Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
FAW JIEFANG GROUP CO., LTD.
Semi-annual Report 2023
August 2023
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
Section I Important Notes, Contents and DefinitionsThe Board of Directors and Board of Supervisors, as well as directors,supervisors and senior executives of the Company guarantee that the contentsof the semi-annual report are true, accurate and complete, there is no falserecord, misleading statement or major omission, and shall bear individual andjoint legal responsibilities.
Hu Hanjie, the person in charge of the Company, Ji Yizhi, the person incharge of accounting, and Si Yuzhuo, the person in charge of the accountingorganization (chief accountant) declare that they guarantee the authenticity,accuracy and completeness of the financial report in this semi-annual report.
Except for the following directors, others attended the board meeting toreview the semi-annual report in person
| Names of Directors not Present in Person | Positions of Directors not Present in Person | Reasons for not Present in Person | Name of the Trustee |
| Bi Wenquan | Director | Work | Liu Yanchang |
| Han Fangming | Independent director | Work | Mao Zhihong |
This semi-annual report involves prospective statements such as futureplans, and does not constitute a substantial commitment of the Company toinvestors. Investors and relevant individuals should maintain sufficient riskawareness and understand the differences between plans, forecasts, andcommitments.
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
The Company has described in detail the possible risks andcountermeasures for its future development in the section of ManagementDiscussion and Analysis. Investors are kindly requested to pay attention torelevant contents. China Securities Journal, Securities Times and CNINFO(http://www.cninfo.com.cn) are the information disclosure media selected bythe Company. All information of the Company is subject to that published inthe above selected media. Investors are kindly requested to pay attention toinvestment risks.
The Company does not plan to pay cash dividends or bonus shares, orconvert reserves into share capital.
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
Table of Contents
Section I Important Notes, Contents and Definitions ...... 2
SectionIICompany Profile and Main Financial Indicators ...... 7
Section III Management Discussion and Analysis ...... 11
Section IV Corporate Governance ...... 29
Section V Environmental and Social Responsibilities ...... 33
Section VI Important Matters ...... 45
Section VII Changes in Shares and Shareholders ...... 56
Section VIII Preferred Shares ...... 66
Section IX Bonds ...... 67
Section X Financial Report ...... 68
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
List of Documents for Future Reference(I) Financial statements were signed and sealed by the person in charge of theCompany, the person in charge of accounting and the person in charge of theaccounting organization (chief accountant).(II) Originals of all company documents and announcements publicly disclosed onthe website designated by China Securities Regulatory Commission in the reportingperiod.
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
Interpretation
| Item | Refers to | Definition |
| Company, the Company, FAW Jiefang | Refers to | FAW JIEFANG GROUP CO., LTD. |
| Jiefang Limited | Refers to | FAW Jiefang Automotive Co., Ltd. |
| FAW, FAW Group | Refers to | CHINA FAW GROUP CO., LTD. |
| FAW | Refers to | China FAW Co., Ltd. |
| FAW Car | Refers to | FAW Car Co., Ltd. |
| FAW Bestune | Refers to | FAW Bestune Car Co., Ltd. |
| Finance company | Refers to | First Automobile Finance Co., Ltd. |
| Board of Directors | Refers to | Board of Directors of FAW JIEFANG GROUP CO., LTD. |
| Shareholders’ meeting | Refers to | Shareholders’ Meeting of FAW JIEFANG GROUP CO., LTD. |
| Board of Supervisors | Refers to | Board of Supervisors of FAW JIEFANG GROUP CO., LTD. |
| SASAC | Refers to | State-owned Assets Supervision and Administration Commission of the State Council |
| CSRC | Refers to | China Securities Regulatory Commission |
| China Securities Depository and Clearing Corporation Limited (CSDC) | Refers to | Shenzhen Branch, China Securities Depository and Clearing Corporation Limited |
| Company Law | Refers to | Company Law of the People’s Republic of China |
| Securities Law | Refers to | Securities Law of the People's Republic of China |
| Articles of Association | Refers to | Articles of Association of FAW JIEFANG GROUP CO., LTD. |
| Reporting Period | Refers to | January 1, 2023 - June 30, 2023 |
| CNY, CNY 10,000, CNY 100 million | Refers to | CNY, CNY 10,000, CNY 100 million |
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
Section II Company Profile and Main Financial IndicatorsI. Company Profile
| Stock abbreviation | FAW Jiefang | Stock code | 000800 |
| Stock exchanges on which shares are listed | Shenzhen Stock Exchange | ||
| Chinese name of the Company | FAW JIEFANG GROUP CO., LTD. | ||
| Chinese abbreviation of the Company | FAW Jiefang | ||
| English name of the Company | FAW JIEFANG GROUP CO.,LTD | ||
| English abbreviation of the Company | FAW Jiefang | ||
| Legal representative of the Company | Hu Hanjie | ||
II. Contact Person and Contact Information
| Secretary of the Board of Directors | Securities Affairs Representative | |
| Name | Wang Jianxun | Yang Yuxin |
| Address | No. 2259, Dongfeng Street, Changchun Automobile Development Zone, Jilin Province | No. 2259, Dongfeng Street, Changchun Automobile Development Zone, Jilin Province |
| Tel. | 0431-80918881 0431-80918882 | 0431-80918881 0431-80918882 |
| Fax | 0431-80918883 | 0431-80918883 |
| faw0800@fawjiefang.com.cn | faw0800@fawjiefang.com.cn |
III. Other Information
1. Company Contact Information
Whether the registered address, office address and postal code, website and e-mail address of theCompany have changed in the reporting period
□ Applicable ?Not applicable
The registered address, office address and postal code, website and e-mail address of theCompany have not changed in the reporting period, please refer to the Annual Report 2022 fordetails.
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
2. Information Disclosure and Preparation Location
Whether the information disclosure and preparation location have changed in the reporting period
□ Applicable ?Not applicable
There are no changes in the name and website of the stock exchange and media where theCompany discloses its semi-annual report, as well as the preparation location of the Company'ssemi-annual report during the reporting period. For details, please refer to the 2022 Annual Report.
3. Other Relevant Data
Whether other relevant data has changed in the reporting period
□ Applicable ?Not applicable
IV. Main Accounting Data and Financial IndicatorsWhether the Company needs to retroactively adjust or restate the accounting data of previousyears
□ Yes ?No
| This Reporting Period | Same Period of Last Year | Increase/Decrease in This Reporting Period over the Same Period of Last Year | |
| Operating income (CNY) | 33,014,661,914.13 | 22,871,535,261.56 | 44.35% |
| Net profit attributable to shareholders of the listed company (CNY) | 401,336,302.35 | 170,153,887.32 | 135.87% |
| Net profit attributable to shareholders of the listed company after deducting non-recurring profits and losses (CNY) | 151,966,331.79 | -106,246,804.18 | 243.03% |
| Net cash flows from operating activities (CNY) | 6,714,159,377.47 | 1,443,137,726.63 | 365.25% |
| Basic earnings per share (CNY/share) | 0.0872 | 0.0366 | 138.25% |
| Diluted earnings per share (CNY/share) | 0.0872 | 0.0366 | 138.25% |
| Weighted average return on equity | 1.68% | 0.65% | Increased by 1.03% |
| At the End of This Reporting Period | At the End of Last Year | Increase/Decrease at the End of This Reporting Period over the End of Last Year | |
| Total assets (CNY) | 72,001,981,826.53 | 56,772,860,616.12 | 26.82% |
| Net assets attributable to shareholders of the listed company (CNY) | 24,127,040,019.35 | 23,719,427,082.48 | 1.72% |
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
V. Differences in Accounting Data under Domestic and Foreign Accounting Standards
1. Differences in net profits and net assets in the financial report disclosed simultaneouslyaccording to the international accounting standards and China accounting standards
□ Applicable ?Not applicable
In the reporting period of the Company, there is no difference in net profits and net assets in thefinancial report disclosed according to the international accounting standards and Chinaaccounting standards.
2. Differences in net profits and net assets in the financial report disclosed simultaneouslyaccording to foreign accounting standards and China accounting standards
□ Applicable ?Not applicable
In the reporting period of the Company, there is no difference in net profits and net assets in thefinancial report disclosed according to foreign accounting standards and China accountingstandards.VI. Items and Amounts of Non-recurring Profit and Loss?Applicable □ Not applicable
Unit: CNY
| Item | Amount | Description |
| Profits or losses on disposal of non-current assets (including the write-off part of the impairment provision of assets withdrawn) | 98,132,494.11 | It refers to the net profit on disposal of non-current assets. |
| Government subsidies included in the current profit and loss (except those closely related to the Company normal operations, conforming to the State policies and regulations and enjoyed persistently in line with certain standard quotas or quantities) | 193,604,585.44 | |
| Reversal of impairment provision for receivables subject to separate impairment test | 59,131.00 | It mainly refers to the reversal of impairment provision for receivables subject to separate impairment test. |
| Non-operating income and expenses other than the above items | 5,740,722.98 | They mainly refer to the net non-operating income and expenses |
| Less: amount affected by income tax | 48,166,962.97 | |
| Total | 249,369,970.56 |
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
Specific conditions of other profit and loss items meeting the definition of non-recurring profitand loss:
□ Applicable ?Not applicable
There are no specific conditions of profit and loss items meeting definition of non-recurring profitand loss for the Company.Explanation on defining the non-recurring profit and loss items listed in the ExplanatoryAnnouncement No. 1 on Information Disclosure by Companies Issuing Securities Publicly - Non-recurring Profit and Loss as recurring profit and loss items
□ Applicable ?Not applicable
The Company does not define the non-recurring profit and loss items listed in the ExplanatoryAnnouncement No. 1 on Information Disclosure by Companies Issuing Securities Publicly - Non-recurring Profit and Loss as recurring profit and loss items.
Section III Management Discussion and AnalysisI. Main Businesses of the Company in the Reporting Period(I) Main business
The Company is a commercial vehicle manufacturer integrating R&D, production, sales andservice. It produces heavy-duty, medium-duty and light-duty trucks, buses, as well as corecomponents such as engines, transmissions and axles, and has a complete manufacturing systemcovering raw materials, core components, key large assemblies and vehicles. The products of theCompany are mainly used in market segments such as traction, cargo carrying, dumping, specialpurposes, highway passenger transport, bus passenger transport, etc., and the Company alsoprovides standardized and customized commercial vehicle products. The Company is committedto becoming a "China's first and world-class" provider of green and intelligent transportationsolutions, focusing on the main product lines and insisting on innovation-driven and reform-driven, and leading the industry trend. Main business, products, and business model of theCompany are not changed significantly in the reporting period.(II) Industry situationIn the first half of 2023, according to the statistics of the China Association of AutomobileManufacturers, the production and sales of commercial vehicles reached 1,967,000 units and1,971,000 units respectively, with a year-on-year increase of 16.9% and 15.8% respectively. Themarket has recovered overall but to a limited extent. Consumption-related industries recoveredrapidly, and highway vehicles recovered relatively well. The growth rate of infrastructuredecreased, the real estate industry was in recession, and the overall demand for engineeringvehicles was sluggish. In addition, the overall excess capacity of the freight industry is stillobvious and is also the main reason for the current downturn in the commercial vehicle industry.
Data source: China Association of Automobile Manufacturers
(III) Operation
In the first half of 2023, the Company resolutely studied and implemented the spirit of the
thNational Congress of the Communist Party of China, continuously implemented theinstructions given by General Secretary Xi Jinping's important speech during his visit to FAW,actively focused on the strategic deployment and annual requirements of the Company, closelyfocused on key tasks, aimed at objectives of being at the forefront in the industry, and solidly andeffectively promoted various work. As of June 30, 2023, the total assets of the Companyamounted to CNY 72.002 billion, with a year-on-year increase of 26.82%, and the net assetsattributable to shareholders of listed companies were CNY 24.127 billion, with a year-on-yearincrease of 1.72%; During the reporting period, the operating income was CNY 33.015 billion,with a year-on-year increase of 44.35%.; The net profit attributable to the parent company wasCNY 401 million, with a year-on-year increase of 135.87%. A total of 131,500 vehicles were sold,up 31.23% year on year, including 112,300 medium- and heavy-duty trucks, up 31.75% year onyear, and 18,400 light-duty vehicles, up 22.90% year on year. The sales volume of new energyvehicles was 3,600, up 184.6% year-on-year, showing a leap. Overseas exports reached 27,100units, up 130.0% year-on-year, hitting a record high with a high growth trend.
Jan.Feb.Mar.Apr.MayJun.Jul.Aug.Sep.Oct.Nov.Dec.
Monthly Sales Volume of Commercial Vehicles
Year 2021Year 2022Year 2023(10,000 vehicles)
Unit: CNY 100 million
In the first half of 2023, the Company was rated as a "World-class Professional, Refined,Distinctive and Innovative Demonstration Enterprise" by the SASAC, and successfully selectedinto the list of "China ESG (Corporate Social Responsibility) Listed Company Pioneers 100". TheAnting Innovation Index has ranked first in the industry for six consecutive years, and its brandvalue has remained first in the industry for 12 consecutive years.
In the first half of 2023, the Company's key work is as follows:
1. Strategic leadership role played effectively. The insight, strategy and brandmanagement capabilities continued to improve, the strategic direction was further clarified, andkey topics were promoted in an orderly manner. Effective progress has been made in theimplementation of solutions. With the definition and connotation further clarified, a systematicsolution business and brand architecture have been formed.
2. Market-leading strategy as a guiding principle implemented effectively. Guided bythe goal of becoming a market leader, the Company has implemented the strategy of "Two Firstsand Two Increments", strengthened the advantages and complemented the weaknesses, focusedon the balanced development of each market segment, effectively reshaped the marketing ability,and achieved a substantial increase in overall sales volume. Leading in product development andaiming at advantage building, the Company launched a batch of more competitive products,providing stronger support for market development.
3. Fruitful innovation-driven results. The Company has made breakthroughs in more than30 key core technologies, applied for more than 800 patents (including more than 600 inventionpatents), and launched a number of technologies for the first time. The ammonia-hydrogen fusion
direct injection zero-carbon internal combustion engine was successfully ignited in the world forthe first time, showing strong technological innovation strength. The revenue scale of the "fourmajor sectors" of business innovation has steadily expanded, and the trend of building a newgrowth pole is improving.
4. Drive for reforms consolidated solidly. IPD and integrated reforms were promoted inan orderly manner, with the depth and coverage of reforms continuously expanded; project-basedmanagement was strengthened, and initial results in operation and management were achieved.Adhering to the principle of strengthening the company with talent, the Company introduced 600talents from various fields. Layered and categorized training empowerment, as well as theimplementation of incentive constraints such as performance-based agreements and competitivebidding effectively motivates the enthusiasm of all employees.
5. Five major fields tackled orderly. Ultimate cost reduction and expense reduction havebeen achieved, and steady improvement has been made in operational outcomes. The four-pillardesign of digital intelligence transformation has been further clarified and the dual-effect supportcapability has been upgraded. The maturity of the quality system has been further improved in thebackground of creating first-class quality competitiveness. Supply chain security has beenstrengthened, and lean production has been implemented. The layout of manufacturing resourceshas been optimized, the implementation of new bases in Guanghan and Foshan has beenaccelerated, and intelligent manufacturing and process technology capabilities continue toimprove.
6. Business operations supported by capital operation. The Company actively plannedand carried out the issuance of A-shares to specific objects, with a proposed total fundraisingamount of CNY 3.713 billion to provide strong support for R&D and investment in the new fourmodernization fields. It has completed the unlocking, listing, repurchase and cancellation ofshares related to more than 300 individuals in the equity incentive plan in a timely and compliantmanner; strengthened the management of 11 joint-stock enterprises, and achieved a totalinvestment income of CNY 233 million in the first half of the year; actively promoted equityinvestment projects to provide strong support for the rapid implementation of strategies such asnew energy, Internet of Vehicles, autonomous driving and aftermarket.
In the second half of the year, the Company will unwaveringly adhere to and strengthen the
leadership of the Communist Party, consistently implement the important instructions given byGeneral Secretary Xi Jinping during his visit to the Company, solidly promote the various tasks ofthematic education, firmly implement the Company's strategic deployment and the requirementsof the mid-year work conference. It will solidly work around the annual plan, focus on the keystage, firmly adhere to the leading development, accelerate strategic transformation, inherit thespirit of 70 years of struggle, promote the FAW Jiefang's culture of being at the forefront, enhancea sense of urgency and crisis, as well as enthusiasm and proactiveness. It will strive to completeall the tasks of party building and management for the year, compete vigorously, take onresponsibilities, and make every effort to lay a solid foundation for winning in the 14
thFive-YearPlan.II. Analysis of Core Competitiveness
The Company adheres to the corporate vision of "being the most proud commercialvehicle enterprise and the most trustworthy commercial vehicle brand", the mission of "becomingthe China's first and world-class provider of green and intelligent transportation solutions andbuilding a more prosperous society"; takes products and services as the main task, customers andemployees as the foundation, innovation and reform as the driving force; focuses on industrytrends and customer needs, and rapidly enhances product competitiveness and service levels.
1. Product R&D: The Company has seven product series, namely tractors, load carriers,dump trucks, special-purpose vehicles, new energy vehicles, light trucks and buses. The sixproduct platforms of FAW Jiefang J7, Yingtu, J6V, JH6, J6P and Hummer V cover four majorfields: heavy, medium and light trucks, and buses. The field of heavy trucks includes sevenproduct platforms: FAW Jiefang J7, Yingtu, JH6, J6V, J6P, JH5 and Han V. The field of mediumtrucks includes FAW Jiefang J6G, J6L, JK6 and Long V product platforms. The field of lighttrucks includes five product platforms: LINKTOUR, Tiger 6G, J6F, Tiger V and pure electricmini-truck. The field of buses includes conventional road vehicles, new energy road vehicles, newenergy buses and off-road motor homes. Facing the future, FAW Jiefang is also accelerating theoverall layout of new energy and intelligent vehicles. In terms of new energy, it has launched J6Ppure electric dump trucks, JH6 pure electric tractors, J6L fuel cell carrier trucks, J6P hybridtractors and other new energy products to strive to create a clean and efficient portfolio of pure
electric, hybrid and hydrogen fuel cell vehicles. In terms of intelligent vehicles, it has launchedmass-produced J6V_L2+ and J6V supertrucks for high-speed trunk line scenarios, and created anumber of L4 intelligent special products for ports, sanitation, border crossings and otherscenarios, leading the world. With its technological performance and excellent quality of "safety,reliability, energy efficiency, comfort, and efficiency," Jiefang trucks have gained the trust of avast number of users and are praised as "money-making machines".
2. Technology R&D: It boasts the most powerful independent R&D system. Guided by"leading technology, pioneering experience, integrated innovation, enhanced application,collaboration and efficiency", the Company has built a strong and complete independent R&Dsystem in China from foresight technology, engine, transmission and axle to vehicle, and formedan efficient and collaborative R&D team of nearly 3000 people. With the five core capabilities,including scientific and technological innovation, lean design, performance development, trialproduction verification and experimental verification, the Company has created five technicalplatforms with low carbonization, informatization, intelligence, electrification and high quality,and has become one of the commercial vehicle enterprises mastering the core technologies ofworld-class vehicles and three power assemblies, and passed ISO9001, IATF16949 and GB9001Bquality system certifications. It is also a national-level independent automobile product R&D andtest certification base. In recent years, by accurately understanding the demand in segmentedmarkets, the Company has successfully developed ten core product technology advantagesincluding fuel efficiency, extended oil change intervals, lightweight design, independent majorcomponents, autonomous electronic control, autonomous after-treatment, new energy, intelligentdriving, long-term durability, and maintenance-free features. These achievements have enabledthe Company to maintain a leading position in the highly competitive market.
