88 | 171,587,497.89 |
| Travel research fee | 12,194,021.56 | 10,103,859.15 |
| Test fee | 35,455,478.77 | 43,007,880.00 |
| Depreciation and amortization | 607,589,508.63 | 580,661,427.53 |
| other fee | 29,838,798.89 | 39,395,129.69 |
| Total | 1,495,583,362.16 | 1,423,575,470.37 |
44. Financial expenses
In RMB Yuan
| Item | Report period | Same period of last year (Restated) |
| Interest expense | 26,372,186.29 | 20,373,153.36 |
| Less: interest income | 281,294,223.92 | 131,048,028.86 |
| Exchange gain or loss | 8,533,687.86 | 4,908,537.21 |
| Others | 12,611,859.12 | 7,547,792.91 |
| Total | -233,776,490.65 | -98,218,545.38 |
45. Assets disposal income
In RMB Yuan
| Item | Report period | Same period of last year | Included in 2021 non-recurring gains and losses |
| Fixed assets disposal income | 119,487,419.99 | 33,428,646.97 | 119,487,419.99 |
| Intangible assets disposal income | 481,579,441.34 | 481,579,441.34 | |
| Total | 601,066,861.33 | 33,428,646.97 | 601,066,861.33 |
46. Impairment loss on assets
In RMB Yuan
| Item | Report period | Same period of last year |
| Loss of inventory fall | 75,510,749.47 | 207,237,744.91 |
| Fixed asset impairment loss | 133,683,760.35 | 1,004,872.80 |
| Intangible asset impairment loss | 6,685,373.29 | - |
| Contract asset impairment loss | -20,192,776.00 | 4,586,336.00 |
| Total | 195,687,107.11 | 212,828,953.71 |
47. Credit impairment loss
| Item | Report period | Same period of last year |
| Bad debt losses on accounts receivable | 3,471,684.54 | 18,590,707.11 |
| Bad debt losses on other receivables | 14,557.81 | 123,075.90 |
| Total | 3,486,242.35 | 18,713,783.01 |
48. Changes in fair value gains and losses
| Sources of income from changes in fair value | Report period | Same period of last year |
| Transactional financial assets | 15,734,698.73 | 1,753,674,697.00 |
| Total | 15,734,698.73 | 1,753,674,697.00 |
49. Investment income
In RMB Yuan
| Item | Report period | Same period of last year |
| 1.Long-term equity investment income under equity method | 250,708,951.37 | -528,282,156.89 |
| 2.Investment income from disposal of long-term equity investments | 3,514,298,597.59 | |
| 3.Investment income obtained during the period of holding trading financial assets | 7,903,143.08 | |
| 4.Others | 77,163,513.71 | 6,884,080.21 |
| Total | 327,872,465.08 | 3,000,803,663.99 |
50. Other income
In RMB Yuan
| Item | Report period | Same period of last year (Restated) | Explain |
| Industry Support Subsidies | 106,783,041.12 | Related to income | |
| Total | 106,783,041.12 | -- |
51. Non-operating income
In RMB Yuan
| Item | Report period | Same period of last year |
| Fines and others | 40,983,845.94 | 31,178,860.44 |
| Total | 40,983,845.94 | 31,178,860.44 |
52. Non-operating expenses
In RMB Yuan
| Item | Report period | Same period of last year |
| Donation | 10,500,000.00 | 16,759,250.00 |
| Fines and late fees | 559.05 | 130,851.84 |
| Others | 3,603,043.24 | 34,461,544.29 |
| Total | 14,103,602.29 | 51,351,646.13 |
53. Income tax expenses
In RMB Yuan
| Item | Report period | Same period of last year |
| Current income tax expense | 188,574,027.41 | 26,707,074.55 |
| Deferred income tax adjustment | -129,200,581.32 | 163,224,222.09 |
| Total | 59,373,446.09 | 189,931,296.64 |
54. Notes to cash flow statement
(1) The major cash received relating to other operating activities
In RMB Yuan
| Item | Amount |
| Interest income | 287,599,749.93 |
| Government grants related to operating activities | 973,828,265.22 |
| Others | 536,655,063.79 |
| Total | 1,798,083,078.94 |
(2) The major cash paid relating to other operating activities
In RMB Yuan
| Item | Amount |
| Selling expenses | 1,705,305,653.87 |
| Administrative expenses | 833,833,985.36 |
| R&D expensess | 579,603,711.64 |
| Others | 236,785,445.40 |
| Total | 3,355,528,796.27 |
(3) The major cash received relating to other investing activities
In RMB Yuan
| Item | Amount |
| Recover the loan of Jiangling Holdings | 300,000,000.00 |
| Total | 300,000,000.00 |
(4) The major cash received relating to other financing activities
In RMB Yuan
| Item | Amount |
| Redemption of the deposit for acceptance | 312,220,372.75 |
| Total | 312,220,372.75 |
(5) The major cash paid relating to other financing activities
| Item | Amount |
| Payment of acceptance billsother | 418,351,512.95 |
| Others | 241,289.74 |
| Total | 418,592,802.69 |
55. Supplementary information of cash flow statement
(1) Supplementary information of cash flow statement
In RMB Yuan
| Supplementary information | Current Amount | Prior-period Amount |
| 1. Cash flow relating to operating activities calculated by adjusting the net profit | ||
| Net profit | 1,804,981,288.95 | 2,601,622,809.19 |
| Add: credit impairment loss | 3,486,242.35 | 18,713,783.01 |
| Add: provision for assets impairment | 195,687,107.11 | 212,828,953.71 |
| Depreciation of fixed assets, oil and gas assets, productive biological assets | 1,515,838,567.70 | 1,341,780,516.22 |
| Amortization of right-of-use assets | 12,224,609.69 | |
| Amortization of intangible assets | 545,011,292.13 | 514,642,717.04 |
| Amortization of long-term deferred expense | 2,670,879.81 | 2,725,128.43 |
| Disposal loss/(income) on fixed assets, intangible assets and others long-term assets(with “-” for gains) | -601,066,861.33 | -33,428,646.97 |
| Loss of fair value change (revenue is marked with "-") | -15,734,698.73 | -1,753,674,697.00 |
| Financial expense(with “-” for gains) | 26,372,186.29 | 20,373,153.36 |
| Investment loss(with “-” for gains) | -327,872,465.08 | -3,000,803,663.99 |
| Decrease in deferred tax assets(with “-” for gains) | -126,334,690.62 | -97,937,262.08 |
| Increase in deferred tax debts(with “-” for gains) | -2,865,890.70 | 261,161,484.17 |
| Decrease in inventory(with “-” for gains) | 1,878,025,569.26 | -664,950,981.62 |
| Decrease in operating receivables(with “-” for gains) | - 206,172,573.97 | 4,982,533,829.23 |
| Increase in operating payables(with “-” for gains) | 12,987,653,627.02 | 2,756,790,261.85 |
| Others | 6,922,680.49 | -249,790,690.95 |
| Net cash flows from operating activities | 17,698,826,870.37 | 6,912,586,693.60 |
| 2. Investment and financing activities involving no cash incomings / outgoings | ||
| 3. Movement of cash and cash equivalents | ||
| Ending balance of cash equivalents | 46,269,403,600.01 | 16,821,119,181.24 |
| Less: beginning balance of cash equivalents | 30,655,968,057.63 | 9,360,474,674.89 |
| Net increase in cash and cash equivalents | 15,613,435,542.38 | 7,460,644,506.35 |
(2) Cash and cash equivalents
In RMB Yuan
| Item | Ending balance | Beginning balance |
| I. Cash | ||
| Including: Cash on hand | 1,527.85 | 52,569.13 |
| Bank deposits that can be readily used | 46,269,402,072.16 | 30,655,915,488.50 |
| II. Ending balance of cash and cash equivalents | 46,269,403,600.01 | 30,655,968,057.63 |
VIII. The change of consolidation scope
1. Business combination not under the Same Control
□ Applicable √ Not Applicable
2. Combination under the same control
□ Applicable √ Not Applicable
3. Counter purchase
□ Applicable √ Not Applicable
4. Disposing subsidiary
Whether there is a single disposal of the subsidiary company investment that is the loss of control of the situation
□ Applicable √ Not Applicable
Whether there is a situation of the loss of control over the period of the investment and the loss of control of the subsidiary companythrough multiple transactions
□ Applicable √ Not Applicable
5. Change of consolidation scope due to other reasons
(1) Newly established subsidiary companies during the reporting period
□ Applicable √ Not Applicable
(2) Subsidiary clearing during the reporting period
□ Applicable √ Not Applicable
Subsidiary clearing during the reporting period and related circumstances:
□ Applicable √ Not Applicable
(3) Other reduced subsidiaries during the reporting period
□ Applicable √ Not Applicable
IX. Stake in other entities
1. Rights in subsidaries
The subsidiaries of the Company are as follows：
| Company name | Main operating place | Registered place | Nature of business | Registered capital (ten thousand) | Total proportion of shareholders (%) | |
| Direct | Indirect | |||||
| I. The subsidiary formed by establishment or investment | ||||||
| Hebei Changan Automobile Co., Ltd. (Note 1) | Dingzhou | Dingzhou | Manufacturing | 46,469 | - | 95.62 |
| Chongqing Changan International Automobile Sales Co., Ltd. | Chongqing | Chongqing | Sales | 1,376 | 100.00 | - |
| Chongqing Changan Vehicle Networking Technology Co., Ltd. | Chongqing | Chongqing | Lease | 8,850 | 100.00 | - |
| Chongqing Changan Special Automobile Sales Co., Ltd (Note 2) | Chongqing | Chongqing | Sales | 2,000 | 50.00 | - |
| Chongqing Changan Automobile Supporting Service Co., Ltd. | Chongqing | Chongqing | Sales | 3,000 | 99.00 | 1.00 |
| Chongqing Changan New Energy Automobile Co. Ltd. | Chongqing | Chongqing | R&D | 2,900 | 100.00 | - |
| Chongqing Changan Europe Design Academy Co., Ltd. | Turin, Italy | Turin, Italy | R&D | EUR1,738.36 | 100.00 | - |
| Changan United Kingdom R&D Center Co., Ltd. | Nottingham, United Kingdom | Nottingham, United Kingdom | R&D | GBP2,639 | 100.00 | - |
| Beijing Changan R&D Center Co., Ltd. | Beijing | Beijing | R&D | 100 | 100.00 | - |
| Changan Japan Designing Center Co.,Ltd | Habin | Habin | R&D | JPY1,000 | 100.00 | - |
| Changan United States R&D Center Co., Ltd. | Troy, United states | Troy, United states | R&D | USD154 | 100.00 | - |
| Changan Automobile Russia Co., Ltd. | Moscow, Russia | Moscow, Russia | Sales | RUB220,382 | 100.00 | - |
| Changan Brazil Holdings Limited | St. Paul, Brazil | St. Paul, Brazil | Sales | BRL100 | 100.00 | - |
| Changan Automobile Investment (Shenzhen) Co., Ltd. | Shenzhen | Shenzhen | Sales | 23,525 | 100.00 | - |
| Hangzhou Changan Yixing Technology Co., Ltd. | Hangzhou | Hangzhou | Lease | 500 | 100.00 | - |
| Hefei Changan Yixing Technology Co., Ltd. | Hefei | Hefei | Lease | 500 | 100.00 | - |
| Nanjing Changan Connected Car Technology Co., Ltd. | Nanjing | Nanjing | Lease | 500 | 100.00 | - |
Note 1: The Company owns 93.79% and 95.70% of voting shares of Nanjing Changan Automobile Co., Ltd. And Hebei ChanganAutomobile Co., Ltd. respectively, the difference between proportion of voting shares and proportion of shares held is due to thevoting right consigned from minority shareholders.Note 2: The remaining shareholders of Chongqing Changan Special Automobile Co., Ltd. made an agreement with the Company thatthe remaining shareholders are to vote in accordance with the Company. The main financial and operating policies have beencontrolled by the Company, so it is included in the scope of consolidated financial statements.Note 3: Changan Weilai New Energy Automobile Technology Co., Ltd. was renamed Avita Technology (Chongqing) Co., Ltd. inMay 2021.
As at June 30, 2021, the Group has no subsidiaries with important minority interests.
