Chongqing Changan Automobile
Company Limited
2021 Annual Report
April 2022
Chongqing Changan Automobile Company Limited 2021 Annual Report
Chapter 1 Important Notice, Contents, and Definitions
1. The Board of Directors (or the “Board”), the Supervisory Board as well as the directors, supervisors
and senior managers of Chongqing Changan Automobile Co., Ltd. hereby guarantee the factuality,
accuracy and completeness of the contents of this Report and its summary, and shall be jointly and
severally liable for any misrepresentations, misleading statements or material omissions therein.
2. Zhu Huarong, the Company’s legal representative, Zhang Deyong, the Company’s Chief Financial
Officer and Chen Jianfeng, the person-in-charge of the accounting organ hereby guarantee that the
financial statements carried in this Report are factual, accurate and complete.
3. Except the following directors, all the directors have attended the board meeting for reviewing this
Report.
Name of the directors absent Positions Reasons for the absence Name of the Trustees
Ye Wenhua Director Business trip Zhang Bo
Zhou Kaiquan Director Business trip Wang Jun
4. Any prospective description such as future business plans and development strategies in this Report
shall not be considered as the Company’s commitment to investors. Investors and relevant persons
shall be sufficiently mindful of risks, and undertake the difference in plans, predictions and
commitment.
5. Section III “Management Discussion and Analysis” of this Report describes the possible risks and
countermeasures of the Company, and investors shall pay attention to the relevant content.
6. The Board has approved a final dividend plan as follows: Based on 7,632,153,402 shares, a cash
dividend of RMB 2.33 (tax included) per 10 shares is to be distributed to all shareholders, and 3 bonus
shares for every 10 shares will be converted from the capital reserve.
This Report have been prepared in both Chinese and English. Should there be any discrepancies or
misunderstandings between the two versions, the Chinese version shall prevail.
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Chongqing Changan Automobile Company Limited 2021 Annual Report
CONTENTS
Chapter 1 Important Notice, Contents, and Definitions............................................. 1
Chapter 2 Company Profile and Main Financial Indexes .......................................... 4
Chapter 3 Management Discussion and Analysis ...................................................... 8
Chapter 4 Corporate Governance ............................................................................. 32
Chapter 5 Environmental and Social Responsibility ............................................... 54
Chapter 6 Significant Events .................................................................................... 62
Chapter 7 Share Changes and Shareholder Information .......................................... 68
Chapter 8 Preference Shares .................................................................................... 74
Chapter 9 Bonds ....................................................................................................... 74
Chapter 10 Auditor’s Report ....................................................................................... 76
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Chongqing Changan Automobile Company Limited 2021 Annual Report
Documents Available for Reference
I. Financial statements carrying the signatures and seals of the Company’s legal representative, the Chief Financial
Officer, and the person-in-charge of the accounting organ.
Ⅱ. The 2021 Auditor’s Report stamped by the accounting firm and signed and stamped by chartered accountants.
Ⅲ. During the reporting period, the original copies of all company documents and announcements publicly
disclosed by the Company in China Securities Journal, Securities Times, Securities Daily, Shanghai Securities News,
and Hong Kong Commercial Daily.
IV. Annual Reports disclosed in other securities markets.
Definitions
Items Definitions
Changan Auto, Changan
Refers to Chongqing Changan Automobile Co., Ltd.
Automobile, the Company
China South Industries Group Corporation, the Company’s actual
CSG Refers to
controller
China Changan Automobile Group Co., Ltd., formerly known as China
China Changan Refers to
South Industries Automobile Co., Ltd., a subsidiary company of CSG
Chongqing Changan Industry (Group) Co., Ltd., formerly known as
Changan Industry Refers to
Changan Automobile (Group) Co., Ltd., a subsidiary company of CSG
Nanjing Changan Automobile Co., Ltd., a subsidiary company of the
Nanjing Changan Refers to
Company
Hebei Changan Automobile Co., Ltd., a subsidiary company of the
Hebei Changan Refers to
Company
Hefei Changan Automobile Co., Ltd., a subsidiary company of the
Hefei Changan Refers to
Company
Changan Bus Refers to Baoding Changan Bus Co., Ltd., a subsidiary company of the Company
Chongqing Changan Automobile International Sale Service Co., Ltd., a
CIC Refers to
subsidiary company of the Company
Changan Ford Refers to Changan Ford Automobile Co., Ltd., a JV of the Company
Changan Mazda Refers to Changan Mazda Automobile Co., Ltd., a JV of the Company
CME Refers to Changan Mazda Engine Co., Ltd., a JV of the Company
Jiangling Holding Refers to Jiangling Holding Co., Ltd., an associate of the Company
Changan Finance Refers to Changan Automobile Financing Co., Ltd., an associate of the Company
China South Industries Group Finance Co., Ltd., a subsidiary company of
CSG Finance Refers to
South Industries
United Prosperity Investment Co., Ltd., a subsidiary company of China
UPI Refers to
Changan
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Chongqing Changan Automobile Company Limited 2021 Annual Report
Chapter 2 Company Profile and Main Financial Indexes
I. Basic Information
Stock abbreviation Changan Automobile, Changan B Stock Code 000625, 200625
Listed on Shenzhen Stock Exchange
Company name in Chinese 重庆长安汽车股份有限公司
Chinese abbreviation 长安汽车
Company name in English Chongqing Changan Automobile Co., Ltd.
Legal representative Zhu Huarong
Registered address No. 260, East Jianxin Road Jiangbei District, Chongqing
Post code of the registered
400023
address
No. 260, East Jianxin Road, Jiangbei District, Chongqing.
Office address
Building T2, No. 2, Financial City, No. 61 Dongshengmen Road, Jiangbei District, Chongqing.
Post code of the office address 400023
Website http://www.changan.com.cn
E-mail address cazqc@changan.com.cn
Ⅱ. Contact Information
Secretary of the Board of Directors Securities affairs representative
Name Zhang Deyong, Li Jun
Building T2, No. 2, Financial City, No. 61
Contact address Dongshengmen Road, Jiangbei District,
Chongqing
TEL 023-67594008
FAX 023-67866055
E-mail address cazqc@changan.com.cn
Ⅲ. Information Disclosure and Filing Site
Stock exchange website where this Report is discl
http://www.szse.cn
osed
China Securities, Journal, Securities Times, Securities Daily, Shanghai
Media and website where this Report is disclosed
Securities News, Hong Kong Commercial Daily and www.cninfo.com.cn
Place where this Report is lodged Board Office of the Company
IV. Changes of Registration Information
Organization Code 9150000020286320X6
Changes in the main business since the
Not applicable
Company’s listing
Changes of controlling shareholder since 1. In December 2005, according to the restructuring program on automobile business, the
incorporation (if any) Company’s actual controller, CSG transferred all state-owned shares of Changan
Automobile (Group) Company Limited (“Changan Group”) as part of funding for China
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Chongqing Changan Automobile Company Limited 2021 Annual Report
South Industries Automobile Co., Ltd.. In March 2006, all shares held by Changan Group
have been transferred to China South Industries Automobile Co., Ltd.. China South
Industries Automobile Co., Ltd. became the majority shareholder of the Company, and
Changan Group holds zero share since then.
2. In July 2009, with the approval of State Administration for Industry and Commerce,
“China South Industries Automobile Co., Ltd.” changed its name to “China Changan
Automobile Group Co., Ltd.”. No change occurred in its property, ownership and control
of the Company.
3. In February 2019, “China Changan Automobile Group Co. Ltd.” changed its name to
“China Changan Automobile Group Co., Ltd.” with the approval of Beijing
Administration for Industry and Commerce. The company changed from a joint stock
company to a limited liability company.
V. Other Relevant Information
The audit firm employed by the Company
Name Ernst & Young Hua Ming LLP (Special General Partnership)
Level 16, Ernst & Young Tower, Oriental Plaza, No. 1 East Chang An Avenue, Dong Cheng
Office address
District, Beijing, China
Accountants writing signatures Qiao Chun, Yuan Yong
The independent sponsor employed by the Company to exercise constant supervision over the Company in the reporting period
√ Applicable □Not applicable
Sponsor
Name Office address Supervision period
representative
CITIC Securities 21st Floor, CITIC Securities Building, No. 48 He Yang, Chen October 26, 2020 -
Co., Ltd. Liangmaqiao Road, Chaoyang District, Beijing Shumian December 31, 2021
The independent financial advisor employed by the Company to exercise constant supervision over the Company in the reporting
period
□ Applicable √ Not applicable
VI. Key Accounting Data and Financial Indexes
Does the Company need to retrospectively adjust or restate the accounting data of previous years?
√Yes □ No
Reason: Changes in accounting policies
YoY
2020 change 2019
2021
(%)
Original Restated Restated Original Restated
Operating revenue (RMB) 105,141,877,237.05 84,565,544,146.58 84,565,544,146.58 24.33% 70,595,245,133.28 70,595,245,133.28
Net profit attributable to
shareholders of the 3,552,463,320.03 3,324,251,164.16 3,324,251,164.16 6.87% -2,646,719,356.53 -2,646,719,356.53
Company (RMB)
Net profit after deduction
of non-recurring gains or
losses attributable to 1,652,771,338.77 -3,249,984,527.77 -3,249,984,527.77 150.85% -4,762,446,597.61 -4,762,446,597.61
shareholders of the
Company(RMB)
Net cash flow from
operating activities 22,971,723,210.84 10,675,953,479.24 10,675,953,479.24 115.17% 3,881,748,238.39 3,881,748,238.39
(RMB)
Basic earnings per share
0.47 0.68 0.48 -2.08% -0.55 -0.39
(RMB/share)
Diluted earnings per share
0.46 non-applicable non-applicable - non-applicable non-applicable
(RMB/share)
Weighted average ROE (0.60)
6.53% 7.13% 7.13% -5.86% -5.86%
(%) ppts
YoY
31 December 2021 31 December 2020 31 December 2019
change
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Chongqing Changan Automobile Company Limited 2021 Annual Report
(%)
Original Restated Restated Original Restated
Total assets (RMB) 135,404,623,479.63 120,915,805,349.52 118,265,186,394.86 14.49% 97,617,053,590.38 94,994,082,789.76
Net assets attributable to
shareholders of the 55,732,932,103.72 53,410,193,236.09 53,410,193,236.09 4.35% 44,028,312,743.66 44,028,312,743.66
Company (RMB)
Reasons for changes in accounting policies and corrections of accounting errors
In order to make the Company’s accounting more accurate, objective and fair to reflect the Company’s financial status and operating
results, the Company’s government subsidy accounting policy is changed from January 1, 2021, from the gross method to net method.
For details, see Announcement on Changes in Accounting Policies (Announcement Number: 2021-43).
The lower of the Company’s net profit before and after deduction of non-recurring gains and losses in the most recent three fiscal years
is negative, and the audit’s report of last year shows that the Company’s ability to continue operations is uncertain.
□Yes √ No
The lower of the net profit before and after non-recurring gains and losses is negative.
□Yes √ No
VII. The Differences between Chinese Accounting Standards and International Financial
Reporting Standards
1. Differences in net profit and net asset attributable to shareholders in financial report disclosed in accordance with International
Financial Reporting Standards and Chinese Accounting Standards
□ Applicable √ Not applicable
No difference during the reporting period.
2. Differences of net profit and net assets disclosed in financial reports prepared under Overseas Financial Reporting Standards and
Chinese Accounting Standards
□ Applicable √ Not applicable
No difference during the reporting period.
3. Reasons for differences in accounting data under Chinese Accounting Standards and International Financial Reporting Standards
□ Applicable √ Not applicable
VIII. Key Financial Indexes of 2021 by Quarter
Unit: RMB
First Quarter Second Quarter Third Quarter Forth Quarter
Operating revenue 32,027,320,806.54 24,757,311,092.53 22,414,874,166.50 25,942,371,171.48
Net profit attributable to shareholders of the
853,585,805.31 875,659,403.29 1,263,000,422.10 560,217,689.33
Company
Net profit attributable to shareholders of the
Company after deducting non-recurring 720,085,110.43 19,671,861.65 1,000,036,577.00 -87,022,210.31
gains and losses
Net cash flow from operating activities 7,236,025,541.31 10,462,801,329.06 4,976,530,974.21 296,365,366.26
Whether there are significant differences between the above-mentioned financial indexes or its total number and the relevant
financial indexes disclosed in the Company’s quarterly report and semi-annual report
□ Yes √ No
IX. Items and Amounts of Non-Recurring Gains and Losses
√ Applicable □Not applicable
Unit: RMB
Item 2021 2020 2019
Gains or losses on disposal of non-current
assets (inclusive of impairment allowance 745,601,530.26 29,465,046.07 56,658,864.17
write-offs)
Government subsidies charged to current gains
or losses (exclusive of government subsidies 1,335,952,105.80 797,901,407.24 1,537,625,620.93
given in the Company’s ordinary course of
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Chongqing Changan Automobile Company Limited 2021 Annual Report
business at fixed quotas or amounts as per the
government’s uniform standards)
Gains or losses on fair-value changes on held for
trading financial assets (exclusive of the
42,078,804.00 2,035,390,665.86 889,154,888.69
effective portion of hedges that arise in the
Company’s ordinary course of business)
Gains and losses on entrusted loans 6,959,316.00 13,768,160.42 6,771,226.43
Losses from business combination not under
-6,937,641.07 -
common control
Gains from disposal of long-term equity
1,398,196,002.13 -
investments
Gains from the remeasurement of the remaining
2,246,681,836.54
equity at fair value after the loss of control
Non-operating income and expense other than
90,085,373.52 -27,519,486.75 -135,258,766.14
the above
Deferred payment interest on funds charged to
11,853,260.69 17,795,918.37 28,553,488.65
non-financial corporations
Minus: Influenced Amount of Income Tax 196,630,848.39 -91,514,483.25 250,459,302.04
Non-controlling interests effects (after tax) 136,207,560.62 22,020,700.13 17,318,779.61
Total 1,899,691,981.26 6,574,235,691.93 2,115,727,241.08
Particulars about other gains and losses that meet the definition of non-recurring gain/loss
□ Applicable √ Not applicable
No such cases for the reporting period.
Explanation of why the Company reclassifies recurrent gain/loss as an Extraordinary gain/loss item listed in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Extraordinary Gain/Loss
Items
□ Applicable √ Not applicable
No such cases for the reporting period.
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Chongqing Changan Automobile Company Limited 2021 Annual Report
Chapter 3 Management Discussion and Analysis
I．Industry Overview in 2021
1. The industry analysis
In 2021, the auto industry carried forward Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era under the
central Party and State Council leadership despite complicated and difficult situations such as the ongoing COVID-19 in the world and
shortages of automotive chip supply. Committed to the new development philosophy, the auto industry maintained stable production
and sales throughout the year with increasing momentum through hard work and determination to overcome challenges, ending the
three-year downturn since 2018. Rapid growth in new energy vehicles drove a significant increase in Chinese brand passenger vehicles,
showing resilience and momentum of development. The automobile industry has made new outcomes in the first year of the “14th
Five-Year Plan”. The details are as follows.
In 2021, the cumulative production and sales of the auto industry reached 26.082 million and 26.275 million units, up by 3.4%
and 3.8% year-on-year, respectively. The sales marked the first positive growth in the past four years with the biggest production and
sales volume in the world for the 13th consecutive year. Due to chip shortages and other factors, the auto market showed initial growth
and turned downward. The sales volume in the first four months maintained year-on-year growth and continued to decline from March.
The year-on-year growth rate has turned negative since May, and the decline in the fourth quarter gradually narrowed.
Despite the chip shortages and rising prices of raw materials, passenger vehicle production and sales reached 21.408 million and
21.482 million units respectively, up by 7.1% and 6.5% year-on-year. The production and sales of passenger vehicles also ended the
three-year downward trend since 2018, and were better than the industry overall. Across the industry, sedan sales reached 9.934 million
units, a year-on-year increase of 7.1% and 0.6 percentage points higher than the passenger vehicle industry; SUV sales volume
continued to exceed that of sedans, reaching 10.101 million units, a year-on-year increase of 6.8%. As China switched to the VI emission
standard with customers waiting to see the effect of the new policy of light-truck licensing and registration, and the slowdown in
investment growth of the real estate and infrastructure industries, the production and sales of commercial vehicles declined in 2021,
standing at 4.674 million and 4.793 million, down by 10.7% and 6.6% year-on-year, respectively.
New energy vehicles showed outstanding performance with rapid sales growth. Thanks to favorable new energy vehicle policies,
rising product supply, and a higher level of consumer recognition, the production and sales of NEVs reached 3.545 million and 3.521
million in 2021, up by 150% year-on-year. It was the highlight of the automotive industry in 2021. The sales of new energy passenger
vehicles reached 3.334 million units, a year-on-year increase of 167.5%, far better than the overall passenger vehicle market. The
production and sales of pure electric passenger vehicles exceeded 2.7 million units. Meanwhile, the market share of new energy
passenger vehicles went up from 6.6% at the end of 2020 to 15.5%, about 1.5 times higher than last year. New energy passenger
vehicles drove the growth of the passenger vehicle market and even supported the positive growth of the auto market against supply
chain crises such as chip shortages. With suitable positioning of products in the market and an accurate understanding of consumer
demand, some traditional manufacturers did well in market segments such as the new energy mini car and galvanized the market
segment in turn. There were leading players in the NEV market that set the standard for the industry with diverse product portfolios
and different technological and technical strengths. Startups with internet genes showed unique competitive edges with brand-new
products, services, and experiences to attract consumers.
The market share of narrow-sense passenger vehicles of Chinese brands climbed to a historical high. In 2021, the narrow-sense
PV market was affected by continuous chip shortages, but homegrown Chinese brands suffered less than the joint venture brands with
differentiated product positioning and more flexible mechanisms. Moreover, Chinese brands seized the opportunity of NEV
development, rolling out EV/PHEV products. Not only did they benefit from the trend of drastic NEV growth, but also increased the
market share of Chinese brands. In 2021, the cumulative sales volume of narrow-sense Chinese brand PV was 9.366 million units, a
year-on-year increase of 25.2%. The market share increased by 6.6 percentage points to 44.2% compared with 2020, a record high for
Chinese brands in the narrow-sense PV market since 2017 and a U-turn from the continuous decline since 2018.
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Chongqing Changan Automobile Company Limited 2021 Annual Report
Source: China Automobile Industry Newsletter of Production & Sales and other industry information released from the China
Association of Automobile Manufacturers.
2. Changan Auto’s performance
In 2021, guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, Changan Automobile
implemented the new development concept starting from the new development stage. We created a new development dynamic with
"steadfast reform, innovation and breakthrough, digital-driven development, and efficiency enhancement" as the keys. We carried
forward the Third Business Venture-Innovation and Entrepreneurship Program, pursued high-quality development, and worked hard to
build our ecology of the auto industry. Thus, we gradually strengthened our position in the industry and development quality, off to a
good start in the “14th Five-Year Plan”.
Facing repeating outbreaks of COVID-19, chip supply shortages, electricity consumption restrictions and industrial production
restrictions, and profound changes in the auto industry against the backdrop of unprecedented changes in a century, Changan
Automobile made arduous efforts on operation quality with stronger marketing and sales capability for better scale, market share, and
profits. Our sales volume reached 2.301 million, 14.8% higher than 2020, and the market share increased by 0.8 percentage points
year-on-year, ranked fourth again among automobile groups. We sold 1.755 million units of homegrown brands, a year-on-year increase
of 16.7%, second in the industry. We ranked second among narrow-sense Chinese brand PV manufacturers, and narrowed the gap
between us and the industry-first by 63.7% compared with 2020. We marked the Centenary of the CPC with excellent results!
3. Industrial policies
(1) NEV financial subsidies
On December 31st 2021, four ministries including the Ministry of Finance issued the Notice on the Financial Subsidy Policy for
Promotion and Application of New Energy Vehicles in 2022. In 2022, the current technical index system, framework and threshold
requirements for subsidies will not change. For NEVs for non-public transport, subsidies will be reduced by 30% on the 2021 base and
subsidies for NEVs for public transport will be reduced by 20%. By December 31st 2022, the subsidy policy for purchasing NEVs will
terminate with no subsidies for vehicles registered afterwards.
Manufacturers can adjust the product portfolio in a consistent way and improve profitability per unit with unchanged subsidy
technical index and stable and predictable rhythm of subsidy phasing out. The phasing out and termination of subsidies will increase
pressure of operation.
(2) Dual credit policy
In February 2021, the Ministry of Industry and Information Technology (MIIT) issued the Notice on the Management of Corporate
Average Fuel Consumption and New Energy Vehicle Credits for Passenger Vehicle Companies in 2020. First, off-cycle
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Chongqing Changan Automobile Company Limited 2021 Annual Report
technologies/devices are included in the fuel consumption calculation. Exemption of 0.15 liters, 0.1 liters, and 0.15 liters (0.05 liters
for 12 volts) in fuel consumption calculation per 100 kilometers will be given to vehicles with off-cycle technologies such as start-stop,
gear shift indicator, braking energy recuperation technologies. Second, enterprises can use NEV credits produced in 2021 to offset the
negative credits generated in 2020.
The two policy measures alleviated the imbalance between the supply and demand of positive and negative credits due to the
COVID-19, and eased the credit pressure on manufacturers.
(3) Lifting the joint venture shareholding restrictions
On December 27, 2021, the National Development and Reform Commission issued the Special Administrative Measures
(Negative List) for Foreign Investment Access (Edition 2021). Starting from January 1, 2022, China will remove the foreign ownership
limits in passenger vehicle manufacturing and the restrictions on foreign companies from establishing two joint ventures.
After the Chinese government lifted the joint venture shareholding restrictions, the market competition that determines business
survival will become fiercer with faster pace of mergers/reorganizations. The rapid development of new technologies such as
electrification and intelligence and new business models such as the sharing business may have a greater impact on joint venture
companies.
(4) Auto data security
In August 2021, five departments including the Cyberspace Administration of China issued the Several Provisions on the
Management of Automobile Data Security (for Trial Implementation). It stipulates that automobile data processors should act upon
principles such as "in-car processing", "no collection by default", “proper precision" and “desensitization” to reduce the disorderly
collection and abuse of vehicle data. Processors dealing with important data should store the important data in China in accordance
with the law and strengthen the protection of such data.
This regulation puts stricter requirements on information collection outside and in cars for auto manufacturers.
4. Major laws and regulations
(1) Market access
As the automobile market develops in China, mandatory standards and technical regulations are needed for the legal management
of auto products. China is also developing management system for automobile product certification in line with the time. Under the
new round of technological revolution and industrial transformation, the strategic direction of the auto industry is with intelligent
connected vehicles (ICV). Therefore, while the access system for traditional vehicles is improving, the automotive authorities are also
doing research to promote the access system for ICVs.
(2) Standards
(A).In December 2020 and February 2021, the Vehicle Event Data Recorder System (GB 39732-2020) and the Steering System
of motor vehicles-Basic requirement (GB 17675-2021) were released respectively, and they will be enforced on January 1st, 2022.
According to GB 39732-2020, a vehicle event data recorder system records the vehicle motion status for cause analysis and
liability determination after accidents. Steering System of motor vehicles-Basic requirement specifies the definitions of terms, technical
requirements, and test methods for automotive steering systems. Compared with the previous version of GB 17675-1999, the new
standard comprehensively considers various vehicle types and steering systems to revise the scope of application and technical
requirements while adding requirements such as electromagnetic compatibility and functional security of steering system electronic
control units, and failure alerts.
The changes are clear requirements on the new electrification and intelligence technology of automobiles. Manufacturers must
meet the corresponding requirements when developing new technologies, which will lead to larger investment in R&D. The costs of
the vehicle will also increase, but the security and reliability of vehicles will be greatly improved.
(B).In February 2021, the mandatory national standard Fuel Consumption Limits for Passenger Vehicles (GB19578-2021) was
released, which stipulates the limits and test methods for fuel consumption of passenger vehicles. The evaluation system of fuel
consumption limits is linear based on the curb weight, instead of divided into different stages based on groups of curb weight. The test
standard switches from the NEDC drive cycle to the WLTC cycle. The standard was implemented from July 1, 2021, for newly certified
models, and will be implemented from January 1, 2023, for models already certified.
New vehicles of Changan Auto have abided by the new standard and models already certified are also being adjusted in line with
the product planning.
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Chongqing Changan Automobile Company Limited 2021 Annual Report
II. Analysis of Core Business in 2021
As an automobile manufacturer, Changan Automobile’s businesses cover the R&D, manufacturing, and sales of vehicles
(including passenger vehicles and commercial vehicles), as well as the R&D and production of engines. At the same time, we
proactively develop new businesses such as mobility, car services, new marketing and sales, and battery swapping, and steps up efforts
in exploring finance, used cars and other fields to build a comprehensive industrial ecology and become an intelligent, and low-carbon
mobility technology company.
With “Leading Auto Culture for Better Life” as our mission, we make efforts to develop NEVs and intelligent vehicles while
adhering to the philosophy of “low-carbon and environmental protection, technology and intelligence”. By leading auto culture through
scientific innovation, we strive to provide customers with high-quality products and services. After years of development, we have
homegrown brands such as Changan, Oshan, and Kaicene, and joint venture brands such as Changan Ford and Changan Mazda to
produce and sell joint venture brand vehicles. We launched many iconic homegrown brands models including the CS series, Eado
series, UNI series, Oshan series and Shenqi while the joint venture companies have many famous products such as the all-new Focus,
Escort, Escape, Explorer, Aviator, Axela, CX-5 and CX-30. Meanwhile, Changan Automobile rolls out new energy vehicles such as
Eado EV, BenBen E-star and CS55 E-Rock that are well received among consumers.
Our operation attaches "equal importance to homegrown and joint venture brands". We make determined efforts in developing
iconic homegrown brands, with Changan, Oshan, and Kaicene brands as independent entities. For Changan Ford, Changan Mazda and
other joint ventures, we adopt investment management and control and continue to deepen mutual trust and cooperation with partners.
1. The Company’s business development in 2021
(1) The Company overcame challenges such as chip shortages with robust growth of homegrown brands,
stable growth and momentum of joint venture brands.
Faced with the challenge of chip shortages across the industry, Changan Automobile took targeted and diverse measures to
effectively defuse the supply risks. On the one hand, we constantly adjusted sales demand and production plans and sorted out supply
risks and shortages of parts in advance based on research on the supply-demand situation. With the focus on key suppliers, we adopted
a supply guarantee plan featuring “a differentiated policy for each plant”, and tried our best efforts to minimize the impact of supply
chain fluctuations on production. On the other hand, we worked hard to strengthen core capabilities in chips, cloud, key algorithm, data
service operation, and software engineering. We aimed to establish a secure and controllable new ecology of the modern automobile
industry chain.
In 2021, Changan PV brand and Oshan sold 966,000 and 228,000 vehicles respectively, up by 20.0% and 49.0% year-on-year
respectively, and significantly better than the narrow-sense PV industry. Changan passenger vehicle sales and overseas sales both hit
record highs. For the first time, NEV sales exceeded 100,000 units, a year-on-year increase of over 200%, far better than the industry.
Oshan sales reached 200,000 units again with initial outcomes of transformation.
At the same time, Changan Ford achieved yearly sales of 305,000 vehicles, a year-on-year increase of 20.3%, and increasing for
the second year. Among its sales, SUV and premium sedans accounted for more than 70%. Lincoln brand completed sales of 89,000
vehicles, a year-on-year increase of 109.1%.
Iconic products showed robust performance. According to retail sales based on insurance registration data, CS75PLUS maintained
its leading position in the compact SUV market of Chinese brands in terms of retail and Eado PLUS was two ranks higher on the
compact sedan sales of all brands. UNI-T maintained medium to high positions in the competition of joint venture and high-end
homegrown brands. UNI-K was ranked 6th in midsize SUV retail of Chinese brands. The monthly sales of Oshan X5 kept at ten
thousand level and it was ranked 6th in compact SUV retail of Chinese brands. Lincoln Corsair had remarkable performance, ranked
fourth in the premium compact SUV retail of all brands. (Source: China Automotive Technology & Research Center insurance
registration data and retail sales)
We enhanced top-level planning and innovated the marketing and sales model by setting up the Group Intelligent Marketing and
Sales Center for future competition. We made the ecosystem planning of “Dubhe Intelligent Connected Network” for the transformation
towards sharing and light-asset network scenarios and efficient use of group network resources. Changan Automobile established the
UNI Service framework as the UNI Service Space completed construction in 5 cities with the pilot operation of three business modes.
Intelligent maintenance and repair services, and modification reservations were officially launched to provide innovative services that
are efficient, convenient, intelligent and active.
(2) Speed up strategic transformation and further optimize industrial layout
Changan Automobile promoted the implementation of the 14th Five-Year Plan in an orderly manner, updated and launched the
Innovation and Business Venture Plan 5.0. The company successfully held the first Tech Ecosystem Summit, formulated and released
the “New Auto + New Ecology” strategy, and built a new business model characterized by the integration of cloud, network, platforms
and user scenario. Based on the latest policies for carbon peak and carbon neutrality, the company formulated the 14th Five-Year Plan
for science and technology, clearly put forward the strategy driven by “Technology+ Ecology”, and steadily promoted the layout of
Changan Technology Company.
The Company has been creating intelligent products with leading performance with the progress of Dubhe Plan. APA 6.0 remote
smart parking assist was launched in 2021, which is able to find parking space within 30meters through smart phone remote control,
11
Chongqing Changan Automobile Company Limited 2021 Annual Report
pulling into a small parking spot with industry-leading precision. A dozen of functions for smart cockpit and car controls including AR
navigation, four-screen display, gesture control, track mode, intelligent welcome/leaving, bringing users a superior car experience. At
the same time, Changan Automobile accelerated the building of intelligence core capabilities of “chips, control units, mapping,
components, cloud, network and algorithms”. The company established the Advanced Technology Research Institute to carry out
research on advanced technologies including chip design, crowd mapping, and artificial intelligence. And the Changan Automobile
Intelligent Computing Center was built to support intelligent driving and connected vehicle services. On this basis, the first Changan
Automobile Tech Ecosystem Summit was held to build the next-generation intelligent vehicle super digital platform SDA with partners,
which will be the first to realize the service-oriented centralized ring network architecture in 2023.
NEV production layout is fully optimized with the steady progress of “Mission of Shangri-La” NEV Strategy. The company has
released the new generation ultra-integrated electric drive and battery with zero fire risk. We completed the building of the “Smart
Core” smart vehicle domain controller (SVDC), and launched the in-house compact all-electric platform which is highly scalable,
highly compatible and versatile. We cooperated with AVIC and CATL to improve the safety and basic performance of batteries for
NEVs. The Yubei Plant upgrade program and the commissioning of electric drive production line in Chonqing helped accelerate the
layout of e-motor, e-drive and e-controller.
(3) Accelerate innovation and transformation to enhance all-around competitiveness
Changan is boosting the lineup with the launch of Changan UNI-K, UNI-V, 2022 UNI-T, the second generation CS75 PLUS, 2021
EADO PLUS, Benben E-Star, Oshan X7 PLUS, 2022 Kaicene F70, Ford EVOS and 2021 MAZDA3 Axela.
Being Customer-centric, Changan is committed to improving customer service capabilities throughout the life cycle covering car
purchase, selling, usage, repair and service to meet different needs of customers in different scenarios. We upgraded the five promises
of integrity service version 3.0, improved the organizational management system of customer service, and engaged the experience
officers in the product development process. We improved customer pain points through the four actions, two systems and service
experience innovation of TOP 1 Program for Customer Experience. Our Sales Satisfaction Index (SSI) and Customer Service Index
(CSI) reached 98.5% in 2021, ranking highest among homegrown brands in sales satisfaction released by CQA. We strengthened
customer management, enhanced fan interaction, and held activities such as Fan Festival, sustainable events and road trips to historic
places of Changan to maintain efficient interaction with customers.