3. Production and manufacturing: The Company has a complete manufacturing systemfrom raw materials to core components, from key assemblies to vehicles, and its processing andmanufacturing depth ranks among the industry leaders. The Company has five vehicle bases inChangchun, Qingdao, Chengdu/Guanghan, Liuzhou and Foshan, three assembly bases inChangchun, Wuxi and Dalian, and five new business companies, including FOR.J, SmartLink,Zhito, Jiefang Shidai, and Diyi Yuansu. In 2022, FAW Jiefang J7 Intelligent Factory was selectedby the Ministry of Industry and Information Technology as a pilot and demonstration project for
the development of big data industry.
4. Marketing and procurement: Adhering to the customer value orientation, the Companyhas taken the lead in establishing a marketing service system with complete functions. Themarketing service network composed of more than 900 dealers, more than 1,000 service providers,more than 60 spare parts centers and more than 100 spare parts dealers covers more than 260prefecture-level cities in China, with a coverage rate of 99% in cities with a capacity of more than1,000 vehicles. With a national average service radius of 48 kilometers, it is at the leading level inthe industry and provides users with 24-hour efficient and high-quality services. The Company iscommitted to integrating global high-quality resources to provide a strong guarantee for the highreliability of Jiefang trucks. In recent years, the Company has signed contracts with topenterprises at home and abroad successively, including Huawei, Knorr-Bremse, ZF, Shell, VOSS,China Unicom, JD and PlusAI, to become strategic partners and establish joint ventures withthem.
5. Overseas: The Company has actively accelerated the pace of internationalization andexpanded overseas markets. It exports its products to 80 countries and regions such as SoutheastAsia, Middle East, Latin America, Africa and Eastern Europe; it has nearly 80 first-tier dealersand nearly 300 distributors in nearly 40 countries and regions around the world. Its exportproducts include J6, JH6, Tiger V and other models.III. Analysis of Main BusinessGeneralSee relevant contents of "I. Main Businesses of the Company in the Reporting Period".Year-on-year Changes of Main Financial Data
Unit: CNY
| This Reporting Period | Same Period of Last Year | Year-on-year Increase and Decrease | Reason for Change | |
| Operating income | 33,014,661,914.13 | 22,871,535,261.56 | 44.35% | Mainly due to the increase in sales volume in the current period. |
| Operating costs | 30,590,523,778.02 | 21,115,050,469.61 | 44.88% | Mainly due to the increase in sales volume in the current period. |
| Sales expenses | 774,822,818.33 | 566,490,728.82 | 36.78% | Mainly due to the increase in sales volume in the current period. |
| Administrative expenses | 871,161,062.92 | 887,020,116.52 | -1.79% | |
| Financial expenses | -415,663,432.06 | -571,153,971.08 | -27.22% | |
| Income tax expenses | -203,065,319.73 | -171,674.50 | -118,185.08% | Mainly due to the decrease in income tax. |
| R&D investment | 1,248,047,703.54 | 1,016,316,222.64 | 22.80% | |
| Net cash flows from operating activities | 6,714,159,377.47 | 1,443,137,726.63 | 365.25% | Mainly due to the increase in cash received from sales of goods and rendering of services in the current period. |
| Net cash flows from investment activities | -961,691,276.91 | -674,634,455.38 | -42.55% | Mainly due to an increase in cash paid on investments during the period |
| Net cash flows from financing activities | -19,709,605.31 | -3,041,097,420.19 | 99.35% | Mainly due to the unpaid cash dividends in the current period. |
| Net increase in cash and cash equivalents | 5,732,768,748.83 | -2,272,594,148.94 | 352.26% | Mainly due to the increase in cash received from sales of goods and rendering of services in the current period. |
| Accounts receivable | 2,834,227,703.58 | 867,090,338.42 | 226.87% | Mainly due to the increase in accounts receivable in the current period. |
| Accounts receivable financing | 8,679,460,881.09 | 3,461,653,473.66 | 150.73% | Mainly due to the increase in bank acceptance bills held at the end of the period. |
| Long-term deferred expenses | 42,793.98 | 130,439.66 | -67.19% | Mainly due to the decrease of long-term deferred |
| expenses in the current period. | ||||
| Notes payable | 16,487,079,559.64 | 9,198,593,038.03 | 79.23% | Mainly due to the increase in notes payable in the current period. |
| Accounts payable | 17,632,426,555.29 | 10,033,608,668.06 | 75.73% | Mainly due to the increase in accounts payable in the current period. |
| Advance receipts | 785,227.42 | 1,861,865.37 | -57.83% | Mainly due to the decrease of rent received in advance in the current period. |
| Employee compensation payable | 608,021,510.57 | 436,648,178.76 | 39.25% | Mainly due to the increase in employee compensation payable in the current period. |
| Treasury shares | 175,297,320.84 | 267,837,184.11 | -34.55% | Mainly due to the repurchase and cancellation of equity incentive shares in the current period. |
| Investment income | 133,617,879.87 | 203,908,916.41 | -34.47% | Mainly due to the decrease of investment income recognized in the current period. |
| Credit impairment loss | -35,480,726.08 | -21,826,743.35 | -62.56% | Mainly due to the increase in impairment provision of receivables in the current period. |
| Asset impairment loss | -35,324,171.95 | -85,344,746.96 | 58.61% | Mainly due to the decrease in impairment provision of inventories in the current period. |
| Income from assets disposal | 98,132,494.11 | 42,431.19 | 231174.43% | Mainly due to the increase in income from disposal of assets in the current period. |
| Non-operating income | 9,542,486.79 | 104,058,106.26 | -90.83% | Mainly due to the decrease in non-operating income in the current period. |
| Non-operating expenses | 3,801,763.81 | 12,214,234.59 | -68.87% | Mainly due to the decrease of donation expenditure in the current period. |
| Net after-tax amount of other comprehensive income | 250,455.89 | -44,893.81 | 657.89% | Mainly due to the increase in other comprehensive income in the current period. |
Significant changes in the Company's profit composition or source during the reporting period
□ Applicable ?Not applicable
No significant changes in the Company's profit composition or source during the reporting period.
Composition of operating income
Unit: CNY
| This Reporting Period | Same Period of Last Year | Year-on-year Increase and Decrease | |||||
| Amount | Proportion in Operating Income | Amount | Proportion in Operating Income | ||||
| Total operating income | 33,014,661,914.13 | 100% | 22,871,535,261.56 | 100% | 44.35% | ||
| By industries | |||||||
| Automobile industry | 33,014,661,914.13 | 100.00% | 22,871,535,261.56 | 100.00% | 44.35% | ||
| By products | |||||||
| Commercial vehicles | 30,708,282,078.93 | 93.01% | 20,573,298,027.59 | 89.95% | 49.26% | ||
| Spare parts and others | 2,306,379,835.20 | 6.99% | 2,298,237,233.97 | 10.05% | 0.35% | ||
| By regions | |||||||
| Northeast China, North China, Northwest China and Southwest China | 17,861,002,372.03 | 54.10% | 11,576,136,202.31 | 50.61% | 54.29% | ||
| East China, South China and Central China | 15,153,659,542.10 | 45.90% | 11,295,399,059.25 | 49.39% | 34.16% | ||
Information on industries, products or regions accounting for more than 10% of the Company'soperating income or operating profit?Applicable □ Not applicable
Unit: CNY
| Operating Income | Operating Costs | Gross Profit Rate | Increase/Decrease of Operating Income over the Same Period of Last Year | Increase/Decrease of Operating Cost over the Same Period of Last Year | Increase/Decrease of Gross Profit Rate over the Same Period of Last Year | |
| By industries | ||||||
| Automobile industry | 32,139,093,286.21 | 29,929,907,291.11 | 6.87% | 47.39% | 48.02% | Decreased by 0.40% |
| By products | ||||||
| Vehicle | 30,708,282,078.93 | 28,599,271,268.32 | 6.87% | 49.26% | 49.83% | Reduced by 0.35% |
| Spare parts and others | 1,430,811,207.28 | 1,330,636,022.79 | 7.00% | 16.14% | 17.43% | Reduced by 1.02% |
| By regions | ||||||
| Northeast China, North China, Southwest China and Northwest China | 17,387,317,880.55 | 16,194,263,678.95 | 6.86% | 57.54% | 57.44% | Increased by 0.06% |
| East China, South China and Central China | 14,751,775,405.66 | 13,735,643,612.16 | 6.89% | 36.99% | 38.27% | Reduced by 0.86% |
The main business data of the Company adjusted at the end of the latest reporting period if thestatistical caliber of the Company's main business data is adjusted in the reporting period
□ Applicable ?Not applicable
IV. Analysis of Non-main Business
□ Applicable ?Not applicable
V. Analysis of Assets and Liabilities
1. Major changes in asset composition
Unit: CNY
| At the End of This Reporting Period | End of Last Year | Increase/Decrease in Proportion | Description of Major Changes | |||
| Amount | Proportion in Total Assets | Amount | Proportion in Total Assets | |||
| Monetary capital | 26,737,335,999.70 | 37.13% | 21,041,473,417.71 | 37.06% | 0.07% | |
| Accounts receivable | 2,834,227,703.58 | 3.94% | 867,090,338.42 | 1.53% | 2.41% | |
| Contract assets | 19,838,584.22 | 0.03% | 11,129,624.75 | 0.02% | 0.01% | |
| Inventories | 7,831,442,068.22 | 10.88% | 6,382,739,897.83 | 11.24% | -0.36% | |
| Investment properties | 75,871,489.04 | 0.11% | 80,647,597.48 | 0.14% | -0.03% | |
| Long-term equity investments | 5,639,466,464.29 | 7.83% | 4,692,648,635.84 | 8.27% | -0.44% | |
| Fixed assets | 9,728,773,885.88 | 13.51% | 9,612,922,810.28 | 16.93% | -3.42% | |
| Project under construction | 1,680,851,141.66 | 2.33% | 1,902,143,354.11 | 3.35% | -1.02% | |
| Right-of-use assets | 167,591,959.38 | 0.23% | 198,220,342.59 | 0.35% | -0.12% | |
| Contract liabilities | 1,618,103,749.23 | 2.25% | 1,629,524,704.35 | 2.87% | -0.62% | |
| Lease liabilities | 48,808,071.74 | 0.07% | 54,814,603.06 | 0.10% | -0.03% | |
2. Main overseas assets
□ Applicable ?Not applicable
3. Assets and liabilities measured at fair value
□ Applicable ?Not applicable
4. Restrictions on asset rights as of the end of the reporting periodFor details, please refer to Note 61 "Assets with restricted ownership or use right" in part VII"Notes to Items in Consolidated Financial Statements" of Section X - Financial Report.
VI. Investment Analysis
1. Overall situation
?Applicable □ Not applicable
| Investment Amount in the Reporting Period (CNY) | Investment Amount in the Same Period of Previous Year (CNY) | Variation range |
| 725,139,697.94 | 0.00 | 100.00% |
2. Major equity investments acquired in the reporting period?Applicable □ Not applicable
Unit: CNY
| Name of Investee Company | Main business | Investment method | Investment amount | Share proportion | Capital source | Partners | Investment horizon | Product type | Progress as of Balance Sheet Date | Estimated Revenue | Profit and Loss of Investment in the Current Period | Involved in Litigation or not | Date of Disclosure | Disclosure Index |
| Changchun Automotive Test Center Co., Ltd. | Automobile testing services, etc. | Capital increase | 670,872,897.94 | 14.63% | Own Funds | CHINA FAW GROUP CO., LTD. | Long-term | Testing services | Delivery completed | — | 6,235,810.40 | No | December 16, 2022 | http://www.cninfo.com.cn/new/disclosure/detail?orgId=gssz0000800&announcementId=1215367764&announcementTime |
| Total | -- | -- | 670,872,897.94 | -- | -- | -- | -- | -- | -- | — | 6,235,810.40 | -- | -- | -- |
3. Major non-equity investments in progress in the reporting period
□ Applicable ?Not applicable
4. Financial assets investment
(1) Securities investment
□ Applicable ?Not applicable
The Company has no securities investment in the reporting period.
(2) Derivatives investment
□ Applicable ?Not applicable
The Company has no derivative investment in the reporting period.
5. Use of raised funds
□ Applicable ?Not applicable
The Company does not use raised funds in the reporting period.VII. Sales of Major Assets and Equity
1. Sale of major assets
□ Applicable ?Not applicable
The Company does not sell major assets in the reporting period.
2. Sale of major equity
□ Applicable ?Not applicable
VIII. Analysis on Principal Holding and Joint-stock Companies?Applicable □ Not applicableMajor subsidiaries and joint-stock companies affecting over 10% net profit of the Company
Unit: CNY
| Company Name | Company Type | Main business | Registered Capital | Total Assets | Net Assets | Operating income | Operating Profit | Net Profit |
| FAW Jiefang Automotive Co., Ltd. | Subsidiaries | Development, manufacturing and sales of vehicles and parts | CNY 10,803,012,500 | 67,414,636,416.24 | 19,720,204,035.96 | 33,014,661,914.13 | -39,373,044.91 | 169,432,997.80 |
| First Automobile Finance Co., Ltd. | Joint-stock companies | Handling of financial business within the Group and other financial businesses approved by the People's Bank of China | CNY 10,000,000,000 | 143,985,892,114.85 | 21,773,133,729.59 | 3,209,535,678.73 | 1,548,095,240.57 | 1,165,863,071.10 |
Acquisition and disposal of subsidiaries in the reporting period
□ Applicable ?Not applicable
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IX. Structured Entities Controlled by the Company
□ Applicable ?Not applicable
X. Risks Faced by the Company and Countermeasures(I) Market change risk
Description: The international situation is becoming increasingly complex, and thecompetition situation in the commercial vehicle market remains unchanged. Foreign automobileenterprises have stepped up their layout in the domestic market, and the wait-and-see mood ofdomestic commercial vehicle consumption has increased. At the same time, leading domestictruck enterprises are making efforts to compete in the export market, and the overseas competitionfor commercial vehicles is becoming increasingly fierce. Under the mutual influence of manyconditions, the Company faces certain market change risks.Countermeasures: Take a customer-oriented approach, actively go deep into terminals,identify market opportunities, and seize terminal needs. Introduce new products in line withmarket changes in due course, actively upgrade products, explore market segments, formulatemore competitive policies at the same time, and seek domestic market increment. Fully deployoverseas markets, accelerate product introduction, create "high-end, medium-end and low-end"product portfolios, and enhance the competitiveness of overseas commodities; based on theprinciple of brand promotion, cooperate with key markets to carry out a series of activities tocontinuously improve the overseas influence of Jiefang brand; consolidate existing overseasadvantages and basic capabilities such as channels, services, and finance, comprehensively buildan overseas marketing system, and promote the achievement of overseas strategic objectives.(II) Industry competition riskDescription: The overall output and sales volume of the new energy vehicle market aregrowing rapidly, albeit at a pace slower than before, but still much higher than the overall growthrate of the automobile market. Affected by the overall market environment, the competition in thecommercial vehicle industry is becoming increasingly severe. The penetration rate of new energycommercial vehicles continues to rise, intensifying competition among competitors. Additionally,with the continuous improvement of research and development capabilities in the new energy
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field, the Company needs to take measures to address the impact of industry competition in thisenvironment.
Countermeasures: Explore market demand, focus on the advantages of energy conservationand reliability, develop key products, and build product competitiveness; deeply study new energycore technologies, improve the layout of new energy assembly products, and enhance thecompetitiveness of new energy core assemblies; continuously improve the new energy industrialchain through industry insight and accelerate the development of new energy ecosystem.(III) Risk of raw material price fluctuationDescription: Affected by geographical conflicts, global inflation, repeated expectations of theFederal Reserve for interest rate hikes and other factors, the commodity market is constantlydisturbed; sluggish domestic demand for raw materials such as steel, coupled with highproduction costs and compressed profit margins for some raw material producers, causescontinuous fluctuations in raw material prices, which will have a certain impact on the Company.
Countermeasures: Strengthen the collection of market and policy information, study andjudge the scope and degree of impact of price fluctuations of key raw materials, and adjustprocurement strategies in a timely manner; optimize raw material procurement costs by improvingmanagement mechanisms; continuously improve supply resources to ensure that the number ofsuppliers meets supply requirements.
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Section IV Corporate GovernanceI. Information on Annual Shareholders' Meeting and Extraordinary Shareholders'Meeting Held in the Reporting Period
1. Shareholders' meeting in the reporting period
| Session | Meeting Type | Participation Ratio of Investors | Date of Meeting | Date of Disclosure | Meeting Resolution |
| First extraordinary shareholders' meeting of 2023 | Extraordinary shareholders' meeting | 84.91% | March 2, 2023 | March 3, 2023 | The Proposal on Repurchase and Cancellation of Partial Restricted Shares in the Phase I Restricted Share Incentive Plan, the Proposal on Change of Registered Capital of the Company, the Proposal on Amending the Articles of Association, the Proposal on Estimated Daily Related Transaction Amount in 2023, the Proposal on Signing a Financial Service Framework Agreement with First Automobile Finance Co., Ltd., and the Proposal on Estimated Financial Business Amount with First Automobile Finance Co., Ltd. in 2023 were deliberated and approved. |
| 2022 Annual shareholders' meeting | Annual shareholders' meeting | 83.95% | April 24, 2023 | April 25, 2023 | The 2022 Work Report of the Board of Directors, the 2022 Work Report of the Board of Supervisors, the 2022 Financial Statements, the 2022 Annual Report and Summary Thereof, the 2022 Profit Distribution Plan, the Proposal on Unsuccessful Lifting of Conditions of the Second Release Period First Granted by the Phase I Restricted Share Incentive Plan for Releasing the Restricted Sales and of Conditions of the First Release Period |
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Reserved by the Phase I RestrictedShare Incentive Plan for Releasingthe Restricted Sales andRepurchase and Cancellation ofSome Restricted Shares, theProposal on Change of RegisteredCapital of the Company, theProposal on Amending the Articlesof Association, the Proposal onElection of Non-employeeRepresentative Supervisors of the
th
Board of Supervisors at theGeneral Meeting of the Board ofSupervisors, the Proposal onElection of Non-independentDirectors of the 10
th
Board ofDirectors at the General Meetingof the Board of Directors, and theProposal on Election ofIndependent Directors of the 10
th
Board of Directors at the GeneralMeeting of the Board of Directorswere deliberated and approved.
2. Preferred shareholders with resumed voting rights request to convene an extraordinaryshareholders' meeting
□ Applicable ?Not applicable
II. Changes in Directors, Supervisors and Senior Executives of the Company
□ Applicable ?Not applicable
The directors, supervisors and senior executives of the Company have not changed during thereporting period. Please refer to the 2022 Annual Report for details.III. Profit Distribution and Transfer from Capital Reserve to Share Capital in the ReportingPeriod
□ Applicable ?Not applicable
The Company does not plan to pay cash dividends or bonus shares, or convert reserves into sharecapital in the first half of the year.