2. Transctions result in change of holdingshare proportion but no effect in control of subsidiaries
□ Applicable √ Not applicable
| Nanjing Changan New Energy Automobile Sales & Service Co., Ltd. | Nanjing | Nanjing | Sales | 5,000 | 100.00 | - |
| Fuzhou Fuqing Changan New Energy Automobile Sales & Service Co., Ltd. | Fuzhou | Fuzhou | Sales | 200 | 100.00 | - |
| Xiamen Changan New Energy Automobile Sales & Service Co., Ltd. | Xiamen | Xiamen | Sales | 200 | 100.00 | - |
| Guangzhou Changan New Energy Automobile Sales & Service Co., Ltd. | Guangzhou | Guangzhou | Sales | 400 | 100.00 | - |
| Chongqing Chehemei Technology Co., Ltd. | Chongqing | Chongqing | Sales | 1,000 | 100.00 | - |
| Chongqing Changan Kaicheng Automobile Technology Co., Ltd. | Chongqing | Chongqing | Sales | 100,000 | 83.64 | - |
| Chongqing Changan Automobile Software Technology Co., Ltd. | Chongqing | Chongqing | R&D | 9900 | 100.00 | - |
| II. The subsidiary formed by business combination not under common control | ||||||
| Nanjing Changan Automobile Co., Ltd.(Note1) | Nanjing | Nanjing | Manufacturing | 60,181 | 84.73 | - |
| Chongqing Lingyao Automobile Co., Ltd. | Chongqing | Chongqing | Manufacturing | 133,764 | 100.00 | - |
| Zhenjiang Demao Hairun Equity Investment Fund Partnership (Limited Partnership) | Zhenjiang | Zhenjiang | Financial industry | 150,001 | 100.00 | - |
| Avita Technology (Chongqing) Co., Ltd. (Note 3) | Nanjing | Nanjing | Manufacturing | 28,800 | 95.38 | - |
| III. The subsidiary formed by business combination under common control | ||||||
| Hebei Baoding Changan Bus Co., Ltd. | Dingzhou | Dingzhou | Manufacturing | 3,000 | - | 100.00 |
| Hefei Changan Automobile Co.,Ltd. | Hefei | Hefei | Manufacturing | 227,500 | 100.00 | - |
3. Stakes in joint ventures and associates
| Company name | Main operating place | Registered place | Nature of business | Registered capital (ten thousand) | Total proportion of shareholders (%) | Accounting treatment | |
| Direct | Inderect | ||||||
| I. Joint ventures | |||||||
| Changan Ford Automobile Co., Ltd. | Chongqing | Chongqing | Manufacture and sale ofautomobiles, and components | USD24,100 | 50.00 | - | Equity |
| Changan Mazda Automobile Co., Ltd. | Nanjing | Nanjing | Manufacture and sale ofautomobiles, and components | USD11,097 | 50.00 | - | Equity |
| Changan Mazda Engine Co., Ltd. (Note 1) | Nanjing | Nanjing | Manufacture and sale ofautomobiles, and components | USD20,996 | 50.00 | - | Equity |
| Jiangling Investment Co., Ltd. | Nanchang | Nanchang | Manufacture and sale ofautomobiles, and components | 100,000 | 50.00 | - | Equity |
| II. Associates | |||||||
| Chongqing Changan Kuayue Automobile Co., Ltd. | Chongqing | Chongqing | Develop, product and sale of automobile and components; import and export goods. | 6,533 | 34.30 | - | Equity |
| Chongqing Changan Kuayue Automobile Sales Co., Ltd. | Chongqing | Chongqing | Sale of Changan Kuayue’ s automobile and agricultural cars and components. Technical advisory services for automobile | 300 | 34.30 | - | Equity |
| Beijing Fang’an Taxi Co., Ltd. | Beijing | Beijing | For the car loan business | 2,698 | 22.24 | - | Equity |
| Chongqing Auto Finance Co., ltd. | Chongqing | Chongqing | Provide car loan; provide vehicle loans and operating equipment loans to car dealers, including the construction loans of exhibition hall,spare parts loans and maintenance equipment loans, etc. | 476,843 | 28.66 | - | Equity |
| Hainan Anxinxing Information Technology Co., Ltd. | Chengmai County | Chengmai County | Software and hardware technology development, technical consulting, auto parts sales | 3,000 | 30.00 | - | Equity |
| Nanjing Chelai Travel Technology Co., Ltd. | Nanjing | Nanjing | Car sales, leasing, software technology development, technical services | 10,000 | 10.00 | - | Equity |
| Hunan Guoxin Semiconductor Technology Co., Ltd. | Zhuzhou | Zhuzhou | Technology development consulting, technical services, technology transfer in the field of power semiconductors | 50,000 | 25.00 | - | Equity |
| Beijing Wutong Chelian | Beijing | Beijing | Technology development, | 39,799 | - | 49.00 | Equity |
X. Risks associated with financial instruments
1. Classification of financial instruments
As at balance sheet day, the book values of financial instruments are as follows:
Financial assets
In RMB Yuan
| 2021.6.30 | Financial Assets Measured at Fair Value and Their Changes Included in Current Profits and Losses | Measured at amortized cost | Measured at fair value and its changes are included in other comprehensive income |
| Cash | 47,721,342,242.91 | ||
| Transactional financial assets | 195,349,598.73 | ||
| Notes receivable | 28,778,252,297.19 | ||
| Accounts receivable | 1,628,018,973.81 | ||
| Other receivables | 1,590,660,654.32 | ||
| Other current assets | 86,887.50 | ||
| Investment in other equity | 691,990,000.00 |
| Technology Co., Ltd. | technical consulting, technical services, technology transfer | ||||||
| Anhe (Chongqing) Equity Investment Fund Management Co., Ltd. | Chongqing | Chongqing | Equity investment management | 1,000 | - | 25.00 | Equity |
| Hangzhou Chelizi Intelligent Technology Co., Ltd. | Hangzhou | Hangzhou | Car travel service | 630 | - | 20.00 | Equity |
| Pakistan Master Motors Co., Ltd. | Lahore, Pakistan | Lahore, Pakistan | Manufacture and sale ofautomobiles, and components | PKR75,000 | 30.00 | Equity | |
| Jiangling Holding Co., Ltd. | Nanchang | Nanchang | Manufacture and sale ofautomobiles, and components | 200,000 | 25.00 | - | Equity |
| Nanjing Leading Equity Investment Partnership | Nanjing | Nanjing | Equity investment and related services | 976,000 | 16.39 | - | Equity |
| Nanjing Leading Equity Investment Management Co., Ltd. | Nanjing | Nanjing | Private equity investment fund management and related services | 1,000 | 15.00 | - | Equity |
| Chongqing Changan New Energy Automobile Technology Co., Ltd. | Chongqing | Chongqing | Sales | 20,223 | 48.95 | - | Equity |
| Zhongqi Chuangzhi Technology Co., Ltd. | Nanjing | Nanjing | R&D | 1,600,000 | 3.125 | - | Equity |
| instruments | |||
| Total | 195,349,598.73 | 79,718,361,055.73 | 691,990,000.00 |
In RMB Yuan
| 2020.12.31 | Financial assets measured at fair value and whose changes are included in the current profit and loss (standard requirements) | Financial assets measured at amortized cost | Financial assets measured at fair value with changes included in other comprehensive income (designated) |
| Cash | - | 32,001,775,600.07 | - |
| Transactional financial assets | 204,254,400.00 | - | - |
| Notes receivable | - | 28,371,541,054.75 | - |
| Accounts receivable | - | 2,141,197,139.45 | - |
| Other receivables | - | 723,919,037.36 | - |
| Other current assets | - | 317,063,888.99 | - |
| Investment in other equity instruments | - | - | 691,990,000.00 |
| Total | 204,254,400.00 | 63,555,496,720.62 | 691,990,000.00 |
Financial liabilities
In RMB Yuan
| 2021.6.30 | 2020.12.31 | |
| Short-term loans | 552,000,000.00 | 578,000,000.00 |
| Notes payable | 27,186,257,508.96 | 17,574,014,553.46 |
| Accounts payable | 24,517,099,039.98 | 23,118,793,794.42 |
| Other payables | 3,643,263,561.28 | 4,475,215,625.98 |
| Long-term loan | 654,300,000.00 | 955,300,000.00 |
| Non current liabilities due within one year | 328,905,578.01 | 100,000,000.00 |
| Total | 56,881,825,688.23 | 46,801,323,973.86 |
2. Transfer of financial assets
The transferred financial assets that entirely derecognized but continuing involved
As at June 30, 2021, the book value of the bank acceptance bill that the Group has endorsed to the supplier to settle accounts payableis RMB 949,918,527.77 (December 31, 2020: RMB 5,093,467,680.36). On June 30, 2021, its maturity date is 1 to 6 months.
According to the relevant provisions of the "Negotiable Instruments Law", if the accepting bank refuses to pay, its holder has theright to recourse against the Group ("continued involvement "). The Group believes that the Group has transferred almost all of itsrisks and rewards, and therefore, terminates the confirmation of the book value of the settlement accounts payable and the relatedaccounts payable. The maximum loss and undiscounted cash flow of continuing involvement and repurchase are equal to its bookvalue. The Group believes that continued involvement in fair value is not significant.
In the first half of 2021, the Group did not recognize gains or losses on its transfer date. The Group shall continue to be involved inthe proceeds or expenses of the year in which the recognition of financial assets has been terminated and the cumulative recognitionthereof. Endorsements occur roughly and evenly during the year.
3. Risks of financial instruments
The Group faces risks of various financial instruments in its daily activities, mainly including credit risk, liquidity risk and marketrisk (including exchange rate risk, interest rate risk and price risk). The main financial instruments of the Group include monetaryfunds, equity investments, loans, bills receivable, accounts receivable, bills payable, accounts payable, etc. The risks associated withthese financial instruments and the risk management strategies adopted by the Group to reduce these risks are described below.
The Group has formulated risk management policies to identify and analyze the risks faced by the Group, set appropriate riskacceptance levels and design corresponding internal control procedures to monitor the Group's risk levels. The Group willperiodically re-examine these risk management policies and related internal control systems to adapt to changes in market conditionsor the Group ’s operating activities. The internal audit department also regularly and irregularly checks whether the implementationof the internal control system complies with the risk management policy.
Credit risk
The Group only deals with recognized and reputable customers. In accordance with the Group's policy, a credit review is required forall customers who require credit transactions. In addition, the Group continuously monitors the balance of accounts receivable toensure that the Group does not face significant bad debt risk. For transactions that are not settled with the relevant business unit'sbookkeeping standard currency, the Group does not provide credit transaction conditions unless specifically approved by the Group'scredit control department.
Since the counterparties of monetary funds and bank acceptance receivables are reputable banks with higher credit ratings, thesefinancial instruments have lower credit risk.
With respect to credit risk arising from the other financial assets of the Group, which comprise accounts receivable, other receivables,dividend receivables and certain derivatives financial instruments, the Group’s exposure to credit risk arising from default of thecounterparty, with a maximum exposure equal to the carrying amount of these instruments, listed as book value of financial assets inconsolidated financial statements. In 2020, there was no credit risk arising from financial guarantee.
Since the Group only trades with approved and reputable customers, there is no need for collateral. Credit risk is centralized andmanaged according to customers. As at the balance sheet date, the Group has a specific concentration of credit risks. 56.09% of theGroup's accounts receivable (December 31, 2020:61.26%) originated from the top five customers with the balance of accountsreceivable. The Group does not hold any collateral or other credit enhancements for the balance of accounts receivable.
Judgment criteria for significant increase in credit risk
The group evaluates on each balance sheet date whether the credit risk of the relevant financial instruments has increasedsignificantly since the initial recognition. In determining whether credit risk has increased significantly since the initial recognition,the group considers that reasonable and evidence-based information can be obtained without unnecessary additional cost or effort,including qualitative and quantitative analysis based on the group's historical data, external credit risk ratings and forward-lookinginformation. Based on a single financial instrument or a portfolio of financial instruments with similar credit risk characteristics, thegroup compares the default risk of financial instruments on the balance sheet date with the default risk on the initial confirmationdate to determine the change of default risk of financial instruments during their expected duration.
When one or more of the following quantitative or qualitative criteria are triggered, the group believes that the credit risk of financialinstruments has significantly increased:
? the quantitative criterion is that the default probability of the remaining duration on the report date increases by more than a certainpercentage compared with the initial confirmation;? qualitative criteria mainly include material adverse changes in the operating or financial situation of the debtor, early warningcustomer list, etc.;
Definition of assets that have incurred credit impairmentIn order to determine whether credit impairment occurs, the group adopts a definition standard consistent with the internal credit riskmanagement objectives for relevant financial instruments, and considers both quantitative and qualitative indicators. The groupmainly takes the following factors into consideration when evaluating whether the debtor has credit impairment:
? significant financial difficulties of the issuer or debtor;? debtor breaches the contract, such as default or overdue payment of interest or principal;? the creditor gives the debtor concessions that the debtor would not have made under any other circumstances for economic orcontractual reasons related to the debtor's financial difficulties;? the debtor is likely to go bankrupt or undergo other financial restructuring;? the financial difficulties of the issuer or debtor result in the disappearance of an active market for the financial asset;? purchase or source a financial asset at a substantial discount that reflects the fact that a credit loss has occurred.
The credit impairment of financial assets may be caused by the joint action of multiple events, but not by events that can be identifiedseparately.
A parameter for measuring expected credit losses
According to whether the credit risk has significantly increased and whether the credit impairment has occurred, the group measuresthe impairment provision for different assets with the expected credit loss of 12 months or the whole duration respectively. The keyparameters of expected credit loss measurement include default probability, default loss rate and default risk exposure. The grouptakes into account the quantitative analysis and forward-looking information of historical statistical data (such as counterparty rating,guarantee method and types of collateral, repayment method, etc.) to establish default probability, default loss rate and default riskexposure models.
The relevant definition is as follows:
? probability of default is the probability that the debtor will not be able to meet its repayment obligations in the next 12 months orthroughout the remaining period. The default probability of the group is adjusted based on the results of the historical credit lossmodel and forward-looking information is added to reflect the default probability of the debtor in the current macroeconomicenvironment.? the default loss rate refers to the group's expectation of the extent of losses from default risk exposure. Default loss rates also varydepending on the type of counterparty, the type and priority of recourse, and the collateral. The default loss rate is the percentage ofthe risk exposure loss at the time of default, calculated on the basis of the next 12 months or the whole duration;? default exposure is the amount that should be paid to the group at the time of default over the next 12 months or throughout theremaining duration.
The assessment of a significant increase in credit risk and the calculation of expected credit losses involve forward-lookinginformation. Through the analysis of historical data, the group identifies the key economic indicators that affect the credit risks andexpected credit losses of each business type.
Liquidity risk
The Group adopts cycle liquidity planning instrument to manage capital shortage risks. The instrument takes into consideration thematurity date of financial instruments plus estimated cash flow from the Group’s operations.
The Group’s objective is to maintain a balance between continuity of funding and flexibility and sufficient cash to support operatingcapital through financing functions by the use of bank loans, debentures, etc.
Market risk
Interest rate risk
The Group’s revenue and operating cash flows are seldomly influenced by the interest fluctuation. As at 30 June 2021, the Group’sloans are bearing fixed interest rate and the Group is not hedging the risk currently.
Foreign currency risk
The Group’s exposures to fluctuation in foreign currency exchange rate mainly arise from operating activities where transactions aresettled in currencies other than the units' functional currency and net investment to offshore subsidiary.
In 30 June, 2021, the Group only has limited transactional currency exposures of its total revenue that is valued in currencies otherthan the units' functional currency. Since most of the Group’s businesses are operated in China mainland, the estimated influence offluctuation of foreign currency is insignificant; therefore, the Group hasn’t carried out large amount of hedging to reduce the risk.
Equity instruments investment price risk
The Group is exposed to equity price risk arising from individual equity investments classified as transactional financial investments(Note VII 2) as at 30 June 2021. The Group’s listed investments are listed on the Shanghai and Shenzhen stock exchanges and valuedat quoted market prices at the end of the reporting period. The following table demonstrates the sensitivity to every 5% change (basedon the carrying amount as at the end of reporting period) in the Group’s net profit and fair value of the equity investments, with allother variables held constant, based on their carrying amounts at the end of the reporting period.
| Carrying amount of equity investments | Change in fair value | Increase/(decrease) in equity | |
| 2021.6.30 | |||
| Shanghai- Transactional financial assets | 163,778,100.00 | 5% | 6,960,569.25 |
| Shanghai- Transactional financial assets | 163,778,100.00 | -5% | (6,960,569.25) |
| 2020.12.31 | |||
| Shanghai- Available for sale | 180,929,400.00 | 5% | 7,689,499.50 |
| Shanghai- Available for sale | 180,929,400.00 | -5% | (7,689,499.50) |
4. Capital management
The main goal of the Group’s capital management is to ensure that the ability of continuous operation, and maintain a healthy capitalratios in order to support business development, and to maximize shareholder value.
