Share’s name:
| Share’s name: | Jiangling Motors | Share’s code: | 000550 | No.: | 2019-055 |
| Jiangling B | 200550 |
Jiangling Motors Corporation, Ltd.2019 Third Quarter Report
§1 Important Note
1.1 The Board of Directors and its members, the Supervisory Board and itsmembers, and the senior executives are jointly and severally liable for thetruthfulness, accuracy and completeness of the information disclosed inthe Report, and confirm that the information disclosed herein does notcontain any false statement, misrepresentation or major omission.
1.2 All Directors were present at the Board meeting in person.
1.3 Chairman Qiu Tiangao, CFO Li Weihua and Chief of Finance Department,
Xie Wanzhao, confirm that the financial statements in this Quarterly Reportare truthful, accurate and complete.
1.4 All financial data in this Quarterly Report are prepared under InternationalFinancial Reporting Standards (‘IFRS’) unless otherwise specified.
§2 Brief Introduction
2.1 Main accounting data and financial indicators
Unit: RMB’000
| At the end of reporting period | At the end of the previous year | Change (%) | ||||
| Total Assets | 22,840,343 | 23,396,529 | -2.38% | |||
| Shareholder’s equity Attributable to the Equity Holders of the Company | 10,507,642 | 10,384,498 | 1.19% | |||
| Reporting period (2019 third quarter) | YoY Change (%) | Beginning of year to end of reporting period | YoY Change (%) | |||
| Revenue | 6,686,321 | 13.28% | 20,408,275 | 1.08% | ||
| Profit Attributable to the Equity Holders of the Company | 98,811 | 198.65% | 157,673 | -27.93% | ||
| Net Cash Generated From Operating Activities | - | - | 1,283,215 | 156.06% | ||
| Basic Earnings Per Share (RMB) | 0.11 | 198.65% | 0.18 | -27.93% | ||
| Diluted Earnings Per Share (RMB) | 0.11 | 198.65% | 0.18 | -27.93% | ||
| Weighted Average Return on Net Asset Ratio (%) | 0.95% | Increase 1.84 percentage point | 1.51% | Down 0.43 percentage points | ||
2.2 Total number of shareholders and top ten shareholders at the end ofreporting period
2.2.1 Total number of shareholders and top ten shareholders
| Total shareholders | JMC had 23,713 shareholders as of September 30, 2019, including 18,476 A-share holders and 5,237 B-share holders. | ||||
| Top ten shareholders | |||||
| Shareholder Name | Shareholder Type | Shareholding Percentage (%) | Shares as of September 30, 2017 | Shares with Trading Restriction | Shares due to mortgage or frozen |
| Nanchang Jiangling Investment Co., Ltd. | State-owned legal person | 41.03 | 354,176,000 | 0 | 0 |
| Ford Motor Company | Foreign legal person | 32.00 | 276,228,394 | 0 | 0 |
| China Securities Corporation Limited | Domestic non-state-owned legal person | 2.72 | 23,458,066 | 0 | 0 |
| Shanghai Automotive Co., Ltd. | State-owned Legal person | 1.51 | 13,019,610 | 0 | 0 |
HarvestEnvironmentalProtection LowCarbon StockInvestment Fund
| Harvest Environmental Protection Low Carbon Stock Investment Fund | Other | 0.98 | 8,465,988 | 0 | 0 | |
| National Social Security Fund 602 Portfolio | Other | 0.91 | 7,851,964 | 0 | 0 | |
| Central Huijin Investment Ltd. | State-owned Legal person | 0.83 | 7,186,600 | 0 | 0 | |
| GAOLING FUND, L.P. | Foreign legal person | 0.63 | 5,453,086 | 0 | 0 | |
| National Social Security Fund 504 Portfolio | Other | 0.61 | 5,250,455 | 0 | 0 | |
| JPMBLSA RE FTIF TEMPLETON CHINA FUND GTI 5497 | Foreign legal person | 0.61 | 5,239,550 | 0 | 0 | |
| Top ten shareholders holding unlimited tradable shares | ||||||
| Shareholder Name | Shares without Trading Restriction | Share Type | ||||
| Nanchang Jiangling Investment Co., Ltd. | 354,176,000 | A share | ||||
| Ford Motor Company | 276,228,394 | B share | ||||
| China Securities Corporation Limited | 23,458,066 | A share | ||||
| Shanghai Automotive Co., Ltd. | 13,019,610 | A share | ||||
| Harvest Environmental Protection Low Carbon Stock Investment Fund | 8,465,988 | A share | ||||