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IV. Implementation of the Company's Equity Incentive Plan, Employee Stock OwnershipPlan or Other Employee Incentive Measures?Applicable □ Not applicable
1. Equity incentive
(1) On October 28, 2022, the Company held the 28
th
Meeting of the 9
thBoard of Directorsand the 24th Meeting of the 9
thBoard of Supervisors respectively to deliberate and approve theProposal on Repurchase and Cancellation of Partial Restricted Shares in the Phase I RestrictedShare Incentive Plan. The Proposal was subsequently deliberated and approved at the 3
rdExtraordinary Shareholders’ Meeting of the Company in 2022. It was agreed to repurchase andcancel a total of 1,359,247 restricted stocks, either in full or in part, that were granted but not yetreleased from restrictions to the original 11 incentive recipients; on January 17, 2023, TheCompany issued the Announcement on Completion of Repurchase and Cancellation of SomeRestricted Shares on CNINFO (http://www.cninfo.com.cn).
(2) On December 15, 2022, the Company held the 30
th meeting of the 9
thBoard of Directorsand the 26
th meeting of the 9
th
Board of Supervisors respectively to deliberate and approve theProposal on the Achievement of Unlocking Conditions in the First Release Period of theRestricted Shares Firstly Granted in the Phase I Restricted Incentive Plan, agreeing that theCompany handled the unlocking of 13,042,347 shares of 311 incentive objects meeting theunlocking conditions during the first release period of restricted shares granted for the first time inaccordance with the relevant provisions of the restricted share incentive plan. On February 3,2023, the Company disclosed the Indicative Announcement on Listing and Circulation ofUnlocked Shares in the First Release Period of the Restricted Shares Firstly Granted in the PhaseI Restricted Share Incentive Plan on CNINFO (http://www.cninfo.com.cn), and the unlockedrestricted shares will be listed and circulated on February 6, 2023. On April 28, 2023, theCompany issued the Announcement on Completion of Repurchase and Cancellation of SomeRestricted Shares on CNINFO (http://www.cninfo.com.cn)).
(3) On March 31, 2023, the Company held the 32
nd meeting of the 9
thBoard of Directors andthe 28
th meeting of the 9
thBoard of Supervisors respectively, deliberated and approved theProposal on Unsuccessful Lifting of Conditions of the Second Release Period First Granted by
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the Phase I Restricted Share Incentive Plan for Releasing the Restricted Sales and of Conditionsof the First Release Period Reserved by the Phase I Restricted Share Incentive Plan for Releasingthe Restricted Sales and Repurchase and Cancellation of Some Restricted Shares, agreeing torepurchase and cancel 327 restricted shares of incentive objects that do not meet the releaseconditions. The total number of shares repurchased was 13,909,890. The Proposal was deliberatedand approved at the Company's 2022 Annual Shareholders’ Meeting held on April 24, 2023. OnJune 30, 2023, the Company issued the Announcement on Completion of Repurchase andCancellation of Some Restricted Shares on CNINFO (http://www.cninfo.com.cn).
(4) On April 27, 2023, the Company held the 2
nd meeting of the 10
thBoard of Directors andthe 2nd meeting of the 10
th
Board of Supervisors respectively to deliberate and approve theProposal on Lifting the Trading Restrictions of Partial Restricted Shares. A total of 4 incentiveobjects met the conditions for lifting the trading restrictions this time, and 64,954 shares werelifted. On May 15, 2023, the Company issued the Prompt Announcement on Lifting SalesRestrictions and Listing Circulation of Partial Restricted Shares on CNINFO(http://www.cninfo.com.cn), and the unlocked restricted shares were listed and circulated on May16, 2023.For details of the above proposals, please refer to the relevant announcements published by the Company inSecurities Times, China Securities Journal and CNINFO (http://www.cninfo.com.cn).
2. Implementation of employee stock ownership plan
□ Applicable ?Not applicable
3. Other employee incentives
□ Applicable ?Not applicable
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Section V Environmental and Social ResponsibilitiesI. Major Environmental Protection IssuesWhether the listed company and its subsidiaries are key pollutant discharging entities announcedby the environmental protection authority?Yes □ NoEnvironmental protection related policies and industry standards
The Company strictly abides by the Environmental Protection Law of the People's Republicof China, the Law of the People's Republic of China on Prevention and Control of AtmosphericPollution, the Law of the People's Republic of China on Prevention and Control of NoisePollution, the Law of the People's Republic of China on Prevention and Control of Soil Pollution,the Law of the People's Republic of China on Prevention and Control of Water Pollution,the Law of the People's Republic of China on the Prevention and Control of AtmosphericPollution, the Environmental Protection Tax Law of the People's Republic of China, the Measuresfor the Administration of the List of Key Units of Environmental Supervision, the Measures for theAdministration of Legal Disclosure of Environmental Information of Enterprises, the Measuresfor the Administration of Hazardous Waste Transfer and other relevant laws and regulations, aswell as national and industrial standards such as the Integrated Wastewater Discharge Standard(GB8978-1996), the Integrated Emission Standard of Air Pollutants (GB16297-1996), theStandard for Pollution Control on Hazardous Waste Storage (GB 18597-2023), the TechnicalGuidelines for Environmental Impact Assessment - Acoustic Environment, the TechnicalGuideline for Deriving Hazardous Waste Management Plans and Records (HJ 1259-2022), theTechnical Specification for Pollution Control of Waste Plastics and the Technical Specificationsfor Acceptance of Environmental Protection Facilities for Completed Construction Projects -Automotive Industry (HJ 407-2021).Administrative licensing for environmental protectionThe Company strictly implemented the "Environmental Impact Assessment" and "ThreeSimultaneities" systems for all projects. All key pollutant discharging entities shall apply for
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pollutant discharge permits according to legal provisions, and strictly implement the pollutantdischarge permit system.
| S/N | Name of Unit | Application (Renewal) Date of Pollutant Discharge Permit | Pollutant Discharge Permit No. | Validity Period (Year) |
| 1 | Truck Factory of FAW Jiefang Automotive Co., Ltd | December 30, 2022 | 91220101743028725R | 5 |
| 2 | Chengdu Branch of FAW Jiefang Automotive Co., Ltd. | July 14, 2022 | 91510114746407720B001V | 5 |
| 3 | Transmission Branch (Transformation Factory) of FAW Jiefang Automotive Co., Ltd. | December 31, 2021 | 91220101571131661N001Q | 5 |
| 4 | Transmission Branch (Axle Factory) of FAW Jiefang Automotive Co., Ltd. | December 31, 2021 | 91220101571131661N002V | 5 |
| 5 | Changchun Intelligent Bus Branch of FAW Jiefang Automotive Co., Ltd. | January 8, 2023 | 91220108MA170MRB74001V | 5 |
| 6 | FAW Jiefang (Qingdao) Automotive Co., Ltd. | December 31, 2019 | 91370200163567343M | 5 |
| 7 | Engine Branch of FAW Jiefang Automotive Co., Ltd. | December 8, 2022 | 912201017561635719001Q | 5 |
| 8 | Wuxi Diesel Engine Works of FAW Jiefang Automotive Co., Ltd. | December 10, 2021 | 91320206330969017N001C | 5 |
| 9 | Wuxi Diesel Engine Huishan Factory of FAW Jiefang Automotive Co., Ltd. | June 19, 2023 | 91320200748159222H001C | 5 |
| 10 | FAW Jiefang Dalian Diesel Engine Co., Ltd. | October 9, 2022 | 91210213717880308K001U | 5 |
Industry Emission Standards and Specific Conditions of Pollutant Discharge Involved inProduction and Operation Activities
| Name of Company or Subsidiary | Types of Main Pollutants and Specific Pollutants | Names of Main Pollutants and Specific Pollutants | Discharge Mode | Number of Discharge Outlets | Distribution of Discharge Outlets | Discharge concentration/intensity | Enforced pollutant discharge standard | Total Discharge | Total Approved Discharge | Excessive Discharge |
| Truck Factory of FAW Jiefang Automotive Co., Ltd | Wastewater | COD | Continuous or intermittent discharge of | 4 | One for frame, cab and non-metal coating | 137.6mg/L | 800mg/L | 12.7465 t | 630.104 t | No excessive discharge |
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| wastewater | respectively, and one for general domestic sewage outlet | |||||||||
| Exhaust gas | Non-methane hydrocarbon | Continuous discharge during waste gas production | 71 | Frame, cab, roof of non-metallic coating workshop | 2.59mg/m? | 120mg/m? | 43.3168 t | 335.4 t | No excessive discharge | |
| Chengdu Branch of FAW Jiefang Automotive Co., Ltd. | Wastewater | COD | Intermittent discharge | 1 | Southeast of the Company | 48.33mg/L | 500mg/L | 0.2033 t | 21.3 t | No excessive discharge |
| Exhaust gas | Non-methane hydrocarbon | Continuous discharge during waste gas production | 1 | Roof of coating workshop | 7.27mg/m? | 60mg/m? | 11.6249 t | 75.91 t | No excessive discharge | |
| Transmission Branch (Transformation Factory) of FAW Jiefang Automotive Co., Ltd. | Wastewater | COD | Intermittent discharge of wastewater | 2 | One in the northwest corner of substation one workshop and one in the southwest corner of substation two workshop | 19mg/L | 500mg/L | 0.8456 t | 10 t | No excessive discharge |
| Exhaust gas | Non-methane hydrocarbon | Continuous discharge during waste gas production | 5 | Four for No. 1 workshop and one for the south side outside No. 1 workshop | 8.4mg/m? | 120mg/m? | 1.2359 t | - | No excessive discharge | |
| Transmission Branch (Axle Factory) of FAW Jiefang Automotive Co., Ltd. | Wastewater | COD | Intermittent discharge | 6 | Two for No. 1, No. 2 and No. 3 workshops respectively | 21mg/L | 500mg/L | 1.2801 t | - | No excessive discharge |
| Exhaust | Non-methane | Continuous | 20 | Eight for | 0.7mg/ m? | 120mg/m? | 7.0542 t | - | No |
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| gas | hydrocarbon | discharge during waste gas production | No. 1 workshop, seven for No. 2 workshop, and five for No. 3 workshop | excessive discharge | ||||||
| Changchun Intelligent Bus Branch of FAW Jiefang Automotive Co., Ltd. | Wastewater | COD | Intermittent discharge of wastewater | 1 | South gate of sewage treatment station | 66.68mg/L | 500mg/L | 0.6959 t | 4.575 t | No excessive discharge |
| Exhaust gas | Non-methane hydrocarbon | Continuous discharge during waste gas production | 12 | Roof of coating and welding workshop of the Company | 4.18mg/m? | 120mg/m? | 4.6084 t | 49.5 t | No excessive discharge | |
| Engine Branch of FAW Jiefang Automotive Co., Ltd. | Exhaust gas | Non-methane hydrocarbon | Intermittent discharge of waste gas | 3 | Workshop roof | 1.44mg/m? | 120 mg/m? | 0.0206 t | - | No excessive discharge |
| Wuxi Diesel Engine Works of FAW Jiefang Automotive Co., Ltd. | Wastewater | COD | Continuous discharge | 3 | One for west gate and two for south gate | 44mg/L | 500mg/L | 18.3 t | 243 t | No excessive discharge |
| Exhaust gas | Nitrogen oxides, smoke and non-methane hydrocarbons | Continuous discharge during production | 12 | Three for assembly workshop, five for the R&D Department, two for QA Department, two for processing workshop and one for hazardous waste warehouse | 95.2 mg/m? for nitrogen oxide, 2.8 mg/m? for non-methane hydrocarbon | 200 mg/m? for nitrogen oxide, 60 mg/m? for non-methane hydrocarbon | 12.29 t for nitrogen oxide, 0.15 t for VOCs | 27.2 t for nitrogen oxide, 1.77 t for VOCs | No excessive discharge | |
| Wuxi Diesel Engine Huishan Factory of FAW Jiefang Automotive | Wastewater | COD | Continuous discharge | 1 | One for north gate | 60mg/m? | 500mg/m? | 3.1 t | 53.58 t | No excessive discharge |
| Exhaust gas | Nitrogen oxide, non- | Continuous discharge | 6 | Joint workshop | 111 mg/m? for nitrogen oxide, 6.76 | 200 mg/m? for nitrogen | 1.91 t for nitrogen | 8.48 t for nitrogen | No excessive |
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| Co., Ltd. | methane hydrocarbon | during production | mg/m? for non-methane hydrocarbon | oxide, 60 mg/m? for non-methane hydrocarbon | oxide, 0.13 t for VOCs | oxide, 1.62 t for VOCs | discharge | |||
| FAW Jiefang (Qingdao) Automotive Co., Ltd. | Wastewater | COD, ammonia nitrogen | Continuous or intermittent discharge of wastewater | 6 | Outside the sewage treatment station of the Company | COD: 79.7 mg/L Ammonia nitrogen: 7.72 mg/L | COD: 500 mg/L; ammonia nitrogen: 45 mg/L | COD: 11.62 t; Ammonia nitrogen: 0.9914 t | COD: 88.79 t; Ammonia nitrogen: 5.11 t | No excessive discharge |
| Exhaust gas | Non-methane hydrocarbon | Continuous discharge during waste gas production | 81 | Roof of each workshop of the Company | 2.87 g/m? | 30mg/m? | 27.13 t | 164.98 t | No excessive discharge | |
| FAW Jiefang Dalian Diesel Engine Co., Ltd. | Wastewater | COD, ammonia nitrogen | Continuous or intermittent discharge of wastewater | 1 | Outside the sewage treatment station of the Company | COD:41 mg/L Ammonia nitrogen: 4.8 mg/L | COD: 300 mg/L; ammonia nitrogen: 30 mg/L | COD: 1.796 t; ammonia nitrogen: 0.3534 t | COD: 88.79 t; ammonia nitrogen: 5.11 t | No excessive discharge |
| Exhaust gas | Non-methane hydrocarbon and nitrogen oxide | Continuous discharge during waste gas production | 5 | Roof of the Company's workshop | Non-methane hydrocarbon: 0.33 mg/m?; nitrogen oxide: 88 mg/m? | Non-methane hydrocarbon: 120 mg/m?; nitrogen oxide: 240 mg/m? | Non-methane hydrocarbon: 2.246 t, nitrogen oxide: 1.163 t | Non-methane hydrocarbon: 14.2 t; nitrogen oxide: 11.967 t | No excessive discharge |
Disposal of pollutants(I) Wastewater treatment:
(1) The Truck Factory of FAW Jiefang Automotive Co., Ltd. has three sewage treatmentstations currently, namely, frame workshop sewage treatment station, coating workshop sewagetreatment station and non-metallic coating sewage treatment station. ① The frame sewagetreatment station has a treatment capacity of 300 tons/day, and mainly treats the electrophoresisprocess wastewater before it enters the frame workshop. ② The cab coating workshop sewagetreatment station has a treatment capacity of 400 tons/day, and mainly treats the wastewater andpainting wastewater before they enter the workshop. ③ The non-metallic line sewage treatmentstation has a treatment capacity of 240 tons/day, and mainly treats the painting wastewater beforeit enters the production line. The wastewater and domestic sewage pretreated by the above three
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sewage stations are discharged into the FAW Integrated Sewage Treatment Plant, and thendischarged into the Changchun Western Suburbs Sewage Treatment Plant after being treated tomeet the Class III standard in the Integrated Wastewater Discharge Standard (GB8978-1996).
(2) One sewage treatment station has been built in Chengdu Branch of FAW JiefangAutomotive Co., Ltd. for the treatment of production and domestic wastewater of the Company,with a total treatment capacity of 300 tons/day. The main treatment method is SBR process. Allsewage stations can operate continuously and stably, and the sewage discharged up to standardenters the urban sewage treatment plant through the municipal pipe network for further treatment.
(3) The Transmission Branch (Transformation Factory) of FAW Jiefang Automotive Co.,Ltd. uses the sewage treatment station in the Shaft Gear Park to treat the Company's productionwastewater. The wastewater treatment plant has a total processing capacity of 5 tons per hour andoperates stably. After being treated by the sewage station, the industrial wastewater that meets thestandards is discharged into the Changchun Xijiao Sewage Treatment Plant for further treatment.
(4) There is an industrial sewage storage tank in each of the three workshops in theTransmission Branch (Axle Factory) of FAW Jiefang Automotive Co., Ltd., which signs adisposal contract with FAW to transfer the sewage by FAW tanks to the comprehensive treatmentworkshop for compliance disposal every day.
(5) One sewage treatment station is built in Changchun Intelligent Bus Branch of FAWJiefang Automotive Co., Ltd. for the treatment of production and domestic wastewater of theCompany, with a treatment capacity of 120 tons/day. The physicochemical + biochemicaltreatment process is adopted, which can operate continuously and stably and discharge up tostandard in real time. The sewage discharged up to standard enters the urban sewage treatmentplant through the municipal pipe network for further treatment.
(6) The industrial wastewater generated by the Engine Branch of FAW Jiefang AutomotiveCo., Ltd. is entrusted to FAW with disposal qualification for disposal.
(7) One sewage treatment station is built in Wuxi Diesel Engine Works of FAW JiefangAutomotive Co., Ltd. for the treatment of production and domestic wastewater of the Company,with a total treatment capacity of 3,000 tons/day and 24-hour operation. The main treatmentprocess is physicochemical + biochemical treatment. The sewage station can operate continuously
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and stably, and realize real-time up-to-standard discharge. The up-to-standard discharged sewageenters the urban sewage treatment plant through the municipal pipe network for further treatment.
(8) One sewage treatment station is built in the Wuxi Diesel Engine Huishan Factory ofFAW Jiefang Automotive Co., Ltd. for the treatment of production and domestic wastewater ofthe Company, with a total treatment capacity of 1,000 tons/day and 24-hour operation. The maintreatment process is physicochemical + biochemical treatment. The sewage station can operatecontinuously and stably, and realize real-time up-to-standard discharge. The up-to-standarddischarged sewage enters the urban sewage treatment plant through the municipal pipe networkfor further treatment.
(9) Two sewage treatment stations are built in FAW Jiefang Qingdao Automotive Co., Ltd.They combine physicochemical process with biochemical process and are mainly used to treat thephosphating wastewater, electrophoresis wastewater and degreasing wastewater discharged fromdaily production of the coating workshop, as well as the daily domestic sewage of the Company.The designed maximum daily treatment capacity of the station is 2160 tons/day. The treatedwastewater meets the index requirements of the Wastewater Quality Standards for Discharge toMunicipal Sewers (GB/T 31962-2015), and reaches the Water Quality Standard for DomesticMiscellaneous Water (GB/T18290-2002) after advanced treatment by MBR equipment, whichgreatly reduces the sewage concentration, increases the reuse amount of reclaimed water andsaves water. The up-to-standard treated wastewater is discharged to Jimo North SewageTreatment Plant for advanced treatment through the sewage outlet.
(10) One sewage treatment station is built in FAW Jiefang Dalian Diesel Engine Co., Ltd.for the treatment of production and domestic wastewater, with a total treatment capacity of 816tons/day and 24-hour operation. The main treatment processes are distillation pretreatment ofproduction wastewater and biochemical treatment of comprehensive wastewater. The sewagestation can operate continuously and stably, and realize real-time up-to-standard discharge. Theup-to-standard discharged sewage enters the urban sewage treatment plant through the municipalpipe network for further treatment.(II) Waste gas treatment:
(1) All waste gas treatment facilities in the Truck Factory of FAW Jiefang Automotive Co.,Ltd. can operate continuously and stably. The dust generated by the plasma cutting machine in the
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stamping workshop is collected and filtered and then discharged through a 15m exhaust pipe. TheCO2 welding machine adopts a single-machine dust removal system, and the waste gas isdischarged locally in the workshop after being treated by a single-machine dust collector. Thewaste gas generated by the treatment and drying process before entering the frame workshop isdischarged through a 15m exhaust pipe after being treated by a direct combustion device. Theexhaust gas of VOCs from cab coating and non-metallic coating is discharged after reaching thestandard through hydrocyclone + zeolite runner adsorption concentration + RTO (regenerativeincineration).