The Group manages the capital structure and adjusts it with the change of economy trend and the risk feature of the assets. Tomaintain or adjust the capital structure, the Group can rectify dividend distribution, return capital to shareholders or issue new shares.The Group is not subject to external mandatory capital requirements constraints. The goal, principle and procedure of capitalmanagement stay the same in 2020 and 30, June 2021.
The Group’s leverage ratio on the balance sheet date is as follows:
30 June 2021 31 December 2020
Leverage ratio 58.38% 54.78%
XI. Disclosure of fair value
1. Assets and liabilities measured at fair value
June 30, 2021
In RMB Yuan
| Input measured at fair value | ||||
| Quoted price in active market (The first level) | Important and observable input (The second level) | Important but unobservable input (The third level) | Total | |
| Trading financial assets - equity instrument investment | 163,778,100.00 | 163,778,100.00 | ||
| Trading financial assets - derivative financial assets | 31,571,498.73 | 31,571,498.73 | ||
| Other equity instruments | 691,990,000.00 | 691,990,000.00 | ||
| Total | 163,778,100.00 | 31,571,498.73 | 691,990,000.00 | 887,339,598.73 |
December 31, 2020
In RMB Yuan
| Input measured at fair value | ||||
| Quoted price in active market (The first level) | Important and observable input (The second level) | Important but unobservable input (The third level) | Total | |
| Trading financial assets - equity instrument investment | 180,929,400.00 | 180,929,400.00 | ||
| Trading financial assets - derivative financial assets | 23,325,000.00 | 23,325,000.00 | ||
| Other equity instruments | 691,990,000.00 | 691,990,000.00 | ||
| Total | 180,929,400.00 | 23,325,000.00 | 691,990,000.00 | 896,244,400.00 |
2. Fair value valuation
The management has assessed the monetary funds, notes receivable and accounts receivable, other receivables, short-term loans,other payables, bills payable and accounts payable. The fair value is equal to the book value because the remaining period is not long.
The fair value of financial assets and financial liabilities is determined by the amount of voluntarily exchange of assets or debtsettlement between the parties to the transaction in a fair transaction, rather than the amount of money that is forced to sell orliquidate.
Long-term borrowings and long-term borrowings due within one year are determined using the discounted future cash flow methodto determine the fair value, using the market yields of other financial instruments with similar contractual terms, credit risk andremaining maturity as the discount rate. On June 30, 2021 the risk assessment of long-term borrowings and long-term borrowingsdue within one year was not significant.
The equity instruments listed by the Company include unrestricted ordinary shares and restricted shares. The unrestricted ordinaryshares investment determines the fair value by market quotation, and the restricted stock investment uses the discounted valuationmodel to estimate the fair value. We believe that the fair value and its changes estimated by valuation techniques are reasonable andare also the most appropriate value on the balance sheet date.
XII. Related parties and related party transactions
1. Parent company of the Company
| Parent company | Place of registration | Registered capital | Nature of the business | Proportion of shares in the Company (%) | Proportion of voting rights in the company (%) |
| China Changan Automobile Group Co ,Ltd. | Beijing | 6,092,273,400.00 | Manufacture and sale of automobiles, engine, and components | 18.78% | 18.78% |
The Final controlling party is China South Industries Group corporation
2. Subsidiaries
See subsidiaries in IX（
）. Stake in other entities.
3. Joint ventures and associates
See Joint ventures and associates in IX（
）Stake in other entities.
4. Other related parties
| Related parties | Relationship |
| Anhui Wanyou Automobile Sales Service Co., Ltd | Controlled by the same ultimate holding company |
| Bazhong Wanyou Automobile Sales Service Co., Ltd | Controlled by the same ultimate holding company |
| Chengdu Huachuan electric Decoration Co., Ltd | Controlled by the same ultimate holding company |
| Chengdu Ningjiang Zhaohe Auto Parts Co., Ltd | Controlled by the same ultimate holding company |
| Chengdu Wanyou Trading Co., Ltd | Controlled by the same ultimate holding company |
| Chengdu Wanyou Automobile Sales Service Co., Ltd | Controlled by the same ultimate holding company |
| Chengdu Wanyou Automobile Trade Service Co., Ltd | Controlled by the same ultimate holding company |
| Chengdu Wanyou Xiangyu Automobile Sales Service Co., Ltd | Controlled by the same ultimate holding company |
| Guizhou Wanyou Automobile Sales Service Co., Ltd | Controlled by the same ultimate holding company |
| Harbin Dong'an Automobile Power Co., Ltd | Controlled by the same ultimate holding company |
| Harbin Dong'an Automobile Engine Manufacturing Co., Ltd | Controlled by the same ultimate holding company |
| Hafei Automobile Co., Ltd | Controlled by the same ultimate holding company |
| Hunan Tianyan Machinery Co., Ltd | Controlled by the same ultimate holding company |
| Jiangsu Wanyou Automobile Sales Service Co., Ltd | Controlled by the same ultimate holding company |
| Luzhou Wanyou Automobile Service Co., Ltd | Controlled by the same ultimate holding company |
| Southern Faurecia Auto Parts Co., Ltd | Controlled by the same ultimate holding company |
| Related parties | Relationship |
| Southern Trina Chassis System Co., Ltd | Controlled by the same ultimate holding company |
| Nanfang Yingte Air Conditioning Co., Ltd | Controlled by the same ultimate holding company |
| Panzhihua Wanyou Automobile Sales Service Co., Ltd | Controlled by the same ultimate holding company |
| Sichuan Jian'an Industry Co., Ltd | Controlled by the same ultimate holding company |
| Sichuan Ningjiang Shanchuan Machinery Co., Ltd | Controlled by the same ultimate holding company |
| Wanyou Automobile Investment Co., Ltd | Controlled by the same ultimate holding company |
| Ya'an Wanyou Automobile Sales Service Co., Ltd | Controlled by the same ultimate holding company |
| Yunnan Wanyou Automobile Sales Service Co., Ltd | Controlled by the same ultimate holding company |
| Yunnan Xiangyu Automobile Sales Service Co., Ltd | Controlled by the same ultimate holding company |
| China Ordnance Equipment Group Finance Leasing Co., Ltd | Controlled by the same ultimate holding company |
| China Changan Automobile Group Hefei Investment Co., Ltd | Controlled by the same ultimate holding company |
| China Changan Automobile Group Tianjin Sales Co., Ltd | Controlled by the same ultimate holding company |
| Chongqing Anfu Automobile Marketing Co., Ltd | Controlled by the same ultimate holding company |
| Chongqing Qingshan Industry Co., Ltd | Controlled by the same ultimate holding company |
| Chongqing Wanyou Ducheng Automobile Sales Service Co., Ltd | Controlled by the same ultimate holding company |
| Chongqing Wanyou Xingjian Automobile Sales Service Co., Ltd | Controlled by the same ultimate holding company |
| Chongqing Wanyou Economic Development Co., Ltd | Controlled by the same ultimate holding company |
| Chongqing Wanyou zunda Automobile Sales Service Co., Ltd | Controlled by the same ultimate holding company |
| Chongqing Chang'an Minsheng Boyu Transportation Co., Ltd | Controlled by the same ultimate holding company |
| Chongqing Chang'an Minsheng Logistics Co., Ltd | Controlled by the same ultimate holding company |
| Beijing Beiji Electromechanical Industry Co., Ltd | Controlled by the same ultimate holding company |
| Ordnance Equipment Group Finance Co., Ltd | Controlled by the same ultimate holding company |
| Chengdu Guangming Tianzhong Environmental Protection Technology Co., Ltd | Controlled by the same ultimate holding company |
| Chengdu Jialing Huaxi Optical Precision Machinery Co., Ltd | Controlled by the same ultimate holding company |
| Chengdu Lingchuan vehicle fuel tank Co., Ltd | Controlled by the same ultimate holding company |
| Chengdu Lingchuan special industry Co., Ltd | Controlled by the same ultimate holding company |
| Chengdu Wanyou filter Co., Ltd | Controlled by the same ultimate holding company |
| Hubei Huazhong Marelli Automobile Lighting Co., Ltd | Controlled by the same ultimate holding company |
| Hubei Xiaogan Huazhong lamp Co., Ltd | Controlled by the same ultimate holding company |
| Yunnan Xiyi Industry Co., Ltd | Controlled by the same ultimate holding company |
| China Ordnance Equipment Group commercial factoring Co., Ltd | Controlled by the same ultimate holding company |
| Chongqing Dajiang Jiexin Forging Co., Ltd | Controlled by the same ultimate holding company |
| Related parties | Relationship |
| Chongqing Dajiang Yuqiang plastic products Co., Ltd | Controlled by the same ultimate holding company |
| Chongqing Jialing Yimin special equipment Co., Ltd | Controlled by the same ultimate holding company |
| Chongqing Jianshe vehicle air conditioner Co., Ltd | Controlled by the same ultimate holding company |
| Chongqing construction industry (Group) Co., Ltd | Controlled by the same ultimate holding company |
| Chongqing Jianshe electromechanical Co., Ltd | Controlled by the same ultimate holding company |
| Chongqing Jianshe Tongda Industrial Co., Ltd | Controlled by the same ultimate holding company |
| Chongqing naishite Steering System Co., Ltd | Controlled by the same ultimate holding company |
| Chongqing Shangshang Auto Parts Co., Ltd | Controlled by the same ultimate holding company |
| Chongqing Qingshan transmission Sales Co., Ltd | Controlled by the same ultimate holding company |
| Chongqing Xiyi automobile connecting rod Co., Ltd | Controlled by the same ultimate holding company |
| Chongqing Yihong engineering plastic products Co., Ltd | Controlled by the same ultimate holding company |
| Chongqing Changrong Machinery Co., Ltd | Controlled by the same ultimate holding company |
| Chongqing Chang'an industry (Group) Co., Ltd | Controlled by the same ultimate holding company |
| Chongqing Chang'an Property Management Co., Ltd | Controlled by the same ultimate holding company |
| Chongqing Chang'an Construction Engineering Co., Ltd | Controlled by the same ultimate holding company |
| Chongqing changfengjiquan Machinery Co., Ltd | Controlled by the same ultimate holding company |
| Chongqing Dajiang Xinda Vehicle Co., Ltd | Controlled by the same ultimate holding company |
| Chongqing Automobile Air Conditioner Co., Ltd | Controlled by the same ultimate holding company |
| China Ordnance Equipment Group Information Center Co., Ltd | Controlled by the same ultimate holding company |
| Harbin Botong Auto Parts Manufacturing Co., Ltd | Controlled by the same ultimate holding company |
| Chongqing Wanyou Automobile Sales Service Co., Ltd | Controlled by the same ultimate holding company |
| Chongqing Chang'an Real Estate Development Co., Ltd | Controlled by the same ultimate holding company |
| Hunan Tianyan Machinery Co., Ltd | Controlled by the same ultimate holding company |
| Chongqing Qingshan transmission branch of China Chang'an Automobile Group Co., Ltd | Controlled by the same ultimate holding company |
| Chongqing Chang'an Intelligent Industrial Technology Service Co., Ltd | Controlled by the same ultimate holding company |
| Beijing zhongbing insurance brokerage Co., Ltd | Participated by the Ultimate holding company |
| Lear Chang'an (Chongqing) Automotive System Co., Ltd | Participated by the Ultimate holding company |
| United Automotive Electronics (Chongqing) Co., Ltd | Participated by the Ultimate holding company |
| Nattiefu transmission system (Chongqing) Co., Ltd | Participated by the Ultimate holding company |
| Tiannak Lingchuan (Chongqing) exhaust system Co., Ltd | Participated by the Ultimate holding company |
| Changan Laisi (Chongqing) robot intelligent equipment Co., Ltd | Participated by the Ultimate holding company |
| Chongqing Dajiang Dongyang plastic products Co., Ltd | Participated by the Ultimate holding company |
| Related parties | Relationship |
| Chongqing Dajiang National Precision Machinery Manufacturing Co., Ltd | Participated by the Ultimate holding company |
| Chongqing Dajiang Yapu Auto Parts Co., Ltd | Participated by the Ultimate holding company |
| Chongqing Jianshe han'ang automobile thermal management system Co., Ltd | Participated by the Ultimate holding company |
| Chongqing Lingchuan auto parts manufacturing technology Co., Ltd | Participated by the Ultimate holding company |
| Hangzhou Lingxing Yuexiang Auto Service Co.,Ltd. | Companies in which the company participates |
| Chongqing Lingxing Yuexiang Auto Service Co.,Ltd. | Companies in which the company participates |
| Nanjing Lingxing Yuexiang Auto Service Co.,Ltd. | Companies in which the company participates |
| Nanjing Lingxing Technology Co., Ltd. | Companies in which the company participates |
5. Related-party transaction
(1) Goods purchased and services received
In RMB Yuan
| Related parties | Nature of the transaction | Current amount | Approved transaction amount | Whether it exceeds the transaction amount | Prior-period amount |
| Changan Ford Automobile Co., Ltd. | Procurement of parts | 186,186.55 | 927,979.42 | no | 4,825,291.25 |
| Jiangling Holdings Co., Ltd. | Accept labor | 737,706.14 | - | Yes | - |
| Changan Auto Finance Co., Ltd. | Accept labor | 8,153,781.57 | - | Yes | - |
| Chongqing Changan New Energy Automobile Technology Co., Ltd. | Purchasing parts and accepting labor services | 82,033,905.11 | 2,399,850,764.74 | no | 292,316,059.70 |
| Beijing Wutong Auto Union Technology Co., Ltd. | Procurement of parts | 38,062,628.50 | 147,613,717.79 | no | - |
| China Changan Automobile Group Co., Ltd. | Accept labor | 60,000.00 | 144,000.00 | no | - |