We pushed ahead with Digital Management Project and accelerated the pace of digital transformation. We improved the top-level
design of digital management, building the platform-based industrial architecture on the ground and in the cloud. Based on hybrid
cloud architecture, we accelerated the building of digital infrastructure including Changan multi-cloud management platform. The
newly built Changan & Huawei Low Code Joint Innovation Lab armed Changan with agile digital development capability. The capacity
building of nearly 400 technologies in six simulation fields was completed through CAE (Computer Aided Engineering) simulation
ecosystem. The collaborative product development system integrated product development around business processes. Customer data
platform promoted data-driven customer management scenarios to achieve sales lead improvement and customer conversion. We
connected real-time data of the whole value chain in Order-to-Delivery process.
Changan joined hands with partners for a win-win future. In partnership with Huawei and CATL, we launched a new premium
intelligent EV brand Avatr and debuted its first model Avatr 011. We cooperated with partners including Horizon Robotics, BOE, and
BrightMap to build future-oriented, well-controlled and industry-leading technical capabilities. The cooperation between Changan and
Lincoln brand put new models into production including Corsair, Nautilus and Aviator. Changan Ford sold 305,000 units in 2021, an
increase of 20.3% year-on-year, turning its operation into profit.
2. New models launched in 2021
UNI-K adopts the design language of new technology aesthetics with
borderless grille and highly recognizable airplane-like cockpit,
presenting the beauty of future technology. The model is equipped with
intelligent driving assistance system and IMS intelligent cockpit
interactive system can identify and actively respond to the scenario-
based needs of users. BlueCore new generation 2.0 T engine delivers a
power peak of 233 hp and a maximum torque of 390Nm. Aisin 8AT
transmission and BorgWarner AWD system bring flexible acceleration
in multiple working conditions. The interior comes with five-seat layout,
Zero Gravity seats, and rear seat angle adjustment. 2890 mm wheelbase
brings comfortable rear space.
UNI-K
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Chongqing Changan Automobile Company Limited 2021 Annual Report
The 2022 UNI-T meets the diversified car needs of young consumers
with its all-new design, highly intelligent infotainment system and new
generation Blue Core engine. UNI-T is designed by Changan’s global
design team composed of over 400 designers from 25 countries. UNI-T
comes with the highly recognizable borderless grille, delicately curved
body and V-shaped spoiler. The UNI-T Sport version is equipped with
Aurora Sport Package, 20-inch matte black blade wheels and sport
calipers with striking colors, perfectly presenting the sporty design for
young customers. BlueCore NE 1.5T high pressure direct injection
engine and new BlueCore 2.0T engine promise stress-free driving.
2022 UNI-T
2022 CS75PLUS comes with 16 updates from four aspects. The front
design is sportier, and the integrated sports seats ensure more
comfortable driving experience. The model is environmentally friendly
with low carbon emissions enabled by BlueCore engine, Aisin automatic
transmission and Idle Stop-Start System on all editions. Electronic gear
shifter, driving recorder, rain sensor wipers and other intelligent features
make driving safer and more convenient. The upgrades such as electric
seat adjustment for the driver and co-driver, front seat heating, and
quilted seats make driving more comfortable.
2022 CS75 PLUS
The Second Generation CS55 PLUS adopts the design language of new
technology aesthetics, perfectly integrating aesthetics and function. The
grille creates an interplay of light and shadow. The smooth body surface
and star ring lights bring a sense of technology exclusively for young
people. The interior features connected dual screens, one-piece sports
seats, and a pass-through console, integrating aesthetics and functions.
Technologies such as IMS intelligent cockpit interactive system and HD
camera system with a 540-degree panoramic view bring intelligent
driving and infotainment system to achieve multi-scenario intelligent
interactions and make travel smarter. The model is equipped with
BlueCore NE 1.5T high pressure direct injection engine with a maximum
power of 138kW. The net power output increases by 8%. The fuel
consumption per 100 km is 5.9 L. The powerful and dynamic driving
Second Generation CS55 PLUS experience is enhanced by BlueCore seven-speed wet dual-clutch
transmission.
2021 Eado PLUS is equipped with BlueCore NE 1.4T high pressure
direct injection engine and BlueCore seven-speed wet dual-clutch
transmission. The peak power is 118kw. The maximum torque is 260
Nm. The fuel consumption per 100 km is only 5.6 L. The model comes
with features including a camera system with a 540-degree panoramic
view, inCall 3.0S intelligent interactive system, ACC S&G and LDW,
providing safe driving. The model offers two grille options, Star Eye
LED lights, two displays positioned on the dashboard and black and red
interior, making for a sporty and refined cockpit. The outstanding
services and high quality for ten years are secured by our first-class R&D
capability, advanced smart plants, the only comprehensive proving
ground in West China, refined assembly process, the CA-TVS test
verification system, and cooperation with more than 20 global partners.
2021 Eado PLUS
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Chongqing Changan Automobile Company Limited 2021 Annual Report
The all-new CS35 PLUS is equipped with BlueCore NE 1.4T high
pressure direct injection engine and BlueCore seven-speed wet dual-
clutch transmission, which ensures a smooth and highly efficient
transmission. The model draws on family DNA in the styling design such
as dot-matrix grille, whale tail spoiler, and front light bar. In-vehicle full
voice control and inCall 3.0 connectivity system offer fun of driving and
control. Panoramic sunroof, wireless charging, intelligent electric
tailgate, Forest Air climate system provide customers with tech-enabled
services. The camera system with a 360-degree panoramic view and six
All-New CS35 PLUS airbags ensure safe driving.
The Oshan X7 PLUS is equipped with BlueCore NE 1.5T high pressure
direct injection engine which delivers a maximum power of 138 kW and
a maximum torque of 300 Nm. With BlueCore seven-speed wet dual-
clutch transmission, the model ensures a smooth and highly efficient
transmission. Full-scenario OnStyle version 3.0 intelligent control
infotainment system with MediaTek octa-core chip enables voice
recognition within 0,5 seconds and 1 second face recognition within 1
second. The Geeker internal and external cameras with face intelligent
control system, APA5.0 parking assist, integrated karaoke function,
transparent chassis and 2786 mm long wheelbase bring comfortable and
high-quality experience.
Oshan X7 PLUS
Oshan X5 Sports Edition is equipped with orange sports package, The
waterfall grille, sports spoiler, quad exhaust, orange sports ambient
cockpit, exclusive sports steering wheel, integrated racing seats with S
logo and BlueCore NE 1.5T high pressure direct injection engine
coupled with BlueCore seven-speed wet dual-clutch, showing sporty
character inside and out.
Oshan X5 Sports Edition
3. New models to be launched in 2022
In 2022, the company will actively launch a variety of electrified, electric and intelligent products to accelerate the transformation
into an intelligent low-carbon mobility technology company.
(1) Three new all-electric vehicles to be launched to usher in a new digital intelligent life. The LUMIN shows what a top car
for regular commutes should be like through its impressive looks, safe configuration and comfortable driving experience. The upcoming
C385 is the first mass production model based on Changan's all-electric platform. Its forward-looking styling and intelligent
technologies meet the needs of the users and their families in all scenarios. Changan’s premium brand Avatr will launch its first premium
intelligent electric SUV, which is dedicated to meeting the consumption upgrade and promoting the transition into intelligent electric
vehicles. The model will be leading-leading in six aspects including styling, range and performance, fast charging, intelligent driving,
emotional intelligence and intelligent ecosystem.
(2) Accelerate the layout of UNI series electrified products and speed up the transformation into new energy strategy. In
2022, the company launched three models of UNI series. the already launched UNI-V presents the coupe design, equipped with unique
electric spoiler, electric hatchback door and large size sports tires. The new UNI intelligent cockpit with advanced intelligent driving
assistance system and APA6.0 remote intelligent parking assist aims to give users a distinctive sense of premium sports performance
and future technology, redefining a “DREAM CAR for young people”. The already-launched UNI-K iDD is the company's first mass
production model equipped with the BlueCore iDD hybrid powertrain, which delivers an all-electric range of 130 km (NEDC).
Intelligent technologies meet the needs of users in different scenarios. In the second half of the year, we will launch another hybrid
model to seize the hybrid car market and accelerate the transition to electrification.
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Chongqing Changan Automobile Company Limited 2021 Annual Report
(3) Accelerate the upgrading of CS series products, boost the portfolio and enhance competitiveness. The already launched
second generation CS75 PLUS is equipped with a new-generation BlueCore engine and Aisin 8AT on all editions. Also, the model is
fully upgraded with functions such as intelligent W-HUD, IMS intelligent interactive system, APA5.0+ remote valet parking system,
IACC and 12.3-inch connected dual screens. The powertrain and technologies bring powerful driving experience and intelligent travel
services, dedicated to meeting user demands for a compact SUV. Two CS series facelift models are expected to be launched in the
second half of the year with better product competitiveness through improvement of interior and exterior design, performance and
smart technologies.
Note: The features and configurations mentioned in “II. Analysis of Core Business in 2021” in Chapter 3 are not a true
representation of the features and configurations of actual vehicles. The information is subject to the official release.
Vehicle manufacturing production and operation during the reporting period
√ Applicable □ Not applicable
Production and sales of vehicles
Production Volume (Unit) Sales Volume (Unit)
YoY YoY
2021 2020 increase/decrease 2021 2020 increase/decrease
(%) (%)
By Region
Domestic 2,130,925 1,950,706 9.24% 2,141,390 1,921,209 11.46%
Overseas 159,140 82,454 93.00% 159,140 82,454 93.00%
Note: 1.The above sales and production volume includes vehicles produced and sold by the Company and its JVs and associates.
2. Production capacity: In 2021, the design capacity is 2.05 million vehicles. The capacity utilization rate reached 67%. In the
past three years, the backward production capacity for 0.96 million vehicles and 0.87 million engines have been shut down. The capacity
for 1.07 million connected and new energy vehicles, 0.6 million high-efficiency engines, and 0.1 million batteries have been built. The
capacity structure has been comprehensively upgraded.
Cause description of over 30% year-on-year increase/decrease
√ Applicable □ Not applicable
The production and sales volume in overseas regions increased by more than 30% mainly due to the recovery of post-epidemic
demand in overseas markets in 2021. In addition, the epidemic situation in China was quickly contained, and the rapid resumption of
work and production effectively met the needs of post-epidemic market recovery in overseas markets.
Building of supporting parts and components system
Different sourcing strategies developed for different products: We actively promoted centralized procurement of common
materials and integrated the common businesses of passenger cars, Oshan, Kaicene and other brands with centralized procurement
volume and bidding process to reduce procurement costs. For high-value and critical parts and components, we promoted strategic
cooperation with suppliers based on the part categories and development needs of the company. Together with our suppliers, we played
our respective strengths to achieve resource sharing, cost optimization, explored partnership and deep cooperation, building a Changan-
supplier community with a shared future with Changan characteristics.
We actively promoted the continuous improvement of the supporting system and involved constant communication across supply
chain channels. The company has established a supplier pool to quickly respond to program needs. We optimized suppliers' quality
assurance capability and organized course content of QCA (Changan Automobile Supplier Quality Capability Assessment System) for
more than 2,300 people from our suppliers. In the previous year, we completed QCA accreditations for 116 suppliers, manufacturing
capability assessment for 77 suppliers and laboratory accreditations for 30 suppliers, continuously promoting the improvement of
supplier quality management capabilities.
For Changan Automobile’s flagship models such as CS75 and CS55 series, the supporting parts are from in-house production and
external suppliers. Critical components such as the new-generation BlueCore high-pressure direct injection engine is developed in-
house, which can effectively control costs and enhance the quality control of critical components. Through partnership with world-
leading parts suppliers, we purchased Aisin 8AT Automated Manual Transmission, Chongqing Tsingshan Industrial seven-speed wet
dual clutch transmission, BorgWarner AWD system, Marelli matrix headlights, SONY high-quality audio system, TINNOVE
intelligent operating system, etc. External procurement integrates industry resources and selects suitable suppliers to make CS75 and
CS55 series models safer and smarter, so as to maximize corporate benefits and provide support for the company’s performance
improvement.
The production and operation of auto parts during the reporting period
□Applicable √ Not applicable
The company conducts auto finance business
□Applicable √ Not applicable
15
Chongqing Changan Automobile Company Limited 2021 Annual Report
The company conducts NEV-related business
√ Applicable □ Not applicable
Production and operation of new energy vehicles and parts
Production Volume (unit) Sales Volume (unit)
Production Capacity (Includes vehicles produced by the (Includes vehicles sold by the
By Category
(unit) Company and its JVs and Company and its JVs and
associates) associates)
New Energy Passenger Vehicle 750,000 108,941 106,417
New Energy Commercial Vehicle 170,000 6,834 7,708
Note: 1. The NEVs and ICE vehicles were produced on the same line.
2. The revenue from the sales of new energy vehicles of the Company is RMB 1,236 million in the reporting period.
New energy vehicle subsidies
During the reporting period, the Company received RMB 126 million subsidies for new energy vehicles.
III. Core Competence Analysis
In 2021, Changan Auto aimed to “improve the automotive industry and enhance the status and development quality of the industry”
and promoted the Third Business Venture — Innovation & Entrepreneurship Program. We have seen some outcomes of the
transformation and the steady growth of production and operation. The following core competencies have been built.
1. Product definition capabilities. With user needs at the center, the company strengthened capabilities including customer
insight, market research and product planning based on company strategy during the transition to new ecology and new auto. Based on
CASE (Connected, Autonomous, Shared & Electric), we expanded the software-defined vehicle capabilities, gained precise insight
into user needs, and improved product planning. In the past two years, the company launched seven new products, and the annual sales
of new products reached 566,000 units. At the same time, the company made clear forecasts of future market trends based on supply
and demand, rebuilt logic for market segments, and identified clear future transformation strategies and roadmap to electrification.
2. R&D of Leading Technologies. In 2021, Changan has invested hundreds of millions of yuan into technological research and
development and secured over 58 core technologies featuring intelligence and low-carbon over the past year, including ultra-integrated
electric drive, high-frequency pulse heating, APA 6.0, triple-clutch integration and digital twins development platform open to all
scenes. In 2021 Appraisal of Enterprise Technology released by National Development and Reform Commission, Changan Auto scored
97.1, ranking NO.1 in the automotive industry and NO.2 of all industries. As of 2021, Changan has gained 6,255 patents in China and
abroad, of which 1,633 are invention patents with 90 high-value invention patents included. The upgraded ability of technological
research and development would lay a solid technology foundation for Changan’s aim to be an intelligent and low-carbon mobility
tech company.
Breakthroughs are successively made in core technologies. The patent of CS75 Plus design has won the golden award of the 22 nd
WIPO-CNIPA Award for Chinese Outstanding Industrial Design, a breakthrough in national patent awards for Changan Auto. UNI-V,
the first car based on MPA was awarded “Top 10 Bodywork of China in 2021” and the BlueCore engine was awarded “Chinese Heart”
Top 10 Engine for a succession of 5 years. Chongqing Changan Automobile Software Technology Co., Ltd. was entitled National Hi-
Tech Enterprise with the gradual formation of ability-oriented awareness in research and development.
3. Branding. Changan has been actively building the management system and framework of brand running and the running system
of brand upgrading plan is in orderly progress. First, Changan focused on innovation and entrepreneurship plan and conducted brand
refreshment to upgrade brand value. Changan worked with Smart China Expo to successfully hold Changan Automobile Tech
Ecosystem Summit and issued six strategies of “New Auto, New Ecology” and product planning. Changan made the first Chinese show
featuring virtual competitors named “2060” with JSTV and shaped a company image for intelligence and low-carbon mobility. Also,
Changan participated in 4 major auto shows in Shanghai, Chongqing, Chengdu and Guangzhou, launched Vision 2030, collectively
displayed UNI series, CS series and new energy models in major events. Changan developed “Changan Cloud Auto Show” and the
online participation volume reached 12 million. Second, Changan has constantly built core brand label, improving customers’
preference and enriching brand property. Focus on BlueCore powertrain and partner and participation in projects such as CCTC (China
Touring Car Championship) to form strong labels contribute to the BlueCore models’ sales volume of over one million. Changan also
created projects such as New Year Eve IP “With You” to strengthen link with customers in order to make Changan brand increasingly
renowned and preferred with no hint for 3 consecutive years and rank NO.1 among homegrown brands.
4. Corporate Culture. In the long-term production and operation, Changan has formed unique corporation culture and created
strength in winning market share. Also, Changan has endeavored to cultivate “leading culture & entrepreneurial spirit of Changan” and
promote beliefs including “all-out efforts for the auto industry in China”. Changan perfected the appraisal mechanism of publicity and
thoughts, actively set leading examples and conducted hits like “Top 10 Changaners with Entrepreneurial Spirit” and “Advanced Team
of Efficiency”. Changan profoundly implemented “Double Care” policy to address difficulties for the staff and conducted “5 Offerings”
activity to benefit a total of 1.54 million person-time. Changan’s cultural activities keep activating employees’ potential to form sound
working environment and the cultural system is further improved.
5. Mechanism and Efficiency. The organizational structure is constantly upgraded to create a combination of “sub-headquarters
+ business group + sharing platform + incubation innovation”. The structure of talents is also optimized to focus on the cultivation of
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Chongqing Changan Automobile Company Limited 2021 Annual Report
young leaders and global talents. The market operation mechanism is also optimized to reinforce management of tenure and contract,
fulfill co-investment programs and give key staff restricted stocks, forming structural power and mechanism of market-oriented
incentives.
Having built the industrial structure of in the cloud and on the ground, a platform in the middle to all scenes on the ground” across
all scenarios, digital capacities are constantly improved. The building of “big platform” gives priority to value, users, efficiency and
platform. The top design of digital transformation is jointly made while the overall promotion philosophy concerning digital conversion
is clearer. The operation efficiencies are constantly upgraded with Digital Operation Program and the digital transformation is speeding
up.
IV. Analysis of Main Business
1. Overview
Compared with 2020, the company's operating income was RMB 105.142 billion, an increase of 24.33%. And it is caused by the
company's sales growth. The net operating cash flow was 22.972 billion yuan, an increase of 115.17% over last year, and the net cash
inflow increased significantly compared to 2020.
The company's net profit attributable to the shareholders of the listed company during the reporting period was 3.552 billion yuan,
and it was growth by 6.87% compared to 2020. The positive net profit mainly due to the increase in sales volume of the company's
own sector, and the improvement of operating quality. The substantial increase in profit year-on-year. In addition, the profitability of
the joint venture sector was generally good, and please see "IX. Analysis of Major Shareholding and Joint Stock Companies “under
this chapter.
Please refer to “II Analysis of Main Business” under this chapter.
2. Income and cost
(1) Revenue
2021 2020
YoY
Proportion of Proportion of
increase/decrease
Amount (RMB) operating revenue Amount (RMB) operating revenue
(%)
（%） (%)
Operating revenue 105,141,877,237.05 100% 84,565,544,146.58 100% 24.33%
By industry
Automotive business 105,141,877,237.05 100% 84,565,544,146.58 100% 24.33%
By product
Vehicles 99,238,618,010.70 94.39% 80,899,429,445.67 95.66% 22.67%
Services and others 5,903,259,226.35 5.61% 3,666,114,700.91 4.34% 61.02%
By region
China 97,338,405,886.42 92.58% 80,532,222,529.71 95.23% 20.87%
Overseas 7,803,471,350.63 7.42% 4,033,321,616.87 4.77% 93.48%
By sales model
Distribution 96,492,889,603.69 91.78% 80,108,603,983.72 94.72% 20.45%
Direct selling 2,745,728,407.01 2.61% 790,825,461.95 0.94% 247.20%
Others 5,903,259,226.35 5.61% 3,666,114,700.91 4.34% 61.02%
Note: The Company has 1,850 dealers at the end of the reporting period.
(2) The business, products, regions and sales model accounting for over 10% of the Company’s operating
revenue or operating profit
√ Applicable □ Not applicable
YoY YoY YoY
Operating Revenue Operating Cost Gross increase/decrease of increase/decrease increase/decrease
(RMB) (RMB) margin operating income of operating cost of gross margin
(%) (%) (%)
17
Chongqing Changan Automobile Company Limited 2021 Annual Report
By business
Automotive 1.90 percentage
105,141,877,237.05 87,648,705,534.14 16.64% 24.33% 21.56%
business points up
By product
1.02 percentage
Vehicles 99,238,618,010.70 83,904,632,708.41 15.45% 22.67% 21.21%
points up
By region
2.39 percentage
China 97,338,405,886.42 80,101,481,312.28 17.71% 20.87% 17.46%
points up
By sales model
1.17 percentage
Distribution 96,492,889,603.69 81,373,120,197.05 15.67% 20.45% 18.80%
points up
Where the statistical caliber of the main business data of the Company is adjusted, the data is subject to the main business data after
adjustment according to the caliber of the end of the report period in the latest year.
□Applicable √ Not applicable
(3) Whether revenue from physical sales is higher than service revenue
√ Yes □ No
By business Item 2021 2020 YoY increase/decrease (%)
Sales volume (unit) 2,300,530 2,003,663 14.82%
Production volume (unit) 2,290,065 2,033,160 12.64%
Automotive business
Inventory volume (unit) 64,557 86,837 -25.66%
Market share（%） 8.76% 7.92% 0.84 ppts
Note: The above sales and production volume includes vehicles produced and sold by the Company and its JVs and associates. The
analysis over market share is based on the data from China Automobile Industry Association.
Cause description of over 30% year-on-year increase/decrease
□Applicable √ Not applicable
(4) Performance of major sales and purchase contracts as of the end of the reporting period
□ Applicable √ Not applicable
(5) Cost
2021 2020
Proportion Proportion YoY
By business Item of of increase/decrease
Amount (RMB) Amount (RMB) (%)
operational operational
cost (%) cost (%)
Products 83,904,632,708.41 95.73% 69,223,514,501.66 96.01% 21.21%
Automotive
business Services and
3,744,072,825.73 4.27% 2,877,547,627.17 3.99% 30.11%
others
Total 87,648,705,534.14 100.00% 72,101,062,128.83 100.00% 21.56%
(6) Whether the scope of consolidation was changed during the reporting period
√ Applicable □ Not applicable
Due to business adjustment, the Company withdrew its shareholdings from Zhenjiang Demao Hairun Equity Investment Fund
Partnership (L.P.), and the Company no longer included it in the scope of consolidation during the reporting period.
(7) Major changes or adjustment in business, product or service of the Company in the reporting period
□ Applicable √ Not applicable
18
Chongqing Changan Automobile Company Limited 2021 Annual Report
(8) Major customers and suppliers
Major customers
Total sales revenue from top five customer (RMB) 9,723,543,699.19
Proportion of total sales revenue from top 5 customers in annual total sales
9.25%
revenue (%)
Proportion of total sales revenue from affiliated parties in the top five
4.82%
customers in annual total sales revenue (%)
The top 5 customers
Proportion of annual total sales
No. Customer Revenue (RMB)
revenue (%)
1 Customer One 3,026,668,377.50 2.88%
2 Customer Two 2,087,692,782.62 1.99%
3 Customer Three 1,720,993,540.69 1.64%
4 Customer Four 1,630,651,644.74 1.55%
5 Customer Five 1,257,537,353.64 1.20%
Total 9,723,543,699.19 9.25%
Other information regarding major customers
√ Applicable □ Not applicable
One of the above customers is an associate of the Company, and two customers are controlled by the same ultimate holding
company. Please refer to section 5 of note 9 “Related Party Relationships and Transactions” in Chapter 10.
Major suppliers
Total purchase amount from top five suppliers (RMB) 13,307,166,354.59
Proportion of total purchase amount from top five suppliers in annual total
15.18%
purchase amount (%)
Proportion of total purchase amount from affiliated parties of the top five
8.16%
suppliers in total annual total purchase amount (%)
Top 5 suppliers
Proportion of annual total purchase
No. Supplier Purchase amount (RMB)
amount (%)
1 Supplier One 4,785,993,498.79 5.46%
2 Supplier Two 2,934,636,477.07 3.35%
3 Supplier Three 2,367,887,858.81 2.70%
4 Supplier Four 1,718,821,680.22 1.96%
5 Supplier Five 1,499,826,839.70 1.71%
Total 13,470,193,697.57 15.18%
Other information regarding major suppliers
√ Applicable □ Not applicable
One of the above suppliers is a subsidiary of the same ultimate holding company. One of the above suppliers is controlled by the
same ultimate holding company. Please refer to section 5 of note 9 “Related Party Relationships and Transactions” in Chapter 10.
3. Expenses
Item 2021 2020 YoY Change (%) Explanation of major changes
With the growth of sales volume,
Selling expenses
4,645,654,234.59 3,405,913,730.59 36.40% advertising fees and sales service
(RMB)
fees increased rapidly.
Administrative
3,499,654,508.49 4,171,768,588.16 -16.11%
expenses (RMB)
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Chongqing Changan Automobile Company Limited 2021 Annual Report
With the increase of average
monthly monetary fund balance of
Financial costs
-780,923,197.18 -210,389,449.63 271.18% the Company during the reporting
(RMB)
period, the income from bank
deposit interests increased
R&D expenses
3,515,029,178.76 2,888,873,626.82 21.67%
(RMB)
4. Research and Development Investment
√Applicable □ Not applicable
Expected impact on the
Projects Purpose Progress Goals future development of the
Company
Enrich the Company’s Enrich the Company’s
Development of PLUS, Develop model year passenger
product portfolio and Complete the annual product portfolio and
UNI and other series of cars and launch the model as
improve performance of development task improve the performance
cars planned
new products of new products
Development of a new Develop new products to Develop a new generation of Develop new products to
Complete the annual
generation of plug-in enhance market plug-in hybrid models, and enhance market
development task
hybrid models competitiveness launch the model as planned competitiveness
Develop new products to Develop new smart electric Develop new products to
Development of new smart Complete the annual
enhance market vehicles, and launch the model enhance market
electric vehicles development task
competitiveness as planned competitiveness
Development of key
Complete the R&D of key
technologies for next- Improve new product Complete the annual Improve new product
technologies and realize
generation autonomous performance development task performance
industrial applications
driving
Break through the
Break through the technical Complete the development of
Development of a new- technical bottleneck and
bottleneck and strengthen Complete the annual the platform to achieve
generation all-electric strengthen electrification
electrification and development task platform-based synergy,
intelligent vehicle platform and intelligence
intelligence capabilities intelligence and electrification
capabilities
Development of intelligent Create a leading hardware Complete the annual Create a leading hardware and Transformation and
electric digital platform and software platform development task software platform upgrading of new vehicles
R&D staff
2021 2020 Change over the previous year (%)
Number of R&D staff (person) 7,269 6,636 9.54%
Proportion of R&D personnel 17.13% 16.47% 0.66 percentage points up
Education background —— —— ——
High School diploma or below (person) 281 281 0%
Bachelor’s degree (person) 5,467 4,982 9.74%
Master’s degree (person) 1,443 1,296 11.34%
Doctor’s degree (person) 78 77 1.30%
Age structure —— —— ——
Aged below 30 (person) 2,067 1,779 16.19%
Aged 30 - 40 (person) 4,421 4,176 5.87%
Aged above 40 (person) 781 681 14.68%
R&D Input
Change over the previous year
2021 2020
(%)
Amount of R&D Input (RMB) 4,826,946,503.77 3,876,737,668.81 24.51%
Proportion of R&D Input in
4.59% 4.58% 0.01 ppts
Operating Revenue (%)
Amount of Capitalized R&D
1,311,917,325.01 987,864,041.99 32.80%
Expenditure (RMB)
Proportion of Capitalized R&D
27.18% 25.48% 1.70 ppts
Expenditure in R&D Input (%)
Cause and effects of significant changes in composition of the R&D staff
□ Applicable √ Not applicable
20
Chongqing Changan Automobile Company Limited 2021 Annual Report
Cause for significant changes in the proportion of total R&D investment in operating revenue from the previous year
□ Applicable √ Not applicable
Cause and Reasonable Explanation of the major changes of the capitalization rate of R&D investment
□ Applicable √ Not applicable
5. Cash Flow
Unit: RMB
YoY Change
Item 2021 2020
(%)
Subtotal of cash inflows from operating activities 132,847,688,924.95 89,514,237,309.63 48.41%
Subtotal of cash outflows from operating activities 109,875,965,714.11 78,838,283,830.39 39.37%
Net cash flows from operating activities 22,971,723,210.84 10,675,953,479.24 115.17%
Subtotal of cash inflows from investing activities 1,450,454,543.93 6,821,367,307.44 -78.74%
Subtotal of cash outflows from investing activities 2,939,679,984.95 3,216,664,440.15 -8.61%
Net cash flows from investing activities -1,489,225,441.02 3,604,702,867.29 -141.31%
Subtotal of cash inflows from financing activities 1,826,518,075.81 8,600,917,401.42 -78.76%
Subtotal of cash outflows from financing activities 4,422,477,490.74 1,553,526,997.52 184.67%
Net cash flows from financing activities -2,595,959,414.93 7,047,390,403.90 -136.84%
Net increase in cash and cash equivalents 18,861,948,777.36 21,295,493,382.74 -11.43%
Description of major influence factors of significant change of relevant data on a year-on-year basis
√ Applicable □ Not applicable
In 2021, the “net cash flow from operating activities” increased by RMB 12.296 billion from the previous year, mainly due to the
significant increase of sales, and cash inflow increased caused by the payment structure changed, while dealer inventory turnover
accelerated, and the proportion of cash payment increased. “Cash received from the sale of goods and provision of services” increased
more than “cash paid for the purchase of goods and services”.
“Net cash flow from investing activities” decreased by RMB 5.094 billion compared with the previous year, mainly due to the
“cash received from the recovery of investments” significantly lower than the previous year.
The decrease of RMB 9.643 billion in “net cash flow from financing activities” was mainly due to a significant decrease in “cash
received for investment absorption” and “cash received from borrowings” compared with the previous year, while “cash paid for the
distribution of dividends, profits or interest repayments” increased significantly from the previous year.
Cause for the significant difference between net cash flows from operating activities and net profit in the reporting period
√ Applicable □ Not applicable
As for the significant difference between net cash flows from operating activities and net profit in the reporting period, please
refer to the Item 62, Note 5 “Supplementary Information of the Cash Flow Statement” in the Auditor’s Report.
V. Analysis of Non-Main Business
√ Applicable □ Not applicable
Whether it is
Amount (RMB) Proportion of profits (%) Explanation sustainable or
not
Please refer to the Item 51, Note 5
“Supplementary Information of the
Return on investment 1,013,650,091.28 26.53% Yes
Cash Flow Statement” in the
Auditor’s Report.
Profits or losses of
42,078,804.00 1.10% No
fair value change
Please refer to the Item 54, Note 5
Impairment losses on “Supplementary Information of the
-1,019,254,832.79 -26.68% No
assets Cash Flow Statement” in the
Auditor’s Report.
Non-operating
130,170,270.12 3.41% No
income
Non-operating
40,084,896.60 1.05% No
expenses
21
Chongqing Changan Automobile Company Limited 2021 Annual Report
VI. Analysis of Assets and Liabilities
1. Major Changes in Asset Composition
31 December 2021 1 January 2021 Increase/Decrea
Description of
Proportion of Proportion of se in Proportion
Amount (RMB) Amount (RMB) significant changes
total assets (%) total assets (%) (%)
Increase in net cash
Monetary fund 51,976,242,149.37 38.39% 32,001,775,600.07 27.06% 11.33% flow from operating
activities
Receivables 1,675,427,534.87 1.24% 2,141,197,139.45 1.81% -0.57%
Contract assets 1,151,292,247.36 0.85% 1,450,031,414.61 1.23% -0.38%
Inventories 6,852,874,420.59 5.06% 5,967,516,230.57 5.05% 0.01%
Investment property 6,649,426.60 0.00% 6,876,138.16 0.01% -0.01%
Long-term equity
13,245,374,860.55 9.78% 12,109,089,795.67 10.24% -0.46%
investment
Fixed assets 21,325,959,850.16 15.75% 24,300,590,850.02 20.55% -4.80%
Assets purchased for
Construction in subsidiaries did not
1,460,176,539.43 1.08% 1,048,036,148.70 0.89% 0.19%
progress meet the conditions
for construction
Reclassifications in
Right-of-use assets 66,313,062.98 0.05% - - - accordance with IFRS
16
Repayment of short-
Short-term loans 19,000,000.00 0.01% 578,000,000.00 0.49% -0.48%
term loans
Strong demand
stimulated sales
Contract liabilities 9,840,509,514.39 7.27% 4,471,158,190.75 3.78% 3.49% growth and the
deferred revenue from
dealers increased.