| National Social Security Fund 602 Portfolio | 7,851,964 | A share | ||||
| Central Huijin Investment Ltd. | 7,186,600 | B share | ||||
| GAOLING FUND, L.P. | 5,453,086 | B share | ||||
| National Social Security Fund 504 Portfolio | 5,250,455 | B share | ||||
| JPMBLSA RE FTIF TEMPLETON CHINA FUND GTI 5497 | 5,239,550 | B share | ||||
| Notes on association among above-mentioned shareholders | None. | |||||
Stock buy-back of top ten shareholders or top ten shareholders holdingunlimited tradable shares in the reporting period
□Yes □√No
There was no Stock buy-back of top ten shareholders or top ten shareholdersholding unlimited tradable shares in the reporting period.
2.2.2 Total number of shareholders holding preferred shares and top tenshareholders holding preferred shares
□Applicable □√Not Applicable
§3 Major Events
3.1 Causes and explanations of major changes of financial indicatorscompared with those of previous reporting period
□√Applicable □Not Applicable
In the first three quarters of 2019, JMC sold 202,201 vehicles in total, down
0.89%, compared with the same period last year; including 67,371 trucks,40,391 pickups, 38,697 SUVs, 50,971 light buses and 4,771 CKDs. Revenueand net profit during the reporting period were RMB 20,408 million and RMB158 million, increase 1.08% and decrease 27.93% respectively compared withthe same period last year.
Distribution costs in the first three quarters of 2019 increased by RMB 362million, up 49.11% from the same period last year, primarily reflecting theexpense increase for Territory launch.
Other income in the first three quarters of 2019 increased by RMB 56 million,up 30.02% from the same period last year, primarily reflecting the increase ofgovernment subsidy.
Profit before income tax in the first three quarters of 2019 decreased by RMB89 million, down 47.37% from the same period last year, primarily reflectingthe change of sales structure and investment on new product, technology andregulation.
Net cash inflow from operating activities in the first three quarters of 2019increased by RMB 3,572 million, up 156.06% from the same period last year,primarily reflecting the payment to suppliers decrease.
Net cash outflow from investing activities in the first three quarters of 2019increased by RMB 341 million, up 47.50% from the same period last year,primarily reflecting the investment increase of Fushan Plant.
Net cash outflow from financing activities in the first three quarters of 2019decreased by RMB 2,245 million, down 98.48% from the same period lastyear, primarily reflecting payment of special dividend for the middle of 2017paid in 2018.
Net increase in cash and cash equivalents at end of the first three quarters of2019 increased by RMB 5,476 million, up 103.58% from the same period lastyear, primarily reflecting the net cash inflow from operating activities increaseand payment of special dividend for the middle of 2017 paid in 2018.
3.2 Analysis of major events, their impacts and resolutions
□Applicable □√Not Applicable
Progress of Share Repurchase
□Applicable □√Not Applicable
Progress of the implementation of the centralized bidding method to reducethe share repurchases
□Applicable □√Not Applicable
3.3 Commitments of the Company actual controlling party, the shareholders,the related parties, the acquirer, or the Company
□Applicable □√Not Applicable
3.4 Forecast on 2019 operating performance
Warning and explanations as to the situation that accumulated net profit duringthe period from year beginning to the end of next reporting period may benegative or, compared with the same period last year, may have a substantialchange
□Applicable □√Not Applicable
3.5 Securities investment
□Applicable □√Not Applicable
There was no securities investment during the reporting period.
3.6 Entrust asset management
□Applicable □√Not Applicable
There was no entrust asset management during the reporting period.