| Anhui Wanyou Automobile Sales Service Co., Ltd. | Accept labor | 626,024.86 | - | Yes | - |
| Bazhong Wanyou Automobile Sales Service Co., Ltd. | Accept labor | 73,330.36 | 478,580.09 | no | 41,138.48 |
| Chengdu Huachuan Denso Co., Ltd. | Procurement of parts | 227,227,857.41 | 502,466,557.95 | no | 196,376,880.72 |
| Chengdu Ningjiang Showa Auto Parts Co., Ltd. | Procurement of parts | 39,951,396.48 | 108,331,759.70 | no | 43,467,720.96 |
| Chengdu Wanyou Trading Co., Ltd. | Accept labor | 12,164.16 | 27,077.76 | no | 10,555.36 |
| Chengdu Wanyou Automobile | Accept labor | 3,584,234.21 | 1,341,241.20 | Yes | 411,726.27 |
| Related parties | Nature of the transaction | Current amount | Approved transaction amount | Whether it exceeds the transaction amount | Prior-period amount |
| Trading Service Co., Ltd. | |||||
| Chengdu Wanyou Xiangyu Automobile Sales Service Co., Ltd. | Accept labor | 5,262,969.51 | 6,703,371.11 | no | 426,011.37 |
| Guizhou Wanyou Automobile Sales Service Co., Ltd | Receiving labor services | 6,240,583.45 | 6,858,415.10 | no | 655,606.26 |
| Harbin Dong'an Automobile Power Co., Ltd | Purchase parts and accept labor services | 417,231,892.67 | 1,241,851,454.36 | no | 451,467,256.21 |
| Harbin Dong'an Automobile Engine Manufacturing Co., Ltd | Purchase parts and accept labor services | 855,901,689.16 | 1,785,311,733.08 | no | 417,266,451.54 |
| Hunan Tianyan Machinery Co., Ltd | Purchase parts | 52,452,744.77 | 147,364,410.44 | no | - |
| Jiangsu Wanyou Automobile Sales Service Co., Ltd | Receiving labor services | 651,038.61 | - | yes | - |
| Luzhou Wanyou Automobile Service Co., Ltd | Receiving labor services | 380,083.72 | 399,270.46 | no | 84,600.36 |
| Southern Faurecia Auto Parts Co., Ltd | Purchase parts | 280,222,308.44 | 644,078,017.73 | no | 200,998,771.72 |
| Southern Trina Chassis System Co., Ltd | Purchase parts | 486,779,984.60 | 1,094,768,445.52 | no | 307,409,807.58 |
| Nanfang Yingte Air Conditioning Co., Ltd | Purchase parts | 200,511,859.90 | 574,223,645.64 | no | 173,331,986.97 |
| Panzhihua Wanyou Automobile Sales Service Co., Ltd | Receiving labor services | 263,159.87 | 385,838.81 | no | 90,562.92 |
| Sichuan Jian'an Industry Co., Ltd | Purchase parts and accept labor services | 483,719,852.19 | 988,075,762.67 | no | 300,829,143.28 |
| Sichuan Ningjiang Shanchuan Machinery Co., Ltd | Purchase parts | 171,000,224.81 | 293,408,089.81 | no | 97,803,118.73 |
| Ya'an Wanyou Automobile Sales Service Co., Ltd | Receiving labor services | 908,456.37 | 1,499,709.94 | no | 112,581.31 |
| Yunnan Wanyou Automobile Sales Service Co., Ltd | Receiving labor services | 10,743,446.13 | 6,262,106.30 | yes | 780,899.66 |
| Yunnan Xiangyu Automobile Sales Service Co., Ltd | Receiving labor services | 132,323.01 | 279,630.10 | no | 79,915.55 |
| China Changan Automobile Group Hefei Investment Co., Ltd | Receiving labor services | 951,991.17 | 3,053,118.54 | no | - |
| Related parties | Nature of the transaction | Current amount | Approved transaction amount | Whether it exceeds the transaction amount | Prior-period amount |
| China Changan Automobile Group Tianjin Sales Co., Ltd | Receiving labor services | 111,409.95 | 108,982.12 | yes | 6,413.27 |
| Chongqing Qingshan Industry Co., Ltd | Purchase parts | 2,700,637,434.06 | 7,681,122,851.57 | no | 1,091,053,146.70 |
| Chongqing Wanyou Ducheng Automobile Sales Service Co., Ltd | Receiving labor services | 1,721,447.53 | 2,669,006.00 | no | 274,639.05 |
| Chongqing Wanyou Xingjian Automobile Sales Service Co., Ltd | Receiving labor services | 1,092,633.98 | 2,179,485.87 | no | 160,585.36 |
| Chongqing Wanyou Economic Development Co., Ltd | Purchase parts and accept labor services | 369,796,951.53 | 1,453,044,496.47 | no | 571,494,801.82 |
| Chongqing Chang'an Minsheng Logistics Co., Ltd | Receiving labor services | 1,388,787,441.14 | 3,331,269,090.79 | no | 865,998,486.41 |
| Beijing Beiji Electromechanical Industry Co., Ltd | Purchase parts | 2,086.86 | 59,716.13 | no | 262,158.45 |
| Chengdu Jialing Huaxi Optical Precision Machinery Co., Ltd | Purchase parts | 6,216,741.79 | 16,967,785.97 | no | 6,983,371.89 |
| Chengdu Lingchuan vehicle fuel tank Co., Ltd | Purchase parts | 17,816,531.05 | 23,366,990.69 | no | 4,856,159.30 |
| Chengdu Wanyou filter Co., Ltd | Purchase parts | 84,479,587.54 | 175,733,820.97 | no | 47,326,318.61 |
| Hubei Huazhong Marelli Automobile Lighting Co., Ltd | Purchase parts | 465,100,075.04 | 1,126,272,042.36 | no | 379,667,416.38 |
| Hubei Xiaogan Huazhong lamp Co., Ltd | Purchase parts | 61,893,517.73 | 125,580,259.51 | no | 38,549,124.98 |
| Yunnan Xiyi Industry Co., Ltd | Purchase parts | 59,269,771.21 | 128,715,201.65 | no | 31,247,072.00 |
| Chongqing Dajiang Jiexin Forging Co., Ltd | Purchase parts | 3,022,294.47 | 6,787,819.45 | no | 1,330,537.16 |
| Chongqing Dajiang Yuqiang plastic products Co., Ltd | Purchase parts | 88,514,947.10 | 225,185,238.08 | no | 60,582,775.09 |
| Chongqing Jianshe vehicle air conditioner Co., Ltd | Purchase parts | 105,174,591.95 | 213,479,120.66 | no | 50,801,423.79 |
| Chongqing construction industry (Group) Co., Ltd | Purchase parts | 780,297.42 | - | yes | - |
| Chongqing Jianshe Tongda | Purchase parts | 19,335,699.51 | 51,931,758.76 | no | 15,227,209.83 |
| Related parties | Nature of the transaction | Current amount | Approved transaction amount | Whether it exceeds the transaction amount | Prior-period amount |
| Industrial Co., Ltd | |||||
| Chongqing naishite Steering System Co., Ltd | Purchase parts | 378,981,317.38 | 1,066,811,652.49 | no | 303,123,612.34 |
| Chongqing Shangshang Auto Parts Co., Ltd | Purchase parts | 51,123,910.13 | 72,340,990.16 | no | 18,227,944.17 |
| Chongqing Qingshan transmission Sales Co., Ltd | Purchase parts | 10,226,693.15 | 14,676,995.45 | no | 3,951,626.52 |
| Chongqing Yihong engineering plastic products Co., Ltd | Purchase parts | 8,668,811.99 | 8,199,641.64 | yes | 1,785,587.35 |
| Chongqing Changrong Machinery Co., Ltd | Purchase parts | 108,378,855.15 | 245,547,746.51 | no | 68,484,512.99 |
| Chongqing Chang'an industry (Group) Co., Ltd | Receiving labor services | 4,811,062.11 | 12,102,747.55 | no | 2,646,670.74 |
| Chongqing Chang'an Property Management Co., Ltd | Receiving labor services | 1,911,249.38 | 4,832,804.57 | no | 2,933,009.46 |
| Beijing zhongbing insurance brokerage Co., Ltd | Receiving labor services | 5,554.42 | - | yes | - |
| Lear Chang'an (Chongqing) Automotive System Co., Ltd | Purchase parts | 297,535,098.14 | 493,898,477.76 | no | - |
| United Automotive Electronics (Chongqing) Co., Ltd | Purchase parts and accept labor services | 237,298,829.56 | 392,609,121.15 | no | - |
| Nattiefu transmission system (Chongqing) Co., Ltd | Purchase parts | 192,065,903.94 | 545,323,644.38 | no | - |
| Tiannak Lingchuan (Chongqing) exhaust system Co., Ltd | Purchase parts | 29,000,980.23 | 82,294,567.39 | no | - |
| Changan Laisi (Chongqing) robot intelligent equipment Co., Ltd | Purchase parts | 601,568.93 | - | yes | - |
| Chongqing Dajiang Dongyang plastic products Co., Ltd | Purchase parts | 4,831,358.42 | 12,651,598.49 | no | - |
| Chongqing Dajiang National Precision Machinery Manufacturing Co., Ltd | Purchase parts | 135,836,367.95 | 351,149,247.22 | no | - |
| Chongqing Dajiang Yapu Auto Parts Co., Ltd | Purchase parts | 176,074,670.02 | 390,144,450.41 | no | - |
| Related parties | Nature of the transaction | Current amount | Approved transaction amount | Whether it exceeds the transaction amount | Prior-period amount |
| Chongqing Jianshe han'ang automobile thermal management system Co., Ltd | Purchase parts | 117,174,891.64 | 245,765,891.44 | no | - |
| Chongqing Lingchuan auto parts manufacturing technology Co., Ltd | Purchase parts | 61,042,625.94 | 106,376,934.96 | no | - |
| Chongqing Anfu Automobile Marketing Co., Ltd | Purchase parts | - | - | no | 43,818.58 |
| Chongqing Xiyi automobile connecting rod Co., Ltd | Purchase parts | - | - | no | - 1,571.72 |
| Chongqing changfengjiquan Machinery Co., Ltd | Purchase parts | - | 17,055.52 | no | 39,562.52 |
| Hangzhou chelizi Intelligent Technology Co., Ltd | Purchase parts | - | 59,723.88 | no | 32,858.40 |
| Chengdu Lingchuan special industry Co., Ltd | Purchase parts | - | 120,274.55 | no | - |
| Chongqing Chang'an Intelligent Industrial Technology Service Co., Ltd | Receiving labor services | - | 764,520.00 | no | - |
| Total： | 10,563,387,032.07 | 28,565,866,450.83 | - | 6,055,875,357.64 | |
The price of the Group’s purchase from related parties is based on contracts agreed by both parties.
(2) Goods sold and services offered
In RMB Yuan
| Related parties | Nature of the transaction | Current amount | Prior-period Amount |
| Changan Ford Motor Co., Ltd | Sales of materials and parts | 1,855,571.93 | 743,941.88 |
| Chang'an Mazda Automobile Co., Ltd | Selling parts | - | 4,036,655.18 |
| Chang'an Auto Finance Co., Ltd | Financial service fee | 235,922,452.68 | - |
| Hainan anxinxing Information Technology Co., Ltd | Sales channel usage fee | 180,405.38 | - |
| Chongqing Chang'an Kuayue Vehicle Co., Ltd | Engine sales and test fees | 25,113,180.83 | 137,603.78 |
| Chongqing Chang'an New Energy Vehicle Technology Co., Ltd | Sales of complete vehicles and parts | 1,507,513,718.25 | 972,051,413.45 |
| Anhui Wanyou Automobile Sales Service Co., Ltd | Sales of complete vehicles and parts | 94,893,670.51 | - |
| Related parties | Nature of the transaction | Current amount | Prior-period Amount |
| Chengdu Huachuan electric Decoration Co., Ltd | Training fee | 51,886.79 | - |
| Chengdu Wanyou Automobile Sales Service Co., Ltd | Sales of materials and parts | 34,563.77 | -196,660.99 |
| Chengdu Wanyou Automobile Trade Service Co., Ltd | Sales of complete vehicles and parts | 316,249,425.28 | 190,745,183.84 |
| Chengdu Wanyou Xiangyu Automobile Sales Service Co., Ltd | Sales of complete vehicles and parts | 794,544,935.13 | 514,114,179.34 |
| Guizhou Wanyou Automobile Sales Service Co., Ltd | Sales of complete vehicles and parts | 588,046,422.66 | 370,715,806.38 |
| Harbin Dong'an Automobile Power Co., Ltd | Sales of materials and parts | 15,930.30 | 31,887.37 |
| Harbin Dong'an Automobile Engine Manufacturing Co., Ltd | Sales of materials and parts | 31,522,892.41 | 23,028,367.10 |
| Jiangsu Wanyou Automobile Sales Service Co., Ltd | Sales of complete vehicles and parts | 104,011,720.99 | - |
| Luzhou Wanyou Automobile Service Co., Ltd | Sales of materials and parts | 519,692.06 | 284,227.69 |
| Panzhihua Wanyou Automobile Sales Service Co., Ltd | Sales of materials and parts | 263,050.52 | 144,054.09 |
| Sichuan Ningjiang Shanchuan Machinery Co., Ltd | Training fee | 51,886.79 | 305,799.06 |
| Wanyou Automobile Investment Co., Ltd | Sales of complete vehicles | 349,917,081.21 | 264,690,859.01 |
| Ya'an Wanyou Automobile Sales Service Co., Ltd | Sales of materials and parts | 655,115.77 | 252,146.29 |
| Yunnan Wanyou Automobile Sales Service Co., Ltd | Sales of complete vehicles and parts | 671,843,881.62 | 437,318,866.83 |
| Yunnan Xiangyu Automobile Sales Service Co., Ltd | Sales of complete vehicles and parts | 46,605,045.84 | 43,517,953.51 |
| China Ordnance Equipment Group Finance Leasing Co., Ltd | service charge | 47,547.17 | 77,547.17 |
| China Changan Automobile Group Hefei Investment Co., Ltd | Sales of complete vehicles and parts | 41,156,064.45 | 66,969,966.54 |
| China Changan Automobile Group Tianjin Sales Co., Ltd | Sales of complete vehicles and parts | 137,135,092.41 | 62,075,372.58 |
| Chongqing Anfu Automobile Marketing Co., Ltd | Sales of complete vehicles and parts | 6,189,380.58 | 7,627,054.89 |
| Chongqing Qingshan Industry Co., Ltd | Sales of materials and parts | 35,512,076.07 | 1,579,125.47 |
| Chongqing Wanyou Ducheng Automobile Sales Service Co., Ltd | Sales of materials and parts | 1,161,570.19 | 347,013.72 |
| Chongqing Wanyou Xingjian Automobile Sales Service Co., Ltd | Sales of materials and parts | 697,236.79 | 496,623.26 |
| Chongqing Wanyou Economic Development Co., Ltd | Sales of complete vehicles and parts | 1,049,808,179.31 | 695,050,958.14 |
| Chongqing Wanyou zunda Automobile Sales Service Co., Ltd | Sales of materials and parts | 206,745,318.62 | 131,579,690.10 |
| Related parties | Nature of the transaction | Current amount | Prior-period Amount |
| Chongqing Chang'an Minsheng Boyu Transportation Co., Ltd | Sales of complete vehicles | 85,818,614.19 | - |
| Chongqing Chang'an Minsheng Logistics Co., Ltd | Sales of materials and parts | 928,663.27 | 507,924.04 |
| Chengdu Lingchuan vehicle fuel tank Co., Ltd | Sales of materials and parts | 938,476.80 | 1,668,185.97 |
| Yunnan Xiyi Industry Co., Ltd | Sales of materials and parts | 2,746,914.24 | 2,559,166.80 |
| China Ordnance Equipment Group commercial factoring Co., Ltd | service charge | 84,853.12 | - |
| Chongqing Dajiang Yuqiang plastic products Co., Ltd | Sales of materials and parts | -716,798.50 | 558,413.01 |
| Chongqing construction industry (Group) Co., Ltd | Sales of materials and parts | 171,959.13 | - |
| Tiannak Lingchuan (Chongqing) exhaust system Co., Ltd | Sales of materials and parts | 6,228,241.00 | - |
| Chongqing Dajiang Dongyang plastic products Co., Ltd | Sales of materials and parts | 1,181,692.00 | - |
| Chongqing Dajiang National Precision Machinery Manufacturing Co., Ltd | Outsourcing processing | 10,746.64 | - |
| Chongqing Lingchuan auto parts manufacturing technology Co., Ltd | Sales of materials and parts | 9,518,232.82 | - |
| Bazhong Wanyou Automobile Sales Service Co., Ltd. (note) | Selling parts | 183,115.86 | |
| Total | 6,355,176,591.02 | 3,793,202,441.36 | |
The price of the Group’s purchase from related parties is based on contracts agreed by both parties.Note: Bazhong Wanyou Automobile Sales Service Co., Ltd. was cancelled in December 2020.