The long-term loans
Long-term loans 600,000,000.00 0.44% 955,300,000.00 0.81% -0.37% will be repaid within
one year
Reclassifications in
Lease liabilities 38,679,735.59 0.03% - - - accordance with IFRS
16
Foreign assets account for a relatively high proportion
□ Applicable √ Not applicable
2. Assets and liabilities measured at fair value
√ Applicable □ Not applicable
Unit: RMB
Changes in Accumulated Provision
Fair Value Fair Value for Amount of Amount of
Opening
Item Gains and Changes Impairment Purchase in Sales in Other Changes Closing Balance
Balance
Losses in Included in in Current Current Period Current Period
Current Period Equity Period
Financial assets
Financial assets
held for trading
(excluding 204,254,400.00 42,078,804.00 36,000,000.00 68,209,500.00 18,325,404.00 195,798,300.00
derivative
financial assets)
Investments in
other equity 691,990,000.00 9,419,600.00 701,409,600.00
instruments
Subtotal
896,244,400.00 42,078,804.00 9,419,600.00 36,000,000.00 68,209,500.00 18,325,404.00 897,207,900.00
financial assets
Others - - - - - - -
Total 896,244,400.00 42,078,804.00 9,419,600.00 36,000,000.00 68,209,500.00 18,325,404.00 897,207,900.00
Financial - - - - - - -
22
Chongqing Changan Automobile Company Limited 2021 Annual Report
liabilities
Note: The trading financial assets and investments in other equity instruments in the table above are detailed in “2. Trading Financial
Assets” and “11. Investments in Other Equity Instruments” in Note 5 of Auditor’s Report .
Whether there are major changes on measurement attributes for main assets of the Company in reporting period
□ Yes √ No
3. Limitation of asset rights as of the end of the reporting period
Unit: RMB
Item Book Value at the End of Period Limitation Reason
Monetary fund 2,458,325,314.38 As the deposit of acceptance bills
Bill receivable 7,207,264,940.74 As the pledge of issuing note payables
Intangible assets 17,242,713.12 As the pledge for working capital loans
Fixed assets 16,987,667.52 As the pledge for working capital loans
Total 9,699,820,635.76
VII. Analysis of Investments
1. Overall situation
√ Applicable □ Not applicable
Investment amount for the Investment amount for the
Item YoY Change (%)
reporting period (RMB) previous reporting period (RMB)
Equity investments 867,235,994.00 150,604,995.93 475.83%
Fixed assets 26,662,625.05 17,953,929.39 48.51%
Construction in progress 1,516,873,296.63 3,256,308,469.01 -53.42%
Intangible assets 61,121,381.78 211,491,248.37 -71.10%
Total 2,471,893,297.46 3,636,358,642.70 -32.02%
Note: Equity investment does not include investment in Chongqing Changan New Energy Automobile Technology Co., Ltd., which is
an associate of the Company.
Joint investment between the Company and professional investment institutions:
Subscribed Capital
Actual capital Completion
capital Subscription contribution in
Name of investment institutions contribution of
contribution ratio (%) the reporting
(RMB) registration
(RMB) period (RMB)
Nanjing Lingxing Equity
Investment Partnership (Limited 1,600,000,000.00 16.39% 741,732,283.00 1,600,000,000.00 Yes
Partnership)
Chongqing Changxin Zhiqi
Private Equity Investment Fund 250,000,000.00 49.8% 52,170,000.00 52,170,000.00 Yes
Partnership (Limited Partnership)
Chongqing Lianzhi Antou Equity
Investment Partnership (Limited 200,000,000.00 50.25% 0 0 No
Partnership)
Note: As of the end of the reporting period, the Company paid RMB 52.17 million to Chongqing Changxin Zhiqi Private Equity
Investment Fund Partnership (Limited Partnership), of which RMB 26.67 million was returned to the Company in March 2022.
2. The major equity investment obtained in reporting period
□ Applicable √ Not applicable
3. The ongoing major non-equity investment in reporting period
□ Applicable √ Not applicable
23
Chongqing Changan Automobile Company Limited 2021 Annual Report
4. Financial assets investment
(1) Security investments
√ Applicable □ Not applicable
Gains and
Book value Accumulated Purchase
losses from Sales amount Gains and Book value
Initial Accounting at the fair value amount
changes in during the losses of the at the end of
Security Stock investment measurement beginning of changes during the Accounting Source
Abbreviation fair value reporting reporting the reporting
type code cost model the reporting included in reporting subject of funds
during the period period period
（RMB） period equity period
period （RMB） （RMB） （RMB）
（RMB） （RMB） （RMB）
（RMB）
Trading Self-
Southwest Fair value
Stock 600369 50,000,000 180,929,400 -3,026,700 0 0 0 336,300 177,902,700 financial owned
Securities measurement
assets funds
Total 50,000,000 -- 180,929,400 -3,026,700 0 0 0 336,300 177,902,700 -- --
(2) Derivative investments
√ Applicable □ Not applicable
Unit: 10,000 RMB
Investment Investmen Proportion of
Initial Actual
Name of Related amount at Amount of Amount of Amount of t amount investment amount
Investment derivative gains/losses
derivative Relatio- party Starting the purchase in sales in the provision for at the end at the end of the
type of s Ending date during the
investment nship Transa- date beginning of the reporting reporting impairment of the reporting period to
derivatives investmen reporting
operator ctions the reporting period period (if any) reporting net assets of the
t amount period
period period Company
Non-
Forward
Bank Related No 2,332.50 2021/1/25 2021/12/24 2,332.50 225,709.01 228,041.51 0 0 0 4,488.00
Exchange
Party
Total 2332.50 -- -- 2,332.50 225,709.01 228,041.51 0 0 0 4,488.00
Source of funds Self-owned funds
Lawsuit (if applicable) Not applicable
Disclosure date of derivatives investment
November 19, 2020; February 2, 2021; February 23, 2021
approval board announcement (if any)
Disclosure date of derivatives investment
approval shareholders meeting announcement Not applicable
(if any)
Risk analysis
1. Market risk: In the case of large changes in the exchange rate, the difference between the exchange rate of the forward exchange contract
and the actual exchange rate on the expiration date may cause the Company to lose money.
2. Liquidity risk: The foreign exchange hedging business is based on the Company’s foreign exchange assets and liabilities, and matches the
actual foreign exchange receipts and expenditures to ensure that there are sufficient funds for liquidation at the time of delivery, so as to reduce
the cash flow demand on the maturity date.
3. Default risk: Due to inaccurate forecasts, the delivery date signed by the forward exchange transaction is inconsistent with the actual
delivery period, resulting in the delayed delivery risk caused by the failure of the forward exchange transaction to be delivered at the agreed
time.
Risk analysis and control measures for 4. Operational risk: Forward exchange transactions are complex, which may cause risks due to imperfect internal control and unprofessional
derivatives investment during the reporting operators.
period (including but not limited to market 5. Legal risks: If the terms of the transaction contract are not clear, the Company may face legal risks.
risk, liquidity risk, credit risk, operational Risk control measures
risk, legal risk, etc.) 1. The Company and its subsidiaries will pay attention to the changes in the exchange rate market, strengthen the study of exchange rates,
study the future exchange rate trends, improve the forecasting ability of exchange rates, and reduce the impact of exchange rate fluctuations
on the Company.
2. In order to prevent delayed transaction settlement of forward exchange, the business management departments of the Company and its
subsidiaries will track the progress of payment and collection, avoid overdue payments, and try to reduce the risk to the minimum.
3. The Company and its subsidiaries will strengthen business knowledge training, improve the comprehensive business quality of relevant
personnel, and improve the ability to identify and prevent exchange rate risks.
4. The Company has formulated the “Measures for the Administration of Forward Exchange Trading Business (Trial)”, which clearly stipulates
the business operation principles, approval authority, internal operation processes and requirements, risk handling procedures, etc., and the
operation must be handled in strict accordance with the requirements of the measurements.
Changes in market price or fair value of
invested derivatives during the reporting The Company’s measurement of Financial Instruments follows the “Accounting Standard for Business Enterprises Article 22 - Recognition
period (the specific methods, relevant and Measurement of Financial Instruments”, and the fair value is basically measured and recognized with reference to bank pricing. During
assumptions and parameters used in the the reporting period, the gain on the change in fair value of forward exchange contracts was RMB 44.88 million.
analysis of the fair value should be disclosed)
Explanation of changes of the accounting
policies and accounting principles of the
Company’s derivatives during the reporting Not applicable
period compared with the previous reporting
period
Opinions of independent directors on the The independent directors believed that the forward exchange transactions settled by the Company and its subsidiaries are based on normal
24
Chongqing Changan Automobile Company Limited 2021 Annual Report
Company’s derivatives investment and risk production and operation needs with the principle of prudence, and for the purpose of currency preservation and avoidance of exchange rate
control risks. For foreign exchange transactions, it is necessary to reduce the risk of exchange rate fluctuations by locking the exchange rate. The
Company has formulated the “Management Measures for Forward Exchange Transactions (Trial)”, and has improved the relevant internal
control procedures. The targeted risk control measures taken by the Company are feasible. And the forward exchange transactions settled by
the Company and its subsidiaries will abide by relevant laws and regulations and the Company’s relevant rules.
5. Use of raised funds
√ Applicable □ Not applicable
(1) Overall use of raised funds
√ Applicable □ Not applicable
Unit: 10,000 RMB
The total
The used amount of Cumulative Proportion
Amount of
amount of Total raised funds total amount of total The total The purpose
funds raised
Types of Total funds total funds accumulated with of raised raised amount of and placement
Year idle for
raise raised raised in the use of funds purpose funds with funds with unused of the unused
more than
current raised changed in purpose purpose funds funds
two years
period reporting changed changed
period
Deposited in a
Non-public
dedicated
2020 offering of 598,608.41 74,721.98 399,929.91 0 0 0% 198,678.50 0
account for
shares
raised funds
Total -- 598,608.41 74,721.98 399,929.91 0 0 0% 198,678.50 -- 0
Description of the overall use of raised funds
1. The board of directors of the Company believes that the Company has disclosed the storage and actual use of the Company’s raised funds in a
timely, true, accurate and complete manner in accordance with the “Guidelines for the Standardized Operation of Listed Companies on the Shenzhen
Stock Exchange” and relevant format guidelines. There are no violations in the management of raised funds. The Company has faithfully fulfilled its
obligation to disclose the investment direction and progress of the raised funds.
2. The net amount of raised fund after deducting other issuance expenses was RMB 5,986.08 million. The Company used the raised funds of
RMB 3,252.08 million and RMB 747.22 million respectively in 2020 and 2021. As of December 31, 2021, the Company has used a total of RMB
3,999.30 million of the raised funds.
(2) Use of the raised funds in committed projects
√ Applicable □ Not applicable
Unit: 10,000 RMB
Cumulative Investment Whether the Whether the
Whether Total Adjusted Whether it
Committed projects and Amount investment progress as of project has Benefits feasibility of
the project committed total meets the
placement of extra funds invested amount as of the end of the reached the realized this the project has
has been investment of investment expected
raised this year the end of the period% (3) = intended year changed
changed raised funds (1) return
period (2) (2)/(1) usable state significantly
Committed projects
H series fifth phase, NE1
series first phase engine Not Not
No 141,568.38 141,568.38 42,351.20 83,799.14 59% No No
production capacity applicable applicable
construction project
Crash Laboratory Capacity Not Not
No 11,505.75 11,505.75 5,397.98 5,965.94 52% No No
Upgrade Project applicable applicable
CD569 production line Not Not
No 15,576.22 15,576.22 4,454.82 4,511.90 29% No No
construction project applicable applicable
Hefei Changan Automobile
Not Not
Co., Ltd. adjustment and No 249,958.06 249,958.06 22,517.98 125,652.93 50% No No
applicable applicable
upgrade project
Supplementary working Not Not
No 180,000.00 180,000.00 - 180,000.00 100% No No
capital applicable applicable
Total 598,608.41 598,608.41 74,721.98 399,929.91 67% - - - -
The reasons for not
reaching the planned
progress or expected N/A
benefits (by specific
projects)
Description of major
changes in the feasibility of N/A
the project
25
Chongqing Changan Automobile Company Limited 2021 Annual Report
The amount, use and
progress of extra raised Not applicable
funds
Change in implementation
location of the committed N/A
projects
Adjustment to
implementation method of N/A
committed project
On November 18, 2020, the Ninth Meeting of the Eighth Session of the Board of Directors of the Company reviewed and approved the
Upfront investment and “Proposal on the Use of Raised Funds to Replace Early Investment in Self-Own Funds”, and agreed to use raised funds of RMB
replacement of committed 1,378,818,553.05 to replace pre-invested sell-raised funds for the project. The replacement of the raised funds has been verified by the
projects Ernst & Young Hua Ming (2020) Special Zi No. 60662431_D05 special report issued by Ernst & Young Hua Ming Certified Public
Accountants (special general partnership).
Use of idle raised funds for
temporary supplement of N/A
working capital
Amount and cause of
surplus of funds raised for The fundraising project is still in progress, and the raised funds have not been used up yet.
project implementation
The purpose and placement
Deposited in a dedicated account by the Company for raised funds
of the unused raised funds
Defects and other problems
in utilization and disclosure N/A
of the raised funds
(3) Changes of projects supported by raised funds
√ Applicable □ Not applicable
Unit: 10,000 RMB
Total Actual
The amount The date when
amount of cumulative Investment Benefits
actually the project Whether the Significant changes
funds to be investment progress as of achieved
The commitment of invested reached the expected in the feasibility of
Changed project invested in amount as the end of the during the
the original project during the intended benefits have the project after the
the project of the end period (%) reporting
reporting availability been achieved change
after the of the (3)=(2)/(1) period
period status
change (1) period (2)
1. H series fifth phas
e, NE1 series first ph
ase engine productio
n capacity constructi
A new on project
generation of 2. Crash Laboratory
energy-saving Capacity Upgrade C
In the year of Not Not
products onstruction Project 160,545.86 -- -- -- Not applicable
2023 applicable applicable
transformation 3. CD569 production
and upgrading line construction pr
projects oject
4. Hefei Changan Au
tomobile Co., Ltd. a
djustment and upgra
de project
合计 -- 160,545.86 -- -- -- -- -- -- --
1. There was a balance of the original project investment funds compared to upfront planning. The main reason
Reasons for change, decision-making procedures
is that in order to reduce the impact of the overseas epidemic on the project construction cycle, the company
and information disclosure (by specific project)
has reduced the actual investment amount through the localization of imported equipment in the project
26
Chongqing Changan Automobile Company Limited 2021 Annual Report
implementation process in order to reduce the investment in the project construction cycle, and at the same
time, the company has continuously optimized the program in the project construction process in order to
continuously improve the quality of operation, and lean investment process management has realized the
control of the scale and rhythm of investment. According to the company’s long-term strategic planning and
the current development needs, after the company’s comprehensive research. In order to further improve the
efficiency of the use of the raised funds, the company intends to adjust the investment scale of the original
raised funds investment projects, and the expected balance of RMB 1,605.46 million for the company’s new
generation of energy-saving product transformation and upgrading projects.
2. Decision-making procedure: The Company held the 38th meeting of the 8th Board of Directors on April 26,
2022, and approved the proposal of “Adjusting and Changing the Use of Part of the Raised Funds”. The
proposal has yet to be submitted to the Company’s General Meeting of Shareholders for consideration.
3. Information disclosure: Please refer to the announcement of “Adjusting and Changing the Use of Part of the
Raised Funds” on http://www.cninfo.com.cn.
Reasons for failure to meet the planned schedule or
Not applicable
projected benefits (by project)
Description of significant changes in the feasibility
Not applicable
of the project after the change
VIII. Sale of significant Assets and Equity
1. Sale of significant assets
□ Applicable √ Not applicable
2. Sale of significant equity
□ Applicable √ Not applicable
IX. Analysis of Major Shareholding and Joint Stock Companies
√ Applicable □ Not applicable
Major subsidiaries and joint stock companies that affect the company’s net profit by more than 10%
Unit: 10,000 RMB
Registered Operating
Main Total Net Operating
Name Type capital profit Net profit
businesses assets assets income
Chongqing Changan
Automobile Customer Service Subsidiary Sales of auto parts 3,000 150,340 79,960 287,065 56,034 47,507
Co., Ltd.
Production and
Nanjing Changan Automobile
Co., Ltd.
Subsidiary sales of vehicles 60,181 181,942 -86,778 180,154 53,098 45,816
and parts
Production and
Changan Ford Automobile Joint Stock
Co., Ltd Company
sales of vehicles 24,100 USD 4,068,484 597,896 6,176,532 247,560 228,391
and parts
Production and
Changan Mazda Automobile Joint Stock
Co. Ltd Company
sales of vehicles 11,681 USD 1,266,407 422,276 1,745,902 105,911 85,960
and parts
Chongqing Changan New
Joint Stock Produce and sell
Energy Vehicle Technology
Company auto and parts 20,223 789,970 -63,744 563,171 -277,245 -277,247
Co., Ltd
Nanjing Lingxing Equity Equity investment
Joint Stock
Investment Partnership
Company
and related 976,000 1,302,125 1,302,008 0 416,580 416,580
(Limited Partnership) services
Subsidiaries acquired and sold in the reporting period
√ Applicable □ Not applicable
Acquisition and disposal of subsidiaries Impact on overall production,
Name
during the reporting period operation and performance
Zhenjiang Demao Hairun Equity Investment Fund
Withdrawal from partnership N/A
Partnership (Limited Partnership)
Description of major holding and participating companies
During the reporting period, Changan Ford Automobile Co., Ltd. has significantly increased its profit due to the improvement of
product structure, sales volume, material cost reduction and other reasons. Chongqing Changan New Energy Automobile Technology
Co., Ltd. has reduced its net profit due to the decline of new energy subsidies, and the growth of the investment on sales resource.
27
Chongqing Changan Automobile Company Limited 2021 Annual Report
X. Information of main shareholding and joint stock companies
□ Applicable √ Not applicable
XI. Prospects of Future Development
1. Industrial Landscape and Tendency
（1）Industrial Tendency: New vehicles and new ecology have been the major trend. Vehicles might run through platforms,
serving to be intelligent mobile terminal, data collection carrier, and multifunctional space and storage units. The evolution of
automobile products drives the reshaping of automobile industry and makes itself further combined with industries like energy,
transport, communications and technology. The auto ecology changes from chain-like relationship to networked ecosystem, thus
forming a strong link. The division of work in global automobile industrial chain is reshaped and China will support the innovation for
global automobile industry.
(2) Policy Tendency: “Double Carbon” goal, comprehensive opening-up and data safety will lead industrial transformation.
Against the backdrop of “Double Carbon” strategy, the consumers’ demands of the fusion of electrification and intelligence in new
energy vehicle will speed up the industrial transformation. National policies support the development of new energy vehicle. And
governments at each level issue policies to boost consumption, conducting such measures as rural promotion, new sales and trade-in.
Meanwhile, it is easy to find that more policies are formulated to ameliorate the usage environment including charging pile and charging
station. More importance is attached to the opening of stock share and cyber data security and the running pressure and compliance
cost of homegrown brands are on the rise. The Chinese automobile industry sees fierce competition, challenges and opportunities.
(3) Consumption Tendency: Chinese cultural confidence accelerates the rise of national brands and additional and redeemed
trade booms in the automobile consumption. The population aged from 25 to 30 might be on the decline, which leads to the decrease
of first-car buyers. In 2021, the additional and redeemed trade outnumber the first purchase, which shows customers’ desire for higher
quality. The people born after 2000 show an increasing interest in Chinese brands, and with the people born after 1995 or 2000 being
the main customers, Chinese auto brands will see more opportunities of development.
(4) New Energy Tendency: The electrification of powertrain is surely the tendency of automobile industry. The new energy
vehicle market develops fast with increasing sales volume and share, and multiple powertrain structures will co-exist for a long time
including EV, PHEV, REEV, FCV. Meanwhile, the development of new energy vehicle is faced with a range of challenges: First, BEV
cannot stand to be compatible in all scenes. For example, it cannot be common to the public in cold northern China and it is not
convenient for charging in highway or long-distance tour. Second, in daily use of electric cars, the surplus value of used cars is low
and the charging facilities need to be perfected. Third, it has something to do with business model. The constant price rise in raw
materials has stressed OEM out. Fourth, the tense supply of mineral resources like Li-Ni-Co-O poses challenges. Fifth, the technical
route and business operation of power battery is somewhat uncertain, including solid state battery, cobalt-free battery, graphene and
solar battery.
(5) Intelligence Tendency: The electrification and intelligence impose positive impact. And the intelligent EV is approaching to
boom with the result that intelligence will be of great investment value. Intelligent EV will be the main role in next battlefield of
automobile, and with such industrial reforms as electrification and software-driven vehicles, the core value of CBU transfers from
machinery hardware to software capacity of which the proportion will exceed 50%. In the meantime, all OEMs will spare no effort to
scrabble for market share through a range of acts covering price performance, differentiated specification and alluring service, and
therefore a fierce competition of intelligent EV starts off.
2. Corporation Development Strategy
Driven by the 14th Five-Year Changan Auto Development Plan, Changan Auto will direct towards the third business venture to
reinforce the indigenous brands, overtake among fierce competition, seize opportunities of innovation and build ecosystem, so as to
accelerate its transformation towards an intelligent low-carbon technology mobility company. Changan Auto will strengthen its
technological capacities and sharpen manufacturing advantages to transition towards intelligence, low carbon, mobility and ecology,
building the company with “New Auto & New Ecology”. By 2025, Changan Auto’s total sales volume plans to reach 4 million units,
of which Changan’s homegrown brand will reach sales of 3 million units, including NEV sales of 1.05 million units, accounting for
35%. In 2030, Changan Auto’s total sales is expected to reach 5.5 million units, of which Changan’s homegrown brand 4.5 million
units, including NEV sales of 2.7 million units, accounting for 60%, and overseas sales is expected to account for 30%. Changan Auto
plans to achieve carbon peaking in 2027 and carbon neutrality in 2045.
In order to ensure the success of strategies, Changan Auto will advance 7 strategic actions:
Action One: Brand Refreshment
(1) Brand-new digital EV brand Changan SHENLAN (Deep Blue). It aims to provide users with convenience and benefits with
digital technologies and back up strategic transformations in all respects.
(2) Premium intelligent EV brand Avatr. It is built to integrate advantages of Changan Auto, Huawei and CATL and is dedicated
to building a premium SEV global brand.
(3) The optimization of brand strategies and positioning of Changan UNI series, Changan PV, OSHAN and KAICENE will boost
the comprehensive transformation of electrification. Meanwhile, we will promote the operation of Changan UNI brand and electrify
28
Chongqing Changan Automobile Company Limited 2021 Annual Report
the entire lineup of UNI series.
Action Two: More Products to be released
Driven by demands of users, Changan Auto plans to launch approximately 30 products before 2025.
(1) Premium intelligent EV: Avatr has 4 CBU products in plan at present to cover the main medium-to-high-end segments. The
first Avatr model named Avatar 11 based on CHN platform is soon to be mass-produced.
(2) Mainstream PV: 21 brand-new products are planned to be released, including 5 products of Changan SHENLAN (Deep Blue).
(3) Small vehicles: We will launch 4 brand-new small vehicles. In 2022, LUMIN is planned to be launched to meet the demand
of daily commuting.
(4) LCV: 6 brand-new products are planned to be released. Before 2025, our products expect to cover all segments in mainstream
bus market, and 2 pick-up products based on new platform will go to market.
Action Three: Grasp Core Technologies
Aiming at mastering key technologies, Changan Auto will further enhance key technological abilities.
(1) To create a new generation of deeply integrated electric drive and make breakthroughs in the development and application
technology of power semiconductor.
(1)To continuously improve integrated design for lower energy consumption and longer range.
(3) To work on cell to chassis technology and speed up R&D and application of semi-solid-state batteries.
(4) To accelerate R&D and application of hydrogen fuel technology. To establish and improve the hydrogen fuel R&D,
manufacturing and testing system covering “parts - system - vehicles”, and independently master the system integration and control
technology.
Action Four: Building New Ecology
In order to boost strategic transformation, Changan Auto will be open-minded to actively integrate global resources and build new
industrial ecology.
(1) Green Ecology: Changan Auto will work with partners to make transformation towards ecology of green energy, green service
and green supply chain.
(2)Technological Ecology: In order to implement the “DUBHE” INTELLIGENCE PLAN, Changan Auto will build a market-
oriented science and technology innovation entity, master full-stack intelligent capabilities of our own, foster new technology strength
and build a new technological image of Changan Auto.
Action Five: Digital Transformation
(1) Digital Products: The intelligent experiences and digital service are provided through the whole life-cycle of vehicle.
(2)Digital Marketing: The building of shared digital marketing center starts from users to achieve exquisiteness of marketing
information, swiftness of logistics and lightness of fund flow.
(3)Intelligent Manufacturing: By focusing on the system integration of smooth manufacturing process and data connection of total
factors, the intelligent manufacturing system is built from swift delivery, coordinated manufacturing of supply chain and intelligent
operation of factories.
Action Six: Expansion of Global Market
Changan Auto will develop on the “fast lane” of globalization and found overseas manufacturing bases at proper time.
Action Seven: Resource Guarantee
In the future, Changan Auto will make further investment in major areas of new energy, intelligence, technological innovation and
digital transformation to foster core abilities in areas of transformation. In the meantime, Changan will open up to global talents and
give greater priority to the talent introduction in intelligence and new energy.
3. Operation Plan
The operation target of Changan Corporation Board in 2022 is to achieve a sales volume of over 2.45 million units. In order to
make the goal come true, Changan Auto will stay committed to pushing forward transformation upgrading and high-quality
development and make every effort to implement strategic plans as well as Innovation and Entrepreneurship Plan 5.0 through
consolidating the foundation, forging ahead with innovation, restructuring the system and taking the lead to improve corporate
governance system and capacity. As a result, three capacities, namely growth, profits and innovation are lifted to a new level,
contributing to the endeavor to create a Chinese brand of global recognition. Major tasks are listed below: first, to adhere to the
implementation of strategies and thus make transformations towards an intelligent low-carbon technology mobility company. Second,
to focus on products and make products more competitive. Third, to push forward innovation service and meet customers’ needs in all
respects. Fourth, to concentrate on cost management and constantly optimize resource allocation to achieve the goal of reducing costs.
Fifth, to focus on innovation breakthrough and achieve restructuring of capacities to constantly build competitive edge over others.
Sixth, to propel the upgrading of management, deeply conduct organizational reform and improve innovation efficiency. Seventh, to
advance system building and endow new products with definitions. Eighth, to give priority to risk control and be more aware of risks
to ensure production safety.
4. 2022 Plan on Capital Spending
In order to achieve the corporate strategic goal, Changan Auto and its holding company planned an investment of RMB 8,049.59
29
Chongqing Changan Automobile Company Limited 2021 Annual Report
million in 2021 of which investment in fixed assets is RMB 3,245.67 million and equity investment is RMB 4,803.92 million. The
fixed investment centers around the structural adjustment of new energy production capacity and the release of new products. Major
effort is made to build core capacities of production and R&D to comprehensively cope with manufacturing and R&D ability weakness
aroused by accelerated new energy plan and impel the product transformation towards new energy electrification. At the same time,
the investment in integrated manufacturing capacity of key parts like battery, electric motor and electric control is also initiated. The
equity investment is mainly designed to back up self-owned new energy brand and increase its scale, expand overseas market, deepen
the capital relations with partners, create controllable full-stack intelligence capacities and constantly advance the ecological layout of
auto industry. Based on project schedule and operation and financing situation, Changan Auto will formulate fund raising and using
plan via multiple channels to improve fund using efficiency and reduce fund costs.
5. Possible Risks
(1) Supply Chain
Because of lasting pandemic and geopolitical conflicts, some upstream raw materials are in short supply and the collaboration of
supply chain declines, resulting in lingering scarcity of chips and power batteries at some stage and posing pressure to automobile
corporations in production supply.
Countermove: First, to optimize production organization to make production run smooth. Second, to strengthen the cooperation
with corporations in business chain and increase the storage of parts that are at risk at proper time. Third, to constantly push forward
the alternative proposal of key parts.
(2) Soaring Price of Raw Materials
In the long term, the alleviation of global pandemic might lead to the improvement of the supply of commodities, but there are
still uncertainties resulting in the firm prices of global commodities. On the one hand, the abrupt escalation of global geopolitical
conflicts has caused price rise in crude oil, gas and agricultural products. On the other hand, global car emission constraints and green
transition have sparked market forecasts of long-term increasing demands of base metals and also caused price rise in such mineral
resources as lithium, aluminum, copper, cobalt and nickel. The production and operation of automobile corporations are greatly affected
by the price rise in commodities like energy and metals, possibly arousing short-term production cost rise with augmented operation
pressure.
Countermove: Changan Auto would give priority to the risk control of production and operation. In terms of production, the
process will be constantly optimized with the production costs saved. In terms of R&D, the newest materials and alternative proposals
are utilized to optimize cost structure through optimized product specifications and meanwhile the quality and competitiveness of
products would also be upgraded. In terms of procurement, the supplier system and structure would be optimized to drive suppliers to
apply new techniques and control costs.
(3) Disturbing Risks for Auto Market Consumption Aroused by Covid-19 Pandemic
The scattered Covid-19 pandemic is China has not been erased, disturbing part of sales in auto market and inhibiting consumers’
confidence rebuilding. Therefore, the sales volume and tempo of automobile is increasingly fluctuated.
Countermove: First, to accelerate the deployment of new sales and promote intelligent sales to intensify customer touch points
and reduce the market impact to the lowest. Second, to improve the service experience across purchase and use via intensification of
auto finance and other aftermarket services.
XII. Reception Research, Communication, Interviews and Other Activities during the
Reporting Period
√ Applicable □ Not applicable
Type of
Reception
Date Research Type Research Index
place
Object
For details, see the March 5, 2021 Shenzhen stock exchange interactive
On March 3rd, Field research,
Chongqing Institution (http://irm.cninfo.com.cn) on the Changan Automobile: March 3, 2021
2021 conference calls
investor relations activities record sheet
“Panorama Road For details, see the April 22, 2021 Shenzhen stock exchange interactive
On April 20th,
Oneline Show World” All investors (http://irm.cninfo.com.cn) on the Changan Automobile: April 20, 2021
2021
webcast investor relations activities record sheet
For details, see the May 20, 2021 Shenzhen stock exchange interactive
On May 18,
Chongqing Field research Institution (http://irm.cninfo.com.cn) on the Changan Automobile: May 18, 2021
2021
investor relations activities record sheet
For details, see the May 21, 2021 Shenzhen stock exchange interactive
On May 21,
Chongqing Field research Institution (http://irm.cninfo.com.cn) on the Changan Automobile: May 21, 2021
2021
investor relations activities record sheet
For details, see the May 31, 2021 Shenzhen stock exchange interactive
On May 28,
Chongqing Field research Institution (http://irm.cninfo.com.cn) on the Changan Automobile: May 28, 2021
2021
investor relations activities record sheet
30
Chongqing Changan Automobile Company Limited 2021 Annual Report
For details, see the June 3, 2021 Shenzhen stock exchange interactive
On June 1, 2021 Chongqing Field research Institution (http://irm.cninfo.com.cn) on the Changan Automobile: June 1, 2021
investor relations activities record sheet
For details, see the June 24, 2021 Shenzhen stock exchange interactive
On June 22,
Chongqing Field research Institution (http://irm.cninfo.com.cn) on the Changan Automobile: June 22, 2021
2021
investor relations activities record sheet
For details, see the June 24, 2021 Shenzhen stock exchange interactive
On June 24,
Chongqing Field research Institution (http://irm.cninfo.com.cn) on the Changan Automobile: June 24, 2021
2021
investor relations activities record sheet
For details, see the July 9, 2021 Shenzhen stock exchange interactive
On July 7, 2021 Chongqing Field research Institution (http://irm.cninfo.com.cn) on the Changan Automobile: July 7, 2021
investor relations activities record sheet
For details, see the September 17, 2021 Shenzhen stock exchange
On September
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
15, 2021
September 15, 2021 investor relations activities record sheet
For details, see the September 18, 2021 Shenzhen stock exchange
On September
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
16, 2021
September 16, 2021 investor relations activities record sheet
For details, see the September 26, 2021 Shenzhen stock exchange
On September
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
23, 2021
September 23, 2021 investor relations activities record sheet
31
Chongqing Changan Automobile Company Limited 2021 Annual Report
Chapter 4 Corporate Governance
I. The Basic Situation of Corporate Governance
In strict accordance with the requirements of the Company Law, the Securities Law and the relevant laws and regulations of the
CSRC, the Company continuously improved the corporate governance structure and promoted the standard operation of the Company.