3.7 Securities derivates investment
□Applicable □√Not Applicable
There was no securities derivates investment during the reporting period.
3.8 External research and media interviews with the Company during thereporting period
□√Applicable □Not Applicable
Date
| Date | Communication Method | Type of Object | Information Discussed and Materials offered |
| July 11,2019 | On-the-spot research | Other | JMC Operating highlights |
| July 17,2019 | On-the-spot research | Institution | JMC Operating highlights |
3.8. Outside guarantee in breach of laws & regulations
□Applicable □√Not Applicable
There was no outside guarantee in breach of laws & regulations during thereporting period.
3.9 Non-operating funding in the Company occupied by controlling shareholderand its affiliates
□Applicable □√Not Applicable
There was no non-operating funding in the Company occupied by controllingshareholder and its affiliates.
§4 Financial Statements
Jiangling Motors Corporation, Ltd.Consolidated Balance Sheet
(All amounts in RMB thousands unless otherwise stated)
| 30 September 2019* | 31 December 2018 | |||
| Assets | ||||
| Non-current assets | ||||
| Property, plant and equipment | 7,138,526 | 6,941,292 | ||
| Lease prepayment | 589,580 | 601,260 | ||
| Intangible assets | 309,278 | 246,026 | ||
| Deferred income tax assets | 800,631 | 743,096 | ||
| Investments accounted for using the equity method | 39,838 | 40,112 | ||
| Total non-current assets | 8,877,853 | 8,571,786 | ||
| Current assets | ||||
| Inventories | 2,096,766 | 2,522,354 | ||
| Trade and other receivables and prepayments | 3,886,791 | 4,678,284 | ||
| Derivative financial instruments | - | 979 | ||
| Financial assets at fair value through other comprehensive income | 155,087 | 6,246 | ||
| Cash and cash equivalents | 7,806,246 | 7,616,880 | ||
| Restricted cash | 17,600 | - | ||
| Total current assets | 13,962,490 | 14,824,743 | ||
| Total assets | 22,840,343 | 23,396,529 |
Jiangling Motors Corporation, Ltd.Consolidated Balance Sheet（continued）
(All amounts in RMB thousands unless otherwise stated)
| 30 September 2019* | 31 December 2018 | |||
| Equity | ||||
| Share capital | 863,214 | 863,214 | ||
| Share premium | 816,609 | 816,609 | ||
| Other reserves | 447,472 | 447,472 | ||
| Retained earnings | 8,380,347 | 8,257,203 | ||
| Total equity | 10,507,642 | 10,384,498 | ||
| Liabilities | ||||
| Non-current liabilities | ||||
| Contract liabilities | 59,948 | 38,382 | ||
| Borrowings | 3,474 | 3,595 | ||
| Deferred income tax liabilities | 25,506 | 26,024 | ||
| Retirement benefit obligations | 59,829 | 63,425 | ||
| Provisions for statutory warranty | 182,163 | 151,492 | ||
| Other non-current liabilities | 93,280 | 60,160 | ||
| Total non-current liabilities | 424,200 | 343,078 | ||
| Current liabilities | ||||
| Trade and other payables | 11,468,341 | 12,195,966 | ||
| Contract liabilities | 220,358 | 266,702 | ||
| Current income tax liabilities | - | 179 | ||
| Borrowings | 463 | 449 | ||
| Derivative financial instruments | 553 | - | ||
| Retirement benefit obligations | 4,595 | 4,595 | ||
| Provisions for statutory warranty | 214,191 | 201,062 | ||
| Total current liabilities | 11,908,501 | 12,668,953 | ||
| Total liabilities | 12,332,701 | 13,012,031 | ||
| Total equity and liabilities | 22,840,343 | 23,396,529 | ||
| * Unaudited financial indexes |
Jiangling Motors Corporation, Ltd.Consolidated Income Statement
(All amounts in RMB thousands unless otherwise stated)
| 2019.7.1-2019.9.30* | 2018.7.1-2018.9.30* | 2019.1.1-2019.9.30* | 2018.1.1-2018.9.30* | |