(3) Related-party leasing
Rent assets to related parties
In RMB Yuan
| Lessee | Type of leased assets | Report period Amount | Same period of last period Amount |
| Nanjing LingHang Technology Co., Ltd | vehicle | 45,919,893.28 | - |
| Chongqing Wanyou Economic Development Co., Ltd | House and land | 321,100.92 | - |
| Chongqing Chang'an industry (Group) Co., Ltd | House | 3,283,373.71 | 3,283,373.71 |
| Chongqing Chang'an New Energy Vehicle Technology Co., Ltd | Housing and land | 7,154,813.00 | 2,098,588.40 |
| Chongqing Chang'an New Energy Vehicle Technology Co., Ltd | Battery Workshop | 2,674,583.15 | 1,175,045.73 |
| Chongqing Chang'an Minsheng Logistics Co., Ltd | House | 356,642.49 | 601,461.41 |
Rent assets from related parties
In RMB Yuan
| Lessor | Type of leased assets | Report period Amount | Same period of last period Amount |
| Chongqing Chang'an Minsheng Logistics Co., Ltd | Land | 251,047.99 | - |
| (4) Other related transactions | |||
| Integrated service charges | |||
| In RMB Yuan | |||
| Related parties | Nature of the transaction | Report period Amount | Same period of last period Amount |
| Changan Industries (Group) Co. Ltd | Payment of land rental fees | 8,592,223.08 | 13,960,191.76 |
| Payment of building rental fees | 1,197,968.00 | 2,129,622.09 | |
| Payment of utilities | 34,902,256.18 | 62,495,905.46 | |
| Others | 1,234,867.44 | 4,286,872.15 | |
| Total | 45,927,314.70 | 82,872,591.46 | |
| Purchase of project materials | ||
| In RMB Yuan | ||
| Related parties | Report period Amount | Same period of last period Amount |
| Chongqing Chang'an Construction Engineering Co., Ltd | 1,266,884.27 | 66,354,530.30 |
| Chongqing Chang'an Minsheng Logistics Co., Ltd | - | 1,646,984.15 |
| Chongqing Chang'an industry (Group) Co., Ltd | - | 17,522.13 |
| Changan Laisi (Chongqing) robot intelligent equipment Co., Ltd | 5,616,000.00 | - |
| Total | 6,882,884.27 | 68,019,036.58 |
| Staff expenses for technical supporting | ||
| In RMB Yuan | ||
| Related parties | Report period Amount | Same period of last period Amount |
| Chang'an Mazda Automobile Co., Ltd | 5,349,433.96 | 7,021,656.61 |
| Changan Ford Motor Co., Ltd | 8,106,439.00 | 9,057,020.82 | ||||
| Chongqing Chang'an New Energy Vehicle Technology Co., Ltd | 1,223,495.73 | - | ||||
| Chongqing Shangshang Auto Parts Co., Ltd | 53,900.00 | - | ||||
| Total | 14,733,268.69 | 16,078,677.43 | ||||
| Techonology development service charges | ||||||
| In RMB Yuan | ||||||
| Related parties | Report period Amount | Same period of last period Amount | ||||
| Chongqing Changan Kuayue Automobile Co., Ltd. | 2,558,531.66 | - | ||||
| Total | 2,558,531.66 | - | ||||
| Collection of trademark use rights fees | ||||||
| In RMB Yuan | ||||||
| Related parties | Report period Amount | Same period of last period Amount | ||||
| Chongqing Changan Kuayue Automobile Co., Ltd. | - | 9,596,603.77 | ||||
| In 2021, the annual interest rate of deposits deposited with related parties is 0.35% - 3.5%, and the term is 0-12 months. | ||||||
| Borrowing | ||||||
| Short-term borrowing | ||||||
| In RMB Yuan | ||||||
| Related parties | Ending Amount | Beginning Amount | ||||
| China South Industries Group Finance Co., Ltd | 542,000,000.00 | 578,000,000.00 | ||||
| Interest income of deferred payment | ||||||
| In RMB Yuan | ||||||
| Related parties | Report period Amount | Same period of last period Amount | ||||
| Wanyou Automobile Investment Co., Ltd | 15,340.71 | 18,756.64 | ||||
| Chengdu Wanyou Xiangyu Automobile Sales Service Co., Ltd | 50,616.82 | 624,381.42 | ||||
| Chengdu Wanyou Automobile Trade Service Co., Ltd | 58,781.86 | 165,392.98 |
| Yunnan Wanyou Automobile Sales Service Co., Ltd | 31,071.82 | 54,715.93 |
| Guizhou Wanyou Automobile Sales Service Co., Ltd | 70,417.82 | 200,337.69 |
| Anhui Wanyou Automobile Sales Service Co., Ltd | 1,862.83 | - |
| Jiangsu Wanyou Automobile Sales Service Co., Ltd | 199.12 | - |
| Chongqing Wanyou Economic Development Co., Ltd | 21,953.77 | 81,141.59 |
| China Changan Automobile Group Hefei Investment Co., Ltd | - | 20,224.78 |
| Total | 250,244.75 | 1,164,951.03 |
| 6. Payment and receivables of related parties Payment receivables of related listed companies | |||||
| In RMB Yuan | |||||
| Items | Related parties | Ending balance | Beginning balance | ||
| Book balance | Provision for bad-debts | Book balance | Provision for bad-debts | ||
| Notes receivable | Wanyou Automobile Investment Co., Ltd | 2,403,100,000.00 | - | 1,504,200,000.00 | - |
| Notes receivable | Harbin Dong'an Automobile Engine Manufacturing Co., Ltd | 13,906,726.16 | - | 13,328,173.30 | - |
| Notes receivable | Chongqing Qingshan Industry Co., Ltd | 18,172,017.52 | - | 734,400.00 | - |
| Notes receivable | Chongqing Chang'an New Energy Vehicle Technology Co., Ltd | 201,044,380.78 | - | - | - |
| Notes receivable | Chongqing Chang'an Minsheng Boyu Transportation Co., Ltd | 82,905,296.62 | - | - | - |
| Notes receivable | Chongqing naishite Steering System Co., Ltd | 5,276,297.45 | - | - | - |
| Subtotal | 2,724,404,718.53 | - | 1,518,262,573.30 | - | |
| Account receivable | Chongqing Chang'an New Energy Vehicle Technology Co., Ltd | 736,280,330.10 | - | 1,228,074,856.50 | - |
| Account receivable | Jiangling Holdings Limited | 38,503,076.15 | - | 39,964,487.77 | - |
| Account receivable | Chongqing Chang'an Minsheng Logistics Co., Ltd | 32,063,098.53 | - | 31,376,144.03 | - |
| Account receivable | Yunnan Wanyou Automobile Sales Service Co., Ltd | - | - | 1,707,391.53 | - |
| Account receivable | Changan Ford Motor Co., Ltd | 1,171,333.10 | - | 9,727,086.90 | - |
| Account receivable | Harbin Dong'an Automobile Engine Manufacturing Co., Ltd | 4,909,080.39 | - | 845,087.33 | - |
| Account receivable | Chongqing Chang'an industry (Group) Co., Ltd | 4,149,202.09 | - | 701,659.69 | - |
| Account receivable | Chang'an Auto Finance Co., Ltd | 40,235,849.06 | - | 54,885,984.97 | - |
| Account receivable | Chang'an Mazda Engine Co., Ltd | - | - | 156,000.00 | - |
| Account receivable | Chang'an Mazda Automobile Co., Ltd | - | - | 5,435,063.14 | - |
| Account receivable | Harbin Dong'an Automobile Power Co., Ltd | - | - | 180.00 | - |
| Account receivable | Chongqing Chang'an Kuayue Vehicle Co., Ltd | 28,375,009.64 | - | 7,978,148.98 | - |
| Account receivable | Chongqing Qingshan Industry Co., Ltd | 7,671,044.75 | - | 8,611,202.87 | - |
| Account receivable | Hainan anxinxing Information Technology Co., Ltd | - | - | 602,542.27 | - |
| Account receivable | Guangxi Wanyou Automobile Sales Service Co., Ltd | - | - | 997.60 | - |
| Account receivable | Chongqing Wanyou Economic Development Co., Ltd | 8,407.96 | - | - | - |
| Account receivable | Pakistan master Automobile Co., Ltd | - | - | 82,290,540.22 | - |
| Account receivable | Nanjing LingHang Technology Co., Ltd | 15,320,988.07 | - | 340,260.00 | - |
| Account receivable | Chengdu Huachuan electric Decoration Co., Ltd | 55,000.00 | - | - | - |
| Account receivable | Sichuan Ningjiang Shanchuan Machinery Co., Ltd | 55,000.00 | - | - | - |
| Account receivable | Chongqing Wanyou Ducheng Automobile Sales Service Co., Ltd | 3,486.65 | - | - | - |
| Account receivable | Tiannak Lingchuan (Chongqing) exhaust system Co., Ltd | 0.03 | - | - | - |
| Subtotal | 908,800,906.52 | - | 1,472,697,633.80 | - | |
| Other receivable | Changan Ford Motor Co., Ltd | 124,312,677.99 | - | 124,312,677.99 | - |
| Other receivable | Hafei Automobile Co., Ltd | 1,500,000.00 | - | 1,500,000.00 | - |
| Other receivable | Chongqing Chang'an industry (Group) Co., Ltd | 1,157,446.69 | - | 1,157,446.69 | - |
| Other receivable | Chongqing Chang'an Minsheng Logistics Co., Ltd | - | - | 53.44 | - |
| Other receivable | Ordnance Equipment Group Finance Co., Ltd | 189,834.99 | - | - | - |
| Other receivable | Nanjing LingHang Technology Co., Ltd | 325,742.37 | - | - | - |
| Subtotal | 127,485,702.04 | - | 126,970,178.12 | - | |
| Advanced payment | Chongqing Chang'an New Energy Vehicle Technology Co., Ltd | - | - | 24,243,930.61 | - |
| Advanced payment | Beijing Wutong car Link Technology Co., Ltd. | 29,975,990.00 | - | - | - |
| Advanced payment | Chongqing Shangshang Auto Parts Co., Ltd | 450,971.62 | - | - | - |
| Advanced payment | Beijing zhongbing insurance brokerage Co., Ltd | 149,528.99 | - | - | - |
| Subtotal | 30,576,490.61 | - | 24,243,930.61 | - | |
| Accounts payable to related parties of listed companies | |||
| In RMB Yuan | |||
| Items | Related parties | Ending balance | Beginning balance |
| Notes payable | Harbin Dong'an Automobile Power Co., Ltd | 259,520,000.00 | 544,530,000.00 |
| Notes payable | Chongqing Qingshan Industry Co., Ltd | 1,399,280,000.00 | 916,880,000.00 |
| Notes payable | Harbin Dong'an Automobile Engine Manufacturing Co., Ltd | 404,480,000.00 | 352,810,000.00 |
| Notes payable | Chongqing naishite Steering System Co., Ltd | 520,190,000.00 | 312,130,000.00 |
| Notes payable | Chongqing Chang'an Minsheng Logistics Co., Ltd | 250,023,552.96 | 324,235,180.29 |
| Notes payable | Chongqing Chang'an New Energy Vehicle Technology Co., Ltd | - | 123,346,500.00 |
| Notes payable | Chongqing Dajiang Yapu Auto Parts Co., Ltd | 211,860,000.00 | 114,770,000.00 |
| Notes payable | Nanfang Yingte Air Conditioning Co., Ltd | 142,170,000.00 | 94,190,000.00 |
| Notes payable | Chongqing Dajiang Yuqiang plastic products Co., Ltd | 120,730,000.00 | 65,391,200.00 |
| Notes payable | Chongqing Jianshe han'ang automobile thermal management system Co., Ltd | 150,420,000.00 | 56,980,000.00 |
| Notes payable | Chongqing Jianshe vehicle air conditioner Co., Ltd | 111,870,000.00 | 53,170,000.00 |
| Notes payable | Hunan Tianyan Machinery Co., Ltd | - | 51,370,000.00 |
| Notes payable | Chongqing Chang'an Construction Engineering Co., Ltd | 767,305.52 | 38,994,143.00 |
| Notes payable | Sichuan Ningjiang Shanchuan Machinery Co., Ltd | 67,486,248.47 | 42,045,906.61 |
| Notes payable | Hubei Huazhong Marelli Automobile Lighting Co., Ltd | 91,520,000.00 | 31,870,000.00 |
| Notes payable | Southern Faurecia Auto Parts Co., Ltd | 61,130,000.00 | 30,780,000.00 |
| Notes payable | Chengdu Wanyou filter Co., Ltd | 47,180,000.00 | 28,600,000.00 |
| Notes payable | Chengdu Ningjiang Zhaohe Auto Parts Co., Ltd | 40,500,000.00 | 28,230,000.00 |
| Notes payable | Nattiefu transmission system (Chongqing) Co., Ltd | 39,550,000.00 | 23,860,000.00 |
| Notes payable | Chongqing Shangshang Auto Parts Co., Ltd | 43,466,629.00 | 18,890,000.00 |
| Notes payable | Sichuan Jian'an Industry Co., Ltd | 3,800,000.00 | 12,140,000.00 |
| Notes payable | Tiannak Lingchuan (Chongqing) exhaust system Co., Ltd | 20,390,000.00 | 11,930,000.00 |
| Notes payable | Chongqing Jianshe Tongda Industrial Co., Ltd | 18,705,736.67 | 10,900,000.00 |
| Notes payable | Hubei Xiaogan Huazhong lamp Co., Ltd | 25,170,000.00 | 26,147,000.00 |