The actual situation of the corporate governance of the Company is in line with the relevant requirements of the CSRC normative
documents on corporate governance.
The company has established an effective internal control system over the financial report. According to company’s operation and
management characteristics, the company strictly implemented the “Enterprise Accounting Standards”, improved the basic accounting
management, established a sound financial system, optimized accounting and statements preparation process, strengthened the financial
supervision, conducted the in-depth implementation of financial management, established the management foundation work,
accounting and finance management authorization, the monetary fund management, financing, purchasing and payment, fixed assets,
projects under construction, accounting policy, accounting estimate, consolidated financial statements, cost management, inventory
management, financial analysis and other financial management system to ensure the quality of accounting information and the safety
of the Company property. According to internal control deficiencies identified standards of the financial report, there is no internal
control defects over financial reporting in the report period. The full text of the internal control self-evaluation report is published on
http://www.cninfo.com.cn on April 28, 2022.
Whether there are differences between corporate governance and the related requirements of “Company Law” and China
CSRC.
□ Yes √ No
There is no difference between corporate governance and the related requirements of “Company Law” and China CSRC.
II. The Independence of the Company in Terms of Assets, Personnel, Finance, Organization
And Business Relative to Controlling Shareholders and Actual Controllers
The Company is completely independent from the controlling shareholders and actual controllers in terms of business, assets,
personnel, institutions and finance.
1. Business: The business of Changan Auto is independent of controlling shareholders and actual controllers. It makes independent
decisions, operates independently and is responsible for its own profits and losses. It has a complete business and industrial system
including procurement, production, sales and research and development. The controlling shareholders and actual controllers do not
directly or indirectly interfere in the production and business activities of Changan Auto.
2. Personnel: The controlling shareholder and the actual controller are completely independent from the personnel, labor and
personnel of Changan Auto. They have independent staff teams, complete labor management, performance appraisal and other systems
and salary systems, and independently sign the Labor Contract with employees according to law.
3. Assets: The assets of controlling shareholders and actual controllers are strictly separated from Changan Auto, and the property
rights are clearly defined. There is no direct or indirect interference in the production and operation of Changan Auto. Changan Auto
has independent production system, auxiliary production system, supporting facilities, land use rights and other assets, legally owns
land, real estate, machinery and equipment, trademarks related to production and operation, and has an independent raw material
procurement and product sales system.
4. Organization: The controlling shareholder, the actual controller and Changan Auto have independent production, operation and
office places. There is no mixed operation.
5. Finance: The controlling shareholder, the actual controller and Changan Auto have independent finance and accounting
departments with independent finance and accounting personnel, and have established independent accounting system and financial
management system. They make financial decisions independently, open bank accounts and pay taxes independently, and do not share
bank accounts. Changan Auto handles tax registration independently and pays tax independently according to law.
Ⅲ. Competition Situation
In December 2009, according to the national “Automobile Industry Adjustment and Revitalization Plan” regarding promoting
auto enterprise merger restructuring and further optimization of state-owned economy strategy layout requirements, the actual
controller of the company China South Industries Group Corporation and China Aviation Industry Group Company proceeded industry
restructuring. China Aviation Industry Group Company transferred 100% equity of Jiangxi Changhe Automobile Co., Ltd. for free.
(hereinafter referred to as “Changhe Automobile”) and 100% stake of Harbin Hafei Automobile Industry Group Co., Ltd. (hereinafter
referred to as “Haqi Group”) into the company’s controlling shareholder China Changan Automobile Group Co., Ltd. (hereinafter
referred to as “China Changan”). This restructuring led to horizontal competition between the Company and subordinate enterprise of
China Changan, the controlling shareholder. To finally solve the possible competition and better maintain the interests of company’s
investors, the company’s controlling shareholder China Changan made commitment: When Jiangxi Changhe Automobile Co., Ltd.
32
Chongqing Changan Automobile Company Limited 2021 Annual Report
and Harbin Hafei Automobile Industry Group Co., Ltd. can make profits for two successive years with sustainable development ability
and improved management level, it’s proposed to affiliate the two companies into Changan automobile. In October 28, 2013, the
controlling shareholder China Changan transferred Jiangxi Changhe Automobile Co., Ltd. to Jiangxi provincial state-owned enterprise
assets (Holdings) Limited. The horizontal competition was resolved. In order to solve the possible horizontal competition between
Hafei Automobile Co., Ltd. and the company, on January 25, 2019, Haqi Group, a subsidiary of the Company’s controlling shareholder
China Changan, transferred 38% of the shares of Hafei Automobile Co., Ltd. to Harbin Yungu Automobile. Haqi Group has lost control
of Hafei Automobile Co., Ltd. The horizontal competition was resolved.
There was no horizontal competition of the Company during the reporting period.
IV. Annual Shareholders Meeting and Extraordinary General Meeting during the Reporting
Period
1. Shareholders meeting during the reporting period
Investors’
Meeting Session Type participation Opening Time Disclosure Time Resolution Index
Ratio
http//www.cninfo.com.cn
2021 The First 2021 The First Extraordinary
February 18th, February 19th,
Extraordinary EGM 46.375% General Meeting Resolution
2021 2021
General Meeting Announcement (Announcement
Number: 2021-13)
http//www.cninfo.com.cn
2020 Annual
2020 Annual Shareholders Meeting
Shareholders Annual 53.336% May 14,2021 May 15th, 2021
Resolution Announcement
Meeting
(Announcement Number: 2021-51)
http//www.cninfo.com.cn
2021 The Second 2021 The Second Extraordinary
September September 18th,
Extraordinary EGM 54.581% General Meeting Resolution
17,2021 2021
General Meeting Announcement (Announcement
Number: 2021-82)
2. The shareholders of preferred shares with voting right restored request to convene an extraordinary
general meeting
□ Applicable √ Not applicable
V. Directors, Supervisors and Senior Management Personnel
1. Basic information
Shares Share Share
Shares
held at volume volume Other
Restricte increased decreased held at Reasons for
Appoint beginnin increase the end of
End Stock d stock the increase
Name Position ment Gender Age Start date g of in the in the /decreas
date option award reporting /decrease in
status reporting reporting reporting e
(share) period shares
period period period (share)
（share)
(share） （share） （share）
Equity
Chairman,
distribution
Zhu Secretary of Incumbe 2020-06- 2023-
M 56 25,200 - 350,000 350,000 - 10,080 385,280 in 2020;
Huarong the Party nt 22 06-22
Equity
Committee
incentive
Incumbe 2021-02- 2023-
Zhang Bo Director M 43
nt 18 06-22
Incumbe 2021-02- 2023-
Liu Gang Director M 55
nt 18 06-22
Ye Incumbe 2022-03- 2023-
Director M 49
Wenhua nt 17 06-22
Zhou Incumbe 2021-09- 2023-
Director M 49
Kaiquan nt 17 06-22
33
Chongqing Changan Automobile Company Limited 2021 Annual Report
Director, Equity
President distribution
Incumbe 2020-06- 2023-
Wang Jun and Deputy M 49 - - 280,000 280,000 - - 280,000 in 2020;
nt 22 06-22
Party Equity
Secretary incentive
Director, Equity
CFO, distribution
Zhang Incumbe 2020-06- 2023-
Secretary of M 47 - - 271,600 271,600 - - 271,600 in 2020;
Deyong nt 22 06-22
the Board of Equity
Directors incentive
Independent Incumbe 2020-06- 2023-
Liu Jipeng M 65
Director nt 22 06-22
Li Independent Incumbe 2020-06- 2023-
M 66
Qingwen Director nt 22 06-22
Chen Independent Incumbe 2020-06- 2023-
M 76
Quanshi Director nt 22 06-22
Ren
Independent Incumbe 2020-06- 2023-
Xiaochan M 65
Director nt 22 06-22
g
Tan Independent Incumbe 2020-06- 2023-
M 51
Xiaosheng Director nt 22 06-22
Wei Independent Incumbe 2020-06- 2023-
M 53
Xinjiang Director nt 22 06-22
Cao Independent Incumbe 2020-06- 2023-
M 50
Xingquan Director nt 22 06-22
Yang Independent Incumbe 2021-09- 2023-
M 61
Xinmin Director nt 17 06-22
Chairman of
the Incumbe 2021-09- 2023-
Lian Jian M 58
Supervisory nt 17 06-22
Board
Sun Incumbe 2020-06- 2023-
Supervisor M 55
Dahong nt 22 06-22
Employee
Shi Supervisory Incumbe 2021-11- 2023-
M 50
Shengwei Board nt 08 06-22
Member
Employee
Supervisory Incumbe 2020-06- 2023-
Luo Yan F 47
Board nt 19 06-22
Member
Equity
Deputy
distribution
Yuan Secretary of Incumbe 2020-07- 2023-
M 53 - - 280,000 280,000 - - 280,000 in 2020;
Mingxue the Party nt 13 06-22
Equity
Committee
incentive
Equity
Executive distribution
He Incumbe 2020-07- 2023-
Vice M 54 - - 271,600 271,600 - - 271,600 in 2020;
Chaobing nt 13 06-22
President Equity
incentive
Secretary of Equity
Discipline distribution
Hua Incumbe 2020-07- 2023-
Inspection M 54 - - 271,600 271,600 - - 271,600 in 2020;
Zhanbiao nt 13 06-22
Commissio Equity
n incentive
Equity
Executive distribution
Tan Incumbe 2020-07- 2023-
Vice M 46 - - 271,600 271,600 - - 271,600 in 2020;
Benhong nt 13 06-22
President Equity
incentive
Equity
Executive distribution
Incumbe 2020-07- 2023-
Ye Pei Vice M 46 - - 271,600 271,600 - - 271,600 in 2020;
nt 13 06-22
President Equity
incentive
34
Chongqing Changan Automobile Company Limited 2021 Annual Report
Equity
Executive distribution
Incumbe 2020-07- 2023-
Zhao Fei Vice M 47 - - 271,600 271,600 - - 271,600 in 2020;
nt 13 06-22
President Equity
incentive
Equity
Executive distribution
Incumbe 2020-07- 2023-
Chen Wei Vice M 49 - - 271,600 271,600 - - 271,600 in 2020;
nt 13 06-22
President Equity
incentive
Equity
Executive distribution
Li Incumbe 2020-07- 2023-
Vice M 40 - - 271,600 271,600 - - 271,600 in 2020;
Mingcai nt 13 06-22
President Equity
incentive
stock
Yang Vice Incumbe 2021-07- 2023-
M 47 - - 194,000 194,000 - - 194,000 ownership
Dayong President nt 15 06-22
incentive
Equity
distribution
Vice Incumbe 2021-07- 2023-
Peng Tao M 44 - - 191,240 191,240 - - 191,240 in 2020;
President nt 15 06-22
Equity
incentive
Equity
distribution
Zhang Vice Incumbe 2022-01- 2023-
M 42 - - 191,240 191,240 - - 191,240 in 2020;
Xiaoyu President nt 12 06-22
Equity
incentive
Equity
distribution
Wang Vice Incumbe 2022-01- 2023-
M 39 - - 132,300 132,300 - - 132,300 in 2020;
Xiaofei President nt 12 06-22
Equity
incentive
Equity
distribution
Secretary of Incumbe 2020-07- 2023-
Li Jun F 52 - - 191,240 191,240 - - 191,240 in 2020;
the Board nt 13 06-22
Equity
incentive
Pang Independent 2020-06- 2021-
Outgoing M 52
Yong Director 22 05-07
Departur 2020-06- 2021-
Zhao Jun Supervisor M 60
e 22 05-12
Equity
Executive distribution
2020-07- 2021-
Liu Bo Vice Outgoing M 55 - - 271,600 271,600 271,600 - - in 2020;
13 07-23
President Equity
incentive
Zhou 2020-06- 2021-
Director Outgoing M 51 - -
Zhiping 22 07-29
Chairman of
the 2020-06- 2021-
Yan Ming Outgoing M 56 - -
Supervisory 22 07-29
Board
Equity
Yu Outgoing distribution
Vice 2021-07- 2021-
Chenglon (decease M / - - 191,240 191,240 - - 191,240 in 2020;
President 15 09-12
g d) Equity
incentive
Employee
Wang Supervisory 2020-06- 2021-
Outgoing F 55
Yanhui Board 19 11-08
Member
Tan 2020-06- 2021-
Director Outgoing M 58
Xiaogang 22 12-21
Executive 2020-07- 2022- Equity
Li Wei Outgoing M 55 - - 271,600 271,600 - - 271,600
Vice 13 01-12 distribution
35
Chongqing Changan Automobile Company Limited 2021 Annual Report
President in 2020;
Equity
incentive
Total -- -- -- -- -- -- 25,200 - 4,717,260 4,717,260 271,600 10,080 4,480,940 --
Note: The number of restricted shares granted above has been adjusted according to the Company’s 2020 equity distribution plan.
Whether there are any outgoing directors and supervisors and the dismissal of senior management personnel during the
reporting period
√Yes □ No
See “V. 1. Changes in Directors, Supervisors, and Senior Management Personnel” in Chapter 4.
Changes in Directors, Supervisors and Senior Management Personnel
√ Applicable □ Not applicable
Name Position Type Date Reason
Zhang Bo Director Elected February 18th, 2021 Appointment
Liu Gang Director Elected February 18th, 2021 Appointment
Deputy Secretary
Yuan of the Party Committee
Appointed March 30th, 2021 Appointment
Mingxue (Senior Management
Personnel)
Executive Vice
Ye Pei Appointed March 30th, 2021 Appointment
President
Executive Vice
Zhao Fei Appointed March 30th, 2021 Appointment
President
Yang Dayong Vice President Appointed July 15th, 2021 Appointment
Yu Vice President Appointed July 15th, 2021
Appointment
Chenglong
Peng Tao Vice President Appointed July 15th, 2021 Appointment
Executive Vice
Chen Wei Appointed July 23th,2021 Appointment
President
Zhou September 17th,
Director Elected Appointment
Kaiquan 2021
Independent September 17th,
Yang Xinmin Elected Appointment
Director 2021
September 17th,
Lian Jian Supervisor Elected Appointment
2021
Chairman of the September 23rd,
Lian Jian Elected Appointment
Supervisory Board 2021
Employee
Shi Shengwei Supervisory Board Elected November 8th, 2021 Appointment
Member
Zhang Appointed
Vice President January 12th, 2022 Appointment
Xiaoyu
Wang Xiaofei Vice President Appointed January 12th, 2022 Appointment
Executive Vice January 28th, 2022
Li Mingcai Appointed Appointment
President
Zhang January 28th, 2022
Board Sectary Appointed Appointment
Deyong
Ye Wenhua Director Elected March 17th, 2022 Appointment
Yuan Executive Vice
Outgoing March 30th, 2021 Job change
Mingxue President
Ye Pei Vice President Outgoing March 30th, 2021 Job change
Zhao Fei Vice President Outgoing March 30th, 2021 Job change
Independent
Pang Yong Outgoing May 7th,2021 Job change
Director
Zhao Jun Supervisor Outgoing May 12th,2021 Job change
36
Chongqing Changan Automobile Company Limited 2021 Annual Report
Chen Wei Vice President Outgoing July 23th,2021 Job change
Executive Vice
Liu Bo Outgoing July 23th,2021 Job change
President
Zhou Zhiping Director Outgoing July 29th, 2021 Job change
Supervisor,
Yan Ming Chairman of the Outgoing July 29th, 2021 Job change
Supervisory Board
Yu September 12th,
Vice President Outgoing Deceased
Chenglong 2021
Employee
Wang Yanhui Supervisory Board Outgoing November 8th, 2021 Retirement
Member
Tan Xiaogang Director Outgoing December 21st, 2021 Job change
Executive Vice
Li Wei Outgoing January 12th, 2022 Job change
President
Li Mingcai Vice President Outgoing January 28th, 2022 Job change
2. Incumbency
Professional background, work experience and duties and responsibilities of incumbent Directors, Supervisors and Senior
Manager Personnel
(1) Directors
Mr. Zhu Huarong, Director, Chairman and Secretary of the Party Committee. Born in 1965, he is a Professorate Senior Engineer
with a master’s degree. Currently he is the President Assistant of CSG and the Director of China Changan Automobile Group. He was
Vice Director of Changan Technology Department, the Chief Engineer of Changan Automobile Manufacture Factory, President
Assistant of Changan Automobile (Group) Co., Ltd. and Director of Technical Center, Director of Science and Technology Committee,
Vice General Manager of Changan Automobile (Group) Co., Ltd. and Director of Engineering Research Institute, Vice President and
Secretary of Party Committee of Changan Automobile, the Vice Secretary of Party Committee of China Changan Automobile Group,
President of Changan Automobile.
Mr. Zhang Bo, Director. Born in 1978, he is a senior accountant with a master’s degree. He is currently the Director of the Finance
Department of CSG. He served as the Deputy Director and Deputy Director of the Finance Division of the Finance Department (General
Division) of CSG, Investigator and Deputy Director of the Finance Division of the Finance Department of CSG, Director and Chief
Accountant of Chongqing Wangjiang Industry Co., Ltd., Deputy Director of the Finance Department of CSG.
Mr. Liu Gang, Director. Born in 1966, he is Professorate Senior Engineer with a bachelor’s degree. He is currently Vice Chief
Engineer of CSG. He served as Deputy Manager and Manager of the Research Department of the 58th Research Institute of Norinco
Group, Deputy Director and Director of the 58th Research Institute of Norinco Group, Deputy Director of the Southwest Region
Department of CSG, and Vice Director of China Ordnance Equipment Research Institute, Director of the Science and Technology
Quality Department (Information Department) and Director of the Science and Technology and Information Department of CSG.
Mr. Ye Wenhua, Director. Born in 1972, he is a Professorate Senior Engineer with a master’s degree. He is currently the Director
of the Strategic Development Department of CSG. He served as Deputy Party Secretary, Deputy General Manager of Chongqing
Jianshe Motorcycle Co., Ltd., Director, Party Secretary, Discipline Inspection Secretary of Chongqing Changfeng Machine
Manufacturing Co., Ltd. , Director, General Manager, Deputy Party Secretary, Party Secretary, Discipline Inspection Secretary of
Chongqing Jianshe Industry (Group) Co., Ltd. , Director, General Manager, Deputy Party Secretary of Chongqing Changan Industry
(Group) Co., Ltd., Deputy Director of Human Resource Department, Director of Inspection Office of CSG.
Mr. Zhou Kaiquan, Director. Born in 1973, he is a Senior Engineer with a master’s degree. He is currently the Chairman, President
and Party Secretary of China Changan Automobile Group Co., Ltd. He served as Chairman of Chengdu Qingshan Automobile Trade
Sales Company, Deputy General Manager, Director, General Manager, Deputy Secretary of Party Committee of Factory 246, Director,
General Manager of Sichuan NingJiang Shanchuan Machinery Co.,Ltd., Director, General Manager of Sichuan Ningjiang Precision
Industry Co., Ltd., Chairman, Party Secretary, General Manager Southwest Ordnance Industry Co., Ltd., Deputy General Manager,
General Manager, Deputy Party Secretary, Vice Chairman and Secretary of the Party Committee of Chongqing Tsingshan Industrial.
Mr. Wang Jun, Director, President and Deputy Secretary of the Party Committee. Born in 1972, he is a Senior Engineer with a
master’s degree. He served as Deputy Director and Director of the Scientific Research Management Division of the Company’s
Technology Center, Director of the Science and Technology Management Division of the Science and Technology Quality Department,
Deputy Director and Director of the Product Planning Division of the Automotive Engineering Research Institute, Manager of the
Product Management Division of the Marketing Department of Changan Automobile Sales Co., Ltd., Director, Deputy General
Manager and General Manager of the Product Planning Division of the Marketing Department, Assistant President of Changan
Automobile and General Manager of Changan Automobile Sales Co., Ltd., Secretary of the Party Committee, Deputy General Manager
and General Manager of the Commercial Vehicle Division, Executive Vice President of Changan Automobile, and Integrated
Management of Two Industrializations Representative, Chairman of the Labor Union, President of Changan Automobile University.
Mr. Zhang Deyong, Director, CFO. Born in 1975, ,he is Senior Accountant with MPAcc. He was the Deputy Director, Director,
37
Chongqing Changan Automobile Company Limited 2021 Annual Report
Assistant Director of the Finance Division of Automation Research Institute of CSG, Deputy Manager of the Finance Department of
CSG, Deputy Director of the financial department of CSG, Director, CFO and Member of the Party Committee of Chongqing Changan
Industry Group Co., Ltd., Executive Vice President of Changan Automobile.
Mr. Liu Jipeng, Independent Director. Born in 1956, he has a master’s degree. He is a Vice-Senior Professor, Senior Research
Fellow, Senior Economist and Certified Public Accountant and currently serves as Dean and Phase II Professor of Business School of
China University of Political Science and Law. He is currently the Dean, Vice-Senior Professor, and Doctoral Supervisor of the Capital
Finance Research Institute of China University of Political Science and Law; Chief Expert of major projects of the National Social
Science Fund; Legal Adviser to the State-owned Assets Supervision and Administration Commission of the State Council; Vice
Chairman of China Enterprise Reform and Development Research Association; Deputy Director of the independent board of directors
of the China listed companies Association; Member of Legal Advisory Committee of Shenzhen Stock Exchange. He is a famous expert
on joint-stock systems and corporate issues, specializing in the combination of joint-stock systems, collectivization, and
internationalization theory and practice. In the last 20 years, he has managed the shareholding system reform, corporate strategy,
acquisition and reorganization, financing scheme design for over 300 companies, such as State Grid, Aviation Industry Corporation of
China, Chinalco, Haier Group and China Southern Power Grid Company Limited. These enterprises from various industries cover
more than 20 cities. He is called “the first person in stock reform” by media.
Mr. Li Qingwen, Independent Director. Born in 1956, he is currently the Dean of the Automobile Evaluation Institute, Dean of
Beijing Hidden Unicorn Information Technology Institute and Vice Chairman of the China Automobile Talent Research Association.
He served as Chairman of China Energy Automobile Communications Group, President of China Automobile Newspaper, President
of China Energy Newspaper, Director and Deputy Director of the General Office of Heilongjiang Provincial People’s Government,
and Secretary of Hailin Municipal Committee of Heilongjiang Province. Since 1998, his works with a total of over one million words
in automotive research, monographs, reviews, and interviews have been published.
Mr. Chen Quanshi, Independent Director. Born in 1945, he has a bachelor’s degree. He is currently a Professor and Doctoral
Supervisor of the Department of Automotive Engineering of Tsinghua University and Honorary Director of the Electric Vehicle Branch
of the China Automobile Engineering Society. He served as Director of the Electric Vehicle Research Office, Vice President of the
School of Mechanical Engineering of Tsinghua University, Head of the Department of Automotive Engineering, and Director of the
Automobile Research Institute. To undertake the topic of “Fuel Cell City Passenger Vehicle Technology Research” in the major national
“863” electric vehicle projects, national energy conservation and new energy vehicle 863 major projects; He won the first prize for
scientific and technological progress in Beijing in 2009 and the second prize for national invention(ranked second). He published a
monograph “Fuel Cell Electric Vehicle”(first author) 2004, Tsinghua University Press; Editor-in-Chief of Advanced Electric Vehicle
Technology (First Author) the first edition of 2007 (won the second prize of the National Machinery Industry Science and Technology
Progress Award).
Mr. Ren Xiaochang, Independent Director. Born in 1956, he has a bachelor’s degree. He served as Chairman and General Manager
of China Automobile Engineering Research Institute, the Expert of the 12th Five-Year plan national key science and technology special
(EV) project panel, and the Committee Member of the second national strategic emerging industry development expert advisory
committee. He is the expert of the Chinese machinery industry science and technology, the special subsidy expert of the State Council
and the evaluation expert of the national science and technology award, the member of the academic committee of China Academy of
international engineering. Its main research and scientific research projects have won the awards such as provincial and ministerial
level and scientific and technological progress awards, including 3 second-level awards and 3 third-level awards.
Mr. Tan Xiaosheng, Independent Director. Born in 1970, he has a bachelor’s degree. He is Founder and Chairman of Beijing
Cyber Yingjie Technology Co., Ltd., Senior Engineer, Founder of Zhengqi Ccollege, Chief Security Officer of 360 Group. In 2020, he
was awarded the title of the first batch of network security innovation and entrepreneurial instructors from the Cyber Security Industry
Development Center of the Ministry of Industry and Information Technology, and a cyber security expert from the Cyber Security
Bureau of the Ministry of Public Security. In 2018, he was awarded the title of Excellent Network Security Talent by the China Internet
Development Foundation, and is a director and deputy secretary-general of the China Computer Federation (CCF). In 2012, he was
awarded the title of Zhongguancun High-end Leading Talent, and a member of the Safety Science and Engineering Professional
Teaching Committee of the Ministry of Education. Worked successively in Xi'an Jiaotong University, Peking University Founder,
Shenzhen Hyundai, Shenzhen Haoxin, 3721, Yahoo China, MySpace China, 360 Group, engaged in anti-virus system under DOS
operating system, disk copy software, Chinese character operating system, large-scale management information System research and
development, leading the telecommunication business support system, search engine, big data/cloud computing platform system,
network security research, network security product development team.
Mr. Wei Xinjiang, Independent Director. Born in 1969, he is a researcher with a PhD. He is currently the Deputy General Manager
of the Development Planning Department of China Life Pension Insurance Co., Ltd. and Senior Researcher of China Life Financial
Research Institute, and an arbitrator of Shenzhen Court of International Arbitration. He was engaged in teaching and scientific research
for 13 years at the International Investment Department of the Chinese Academy of Finance and the School of Banking and Finance of
University of International Business and Economics. He studied and worked at Holland Business School, the University of Birmingham,
the European Commission and the United Nations Hague International Court of Justice for 3 years. He is the expert in international
business, overseas M & A, operation of capital market and so on. He has done research on finance, insurance, overseas investment, and
comprehensive finance and so on. He also served as a part-time Professor and Postgraduate Supervisor of School of Finance and
Finance of Renmin University of China, the School of International Business and Economics of the University of International Business
and Economics and the Holland Business School. He has published nearly 160 papers in international and domestic journals, and 8
books, such as the fraud and anti-fraud of automobile insurance, the comparative study of the anti-monopoly policies between the
United States and the EU, and the analysis of the accounting statements and investment value of the enterprises.
Mr. Cao Xingquan, Independent Director. Born in 1971, he has a Doctor of Laws (LL.D.) degree. He is currently a professor at
the School of Civil and Commercial Law of Southwest University of Political Science and Law, and a doctoral tutor in the direction of
civil and commercial law. He has 20 years of civil and commercial law teaching and research experience, including 17 years of teaching
at Southwest University of Political Science and Law. He is a lecturer in the National fine course “Business Law” and the National
38
Chongqing Changan Automobile Company Limited 2021 Annual Report
Resource sharing course “Business Law”. He focuses on the study of commercial law, company law, securities law, and insurance law.
He has presided over or participated in more than 20 various scientific research topics, published more than 60 academic papers,
published more than 10 academic works and participated in teaching materials; He is Standing Director of Commercial Law and
Insurance Law Society of China Law Society; He once served as Vice President of the Fourth Division of the Chongqing First
Intermediate People’s Court Civil Trial; Member of Chongqing People's Procuratorate Expert Committee on Civil Administration
Supervision. He has participated in many national and local legislative consultations, engaged in a large number of professional
consultations, special lectures, and legal services in enterprise restructuring, capital operations, and corporate governance, and
concurrently served as an arbitrator in arbitration institutions in Chongqing, Zunyi, Tangshan and other places.
Mr. Yang Xinmin, born in 1960, PhD. He is currently a professor at the School of Mathematical Science, Chongqing Normal
University, Vice President of the China Association of Industry and Applied Mathematics, Director of the Chongqing National Center
for Applied Mathematics, and Deputy Director of the National Tianyuan Mathematics Southwest Center. In 2012, he was awarded the
National Outstanding Scientific and Technological Worker, in 2014, the National Outstanding Professional and Technical Talents, and
was elected an academician of the International Academy of Sciences in 2016. He is engaged in the teaching and scientific research of
optimization theory and method, generalized convexity theory and vector optimization theory in mathematics.He has presided over 10
National Natural Science Foundation of China projects, including 1 major project (2019) and 2 key projects (2008, 2014). In the field
of operational research (mathematics), original achievements, he won the national natural science second prize (first, 2018), the
Ministry of Education natural science first prize (independent, 2009), China youth science and technology award (2001), Chongqing
science and technology outstanding contribution award (2017), Chongqing natural science first prize (independent, 2013) and
Chongqing science and technology progress (first, 1998) and Chinese operations research award (2016) and China systems engineering
society theoretical research award (2018).
2. Supervisors
Mr. Lian Jian, Chairman of the Board of Supervisors. Born in 1963, he is a Professorate Senior Engineer with a master degree.
He is the Senior Director of China South Industries Group Co., Ltd. in the Southwestern area. Past working experiences include: Deputy
Department Chief of technology, Deputy Chief Engineer, Chief Engineer, Plant Director, Deputy Party Committee Secretary, Party
Committee Secretary, General Director, Vice Chairman of Chongqing Changfeng Machine Manufacturing Co., Ltd. Board director,
Party Committee Secretary, Labor Union Chairman of Chongqing Hongyu Precision Industrial Co., Ltd. Deputy Party Committee
Secretary, Discipline Inspection Secretary, and Senior Director of China South Industries Group Co., Ltd. in the Southwestern area
(motorcycle department). Chairman and Party Committee Secretary of Chongqing Huxi Electrical Industrial Co., Ltd.
Mr. Sun Dahong, Supervisor. He was born in 1966, master degree, senior economist. Currently, he is the Vice Director of the
Legal Department. He used to be the Vice Director of Legal Division under the General Office in China South Industries Group, Vice
Director and Director of Legal Advisor Division in China South Industries Group, and Director of Legal Affairs Division of general
office, Deputy Director of General Office and the Chief of Secrets Agency in South Industries Group.
Mr. Shi Shengwei, Staff Supervisor. Born in 1971, university undergraduate, Political Engineer. He is currently the discipline
inspection officer of the Discipline Inspection Department. He used to be a worker in the 131 workshop, a machining worker, the
maintenance mechanician of the first machining department of the engine company, communication staff and Director of Party Affair
Office of the Comprehensive Management Division of Plant Four, Director of the Party Affair Office of the Comprehensive
Management Division of Jiangbei Engine Plant, Discipline Inspection and Supervision staff of Discipline Inspection and Supervision
Department, and manager of Integrity Business Office of Changan Mazda Automobile Co., Ltd.