(2) All waste gas treatment facilities of Chengdu Branch of FAW Jiefang Automotive Co.,Ltd. can operate continuously and stably. The painting waste gas of the coated body is dischargedafter reaching the standard through hydrocyclone + dry filtration + zeolite runner adsorption andconcentration + RTO (regenerative incineration). All welding fumes are discharged after beingtreated by centralized and mobile dust removal systems and reaching the standard.
(3) All waste gas treatment facilities of the Transmission Branch (Transformation Factory)of FAW Jiefang Automotive Co., Ltd. can operate continuously and stably. The painting wastegas generated from the coating line is discharged after reaching the standard and being treated byactivated carbon adsorption and desorption catalytic combustion devices. All welding fumes aredischarged after reaching the standard and being treated by centralized and mobile dust removalsystems.
(4) All waste gas treatment facilities of the Transmission Branch (Axle Factory) of FAWJiefang Automotive Co., Ltd. can operate continuously and stably, and all welding fumes aredischarged after reaching the standard and being treated by centralized and mobile dust removalsystems. In December 2022, the VOC treatment facilities for the coating line of Workshop 3 wereinstalled and put into operation.
(5) Changchun Intelligent Bus Branch of FAW Jiefang Automotive Co., Ltd. plans toimplement various centralized dust removal projects for welding fumes in 2023. The fumes weredischarged up to standard after treatment. This project is being carried out. The waste gas fromthe painting process is treated by the pretreatment filtration system + zeolite concentration runner+ RTO incineration treatment system and then discharged after reaching the standard.
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
(6) The Engine Branch of FAW Jiefang Automotive Co., Ltd. has three quenching machinesgenerating waste gas and equipped with adsorption purification devices. After treatment, thewaste gas is discharged up to standard.
(7) All waste gas treatment facilities of Wuxi Diesel Engine Works of FAW JiefangAutomotive Co., Ltd. can operate continuously and stably. The painting waste gas generated fromcoating is discharged after reaching the standard and receiving activated carbon adsorption anddesorption + catalysis, and the waste gas generated from test run is discharged after reaching thestandard and being treated by SCR treatment device.
(8) All waste gas treatment facilities of Wuxi Diesel Engine Huishan Factory of FAWJiefang Automotive Co., Ltd. can operate continuously and stably. The painting waste gasgenerated from coating is discharged after reaching the standard and receiving activated carbonadsorption and desorption + catalysis, and the waste gas generated from test run is dischargedafter reaching the standard and being treated by SCR treatment device.
(9) All waste gas treatment facilities of FAW Jiefang (Qingdao) Automotive Co., Ltd. canoperate continuously and stably. The painting waste gas generated by the plastic parts coatingworkshop, the cab coating workshop and the general assembly workshop is discharged afterreaching the standard and being purified by paint mist, adsorbed by zeolite concentration runnerand treated by RTO incineration device in the three workshops. The drying waste gas generatedby the general assembly workshop is burned with low nitrogen, and discharged after reaching thestandard and being treated by the quaternary combustion device. The drying waste gas generatedby the coating workshop is burned with low nitrogen and discharged after reaching the standardand receiving TNV thermal incineration. All welding fumes are discharged after being treated byfilter cartridge dust collector and reaching the standard.
(10) All waste gas treatment facilities of FAW Jiefang Dalian Diesel Engine Co., Ltd. canoperate continuously and stably. The painting waste gas generated from coating is dischargedafter reaching the standard and being treated by water curtain paint mist treatment device +activated carbon adsorption, and the waste gas generated from test run is discharged after beingtreated by SCR post-treatment + alkali liquor washing exhaust gas treatment device and reachingthe standard.(III) Noise control:
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
All noise reduction and shock absorption measures of the branches and subsidiaries of theCompany can meet the requirements of national laws and regulations, and the noise within theplant boundary meets the requirements of national emission regulations.(IV) Hazardous waste disposal:
All branches and subsidiaries of the Company deliver 100% of hazardous wastes toorganizations with hazardous waste transportation and disposal qualification for compliancetransfer and disposal in strict accordance with the requirements of national laws, regulations andstandards.Emergency plan for environmental emergencies
All branches and subsidiaries of the Company prepare their own emergency plans forenvironmental emergencies as required, which are approved and filed by the local ecologicalenvironment bureau. All organizations organize drills and further revise them every yearaccording to the requirements of the emergency plan, and have good emergency responsecapabilities for environmental emergencies.Investment in environmental governance and protection and payment of environmental protectiontaxes
In the first half of the year, the Company paid more than CNY 20 million for variousenvironmental protection management fees, investment in environmental protection facilities andenvironmental protection taxes.Environmental self-monitoring plan
All branches and subsidiaries of the Company have prepared their own monitoring plansaccording to the requirements of pollutant discharge permits and regulations, and organizedqualified monitoring organizations to monitor wastewater, waste gas, noise and soil in accordancewith the requirements of the plans. The test report for the first half of the year shows that allmonitoring indicators meet the requirements of all national emission regulations and standards.Administrative penalties due to environmental problems in the Reporting Period
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| Name of Company or Subsidiary | Cause for Penalties | Violations | Results of Penalties | Impact on Production and Operation of the Listed Company | Rectification Measures of the Company |
| N/A | N/A | N/A | N/A | N/A | N/A |
Other environmental information that shall be disclosed
All branches and subsidiaries of the Company have been certified by the environmentalmanagement system (GB/T24001-2020), and carried out cleaner production audits in strictaccordance with the requirements. As a responsible central enterprise, FAW Jiefang AutomotiveCo., Ltd. strictly abides by the national requirements, has been practicing the concept of scientificdevelopment and is committed to building an ecological civilization benchmark environment-friendly enterprise of "energy conservation, consumption reduction, emission reduction andefficiency improvement".Measures taken to reduce carbon emissions in the reporting period and their effects?Applicable □ Not applicable
FAW Jiefang Automotive Co., Ltd. focuses on energy conservation and carbon reduction,takes the initiative to align with the government's preferential energy policies, and completes themarket-oriented transaction of green electricity. The photovoltaic clean energy projectsimplemented by Changchun Special Vehicle, Axle Branch, Wuxi Diesel Engine, QingdaoAutomobile Co., Ltd., and other subsidiaries in 2022 have been connected to the grid for powergeneration in 2023, further reducing carbon emissions. In addition, all units were organized forenergy conservation and carbon reduction activities. A total of 133 improvement measures forenergy saving and consumption reduction were implemented in the first half of the year, reducing23,200 tons of carbon emissions.Other information related to environmental protection
In the first half of the year, the Company organized environmental protection publicityactivities. All units shot 81 environmental protection publicity videos, produced 60 publicityposters, selected 61 excellent improvement cases of environmental protection, and carried outactivities such as environmental protection knowledge competitions.
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
II. Social Responsibility
Guided by the spirit of the 20
thCPC National Congress, FAW Jiefang is firmly committed tofulfilling its social responsibilities and comprehensively advancing rural revitalization. TheCompany focuses on key areas such as sending temporary officials to work in rural areas,promoting industry assistance, talent support, and consumption poverty alleviation. It has pairedup with Xinli Village in Zhenlai County, Jilin Province, to promote the improvement of villageappearance, ecological animal husbandry development, and other initiatives. FAW Jiefang hasalso partnered with Zhongting Village in Fengshan County, Guangxi, to provide employmentopportunities for local graduates, fostering talent employment and regional economicdevelopment. The Company consistently engages in consumption support by purchasingagricultural and sideline products from poverty-stricken areas, consolidates and expands theachievements of poverty alleviation efforts, and continuously contributes to rural revitalizationwith the strength of FAW Jiefang.
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Section VI Important MattersI. Commitments Made by the Company's Actual Controllers, Shareholders, RelatedParties, Purchasers and the Company to Interested Parties that will be Fulfilled in theReporting Period, and Commitments not Fulfilled by the End of the Reporting Period?Applicable □ Not applicable
| Reasons for Commitment | Committed by | Commitment Type | Commitments | Date: | Commitment Period | Performance |
| Commitments made in the Acquisition Report or Equity Change Report | China FAW Co., Ltd. | Shareholder Lock-up Commitment | To safeguard the interests of investors, FAW promises that after this acquisition is completed, the Company will continue to fulfill the commitments made by FAW Group during the equity division reform and strictly abide by the relevant regulations of China Securities Regulatory Commission and Shenzhen Stock Exchange on share transfer, equity changes and information disclosure of listed companies. | August 8, 2011 | Long-term validity | The locked shares were listed and circulated on April 10, 2023, and this commitment has been fulfilled. |
| Commitments made during asset restructuring | China FAW Co., Ltd. | Commitment on restricted shares | 1. The non-publicly issued shares of the listed company acquired by asset subscription in the restructuring will not be transferred in any way within 36 months from the date of issuance, including but not limited to public transfer through the securities market or transfer by agreement. However, the transfer permitted under applicable laws is exempt from the restrictions (including but not limited to share repurchase due to performance compensation). 2. If the closing price of the | April 8, 2020 | The new shares in this restructuring will not be transferred in any way within 36 months from the date of issuance; the shares already held before the restructuring shall not be transferred within 18 | Among them, the new shares in this restructuring were listed and circulated on April 10, 2023; the shares before the restructuring expired on October 9, 2021. This commitment has been fulfilled. |
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| listed company's shares is lower than the issue price for 20 consecutive trading days within 6 months after the restructuring, or the closing price at the end of 6 months after the restructuring is lower than the issue price, the shares of the listed company acquired by FAW Car Co., Ltd. through asset subscription in this restructuring will be automatically extended for 6 months on the basis of the above lock-up period. 3. The shares of the listed company already held before the restructuring shall not be transferred within 18 months from the date of completion of the restructuring, but the transfer permitted under applicable laws is exempt from the restrictions. 4. After the restructuring, if the shares of the listed company enjoyed based on the restructuring are newly increased due to issuance of bonus shares, conversion to share capital, etc., the aforementioned agreement on the restricted period shall also be observed. If the commitment on the restricted period of the shares obtained based on the restructuring is inconsistent with the latest regulatory opinions of the securities regulatory authorities, FAW Car Co., Ltd. will make corresponding adjustments based on the regulatory | months from the date of completion of the restructuring. |
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| opinions of the relevant securities regulatory authorities. 5. After the expiration of the above restricted period, the shares of the listed company obtained shall be transferred according to the relevant provisions of the China Securities Regulatory Commission and Shenzhen Stock Exchange. 6. FAW guarantees that it is willing to assume corresponding legal responsibilities in case of violation of the above commitments. | ||||||
| Commitments made during asset restructuring | China FAW Co., Ltd. | Performance commitment and compensation arrangement | For some patents and proprietary technologies (hereinafter referred to as "performance commitment assets") in the purchased assets evaluated by the income approach, the income commitments of the audited performance compensation assets in the three accounting years (i.e. 2020, 2021 and 2022) after the transaction are as follows: CNY 655,889,000 in 2020, CNY 688,155,200 in 2021 and CNY 109,386,400 in 2022. During the performance commitment period, if as of the end of the current year, the accumulated realized income of the performance commitment assets is lower than the accumulated committed income, FAW will compensate the listed company year by year by share-based payment. | April 8, 2020 | April 30, 2023 | From 2020 to 2022, the share of the accumulative realized income of the Company's performance commitment assets was CNY 1,949,149,600, exceeding the commitment amount of CNY 495,719,000, and the performance commitment was completed. |
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
| Commitment made upon initial public offering or refinancing | N/A | N/A | ||||
| Equity incentive commitment | N/A | N/A | ||||
| Other commitments to minority shareholders of the Company | N/A | N/A | ||||
| Other commitments | N/A | N/A | ||||
| Whether the commitment is fulfilled on time | Yes | |||||
| If the commitment is not fulfilled within the time limit, the specific reasons for the failure and the next work plan shall be explained in detail | N/A | |||||
II. Non-operating Occupation of Funds by Controlling Shareholders and Other RelatedParties to the Listed Company
□ Applicable ?Not applicable
During the reporting period, there was no non-operating occupation of funds by controllingshareholders and other related parties.
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
III. Illegal External Guarantee
□ Applicable ?Not applicable
The Company has no illegal external guarantee in the reporting period.IV. Appointment and Dismissal of Accounting FirmHas the semi-annual financial report been audited?
□ Yes ?No
The semi-annual report of the Company is not audited.V. Description of the Board of Directors and the Board of Supervisors on the "Non-standard Audit Report" of the Accounting Firm in the Reporting Period
□ Applicable ?Not applicable
VI. Description of the Board of Directors on the "Non-standard Audit Report" of the LastYear
□ Applicable ?Not applicable
VII. Matters Related to Bankruptcy Reorganization
□ Applicable ?Not applicable
The Company has no matter related to bankruptcy reorganization in the reporting period.VIII. Litigation MattersMajor litigation and arbitration matters
□ Applicable ?Not applicable
The Company has no major litigation or arbitration matter in the reporting period.Other litigation matters?Applicable □ Not applicable
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
| Basic Information about Litigation (Arbitration) | Amount Involved (CNY 10,000) | Estimated liabilities formed or not | Progress of Litigation (Arbitration) | Litigation (Arbitration) Results and Impact | Implementation of Litigation (Arbitration) Judgment | Date of Disclosure | Disclosure Index |
| Summary of other litigation not reaching the major disclosure standard | 13,002.01 | Including estimated liabilities of CNY 10,045,200 | Case not closed | No significant impact | Case not closed by the end of the reporting period | ||
| 3,360.52 | No | Case closed | No significant impact | Completed |
IX. Punishment and Rectification
□ Applicable ?Not applicable
X. Integrity of the Company and Its Controlling Shareholders and Actual Controllers
□ Applicable ?Not applicable
XI. Major Related Transactions
1. Related transactions related to daily operations
?Applicable □ Not applicable
| Related Transaction Party | Correlation | Type of Related Transaction | Content of Related Transaction | Pricing Principle of Related Transaction | Price of Related Transaction | Amount of Related Transaction (CNY 10,000) | Proportion to the Amount of Similar Transactions | Approved Transaction Amount (CNY 10,000) | Whether it Exceeds the Approved Amount | Settlement Method of Related Transaction | Available Market Value of Similar Transactions | Date of Disclosure | Disclosure Index |
| China FAW Group Import & Export Co., Ltd. | The same ultimate controlling party | Sales of goods | Sales of goods | Market price | Market price | 672,826.42 | 20.38% | 1,096,179 | No | Cash + bill settlement | 672,826.42 | February 11, 2023 | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=gssz0000800&stockCode=000800&announcementId=1215827521&announcementTime |
| FAW Jiefang Fujie (Tianjin) Technology Industry Co., Ltd. | Associated enterprise of the Company | Sales of goods | Sales of goods | Market price | Market price | 121,345.79 | 3.68% | 251,200 | No | Cash + bill settlement | 121,345.79 | ||
| Total | -- | -- | 794,172.21 | -- | 1,347,379 | -- | -- | -- | -- | -- | |||
| Details of large sales returns | N/A | ||||||||||||
| Actual performance in the reporting period, if the total amount of daily related transactions to be incurred in the current period is estimated by category | For details about the actual performance of related transactions in the reporting period, please see Item XI "Related Parties and Related Transactions" in Section X of this report. | ||||||||||||
| Reasons for large difference between transaction price and market reference price | N/A | ||||||||||||
2. Related transactions arising from the acquisition and sale of assets or equity
□ Applicable ?Not applicable
The Company has no related transaction arising from the acquisition and sale of assets or equityin the reporting period.
3. Related transactions of joint foreign investment
?Applicable □ Not applicable
| Co-investor | Correlation | Name of the Invested Enterprise | Main Business of the Invested Enterprise | Registered Capital of the Investee | Total Assets of the Invested Enterprise (CNY 10,000) | Net Assets of the Invested Enterprise (CNY 10,000) | Net Profit of the Invested Enterprise (CNY 10,000) |
| CHINA FAW GROUP CO., LTD. | Ultimate controller of the Company | Changchun Automotive Test Center Co., Ltd. | Automobile testing service | CNY 11,714,400 | 361,342.41 | 345,416.02 | 7,070 |
| Progress of major projects under construction of the investee | N/A | ||||||
4. Related credit and debt transactions
?Applicable □ Not applicableWhether there are non-operating related credit and debt transactions
□ Yes ?No
The Company has no non-operating related credit and debt transactions in the reporting period.
5. Transaction with related finance companies
?Applicable □ Not applicableDeposit Business
| Related Parties | Correlation | Maximum Daily Deposit Limit (CNY 10,000) | Deposit Interest Rate Range | Opening Balance (CNY 10,000) | Amount Incurred in Current Period | Ending Balance (CNY 10,000) | |
| Total Deposit Amount in the Current Period (CNY 10,000) | Total Withdrawal Amount in the Current Period (CNY 10,000) | ||||||
| First Automobile Finance Co., Ltd. | Associated enterprise of the Company, the same ultimate controlling party | 3,000,000 | 0.35%-2.85% | 1,383,293.43 | 12,763,495.04 | 13,298,542.32 | 848,246.15 |
Credit Granting or Other Financial Businesses
| Related Parties | Correlation | Business Type | Total Amount (CNY 10,000) | Actual Amount Incurred (CNY 10,000) |
| First Automobile Finance Co., Ltd. | Associated enterprise of the Company, the same ultimate controlling party | Other financial businesses | 920,000 | 60,305.65 |
6. Transactions between finance companies controlled by the Company and related parties
□ Applicable ?Not applicable
There is no deposit, loan, credit granting or other financial businesses between the financecompanies controlled by the Company and related parties.
7. Other major related transactions
?Applicable □ Not applicable
On February 10, 2023, the 31st meeting of the 9th Board of Directors of the Companyreviewed and approved the Proposal on Estimated Amount of Daily Related Transactions in 2023and the Proposal on Signing a Financial Service Framework Agreement with First AutomobileFinance Co., Ltd., and the Proposal on Estimated Amount of Financial Business with FirstAutomobile Finance Co., Ltd. in 2023, which were reviewed and approved by the firstextraordinary shareholders' meeting of the Company in 2023.Relevant Inquiries on Disclosure Website of Interim Report of Major Related Transactions
| Name of Temporary Announcement | Disclosure Date of Temporary Announcement | Name of Temporary Announcement Disclosure Website |
| Announcement on estimated amount of daily related transactions in 2023 | February 11, 2023 | CNINFO (http://www.cninfo.com.cn) |
| Announcement on Signing Financial Service Framework Agreement and Related Party Transactions with First Automobile Finance Co., Ltd. | February 11, 2023 | CNINFO (http://www.cninfo.com.cn) |
| Announcement on estimated amount of financial business with First Automobile Finance Co., Ltd. in 2023 | February 11, 2023 | CNINFO (http://www.cninfo.com.cn) |
XII. Major Contracts and Their Performance
1. Trusteeship, contracting and lease
(1) Trusteeship
□ Applicable ?Not applicable
There is no trusteeship made by the Company in the reporting period.
(2) Contracting
□ Applicable ?Not applicable
There is no contracting made by the Company in the reporting period.