| Notes payable | Chongqing Dajiang National Precision Machinery Manufacturing Co., Ltd | - | 8,353,982.41 |
| Notes payable | China Ordnance Equipment Group commercial factoring Co., Ltd | - | 27,249,816.78 |
| Notes payable | Chengdu Jialing Huaxi Optical Precision Machinery Co., Ltd | 7,460,000.00 | 5,000,000.00 |
| Notes payable | Changan Laisi (Chongqing) robot intelligent equipment Co., Ltd | 7,676,918.80 | 3,786,991.22 |
| Notes payable | Chongqing Yihong engineering plastic products Co., Ltd | 6,270,000.00 | 1,680,000.00 |
| Notes payable | Chengdu Huachuan electric Decoration Co., Ltd | 540,000.00 | 1,640,000.00 |
| Notes payable | Chongqing Dajiang Jiexin Forging Co., Ltd | 4,160,000.00 | 1,600,000.00 |
| Notes payable | Southern Trina Chassis System Co., Ltd | 17,334,679.90 | 1,499,287.93 |
| Notes payable | Chongqing Chang'an industry (Group) Co., Ltd | - | 300,927.73 |
| Notes payable | Chengdu Lingchuan vehicle fuel tank Co., Ltd | 460,000.00 | 300,000.00 |
| Notes payable | Hunan Tianyan Machinery Co., Ltd | 72,130,000.00 | - |
| Notes payable | Chongqing Lingchuan auto parts manufacturing technology Co., Ltd | 57,320,000.00 | - |
| Subtotal | 4,203,561,071.32 | 3,365,600,935.97 | |
| Account payable | Chongqing Chang'an New Energy Vehicle Technology Co., Ltd | 52,031,428.78 | 987,249,301.69 |
| Account payable | Chongqing naishite Steering System Co., Ltd | 245,934,525.61 | 364,038,471.33 |
| Account payable | Hubei Huazhong Marelli Automobile Lighting Co., Ltd | 112,829,767.44 | 271,361,040.92 |
| Account payable | Harbin Dong'an Automobile Power Co., Ltd | 189,282,871.82 | 234,873,913.36 |
| Account payable | Southern Trina Chassis System Co., Ltd | 159,960,405.59 | 202,699,198.08 |
| Account payable | Harbin Dong'an Automobile Engine Manufacturing Co., Ltd | 281,347,099.78 | 191,107,786.37 |
| Account payable | Southern Faurecia Auto Parts Co., Ltd | 72,649,895.67 | 152,146,995.28 |
| Account payable | Chongqing Dajiang Yapu Auto Parts Co., Ltd | 123,599,875.88 | 136,564,042.17 |
| Account payable | Chongqing Wanyou Economic Development Co., Ltd | 201,948,357.38 | 127,374,868.86 |
| Account payable | Nanfang Yingte Air Conditioning Co., Ltd | 58,361,434.58 | 114,805,252.76 |
| Account payable | Chongqing Qingshan Industry Co., Ltd | 337,977,278.42 | 368,373,870.72 |
| Account payable | Chongqing Jianshe han'ang automobile thermal management system Co., Ltd | 35,791,386.99 | 53,945,823.59 |
| Account payable | Nattiefu transmission system (Chongqing) Co., Ltd | 69,302,599.61 | 53,653,386.24 |
| Account payable | Chongqing Dajiang Yuqiang plastic products Co., Ltd | 28,567,138.34 | 51,429,508.22 |
| Account payable | Hunan Tianyan Machinery Co., Ltd | - | 50,453,258.24 |
| Account payable | Sichuan Jian'an Industry Co., Ltd | 71,708,489.46 | 50,389,382.79 |
| Account payable | Chongqing Changrong Machinery Co., Ltd | 30,573,614.53 | 48,567,677.78 |
| Account payable | Beijing Wutong car Link Technology Co., Ltd. | 6,971,232.46 | 47,721,286.97 |
| Account payable | Chongqing Jianshe vehicle air conditioner Co., Ltd | 33,589,015.28 | 43,541,607.75 |
| Account payable | Chengdu Wanyou filter Co., Ltd | 26,074,471.58 | 30,381,478.06 |
| Account payable | Chengdu Ningjiang Zhaohe Auto Parts Co., Ltd | 23,000,826.16 | 29,379,141.06 |
| Account payable | Hubei Xiaogan Huazhong lamp Co., Ltd | 14,821,763.03 | 23,952,436.29 |
| Account payable | Chongqing Jianshe Tongda Industrial Co., Ltd | 12,318,489.57 | 18,670,315.51 |
| Account payable | Chongqing Shangshang Auto Parts Co., Ltd | 18,201,057.32 | 17,656,884.93 |
| Account payable | Chongqing Lingchuan auto parts manufacturing technology Co., Ltd | 16,432,330.63 | 16,059,572.01 |
| Account payable | Sichuan Ningjiang Shanchuan Machinery Co., Ltd | 39,515,304.59 | 13,521,751.49 |
| Account payable | Chongqing Dajiang National Precision Machinery Manufacturing Co., Ltd | 81,538,927.51 | 10,018,647.24 |
| Account payable | Chengdu Huachuan electric Decoration Co., Ltd | 34,890,405.22 | 8,868,392.58 |
| Account payable | Chengdu Lingchuan vehicle fuel tank Co., Ltd | 9,987,763.62 | 7,442,927.94 |
| Account payable | Chongqing Chang'an Minsheng Logistics Co., Ltd | 12,027,722.29 | 7,310,129.55 |
| Account payable | Chongqing Qingshan transmission Sales Co., Ltd | 1,209,940.57 | 6,290,936.01 |
| Account payable | Chongqing Chang'an Kuayue Vehicle Co., Ltd | - | 5,293,918.44 |
| Account payable | Tiannak Lingchuan (Chongqing) exhaust system Co., Ltd | 4,951,692.02 | 4,232,993.94 |
| Account payable | Changan Ford Motor Co., Ltd | 5,408.00 | 4,032,752.22 |
| Account payable | Chongqing Dajiang Dongyang plastic products Co., Ltd | 1,508,839.61 | 3,947,873.64 |
| Account payable | Chengdu Jialing Huaxi Optical Precision Machinery Co., Ltd | 1,338,643.63 | 1,891,153.38 |
| Account payable | Chongqing Yihong engineering plastic products Co., Ltd | 3,360,302.42 | 1,864,973.67 |
| Account payable | United Automotive Electronics (Chongqing) Co., Ltd | 28,486,425.51 | 1,505,015.86 |
| Account payable | Yunnan Xiyi Industry Co., Ltd | 18,459,331.52 | 1,423,406.29 |
| Account payable | Chongqing Dajiang Jiexin Forging Co., Ltd | 569,159.21 | 1,313,966.45 |
| Account payable | Chongqing Chang'an industry (Group) Co., Ltd | 406,949.37 | 1,014,734.86 |
| Account payable | Hafei Automobile Co., Ltd | - | 949,114.25 |
| Account payable | Chongqing construction industry (Group) Co., Ltd | 652,729.33 | 671,241.27 |
| Account payable | Hangzhou chelizi Intelligent Technology Co., Ltd | - | 655,287.41 |
| Account payable | Chengdu Lingchuan special industry Co., Ltd | 129,362.01 | 620,006.72 |
| Account payable | Chongqing Automobile Air Conditioner Co., Ltd | - | 205,041.51 |
| Account payable | Chongqing Jialing Yimin special equipment Co., Ltd | 104,496.50 | 104,496.50 |
| Account payable | Jiangling Holdings Limited | 102,373.73 | 37,532,873.73 |
| Account payable | Chengdu Guangming Tianzhong Environmental Protection Technology Co., Ltd | 83,175.03 | 83,175.03 |
| Account payable | Chongqing Dajiang Xinda Vehicle Co., Ltd | - | 56,251.08 |
| Account payable | Chongqing Jianshe electromechanical Co., Ltd | 47,265.91 | - |
| Account payable | Lear Chang'an (Chongqing) Automotive System Co., Ltd | 145,108,428.53 | 21,514,578.32 |
| Account payable | Chongqing Xiyi automobile connecting rod Co., Ltd | 38,422.14 | 38,422.14 |
| Account payable | Chongqing Wanyou Xingjian Automobile Sales Service Co., Ltd | - | 37,211.40 |
| Account payable | Chongqing changfengjiquan Machinery Co., Ltd | - | 34,113.46 |
| Account payable | Chongqing Qingshan transmission branch of China Chang'an Automobile Group Co., Ltd | 804.09 | - |
| Account payable | Hunan Tianyan Machinery Co., Ltd | 37,594,859.84 | - |
| Account payable | China Ordnance Equipment Group commercial factoring Co., Ltd | 4,369,459.54 | - |
| Account payable | Changan Laisi (Chongqing) robot intelligent equipment Co., Ltd | 72,172.88 | - |
| Subtotal | 2,649,835,720.53 | 3,828,871,887.36 | |
| Contract liabilities | Chongqing Wanyou Economic Development Co., Ltd | 148,426,701.76 | 136,922,319.01 |
| Contract liabilities | Chengdu Wanyou Xiangyu Automobile Sales Service Co., Ltd | 81,105,670.79 | 72,155,192.54 |
| Contract liabilities | Guizhou Wanyou Automobile Sales Service Co., Ltd | 54,810,358.25 | 58,030,319.57 |
| Contract liabilities | Chengdu Wanyou Automobile Trade Service Co., Ltd | 50,110,735.42 | 35,971,849.65 |
| Contract liabilities | Wanyou Automobile Investment Co., Ltd | 18,062,746.34 | 31,469,102.13 |
| Contract liabilities | China Changan Automobile Group Tianjin Sales Co., Ltd | 17,269,095.70 | 27,823,192.54 |
| Contract liabilities | China Changan Automobile Group Hefei Investment Co., Ltd | 10,273.00 | 26,160,180.06 |
| Contract liabilities | Yunnan Wanyou Automobile Sales Service Co., Ltd | 42,007,728.91 | 4,100,481.79 |
| Contract liabilities | Chang'an Mazda Engine Co., Ltd | 3,256,185.92 | 3,232,425.34 |
| Contract liabilities | Chongqing Qingshan Industry Co., Ltd | - | 1.57 |
| Contract liabilities | Yunnan Xiangyu Automobile Sales Service Co., Ltd | 4,327,712.43 | 1,402,879.67 |
| Contract liabilities | Hafei Automobile Co., Ltd | 670,500.00 | 670,500.00 |
| Contract liabilities | Chongqing Anfu Automobile Marketing Co., Ltd | 73,268.00 | 492,268.00 |
| Contract liabilities | Bazhong Wanyou Automobile Sales Service Co., Ltd | 50,426.48 | 50,426.48 |
| Contract liabilities | Chongqing Wanyou Xingjian Automobile Sales Service Co., Ltd | 50,160.44 | 48,381.98 |
| Contract liabilities | Hainan anxinxing Information Technology Co., Ltd | 40,775.60 | 40,775.60 |
| Contract liabilities | Chongqing Jianshe han'ang automobile thermal management system Co., Ltd | 15,752.76 | 15,752.76 |
| Contract liabilities | Panzhihua Wanyou Automobile Sales Service Co., Ltd | 554.47 | 14,218.43 |
| Contract liabilities | Chongqing Wanyou Ducheng Automobile Sales Service Co., Ltd | 43,449.69 | 13,806.65 |
| Contract liabilities | Chongqing Shangshang Auto Parts Co., Ltd | 12,979.98 | 3,980.00 |
| Contract liabilities | China Ordnance Equipment Group commercial factoring Co., Ltd | 1,841.34 | 3,639.52 |
| Contract liabilities | Luzhou Wanyou Automobile Service Co., Ltd | 6,206.06 | 2.67 |
| Contract liabilities | Jiangling Holdings Limited | - | 6,854,200.00 |
| Contract liabilities | Chengdu Wanyou Automobile Sales Service Co., Ltd | 81,942.94 | - |
| Contract liabilities | Chongqing Wanyou zunda Automobile Sales Service Co., Ltd | 9,629,851.77 | 8,387,067.42 |
| Contract liabilities | Pakistan master Automobile Co., Ltd | - | 6,141,961.92 |
| Contract liabilities | Changan Ford Motor Co., Ltd | 46,157.30 | - |
| Contract liabilities | Chang'an Mazda Automobile Co., Ltd | 1,423,660.83 | - |
| Contract liabilities | Anhui Wanyou Automobile Sales Service Co., Ltd | 25,168,466.63 | - |
| Contract liabilities | Jiangsu Wanyou Automobile Sales Service Co., Ltd | 12,819,023.45 | - |
| Contract liabilities | Ya'an Wanyou Automobile Sales Service Co., Ltd | 17,613.00 | - |
| Contract liabilities | Chongqing Chang'an Minsheng Boyu Transportation Co., Ltd | 446,426.62 | - |
| Subtotal | 469,986,265.88 | 420,004,925.30 | |
| Other payables | Chongqing Chang'an Minsheng Logistics Co., Ltd | 482,105,970.60 | 121,088,638.71 |
| Other payables | Chongqing Chang'an New Energy Vehicle Technology Co., Ltd | 166,436,033.46 | 36,316,848.55 |
| Other payables | Changan Laisi (Chongqing) robot intelligent equipment Co., Ltd | 16,298,837.60 | 12,128,160.74 |
| Other payables | Chongqing Chang'an Construction Engineering Co., Ltd | 3,215,622.10 | 6,988,672.23 |
| Other payables | Changan Ford Motor Co., Ltd | - | 5,303,266.52 |
| Other payables | United Automotive Electronics (Chongqing) Co., Ltd | 54,059.20 | 1,870,640.08 |