Ms. Luo Yan, Staff Supervisor. She was born in 1974, bachelor degree, assistant economist. Currently, she is the Chief of Jiangbei
section of HR Sharing Center. She used to be the maintenance electricians, engineering measurer person, labor technology fixed
member, schemer in workshop No.232 of No.3 plant, Chief of welfare section of Salary Division of HR Department, and Chief of
welfare office III.
3. Senior Management other than Directors and Supervisors
Mr. Yuan Mingxue, Deputy Secretary of the Party Committee, Chairman of the Labor Union, director of Changan Learning Center.
Born in 1968, master’s degree, senior engineer, he used to be the Assistant to President of Changan and EVP of Jiangling Motor
Holding Co., Ltd., Director and Party branch Secretary of Strategic Planning Department, Division Chief of Capital Division, general
director and Party Branch Secretary of Overseas Development Department, Vice President and Executive Vice President of Changan
Automobile (Group) CO., Ltd.
Mr. He Chaobing, Secretary of the Party Committee of Oshan Automotive Division, Executive Vice President and Director of
Operations Management Committee, born in 1967, master degree, senior engineer. A former Director of NO. Four development center
and Vice President of Automobile Engineering Research Institute, Deputy Director of Commercial Vehicle Business Management
Department, President Assistant and General Manager of the Beijing Changan Automobile Co., Ltd, President Assistant and Director
of the Purchase Department, President Assistant and Vice General Manager of the Commercial Vehicle Division, Executive Vice
President and Party Secretary of Changan Ford Motor Co., Ltd.
Mr. Hua Zhanbiao, Secretary of the Commission for Discipline Inspection and Director of the Office of the Inspection Work
Leading Group. Born in 1967, bachelor degree, senior accountant. Served as Deputy Director of the Company’s Audit Department,
Deputy Director of the Audit and Supervision Department, Director of the Audit Department, Director of the Audit and Supervision
Department, Deputy Secretary of the Party Branch, Deputy Secretary of the Company’s Disciplinary Committee, Assistant President
of the Company and Director of the Finance Department, and Secretary of the Party Branch, General Manager of Chongqing Changan
Auto Union Technology Co., Ltd.
Mr. Tan Benhong, the Executive Vice President and CEO of Avatr Technology (Chongqing) Co., Ltd. Born in 1975, master degree,
engineer. He was the Deputy Director of Changan Technology Department, the Product Technology Manager of the Nanjing factory of
Changan Ford Automobile Co., Ltd., the Deputy Director of the reception office and the secretarial reception department of the Changan
Company Office, the Director of the Technical Planning Institute of the Automobile Engineering Research Institute, the Deputy Chief
Engineer of the Automobile Engineering Research Institute and the Director of the Institute of Technical Planning and Research, the
39
Chongqing Changan Automobile Company Limited 2021 Annual Report
Vice president of the General Academy of automobile engineering research, Dean of Beijing Research Institute, the department head
of Market Department, Brand Public Relations, Product Planning Department, and Vice Deputy President and Secretary of the Party
committee of the Research Institute, the spokesman of company and the director of the Style and Design Institute.
Mr. Ye Pei, the Executive Vice President, and General Manager of the Passenger Car Operation Management Committee, born in
1975, master's degree, engineer. He once served as the Deputy Chief of the Jiangling Engine Branch General Administration Division,
Deputy Chief of the Quality Division, Deputy Director of the Quality Management Department, Assistant General Manager of Nanjing
Changan Automobile Co., Ltd., Deputy Minister of Quality and Director of the Quality Evaluation and Improvement Department.
Director of Market Quality Office, Deputy Director of the company's office, General Manager and Secretary of the Party Committee
of Nanjing Changan Automobile Co., Ltd., Deputy General Manager of Commercial Vehicle Business Department and Manufacturing
Logistics Department of Commercial Vehicle Business Department and Secretary of the Party Branch, Assistant to the General Manager
of the company, General Director and Secretary of the party branch of the Strategic Planning Department, General Manager and Party
Secretary of the Sedan Sales Department, General Manager and Party Secretary of Passenger Car Marketing Department, Corporate
VP.
Mr. Zhao Fei, the Executive Vice President of Changan and Executive Vice President of Changan Ford, Secretary of the party
committee, born in 1974, master's degree, senior engineer. He used to be the Technical Director and Technical Quality Manager of the
Engine Department of Changan Ford Mazda Automobile Co., Ltd.; Engine Director of Changan Ford Mazda Automobile Co., Ltd..;
Institute Director of Chang 'an Automobile Research Institute Engine Technology; Deputy director of Chang 'an Engine 4 Factory;
China Changan Group's deputy general manager of science and technology development department; Director and General Manager
of Harbin Dongan Automobile Engine Manufacturing Co. Ltd.. Party secretary and chairman of Harbin Dongan automobile engine
manufacturing Co., Ltd., assistant to President and minister of strategic planning, party branch secretary, vice president of Changan
Automobile.
Mr. Chen Wei, Executive Vice President and Director of Safety Production of the company, Deputy Director of the Oshan Business
Management Committee. Born in 1972, undergraduate, engineer. He once served as Secretary of the Youth League Committee of
Changan Automobile Manufacturing Plant, Director of the Factory Office, Deputy Director, Director, and Party Committee Secretary;
Vice President of Personnel and Secretary of Discipline Committee of Changan Ford Co., Ltd.; Changan Automobile Manufacturing
and Logistics Department Director, Party Branch Secretary, Director of the OTD Project of the company, General Manager of Beijing
Changan Automobile Company, Secretary of the Party Committee, and Director of the Beijing Research Institute Construction Project,
Secretary of the Party Committee of Lingyao Automobile, and Vice President of Changan.
Mr. Li Mingcai, Executive Vice President, General Counsel of the Company, and Representative of Managers of Integration. Born
in 1981, master’s degree. He used to be the Acting Manager and Manager of the Sales Department of Chongqing Changan Automobile
International Sales Service Co., Ltd., Assistant General Manager and Sales Regional Manager of Changan Automobile Overseas
Business Development Department, Deputy General Manager of Overseas Business Development Department, General Manager of
International Sales Company, Deputy General Manager of Changan Automobile Overseas Business Development Department, Director
of Russian JV Project, Brazilian Project Manager, General Manager of Overseas Business Department, General Manager of
International Sales Company, and Vice President of Changan.
Mr. Yang Dayong, Vice President, Party Secretary of Chongqing Changan New Energy Vehicle Technology Co., Ltd. Born in
1974, Han nationality, university undergraduate, assistant economist. He once served as the Changan Marketing Director, Deputy
Director and Director of Commercial Vehicle Management, Director and Party Branch Secretary of Brand and Public Relations,
Spokesman, High-End Car Brand Team Senior Project Director, Intelligent Industry Development Project Senior Project Director, and
General Manager of Chongqing Changan new energy automobile technology co., LTD.
Mr. Peng Tao, Vice President and Director of the Light Vehicle Operation Management Committee. Born in 1978, he is a senior
engineer and undergraduate. He served as Deputy Division Chief and Division Chief of Passenger Vehicle Planning Department,
Deputy Director of Product Planning Department, Executive Deputy General Manager and Party Branch Secretary of Product Planning
Department, Executive Deputy General Manager of Passenger Vehicle Marketing Department, General Manager and Party Secretary
of Passenger Vehicle Marketing Department.
Mr. Zhang Xiaoyu, Vice President. Born in 1979, he is a senior engineer with doctoral degree. He served as the Deputy Managing
Director and Managing Director of UK R&D Center of Changan Power Research Institute, Deputy General manager of Power Research
Institute, H13T Project Director, Director of NE Series Powertrain Project, General Manager of Power Research Institute and General
Manager of Product Development II.
Mr. Wang Xiaofei, Vice President. Born in 1982, an engineer, university undergraduate. He used to be the product planning
manager of Planning and Operation Department of Commercial Vehicle Business Division, Deputy Director of Commercial Vehicle
Business Division, Deputy Director of Product Department of Oshan Automobile Business Division, Deputy General Manager of
Passenger Vehicle Marketing Division, Deputy General Manager of Product Planning Department and General Manager of Oshan
Automobile Business Division.
Ms. Li Jun, Secretary of the Board and the Vice Director of Capital Operation Department and Special Expert of the Board of
Directors Office. Born in 1969, MBA, senior accountant. She used to be the Deputy Division Chief and Division Chief of Securities
Investment Office, Division Chief of Capital Operation Office of the Financial Department, Director of the BOD Office, Deputy
Director of the Finance Department and the Deputy General Manager of the Capital Operation Department.
Employment in shareholders’ work unit
√Applicable □ Not applicable
Whether having
renumeration or
Name of shareholders’ work Position in shareholders’
Name Term start date Term end date allowance in
unit work unit
shareholders’ work
unit
40
Chongqing Changan Automobile Company Limited 2021 Annual Report
Assistant General Manager
China South Industries Group
of China South Industries
Zhu Huarong Co., Ltd. and China Changan N
Group Co., Ltd. and the
Automobile Group Co., Ltd.
director of China Changan
China South Industries Group Director of the Strategic
Ye Wenhua Y
Co., Ltd. Development Department
China Changan Automobile Chairman, President and
Zhou Kaiquan Y
Group Co., Ltd. Party Secretary
China South Industries Group Director of Finance
Zhang Bo Y
Co., Ltd. Department
China South Industries Group
Liu Gang Vice Chief Engineer of CSG Y
Co., Ltd.
China South Industries Group Senior Managing Director
Lian Jian Y
Co., Ltd. of the Southwestern Region
China South Industries Group Deputy Director of Legal
Sun Dahong Y
Co., Ltd. Department
Position in
No
other work unit
Employment status in other units
√Applicable □ is not applicable
Term Whether get
Name of other Term
Name Position in other work units start allowance in
work units end date
date other work unit
Dean of Capital Finance Research Institute, China
University of Political Science and Law, Second-Level
Professor, Doctoral Supervisor; Chief Expert of major
projects of the National Social Science Fund; Legal
China University Counsel of the State-owned Assets Supervision and
Liu Jipeng of Political Administration Commission of the State Council; Vice Yes
Science and Law Chairman of China Enterprise Reform and Development
Research Association; Deputy Direct of the Independent
Director Committee of China Association of Listed
Companies; Member of the Legal Advisory Committee of
the Shenzhen Stock Exchange
Dean of the CarBingo Academy, Dean o of Beijing
CarBingo
Li Qingwen Hidden Unicorn Information Technology Institute and Yes
Academy
Vice Chairman of the China Auto Talent Committee
Professor and Doctoral Supervisor of the Department of
Tsinghua Automotive Engineering of Tsinghua University, and
Chen Quanshi Yes
University Honorary Director of the Electric Vehicle Branch of the
China-SAE
Beijing Genius
Cyber Founder, Chairman, Senior Engineer, Beijing Genius
Tan Xiaosheng Yes
Technology Co., Cyber Technology Co., Ltd., Founder of Zhengqi College
Ltd
China Life Deputy General Manager of Development Planning
Wei Xinjiang Insurance Co., Department of China Life Insurance Co., Ltd., Senior Yes
Ltd. Researcher of China Life Financial Research Institute
Southwest
Professor of the School of Civil and Commercial Law of
University of
Cao Xingquan Southwest University of Political Science and Law, and a Yes
Political Science
doctoral tutor in the direction of civil and commercial law
& Law
Professor of School of Mathematical Sciences, Chongqing
Chongqing Normal University, Director of Chongqing National
Yang Xinmin Normal Center for Applied Mathematics, Director of the Key Yes
University Laboratory of Optimization and Control, Ministry of
Education
Position in
No
other work unit
Securities regulator’s punishment to the current and former directors, supervisors and senior management during the
reporting period in recent three years.
□Applicable √Not applicable
41
Chongqing Changan Automobile Company Limited 2021 Annual Report
3. Remuneration of directors, supervisors and senior management personnel
Decision-making process, basis, the actual payment of remuneration for directors, supervisors and senior management
personnel
Decision-making process: the annual remuneration of the company's directors, supervisors, and senior executives, except for
independent directors, is issued in accordance with the relevant remuneration management regulations and standards of the company
and based on the achievement of performance targets. Payment of company independent directors is prescribed by the board of directors
and submitted to the board of directors of the company, and approved by the shareholders' general meeting.
The basis: the senior management evaluation is divided into annual appraisal, term assessment and follow-up examination. Annual
appraisal is to evaluate the business performance which senior management is in charge of, and the employee representatives and part
of the units give democratic appraisal or special evaluation on senior management; the assessment results will feedback to senior
management in time about the problems in their work and relevant suggestions for improvement, which will be rectified in the coming
new year. At the same time the assessment results will be linked to the annual performance bonus. Term assessment is based on the
democratic evaluation of all senior management and staff representatives, which will be combined with special visits. The results are
related to the targeted training, promotion, exchange training and appointment of the senior management; follow-up examination on
new management is examination of the management with adjusted positions to understand the working status of the new team in time,
check the configuration effect of the new team, help them adjust as soon as possible, and reduce the risk.
Actual payments: Senior management staff will be paid a monthly basic salary, and annual performance bonus and special awards
will be cashed out in a lump sum in the current period based on the annual assessment. In 2021, directors, supervisors and senior
executives who receive remuneration from the company had a total of RMB 30.3765 million yuan in remuneration payable.
Remuneration of Directors, Supervisors and Senior Management Personnel during the reporting period
Whether
Total pre-tax
remunerated by
Name Position Gender Age Office status remuneration from
related-parties of
the Company
the company
Chairman, Secretary
Zhu Huarong of the Party M 56 Incumbent 2,474,797 N
Committee
Zhang Bo Director M 43 Incumbent Y
Liu Gang Director M 55 Incumbent Y
Ye Wenhua Director M 49 Incumbent Y
Zhou Kaiquan Director M 49 Incumbent Y
Director, President, Incumbent
Wang Jun Deputy Secretary of M 49 2,032,619 N
the Party Committee
Director, Chief Incumbent
Zhang Deyong accountant, Secretary M 47 1,991,175 N
of BOD
Liu Jipeng Independent Director M 65 Incumbent 120,000 N
Li Qingwen Independent Director M 66 Incumbent 120,000 N
Chen Quanshi Independent Director M 76 Incumbent 120,000 N
Ren Xiaochang Independent Director M 65 Incumbent 120,000 N
Tan Xiaosheng Independent Director M 51 Incumbent 120,000 N
Wei Xinjiang Independent Director M 53 Incumbent 120,000 N
Cao Xingquan Independent Director M 50 Incumbent 120,000 N
Yang Xinmin Independent Director M 61 Incumbent 40,000 N
Chairman of the Incumbent
Lian Jian M 58 Y
Board of Supervisors
Sun Dahong Supervisor M 55 Incumbent Y
Shi Shengwei Employee Supervisor M 50 Incumbent 407,689 Y
Luo Yan Employee Supervisor F 47 Incumbent 291,670 N
Deputy Secretary of Incumbent
Yuan Mingxue M 53 1,989,645 N
the Party Committee
Executive Vice Incumbent
He Chaobing M 54 1,818,763 N
President
Secretary for Incumbent
Hua Zhanbiao M 54 1,991,175 N
Discipline Inspection
Executive Vice Incumbent
Tan Benhong M 46 1,956,342 N
President
42
Chongqing Changan Automobile Company Limited 2021 Annual Report
Executive Vice Incumbent
Ye Pei M 46 2,863,214 N
President
Executive Vice Incumbent
Zhao Fei M 47 1,809,406 N
President
Executive Vice Incumbent
Chen Wei M 49 1,927,170 N
President
Executive Vice Incumbent
Li Mingcai M 40 1,902,860 N
President
Yang Dayong Vice President M 47 Incumbent 267,515 N
Peng Tao Vice President M 44 Incumbent 267,515 N
Secretary of the Incumbent
Li Jun F 52 839,601 N
BOD
Pang Yong Independent Director M 52 Outgoing 40,000 N
Zhao Jun Supervisor M 60 Outgoing Y
Executive Vice Outgoing
Liu Bo M 55 1,899,150 N
President
Zhou Zhiping Director M 51 Outgoing Y
Chairman of the Outgoing
Yan Ming M 56 Y
Board of Supervisors
Outgoing
Yu Chenglong Vice President M / 120,026 N
(deceased)
Wang Yanhui Employee Supervisor F 55 Outgoing 649,812 N
Tan Xiaogang Director M 58 Outgoing Y
Executive Vice Outgoing
Li Wei M 55 1,956,342 N
President
Total -- -- -- -- 30,376,486 --
VI. Performance of Directors during the reporting period
1. Board of Directors in the reporting period
Meeting Date of convening Disclosure date Meeting resolution
The 10th meeting of the 8th Session Please refer to the Resolution of the 10th Meeting of the
January 29, 2021 January 30, 2021
of Board of Directors 8th Board of Directors (No: Announcement 2021-04)
The 11th meeting of the 8th Session Please refer to the resolution of the 11th Meeting of the
February 1, 2021 February 2, 2021
of Board of Directors 8th Board of Directors (Announcement No: 2021-05)
The 12th meeting of the 8th Session Please refer to the Resolution of the 12th Meeting of the
February 22, 2021 February 23, 2021
of Board of Directors 8th Board of Directors (Announcement No: 2021-14)
The 13th meeting of the 8th Session Please refer to the Resolution of the 13th Meeting of the
March 30, 2021 April 1, 2021
of Board of Directors 8th Board of Directors (Announcement No: 2021-24)
The 14th meeting of the 8th Session Please refer to the resolution of the 14th Meeting of the
April 9, 2021 April 10,2021
of Board of Directors 8th Board of Directors (Announcement No: 2021-30)
The 15th meeting of the8th Session Please refer to the Resolution of the 15th Meeting of the
April 17, 2021 April 20, 2021
of Board of Directors 8th Board of Directors (Announcement No: 2021-33)
The 16th meeting of the 8th Session Please refer to the Resolution of the 16th Meeting of the
April 29, 2021 April 30, 2021
of Board of Directors 8th Board of Directors (Announcement No: 2021-41)
The 17th meeting of the 8th Session No disclosable matters involved
May 27, 2021
of Board of Directors
The 18th meeting of the 8th Session No disclosable matters involved
June 10, 2021
of Board of Directors
The 19th meeting of the 8th Session No disclosable matters involved
June 25, 2021
of Board of Directors
Please refer to the Resolution of the 20th Meeting of the
The 20th Meeting of the 8th Session
July 15, 2021 July 16, 2021 Eighth Board of Directors (Announcement No.: 2021-
of Board of Directors
58)
The 21st meeting of the 8th Session Please refer to the Resolution of the 21st Meeting of the
July 23, 2021 July 24, 2021
of Board of Directors 8th Board of Directors (Announcement No: 2021-59)
The 22nd meeting of the 8th Session
July 23, 2021 No disclosable matters involved
of Board of Directors
The 23rd meeting of the 8th Session Please refer to the Resolution of the 23rd Meeting of the
July 29, 2021 July 30, 2021
of Board of Directors 8th Board of Directors (Announcement No: 2021-61)
43
Chongqing Changan Automobile Company Limited 2021 Annual Report
The 24th meeting of the 8th Session
August 19, 2021 No disclosable matters involved
of Board of Directors
The 25th meeting of the 8th Session Please refer to the Resolution of the 25th Meeting of the
August 30, 2021 August 31, 2021
of Board of Directors Eighth Board of Directors (Announcement No: 2021-69)
The 26th meeting of the 8th Session September 27,
No disclosable matters involved
of Board of Directors 2021
The 27th meeting of the 8th Session Please refer to the Third Quarter 2021 Report
October 29, 2021 October 30, 2021
of Board of Directors (Announcement No: 2021-87)
The 28th meeting of the 8th Session Please refer to the Resolution of the 28th Meeting of the
November 5, 2021 November 6, 2021
of Board of Directors 8th Board of Directors (Announcement No: 2021-89)
The 29th meeting of the 8th Session November 19, Please refer to the Resolution of the 29th Meeting of the
November 22, 2021
of Board of Directors 2021 8th Board of Directors (Announcement No: 2021-93)
The 30th meeting of the 8th Session December 21, Please refer to the Resolution of the 30th Meeting of the
December 22, 2021
of Board of Directors 2021 8th Board of Directors (Announcement No: 2021-1001)
The 31st meeting of the 8th Session December 29,
No disclosable matters involved
of Board of Directors 2021
2. Attendance of directors at the board of directors and shareholders’ meeting
Attendance at BOD meetings and shareholders' meeting
Number of BOD Absent from
Number of
meetings that Attendance by meetings for Attendance at
BOD meeting Attendance
Name should be means of Absence two shareholders’
attendance at by proxy
attended in this communication consecutive meetings
spot
reporting period times
Zhu Huarong 22 2 18 2 NO 1
Zhang Bo 20 2 18 NO
Liu Gang 20 2 18 NO
Zhou Kaiquan 6 0 5 1 NO
Wang Jun 22 3 19 NO 1
Zhang Deyong 22 3 19 NO 3
Liu Jipeng 22 2 19 1 NO
Li Qingwen 22 3 19 NO
Chen Quanshi 22 3 19 NO
Ren Xiaochang 22 3 19 NO 1
Tan Xiaosheng 22 2 19 1 NO
Wei Xinjiang 22 3 19 NO
Cao Xingquan 22 3 19 NO 2
Yang Xinmin 6 1 5 NO 1
Tan Xiaogang 20 1 17 2 NO
Zhou Zhiping 13 2 11 NO
Pang Yong 7 2 5 NO
Explanation of the members of the Board who failed to attend Board meetings in person for two consecutive times
Not applicable
3. The directors’ objections to the relevant matters of the company
Disagreement of the directors on matters related to the Company
□Yes √ No
During the reporting period, the directors did not raise objections to the relevant matters of the company.
44
Chongqing Changan Automobile Company Limited 2021 Annual Report
4. Other statement of the directors performance of duties
Whether the directors' suggestions on the company are adopted
√Yes □ No
Description of the directors on the adoption or non-adoption of relevant suggestions of the company
According to the Company Law, the Articles of Association and other relevant provisions, the directors of the company performed
their duties and obligations diligently and responsibly, and put forward valuable professional opinions on the improvement of the
company's system and daily operation decision-making, which effectively improved the standardized operation and scientific decision-
making of the company. In addition, the independent directors of the company have issued independent and fair opinions on the
company's restricted stock incentive plan, annual profit distribution, annual daily related transaction forecast, accounting policy
changes, storage and use of raised funds, etc., effectively safeguarding the legitimate rights and interests of the majority of investors,
especially medium and minority investors.
VII. Duty Performance of Specialized Committees of the Board of Directors during the Report
Period
Number
Important comments Other Specific
Committee of Date of
Members Meeting content and suggestions that performance objection (if
name meetings convening
are made of duties any)
held
Financial
statements
prepared by the
April 2nd, All the motions were
Company;
2021 passed unanimously
internal audit
work plan for
2021
Internal Control
Audit Report in
2020; 2020 Audit
Results and Key
Matters
Communication
Report; 2020
Financial
Statements (after
Liu audit); 2020
Jipeng, April Internal Control
All the motions were
Audit Wei 15th, Self-Evaluation
Five passed unanimously
Committee Xinjiang, 2021 Report; Proposal
Zhang for Hiring 2021
Deyong Financial Report
Auditor and 2021
Internal Control
Report Auditor;
Second Quarter
Work Plan and
First Quarter
Internal Audit
Report
Report on the
Audit and
August All the motions were
Inspection Work
30,2021 passed unanimously
in the first half
year of 2021
October Report on the
All the motions were
29th, Audit and
passed unanimously
2021 Inspection Work
45
Chongqing Changan Automobile Company Limited 2021 Annual Report
in the third
quarter of 2021
General Audit
December
Plan for 2021 and All the motions were
29th,
Related Audit passed unanimously
2021
Requirements
Proposal of the
Company's A-
Share Restricted
Stock Incentive
Plan (Revised
Draft) and its
summary;
Proposal of
February All the motions were
Assessment and
1st, 2021 passed unanimously
Management
Measures for the
Implementation
Chen of the Company's
Quanshi, A-Share
Pang Restricted Stock
Yong, Tan Incentive Plan
Xiaosheng (Revised Draft)
Proposal on
Adjusting the List
and Number of
Initial Granting
of A-share
February
Restricted Stock All the motions were
22nd,
Incentive Plan; passed unanimously
Compensation 2021
Proposal on the
and
Four Initial Granting
Assessment
of A-share
Committee
Restricted Stock
Incentive Plan
Proposal on
Adjusting the
Repurchase Price
of A-share
Restricted Stock
August Incentive Plan;
All the motions were
30th, Proposal on the
passed unanimously
2021 Repurchase and
Cancellation of
Chen Certain Restricted
Quanshi, Shares Granted
Tan but still with
Xiaosheng Sales Restrictions
Proposal on
Adjusting the
Number of
November Reserved A-share
All the motions were
19th, Restricted Stock
passed unanimously
2021 Incentive Plan;
Proposal on
Granting
Reserved
46
Chongqing Changan Automobile Company Limited 2021 Annual Report
Restricted Stock
to the Incentive
Objects of A-
share Restricted
Stock Incentive
Plan
Proposal on the
January 2021 Financing
All the motions were
29th, Plan; Proposal on
passed unanimously
2021 the 2021
Investment Plan
Proposal on the
Company's
Subsidiaries to
February Carry Out All the motions were
1st, 2021 Forward Foreign passed unanimously
Exchange
Settlement
Transactions
Proposal on the
Bill Pool
Business;
February
Proposal on the All the motions were
22nd,
Forward Foreign passed unanimously
2021
Exchange
Purchase
Zhu
Transaction
Huarong,
The Strategic Proposal on the
Wang Jun,
and establishment of
Tan Seven
Investment Chongqing
Xiaogang,
Committee Intelligent
Ren
April 9th, Vehicle Equity All the motions were
Xiaochang
2021 Investment passed unanimously
Partnership
(limited
partnership)
(tentative name)
2020 Financial
April Accounts and
All the motions were
17th, 2021 Financial
passed unanimously
2021 Budget
Description
August Proposal on the
All the motions were
30th, public issuance of
passed unanimously
2021 corporate bonds
Proposal on the
Holding
Subsidiary to the
November All the motions were
Public Listing
5th, 2021 passed unanimously
Way to Increase
Capital And
Share
VIII. The work of the board of supervisors
Whether the company was at risk during the report period according to the supervision of the board of supervisors
□Yes √ No
47
Chongqing Changan Automobile Company Limited 2021 Annual Report
The Board of Supervisors supervised and inspected the legal compliance of the company's financial situation, measurement of
managing major affairs of the company, operation and management activities, and the implementation of major strategies. The Board
of Supervisors has no objection to the supervision matters during the reporting period.
IX. The Employees of the Company
1. The number of employees, professional field and education level
Number of incumbent employees in the parent company 29,471
Number of incumbent employees in major subsidiaries 12,973
Total number of incumbent employees 42,444
Total number of incumbent salaried employees 42,444
Number of retired employees for whom parent company and major
6,603
subsidiary bear the costs
Professional composition
Professional fields Number
Production 27,504
Sales 1,916
Technology 8,752
Finance 450
Administration 498
Management 3,324
Total 42,444
Educational Background
Degree Number
PhD 109
Postgraduate 2,201
Bachelor 11,778
Junior college 10,966
Technical secondary school and high school 15,069
Middle school and below 2,321
Total 42,444
2. Compensation policy
The company continues to deepen the reform of the distribution system, improve the market-oriented distribution mechanism, be
performance-oriented, link the compensation and benefits, comprehensively carry out labor cost-linked operation management, urge
business departments to improve the quality of operation, and promote efficiency improvement and value creation. Establish and
improve the middle to long-term incentive and restraint mechanism to closely bind the core cadres’ interests with the company’s middle
to long-term operation, and support the company's strategic development.
3. Training plan
Company staff training in 2022 will be guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era
and principles of the 19th CPC Central Committee’s Sixth Plenary Session, centering around the Third Business Venture-Innovation
and Entrepreneurship Program. The key is “shoulder responsibilities and forge ahead with a strong foundation and an innovative spirit”,
around strategic transformation with the software capability and efficiency as two core competitiveness and six key ability. Through
the transformation talent certification, the echelon talent training, we will speed up building new ability and personnel transformation
to make Changan an intelligent low carbon mobility technology company.
4. Outsourcing of services
□ Applicable √ Not applicable
X. Distribution of profits and capital reserve
The formulation, implementation or adjustment of profit distribution policies, especially the formulation, implementation or the
adjustment situation of cash dividend policy.
√ Applicable □Not applicable
48
Chongqing Changan Automobile Company Limited 2021 Annual Report
According to the China Securities Regulatory Commission requirements, the Notice on Further Implementing Matters concerning
Cash Dividends of Listed Companies as issued by the CSRC, the Guideline No. 3 for the Supervision of Listed Companies—Cash
Dividends of Listed Companies, in combination with the practical situation of the company, the Company has rectified the “Articles
of Association” and clarified the distributable profit caliber, dividend distribution means, principle, form, cash dividend conditions and
proportion, stock dividend condition, plan making and review procedures, the implementation, the conditions of distribution policy
adjustment, and decision-making procedures, etc, to strengthen the supervision of independent directors in the profit distribution plan,
policy adjustment, and strengthen the institutional guarantee of the dividend for investors. For details of the company’s specific
distribution policy, please refer to the Articles of Association. Company’s reported profit distribution plan and equity shares in line
with the relevant provisions of the Articles of Association and relevant provisions.
Special statement for cash dividend policy
Whether it comply with the Articles of Association or the resolutions of the shareholders'
Yes
general meeting:
Are the standard and the proportion of distribution clear: Yes
Are the related decision-making process and mechanism thorough: Yes
Have independent directors fulfilled their duties and performed
Yes
their due roles:
Whether medium and minority shareholders have the chance to fully express their views and
Yes
demands and whether the legitimate rights and interests are fully protected:
Whether cash dividend policy is adjusted or changed and whether the conditions and
Not Applicable
procedures are compliant and transparent:
During the reporting period, the company made profits and the parent company could distribute profits to shareholders, but did not
put forward the dividend distribution plan
□ Applicable √ Not applicable
Plans of profit distribution and increase of capital stock by transfer of capital reserve during the reporting period
√ Applicable □Not applicable
Number of bonus shares per ten shares (share) -
Dividend per ten shares (RMB) (tax included) 2.33
Increased shares through transfer for per 10 shares (shares) 3
Equity base of distribution plan (shares) 7,632,153,402
Cash dividends (RMB) (tax included) 1,778,291,742.67
Cash dividend (RMB) of other means (such as repurchase) -
Total cash dividend (RMB) (including other means) 1,778,291,742.67
Distributable profits (RMB) 36,887,741,937.47
Proportion (%) of cash dividends (including other means) to
100%
total profit distribution
Cash dividend policy：
others
Detailed description of profit distribution or increase of capital stock by transfer of capital reserves
The 38th meeting of the 8th Session of Board Of Directors of the company deliberated and passed the 2021 Profit Distribution Plan,
which still needs to be submitted to the 2021 annual general meeting for deliberation. In accordance with the provisions of the
Articles of Association, the relevant decision-making procedures and mechanisms are thorough, which fully protect the legitimate
rights and interests of medium and minority investors, and the independent directors perform their duties and express their opinions.
XI. Implementation of company equity incentive plans, employee stock incentive plans or other
incentive measures
√ Applicable □ Not applicable
1. Equity incentive
On July 13, 2020, the 2nd meeting of the 8 th Session of Board of Directors and the 2nd meeting of the 8th Session of Board of
Supervisors reviewed and approved proposals such as “Proposal on
and its Summary” and “Proposal on ”. The independent directors expressed their independent agreement on the incentive plan.