(3) Lease
?Applicable □ Not applicableDescription of leaseFor details of the Company's operating lease, please refer to Note 14 "Investment Real estate",Note 15 "Fixed Assets", and Note 19 "Right-of-use Assets" in Notes to Items in ConsolidatedFinancial Statements (VII) of Section X, and Note 5 "Related Parties and Related Transactions" inSection XI "Related Parties and Related Transactions".Projects that bring about profits and losses exceeding 10% of the total profit of the Company inthe reporting period
□ Applicable ?Not applicable
The Company has no leasing project that brings about profits and losses exceeding 10% of thetotal profit of the Company in the reporting period.
2. Major guarantees
□ Applicable ?Not applicable
The Company has no major guarantee in the reporting period.
3. Entrusted financial management
□ Applicable ?Not applicable
The Company has no entrusted financial management in the reporting period.
4. Other major contracts
□ Applicable ?Not applicable
The Company has no other major contracts in the reporting period.XIII. Other Major Matters to be Explained?Applicable □ Not applicable
On June 19, 2023, the Company held the 4
th Meeting of the 10
thBoard of Directors and the
rd Meeting of the 10
thBoard of Supervisors respectively to deliberate and approve relevantproposals such as the Proposal on the Company's Eligibility for Issuing A-shares to SpecificObjects and the Proposal on the Company's Plan for Issuing A-shares to Specific Objects in 2023.These Proposals were deliberated and approved at the 2
nd
Extraordinary Shareholders’ Meeting ofthe Company held on July 18, 2023. The Company disclosed the Announcement of Approval fromChina FAW Group Co., Ltd. Regarding the Matters of Issuing A-Share Stocks to Specific Objectsin the Company in 2023. On August 3, 2023, the Company disclosed the Announcement on theApplication for the Issuance of A-shares to Specific Objects in 2023 Accepted by the ShenzhenStock Exchange. For details of the above proposals, please refer to the relevant announcementspublished by the Company in Securities Times, China Securities Journal and CNINFO(http://www.cninfo.com.cn).XIV. Major Events of Subsidiaries
□ Applicable ?Not applicable
Section VII Changes in Shares and ShareholdersI. Changes in Shares
1. Changes in shares
Unit: share
| Before the Change | Increase/Decrease Made by the Change (+, -) | After the Change | |||||||
| Qty. | Scale | Issue of New Shares | Bonus shares | Share Transferred from Accumulation Fund | Others | Subtotal | Qty. | Scale | |
| I. Restricted shares | 3,241,570,824 | 69.66% | -3,226,753,496 | -3,226,753,496 | 14,817,328 | 0.32% | |||
| 1. Shares held by the state | |||||||||
| 2. Shares held by the state-owned legal person | 3,197,912,134 | 68.72% | -3,197,912,134 | -3,197,912,134 | |||||
| 3. Shares held by other domestic enterprises | 43,658,690 | 0.94% | -28,841,362 | -28,841,362 | 14,817,328 | 0.32% | |||
| Including: shares held by domestic legal person | |||||||||
| Shares held by domestic natural person | 43,658,690 | 0.94% | -28,841,362 | -28,841,362 | 14,817,328 | 0.32% | |||
| 4. Shares held by foreign enterprises | |||||||||
| Including: shares held by overseas legal person | |||||||||
| Shares held by overseas natural person | |||||||||
| II. Unrestricted shares | 1,411,754,078 | 30.34% | 3,210,760,924 | 3,210,760,924 | 4,622,515,002 | 99.68% | |||
| 1. CNY ordinary shares | 1,411,754,078 | 30.34% | 3,210,760,924 | 3,210,760,924 | 4,622,515,002 | 99.68% | |||
| 2. Foreign shares listed in China | |||||||||
| 3. Foreign shares listed overseas | |||||||||
| 4. Others | |||||||||
| III. Total number of shares | 4,653,324,902 | 100.00% | -15,992,572 | -15,992,572 | 4,637,332,330 | 100.00% |
Reasons for changes in shares?Applicable □ Not applicableDuring the reporting period, the Company failed to achieve the performance assessmentobjectives set for the second release period first granted and the first release period reserved bythe Company's Phase I restricted share incentive plan, and a total of 15,992,572 shares wererepurchased and canceled due to organizational transfer, statutory retirement and personal reasons.After the aforesaid repurchase and cancellation, the total share capital of the Company waschanged to 4,637,332,330 shares.Approval of share changes?Applicable □ Not applicable
(1) On October 28, 2022, the Proposal on Repurchase and Cancellation of Partial RestrictedShares in the Phase I Restricted Share Incentive Plan was reviewed and approved at the 28thMeeting of the 9th Board of Directors and the 24th Meeting of the 9th Board of Supervisorsrespectively, with a total number of 1,359,247 restricted shares repurchased and cancelled. OnNovember 18, 2022, the Proposal was deliberated and approved at the Company's thirdExtraordinary Shareholders' Meeting in 2022.
(2) On December 15, 2022, the Proposal on Repurchase and Cancellation of Partial RestrictedShares in the Phase I Restricted Share Incentive Plan was reviewed and approved at the 30thMeeting of the 9th Board of Directors and the 26th Meeting of the 9th Board of Supervisorsrespectively, with a total number of 723,435 restricted shares repurchased and cancelled. OnMarch 2, 2023, the Proposal was deliberated and approved at the Company's first ExtraordinaryShareholders' Meeting in 2023.
(3) On March 31, 2023, the 32
nd Meeting of the 9
th Board of Directors and the 28
th
Meeting ofthe 9th
Board of Supervisors of the Company deliberated and approved the Proposal onUnsuccessful Lifting of Conditions of the Second Release Period First Granted by the Phase IRestricted Share Incentive Plan for Releasing the Restricted Sales and of Conditions of the FirstRelease Period Reserved by the Phase I Restricted Share Incentive Plan for Releasing theRestricted Sales and Repurchase and Cancellation of Some Restricted Shares, with a total numberof 13,909,890 restricted shares repurchased and canceled. On April 24, 2023, the proposal wasreviewed and approved at the Company's 2022 Annual Shareholders’ Meeting.
Transfer of share changes?Applicable □ Not applicable
(1) On January 6, 2023, the Company submitted relevant registration materials to CSDC for1,359,247 shares involved in equity incentive repurchase and cancellation. On January 16, 2023,CSDC issued the Confirmation of Securities Transfer Registration to the Company, and the totalshare capital of the Company was reduced to 4,651,965,655 shares.
(2) On April 20, 2023, the Company submitted relevant registration materials to CSDC for723,435 shares involved in equity incentive repurchase and cancellation. On April 27, 2023,CSDC issued the Confirmation of Securities Transfer Registration to the Company, and the totalshare capital of the Company was reduced to 4,651,242,220 shares.
(3) On June 20, 2023, the Company submitted relevant registration materials to CDSC for13,909,890 shares involved in equity incentive repurchase and cancellation. On June 29, 2023,CSDC issued the Confirmation of Securities Transfer Registration to the Company, and the totalshare capital of the Company was reduced to 4,637,332,330 shares.Implementation progress of share repurchase
□ Applicable ?Not applicable
Implementation progress of reducing repurchased shares by centralized bidding
□ Applicable ?Not applicable
Impact of changes in shares on financial indicators such as basic earnings per share and dilutedearnings per share in the latest year and the latest period, and net assets per share attributable toshareholders with ordinary shares of the Company?Applicable □ Not applicableIn the reporting period, the share capital of the Company decreased by 15,992,572 shares, whichhad little impact on the Company's financial indicators such as basic earnings per share, dilutedearnings per share, and net assets per share attributable to shareholders with ordinary shares of theCompany.Other information disclosed as deemed necessary by the Company or required by the securitiesregulatory authority
□ Applicable ?Not applicable
2. Changes in restricted shares
?Applicable □ Not applicable
Unit: share
| Name of Shareholder | Number of Restricted Shares at the Beginning of the Period | Number of Restricted Shares Released in the Current Period | Number of Restricted Shares Increased in the Current Period | Number of Restricted Shares at the End of the Period | Reason for Restriction | Release Date |
| China FAW Co., Ltd. | 2,413,412,134 | 2,413,412,134 | Major asset restructuring | April 10, 2023 | ||
| FAW Bestune Car Co., Ltd. | 784,500,000 | 784,500,000 | Major asset restructuring | April 10, 2023 | ||
| Hu Hanjie | 334,331 | 193,912 | 140,419 | Equity incentive | 25% of the total number of shares held are lifted every year, and the restrictions on sales are lifted in phases according to the assessment objectives and the restricted share incentive plan. | |
| Wu Bilei | 228,552 | 132,560 | 95,992 | Equity incentive | ||
| Zhang Guohua | 228,493 | 132,526 | 95,967 | Equity incentive | ||
| Ji Yizhi | 192,778 | 111,812 | 80,966 | Equity incentive | ||
| Tian Haifeng | 192,778 | 111,812 | 80,966 | Equity incentive | ||
| Li Sheng | 192,778 | 111,812 | 80,966 | Equity incentive | ||
| Wang Jianxun | 192,778 | 111,812 | 80,966 | Equity incentive | ||
| Other core employees of senior director and above | 42,096,202 | 27,935,116 | 14,161,086 | Equity incentive | The restrictions on sales are lifted in phases according to the assessment objectives and the restricted share incentive plan. | |
| Total | 3,241,570,824 | 3,226,753,496 | 0 | 14,817,328 | -- | -- |
II. Issuance and Listing of Securities
□ Applicable ?Not applicable
III. Number of Shareholders and Shareholdings of the Company
Unit: share
| Total Number of Shareholders with Ordinary Shares at the End of the Reporting Period | 73,409 | Total Number of Shareholders with Preferred Share with Restored Voting Rights at the End of the Reporting Period | 0 | |||||||
| Shareholding of Shareholders with Ordinary Shares Holding More Than 5% of the Shares or Top 10 Shareholders with Ordinary Shares | ||||||||||
| Name of Shareholder | Nature of Shareholders | Share Proportion | Number of Ordinary Shares Held at the End of the Reporting Period | Increase and Decrease in the Reporting Period | Number of Restricted Ordinary Shares Held | Number of Unrestricted Ordinary Shares Held | Pledge, Marking or Freezing | |||
| Status of Shares | Qty. | |||||||||
| China FAW Co., Ltd. | State-owned legal person | 66.00% | 3,060,649,901 | 3,060,649,901 | ||||||
| FAW Bestune Car Co., Ltd. | State-owned legal person | 16.92% | 784,500,000 | 784,500,000 | ||||||
| Hong Kong Securities Clearing Company Ltd. | Overseas legal person | 1.65% | 76,522,001 | 21,681,689 | 76,522,001 | |||||
| Lu Min | Domestic natural person | 0.78% | 36,096,590 | 36,096,590 | ||||||
| Jilin Province State-owned Capital | State-owned legal person | 0.30% | 13,712,916 | 13,712,916 | ||||||
| Chao Guo | Domestic natural person | 0.17% | 8,064,758 | 205,400 | 8,064,758 | |||||
| Li Yan | Domestic natural person | 0.17% | 7,660,000 | 7,660,000 | ||||||
| China Construction Bank Corporation - | Others | 0.14% | 6,534,395 | 1,073,600 | 6,534,395 | |||||
| GF China Securities Auto Index-based Securities Investment Fund | ||||||||
| Zhong Ou AMC - Agricultural Bank of China - Zhong Ou & CITIC Securities Financial Asset Management Plan | Others | 0.12% | 5,549,500 | 5,549,500 | ||||
| Bosera Asset Management Co., Ltd. - Agricultural Bank of China - Bosera & CITIC Securities Financial Asset Management Plan | Others | 0.12% | 5,549,500 | 5,549,500 | ||||
| Strategic investors or general legal persons who become the top 10 shareholders with ordinary shares due to the issuance of new shares | N/A | |||||||
| Description of correlation or concerted action of the above shareholders | Among the above shareholders, FAW Bestune is a wholly-owned subsidiary of FAW, and is a person acting in concert as specified in the Regulations for the Takeover of Listed Companies. The public disclosure data indicates that the Company does not know whether there is a correlation between other shareholders of outstanding shares, nor whether other shareholders of outstanding shares are persons acting in concert as | |||||||
| specified in the Regulations for the Takeover of Listed Companies. | |||||
| Description of involvement of the above shareholders in entrusting/entrusted voting rights and waiving voting rights | N/A | ||||
| Special description of the existence of repurchase special accounts among the top 10 shareholders | N/A | ||||
| Shareholding of Top 10 Shareholders with Unrestricted Ordinary Shares | |||||
| Name of Shareholder | Number of Unrestricted Ordinary Shares Held at the End of the Reporting Period | Type of Shares | |||
| Type of Shares | Qty. | ||||
| China FAW Co., Ltd. | 3,060,649,901 | CNY ordinary shares | 3,060,649,901 | ||
| FAW Bestune Car Co., Ltd. | 784,500,000 | CNY ordinary shares | 784,500,000 | ||
| Hong Kong Securities Clearing Company Ltd. | 76,522,001 | CNY ordinary shares | 76,522,001 | ||
| Lu Min | 36,096,590 | CNY ordinary shares | 36,096,590 | ||
| Jilin Province State-owned Capital | 13,712,916 | CNY ordinary shares | 13,712,916 | ||
| Chao Guo | 8,064,758 | CNY ordinary shares | 8,064,758 | ||
| Li Yan | 7,660,000 | CNY ordinary shares | 7,660,000 | ||
| China Construction Bank Corporation - GF China Securities Auto Index-based Securities Investment Fund | 6,534,395 | CNY ordinary shares | 6,534,395 | ||
| Zhong Ou AMC - Agricultural Bank of China - Zhong Ou & CITIC Securities Financial Asset Management Plan | 5,549,500 | CNY ordinary shares | 5,549,500 | ||
| Bosera Asset Management Co., Ltd. - Agricultural Bank of China - Bosera & CITIC Securities Financial Asset Management Plan | 5,549,500 | CNY ordinary shares | 5,549,500 | ||
| Description of correlation or concerted action between the top 10 shareholders with unrestricted ordinary shares, and between the top 10 shareholders with unrestricted ordinary shares and the top 10 shareholders with ordinary shares | Among the above shareholders, FAW Bestune is a wholly-owned subsidiary of FAW, and is a person acting in concert as specified in the Regulations for the Takeover of Listed Companies. The public disclosure data indicates that the Company does not know whether there is a correlation between other shareholders of outstanding shares, nor whether other shareholders of outstanding shares are persons acting in concert as specified in the Regulations for the Takeover of Listed Companies. | ||||
| Description of participation in financing bonds business of top 10 shareholders with ordinary shares | Lu Min, a domestic natural person, holds 36,096,590 shares of the Company through the guaranteed securities account for customer credit trading of CITIC Securities; Chao Guo, a domestic natural person, holds 8,045,600 shares of the Company through the guaranteed securities account for customer credit trading of Minsheng Securities; Li Yan, a domestic natural person, holds 7,660,000 shares of the Company through the guaranteed securities account for customer credit trading of Dongguan Securities. | ||||
Do the top 10 shareholders with ordinary shares and the top 10 shareholders with unrestrictedordinary shares of the Company conduct agreed repurchase transactions in the reporting period
□ Yes ?No
The top 10 shareholders with ordinary shares and the top 10 shareholders with unrestrictedordinary shares of the Company do not conduct agreed repurchase transactions in the reportingperiodIV. Changes in Shareholding of Directors, Supervisors and Senior Management?Applicable □ Not applicable
| Name | Position | Employment Status | Number of Shares Held at the Beginning of the Period (share) | Number of Shares Increased in the Current Period (share) | Number of Shares Reduced in the Current Period (share) | Number of Shares Held at the End of the Period (share) | Number of Restricted Shares Granted at the Beginning of the Period (shares) | Number Of Restricted Shares Granted In The Current Period (shares) | Number of Restricted Shares Granted at the End of the Period (shares) |
| Hu Hanjie | Chairman of the Board | In-service | 334,331 | 110,329 | 224,002 | 334,331 | -110,329 | 224,002 | |
| Wu Bilei | Director | In-service | 228,552 | 75,422 | 153,130 | 228,552 | -75,422 | 153,130 | |
| Zhang Guohua | Director | In-service | 228,493 | 75,403 | 153,090 | 228,493 | -75,403 | 153,090 | |
| Ji Yizhi | Deputy General Manager | In-service | 192,778 | 63,617 | 129,161 | 192,778 | -63,617 | 129,161 | |
| Tian Haifeng | Deputy General Manager | In-service | 192,778 | 63,617 | 129,161 | 192,778 | -63,617 | 129,161 | |
| Li Sheng | Deputy General Manager | In-service | 192,778 | 63,617 | 129,161 | 192,778 | -63,617 | 129,161 | |
| Wang Jianxun | Secretary of the Board of Directors | In-service | 192,778 | 63,617 | 129,161 | 192,778 | -63,617 | 129,161 | |
| Total | -- | -- | 1,562,488 | 515,622 | 1,046,866 | 1,562,488 | -515,622 | 1,046,866 |
Changes in controlling shareholders or actual controllersChanges in controlling shareholders in the reporting period
□ Applicable ?Not applicable
There is no change in the controlling shareholders of the Company in the reporting period.Change of actual controller in the reporting period
□ Applicable ?Not applicable
There is no change in the actual controller of the Company in the reporting period.
Section VIII Preferred Shares
□ Applicable ?Not applicable
The Company has no preferred shares in the reporting period.
Section IX Bonds
□ Applicable ?Not applicable
Section X Financial Report
I. Audit ReportIs the semi-annual report audited
□ Yes No?
The semi-annual financial report of the Company is not audited.II. Financial StatementsThe unit in the notes to the financial statement is CNY
1. Consolidated Balance sheet
Prepared by: FAW JIEFANG GROUP CO., LTD.