| Other payables | Chongqing Chang'an Property Management Co., Ltd | 1,535,707.67 | 1,466,516.00 |
| Other payables | Chengdu Lingchuan special industry Co., Ltd | - | 791,056.30 |
| Other payables | Chongqing Dajiang National Precision Machinery Manufacturing Co., Ltd | - | 624,370.54 |
| Other payables | Nattiefu transmission system (Chongqing) Co., Ltd | 37,516.00 | 468,761.43 |
| Other payables | Chengdu Wanyou filter Co., Ltd | 245,164.97 | 452,863.89 |
| Other payables | Harbin Dong'an Automobile Engine Manufacturing Co., Ltd | 680,363.17 | 381,252.08 |
| Other payables | Chongqing Wanyou Economic Development Co., Ltd | 48,715.47 | 269,950.17 |
| Other payables | Southern Faurecia Auto Parts Co., Ltd | - | 260,755.41 |
| Other payables | Chengdu Huachuan electric Decoration Co., Ltd | 10,810.91 | 253,402.50 |
| Other payables | Chengdu Wanyou Automobile Trade Service Co., Ltd | - | 208,688.90 |
| Other payables | Southern Trina Chassis System Co., Ltd | - | 206,361.95 |
| Other payables | Nanfang Yingte Air Conditioning Co., Ltd | - | 192,165.58 |
| Other payables | Chongqing Shangshang Auto Parts Co., Ltd | 3,164.00 | 109,671.82 |
| Other payables | Chongqing Anfu Automobile Marketing Co., Ltd | - | 100,000.00 |
| Other payables | Chongqing Changrong Machinery Co., Ltd | - | 84,901.15 |
| Other payables | Chongqing naishite Steering System Co., Ltd | - | 79,552.00 |
| Other payables | Chongqing Qingshan Industry Co., Ltd | - | 8,634,212.55 |
| Other payables | Yunnan Wanyou Automobile Sales Service Co., Ltd | 60,475.62 | 56,370.87 |
| Other payables | Chongqing Dajiang Xinda Vehicle Co., Ltd | - | 50,000.00 |
| Other payables | Sichuan Jian'an Industry Co., Ltd | 73,512.79 | 49,913.90 |
| Other payables | Sichuan Ningjiang Shanchuan Machinery Co., Ltd | - | 40,594.89 |
| Other payables | Chongqing Jianshe han'ang automobile thermal management system Co., Ltd | - | 27,387.18 |
| Other payables | Panzhihua Wanyou Automobile Sales Service Co., Ltd | 18,789.74 | 20,360.82 |
| Other payables | Hubei Xiaogan Huazhong lamp Co., Ltd | - | 13,560.00 |
| Other payables | Chongqing Jianshe vehicle air conditioner Co., Ltd | - | 10,975.69 |
| Other payables | Chongqing Dajiang Yapu Auto Parts Co., Ltd | - | 8,588.36 |
| Other payables | Yunnan Xiyi Industry Co., Ltd | 6,985.09 | 5,306.34 |
| Other payables | Ya'an Wanyou Automobile Sales Service Co., Ltd | 12,510.77 | 4,927.58 |
| Other payables | Chengdu Lingchuan vehicle fuel tank Co., Ltd | - | 4,079.47 |
| Other payables | Luzhou Wanyou Automobile Service Co., Ltd | 4,401.13 | 4,050.22 |
| Other payables | Chongqing Wanyou Ducheng Automobile Sales Service Co., Ltd | 22,916.81 | 2,539.14 |
| Other payables | Guizhou Wanyou Automobile Sales Service Co., Ltd | 130,413.04 | 9,011.83 |
| Other payables | China Changan Automobile Group Tianjin Sales Co., Ltd | 16,553.40 | 1,178.52 |
| Other payables | Chengdu Wanyou Trading Co., Ltd | 2,432.90 | 46.00 |
| Other payables | Chongqing Chang'an Kuayue Vehicle Co., Ltd | - | 160,487,855.00 |
| Other payables | Chongqing Chang'an industry (Group) Co., Ltd | 2,002,319.91 | 1,812,834.47 |
| Other payables | Harbin Dong'an Automobile Power Co., Ltd | 160,098.40 | - |
| Other payables | Chongqing Wanyou zunda Automobile Sales Service Co., Ltd | 800,000.00 | 150,000.00 |
| Other payables | China Chang'an Automobile Group Co., Ltd | 60,000.00 | 90,000.00 |
| Other payables | Anhui Wanyou Automobile Sales Service Co., Ltd | 96,895.96 | - |
| Other payables | Hunan Tianyan Machinery Co., Ltd | 73,178.80 | - |
| Other payables | Jiangsu Wanyou Automobile Sales Service Co., Ltd | 500,000.00 | - |
| Other payables | Jiangling Holdings Limited | 833,607.94 | - |
| Total | 675,547,057.45 | 361,130,289.38 | |
XIII. Share-based payments
1. General information
√ Applicable □ Non-applicable
Unit: share currency: RMB
| Total amount of equity instruments granted by the company in the current period | 76,195,400 |
| Total amount of equity instruments exercised by the company in the current period | |
| Total amount of various equity instruments expired in the current period of the company | |
| The scope of exercise price of stock options issued by the company at the end of the period and the remaining term of the contract | No |
| The scope of exercise price of other equity instruments issued at the end of the period and the remaining term of the contract | No |
Other instructionsDuring the signing of the agreement and the payment of funds after the grant date, 33 incentive objects gave up their subscription of1,900,800 shares of their corresponding restricted shares for personal reasons. Therefore, the actual grant objects of the company'sA-share restricted shares for the first time were 1247, and the actual grant amount for the first time was 76,195,400 shares.
2. Equity settled share based payment
√ Applicable □ Non-applicable
Unit: Yuan currency: RMB
| Determination method of fair value of equity instruments on the grant date | Market price method model calculation |
| Basis for determining the number of exercisable equity instruments | Based on the best estimate of the number of exercisable equity instruments, the relevant expenses and costs are calculated according to the fair value of the equity instruments on the grant date |
| Reasons for significant differences between the current estimate and the previous estimate | No |
| Cumulative amount of equity settled share based payment included in capital reserve | 107,618,400.00 |
| Total recognized expenses of equity settled share based payment in the current period | 107,618,400.00 |
Other instructionsNone
3. Cash settled share based payment
□ applicable √ not applicable
4. Modification and termination of share based payment
□ applicable √ not applicable
5. Other
□ applicable √ not applicable
XIV. Commitments and Contingencies
1. Significant commitments
Investment commitmentBy June 30, 2021, the group has no investment commitment that has been signed but not yet fully fulfilled.
2. Contingencies
By June 30, 2021, the company has no significant contingencies that need to be published.
XV. Events after the balance sheet date
1. Significant non-adjusting events
□ Applicable √Not Applicable
2. Distribution of profit
□ Applicable √ Not Applicable
3. Sales return
□ Applicable √ Not Applicable
XVI. Other important events
1. Correction of accounting error of earlier stage
□ Applicable √ Not Applicable
2. Debt restructuring
□ Applicable √ Not Applicable
3. Asset replacement
□ Applicable √ Not Applicable
4. Annuity plan
□ Applicable √ Not Applicable
5. Discontinuing operation
□ Applicable √ Not Applicable
6. Information on business branch
Identify business branch of the group according to internal organization structure, management requirements, internal reporting rules,and identify the report and information disclosed of the brand based on the identified branch.Identify business branch of the group according to internal organization structure, management requirements, internal reporting rules,
and identify the report and information disclosed of the brand based on the identified branch.business branch refers to the component of the group that meets the following conditions:
(1) the component has income and expenditure incurred in routine activities;
(2) the management of the company regularly evaluates the operation performance of the component to decide the company’sresource distribution and evaluate its overall performance
(3) The group receives related accounting information on the financial situation, operation performance and cash flow.If two or more components have similar economic features and meet the conditions, they should be consolidated into one branch.Income and profit of the group consists of automobile manufacturing and domestic sales. Main asset of the group is in China. Themanagement of the group evaluates the performance of the group as a whole. Thus, report of the branch is not included in this year’sreport.
XVII. Notes to the main items of the parent company’s financial statements
1. Account Receivables
(1)The aging analysis is as follow:
In RMB Yuan
| Account receivable age | Ending | Beginning |
| Within 1 year | 4,108,837,120.27 | 3,773,918,017.07 |
| 1 to 2 years | 55,434,711.32 | 554,825,636.86 |
| 2 to 3 years | 321,652,418.74 | 532,765,988.27 |
| Over 3 years | 808,112,167.80 | 696,515,785.09 |
| Total | 5,294,036,418.13 | 5,558,025,427.29 |
| Bad debt provision | -95,559,843.06 | -93,484,241.66 |
| 5,198,476,575.07 | 5,464,541,185.63 |
(2) The changes in the provision for bad debts of accounts receivable are as follows
In RMB Yuan
| Items | Beginning balance | Provision | Decrease | Ending balance |
| 2021.06.30 | 93,484,241.66 | 2,370,624.80 | 295,023.40 | 95,559,843.06 |
| 2020.12.31 | 22,709,502.59 | 70,774,739.07 | 93,484,241.66 |
(3) Disclosure of accounts receivable
In RMB Yuan
| Items | Ending | |||
| Book balance | Provision for bad-debts | |||
| Amount | (%) | Amount | (%) | |
| Individual assessment of credit expected loss | 4,969,823,921.58 | 93.88 | 77,639,076.15 | 1.56 |
| and provision for bad debts | ||||
| Assess bad debt provision for expected credit expected loss according to credit risk characteristics combination | 324,212,496.55 | 6.12 | 17,920,766.91 | 5.53 |
| Total | 5,294,036,418.13 | 100.00 | 95,559,843.06 | 1.81 |
| Items | Ending | |||
| Book balance | Provision for bad-debts | |||
| Amount | (%) | Amount | (%) | |
| Individual assessment of credit expected loss and provision for bad debts | 5,428,359,709.78 | 97.67 | 77,639,076.15 | 1.43 |
| Assess bad debt provision for expected credit expected loss according to credit risk characteristics combination | 129,665,717.51 | 2.33 | 15,845,165.51 | 12.22 |
| Total | 5,558,025,427.29 | 100.00 | 93,484,241.66 | 1.68 |
(4) The parent company's portfolio of expected credit losses based on credit risk assessment is as follows:
In RMB Yuan
| Ending | Beginning | |||||
| Estimated book balance in default | Expected credit loss rate (%) | Lifetime expected credit loss | Estimated book balance in default | Expected credit loss rate (%) | Lifetime expected credit loss | |
| Within 1 year | 287,847,271.78 | 0.05 | 154,598.66 | 90,538,481.62 | 0.40 | 361,940.43 |
| 1 to 2 years | 657,143.38 | 9.97 | 65,500.04 | 3,695,660.30 | 4.14 | 152,979.49 |
| 2 to 3 years | 26.00 | 7.15 | 1.86 | |||
| Over 3 years | 35,708,081.39 | 49.57 | 17,700,668.21 | 35,431,549.59 | 43.27 | 15,330,243.73 |
| Total | 324,212,496.55 | 5.53 | 17,920,766.91 | 129,665,717.51 | 12.22 | 15,845,165.51 |
（5）As of June 30, 2021, the top five accounts receivable totaled RMB 3,275,776,960.75, accounting for 61.88% of the totalaccounts receivable (As of December 31, 2020, the top five accounts receivable totaled RMB4,296,350,189.29 , Accounting for
77.30% of the total accounts receivable).