On February 1, 2021, the 11th meeting of the 8th Session of Board of Directors and the 7th meeting of the 8th Session of Board
of Supervisors reviewed and approved proposals such as “Proposal on and its Summary” and “Proposal on (Revision)”. The independent directors expressed their independent agreement on the incentive
plan revision.
On February 18, 2021, the Company held the first extraordinary general meeting in 2021, and reviewed and approved proposals
such as “Proposal on and its Summary”, “Proposal on
49
Chongqing Changan Automobile Company Limited 2021 Annual Report
” and
“Proposal on General Meeting Granting Full Authority to the Board of Directors to Handle Matters Related to Equity Incentives”.
On February 22, 2021, the Company held the twelfth meeting of the Session of Board of Directors and the 8th meeting of the
Session of Board of Supervisors, which reviewed and approved proposals such as “Proposal on Adjusting the List of Incentive Objects
and Incentive Quantity of the A-Share Restricted Stock Incentive Plan under Initial Granting” and "”Proposal on Granting Restricted
Stocks for the First Time to Incentive Objects of A-Share Restricted Stock Incentive Plan”. The independent directors expressed their
independent agreement.
On March 3, 2021, the Company completed the registration of restricted stocks and disclosed the “Announcement on the
Completion of the Registration of the Initial Granting of the A-Share Restricted Stock Incentive Plan”. 1,247 people were actually
granted with 76,195,400 restricted shares. The listing date of restricted shares was March 5, 2021.
On August 30, 2021, the Company held the 25th meeting of the 8th Session of Board of Directors and the 12th meeting of the 8th
Session of Board of Supervisors, which reviewed and approved the “Proposal on Adjusting the Repurchase Price of A-Share Restricted
Stock Incentive Plan” and “Proposal on Repurchase and Cancellation of Certain Restricted Shares Granted to Incentive Objects but
still with Sales Restriction”. The independent directors expressed independent agreement.
On September 17, 2021, the Company held the second extraordinary general meeting in 2021, and reviewed and approved the
“Proposal on Repurchase and Cancellation of Certain Restricted Shares Granted to Incentive Objects but still with Sales Restriction”.
On November 19, 2021, the Company held the 29th meeting of the 8th Session of Board of Directors and the 15th meeting of the
8th Session of Board of Supervisors, and reviewed and approved the “Proposal on Adjusting the Amount of Reserved A-Share
Restricted Stock Incentive Plan” and “Proposal on Granting Reserved Restricted Stocks to the Incentive Objects of the A-Share
Restricted Stock Incentive Plan”. The independent expressed independent agreement.
On December 21, 2021, the Company completed the repurchase and cancellation of all 1.036 million restricted shares that had
been granted to the original 11 incentive objects but still had sales restrictions.
On December 30, 2021, the Company completed the registration of the reserved restricted stock and disclosed the “Announcement
on the Completion of the Grant of the Reserved A-Share Restricted Stock of the Incentive Plan”; 356 people were granted with
17,761,200 reserved restricted stocks. The listing date of reserved restricted stocks was December 31, 2021.
Equity incentives for directors and senior management
√ Applicable □ Not applicable
Unit: share
Number of
Number of
Price of shares Number newly Number of
Exercisable Shares Market price restricted
exercised of shares granted Grant price of restricted
shares exercised at the end of shares held
during the unlocked restricted restricted shares held
Name Position during the during the the reporting at the
reporting in the shares shares at the end
reporting reporting period beginning
period current during the (RMB/share) of the
period period (RMB/share) of the
(RMB/share) period reporting period
period
period
Chairman,
Zhu Secretary of the
15.19 350,000 6.66 350,000
Huarong Party
Committee
Director,
President,
Deputy
Wang Jun 15.19 280,000 6.66 280,000
Secretary of the
Party
Committee
Director, The
Chief
Zhang Accountant,
15.19 271,600 6.66 271,600
Deyong Board of
Directors
Sectary
Deputy
Yuan Secretary of the
15.19 280,000 6.66 280,000
Mingxue Party
Committee
He Executive Vice
15.19 271,600 6.66 271,600
Chaobing President
Secretary of
Hua Discipline &
15.19 271,600 6.66 271,600
Zhanbiao Inspection
Commission
Tan Executive Vice
15.19 271,600 6.66 271,600
Benhong President
Executive Vice
Ye Pei 15.19 271,600 6.66 271,600
President
Executive Vice
Zhao Fei 15.19 271,600 6.66 271,600
President
50
Chongqing Changan Automobile Company Limited 2021 Annual Report
Executive Vice
Chen Wei 15.19 271,600 6.66 271,600
President
Li Executive Vice
15.19 271,600 6.66 271,600
Mingcai President
Yang
Vice President 15.19 194,000 9.93 194,000
Dayong
Pen Tao Vice President 15.19 191,240 6.66 191,240
Zhang
Vice President 15.19 191,240 6.66 191,240
Xiaoyu
Wang
Vice President 15.19 132,300 6.66 132,300
Xiaofei
Board of
Li Jun Directors 15.19 191,240 6.66 191,240
Sectary
Executive Vice
Li Wei President 15.19 271,600 6.66 271,600
(outgoing)
Yu Vice President
15.19 191,240 6.66 191,240
Chenglong （Deceased）
Total -- -- -- 4,445,660 -- 4,445,660
1. The above-mentioned personnel and positions are as of the disclosure date of this report;
Notes (if any) 2. The above number of shares has been adjusted according to the implementation of the Company’s 2020 equity
distribution plan.
Evaluation mechanism and incentives for senior managers
For details, please refer to “V. 3. Remuneration of Directors, Supervisors and Senior Management” in Chapter 4.
2. Implementation of employee stock ownership plans
□ Applicable √ Not applicable
3. Other employee incentives
□ Applicable √ Not applicable
XII. Internal control system building and implementation during reporting period
1. Internal control building and implementation
Improve the management system and build an institutional system. Based on “the Basic Norms for Internal Control of
Chongqing Changan Automobile Company Limited”, the relevant systems of internal control, risk and compliance management have
been comprehensively sorted out. Unified internal control requirements have been incorporated into more than 4,900 specific business
systems, control objectives and risk response measures have been clarified, and the internal control system construction and supervision
system have been basically established. The specific operation rules are supported by the “1+N” internal control system.
Optimize working mechanism and improve working process. We established the "nine-step" internal control risk list
compilation method system, the internal control risk list compilation system of reasonable processes and effective implementation to
effectively improve the efficiency of internal control system construction.
Strengthen the implementation of internal control, improve prevention and control capacity. Focus on key business, key
reform areas, important links of state-owned capital operation and supervision of overseas state-owned assets, promote the construction
of internal control system standards in 26 key business areas such as state-owned assets supervision, reform coordination and risk
management, and effectively strengthen the construction of internal control standards and risk prevention in key business areas.
Strengthen the construction of internal control system of overseas enterprises, prevent overseas investment risks, and improve operating
efficiency and benefits. It has promoted the construction of internal control systems for overseas investment enterprises in Europe, the
UK, Japan, the US and Russia, established internal control management standards in seven key business sectors, including capital and
procurement, and conducted regular internal control self-evaluation to effectively prevent overseas investment risks and improve
operating efficiency and benefits.
Deepen the internal control system and promote the results of internal control. Changan Auto promotes the comprehensive
coverage of the internal control system of control-based enterprises, completes the standardization construction of internal control
system in sales, procurement and other business fields, and comprehensively builds an internal control management system covering
all levels of sub-enterprises and the whole business chain.
Positive self-evaluation, PDCA cycle. Carry out self-inspection on the effectiveness of the implementation of the internal control
system of enterprises at all levels, find problems, formulate measures, improve the implementation, and ensure the effective operation
and strong constraints of the internal control system.
Summarize work experience, accumulate work achievements. The first, second and third volumes of “Manual of Internal
Control System Construction” and “Compilation of Business Risk Control Lists” of Changan Auto have been issued, providing detailed
51
Chongqing Changan Automobile Company Limited 2021 Annual Report
theoretical guidelines and implementation guidelines for the construction of internal control system of the company and providing
scientific system support for the construction of corporate governance structure.
2. Details of significant defects in internal control during the reporting period
□ Yes √ No
XIII. Management and control of subsidiaries of the company during the reporting period
Problems
Integration Follow-up
Name Integration plan encountered in Solutions taken Progress
progress solution plan
the integration
not applicable not applicable not applicable not applicable not applicable not applicable not applicable
Note: During the reporting period, the company has no new purchase of subsidiaries.
XIV. Internal control self-evaluation report or internal control audit report
1. Self-evaluation report of internal control
Date of Full-text disclosure of internal
April 28th, 2022
control evaluation report
Inquiry index of internal control evaluation
Juchao (www.cninfo.com.cn)
report full text disclosure
The proportion of the total assets of units
included in the evaluation scope to the total
94.78%
assets in the company's consolidated
financial statements
The proportion of the operating income of
the unit in the evaluation scope to the total
95.56%
operating income of the company's
consolidated financial statements
Defect identification standard
Type Financial reports Non-financial report
1. Lack of, or violation of, democratic
1. Fraud of the directors, supervisors and
decision-making procedures;
senior managers of the Company.
2. Violation against state laws and
2. The Company shall correct the published
regulations with serious punishment;
financial report to correct major
3. Large loss of medium and senior
misstatements caused by fraud or errors, or
management personnel and senior
major misstatements in the current financial
technical personnel;
Qualitative standards report found by certified public accountants
4. Frequent and serious negative media
but not identified by the company's internal
coverage that spread far;
control of the Company.
5. Lack of institutional control or
3. The Audit Committee has ineffective
institutional system failure of important
supervision over the company's external
business;
financial reports and financial report internal
6. Major defects in internal control not
control.
rectified.
The misstatement amount in the financial Identification according to the internal
Quantitative standards statements in the following range: control defect quantitative standard in
Misstated 1% of the total assets financial report.
Number of material defects in financial
0
reports
Number of material defects in non-
0
financial reports
Number of important defects in financial
0
reports
Number of important defects in non-
0
financial reports
52
Chongqing Changan Automobile Company Limited 2021 Annual Report
2. Internal control audit report
√ Applicable □ Not applicable
Review opinions of the internal control audit report
The audit opinions in the internal control audit report issued by Ernst & Young Huaming LLP (Special General Partnership) are as
follows: Chongqing Changan Automobile Co., Ltd., has maintained an effective internal control of financial report in all major
aspects on December 31,2021, in accordance with the Basic Standards for Internal Control of Enterprises and relevant provisions.
Disclosure of the internal control
Disclosed
audit report
Date of full text disclosure of the
April 28th, 2022
internal control audit report
Inquiry index of Internal Control
Juchao (www.cninfo.com.cn)
Audit Report
Opinion type of internal control
Standard without reservations
audit report
Material defects in non-financial
None
reports
Whether the accounting firm issues a non-standard opinion internal control audit report
□Yes √ No
Whether the internal control audit report issued by the accounting firm is consistent with the self-evaluation report of the board of
directors
√Yes □No
XV. Rectification of self-inspection problems in the Special Action of Listed Companies
In order to implement the spirit of The Opinions of The State Council on Further Improving the Quality of Listed Companies
(No.14,2020), In accordance with the requirements of the Announcement of China Securities Regulatory Commission on The Special
Action on The Governance of Listed Companies (No.69,2020) and the Notice on The Special Self-inspection of The Governance of
Listed Companies of Chongqing Securities Regulatory Bureau (No.367,2020), The company conducted in-depth self-examination of
the operation and decision-making of the three meetings of the company, the code of conduct of directors, supervisors and senior
management and the controlling shareholders, related-party transactions, internal control, information disclosure, social responsibility
and environmental protection in line with the special self-inspection list of listed companies.
The self-examination showed that the company maintained overall compliance in operation. There is no major violation affecting
the corporate governance, and there is no need of rectification. Company will continue in accordance with the “Company Law”,
“Securities Law”, “Listed Company Governance Standards”, and other relevant laws and regulations requirements, further improve
the internal control system, continue to strengthen their own construction, to improve the company operation and corporate governance
effectiveness, scientific decision-making, steady management, standardized development, and continue to improve the quality of
governance of listed companies.
53
Chongqing Changan Automobile Company Limited 2021 Annual Report
Chapter 5 Environmental and Social Responsibility
Ⅰ. Major Environment Concerns
Whether the listed company and its subsidiaries are reckoned as major pollutant discharging units by environment protection
department or not
√Yes □No
Foundational Background
The main products of Changan Auto are engine and vehicle and the major pollutants include chemical oxygen demand,
ammoniacal nitrogen, VOCs, PM, sulfur dioxide and oxides of nitrogen. The wastewater mainly comes from the wastewater of vehicle
manufacturing before painting, spray paint wastewater and oily wastewater of engine and manufacturing machine. After reaching the
standard through physicochemical and biochemical treatment, it is discharged to the urban sewage treatment plant. The waste gas
mainly includes VOCs waste gas from vehicle manufacturing painting and oven process. The waste gas from painting is adsorbed,
concentrated and incinerated, and the waste gas from oven process is incinerated to meet the emission standards; The dust waste gas
from engine manufacturing and casting is discharged up to the standard after bag filter. Sulfur dioxide and nitrogen oxides mainly come
from the combustion of clean energy natural gas, which are discharged in an organized manner. The headquarters and subsidiaries
(branches) of Changan Auto have sound environmental management system, having obtained national environmental management
system certificate.
Waste Information
Total
Name of the Number of Distribution Discharge Total
Main pollutants and specific Discharge approved Excessive
company or discharge of discharge concentration Pollutant discharge standards discharge
pollutants means discharge emissions
subsidiary outlets outlets (mg/L) (Tons/year)
(Tons/year)
COD 46.18 17.02 347.90 —
Two outlets
Ammonia Integrated Wastewater Discharge
for 1.15 0.37 31.31 —
nitrogen Standard（GB8978-1996); The
workshop
Intermittent Influent Water Quality
Wastewater Total nickel 3 facilities, 0.28 0.08 0.17 —
emissions Requirements set by the Yubei
and one
District Sewage Treatment Plant in
Total zinc main outlet 0.12 0.06 3.48 —
Chongqing
for the Plant
Phosphate 0.27 0.10 0.70 —
Sulfur Emission Standard of Air Pollutants
9.33 2.58 16.95 —
dioxide for Surface Coating of
Chongqing
Nitrogen Automobile Manufacturing Industry
Changan 64.00 50.08 75.40 —
Automobile oxides （DB 50/577-2015);
Particulate Emission Standards of Air
Co., Ltd. Outlets 4.10 16.31 94.33 —
Yubei Plant matter Organized Pollutants for Industrial Kiln and
Exhaust gas 28 around the
Volatile emissions Furnace（DB 50/659-2016);
Plant
organic 3.09 Integrated Emission Standards of 8.41 221.21 —
compounds Air Pollutants（DB 50/418-2016);
Emission Standards of Air
Toluene +
0.21 Pollutants for Boiler（DB 50/658- 0.06 50.00 —
Xylene
2016)
During the reporting period, the Yubei Plant of Chongqing Changan Automobile Co., Ltd. was included in the List of Key Pollutant Discharge
Soil Units of Chongqing in 2021 with a total of 1,897.52 tons of hazardous waste generated in this period. The 1,897.52 tons have been legally utilized —
and disposed of by manufacturers with hazardous waste operation permits.
COD 66.28 11.30 11.40 —
An outlet for Integrated Wastewater Discharge
Ammonia workshop Standard（GB8978-1996); The
1.11 0.89 1.14 —
Chongqing nitrogen Intermittent facilities, Influent Water Quality
Wastewater 2
Changan emissions and one Requirements set by Guoyuangang
Total nickel 0.24 0.01 0.06 —
Automobile main outlet Sewage Treatment Plant in
Co., Ltd. for the Plant Chongqing
Total zinc 0.03 0.01 0.07 —
(Liangjiang
Plant, Sulfur Emission standard of Air Pollutants
9.80 4.61 4.82 —
Campus No. dioxide for Surface Coating of
Outlets
1) Nitrogen Organized Automobile Manufacturing Industry
Exhaust gas 32 around the 11.10 6.66 19.30 —
oxides emissions （DB 50/577-2015);
Plant
Particulate Emission Standards of Air
8.10 7.59 41.54 —
matter Pollutants for Industrial Kiln and
54
Chongqing Changan Automobile Company Limited 2021 Annual Report
Volatile Furnace（DB 50/659-2016);
organic 2.60 Integrated Emission Standards of 4.36 58.59 —
compounds Air Pollutants（DB 50/418-2016);
Emission Standards of Air
Toluene +
0.20 Pollutants for Boiler（DB 50/658- 0.04 4.18 —
xylene
2016)
During the reporting period, Liangjiang Plant, Campus No. 1 of Changan Automobile was included in the List of Key Pollutant Discharge
Soil Units of Chongqing in 2021 with a total of 1,446.13 tons of hazardous waste in this period. A total of 1454.96 tons were legally utilized and —
disposed of by manufacturers with hazardous waste operation permits.
COD 63.60 25.54 46.00 —
An outlet for Integrated Wastewater Discharge
Ammonia workshop Standard（GB8978-1996); The
5.79 1.25 4.60 —
nitrogen Intermittent facilities, Influent Water Quality
Wastewater 2
emissions and one Requirements set by the
Total nickel 0.06 0.00 0.14 —
main outlet Guoyuangang Sewage Treatment
for the Plant Plant in Chongqing
Total zinc 0.05 0.02 1.38 —
Sulfur Emission standard of Air Pollutants
0.00 0 4.12 —
Chongqing dioxide for Surface Coating of
Nitrogen Automobile Manufacturing Industry
Changan 52.00 19.17 26.60 —
Automobile oxides （DB 50/577-2015);
Co., Ltd. Particulate Emission Standards of Air
Outlets 4.73 21.91 50.61 —
(Liangjiang matter Organized Pollutants for Industrial Kiln and
Exhaust gas 47 around the
Plant, Volatile emissions Furnace（DB 50/659-2016);
Plant
Campus No. organic 6.43 Integrated Emission Standards of 256.34 414.10 —
2) compounds Air Pollutants（DB 50/418-2016);
Emission Standards of Air
Toluene +
0.08 Pollutants for Boiler（DB 50/658- 0.54 1.54 —
xylene
2016)
During the reporting period, Liangjiang Plant, Campus NO. 2 was included in the List of Key Pollutant Discharge Units of Chongqing in 2021
Soil with a total of 1,891.16 tons of hazardous waste. The 1887.55 tons were legally utilized and disposed of by manufacturers with hazardous waste —
operation permits.
COD 46.00 24.53 45.00 —
An outlet for Integrated Wastewater Discharge
workshop Standard（GB8978-1996); The
Total nickel Intermittent facilities, 0.15 Influent Water Quality 0.00 0.10 —
Wastewater 2
emissions and one Requirements set by the
Ammonia main outlet 2.24 Guoyuangang Sewage Treatment 0.70 1.60 —
nitrogen for the Plant Plant in Chongqing
Total zinc 0.00 0.01 0.79 —
Particulate Emission standard of Air Pollutants
Chongqing 9.10 15.05 62.42 —
matter for Surface Coating of
Changan Automobile Manufacturing Industry
Automobile VOCs 1.90 9.13 230.72 —
（DB 50/577-2015);
Co., Ltd. Emission Standards of Air
(Liangjiang SO2 Outlets 8.00 Pollutants for Industrial Kiln and 0.99 5.00 —
Organized
Plant, Exhaust gas 41 around the
emissions Furnace（DB 50/659-2016);
Campus No. Toluene + Plant
0.06 Integrated Emission Standards of 0.02 0.85 —
3) xylene Air Pollutants（DB 50/418-2016);
Emission Standards of Air
NOx 26.00 Pollutants for Boiler（DB 50/658- 11.92 23.32 —
2016)
During the reporting period, Liangjiang Plant, Campus NO. 3 was included in the List of Key Pollutant Discharge Units in Chongqing in 2021
Soil with a total of 2,219.40 tons of hazardous waste generated in this period. 2,236.83 tons were legally utilized and disposed of by manufacturers —
with hazardous waste operation permits.
COD 119.9 Integrated Wastewater Discharge 19.934 22.5 —
Standard（GB8978-1996); The
Intermittent Main outlet Influent Water Quality
Wastewater 1
Ammonia emissions for the Plant Requirements set by the
nitrogen 4.705 Guoyuangang Sewage Treatment 0.98 2.25 —
（NH3-N） Plant in Chongqing
Chongqing
Changan
Automobile Particulate
9.2 Emission Standards of Air 15.57 — —
Co., Ltd. matter
(Jiangbei Outlets Pollutants for Industrial Kiln and
SO2 Organized 3 12.091 — —
Engine Exhaust gas 91 around the Furnace（DB 50/659-2016);
emissions
Plant, Plant VOCs Plant 7.5 Integrated Emission Standards of 2.753 — —
No.1） Air Pollutants（DB 50/418-2016)
NOx 8 22.23 — —
During the reporting period, Jiangbei Engine Plant, Plant NO. 1 was included in the List of Key Pollutant Discharge Units in Chongqing in
Soil 2021, and a total of 1,462.49 tons of hazardous waste was generated in this period. 1,412.35 tons were legally utilized and disposed of by —
manufacturers with hazardous waste operation permits or exemption certificates
55
Chongqing Changan Automobile Company Limited 2021 Annual Report
COD 16.4 Integrated Wastewater Discharge 6.61 11.08 —
Standard（GB8978-1996); The
Intermittent Main outlet Influent Water Quality
Wastewater 1
Ammonia emissions for the Plant Requirements set by Guoyuangang
nitrogen 7.64 Sewage Treatment Plant in 0.13 1.11 —
（NH3-N） Chongqing
Non-
methane
Chongqing total 7.155 2.04 — —
Changan hydrocarbon
Automobile s
Nitrogen Emission Standards of Air
Co., Ltd. 63.5 4.26 — —
oxides Outlets Pollutants for Industrial Kiln and
(Jiangbei Organized
Engine Exhaust gas Particulate 35 around the Furnace（DB 50/659-2016);
emissions
factory 19.45 Integrated Emission Standards of 5.89 —
Plant, Plant matter
Air Pollutants（DB 50/418-2016)
No. 2） Phenols 3.426 0.67 —
Sulfur
3 2.48 — —
dioxide
Formaldehy
0.021 0.09 — —
de
During the reporting period, Jiangbei Engine Plant, Plant NO. 2 was included in the List of Key Pollutant Discharge units in Chongqing in
Soil 2021, and a total of 1,644.45 tons of hazardous waste was generated in this period. 1,457.02 tons were legally utilized and disposed of by —
manufacturers with hazardous waste operation permits or exemption certificates.
COD 35 4.97 25.76 —
Ammonia An outlet for
0.105 Integrated Wastewater Discharge 0.31 3.48 —
nitrogen workshop
Standard（GB8978-1996); The
Intermittent facilities,
Wastewater Total nickel 3 0.05 Inlet Water Quality Requirements 0.00 0.03 —
emissions and two
set by Guoyuangang Sewage
main outlets
Total zinc 0.04 Treatment Plant in Chongqing 0.01 0.13 —
for the Plant
Phosphate 0.07 0.10 0.70 —
Particulate Emission standard of Air Pollutants
8.4 13.88 19.24 —
Chongqing matter for Surface Coating of
Lingyao Volatile Automobile Manufacturing Industry
Automobile organic 6.435 （DB 50/577-2015); 4.02 213.66 —
Co., Ltd. compounds Emission Standards of Air
Outlets Pollutants for Industrial Kiln and
Organized
Exhaust gas 36 around the
emissions Furnace（DB 50/659-2016);
Plant
Integrated Emission Standards of
Toluene +
0.19 Air Pollutants（DB 50/418-2016); 0.06 51.95 —
xylene
Emission Standards of Air
Pollutants for Boiler（DB 50/658-
2016)
During the reporting period, Chongqing Lingyao Automobile Co., Ltd. (Changan Suzuki) was included in the List of Key Pollutant Discharge
Soil Units in Chongqing in 2021, and a total of 1,477.59 tons of hazardous waste was generated in this period, which was legally utilized and —
disposed of by manufacturers with hazardous waste operation permits.
COD 103.54 37.72 63.68 —
An outlet for
Ammonia workshop
4.92 1.64 3.81 —
nitrogen Intermittent facilities, Integrated Discharge Standard of
Wastewater 2
emissions and a main Water Pollutants (DB11/307-2013)
Total nickel 0.05 0.00 0.01 —
Chongqing outlet for the
Plant
Changan Phosphate 1.78 0.13 5.71 —
Automobile
Nitrogen Emission standard of Air Pollutants
Co., Ltd. 82.60 0.47 3.21 —
Beijing oxides for Surface Coating of
Outlets Automobile Manufacturing Industry
Changan Exhaust gas Volatile Organized 53 around the
Automobile (DB11/1227-2015);
organic emissions Plant 3.75 Integrated Emission Standards of 10.05 458.76 —
Company compounds
Air Pollutants（DB11/501-2017）
During the reporting period, Chongqing Changan Automobile Co., Ltd. Beijing Changan Automobile Company was included in the List of Key
Soil Pollutant Discharge units in Beijing in 2021. A total of 646.88 tons of hazardous waste was generated in this period, which was legally utilized —
and disposed of by manufacturers with hazardous waste operation permits.
COD 42.7 27.08 144.13 —
Two outlets
Total
for 20.0 Integrated Wastewater Discharge 9.36 39.44 —
nitrogen
workshop Standard（GB8978-1996);
Intermittent
Wastewater 3 facilities, The Pipe Standards set by Hefei
Hefei Total nickel emissions
and a main 0.03 0.00 0.09 —
West Group Sewage Treatment
Changan outlet for the Plant
Automobile Total Plant
Co., Ltd 0.15 0.12 4.73
phosphorus
Ammonia
5.47 3.01 14.41 —
nitrogen
Emission Control Standard for
Outlets
Organized Industrial Enterprises Volatile
VOCs 88 around the 4.5 4.29 1139.60 —
Exhaust gas emissions Organic Compounds of Tianjin
Plant
（DB12/524-2020）
56
Chongqing Changan Automobile Company Limited 2021 Annual Report
During the reporting period, Hefei Changan Automobile Co., Ltd. was included in the List of Key Pollutant Discharge Units in Hefei in 2021,
Soil and a total of 2,614.57 tons of hazardous waste was generated in this period, which was legally utilized and disposed of by manufacturers with —
hazardous waste operation permits.
COD 27.58 0.64 13.34 —
Total
2 0.05 14.24 —
nitrogen An outlet for Integrated Wastewater Discharge
workshop
Total nickel 0.4 Standard（GB8978-1996); 0.00 0.06
Intermittent facilities,
Wastewater 2 The Pipe Standards set by Nanjing
emissions and a main
Total Lishui Qinyuan Sewage Treatment
outlet for the 0.12 Co., Ltd. 0.00 0.08 —
phosphorus Plant
Ammonia
Nanjing nitrogen 2.96 0.10 0.26 —
Changan
（NH3-N）
Automobile
Co., Ltd.
NOx 3 Emission standard of Air Pollutants 0.31 8.79 —
for Surface Coating of
Particulate
0.6 Automobile Manufacturing Industry 0.87 10.24 —
matter (DB32/2862 – 2016);
Organized Outlets
VOCs 6 8.07 Integrated Emission Standards of 6.82 38.48 —
Exhaust gas emissions around the
Air Pollutants (GB 16297 - 1996);
Plant
Emission Standards of Air
SO2 3 Pollutants for Boiler (GB13271- 0.03 53.40 —
2014)
During the reporting period, Nanjing Changan Automobile Co., Ltd. was included in the List of Key Pollutant Discharge Units in Nanjing in
Soil 2021, and a total of 248.33 tons of hazardous waste was generated in this period. 187.78 tons were legally utilized and disposed of by —
manufacturers with hazardous waste operation permits.
Ammonia
8.44 0.30 4.80 —
nitrogen
COD 156 11.89 63.71 —
An outlet for
Integrated wastewater discharge
workshop
standard（GB8978-1996);
Total Intermittent facilities,
Wastewater 2 17.46 The Influent Water Quality 0.74 7.32 —
nitrogen emissions and a main
Requirements Set by Gezhouba
outlet for the
Water Dingzhou Branch
Total Plant
0.12 0.14 0.92
Chongqing phosphorus
Changan
Kaicene Total nickel 0.05 0.00 0.03 —
Automobile Sulfur Integrated Emission Standards of
Technology 7.5 8.01 30.01 —
dioxide Air Pollutants GB16297-1996;
Co., Ltd. Non- Emission Standards of Air
Campus methane Pollutants for Industrial Kiln and
NO.1 total 1.505 Furnace DB1640-2012; 9.93 570.34 —
Outlets
hydrocarbon Organized Emission Control Standards for
46 around the
Exhaust gas s emissions Volatile Organic Compounds by
plant
Particulate Industrial Enterprises DB13/2322-
5.3 2016; 5.22 53.40 —
matter
Emission Standards of Air
Nitrogen
23.5 Pollutants for Boiler（DB13/5161- 7.33 31.47 —
oxides
2020)
During the reporting period, Campus NO.2 of Chongqing Changan Kaicene Automobile Technology Co., Ltd. (formerly known as Hebei
Soil Changan) was included in the List of Key Pollutant Discharge Units in Dingzhou In 2021, with a total of 660.85 tons of hazardous waste —
generated in this period, of which 659.11 tons have been legally utilized and disposed of by suppliers with hazardous waste operation permits.
COD 185 16.80 63.71 —
Ammonia
A workshop 9.56 0.70 4.80 —
nitrogen
facility
Integrated Wastewater Discharge
Total discharge
11.61 Standard（GB8978-1996); 1.13 7.32 —
nitrogen Intermittent outlet, and
Wastewater 2 The Influent Water Quality
emissions one factory
Requirements Set by Gezhouba
Total total
1.43 Water Dingzhou Branch 0.14 0.92
Chongqing phosphorus discharge
Changan outlet
Kaicene
Nickel 0.05 0.01 0.03 —
Automobile
Technology Sulfur Integrated Emission Standards of
Co., Ltd. 3 1.96 88.23 —
dioxide Air Pollutants GB16297-1996;
Campus Nitrogen Emission Standards of Air
NO.2 24.33 5.30 33.75 —
oxides Pollutants for Industrial Kiln and
Particulate Furnace DB1640-2012;
Outlets 5.77 Emission Control Standards for 40.33 850.80 —
matter Organized
82 around the
Exhaust gas emissions Volatile Organic Compounds by
plant
Industrial Enterprises DB13/2322-
Volatile 2016;
organic 2.87 Emission Standards of Air 24.80 880.62 —
compounds Pollutants for Boiler（DB13/5161-
2020)
57
Chongqing Changan Automobile Company Limited 2021 Annual Report
During the reporting period, Campus NO.2 of Chongqing Changan Kaicene Automobile Technology Co., Ltd. (formerly known as Changan
Soil Bus) was included in the List of Key Pollutant Discharge Units in Dingzhou in 2021. A total of 1,071.80 tons of hazardous waste were —
generated in this period, and 1,094.54 tons were legally utilized and disposed of by suppliers with hazardous waste operation permits.
All pollutants are discharged to the standard, and there is no discharge exceeding the standard and the total amount. For details of
the name, distribution and pollutant discharge of each discharge outlet, please refer to the "National Pollutant Discharge Certificate
Management Information Platform" (Website: http: / / permit mee. gov.cn), and "Changan Automobile Brand Official Website" for
details (Website: https://www.changan.com.cn/sociology?index=2).
Construction and operation of pollution prevention facilities
Four sets of waste gas treatment facilities have been built up in 2021. Changan’s waste gas treatment facilities mainly include
engine manufacturing casting dust removal, deodorization, machine refueling fog purification facilities, welding smoke dust removal
and painting VOCs treatment facilities in vehicle manufacturing. Wastewater and waste gas treatment facilities are included in the
preventive maintenance management of equipment like other production equipment. There are standing books, operating procedures
or operation instructions, preventive maintenance procedures, preventive maintenance plans and implementation records, equipment
spot inspection, dosing, slag removal, consumables replacement and other operation records. All facilities run normal. Key pollutant
discharge units are equipped with automatic monitoring facilities for waste water and waste gas according to the requirements of the
local department of ecological conservation, and entrust a third-party professional company for operation and maintenance. The
facilities run normal.