June 30, 2023
Unit: CNY
| Item | June 30, 2023 | January 1, 2023 |
| Current assets: | ||
| Monetary capital | 26,737,335,999.70 | 21,041,473,417.71 |
| Settlement reserve fund | ||
| Loans to banks and other financial institutions | ||
| Financial assets held for trading | ||
| Derivative financial assets | ||
| Notes receivable | 199,257,997.67 | 186,748,716.22 |
| Accounts receivable | 2,834,227,703.58 | 867,090,338.42 |
| Accounts receivable financing | 8,679,460,881.09 | 3,461,653,473.66 |
| Advance payment | 938,225,679.34 | 897,834,864.08 |
| Premiums receivable | ||
| Reinsurance accounts receivable | ||
| Reinsurance contract reserves receivable | ||
| Other receivables | 1,116,025,414.02 | 1,068,454,162.91 |
| Including: interests receivable | ||
| Dividends receivable | 2,608,000.00 | 2,608,000.00 |
| Financial assets purchased under agreements to resell | ||
| Inventories | 7,831,442,068.22 | 6,382,739,897.83 |
| Contract assets | 19,838,584.22 | 11,129,624.75 |
| Held-for-sale assets | ||
| Current portion of non-current assets | 202,027,832.48 | 191,262,030.30 |
| Other current assets | 677,109,911.29 | 894,927,499.59 |
| Total current assets | 49,234,952,071.61 | 35,003,314,025.47 |
| Non-current assets: | ||
| Loans and advances | ||
| Debt investment | ||
| Other debt investments | ||
| Long-term receivables | 121,735,209.12 | 121,606,587.43 |
| Long-term equity investments | 5,639,466,464.29 | 4,692,648,635.84 |
| Other equity instruments investments | 480,780,000.00 | 480,780,000.00 |
| Other non-current financial assets | ||
| Investment properties | 75,871,489.04 | 80,647,597.48 |
| Fixed assets | 9,728,773,885.88 | 9,612,922,810.28 |
| Project under construction | 1,680,851,141.66 | 1,902,143,354.11 |
| Productive biological assets | ||
| Oil and gas assets | ||
| Right-of-use assets | 167,591,959.38 | 198,220,342.59 |
| Intangible assets | 2,492,220,427.43 | 2,549,096,918.05 |
| Development expenditures | ||
| Goodwill | ||
| Long-term deferred expenses | 42,793.98 | 130,439.66 |
| Deferred income tax assets | 2,379,696,384.14 | 2,131,349,905.21 |
| Other non-current assets | ||
| Total non-current assets | 22,767,029,754.92 | 21,769,546,590.65 |
| Total assets | 72,001,981,826.53 | 56,772,860,616.12 |
| Current liabilities: | ||
| Short-term loans | ||
| Borrowing from the central bank | ||
| Placements from banks and other financial institutions | ||
| Financial liabilities held for trading | ||
| Derivative financial liabilities | ||
| Notes payable | 16,487,079,559.64 | 9,198,593,038.03 |
| Accounts payable | 17,632,426,555.29 | 10,033,608,668.06 |
| Advance receipts | 785,227.42 | 1,861,865.37 |
| Contract liabilities | 1,618,103,749.23 | 1,629,524,704.35 |
| Financial assets sold under agreement to repurchase | ||
| Deposits taking and interbank deposits | ||
| Acting trading securities | ||
| Acting underwriting securities | ||
| Employee compensation payable | 608,021,510.57 | 436,648,178.76 |
| Taxes payable | 306,157,466.06 | 301,211,845.51 |
| Other payables | 5,882,695,835.17 | 6,095,452,748.17 |
| Including: interests payable | ||
| Dividends payable | 171,500.02 | 171,500.02 |
| Handling charges and commissions payable | ||
| Reinsurance accounts payable | ||
| Held-for-sale liabilities | ||
| Current portion of non-current liabilities | 30,986,742.12 | 32,998,374.87 |
| Other current liabilities | 144,682,448.10 | 133,584,259.07 |
| Total current liabilities | 42,710,939,093.60 | 27,863,483,682.19 |
| Non-current liabilities: | ||
| Insurance contract reserve | ||
| Long-term loans | ||
| Bonds payable | ||
| Including: preferred shares | ||
| Perpetual bond | ||
| Lease liabilities | 48,808,071.74 | 54,814,603.06 |
| Long-term payables | ||
| Long-term employee compensation payable | 715,447,579.98 | 707,310,890.43 |
| Estimated liabilities | 949,975,699.48 | 875,468,804.10 |
| Deferred income | 3,018,395,694.23 | 3,121,985,685.93 |
| Deferred income tax liabilities | 431,375,668.15 | 430,369,867.93 |
| Other non-current liabilities | ||
| Total non-current liabilities | 5,164,002,713.58 | 5,189,949,851.45 |
| Total liabilities | 47,874,941,807.18 | 33,053,433,533.64 |
| Owner's equities: | ||
| Share capital | 4,637,332,330.00 | 4,651,965,655.00 |
| Other equity instruments | ||
| Including: preferred shares | ||
| Perpetual bond | ||
| Capital reserves | 10,380,658,208.81 | 10,451,088,236.74 |
| Less: treasury shares | 175,297,320.84 | 267,837,184.11 |
| Other comprehensive incomes | -5,148,664.92 | -5,399,120.81 |
| Special reserves | 368,969,960.15 | 370,420,291.86 |
| Surplus reserves | 3,058,249,602.44 | 3,058,249,602.44 |
| General risk provision | ||
| Undistributed profits | 5,862,275,903.71 | 5,460,939,601.36 |
| Total equity attributable to owners of the parent company | 24,127,040,019.35 | 23,719,427,082.48 |
| Minority equity | ||
| Total owners' equity | 24,127,040,019.35 | 23,719,427,082.48 |
| Total liabilities and owner's equities | 72,001,981,826.53 | 56,772,860,616.12 |
Legal representative: Hu Hanjie Person in charge of accounting: Ji YizhiPerson in charge of the accounting organization: Si Yuzhuo
2. Balance sheet of parent company
Unit: CNY
| Item | June 30, 2023 | January 1, 2023 |
| Current assets: | ||
| Monetary capital | 11,101,392.62 | 5,776,955.29 |
| Financial assets held for trading | ||
| Derivative financial assets | ||
| Notes receivable | ||
| Accounts receivable | ||
| Accounts receivable financing | ||
| Advance payment | ||
| Other receivables | 224,132.76 | 224,132.76 |
| Including: interests receivable | ||
| Dividends receivable | ||
| Inventories | ||
| Contract assets | ||
| Held-for-sale assets | ||
| Current portion of non-current assets | ||
| Other current assets | 232,371.93 | 141,004.41 |
| Total current assets | 11,557,897.31 | 6,142,092.46 |
| Non-current assets: | ||
| Debt investment | ||
| Other debt investments | ||
| Long-term receivables | ||
| Long-term equity investments | 25,808,262,158.37 | 25,580,280,570.19 |
| Other equity instruments investments |
| Other non-current financial assets | ||
| Investment properties | ||
| Fixed assets | ||
| Project under construction | ||
| Productive biological assets | ||
| Oil and gas assets | ||
| Right-of-use assets | ||
| Intangible assets | ||
| Development expenditures | ||
| Goodwill | ||
| Long-term deferred expenses | ||
| Deferred income tax assets | ||
| Other non-current assets | ||
| Total non-current assets | 25,808,262,158.37 | 25,580,280,570.19 |
| Total assets | 25,819,820,055.68 | 25,586,422,662.65 |
| Current liabilities: | ||
| Short-term loans | ||
| Financial liabilities held for trading | ||
| Derivative financial liabilities | ||
| Notes payable | ||
| Accounts payable | 128,702.00 | 964,364.48 |
| Advance receipts | ||
| Contract liabilities | ||
| Employee compensation payable | ||
| Taxes payable | 3,336,769.58 | 3,264,343.98 |
| Other payables | 300,297,162.35 | 298,294,257.75 |
| Including: interests payable | ||
| Dividends payable | 171,500.02 | 171,500.02 |
| Held-for-sale liabilities | ||
| Current portion of non-current liabilities | ||
| Other current liabilities | ||
| Total current liabilities | 303,762,633.93 | 302,522,966.21 |
| Non-current liabilities: | ||
| Long-term loans | ||
| Bonds payable | ||
| Including: preferred shares |
| Perpetual bond | ||
| Lease liabilities | ||
| Long-term payables | ||
| Long-term employee compensation payable | ||
| Estimated liabilities | ||
| Deferred income | ||
| Deferred income tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | ||
| Total liabilities | 303,762,633.93 | 302,522,966.21 |
| Owner's equities: | ||
| Share capital | 4,637,332,330.00 | 4,651,965,655.00 |
| Other equity instruments | ||
| Including: preferred shares | ||
| Perpetual bond | ||
| Capital reserves | 12,201,032,675.61 | 12,278,939,213.88 |
| Less: treasury shares | 175,297,320.84 | 267,837,184.11 |
| Other comprehensive incomes | -226,374.01 | -480,794.77 |
| Special reserves | ||
| Surplus reserves | 1,827,531,841.54 | 1,827,531,841.54 |
| Undistributed profits | 7,025,684,269.45 | 6,793,780,964.90 |
| Total owners' equity | 25,516,057,421.75 | 25,283,899,696.44 |
| Total liabilities and owner's equities | 25,819,820,055.68 | 25,586,422,662.65 |
3. Consolidated profit statement
Unit: CNY
| Item | Semi-annual 2023 | Semi-annual 2022 |
| I. Total operating income | 33,014,661,914.13 | 22,871,535,261.56 |
| Including: operating income | 33,014,661,914.13 | 22,871,535,261.56 |
| Interest income | ||
| Premium earned | ||
| Handling charges and commission income | ||
| II. Total operating cost | 33,178,733,500.55 | 23,120,223,828.02 |
| Including: operating cost | 30,590,523,778.02 | 21,115,050,469.61 |
| Interest expense | ||
| Handling charges and commission expense | ||
| Surrender value | ||
| Net payments for insurance claims | ||
| Net allotment of reserves for insurance liabilities |
| Policy dividend expenditure | ||
| Reinsurance expenses | ||
| Taxes and surcharges | 109,841,569.80 | 106,500,261.51 |
| Sales expenses | 774,822,818.33 | 566,490,728.82 |
| Administrative expenses | 871,161,062.92 | 887,020,116.52 |
| R&D expenses | 1,248,047,703.54 | 1,016,316,222.64 |
| Financial expenses | -415,663,432.06 | -571,153,971.08 |
| Including: interest expenses | 2,201,462.83 | 2,361,612.41 |
| Interest income | 332,873,373.32 | 502,087,676.33 |
| Add: Other incomes | 195,656,370.11 | 230,047,050.32 |
| Investment income (loss to be listed with “-”) | 133,617,879.87 | 203,908,916.41 |
| Including: income from investment in associates and joint ventures | 234,054,148.54 | 281,180,159.71 |
| Gains on derecognition of financial assets at amortized cost | ||
| Foreign exchange gains (loss to be listed with "-") | ||
| Net exposure hedging income (loss to be listed with "-") | ||
| Profit arising from changes in fair value (loss to be listed with "-") | ||
| Credit impairment loss (loss to be listed with “-”) | -35,480,726.08 | -21,826,743.35 |
| Asset impairment loss (loss to be listed with “-”) | -35,324,171.95 | -85,344,746.96 |
| Income from assets disposal (loss to be listed with “-”) | 98,132,494.11 | 42,431.19 |
| III. Operating profit (loss to be listed with "-") | 192,530,259.64 | 78,138,341.15 |
| Add: non-operating income | 9,542,486.79 | 104,058,106.26 |
| Less: non-operating expenses | 3,801,763.81 | 12,214,234.59 |
| IV. Total profit (loss to be listed with "-") | 198,270,982.62 | 169,982,212.82 |
| Less: Income tax expenses | -203,065,319.73 | -171,674.50 |
| V. Net profit (net loss to be listed with "-") | 401,336,302.35 | 170,153,887.32 |
| (I) Classified by continuity of operation | ||
| 1. Net profit from continuing operations (net loss to be listed with "-") | 401,336,302.35 | 170,153,887.32 |
| 2. Net profit from discontinuing operations (net loss to be listed with "-") | ||
| (II) Classified by attribution of the ownership | ||
| 1. Net profit attributable to shareholders of the parent company (net loss to be listed with "-") | 401,336,302.35 | 170,153,887.32 |
| 2. Minority profit and loss (net loss to be listed with “-”) | ||
| VI. Net after-tax amount of other comprehensive income | 250,455.89 | -44,893.81 |
| Net after-tax amount of other comprehensive income | 250,455.89 | -44,893.81 |
| attributable to the owners of the parent company | ||
| (I) Other comprehensive incomes that cannot be reclassified into profits or losses | ||
| 1. Changes arising from re-measurement of the defined benefit plan | ||
| 2. Other comprehensive incomes that cannot be transferred to profits or losses under the equity method | ||
| 3. Changes in fair value of investment in other equity instruments | ||
| 4. Changes in fair value of the Company’s credit risk | ||
| 5. Others | ||
| (II) Other comprehensive incomes that will be reclassified into profits or losses | 250,455.89 | -44,893.81 |
| 1. Other comprehensive incomes that can be transferred to profits or losses under the equity method | 254,420.76 | -46,736.62 |
| 2. Changes in the fair value of other debt investments | ||
| 3. Amount of financial assets reclassified into other comprehensive incomes | ||
| 4. Other debt investment credit impairment provisions | ||
| 5. Cash flow hedging reserve | ||
| 6. Translation difference in foreign currency financial statements | -3,964.87 | 1,842.81 |
| 7. Others | ||
| Net after-tax amount of other comprehensive income attributable to minority shareholders | ||
| VII. Total comprehensive income | 401,586,758.24 | 170,108,993.51 |
| Total comprehensive income attributable to the owners of parent company | 401,586,758.24 | 170,108,993.51 |
| Total comprehensive income attributable to minority shareholders | ||
| VIII. Earnings per share: | ||
| (I) Basic income per share | 0.0872 | 0.0366 |
| (II) Diluted income per share | 0.0872 | 0.0366 |
In case of business merger under common control in the current period, the net profit realized by the combinedparty before the merger and that in the previous period are CNY 0.00.Legal representative: Hu Hanjie Person in charge of accounting:
Ji Yizhi Person in charge of the accounting organization: Si Yuzhuo
4. Profit Statement of parent company
Unit: CNY
| Item | Semi-annual 2023 | Semi-annual 2022 |
| I. Operating income | ||
| Less: operating costs | 1,004,509.14 | 871,274.65 |
| Taxes and surcharges | 92,539.45 | 96,668.40 |
| Sales expenses | ||
| Administrative expenses | 609,861.32 | 793,096.66 |
| R&D expenses | ||
| Financial expenses | 302,108.37 | -18,490.41 |
| Including: interest expenses | 369,423.14 | |
| Interest income | 67,334.77 | 19,230.41 |
| Add: Other incomes | 344,768.40 | 294,909.01 |
| Investment income (loss to be listed with “-”) | 232,563,045.29 | 292,234,106.00 |
| Including: income from investment in associates and joint ventures | 232,563,045.29 | 292,234,106.00 |
| Gains on derecognition of financial assets at amortized cost (loss to be listed with "-") | ||
| Net exposure hedging income (loss to be listed with "-") | ||
| Profit arising from changes in fair value (loss to be listed with "-") | ||
| Credit impairment loss (loss to be listed with “-”) | ||
| Asset impairment loss (loss to be listed with “-”) | ||
| Income from assets disposal (loss to be listed with “-”) | ||
| II. Operating profit (loss to be listed with "-") | 231,903,304.55 | 291,657,740.36 |
| Add: non-operating income | ||
| Less: non-operating expenses | ||
| III. Total profit (total (loss to be listed with "-") | 231,903,304.55 | 291,657,740.36 |
| Less: Income tax expenses | ||
| IV. Net profit (net loss to be listed with "-") | 231,903,304.55 | 291,657,740.36 |
| (I) Net profit from continuing operations (net loss to be listed with "-") | 231,903,304.55 | 291,657,740.36 |
| (II) Net profit from discontinuing operations (net loss to be listed with "-") | ||
| V. Net after-tax amount of other comprehensive incomes | 254,420.76 | -46,736.62 |
| (I) Other comprehensive incomes that cannot be reclassified into profits or losses | ||
| 1. Changes arising from re-measurement of the defined benefit plan | ||
| 2. Other comprehensive incomes that cannot be transferred to profits or losses under the equity method | ||
| 3. Changes in fair value of investment in other equity instruments | ||
| 4. Changes in fair value of the Company’s credit risk | ||
| 5. Others | ||
| (II) Other comprehensive incomes that will be reclassified | 254,420.76 | -46,736.62 |
| into profits or losses | ||
| 1. Other comprehensive incomes that can be transferred to profits or losses under the equity method | 254,420.76 | -46,736.62 |
| 2. Changes in the fair value of other debt investments | ||
| 3. Amount of financial assets reclassified into other comprehensive incomes | ||
| 4. Other debt investment credit impairment provisions | ||
| 5. Cash flow hedging reserve | ||
| 6. Translation difference in foreign currency financial statements | ||
| 7. Others | ||
| VI. Total comprehensive income | 232,157,725.31 | 291,611,003.74 |
| VII. Earnings per share: | ||
| (I) Basic income per share | ||
| (II) Diluted income per share |
5. Consolidated cash flow statement
Unit: CNY
| Item | Semi-annual 2023 | Semi-annual 2022 |
| I. Cash flows from operating activities: | ||
| Cash received from sales of goods and provision of services | 26,509,677,303.11 | 22,972,631,458.07 |
| Net increase in customer bank deposits and due to banks and other financial institutions | ||
| Net increase in borrowings from the central bank | ||
| Net increase in placements from other financial institutions | ||
| Cash from premium of original insurance contract | ||
| Net cash received from reinsurance business | ||
| Net increase in deposits and investments from policyholders | ||
| Cash received from interests, handling charges and commissions | ||
| Net increase in placements from banks and other financial institutions | ||
| Net increase in repurchase business capital | ||
| Net cash received from securities brokerage | ||
| Tax refunds received | 324,144,774.70 | 1,010,974,954.15 |
| Other cash received relating to operating activities | 641,647,622.93 | 845,166,247.90 |
| Subtotal of cash inflows from operating activities | 27,475,469,700.74 | 24,828,772,660.12 |
| Cash paid for goods and services | 16,681,742,834.34 | 20,189,789,863.19 |
| Net increase in loans and advances to customers | ||
| Net increase in deposits with central bank and other financial institutions | ||
| Cash paid for original insurance contract claims | ||
| Net increase in loans to banks and other financial institutions |
| Cash paid for interests, handling charges and commissions | ||
| Cash paid for policyholder dividend | ||
| Cash paid to and on behalf of employees | 2,351,935,403.71 | 2,288,542,182.41 |
| Taxes paid | 775,864,015.70 | 70,848,814.67 |
| Cash paid for other operating activities | 951,768,069.52 | 836,454,073.22 |
| Subtotal of cash outflows from operating activities | 20,761,310,323.27 | 23,385,634,933.49 |
| Net cash flows from operating activities | 6,714,159,377.47 | 1,443,137,726.63 |
| II. Cash flows from investment activities: | ||
| Cash received from the return of investment | ||
| Cash received from acquirement of investment income | 11,728,790.64 | 6,300,012.21 |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 3,224,430.67 | 3,519,331.24 |
| Net cash received from the disposal of subsidiaries and other business entities | ||
| Cash received from other investment activities | 368,529,711.02 | 441,265,670.20 |
| Subtotal of cash inflows from investment activities | 383,482,932.33 | 451,085,013.65 |
| Cash paid to acquire fixed assets, intangible assets and other long-term assets | 798,231,104.91 | 1,125,719,469.03 |