| Revenue from contracts with customers | 6,686,321 | 5,902,627 | 20,408,275 | 20,190,124 |
| Taxes and surcharges | (173,476) | (151,333) | (542,451) | (520,125) |
| Cost of sales | (5,498,651) | (5,043,969) | (17,182,620) | (17,321,693) |
| Gross profit | 1,014,194 | 707,325 | 2,683,204 | 2,348,306 |
| Distribution costs | (393,404) | (284,296) | (1,099,279) | (737,230) |
| Administrative expenses | (594,892) | (619,009) | (1,869,477) | (1,757,539) |
| Net expected credit losses on financial assets | (725) | 1,581 | 331 | 663 |
| Net impairment losses on property,plant and equipment | - | - | (3,126) | (3,607) |
| Other income | 8,152 | (7,877) | 243,757 | 187,483 |
| Operating profit/(loss) | 33,325 | (202,276) | (44,590) | 38,076 |
| Finance income | 55,591 | 45,499 | 148,356 | 152,153 |
| Finance costs | (1,464) | (1,349) | (4,088) | (4,611) |
| Finance income -net | 54,127 | 44,150 | 144,268 | 147,542 |
| Share of profit of investments accounted for using the equity method | (608) | 650 | (274) | 3,261 |
| Profit before income tax | 86,844 | (157,476) | 99,404 | 188,879 |
| Income tax credit | 11,967 | 57,312 | 58,269 | 29,908 |
| Profit for the period | 98,811 | (100,164) | 157,673 | 218,787 |
| Profit attributable to: | ||||
| Shareholders of the Company | 98,811 | (100,164) | 157,673 | 218,787 |
| Total comprehensive income for the period | 98,811 | (100,164) | 157,673 | 218,787 |
| Total comprehensive income attributable to: | ||||
| Shareholders of the Company | 98,811 | (100,164) | 157,673 | 218,787 |
| Earnings per share for profit attributable to the shareholders of the Company for the period | ||||
| (expressed in RMB per share) | ||||
| - Basic and diluted | 0.11 | (0.12) | 0.18 | 0.25 |
| * Unaudited financial indexes |
Jiangling Motors Corporation, Ltd.Consolidated cash flow statement
(All amounts in RMB thousands unless otherwise stated)
| 2019.1.1-2019.9.30* | 2018.1.1-2018.9.30* | |
| Cash flows from operating activities | ||
| Cash generated from operations | 1,283,538 | (2,191,311) |
| Interest paid | (150) | (151) |
| Income tax paid | (173) | (97,410) |
| Net cash inflow/(outflow) from operating activities | 1,283,215 | (2,288,872) |
| Cash flows from investing activities | ||
| Payment for property, plant and equipment ("PPE") | (1,242,287) | (869,822) |
| Purchase of financial assets at fair value through profit or loss | (6,500,000) | (6,703,000) |
| Other cash paid relating to investing activities | (10,205) | (15,447) |
| Proceeds from disposal of PPE | 3,000 | 2,179 |
| Proceeds from disposal of financial assets at fair value through profit or loss | 6,500,000 | 6,703,000 |
| Investment income from financial assets at fair value through profit or loss | 31,185 | 14,195 |
| Interest received | 155,742 | 146,676 |
| Other cash received from investing activities | 3,463 | 4,169 |
| Net cash outflow from investing activities | (1,059,102) | (718,050) |
| Cash flows from financing activities | ||
| Repayments of borrowings | (220) | (207) |
| Dividends paid to shareholders of the Company | (34,508) | (2,278,417) |
| Other cash paid relating to financing activities | (19) | (1,260) |
| Net cash outflow from financing activities | (34,747) | (2,279,884) |
| Net increase/(decrease) in cash and cash equivalents | 189,366 | (5,286,806) |
| Cash and cash equivalents at beginning of year | 7,616,880 | 11,137,723 |
| Effects of exchange rate changes | - | - |
| Cash and cash equivalents at end of period | 7,806,246 | 5,850,917 |
| * Unaudited financial indexes |
Board of DirectorsJiangling Motors Corporation, Ltd.October 23, 2019