Environmental impact assessment of construction project and other circumstances of administrative
permission for environmental protection
Our company according to “The Law of the People's Republic of China on Environmental Impact Assessment”, “The Regulations
on the Administration of Construction Project Environmental Protection”, “Chongqing Environmental Protection Ordinance”, “Interim
Measures for Environmental Protection Acceptance of Construction Project Completion”, to carry out a new, flexible and expansion
project environmental impact project-assessment and project acceptance. We will strictly implement the environmental impact
assessment system and the “three simultaneous” system.
In 2021, the CD569 production line project, endurance laboratory and powertrain project were completed and accepted for
environmental protection, and the EIA approval for technical transformation project of NE1 series engine production line and B561
passenger car technical transformation construction project.
For details on the changes of emission permits of manufacturing bases during the reporting period, please refer to “the National
Emission Permit Management Information Platform”, see http:// permit.mee.gov.cn.
Preparation and drill of emergency plan for environmental emergencies
In 2021, Beijing Changan, Kaicene Automobile Plant 1, Jiangbei Engine Plant 2 and Liangjiang Plant 3 will complete the revision
and filing of environmental emergency plans, as shown in the following table:
Name of emergency Filing
Unit Filing authority Risky materials Risk level
plans number
Beijing Changan Emergency plan for Beijing Fangshan Paint, solvent,
110111-
Automobile Co., environmental District Ecology and lubricating oil, Average
2021-123-L
Ltd. emergencies Environment Bureau gasoline, etc.
Kaicene
Automobile Emergency plan for Dingzhou Ecology Paint, solvent,
139001-
Technology Co., environmental and Environment lubricating oil, Average
2021-100-2
Ltd. Plant 1 (former emergencies Bureau gasoline, etc.
Hebei Changan)
Lubricating oil,
NE1 construction Chongqing Ecology hydraulic oil, anti-rust
Jiangbei Engine project Phase 1 Step 500128202 and Environment oil, waste water
Average
Plant 2 2 environmental 1080001 Bureau, Liangjiang treatment sludge, waste
emergency plan Branch chemical packaging,
etc.
Chongqing Ecology
Emergency plan for Paint solvent
Liangjiang Plant, 500128- and Environment
environmental lubricating oil gasoline Average
Area Three 2021-059-L Bureau, Liangjiang
emergencies and so on
Branch
All bases formulate emergency drill plans in accordance with the requirements of laws and regulations, and carry out emergency
drills as planned, so as to continuously improve the practicality of emergency plans and the emergency handling ability of employees.
No environmental emergencies occurred in 2021.
58
Chongqing Changan Automobile Company Limited 2021 Annual Report
Planning and implementation of environmental self-monitoring
In 2021, key units responsible for pollution discharge of the company prepared and carried out self-monitoring plans in accordance
with the requirements of laws and regulations, and made monitoring information public on self-monitoring data release platforms of
various provinces as required by local ecological environment authorities. See the following table for the public websites.
Name of platforms disclosing self-
Units Websites
monitoring plans
Yubei factory, Liangjiang factory, Jiangbei Key pollution Source Monitoring Data http://119.84.149.34:20003/publish2/dat
engine factory, Ling Yao automobile Release Platform aSearchPub/entList.aspx
Environmental Information Disclosure
http://xxgk.bevoice.com.cn/monitor-
Beijing Changan Automobile Co., Ltd. Platform of Beijing Enterprises and
pub/index.do
Institutions
Anhui Province Sewage Units Self-
Hefei Changan Automobile Co., Ltd. http://39.145.0.253:8081/index
Monitoring Information Release Platform
Jiangsu Province Sewage Units Self- http://218.94.78.61:8080/newPub/web/h
Nanjing Changan Automobile Co., Ltd.
Monitoring Information Release Platform ome.htm
China pollution Source Monitoring
https://wryjc.cnemc.cn/gkpt/mainZxjc/1
KAICENE Automobile Co., Ltd. Information Management and Sharing
30000
Platform
Administrative penalties imposed for environmental problems during the reporting period are shown below
Zero.
Measures taken to reduce carbon emissions during the reporting period and effects
In response to the national “3060” dual carbon strategy, Changan Auto has set up a carbon peak & carbon neutralization joint
project team, with the chairman of the board as the leader of the leading group, to promote the implementation of the overall planning.
The organizational structure is composed of leading group, business coordination group and dedicated business working group (low-
carbon products, low-carbon technology, low-carbon manufacturing, low-carbon supply, low-carbon digitization, and low-carbon cost)
to jointly promote the green and low-carbon transformation of the company and build an intelligent low-carbon mobility technology
company.
The carbon emission of the company's manufacturing system can be divided in two aspects. The first is direct emissions, mainly
from the burning of fossil fuels and the use of natural gas, gasoline, kerosene, diesel and other oil materials in the plant. Direct emissions
from the production process result from the use of welding carbon dioxide shielding gas. The second is indirect emissions, mainly from
the use of outsourced electricity.
In 2021, the carbon emissions of the company's own brand manufacturing system are as follows: the emissions from electric
power use, natural gas and remaining oil and protective gas account for 76.7%, 20.3% and 3.1% respectively. In terms of carbon
emissions per unit of product, compared with 2020, single-vehicle emissions decreased by 3.2% and single-vehicle emissions by 3.26%.
In order to reduce carbon emissions, the company mainly takes the following measures: 1. Low carbon process technology
application. The existing production bases have been organized to carry out discussion and analysis on measures to save energy and
reduce carbon emissions, and a three-year technological transformation plan has been formulated. Thirty carbon reduction measures
have been confirmed to be implemented (14 in 2021, 16 in 2022 and 2023), which is expected to reduce carbon emissions by 28,000
tons. 2. Green energy development. Changan Auto Hefei and Hebei bases have built photovoltaic power stations in the plants, which
produce green and clean energy. In 2021, a total of 37,672MWh of photovoltaic power was consumed and 32,270 tons of carbon were
reduced. Other bases have completed the discussion of photovoltaic construction planning, and will push forward the implementation
as planned to further expand the proportion of green and clean energy.
With a solid foundation, Changan into the future, will take the initiative to strengthen science and technology, system innovation,
make breakthrough in key core technology of green low carbon, to speed up the application, with an strategic emphasis on carbon
reduction, promote carbon reduction synergies, and promote comprehensive green transformation of the economy and society to
realize significant ecological and environmental quality improvement.
Other environmental protection related information
1. Environmental credit evaluation and solid waste utilization and disposal
In 2021, Liangjiang factory, Jiangbei engine factory, Yubei factory, Lingyao automobile and other production bases carried out
the 2020 environmental credit evaluation work as required by the local ecological environment authorities. Liangjiang factory's three
factories, Jiangbei engine factory's two factories and Yubei factory were named “Enterprise with Environmental Integrity”; Lingyao
automobile was “Enterprise with Good Environmental Protection Performance”. For details, please refer to "Chongqing Ecology and
59
Chongqing Changan Automobile Company Limited 2021 Annual Report
Environment Bureau’s Announcement on the Results of Municipal Level Environmental Credit Evaluation for Enterprises in
Chongqing in 2020".
In 2021, 167,046 tons of general industrial solid waste were generated, and 167,046 tons were entrusted for utilization or disposal.
17,436 tons of hazardous waste were produced, and 17,181 tons were entrusted for utilization or disposal. The entity’s qualification
and technical ability of the third party entrusted to use or dispose are verified.
2. Green supply management information
Our company has established a cloud management platform for OEM-supplier coordination and associated it with SRM system
to realize the information monitoring and management of supplier ISO14001 environmental certification certificate. For the
management of hazardous substances, data on the system are collected through CAMDS, and comprehensive analysis and data
verification are realized through ELV compliance system, for the collection and control of automobile material data, energy
consumption and other information.
Check “China Automobile Green Disassembly Information Network” (http://www.cagds.org/) for Changan’s scrap car recycling
service network points; Enterprises with recycling and disassembly can log in “China Automobile Green Disassembly Information
Network” (or CAGDS system) to query the manual of M1 passenger vehicle disassembly; Users can query the relevant information of
the vehicle disassembly manual through the WeChat mini program of “Vehicle Disassembly Manual Label Parsing Tool”.
Power battery recycling service network information through "changan automobile brand's official website
(https://www.changan.com.cn).
Our company works with suppliers to improve their environment: through access certification, VOC control, restricted substances
management, special supply requirements and other management, we work with suppliers to improve their environmental performance.
92% of the company's suppliers have obtained ISO14001 environmental management system certification.
II. Social Responsibility
The full text of corporate social responsibility report has been published on Juchao (www.cninfo.com.cn) on the same day as the
annual report of the company was released.
III. The Company Consolidated and Expanded the Achievements of Poverty Alleviation and
Rural Revitalization
Our company has deeply studied general Secretary Xi's spirit of helping and supporting work, and fully implement the party
central committee and the State Council designated to help support the decision deployment, helping to carry out the government
designated work arrangements, to advance, to consolidate and expand the crucial poverty results and country to promote the effective
connection work, to implement the political responsibility and social responsibility.
1. Strengthen organizational leadership
(1) Our company held two meetings of the leading group for designated assistance work, and studied, discussed, deliberated,
approved and issued the “Work Plan for effectively connecting The Achievements of Poverty Alleviation and Expansion of Changan
Auto in 2021 with Rural Revitalization” and the “14th Five-year Plan” for Assistance work of Changan Auto.
(2) Our company held 11 special work sessions on designated assistance for rural revitalization, identified key assistance projects,
studied plans, formulated measures and promoted work, and carried out industrial assistance activities and investigations in the areas
to be helped.
2. Guaranteed funds for assistance
As a whole, RMB 10.7 million yuan of assistance funds were allocated, including RMB 4.5 million yuan in Luxi of Yunnan, RMB
6 million yuan in Yanshan of Yunnan and RMB 200,000 yuan in Youyang of Chongqing, which were used for the construction of
beautiful villages, the development and expansion of rural characteristic industries and the improvement of infrastructure.
3. Support for innovative industries
Implement the government's overall plan for implementing rural revitalization, fully launch the Youyang Camellia oil fixed-point
assistance project, with the new mode of "enterprises join hands with enterprises to drive industry", deeply help rural revitalization,
and strive to create new cross-border public welfare.
(1) Organized “Love with charity, better with you” -- Changan responded to rural revitalization to help Youyang camellia oil
brand special event, and signed the “Cooperation Agreement on Designated Assistance for Rural revitalization” with the Youyang
government and Youzhou Ecological Company to help establish promotion channels and expand brand communication.
(2) Combined with Youyang’s demand for supporting camellia oil business and Changan’s resource advantages, effective
assistance has been carried out from three aspects of marketing, brand and training: First, it helped Youyang camellia oil to expand
60
Chongqing Changan Automobile Company Limited 2021 Annual Report
marketing channels, achieve rapid sales growth, complete sales assistance of more than RMB 27 million yuan, and helped Youyang
camellia oil to achieve annual sales of more than RMB 71 million yuan. In the first year, the sales scale entered the top ten in China,
benefiting 44,000 peasant households, nearly 160,000 people, with an additional income of RMB 4,000 yuan per household. Second,
help Youyang camellia oil to improve the brand and realize brand empowerment; The third is to help Youyang camellia oil train core
cadres to realize the rapid improvement of management awareness and business ability.
4. Support through consumption
The trade union and other units of the company organized and purchased agricultural products worth RMB 4.94 million yuan from
the targeted areas, with concrete actions to help revitalize rural areas and promote the sustainable development of local industries.
5. Employment support
To give full play to the advantages of the automobile industry and focus on skill training, our company has set up two "Changan
Automobile classes" in two counties in Yunnan. We have recruited 633 students and residents in total by inviting experts to colleges
and social recruitment, promoting the employment of rural labor force and helping farmers to increase their income.
6. Expand communication channels
(1) Our company held the 2021 Chongqing Youth Collective Wedding and the 10th Changan Auto Youth Collective Wedding.
With rural revitalization as the theme, we joined hands with local villages and towns in Chongqing to promote the deep integration of
youth wedding and rural revitalization in various forms, such as live broadcasting and farm products consumption. People's Daily,
Xinhua News Agency, Xuexi.cn and others have reported the group wedding, praised Changan Auto for helping rural revitalization,
and created a new form of cross-field public charity.
(2) People’s Daily, Hualong net and other mainstream media have made feature stories about us helping the Youyang camellia
oil industry.
(3) Submit practical cases of rural revitalization to China Association of Listed Companies to publicize and promote the
company's remarkable and unique practical activities in rural revitalization
(4) Jiangbei Mobile News special report our company’s support to Youyang rural revitalization with efforts to create a “Changan
case” of comprehensive rural revitalization.
61
Chongqing Changan Automobile Company Limited 2021 Annual Report
Chapter 6 Important Matters
I. Undertaking performance
1. Undertakings completed during the reporting period and yet to be performed as of the end of the reporting
period of the company’s actual controllers, shareholders, related-parties, acquirers, and the company’s
related parties of the undertakings.
√ Applicable □Not applicable
Type of
Undertakings Undertaking party Description Date Duration Performance
undertaking
The shares of Changan
Automobile subscribed through
China South Industries Group
this offering shall not be
Co., Ltd.; China Changan Sales
transferred in any way within 36 In normal
Automobile Group Co., Ltd.; restrictions October, 2020 36 Months
months after the offering, progress
Southern Industry Asset for shares
including but not limited to public
Management Co., Ltd.
transfer through the securities
market or by agreement.
China Southern Asset
Companies agree not to transfer
Management Co., Ltd.; China
the subscribed shares within six
Galaxy Securities Co., Ltd.;
months starting from the day this
JPMorgan Chase Bank,
offering ends (the day the shares
National Association; Guotai
issued are listed) and entrust the
Junan Securities Co., Ltd.; Sales
board of directors of Changan to Six
Caitong Fund Management restrictions October, 2020 Completed
apply for lock-up of the months
Co., LTD.; Fullgoal Fund for shares
aforementioned subscribed shares
Management Co., LTD.;
to s Shenzhen Branch of China
Guosen Securities Co., Ltd.;
Undertakings Securities Depository and
Truvalue Fund Management
made at the IPO Clearing Corporation Limited as
Co., LTD.; Invesco Great Wall
or refinancing the guarantee of no transfer.
Fund Management Co., LTD
1. Companies promises to strictly
abide by the regulations in the
"Securities Law" that they would
not directly or indirectly buy or
sell Changan Automobile stocks. Six
through centralized bidding months
Southern Industry Asset transactions, block transactions, or before this
Management Co., Ltd.; China Sales others from six months before the offering to
South Industries Group Co., restrictions offering to six months after the August, 2020 six months Completed
Ltd.; China Changan for shares offering is completed. after the
Automobile Group Co., Ltd. 2. If the companies violates the completio
aforesaid undertakings about n of this
buying and selling Changan offering
Automobile stock, it shall bear
corresponding legal liabilities and
proceeds from transaction shall
belong to Changan Automobile.
In order to avoid and eventually On January
solve the possible competition or 25,2019, Haqi
potential peer competition, Group, a
safeguard the interests of subsidiary of
Other
investors, the controlling China
undertakings to
China Changan Automobile Solve peer shareholder, China Changan made September, Changan,
the minority
Group Co., Ltd. competition the undertaking: if Harbin Hafei 2010 transferred
shareholders of
Automobile Industry Group Co., 38% of the
the company
Ltd. profits for two consecutive equity of
years with the ability of Hafei
continuous development and Automobile
significantly improved Co., Ltd. to
62
Chongqing Changan Automobile Company Limited 2021 Annual Report
management, it will be Harbin Yungu
incorporated into the company. Automobile
Industry
Development
Co., Ltd. Haqi
Group has lost
control of
Hafei
Automobile
Co., Ltd., and
the peer
competition
was
eliminated.
There is no
peer
competition in
this reporting
period.
Whether the
promise is
Yes
fulfilled as
scheduled
2. Explanation on whether assets or projects reach the earnings forecast and reasons when there is earning
forecast for asset or projects and the reporting period is within the forecast period.
□ Applicable √ Not applicable
II. Non-operating funds the listed company occupied by controlling shareholders and their
related parties
□ Applicable √ Not applicable
During the reporting period, there was no non-operating funds of the listed company occupied by the controlling shareholder and
related parties.
III. Irregular external guarantee
□ Applicable √ Not applicable
The Company has no irregular external guarantee during the reporting period.
IV. Explanation of the Board of Directors on the latest “Non-standard Audit Report”
□ Applicable √ Not applicable
The accounting firm has not issued a "Non-Standard Audit Report" on this current report.
V. Explanation of the “Non-Standard Audit Report” issued by the accounting firm during the
reporting period by the BOD, BOS and independent directors (if any)
□ Applicable √ Not applicable
VI. Explanation of changes in accounting policies, accounting estimates and remedies for
significant accounting errors
√ Applicable □Not applicable
For details, please refer to Note Three “ Significant Accounting Policies and Accounting Estimates” in the Financial Statements
in the Auditor’s Report.
63
Chongqing Changan Automobile Company Limited 2021 Annual Report
VII. Explanation of changes in the consolidated statement scope compared to the last annual
report
√ Applicable □Not applicable
During the reporting period, Chongqing Changan Automobile Co., Ltd. withdrew from Zhenjiang Demao Hairun Equity
Investment Fund Partnership (Limited Partnership) for business adjustment, and it was no longer included in the consolidation.
VIII. Appointment and dismissal of the accounting firm
The appointed accounting firm
The name of the domestic accounting firm Ernst & Young Hua Ming LLP
Payment (RMB: 10,000) 386
Years of audit services 15
Names of Certified Public Accountants Qiao Chun, Yuan Yong
Years of services provided by Certified Public Accountants （4years）Qiao Chun, （1years）Yuan Yong
Whether to re-appoint the accounting firms
□Applicable √Not-applicable
Description of the internal control accounting firms, financial adviser or sponsor
√Applicable □Not-applicable
After deliberation at the 2020 annual general meeting, the company has appointed Ernst & Young Huaming LLP (special general
partnership) as the internal control auditor in 2021. In 2021, the company paid Ernst & Young Huaming LLP (special general
partnership) RMB 1.166 million for the internal control audit services.
IX. Delisting after the disclosure of the annual report
□ Applicable √ Not applicable
X. Bankruptcy and restructuring
□ Applicable √ Not applicable
During the report period, there is no bankruptcy or restructuring.
XI. Crucial litigation and arbitration
□ Applicable √ Not applicable
During the reporting period, the company has no crucial litigation and arbitration.
XII. Punishment and rectification
□ Applicable √ Not applicable
During the reporting period there’s no punishment and rectification..
XIII. The integrity of company, its controlling shareholder and actual controller
□ Applicable √ Not applicable
XIV.Significant related-party transactions
1. Related-party transactions related to daily operation
For details, please refer to Note 9 "Related Party Relationships and Transactions" under the Chapter 10.
64
Chongqing Changan Automobile Company Limited 2021 Annual Report
2. Related-party transaction of acquisition or sales of assets or equity
√Applicable □Not-applicable
For details, please refer to Note 9 "Related Party Relationships and Transactions" under the Chapter 10.
3. Related-party transactions of common foreign investment
□ Applicable √ Not applicable
4. Related rights and debt relations
√Applicable □Not-applicable
For details, please refer to Note 9 "Related Party Relationships and Transactions" under the Chapter 10.
Whether there is any non-business related credits and debts
□Yes √ No
There is no non-operating associated credits and debts during the reporting period.
5. Transactions with associated financial companies
√ Applicable □Not applicable
Deposit
Amount incurred in the current
Maximum period
Beginning
daily deposit Total Ending balance
Related party Relationship Interest rate balance (RMB: Total deposit
limit (RMB: withdrawal (RMB: 10,000)
10,000) amount (RMB:
10,000) amount (RMB:
10,000)
10,000)
A company
China South controlled by
Industries the actual
2,000,000 0.35%-2.1% 1,077,295 20,749,503 19,861,500 1,965,298
Group Finance controller of
Co., Ltd. Changan
Automobile
A company
Changan controlled by
Automobile the actual
1,500,000 2.19%-3.5% 750,000 1,200,000 750,000 1,200,000
Finance Co., controller of
LTD Changan
Automobile
Loan
Amount incurred in the current
period
Beginning
Loan amount Total Ending balance
Related party Relationship Interest rate balance (RMB: Total amount
(RMB: 10,000) repayment (RMB: 10,000)
10,000) of loan (RMB:
amount (RMB:
10,000)
10,000)
A company
China South controlled by
Industries the actual
70,000 1%-5.2% 63,330 4,800 60,800 7,330
Group Finance controller of
Co., Ltd. Changan
Automobile
Credit granting or other financial business
Total amount (RMB: Actual amount incurred
Related party Relationship Business
10,000) (RMB: 10,000)
A company controlled by
China South Industries
the actual controller of Credit granting 1,030,000 349,005
Group Finance Co., Ltd.
Changan Automobile
65
Chongqing Changan Automobile Company Limited 2021 Annual Report
6. Transactions between the financial company controlled by the company and related parties
□ Applicable √ Not applicable
7. Other significant related-party transactions
√ Applicable □Not applicable
Interim announcement of major related-party transactions on the website
Interim
Interim announcement Wsebsite
announcement date
Announcement of Expected Related-party Transactions in the Ordinary Course of
April 1st, 2021
2021
Announcement on the Renewal of the Related-party Transactions Framework
Agreement Relating to Daily Operation and the Comprehensive Service April 1st, 2021
Agreement http://www.cninfo.com.cn
Announcement on Related-party Transactions of China South Industries Group
August 31st, 2021
Finance Co., Ltd. Providing Financial Services for Changan Automobile
Announcement on Related-party Transactions of Changan Automobile Finance
August 31st, 2021
Co., Ltd. Providing Financial Services for Changan Automobile
XV. Major contracts and their performance
1. Custody, contracting and leasing
（1）Custody
□Applicable √ Not-applicable
Custody information
There is no custody during the reporting period.
（2）Contracting
□Applicable √ Not-applicable
Contracting information
There is no contracting during the reporting period.
（3）Leasing
√Applicable □Not-applicable
Leasing information
Leasing of related parties can be found in Item 5 (3) of Note Nine of Financial Statements “Related Party and Related Transactions”.
Projects whose profit and loss to the company account for more than 10% of total profits during the reporting period.
□Applicable √ Not-applicable
There was no project whose profit and loss to the company accounted for more than 10% of total profits during the reporting period.
2. Guarantee
□Applicable √ Not-applicable
There’s no guarantee during the report period.
3. Entrustment of cash asset management
(1) Entrust wealth management
□Applicable √ Not-applicable
There’s no entrusting wealth management during the reporting period.
66
Chongqing Changan Automobile Company Limited 2021 Annual Report
(2) Entrusted loans
□ Applicable √ Not applicable
There is no entrusted loan during the reporting period.
4. Other major contracts
□ Applicable √ Not applicable
There are no other major contracts of the Company during the reporting period.
XVI. Other important events
□ Applicable √ Not applicable
XVII. Important matters of the Company's subsidiary
□ Applicable √ Not applicable
67
Chongqing Changan Automobile Company Limited 2021 Annual Report
Chapter 7 Share Changes and Shareholder Information
Ⅰ. Change in shareholdings
1. Change in shareholdings
Unit: One share
Before change Changes（+，-） After change
Additional Stock Provident fund
Quantity Ratio Other Subtotal Quantity Ratio
issued dividend transfer
-
Shares with sales restrictions 560,766,563 10.46% 93,956,600 143,741,047 -40,947,698 519,818,865 6.81%
278,645,345
1. State-owned legal person
283,138,318 5.28% 113,255,327 113,255,327 396,393,645 5.19%
shares
-
2. Other domestic shares 244,917,965 4.57% 93,956,600 30,485,720 -121,492,745 123,425,220 1.62%
245,935,065
Including: domestic legal -
244,899,065 4.57% -244,899,065 0.00%
person shares 244,899,065
domestic natural person
18,900 0.00% 93,956,600 30,485,720 -1,036,000 123,406,320 123,425,220 1.62%
shares
3. Foreign shares 32,710,280 0.61% -32,710,280 -32,710,280 0.00%
Shares without sales
4,802,629,611 89.54% 2,032,095,581 277,609,345 2,309,704,926 7,112,334,537 93.19%
restrictions
1.Ordinary shares
3,900,643,469 72.72% 1,671,301,125 277,609,345 1,948,910,470 5,849,553,939 76.64%
denominated in RMB
2. Domestic listed foreign
901,986,142 16.82% 360,794,456 360,794,456 1,262,780,598 16.55%
shares
Total shares 5,363,396,174 100.00% 93,956,600 2,175,836,628 -1,036,000 2,268,757,228 7,632,153,402 100.00%
Reasons for share change
√ Applicable □ Not applicable
(1) Initial granting of A-share restricted shares
The initially granted A-share restricted stock of the incentive plan were listed on Shenzhen Stock Exchange on March 5, 2021
(see the “Announcement on the Registration of the Initial Granting of the A-share Restricted Stock Incentive Plan for details). The
number of restricted shares granted this time was 76,195,400. Afterwards, the total number of the company capital shares was
5,363,396,174, instead of 5,439,591,574.
(2) Part of the 2020 non-public A-shares’ restrictions were removed.
The company's non-public offering of A shares in 2020 was listed on Shenzhen Stock Exchange on October 26, 2020 (see "Report
on the Issuance of Non-public A Shares and Listing Announcement (Summary)" for details). Except China South Industries Group Co.,
Ltd., China Changan Automobile Group Co., Ltd, and China South Industry Asset Management Co., Ltd., the number of shares
allocated to other investors is 277,609,345 with the promise of no transferring within 6 months from the date of listing. The commitment
expired on April 26, 2021. Therefore, at the end of the reporting period, the number of shares without sales restrictions increased by
277,609,345 compared with the beginning of the period (see "Reminder Note on the Listing and Circulation of Non-public Issuance of
Restricted Shares").
(3) 2020 Annual Equity Distribution
The company implemented the 2020 annual equity distribution (see the "Announcement on the Implementation of 2020 Annual
Dividend Distribution and Capital Share Increase by Transfer" for more information). The distribution plan went: based on the total
capital share of 5,439,591,574, distribute RMB 3.06 for each10 shares Cash (tax included) to all shareholders and increase by
transferring 4 shares for each 10 shares to all shareholders by capital reserve. The ex-dividend date is July 1, 2021, and the total number
of capital share was 7,615,428,202 after the transfer.
(4) Repurchase and cancellation of certain A-share restricted shares
On December 21, 2021, the company completed the repurchase and cancellation of 1,036,000 A-share restricted shares held by
the original 11 incentive objects in total (see the "Announcement on the Completion of Repurchase and Cancellation of Certain
Restricted Shares" for details). The company's total share capital decreased from 7,615,428,202 shares to 7,614,392,202.
(5) Granting of reserved A-share restricted stock of the incentive plan
The reserved A-share restricted stock of the incentive plan was listed on the Shenzhen Stock Exchange on December 31, 2021
(for details, please refer to the "Announcement on the Completion of the Granting of the Reserved A-share Restricted Stock of the
Incentive Plan"). The number of reserved restricted shares granted was 17,761,200. Afterwards, the total share capital of the company
was 7,614,392,202, instead of 7,632,153,402.
Approval of share change
√ Applicable □ Not applicable
68
Chongqing Changan Automobile Company Limited 2021 Annual Report
(1) Granting of A-share restricted stock
On February 18, 2021, the company held the first extraordinary general meeting in 2021, and reviewed and approved 3 proposals
related to the A-share restricted stock incentive plan. The first granting of the A-share restricted stock of the incentive plan was reviewed
and approved by the 12th meeting of the 8th Session of Board of Directors and the 8th meeting of the 8th Session of Board of
Supervisors on February 22, 2021. The grant of the reserved A-share restricted stock of the incentive plan was reviewed and approved
at the 29th meeting of the 8th Session Board of Directors and the 15th meeting of the 8th Session of Board of Supervisors on November
19, 2021.
(2) Part of the 2020 non-public A-shares’ restrictions were removed.
As confirmed by the Shenzhen Stock Exchange and the Shenzhen Branch of China Securities Depository and Clearing Corporation
Limited, 277,609,345 restricted shares that was privately issued by the company was listed for trading on April 26, 2021.
(3) 2020 Annual Equity Distribution
The matter was reviewed and approved by the 15th meeting of the 8th Session of Board of Directors on April 17, 2021, and was
reviewed and approved by the company's 2020 annual general meeting of shareholders on May 14, 2021.
(4) Repurchase and cancellation of certain A-share restricted shares
The matter was reviewed and approved by the 25th meeting of the 8th Session of Board of Directors and the 12th meeting of the
8th Session of Supervisory Committee on August 30, 2021, and was reviewed and approved by the company's second extraordinary
general meeting in 2021 on September 17, 2021.
Transfer of shares
√ Applicable □ Not applicable
See Chapter 7, I, 1, "Reasons for share change" for details.
Impact of share changes on financial indicators such as basic earnings per share and diluted earnings per
share in the latest year and the latest period, and net assets per share attributable to ordinary shareholders
of the company
√ Applicable □ Not applicable
The basic earnings per share at the beginning of the reporting period was RMB 0.48 yuan, and at the end, RMB 0.47 yuan; the
diluted earnings per share at the end was RMB 0.46 yuan; the net assets per share attributable to ordinary shareholders at the beginning
were RMB 9.96 yuan, and at the end, RMB 7.30 yuan.
Other information deemed necessary by the company or required by securities regulators to disclose
□ Applicable √ Not applicable
2. Changes in restricted shares
√ Applicable □ Not applicable
Unit: share(s)
Number of
Number of shares with sales Number of
Increase during
restricted shares at restriction restricted shares at Reasons for Date of removal of
Name of shareholders the reporting
the beginning of removed during the end of the restrictions sales restriction
period
the period the reporting period
period
China South Industries Group Non-public issuance
2,764,486 1,105,794 - 3,870,280 2023-10-26
Co., Ltd. of A shares in 2020
China Changan Automobile Non-public issuance
93,457,944 37,383,178 - 130,841,122 2023-10-26
Group Co., Ltd. of A shares in 2020
Southern Industry Asset Non-public issuance
186,915,888 74,766,355 - 261,682,243 2023-10-26
Management Co., Ltd. of A shares in 2020
China Southern Asset Non-public issuance
147,289,719 - 147,289,719 - 2021-04-26
Management Co., Ltd. of A shares in 2020
China Galaxy Securities Co., Non-public issuance
38,317,757 - 38,317,757 - 2021-04-26
Ltd. of A shares in 2020
JPMorgan Chase Bank, Non-public issuance
32,710,280 - 32,710,280 - 2021-04-26
National Association of A shares in 2020
Guotai Junan Securities Co., Non-public issuance
14,018,691 - 14,018,691 - 2021-04-26
Ltd. of A shares in 2020
Caitong Fund Management Non-public issuance
10,990,654 - 10,990,654 - 2021-04-26
Co., Ltd. of A shares in 2020
Fullgoal Fund Management Non-public issuance
10,319,626 - 10,319,626 - 2021-04-26
Co., Ltd. of A shares in 2020
Non-public issuance
Guosen Securities Co., Ltd. 10,280,373 - 10,280,373 - 2021-04-26
of A shares in 2020
Truvalue Fund Management Non-public issuance
9,345,794 - 9,345,794 - 2021-04-26
Co., Ltd. of A shares in 2020
Invesco Great Wall Fund 4,336,451 - 4,336,451 - Non-public issuance 2021-04-26
69
Chongqing Changan Automobile Company Limited 2021 Annual Report
Management Co., Ltd. of A shares in 2020
Lock-up stocks for 6 months after the
Zhu Huarong 18,900 7,560 - 26,460
executives retirement
A-share restricted stock - 34,860,395 - 34,860,395 Equity incentive 2023-03-05
A-share restricted stock - 34,860,395 - 34,860,395 Equity incentive 2024-03-05
A-share restricted stock - 35,916,770 - 35,916,770 Equity incentive 2025-03-05
A-share restricted stock - 5,861,196 - 5,861,196 Equity incentive 2023-12-31
A-share restricted stock - 5,861,196 - 5,861,196 Equity incentive 2024-12-31
A-share restricted stock - 6,038,808 - 6,038,808 Equity incentive 2025-12-31
Total 560,766,563 236,661,647 277,609,345 519,818,865 -- --
Note: The above "Increase during the reporting period" has been adjusted according to the implementation of the company's 2020
equity distribution plan, which is subject to the registration of China Securities Depository and Clearing Corporation Limited Shenzhen
Branch.