| Cash paid to acquire investments | 546,943,104.33 | 0.00 |
| Net increase in pledged loans | ||
| Net cash paid to acquire subsidiaries and other business units | ||
| Other cash paid relating to investment activities | ||
| Subtotal of cash outflows from investment activities | 1,345,174,209.24 | 1,125,719,469.03 |
| Net cash flows from investment activities | -961,691,276.91 | -674,634,455.38 |
| III. Cash flows from financing activities: | ||
| Cash received from absorbing investment | ||
| Including: cash received by subsidiaries absorbing minority shareholders' investments | ||
| Cash received from borrowings | ||
| Cash received relating to other financing activities | ||
| Subtotal of cash inflows from financing activities | ||
| Cash paid for repayment of debts | ||
| Cash paid for distribution of dividends, profits or interest repayment | 3,025,174,498.45 | |
| Including: dividends and profits paid to minority shareholders by subsidiaries | ||
| Other cash paid relating to financing activities | 19,709,605.31 | 15,922,921.74 |
| Subtotal of cash outflows from financing activities | 19,709,605.31 | 3,041,097,420.19 |
| Net cash flows from financing activities | -19,709,605.31 | -3,041,097,420.19 |
| IV. Effects from change of exchange rate on cash and cash equivalents | 10,253.58 | 0.00 |
| V. Net increase in cash and cash equivalents | 5,732,768,748.83 | -2,272,594,148.94 |
| Add: opening balance of cash and cash equivalents | 20,697,669,726.18 | 30,542,676,891.89 |
| VI. Ending Balance of cash and cash equivalents | 26,430,438,475.01 | 28,270,082,742.95 |
6. Cash flow statement of parent company
Unit: CNY
| Item | Semi-annual 2023 | Semi-annual 2022 |
| I. Cash flows from operating activities: | ||
| Cash received from sales of goods and provision of services | ||
| Tax refunds received | 735,000.75 | |
| Other cash received relating to operating activities | 98,280,887.47 | 3,032,128,468.42 |
| Subtotal of cash inflows from operating activities | 98,280,887.47 | 3,032,863,469.17 |
| Cash paid for goods and services | ||
| Cash paid to and on behalf of employees | 189,000.00 | 207,000.00 |
| Taxes paid | 96,728.40 | 96,728.40 |
| Cash paid for other operating activities | 97,575,865.50 | 834,581.41 |
| Subtotal of cash outflows from operating activities | 97,861,593.90 | 1,138,309.81 |
| Net cash flows from operating activities | 419,293.57 | 3,031,725,159.36 |
| II. Cash flows from investment activities: | ||
| Cash received from the return of investment | ||
| Cash received from acquirement of investment income | 4,835,877.87 | |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | ||
| Net cash received from the disposal of subsidiaries and other business entities | ||
| Cash received from other investment activities | 67,334.77 | 19,230.41 |
| Subtotal of cash inflows from investment activities | 4,903,212.64 | 19,230.41 |
| Cash paid to acquire fixed assets, intangible assets and other long-term assets | ||
| Cash paid to acquire investments | ||
| Net cash paid to acquire subsidiaries and other business units | ||
| Other cash paid relating to investment activities | ||
| Subtotal of cash outflows from investment activities | ||
| Net cash flows from investment activities | 4,903,212.64 | 19,230.41 |
| III. Cash flows from financing activities: | ||
| Cash received from absorbing investment | ||
| Cash received from borrowings | ||
| Cash received relating to other financing activities | ||
| Subtotal of cash inflows from financing activities | ||
| Cash paid for repayment of debts | ||
| Cash paid for distribution of dividends, profits or interest repayment | 3,025,174,498.45 | |
| Other cash paid relating to financing activities | ||
| Subtotal of cash outflows from financing activities | 3,025,174,498.45 | |
| Net cash flows from financing activities | -3,025,174,498.45 | |
| IV. Effects from change of exchange rate on cash and cash equivalents | ||
| V. Net increase in cash and cash equivalents | 5,322,506.21 | 6,569,891.32 |
| Add: opening balance of cash and cash equivalents | 4,235,008.50 | 8,109,077.01 |
| VI. Ending Balance of cash and cash equivalents | 9,557,514.71 | 14,678,968.33 |
7. Consolidated statement of changes in owners' equity
Amount in the current period Unit: CNY
| Item | Semi-annual 2023 | ||||||||||||||
| Equity Attributable To Owners Of The Parent Company | Minority Equity | Total Owners' Equity | |||||||||||||
| Share Capital | Other equity Instruments | Capital Reserves | Less: Treasury Shares | Other Comprehensive Incomes | Special Reserves | Surplus Reserves | General Risk Provision | Undistributed Profits | Others | Subtotal | |||||
| Preferred Shares | Perpetual Bond | Others | |||||||||||||
| I. Ending Balance of the previous year | 4,651,965,655.00 | 10,451,088,236.74 | 267,837,184.11 | -5,399,120.81 | 370,420,291.86 | 3,058,249,602.44 | 5,460,939,601.36 | 23,719,427,082.48 | 23,719,427,082.48 | ||||||
| Add: changes in accounting policies | |||||||||||||||
| Correction of prior period errors | |||||||||||||||
| Business merger under common control | |||||||||||||||
| Others | |||||||||||||||
| II. Opening Balance of the current year | 4,651,965,655.00 | 10,451,088,236.74 | 267,837,184.11 | -5,399,120.81 | 370,420,291.86 | 3,058,249,602.44 | 5,460,939,601.36 | 23,719,427,082.48 | 23,719,427,082.48 | ||||||
| III. Increase/decrease in amount of the current period (decrease to be listed with "-") | -14,633,325.00 | -70,430,027.93 | -92,539,863.27 | 250,455.89 | -1,450,331.71 | 401,336,302.35 | 407,612,936.87 | 407,612,936.87 | |||||||
| (I) Total comprehensive income | 250,455.89 | 401,336,302.35 | 401,586,758.24 | 401,586,758.24 | |||||||||||
| (II) Invested and decreased capital of owners | -14,633,325.00 | -70,430,027.93 | -92,539,863.27 | 7,476,510.34 | 7,476,510.34 | ||||||||||
| 1. Ordinary shares invested | -14,633,325.00 | -77,906,538.27 | -92,539,863.27 | -92,539,863.27 | |||||||||||
| by owners | |||||||||||||||
| 2. Capital contributed by holders of other equity instruments | |||||||||||||||
| 3. Amounts of share-based payments recorded in owner's equity | 7,500,283.02 | 7,500,283.02 | 7,500,283.02 | ||||||||||||
| 4. Others | -23,772.68 | -92,539,863.27 | 92,516,090.59 | 92,516,090.59 | |||||||||||
| (III) Profit distribution | |||||||||||||||
| 1. Appropriation to surplus reserves | |||||||||||||||
| 2. Appropriation to general risk reserves | |||||||||||||||
| 3. Distribution to owners (or shareholders) | |||||||||||||||
| 4. Others | |||||||||||||||
| (IV) Internal carryover of owners' equity | |||||||||||||||
| 1. Transfer from capital reserve to paid-in capital (or share capital) | |||||||||||||||
| 2. Transfer from surplus reserves to paid-in capital (or share capital) | |||||||||||||||
| 3. Recovery of losses by surplus reserves | |||||||||||||||
| 4. Retained earnings carried |
| forward from changes in defined benefit plans | |||||||||||||||
| 5. Retained earnings carried forward from other comprehensive income | |||||||||||||||
| 6. Others | |||||||||||||||
| (V) Special reserves | -1,450,331.71 | -1,450,331.71 | -1,450,331.71 | ||||||||||||
| 1. Appropriation in the current period | 15,046,812.40 | 15,046,812.40 | 15,046,812.40 | ||||||||||||
| 2. Use in the current period | -16,497,144.11 | -16,497,144.11 | -16,497,144.11 | ||||||||||||
| (VI) Others | |||||||||||||||
| IV. Ending Balance of the current period | 4,637,332,330.00 | 10,380,658,208.81 | 175,297,320.84 | -5,148,664.92 | 368,969,960.15 | 3,058,249,602.44 | 5,862,275,903.71 | 24,127,040,019.35 | 24,127,040,019.35 |
Amount of the previous year Unit: CNY
| Item | Semi-annual 2022 | ||||||||||||||
| Equity Attributable To Owners of the Parent Company | Minority Equity | Total Owners' Equity | |||||||||||||
| Share Capital | Other Equity Instruments | Capital Reserves | Less: Treasury Shares | Other Comprehensive Incomes | Special Reserves | Surplus Reserves | General Risk Provision | Undistributed Profits | Others | Subtotal | |||||
| Preferred Shares | Perpetual Bond | Others | |||||||||||||
| I. Ending Balance of the previous year | 4,654,114,613.00 | 10,439,365,093.18 | 310,460,486.38 | -32,794,902.20 | 315,398,148.75 | 2,742,214,904.83 | 8,434,403,352.08 | 26,242,240,723.26 | 26,242,240,723.26 | ||||||
| Add: changes in accounting policies | |||||||||||||||
| Correction of prior period errors | |||||||||||||||
| Business merger under common control | |||||||||||||||
| Others | |||||||||||||||
| II. Opening Balance of the current year | 4,654,114,613.00 | 10,439,365,093.18 | 310,460,486.38 | -32,794,902.20 | 315,398,148.75 | 2,742,214,904.83 | 8,434,403,352.08 | 26,242,240,723.26 | 26,242,240,723.26 | ||||||
| III. Increase/decrease in amount of the current period (decrease to be listed with "-") | 30,324,031.20 | -28,891,460.65 | -44,893.81 | 41,930,677.86 | -2,855,020,611.13 | -2,753,919,335.23 | -2,753,919,335.23 | ||||||||
| (I) Total comprehensive income | -44,893.81 | 170,153,887.32 | 170,108,993.51 | 170,108,993.51 | |||||||||||
| (II) Invested and decreased capital of owners | 30,324,031.20 | -28,891,460.65 | 59,215,491.85 | 59,215,491.85 | |||||||||||
| 1. Ordinary shares invested by owners | |||||||||||||||
| 2. Capital contributed by holders of other equity instruments | |||||||||||||||
| 3. Amounts of |
| share-based payments recorded in owner's equity | |||||||||||||||
| 4. Others | 30,324,031.20 | -28,891,460.65 | 59,215,491.85 | 59,215,491.85 | |||||||||||
| (III) Profit distribution | -3,025,174,498.45 | -3,025,174,498.45 | -3,025,174,498.45 | ||||||||||||
| 1. Appropriation to surplus reserves | |||||||||||||||
| 2. Appropriation to general risk reserves | |||||||||||||||
| 3. Distribution to owners (or shareholders) | -3,025,174,498.45 | -3,025,174,498.45 | -3,025,174,498.45 | ||||||||||||
| 4. Others | |||||||||||||||
| (IV) Internal carryover of owners' equity | |||||||||||||||
| 1. Transfer from capital reserve to paid-in capital (or share capital) | |||||||||||||||
| 2. Transfer from surplus reserves to paid-in capital (or share capital) |
| 3. Recovery of losses by surplus reserves | |||||||||||||||
| 4. Retained earnings carried forward from changes in defined benefit plans | |||||||||||||||
| 5. Retained earnings carried forward from other comprehensive income | |||||||||||||||
| 6. Others | |||||||||||||||
| (V) Special reserves | 41,930,677.86 | 41,930,677.86 | 41,930,677.86 | ||||||||||||
| 1. Appropriation in the current period | 53,753,366.46 | 53,753,366.46 | 53,753,366.46 | ||||||||||||
| 2. Use in the current period | 11,822,688.60 | 11,822,688.60 | 11,822,688.60 | ||||||||||||
| (VI) Others | |||||||||||||||
| IV. Ending Balance of the current period | 4,654,114,613.00 | 10,469,689,124.38 | 281,569,025.73 | -32,839,796.01 | 357,328,826.61 | 2,742,214,904.83 | 5,579,382,740.95 | 23,488,321,388.03 | 23,488,321,388.03 |
8. Statement of Changes in Owners' Equity of Parent Company
Amount in the current period
Unit: CNY
| Item | Semi-annual 2023 | |||||||||||
| Share Capital | Other Equity Instruments | Capital Reserves | Less: Treasury Shares | Other Comprehensive Incomes | Special Reserves | Surplus Reserves | Undistributed Profits | Others | Total Owners' Equity | |||
| Preferred Shares | Perpetual Bond | Others | ||||||||||
| I. Ending Balance of the previous year | 4,651,965,655.00 | 12,278,939,213.88 | 267,837,184.11 | -480,794.77 | 1,827,531,841.54 | 6,793,780,964.90 | 25,283,899,696.44 | |||||
| Add: changes in accounting policies | ||||||||||||
| Correction of prior period errors | ||||||||||||
| Others | ||||||||||||
| II. Opening Balance of the current year | 4,651,965,655.00 | 12,278,939,213.88 | 267,837,184.11 | -480,794.77 | 1,827,531,841.54 | 6,793,780,964.90 | 25,283,899,696.44 | |||||
| III. Increase/decrease in amount of the current period (decrease to be listed with "-") | -14,633,325.00 | -77,906,538.27 | -92,539,863.27 | 254,420.76 | 231,903,304.55 | 232,157,725.31 | ||||||
| (I) Total comprehensive income | 254,420.76 | 231,903,304.55 | 232,157,725.31 | |||||||||
| (II) Invested and decreased capital | -14,633,325.00 | -77,906,538.27 | -92,539,863.27 | 0.00 | ||||||||
| of owners | ||||||||||||
| 1. Ordinary shares invested by owners | -14,633,325.00 | -77,906,538.27 | -92,539,863.27 | |||||||||
| 2. Capital contributed by holders of other equity instruments | ||||||||||||
| 3. Amounts of share-based payments recorded in owner's equity | ||||||||||||
| 4. Others | -92,539,863.27 | 92,539,863.27 | ||||||||||
| (III) Profit distribution | ||||||||||||
| 1. Appropriation to surplus reserves | ||||||||||||
| 2. Distribution to owners (or shareholders) | ||||||||||||
| 3. Others | ||||||||||||
| (IV) Internal carryover of owners' equity | ||||||||||||
| 1. Transfer from capital reserve to paid-in capital (or share capital) | ||||||||||||
| 2. Transfer from surplus reserves to paid-in capital (or share capital) |
| 3. Recovery of losses by surplus reserves | ||||||||||||
| 4. Retained earnings carried forward from changes in defined benefit plans | ||||||||||||
| 5. Retained earnings carried forward from other comprehensive income | ||||||||||||
| 6. Others | ||||||||||||
| (V) Special reserves | ||||||||||||
| 1. Appropriation in the current period | ||||||||||||
| 2. Use in the current period | ||||||||||||
| (VI) Others | ||||||||||||
| IV. Ending Balance of the current period | 4,637,332,330.00 | 12,201,032,675.61 | 175,297,320.84 | -226,374.01 | 1,827,531,841.54 | 7,025,684,269.45 | 25,516,057,421.75 |
Amount of the previous year
Unit: CNY
| Item | Semi-annual 2022 | |||||||||||
| Share Capital | Other Equity Instruments | Capital Reserves | Less: Treasury Shares | Other Comprehensive Incomes | Special Reserves | Surplus Reserves | Undistributed Profits | Others | Total Owners' Equity | |||
| Preferred Shares | Perpetual Bond | Others | ||||||||||
| I. Ending Balance of the previous year | 4,654,114,613.00 | 12,267,337,664.44 | 310,460,486.38 | 304,113.31 | 1,511,497,143.93 | 6,974,643,184.91 | 25,097,436,233.21 | |||||
| Add: changes in accounting policies | ||||||||||||
| Correction of prior period errors | ||||||||||||
| Others | ||||||||||||
| II. Opening Balance of the current year | 4,654,114,613.00 | 12,267,337,664.44 | 310,460,486.38 | 304,113.31 | 1,511,497,143.93 | 6,974,643,184.91 | 25,097,436,233.21 | |||||
| III. Increase/decrease in amount of the current period (decrease to be listed with "-") | -28,891,460.65 | -46,736.62 | -2,733,516,758.09 | -2,704,672,034.06 | ||||||||
| (I) Total comprehensive income | -46,736.62 | 291,657,740.36 | 291,611,003.74 | |||||||||
| (II) Invested and decreased capital of owners | -28,891,460.65 | 28,891,460.65 | ||||||||||
| 1. Ordinary shares invested | ||||||||||||
| by owners | ||||||||||||
| 2. Capital contributed by holders of other equity instruments | ||||||||||||
| 3. Amounts of share-based payments recorded in owner's equity | ||||||||||||
| 4. Others | -28,891,460.65 | 28,891,460.65 | ||||||||||
| (III) Profit distribution | -3,025,174,498.45 | -3,025,174,498.45 | ||||||||||
| 1. Appropriation to surplus reserves | ||||||||||||
| 2. Distribution to owners (or shareholders) | -3,025,174,498.45 | -3,025,174,498.45 | ||||||||||
| 3. Others | ||||||||||||
| (IV) Internal carryover of owners' equity | ||||||||||||
| 1. Transfer from capital reserve to paid-in capital (or share capital) | ||||||||||||
| 2. Transfer from surplus reserves to paid-in capital (or share capital) | ||||||||||||
| 3. Recovery of losses by surplus reserves |
| 4. Retained earnings carried forward from changes in defined benefit plans | ||||||||||||
| 5. Retained earnings carried forward from other comprehensive income | ||||||||||||
| 6. Others | ||||||||||||
| (V) Special reserves | ||||||||||||
| 1. Appropriation in the current period | ||||||||||||
| 2. Use in the current period | ||||||||||||
| (VI) Others | ||||||||||||
| IV. Ending Balance of the current period | 4,654,114,613.00 | 12,267,337,664.44 | 281,569,025.73 | 257,376.69 | 1,511,497,143.93 | 4,241,126,426.82 | 22,392,764,199.15 |
III. Company Profile
1. Overview
FAW JIEFANG GROUP CO., LTD., formerly known as FAW Car Co., Ltd., is a limited liability companyregistered in Changchun City, Jilin Province.FAW Car was approved by TGS [1997] No. 55 Document of the State Commission for Restructuring theEconomic Systems in 1997 and established exclusively by CHINA FAW GROUP CO., LTD. On June 18, 1997,FAW Car was approved by the China Securities Regulatory Commission to issue shares publicly and listed onthe Shenzhen Stock Exchange for circulation.On April 9, 2012, FAW Group invested 862,983,689 shares of FAW Car into FAW as its capital contribution,and received the Confirmation of Securities Transfer Registration issued by China Securities Depository &Clearing Co., Ltd. Shenzhen Branch on the same day.On November 28, 2019, FAW Car held the 10
th meeting of the 8
th
Board of Directors, and reviewed andapproved the adjustment plan for major asset restructuring. After the adjustment, FAW Car transferred all itsassets and liabilities except the equity and some reserved assets of First Automobile Finance Co., Ltd. andSanguard Automobile Insurance Co., Ltd. to FAW Bestune, and then replaced 100% equity of FAW BestuneCar Co., Ltd. with the equivalent part of 100% equity of FAW Jiefang Automotive Co., Ltd. held by FAW. Atthe same time, FAW Car purchased the difference between the purchased assets and the sold assets from FAWby issuing shares and paying cash.On March 12, 2020, FAW Car received the Reply on Approving the Major Asset Restructuring of FAW Car Co.,Ltd. and Issuing Shares to China FAW Co., Ltd. for Asset Purchase (ZJXK [2020] No. 352) issued by the ChinaSecurities Regulatory Commission, and China Securities Regulatory Commission reviewed and approved themajor asset replacement, share issuance and cash payment for assets purchase and related transactions of FAWCar.The Capital Verification Report (XYZH/2020BJA100417) issued by ShineWing Accounting Firm (specialgeneral partnership) indicates that, as of March 19, 2020, all proposed purchased assets, i.e., 100% equity ofJiefang Limited, to be replaced by FAW Car to FAW by issuing shares had been transferred to FAW Car. Theindustrial and commercial change registration procedures of Jiefang Limited had been completed, all proposedassets, i.e., 100% equity of FAW Bestune, had been transferred to FAW, and the industrial and commercialchange registration procedures of FAW Bestune had been completed. The registered capital of FAW Car isCNY 4,609,666,212.00 after this change.