（6）As of June 30, 2021, the Group has no accounts receivable that are derecognized as the transfer of financial assets (December31, 2020: None)
2. Other receivables
(1)The aging analysis is as follow:
In RMB Yuan
| Account receivable age | Ending | Beginning |
| Dividends receivable | 854,896,010.57 | |
| Other receivables | 1,692,436,327.45 | 1,990,616,778.83 |
| Total | 2,547,332,338.02 | 1,990,616,778.83 |
Dividends receivable
In RMB Yuan
| Items | Beginning | Increase | Decrease | Ending | Reasons | Whether Bad-debt provison |
| Dividends receivable within one year | 858,326,010.57 | 3,430,000.00 | 854,896,010.57 | Dividend distribution has not been received | No | |
| Dividends receivable aged more than one year | ||||||
| Total | 858,326,010.57 | 3,430,000.00 | 854,896,010.57 | -- | -- |
(1)The aging analysis is as follow:
| receivable age | Ending | Beginning |
| Within 1 year | 1,553,896,813.79 | 1,853,275,788.49 |
| 1 to 2 years | 667,993.80 | 4,330,562.67 |
| 2 to 3 years | 125,217,030.43 | 125,479,863.46 |
| Over 3 years | 19,819,561.73 | 14,684,849.00 |
| Total | 1,699,601,399.75 | 1,997,771,063.62 |
| Bad debt provision | -7,165,072.30 | -7,154,284.79 |
| 1,692,436,327.45 | 1,990,616,778.83 |
（2）Other receivables are classified by nature as follows:
| Items | Ending | Beginning |
| Subsidy | 177,490,755.00 | 404,133,442.00 |
| Internal transactions | 860,000,000.00 | 1,200,000,000.00 |
| Petty cash | 15,906,758.91 |
| Asset disposal funds | 3,984,842.15 | |
| New energy points | 333,838,264.00 | |
| Other | 321,107,308.45 | 366,591,735.77 |
| Total | 1,692,436,327.45 | 1,990,616,778.83 |
（3）The changes in bad debt provision for other receivables based on 12-month expected credit losses and the entire lifetimeexpected credit losses are as follows（Only for 2021）：
| The first stage Expected credit losses in the next 12 months | The second stage Expected credit loss for the entire life (Single evaluation) | The third stage Expected credit loss for the entire life (Group evaluation) | Total | |
| Balance at the end of the previous year | 269,269.46 | 42,082.56 | 6,842,932.77 | 7,154,284.79 |
| Balance on January 1, 2021 | ||||
| --Transfer to the second stage | ||||
| --Transfer to the third stage | ||||
| --Turn back to the second stage | ||||
| --Turn back to the first stage | ||||
| Current provision | 17,634.62 | 17,634.62 | ||
| Current return | -6,847.11 | -6,847.11 | ||
| Ending balance | 280,056.97 | 42,082.56 | 6,842,932.77 | 7,165,072.30 |
（4）The changes in bad debt provision for other receivables based on 12-month expected credit losses and the entire lifetimeexpected credit losses are as follows（Only for 2020）：
| The first stage Expected credit losses in the next 12 months | The second stage Expected credit loss for the entire life (Single evaluation) | The third stage Expected credit loss for the entire life (Group evaluation) | Total | |
| Balance on January 1, 2020 | 291,182.01 | 111,643,227.46 | 2,850,000.87 | 114,784,410.34 |
| Changes in accounting policies | - | -111,066,213.00 | - | -111,066,213.00 |
| Balance on January 1, 2020 after adjustment | 291,182.01 | 577,014.46 | 2,850,000.87 | 3,718,197.34 |
| Balance on January 1, 2020 | ||||
| --Transfer to the second stage | - | - | - | - |
| --Transfer to the third stage | - | -534,931.90 | 534,931.90 | - |
| --Turn back to the second stage | - | - | - | - |
| --Turn back to the first stage | - | - | - | - |
| Current provision | - | - | 3,458,000.00 | 3,458,000.00 |
| Current return | -21,912.55 | - | - | -21,912.55 |
| Termination confirmation | - | - | - | - |
| Write off this year | - | - | - | - |
| Others | - | - | - | - |
| Ending balance | 269,269.46 | 42,082.56 | 6,842,932.77 | 7,154,284.79 |
(5) As of June 30, 2021, the top five other receivables are as follows:
In RMB Yuan
| company name | Amount | Aging | Proportion to the total balance of other receivables (%) |
| First place | 860,000,000.00 | Within 1 year | 50.60 |
| Second place | 195,200,000.00 | Within 1 year | 11.49 |
| Third place | 124,312,677.99 | Within 3 years | 7.31 |
| Fourth place | 113,875,000.00 | Within 1 year | 6.70 |
| Fifth place | 64,274,400.00 | Within 1 year | 3.78 |
| Total | 1,357,662,077.99 | - | 79.88 |
(6) As of June 30, 2021, the Group had no other receivables derecognized as financial asset transfers (December 31, 2020:
None).
3. Long-term equity investment
In RMB Yuan
| Invested in | beginning amount | increase/decrease | Investment gains and losses under the equity method | Other equity changes | cash bonus in current period | Other reduction | impairment provision in current period | Ending balance | Impairment |
| 1、Joint ventures | |||||||||
| Changan Ford Automobile Co., Ltd | 1,791,533,495.17 | 362,952,450.03 | 2,154,485,945.20 | ||||||
| Changan Mazda Automobile Co.,Ltd. | 1,995,998,622.28 | 280,357,717.64 | 719,500,000.00 | 1,556,856,339.92 | |||||
| Changan Ford Mazda Engine Co., Ltd. | 832,869,256.44 | 15,721,810.83 | 848,591,067.27 | ||||||
| Jiangling Investment Co., Ltd. | 1,545,807,633.84 | 78,245,997.25 | 1,624,053,631.09 | ||||||
| 2、Associated Enterprises | |||||||||
| Chongqing Changan Kuayue Automobile Co., Ltd | 237,736,134.21 | 4,994,618.02 | 3,430,000.00 | 239,300,752.23 | |||||
| Chongqing Changan Kuayue Automobile Marketing Co., Ltd. | - | - | |||||||
| Beijing Fang’an Xinyue taxi Co., Ltd | - | - | |||||||
| Chongqing Auto Finance Co., Ltd. | 2,337,849,374.75 | 129,697,153.59 | 65,191,812.92 | 2,402,354,715.42 | |||||
| Hainan Anxinxing Information Technology Co., Ltd. | 2,316,052.92 | -1,009,343.24 | 1,306,709.68 | ||||||
| Nanjing Chelai Travel Technology Co., Ltd. | 1,192,605.27 | -134,310.36 | 1,058,294.91 | ||||||
| Hunan Guoxin Semiconductor Technology Co., Ltd. | 25,373,809.47 | -514,689.73 | 24,859,119.74 |
| Nanjing Leading Equity Investment Partnership | 999,636,607.63 | -33,139.50 | 999,603,468.13 | ||||||
| Nanjing Lingxing Equity Investment Management Co., Ltd. | 1,262,180.39 | -64,190.89 | 1,197,989.50 | ||||||
| Jiangling Holding Co., Ltd. | 201,736,644.25 | -48,302,837.53 | 153,433,806.72 | ||||||
| Chongqing Changan New Energy Automobile Technology Co., Ltd. | 1,042,156,607.05 | -471,341,755.14 | 570,814,851.91 | ||||||
| Zhongqi Chuangzhi Technology Co., Ltd | 100,000,000.00 | -753,627.84 | 99,246,372.16 | ||||||
| 3、Subsidiaries | |||||||||
| Nanjing Chang'an Automobile Co., Ltd | 422,533,259.00 | 422,533,259.00 | |||||||
| Chongqing Chang'an Automobile International Sales Service Co., Ltd | 13,068,581.00 | 13,068,581.00 | |||||||
| Chongqing Chang'an Automobile Customer Service Co., Ltd | 29,700,000.00 | 29,700,000.00 | |||||||
| Chongqing Chang'an chelian Technology Co., Ltd | 88,500,000.00 | 88,500,000.00 | |||||||
| Chongqing Chang'an Special Purpose Vehicle Co., Ltd | 2,500,000.00 | 2,500,000.00 | |||||||
| Chongqing Chang'an European Design Center Co., Ltd | 155,469,913.50 | 155,469,913.50 | |||||||
| Chongqing Chang'an New Energy Vehicle Co., Ltd | - | - | -49,194,195.00 | ||||||
| Changan Automobile UK R & D Center Co., Ltd | 250,093,850.95 | 250,093,850.95 | |||||||
| Beijing Chang'an Automobile | 1,000,000.00 | 1,000,000.00 |
| Engineering Technology Research Co., Ltd | |||||||||
| Chang'an Japan Design Center Co., Ltd | 1,396,370.15 | 1,396,370.15 | |||||||
| Chang'an American R & D Center Co., Ltd | 10,243,460.00 | 10,243,460.00 | |||||||
| Hefei Changan Automobile Co., Ltd | 1,535,367,765.23 | 1,535,367,765.23 | |||||||
| Changan Automobile Russia Co., Ltd | 251,242,589.15 | 251,242,589.15 | |||||||
| Changan Brazil Holding Co., Ltd | 2,584,556.97 | 2,584,556.97 | |||||||
| Chang'an Automobile Investment (Shenzhen) Co., Ltd | 235,248,871.00 | 235,248,871.00 | |||||||
| Nanjing Chang'an new energy vehicle sales Service Co., Ltd | 50,000,000.00 | 50,000,000.00 | |||||||
| Fuzhou Fuqing Chang'an New Energy Vehicle Sales Co., Ltd | 2,000,000.00 | 2,000,000.00 | |||||||
| Xiamen Chang'an new energy vehicle sales Service Co., Ltd | 2,000,000.00 | 2,000,000.00 | |||||||
| Guangzhou Chang'an new energy vehicle sales Service Co., Ltd | 4,000,000.00 | 4,000,000.00 | |||||||
| Chongqing lingyao Automobile Co., Ltd | 594,949,059.30 | 594,949,059.30 | |||||||
| Chongqing chehemei Technology Co., Ltd | 10,000,000.00 | 10,000,000.00 | |||||||
| Chongqing Chang'an Kaicheng Automobile Technology Co., Ltd | 976,475,558.18 | 976,475,558.18 |
| Chongqing Chang'an Automobile Software Technology Co., Ltd | 99,000,000.00 | 99,000,000.00 | |||||||
| Avatar Technology (Chongqing) Co., Ltd. (Note 1) | 58,461,669.77 | 95,380,000.00 | 153,841,669.77 | ||||||
| Total | 15,911,304,527.87 | 95,380,000.00 | 349,815,853.13 | 788,121,812.92 | 15,568,378,568.08 | -49,194,195.00 |
Note 1: the former Chang'an Weilai New Energy Vehicle Technology Co., Ltd. was renamed avatar Technology (Chongqing) Co., Ltd. in May 2021.
4. Operating revenue and cost
In RMB Yuan
| Report period | Same period of last year | |||
| Revenue | Cost | Revenue | Cost | |
| Main business | 49,511,486,065.29 | 43,920,794,847.39 | 28,058,352,585.87 | 26,554,901,003.12 |
| Other business | 3,316,919,115.43 | 1,592,749,547.20 | 1,700,567,311.50 | 1,310,072,821.56 |
| Total | 52,828,405,180.72 | 45,513,544,394.59 | 29,758,919,897.37 | 27,864,973,824.68 |
5. Investment income
(1) Details of investment income
In RMB Yuan
| Items | Current amount | Prior-period amount |
| Long-term equity investment income measured by cost method | 608,962,802.11 | |
| Long-term equity investment income measured by equity method | 349,815,853.13 | -430,245,711.08 |
| investment income from long -term equity investment disposition | 2,124,526,141.26 | |
| Investment income obtained during the period of holding trading financial assets | 2,840,290.34 | |
| others | 78,303,450.81 | 11,056,250.03 |
| Total | 428,119,303.94 | 2,317,139,772.66 |
(2) Long-term equity investment incomemeasured by cost accounting method
In RMB Yuan
| Items | Current amount | Prior-period amount |
| Chongqing Changan Automobile Customer Service Co., Ltd. | 603,900,000.00 | |
| Zhenjiang Demao Hairun Equity Investment Fund Partnership (Limited Partnership) | 5,062,802.11 | |
| Total | 608,962,802.11 |
(3) Long-term equity investment income measured by equity accounting method
In RMB Yuan
| Invested in company | Current amount | Prior-period amount |
| Changan Ford Motor Co., Ltd | 362,952,450.03 | -570,006,507.40 |
| Chang'an Mazda Engine Co., Ltd | 15,721,810.83 | 11,597,486.28 |
| Hainan anxinxing Information Technology Co., Ltd | -1,009,343.24 | -795,039.88 |
| Nanjing chelai Travel Technology Co., Ltd | -134,310.36 | -143,024.65 |
| Jiangling Holdings Limited | -48,302,837.53 | -94,049,105.60 |
| Chang'an Mazda Automobile Co., Ltd | 280,357,717.64 | 323,202,621.60 |
| Chongqing Chang'an Kuayue Vehicle Co., Ltd | 4,994,618.02 | 27,957,230.96 |
| Changan Peugeot Citroen Automobile Co., Ltd | -114,234,986.00 | |
| Chang'an Auto Finance Co., Ltd | 129,697,153.59 | 123,493,951.66 |
| Avita Technology (Chongqing) Co., Ltd | -18,666,611.81 | |
| Hunan Guoxin Semiconductor Technology Co., Ltd | -514,689.73 | -126,648.85 |
| Nanchang Jiangling Investment Co., Ltd | 78,245,997.25 | 34,848,792.52 |
| Chongqing Chang'an New Energy Vehicle Technology Co., | -471,341,755.14 | -153,230,307.40 |
| Ltd | ||
| Nanjing linghang equity investment partnership (limited partnership) | -33,139.50 | 32.16 |
| Nanjing LingHang Equity Investment Management Co., Ltd | -64,190.89 | -93,594.67 |
| Zhongqi Chuangzhi Technology Co., Ltd | -753,627.84 | |
| Total | 349,815,853.13 | -430,245,711.08 |
XVIII. Additional information
1. Non-recurring profit and loss statement of current period
In RMB Yuan
| Items | Amount |
| Profit and loss of non-current assets disposition | 601,066,861.33 |
| Government subsidies counted in current profit and loss (except the government subsidies which are closely related with business events, and given certain amount according to national standards) | 517,107,352.50 |
| Gains and losses from entrusted loans | 6,959,316.06 |
| Profit and loss from changes in fair value (excluding hedge accounting) | 15,734,698.73 |
| Other non-business incomings and outgoings except above-mentioned items | 26,880,243.65 |
| Interest on deferred payment of funds received from non - financial enterprises | 17,542,698.15 |
| Less: amount influenced by income tax | -88,222,076.78 |
| Amount influenced by minority shareholders’ interest (after tax) | -107,580,857.12 |
| Total | 989,488,236.52 |
If the company identifies non-recurring profit and loss defined by Information Disclosure by Companies Offering Securities to thePublic No. 1--non-recurring profit and loss and non-recurring profit and loss defined by Information Disclosure by CompaniesOffering Securities to the Public No. 1--non-recurring profit and loss as recurring profit and loss, explain the reasons.
2. Return on equity and earnings per share
In RMB Yuan
| Profit in report period | Weighted average return on equity | Earnings per share | |
| Basic EPS | Basic EPS | ||
| Net profit belonging to the Company’s common stockholders | 3.22% | 0.32 | Not applicable |
| Net profit belonging to the Company’s common stockholders after deducting non-recurring profit and loss | 1.38% | 0.14 | Not applicable |
The group's presentation of return on net assets and earnings per share is in accordance with the preparation rules for informationdisclosure of companies offering securities to the public No. 9 - Calculation and disclosure of return on net assets and earnings pershare (revised in 2010) of the CSRC.
3. Accounting data difference by domestic and foreign accouting standards
(1) Net profit and net asset differences from financial statements by global GAAC and prc GAAC
□ Applicable √ Not applicable
(2) Net profit and net asset differences from financial statements by GAAC abroad and PRC GAAP
□ Applicable √ Not applicable
(3) Description on accounting data differences by domestic and foreign accounting standards. If auditing institutions abroadhave adjusted the data differences, identify the name of the auditing institution abroad.None
4. Others
□ Applicable √ Not applicable