II. Issuing and listing of securities
1. Securities issuance (excluding preference shares) during the reporting period
√ Applicable □ Not applicable
Name of the Number
Price (or Closing
share and its approved of Disclosure
Date interest Number Listing date date of Disclosure information
derivative listing and date
rate) trading
securities trading
Stock
For details, please see the
"Announcement on the Completion of
A-share
6.66 the Registration of the Initial Granting
restricted 2021-03-05 76,195,400 2021-03-05 76,195,400 / 2021-03-03
yuan/share of the A-Share Restricted Stock
stocks
Incentive Plan" (No. 2021-20) on
http://www.cninfo.com.cn
For details, please see the
"Announcement on the Completion of
A-share
9.93 the Granting of the Reserved A-Share
restricted 2021-12-31 17,761,200 2021-12-31 17,761,200 / 2021-12-30
yuan/share Restricted Stock of the Incentive
stocks
Plan" (No. 2021-103) on
http://www.cninfo.com.cn
Note: 1,036,000 A-share restricted shares have been cancelled on December 21, 2021.
Explanation on the issuance of securities (excluding preferred shares) during the reporting period
On February 18, 2021, the company held the first extraordinary general meeting in 2021, reviewed and approved 3 proposals
related to the incentive plan of A-share stock with sales restrictions.
The initial granting of the incentive plan was reviewed and approved by the 12th meeting of the 8th Session of Board of Directors
and the 8th meeting of the 8th Session of Board of Supervisors on February 22, 2021. On March 3, 2021, the company registered the
restricted stocks and disclosed the "Announcement on the Completion of the Registration of the Initial Granting of the A-Share
Restricted Stock Incentive Plan". 1,247 people were awarded with 76,195,400 restricted shares. The listing date of restricted shares
was March 5, 2021.
The granting of the reserved A-share restricted stock as part of the incentive plan was reviewed and approved at the 29th meeting
of the 8th Session of Board of Directors and the 15th meeting of the 8th Session of Board of Supervisors on November 19, 2021. On
December 30, 2021, the company registered the reserved restricted stock and disclosed the "Announcement on the Completion of the
Granting of the Reserved A-Share Restricted Stock of the Incentive Plan". 356 people were awarded with 17,761,200 reserved restricted.
The listing date of reserved restricted stocks was December 31, 2021.
2. Changes in the company's total shares and shareholding structure, and changes in the company's asset
and liability structure
√ Applicable □ Not applicable
Please see Chapter 7, I, 1, "Reasons for share change" for the changes in the total number of ordinary shares and shareholder
structure of the Company during the reporting period.
At the beginning of the reporting period, the total assets were RMB 118,265,186,394.86; the total liabilities were RMB
64,784,878,929.11, and the asset-liability ratio was 54.78%. At the end of the period, the total assets were RMB 135,404,623,479.63,
the total liabilities were RMB 79,538,383,535.43, and the asset-liability ratio was 58.74%.
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Chongqing Changan Automobile Company Limited 2021 Annual Report
3. Existing employee shares
□ Applicable √ Not applicable
III. Shareholders and actual controllers
1. Number of shareholders and shareholding
Unit: share(s)
Number of Number of
ordinary shareholders Number of shareholders
shareholders holding preference holding preference shares
At the end of the report period, the at the month- shares with with restored voting
593,511 589,258 0 0
total number of shareholders end prior restored voting rights at the month-end
to the rights at the end of prior to the disclosure
disclosure date the reporting date of this Report
of this Report period
Shareholders holding more than 5% of the shares, or top 10 shareholders
Increase/ Condition of
Number of Number of Number of
decrease shares (pledged,
Percentag shares held as of shares held shares held
Name Nature during the labeled or frozen)
e the end of the with sales without sales
Reporting Amoun
reporting period restrictions restrictions Status
Period t
China Changan Automobile Group State-owned legal
17.97% 1,371,607,803 350,104,913 130,841,122 1,240,766,681
Co., Ltd. person
China South Industries Group Co., State-owned legal
14.75% 1,125,382,399 121,537,828 3,870,280 1,121,512,119
Ltd. person
Southern Industry Asset Management State-owned legal
5.99% 457,067,890 270,152,002 261,682,243 195,385,647
Co., Ltd. person
Domestic general
China Securities Finance Co., Ltd. 4.30% 327,971,466 93,706,133 327,971,466
legal person
Hong Kong Securities Clearing Co.,
Foreign legal person 3.15% 240,686,440 55,811,261 240,686,440 Not
Ltd.
pledged,
United Prosperity Investment Co., Ltd. Foreign legal person 2.83% 215,768,332 61,648,095 215,768,332
labeled or
China Construction Bank Corporation Funds, wealth frozen
- Huaxia Energy Reform Equity management 0.73% 55,872,444 55,872,444 55,872,444
Securities Investment Fund products, etc.
China Merchants Securities (HK) Co., Domestic general
0.73% 55,692,002 35,729,129 55,692,002
Ltd. legal person
CHINA INTERNATIONAL
CAPITAL CORPORATION HONG Foreign legal person 0.69% 52,436,823 24,117,349 52,436,823
KONG SECURITIES LTD
CAPE ANN GLOBAL
Foreign legal person 0.42% 31,824,337 4,194,577 31,824,337
DEVELOPING MARKETS FUND
Among the top 10 shareholders, the actual controller China South Industries Group Co., Ltd. and its
wholly-owned subsidiary Southern Industry Asset Management Co., Ltd., the controlling shareholder
Description of the related party relationship or acting in
China Changan Automobile Group Co., Ltd. and its wholly-owned subsidiary United Prosperity
concert among the above shareholders
Investment Co., Ltd. are parties acting in concert by “Measures for the Administration of Takeover of
Listed Companies”.
Description of the above-mentioned shareholders
entrusting/being entrusted with voting rights and waiver of None
voting rights
Shareholdings of the top 10 ordinary shareholders of unrestricted shares
Number of shares without sales Shares type
Shareholders restrictions at the end of the
Type Number
reporting period
China Changan Automobile Group Co., Ltd. 1,240,766,681 RMB ordinary shares 1,240,766,681
China South Industries Group Co., Ltd. 1,121,512,119 RMB ordinary shares 1,121,512,119
China Securities Finance Co., Ltd. 327,971,466 RMB ordinary shares 327,971,466
Hong Kong Securities Clearing Co., Ltd. 240,686,440 RMB ordinary shares 240,686,440
United Prosperity Investment Co., Limited 215,768,332 Domestic listed foreign shares 215,768,332
Southern Industry Asset Management Co., Ltd. 195,385,647 RMB ordinary shares 195,385,647
China Construction Bank Corporation - Huaxia Energy
55,872,444 RMB ordinary shares 55,872,444
Reform Equity Securities Investment Fund
China Merchants Securities (HK) Co., Ltd. 55,692,002 Domestic listed foreign shares 55,692,002
CHINA INTERNATIONAL CAPITAL CORPORATION
52,436,823 Domestic listed foreign shares 52,436,823
HONG KONG SECURITIES LTD
CAPE ANN GLOBAL DEVELOPING MARKETS FUND 31,824,337 Domestic listed foreign shares 31,824,337
Description of the related relationship or acting in concert Among the top 10 shareholders, the actual controller China South Industries Group Co., Ltd. and its
among the top 10 shareholders of unrestricted circulating wholly-owned subsidiary Southern Industry Asset Management Co., Ltd., the controlling shareholder
71
Chongqing Changan Automobile Company Limited 2021 Annual Report
shares, and between the top 10 shareholders of unrestricted China Changan Automobile Group Co., Ltd. and its wholly-owned subsidiary United Prosperity
tradable shares and the top 10 shareholders Investment Co., Ltd. are parties acting in concert as stipulated in the “Measures for the Administration
of Takeover of Listed Companies”.
Description of the top 10 ordinary shareholders participating During the reporting period, China South Industries Group Co., Ltd. participated in the refinancing
in the margin trading and securities lending business securities lending business, and as of the end of the reporting period, it had not lent any shares.
Whether the top 10 shareholders of ordinary shares, and the top 10 shareholders of ordinary shares without sales restrictions
agreed on the repurchase transactions during the report period
□ Yes √ No
The top 10 shareholders of ordinary shares, and the top 10 shareholders of ordinary shares without sales restrictions did not
agree on the repurchase transactions during the reporting period.
2. The company's controlling shareholder
Nature of the controlling shareholder: the central state-owned
Type of the controlling shareholder: legal person
Date of
Name Legal /Representative Organization code Business scope and major products:
establishment
Design, development, manufacturing and sales of car,
motorcycle and engine and parts; sales of optical products,
electronic and optoelectronic products, night vision
China Changan device, information and communication equipment;
Dec 26th, 91110000710933948
Automobile Group Co., Zhou Kaiquan technical development, transfer, consultation, technical
2005 4
Ltd. training, and other technical service related to the
operation mentioned above; imports and exports; merge
and acquisition and asset restructuring consultation;
telecommunications services and agency bookkeeping.
Equity of other domestic
and overseas listed As of the end of the reporting period, controlling shares of listed companies: Harbin Dongan Auto Engine Co., Ltd.
companies where he has (stock code 600178); Hunan Tianyan Machinery Co., Ltd. (stock code 600698), Chongqing Changan Minsheng APLL
controlled and participated Logistics Co., Ltd (stock code 01292.HK)
during the reporting period
The change of controlling shareholder during the reporting period
□ Applicable √ Not applicable
No changes in controlling shareholder during the reporting period.
3. The actual controller and its parties acting in concert
Nature of the actual controller: the central state-owned asset management institution
Type of the actual controller: legal person
Date of
Name Legal Representative Organization code Businesses
establishment
Investment and management of state-owned assets,
operation and management, R&D, manufacturing,
guarantee and services of vehicles, electrical equipment,
optoelectronic information products and equipment,
China South Industries 9111000071092604
Xu Xianping Jun 29th,1999 mechanical equipment, engineering and construction
Group Corp. 3F
machinery, chemical materials (except hazardous
chemicals), fire-fighting equipment, medical and
environmental protection equipment, metal and non-metal
materials and products.
As of the end of the reporting period, directly or indirectly controlling shares of listed companies: Harbin Dongan Auto
Other domestic and
Engine Co., Ltd. (stock code 600178); Baoding Tianwei Electric Co., Ltd. (stock code 600550); Jiangling Motors Co.,
overseas listed companies
Ltd. (stock code 000550); Hunan Tianyan Machinery Co., Ltd. (stock code 600698); Chongqing Jianshe Automotive
controlled by the actual
Systems Co., Ltd. (stock code 200054); China Optical Group Co., Ltd. (stock code 002189); Yunnan Xiyi Industrial Co.,
controller during the report
Ltd. (stock code 002265); Chongqing Changan Minsheng APLL Logistics Co., Ltd. (stock code 01292.HK); Hubei
period
Huaqiang Technology Co., Ltd. (stock code 688151).
The change of the actual controller during the reporting period
□ Applicable √ Not applicable
No changes in the actual controller during the reporting period.
The equity and control relationship between the company and the actual controller:
72
Chongqing Changan Automobile Company Limited 2021 Annual Report
Actual controlling through trust or other asset management.
□ Applicable √ Not applicable
4. Pledged shares held by controlling shareholder or the largest shareholder and its parties acting in concert
account for 80% of the shares.
□ Applicable √ Not applicable
5. Other corporate shareholders holding over 10% shares.
□ Applicable √ Not applicable
6. Shareholding restriction and reduction of controlling shareholder, actual controller, restructuring party
and other commitment entities
□ Applicable √ Not applicable
IV. Share repurchase during the reporting period
Share repurchase
□ Applicable √ Not applicable
During the reporting period, the Company had no other share repurchase matters except for the repurchase and cancellation of certain
A-share restricted shares. Please refer to “Ⅰ. Change in shareholdings” in chapter 7 for more details
Reducing repurchased shares by centralized bidding
□ Applicable √ Not applicable
73
Chongqing Changan Automobile Company Limited 2021 Annual Report
Chapter 8 Preference Shares
□ Applicable √ Not applicable
There was no preferred share in the Company in the reporting period.
74
Chongqing Changan Automobile Company Limited 2021 Annual Report
Chapter 9 Bonds
□ Applicable √ Not applicable
During the reporting period, the Company did not have any bond-related business.
75
Chongqing Changan Automobile Company Limited 2021 Annual Report
Chapter 10 Auditor’s Report
Ernst & Young Hua Ming Shen Zi (2022) No. 60662431_V01
Chongqing Changan Automobile Company Limited
To the shareholders of
Chongqing Changan Automobile Company Limited
76
Chongqing Changan Automobile Company Limited 2021 Annual Report
Auditor’s Report
Ernst & Young Hua Ming Shen Zi (2022) No. 60662431_V01
Chongqing Changan Automobile Company Limited
To the shareholders of
Chongqing Changan Automobile Company Limited:
Opinion
We have audited the accompanying financial statements of Chongqing Changan Automobile
Company Limited, which comprise the consolidated and the company balance sheet as at 31
December 2021, and the consolidated and the company income statements, the statements
of changes in equity and the cash flow statements for the year then ended and notes to the
financial statements.
In our opinion, the accompanying financial statements of Chongqing Changan Automobile
Company Limited present fairly, in all material respects, the consolidated and the Company’s
financial position as at 31 December 2021, and the consolidated and the Company’s financial
performance and cash flows for the year then ended in accordance with Accounting
Standards for Business Enterprises (“ASBEs”).
Basis for opinion
We conducted our audit in accordance with China Standards on Auditing (“CSAs”). Our
responsibilities under those standards are further described in the Auditor’s responsibilities
for the audit of the financial statements section of our report. We are independent of the
Company in accordance with China Code of Ethics for Certified Public Accountants (the
“Code”), and we have fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the financial statements of the current period. These matters were
addressed in the context of our audit of the financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate opinion on these matters. For each
matter below, our description of how our audit addressed the matter is provided in that
context.
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Chongqing Changan Automobile Company Limited 2021 Annual Report
Auditor’s Report (continued)
Ernst & Young Hua Ming Shen Zi (2022) No. 60662431_V01
Chongqing Changan Automobile Company Limited
Key audit matters (continued)
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of
the financial statements section of our report, including in relation to these matters.
Accordingly, our audit included the performance of procedures designed to respond to our
assessment of the risks of material misstatement of the financial statements. The results of
our audit procedures, including the procedures performed to address the matters below,
provide the basis for our audit opinion on the accompanying financial statements.
Key audit matter How our audit addressed the key audit
matter
Provision for warranties
According to after-sales maintenance contracts or With regard to the warranty provisions
related national laws and regulations, Chongqing audited by us:
Changan Automobile Company Limited provides
warranties on automobile and undertakes to repair We understood and evaluated
or replace items that fail to perform satisfactorily the process of the warranty
based on certain pre-determined conditions. In provisions. In addition, we tested
addition, in order to maintain the quality and safety the key controls and application
of the sold vehicle, Chongqing Changan Automobile controls over the process of the
Company Limited also promotes a recall based on warranty provisions.
needs. Chongqing Changan Automobile Company
Limited should estimate and recognize the warranty We assessed the reasonableness
costs and the corresponding liabilities. and evaluated the major
assumptions of management’s
Provisions for warranties granted by Chongqing warranty provision models. We
Changan Automobile Company Limited for the tested the samples of payment of
vehicles sold are recognized based on sales volume the warranty provisions and tested
and past experience of the cost of repair and the mathematical accuracy of
replacement, and labor cost, which involves a calculations therein by re-
number of assumptions and judgments. Extra performing the calculations
recalls are recognized based on the vehicles regarding the balance of the
involved and the estimated average cost of repair provisions.
and replacement, and labor cost, which involves a
number of assumptions and judgments. Any We reviewed the adequacy of
increase or decrease in the provision would have a disclosures in the financial
significant impact on the financial statements. statements.
Refer to Note III 23, 33 and Note V 28 of the
consolidated financial statements for the
disclosures of the provision for warranties.
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Chongqing Changan Automobile Company Limited 2021 Annual Report
Auditor’s Report (continued)
Ernst & Young Hua Ming Shen Zi (2022) No. 60662431_V01
Chongqing Changan Automobile Company Limited
Key audit matters (continued)
Key audit matter How our audit addressed the key audit
matter
Capitalization of internal development costs
The research and development activities With regard to the capitalization of internal
launched by Chongqing Changan Automobile development costs audited by us:
Company Limited mainly include technology
development, product process design and We understood, evaluated and
product manufacturing process design. validated the key controls over the
Management capitalized the costs on capitalization of internal development
development projects met the criteria set out in costs.
the accounting standard for capitalization.
We assessed the criteria set by the
The expenditures in development stage are management related to the
capitalized that should meet all the conditions capitalization of the costs under
including technically feasible, use or sale development stage. We assessed
intention, market, finance, resources, and etc. the accuracy of the start point and the
The judgment should be made according to stop point for capitalization of internal
every project and agreed by all related development costs. We also tested
departments. In addition, for projects that samples of projects to review the
have been capitalized in the past, the judgment feasibility reports and other reports for
whether the expenditures in development can important stages.
be continuing capitalized should be made
according the latest progress and future We reviewed the adequacy of
expectations of the project. The judgment disclosures in the financial statements.
made by the management would have a
significant impact on the financial statements.
Refer to Note III 18, 33 and Note V 17 of the
consolidated financial statements for the
disclosures of capitalization of internal
development costs.
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Chongqing Changan Automobile Company Limited 2021 Annual Report
Auditor’s Report (continued)
Ernst & Young Hua Ming Shen Zi (2022) No. 60662431_V01
Chongqing Changan Automobile Company Limited
Other information
The management of the Chongqing Changan Automobile Company Limited (the
“Management”) is responsible for the other information. The other information comprises
the information included in the annual report, other than the financial statements and our
auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially
inconsistent with the financial statements or our knowledge obtained in the audit or
otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement
of this other information, we are required to report that fact. We have nothing to report in
this regard.
Management’s and governance’ responsibility for the financial statements
The Management is responsible for the preparation and fair presentation of these financial
statements in accordance with ASBEs, and for designing, implementing and maintaining
such internal control as the management determines is necessary to enable the preparation
of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, the Management is responsible for assessing the
Company’s ability to continue as a going concern, disclosing, as applicable, matters related
to going concern and using the going concern basis of accounting, unless the management
either intends to liquidate the Company or to cease operations or has no realistic alternative
but to do so.
Those charged with governance are responsible for overseeing the Company’s financial
reporting process.
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Chongqing Changan Automobile Company Limited 2021 Annual Report
Auditor’s Report (continued)
Ernst & Young Hua Ming Shen Zi (2022) No. 60662431_V01
Chongqing Changan Automobile Company Limited
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as
a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance
but is not a guarantee that an audit conducted in accordance with CSAs will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are
generally considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these financial
statements.
As part of an audit in accordance with CSAs, we exercise professional judgement and
maintain professional skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the management.
(4) Conclude on the appropriateness of the management’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Company’s
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditor’s report to the related disclosures in the
financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause the Company to cease to
continue as a going concern.
(5) Evaluate the overall presentation including the disclosures, structure and content of the
financial statements, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
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Chongqing Changan Automobile Company Limited 2021 Annual Report
Auditor’s Report (continued)
Ernst & Young Hua Ming Shen Zi (2022) No. 60662431_V01
Chongqing Changan Automobile Company Limited
Auditor’s responsibilities for the audit of the financial statements (continued)
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the
entities or business activities within the Company to express an opinion on the financial
statements. We are responsible for the direction, supervision and performance of the
Group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the financial statements of the current
period and are therefore the key audit matters. We describe these matters in our auditor’s
report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in
our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
Qiao Chun
Ernst & Young Hua Ming (LLP) Chinese Certified Public Accountant
(Engagement partner)
Yuan Yong
Chinese Certified Public Accountant
Beijing, the People’s Republic of China 26 April 2022
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Chongqing Changan Automobile Company Limited
CONSOLIDATED BALANCE SHEET
31 December 2021
(Expressed in Renminbi Yuan)
Assets Notes V 2021/12/31 2020/12/31
(Restated)
Current assets
Cash 1 51,976,242,149.37 32,001,775,600.07
Financial assets held for trading 2 195,798,300.00 204,254,400.00
Notes receivable 3 24,267,633,416.65 28,371,541,054.75
Accounts receivable 4 1,675,427,534.87 2,141,197,139.45
Prepayments 5 3,241,248,831.28 460,703,603.80
Other receivables 6 632,122,942.37 723,919,037.36
Inventories 7 6,852,874,420.59 5,967,516,230.57
Contract assets 8 1,151,292,247.36 1,450,031,414.61
Other current assets 9 1,147,798,871.42 1,568,711,870.61
Total current assets 91,140,438,713.91 72,889,650,351.22
Non-current assets
Long-term
equity investments 10 13,245,374,860.55 12,109,089,795.67
Other equity instrument
investment 11 701,409,600.00 691,990,000.00
Investment property 12 6,649,426.60 6,876,138.16
Fixed assets 13 21,325,959,850.16 24,300,590,850.02
Construction in progress 14 1,460,176,539.43 1,048,036,148.70
Right-of-use assets 15 66,313,062.98 -
Intangible assets 16 4,385,997,657.67 4,431,582,944.74
Development expenditure 17 727,568,248.78 596,577,787.95
Goodwill 18 48,883,188.37 48,883,188.37
Long-term deferred expenses 19 15,032,814.19 10,642,512.51
Deferred tax assets 20 2,280,819,516.99 2,131,266,677.52
Total non-current assets 44,264,184,765.72 45,375,536,043.64
TOTAL ASSETS 135,404,623,479.63 118,265,186,394.86
The notes form an integral part of the financial statements.
83
Chongqing Changan Automobile Company Limited
CONSOLIDATED BALANCE SHEET (continued)
31 December 2021
(Expressed in Renminbi Yuan)
Notes V 2021/12/31 2020/12/31
(Restated)
Current liabilities
Short-term loans 21 19,000,000.00 578,000,000.00
Notes payable 22 24,292,268,371.12 17,574,014,553.46
Accounts payable 23 23,650,604,870.98 23,118,793,794.42
Contract liabilities 24 9,840,509,514.39 4,471,158,190.75
Payroll payable 25 2,566,570,928.52 2,015,868,366.57
Taxes payable 26 1,121,313,397.52 1,292,001,263.86
Other payables 27 4,562,626,344.69 4,475,215,625.98
Contingent liabilities 28 3,839,015,677.84 3,125,170,942.46
Non-current liabilities due within
one year 29 533,839,583.57 100,000,000.00
Other current liabilities 30 5,680,959,029.22 5,842,758,104.08
Total current liabilities 76,106,707,717.85 62,592,980,841.58
Non-current liabilities
Long-term loans 31 600,000,000.00 955,300,000.00
Lease Liabilities 32 38,679,735.59 -
Long-term payables 33 825,473,490.08 261,260,928.70
Long term payroll payable 34 39,103,000.00 41,634,000.00
Deferred income 35 924,749,731.12 818,398,430.22
Deferred tax liabilities 20 217,441,992.37 115,304,728.61
Other non-current liabilities 36 786,227,868.42 -
Total non-current liabilities 3,431,675,817.58 2,191,898,087.53
Total liabilities 79,538,383,535.43 64,784,878,929.11
The notes form an integral part of the financial statements.
84
Chongqing Changan Automobile Company Limited
CONSOLIDATED BALANCE SHEET (continued)
31 December 2021
(Expressed in Renminbi Yuan)
Notes V 2021/12/31 2020/12/31
(Restated)
Owners’ equity
Share capital 37 7,632,153,402.00 5,363,396,174.00
Capital reserves 38 9,776,193,360.38 10,930,781,918.64
Less: treasury shares 39 655,812,327.60 -
Other
comprehensive Income 40 69,442,469.53 78,420,720.78
Special reserves 41 27,988,260.61 40,847,443.41
Surplus reserves 42 2,982,292,413.67 2,681,698,087.00
Retained earnings 43 35,900,674,525.13 34,315,048,892.26
Equity attributable to owners 55,732,932,103.72 53,410,193,236.09
Minority interests 133,307,840.48 70,114,229.66
Total equity 55,866,239,944.20 53,480,307,465.75
TOTAL LIABILITIES
AND OWNERS’ EQUITY 135,404,623,479.63 118,265,186,394.86
The financial statements have been signed by:
Legal Principal in Charge Chief
Representative: of Accountancy: Accountant:
The notes form an integral part of the financial statements.
85
Chongqing Changan Automobile Company Limited
CONSOLIDATED INCOME STATEMENT
Year ended 31 December 2021
(Expressed in Renminbi Yuan)
Notes V 2021 2020
(Restated)
Operating revenue 44 105,141,877,237.05 84,565,544,146.58
Less: Operating cost 44 87,648,705,534.14 72,101,062,128.83
Tax and surcharges 45 3,972,433,040.45 3,228,273,573.84
Operating expenses 46 4,645,654,234.59 3,405,913,730.59
General and administrative
expenses 47 3,499,654,508.49 4,171,768,588.16
Research and development
expenses 48 3,515,029,178.76 2,888,873,626.82
Financial income 49 (780,923,197.18) (210,389,449.63)
Interest expense 45,160,385.56 46,672,055.34
Interest income 868,952,893.13 341,543,220.81
Add: Other incomes 50 330,174,796.23 -
Investment income 51 1,013,650,091.28 3,153,614,176.97
Including: Investment
income/(loss)
from associates and joint
venture 924,827,870.13 (566,732,463.22)
Earnings from fair value
changes 52 42,078,804.00 2,035,390,665.86
Impairment loss of credit 53 (23,050,864.57) (107,743,059.89)
Impairment loss on assets 54 (1,019,254,832.79) (1,517,807,107.17)
Gain on disposal of assets 55 745,601,530.26 80,607,908.05
Operating profit 3,730,523,462.21 2,624,104,531.79
Add: Non-operating income 56 130,170,270.12 61,938,556.89
Less: Non-operating expenses 57 40,084,896.60 89,458,043.64
Total profit 3,820,608,835.73 2,596,585,045.04
Less: Income tax expense 59 216,390,645.75 (691,893,597.66)
Net profit 3,604,218,189.98 3,288,478,642.70
Classification by going concern
Net profit from
continuing operations 3,604,218,189.98 3,288,478,642.70
Classification by ownership
attribution
Net profit attributable
to owners 3,552,463,320.03 3,324,251,164.16
Minority interests 51,754,869.95 (35,772,521.46)
The notes form an integral part of the financial statements.
86
Chongqing Changan Automobile Company Limited
CONSOLIDATED INCOME STATEMENT (continued)
Year ended 31 December 2021
(Expressed in Renminbi Yuan)
Notes V 2021 2020
(Restated)
Other comprehensive income,
net of tax
Total comprehensive income
attributable to owners,
net of tax (8,978,251.25) (61,573,859.41)
Other comprehensive income
not to be reclassified to
profit or loss in
subsequent periods
Change in net liability or
assets from defined
benefit plan (1,519,000.00) (207,000.00)
Other comprehensive income
under the equity method
cannot be converted into
profit or loss (1,279,985.89) -
Changes in fair value of
other equity investment 8,006,660.00 (33,588,685.00)
5,207,674.11 (33,795,685.00)
Other comprehensive income
to be reclassified to profit
or loss in subsequent periods:
Foreign currency reserve (14,185,925.36) (27,778,174.41)
(14,185,925.36) (27,778,174.41)
Total comprehensive income
attributable to minority
interests, net of tax 19,231.15 -
Total comprehensive income 3,595,259,169.88 3,226,904,783.29
Including:
Total comprehensive income
attributable to owners 3,543,485,068.78 3,262,677,304.75
Total comprehensive income
attributable to minority
interest 51,774,101.10 (35,772,521.46)
Earnings per share
Basic earnings per share 60 0.4700 0.4842
Diluted earnings per share 60 0.4631 Not Applicable
The notes form an integral part of the financial statements.
87
Chongqing Changan Automobile Company Limited
CONSOLIDATED STATMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
Year ended 31 December 2021
(Expressed in Renminbi Yuan)
2021
Equity attributable to owners
Share capital Capital Less: treasury Other Special Surplus Retained Subtotal Minority Total equity
reserves shares comprehensive reserves reserves earnings interest
income
At 31 December 2020 5,363,396,174.00 10,930,781,918.64 - 78,420,720.78 40,847,443.41 2,681,698,087.00 34,315,048,892.26 53,410,193,236.09 70,114,229.66 53,480,307,465.75
Changes during the year:
Total comprehensive income - - - (8,978,251.25) - - 3,552,463,320.03 3,543,485,068.78 51,774,101.10 3,595,259,169.88
Capital contributed by owners and
capital decreases
1.Amount of share-based
payments included in
shareholders' equity 93,956,600.00 858,413,347.92 683,830,080.00 - - - - 268,539,867.92 - 268,539,867.92
2.Cancellation of restricted
shares (1,036,000.00) (3,667,440.00) (4,703,440.00) - - - - - - -
3.Others - 166,502,161.82 - - - - - 166,502,161.82 11,376,990.65 177,879,152.47
Distribution of profit
1.Surplus reserve - - - - - 300,594,326.67 (300,594,326.67) - - -
2.Distribution to owners - - (23,314,312.40) - - - (1,666,243,360.49) (1,642,929,048.09) - (1,642,929,048.09)
Internal transfer of shareholder
equity
1.Capital reserve converted into
share capital 2,175,836,628.00 (2,175,836,628.00) - - - - - - - -
Special reserves
1.Provided - - - - 85,032,433.05 - - 85,032,433.05 2,604,021.39 87,636,454.44
2.Ultilized - - - - (97,891,615.85) - - (97,891,615.85) (2,561,502.32) (100,453,118.17)
At 31 December 2021 7,632,153,402.00 9,776,193,360.38 655,812,327.60 69,442,469.53 27,988,260.61 2,982,292,413.67 35,900,674,525.13 55,732,932,103.72 133,307,840.48 55,866,239,944.20
The notes form an integral part of the financial statements.
88
Chongqing Changan Automobile Company Limited
CONSOLIDATED STATMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (continued)
Year ended 31 December 2021
(Expressed in Renminbi Yuan)
2020
Equity attributable to owners
Other
Capital Special Surplus Retained
Share capital comprehensive Subtotal Minority interest Total equity
reserves reserves reserves earnings
income
At 31 December 2019 4,802,648,511.00 5,366,097,594.66 139,994,580.19 47,076,242.71 2,401,324,255.50 31,271,171,559.60 44,028,312,743.66 (94,241,765.21 ) 43,934,070,978.45
Changes during the year:
Total comprehensive income - - (61,573,859.41 ) - - 3,324,251,164.16 3,262,677,304.75 (35,772,521.46 ) 3,226,904,783.29
Capital contributed by owners and
capital decreases
1.Capital invested by shareholders 560,747,663.00 5,426,124,109.65 - - - - 5,986,871,772.65 - 5,986,871,772.65
2.Acquisition of minority
shareholders - (1,175,706.59 ) - - - - (1,175,706.59 ) (11,074,002.41 ) (12,249,709.00 )
3.Others - 139,735,920.92