In May 2020, the name of FAW Car was changed to "FAW JIEFANG GROUP CO., LTD." and the stockabbreviation was changed to "FAW Jiefang".On January 11, 2021, the Company held the first 2021 extraordinary shareholders' meeting, and reviewed andapproved the Proposal on the Restricted Share Incentive Plan of FAW Jiefang Group Co., Ltd. (Draft) and ItsAbstract, the Proposal on the Regulations for the Implementation Assessment of Restricted Share Incentive Planof FAW Jiefang Group Co., Ltd., the Proposal on the Regulations for Restricted Share Incentive of FAWJiefang Group Co., Ltd., and the Proposal on Requesting the Shareholders Meeting to Authorize the Board ofDirectors to Handle Matters Related to the Company's Restricted Share Incentive Plan. On January 15, 2021,the Company held the 12
th meeting of the 9
thBoard of Directors, and reviewed and approved the Proposal onAdjusting the List of the First Batch of Incentive Objects and the Number of Grants in the Phase I RestrictedShare Incentive Plan and the Proposal on Granting Restricted Shares to the Incentive Objects of the Phase IRestricted Share Incentive Plan for the First Time. Nine directors and senior executives, including Hu Hanjie,Zhu Qixin, Zhang Guohua, Wang Ruijian, Shang Xingwu, Ou Aimin, Kong Dejun, Wu Bilei and Wang Jianxun,and 310 other core employees with the title of senior director and above were granted to subscribe for40,987,657 new shares of the Company at an issue price of CNY 7.54 per share, and the registered capital of theCompany was changed to CNY 4,650,653,869.00. This change was verified by the Capital Verification Report(ZTYZ (2021) No. 110C000033) issued by Grant Thornton Accounting Firm (special general partnership). OnFebruary 1, 2021, the Company disclosed the Announcement on the Completion of the First Grant Registrationof Phase I Restricted Share Incentive Plan.On December 9, 2021, the Company held the 20
th meeting of the 9
th Board of Directors and the 19
thmeeting ofthe 9thBoard of Supervisors, and reviewed and approved the Proposal on Granting Reserved Part of RestrictedShares in the Phase I Restricted Share Incentive Plan to Incentive Objects and the Proposal on Repurchase andCancellation of Partial Restricted Shares in the Phase I Restricted Share Incentive Plan respectively. Thirty-three core technicians and management backbones, including Wang Manhong, Zhang Yu and Qu Yi, subscribedfor 3,721,601 new shares at an issue price of CNY 6.38/share, and 260,857 shares were repurchased at a priceof CNY 7.04/share from 2 employees who were no longer eligible for incentive objects. The registered capitalof the Company was changed to CNY 4,654,114,613.00. This change was verified by the Capital VerificationReport (ZTYZ (2021) No. 110C000927) issued by Grant Thornton Accounting Firm (special generalpartnership). On January 6, 2022, the Company disclosed the Announcement on the Completion of Registrationof the Grant of Reserved Part of Restricted Shares in the Phase I Restricted Share Incentive Plan. On January17, 2022, the Company disclosed the Announcement on the Completion of Repurchase and Cancellation ofSome Restricted Shares.
On August 29, 2022, the Company held the 26
th
meeting of the 9
th Board of Directors and the 23
rdmeeting ofthe 9th
Board of Supervisors, and reviewed and approved the Proposal on Repurchase and Cancellation ofPartial Restricted Shares in the Phase I Restricted Share Incentive Plan. It was agreed to repurchase 789,711shares at a price of CNY 6.39/share from 6 employees who are no longer qualified as incentive objects, and theregistered capital of the Company was changed to CNY 4,653,324,902.00. This change was verified accordingto the Capital Verification Report (XYZH/2022CCAA2B0016) issued by ShineWing Accounting Firm (specialgeneral partnership). On November 14, 2022, the Company disclosed the Announcement on Completion ofRepurchase and Cancellation of Some Restricted Shares.On October 28, 2022, the Company held the 28
th meeting of the 9
th Board of Directors and the 24
th
meeting ofthe 9
th
Board of Supervisors, and reviewed and approved the Proposal on Repurchase and Cancellation ofPartial Restricted Shares in the Phase I Restricted Share Incentive Plan, and agreed to repurchase 1,359,247shares at a price of CNY 6.39/share from 11 employees who are no longer qualified as incentive objects. Theregistered capital of the Company was changed to CNY 4,651,965,655.00. This change was verified accordingto the Capital Verification Report (XYZH/2023CCAA2B0001) issued by ShineWing Accounting Firm (specialgeneral partnership). On January 17, 2023, the Company disclosed the Announcement on Completion ofRepurchase and Cancellation of Some Restricted Shares.On December 15, 2022, the Company held the 30
th meeting of the 9
th Board of Directors and the 26
th
meeting ofthe 9
th
Board of Supervisors, and reviewed and approved the Proposal on Repurchase and Cancellation ofPartial Restricted Shares in the Phase I Restricted Share Incentive Plan, and agreed to repurchase 723,435shares at a price of CNY 6.39/share or 5.73/share from 6 employees who are no longer qualified as incentiveobjects. The registered capital of the Company was changed to CNY 4,651,242,220. This change was verifiedaccording to the Capital Verification Report (XYZH/2023CCAA2B0103) issued by ShineWing AccountingFirm (special general partnership). On April 28, 2023, the Company disclosed the Announcement onCompletion of Repurchase and Cancellation of Some Restricted Shares.On March 31, 2023, the Company held the 32
nd Meeting of the 9
th Board of Directors and the 28
thMeeting ofthe 9
th
Board of Supervisors to deliberate and approve the Proposal on Unsuccessful Lifting of Conditions of theSecond Release Period First Granted by the Phase I Restricted Share Incentive Plan for Releasing theRestricted Sales and of Conditions of the First Release Period Reserved by the Phase I Restricted ShareIncentive Plan for Releasing the Restricted Sales and Repurchase and Write-off of Some Restricted Shares,agreeing to repurchase 13,909,890 shares from 327 employees no longer qualified as incentive objects at a priceof CNY 6.39/share or CNY 5.73/share respectively. The registered capital of the Company is changed to CNY4,637,332,330. This change was verified according to the Capital Verification Report
(XYZH/2023CCAA2B0175) issued by ShineWing Accounting Firm (special general partnership). On June 30,2023, the Company disclosed the Announcement on Completion of Repurchase and Cancellation of SomeRestricted Shares.The Company establishes a corporate governance structure consisting of the Shareholders' Meeting, the Boardof Directors and the Board of Supervisors, and has one wholly-owned subsidiary, Jiefang Limited. JiefangLimited has five wholly-owned subsidiaries, including FAW Jiefang (Qingdao) Automotive Co., Ltd., WuxiDahao Power Co., Ltd., FAW Jiefang Dalian Diesel Engine Co., Ltd., FAW Jiefang Austria R&D Co., Ltd., andFAW Jiefang New Energy Automotive Sales Co., Ltd. It also has 11 associated companies, including FirstAutomobile Finance Co., Ltd., Sanguard Automobile Insurance Co., Ltd., Changchun Baoyou Jiefang SteelProcessing and Distribution Co., Ltd., FAW Changchun Ansteel Steel Processing and Distribution Co., Ltd.,Changchun Wabco Automotive Control System Co., Ltd., Suzhou Zhito Technology Co., Ltd., Jiefang Fujie(Tianjin) Science and Technology Industry Co., Ltd., Yukuai Chuangling Intelligent Technology (Nanjing) Co.,Ltd., Foshan Diyi Element New Energy Technology Co., Ltd., Jiefang Times New Energy Technology Co., Ltd.,and Changchun Automotive Test Center Co., Ltd.Business scope of the Company: R&D, production and sales of medium and heavy trucks, vehicles, buses, buschassis, medium truck deformation vehicles, automobile assemblies and parts, machining, diesel engines andaccessories (non-vehicle), mechanical equipment and accessories, instruments, technical services, technicalconsultation, installation and maintenance of mechanical equipment, lease of mechanical equipment andfacilities, lease of houses and workshops, labor services (excluding foreign labor cooperation and domesticlabor dispatch), sales of steel, automobile trunks, hardware & electrical equipment and electronic products,testing of internal combustion engine, engineering technology research and testing, advertising design,production and release, import and export of goods and technologies (excluding publication import business andcommodities and technologies restricted or prohibited for import and export by the state); (the following itemsare operated by the branch company) Chinese food production and sales, warehousing and logistics (excludingflammable, explosive and precursor dangerous chemicals), automobile repair, tank manufacturing of chemicalliquid tanker, automobile trunk manufacturing (items subject to approval according to law can be operated onlyafter being approved by relevant authorities).Registered address of the Company: No. 2259, Dongfeng Street, Changchun Automobile Development Zone,Jilin Province.The legal representative of the Company is Hu Hanjie.The financial statements and notes to the financial statements were approved for issue by the Board of Directorsof the Company on August 29, 2023.
2. Scope of Consolidated Financial Statements
During the reporting period, the Company has 1 secondary subsidiary and 6 tertiary subsidiaries included in thescope of consolidation. For details, please refer to VIII "Changes in Consolidation Scope" and IX "Equity inOther Entities" of Section X - Financial Report.IV. Basis of Preparation for Financial Statements
1. Preparation basis
The financial statements are prepared according to the Accounting Standards for Business Enterprises issued bythe Ministry of Finance and its application guidelines, interpretations and other relevant provisions (hereinaftercollectively referred to as "ASBE"). In addition, the Company also discloses relevant financial informationaccording to the Disclosure of Company Information Disclosure Rules No. 15. - General Provisions onFinancial Reporting (revised in 2014) issued by China Securities Regulatory Commission.
2. Continuing operations
The financial statements are presented on continuing operations.The financial accounting of the Company is based on the accrual basis. The financial statements are prepared ona historical cost basis except for certain financial instruments. If the assets are impaired, the correspondingimpairment provision shall be made as specified.
V. Significant Accounting Policies and Accounting EstimatesTips for specific accounting policies and accounting estimates:
The Company determines the depreciation of fixed assets, amortization of intangible assets, capitalizationconditions of R&D expenses and income recognition policies according to its own production and operationcharacteristics. For specific accounting policies, please see 22, 25 and 33 in V "Significant Accounting Policiesand Accounting Estimates" in Section X - Financial Report.
1. Statement of compliance with accounting standards for business enterprisesThe financial statements prepared by the Company met the requirements of ASBE and truly and fully reflectedthe consolidated and company’s financial position of the Company as of June 30, 2023, and information such asconsolidated and company’s operating results and consolidated and company’s cash flow for 2023 H1.
2. Accounting period
The accounting period of the Company is a calendar year, namely, from January 1 to December 31 every year.
3. Operating cycle
The operating cycle of the Company is 12 months.
4. Recording currency
The Company and its domestic subsidiaries use CNY as their recording currency. The overseas subsidiaries ofthe Company determine EUR as the recording currency according to the currency in the main economicenvironment in which they operate. The Company uses CNY to prepare the financial statements.
5. Accounting treatment method for business merger under common control and different control
(1) Business merger under common control
As to the business merger under common control, the assets and liabilities of the combined party obtained bythe combining party are calculated in the book value in the consolidated financial statements of the ultimatecontroller by the combined party on the combination date. The capital reserve (stock premium) is adjustedbased on the difference between the book value of the combination consideration and the book value of the netassets obtained in the combination. The retained earnings are adjusted if the capital reserve (stock premium) isinsufficient for offset.Business merger under common control realized step-by-step through multiple transactionsIn individual financial statements, the share of book value of the combined party's net assets in the consolidatedfinancial statements of the ultimate controlling party on the combination date calculated based on theshareholding proportion on the combination date is taken as the initial cost of the investment. The capitalreserve (stock premium) is adjusted based on the difference between the initial investment cost and the sum ofthe book value of the pre-combination investment and the book value of the newly paid consideration on thecombination date, and the retained earnings are adjusted if the capital reserve is insufficient for offset.In the consolidated financial statements, the assets and liabilities of the combined party obtained by thecombining party in the combination are measured based on the book value of the ultimate controlling party inthe consolidated financial statements on the combination date. The capital reserve (stock premium) is adjustedbased on the difference between the sum of the book value of the pre-combination investment and the bookvalue of the newly paid consideration on the combination date and the book value of the net assets obtained inthe combination. The retained earnings are adjusted if the capital reserve is insufficient for offset. The long-termequity investment held before the acquisition of the combined party’s control by the combining party and the
profit or loss, other comprehensive incomes and changes in other owners’ equities that have been recognizedduring the period from the date of acquisition of the original equity, or the date of common control of thecombining party and the combined entity (which is later) to the combination date shall offset against theretained opening earnings or current profit or loss respectively during the period of comparative statement.
(2) Business merger under different control
In case of business merger under different control, the combination cost is the fair value of assets paid,liabilities incurred or assumed and equity securities issued on the acquisition date for acquiring the control overthe acquiree. The assets, liabilities and contingent liabilities of the acquiree obtained are recognized as per thefair value on the acquisition date.Where the combination cost is greater than the fair value of identifiable net assets obtained from the acquiree,the difference shall be recognized as goodwill and subsequently measured by deducting the accumulateddepreciation provision by cost; Where the combination cost is less than the fair value of identifiable net assetsobtained from the acquiree, the difference shall be included in current profits and losses after review.Business merger not under common control realized step-by-step through multiple transactionsIn the separate financial statement, the sum of the book value of the equity investment of the acquiree heldbefore the acquisition date and the new investment cost on the acquisition date shall be recognized as the initialinvestment cost for this investment. For other comprehensive incomes from original equity investmentsrecognized by the equity method before the purchase date, they are not disposed of. This investment is disposedof on the same basis as the investee directly disposing of related assets and liabilities. The owners’ equityrecognized due to changes in other owners’ equities of the investee other than net profit or loss, othercomprehensive incomes and profit distribution, are transferred into the current profits or losses when thisinvestment is disposed of. If the equity investment held before the acquisition date is measured at fair value, theaccumulated changes in fair value originally included in other comprehensive income are transferred to retainedearnings when the cost method is adopted for calculation.In the consolidated financial statements, the combination cost is the sum of the consideration paid on theacquisition date and the fair value of the acquiree's equity has already held before the acquisition date on theacquisition date. The acquiree's equity held before the acquisition date shall be remeasured at fair value of theequity on the acquisition date. The difference between the fair value and its book value shall be included ininvestment income for the current period. If the acquiree's equity held before the acquisition date involves othercomprehensive income, changes in other owner's equities shall be transformed into the current profit on the
acquisition date, except for other comprehensive incomes generated due to remeasuring the change in netliabilities or new assets of defined benefit plan by the investee.
(3) Disposal of related handling charges for business merger
The overhead for the business merger of the combining party, including the expenses for audit, legal services,assessment, and other administrative expenses, shall be recorded in current profits and losses when they occur.The transaction expenses of the equity securities or liability securities issued as the consideration for thecombination shall be recorded as the initial recognition amount of the equity securities or liability securities.
6. Preparation methods of consolidated financial statements
(1) Consolidation scope
The scope of consolidated financial statements is determined on the basis of control. Control refers to the powerof the Company over the investee, with which the Company enjoys variable returns through participating inrelated activities of the investee and is able to influence its amount of return with the power over the investee.Subsidiaries refer to entities controlled by the Company (including enterprises, separable parts of investees,structured entities, etc.)
(2) Preparation methods of consolidated financial statements
The consolidated financial statements are prepared by the Company based on the financial statements of theCompany and its subsidiaries and with other relevant data. The major accounting policies and accountingperiods adopted by the subsidiaries are defined as the same as those of the Company during the preparation ofthe consolidated financial statements. The significant transactions and balances between companies are offset.Where a subsidiary or business has been acquired through a business merger involving enterprises undercommon control in the reporting period, the subsidiary or business is deemed to be included in the consolidatedfinancial statements from the date they are controlled by the ultimate controlling party. Their operating resultsand cash flows are respectively included in the consolidated income statement and consolidated cash flowstatement from the date they are controlled by the ultimate controlling party.For the subsidiaries and businesses increased in the reporting period due to business merger under differentcontrol, their earnings, expenses and profits from the acquisition date to the end of the reporting period areincluded in the consolidated profit statement, and their cash flows are included in the consolidated cash flowstatement.
The portion of shareholders’ equity of subsidiaries not belonging to the Company shall be listed separatelyunder the item “Shareholders’ Equity” in consolidated balance sheet as minority shareholders’ equity. Theportion of net profit or loss of subsidiaries in current period belonging to minority shareholders’ equity shall belisted separately under the item “Minority Shareholders’ Profit or Loss” in the consolidated income statement. Ifthe loss of a subsidiary borne by minority shareholders exceeds the amount of their shares of owners' equity inthe subsidiary at the beginning, the balance shall offset the minority equity.
(3) Purchase of minority shareholders' equity in subsidiaries
The capital reserve (stock premium) in the consolidated balance sheet is adjusted based on the differencebetween the newly acquired long-term equity investment cost from the purchase of minority equity and theshare of net assets in the subsidiary calculated constantly from the purchase date or combination date as per thenewly increased shareholding proportion, and the difference between the disposal price obtained from thepartial disposal of equity investment in the subsidiary without losing the right of control and the share of netassets in the subsidiary calculated continuously from the purchase date or combination date corresponding tothe disposed long-term equity investment. The retained earnings are adjusted if the capital reserve is insufficientfor offset.
(4) Disposal of the loss of control over subsidiaries
If the control power on the original subsidiaries is lost due to the disposal of part of equity investment or otherreasons, the remaining equity shall be recalculated at fair value on the day when the control power is lost. Thebalance from the sum of consideration obtained from the disposal of equity and the fair value of the remainingequity minus the sum of the share of net assets book value and the goodwill of original subsidiaries calculatedcontinuously starting from the purchase date as per the original shareholding ratio shall be included in currentinvestment income at the loss of control.Other comprehensive income in connection with the equity investment of the original subsidiaries shall betransferred into current profit or loss at the time of loss of control, except for other comprehensive incomesgenerated due to remeasuring the change in net liabilities or new assets of defined benefit plan by the investee.
7. Classification of Joint Venture Arrangement and Accounting Treatment Methods for JointOperationsJoint arrangement refers to an arrangement jointly controlled by two or more participants. Joint arrangements ofthe Company include joint operations and joint ventures.
(1) Joint operation
Joint operation refers to the joint arrangement in which the Company enjoys related assets and bears relatedliabilities.The Company recognizes the following items related to the interest share in the joint operation and carries outaccounting according to the ASBE:
A. Recognizing the assets held separately and the assets held jointly as per its shares;B. Recognizing the liabilities borne separately and the liabilities borne jointly according to its shares;C. Recognizing the income generated from the sale of shares enjoyed in the joint operation;D. Recognizing the income generated from the sale of shares enjoyed in the joint operation as per its shares;E. Recognizing the expenses incurred separately and the expenses arising from joint operation as per itsshares.
(2) Joint ventures
Joint venture refers to a joint arrangement in which the Company only has power over the net assets of thearrangement.The Company conducts accounting for the investment of joint ventures according to provisions of the equitymethod accounting for long-term equity investments.
8. Standards for recognition of cash and cash equivalents
Cash refers to the cash on hand and the deposits that are readily available for payment. Cash equivalents refer tothe short-term and highly liquid investments held by the Company that are readily convertible into knownamounts of cash and with low risk in value change.
9. Foreign currency transaction and foreign currency statement translation
(1) Foreign currency transaction
Foreign currency transactions of the Company are converted into the amount in recording currency at theexchange rate determined by systematic and reasonable methods.On the balance sheet date, the foreign currency monetary items are converted at the spot exchange rate on thebalance sheet date. The exchange difference arising from the difference between the spot exchange rate on thebalance sheet date and the spot exchange rate at the time of initial recognition or on the previous balance sheetdate is included in current profits and losses. Foreign currency non-monetary items measured at historical costare still converted at the spot exchange rate on the transaction date. Foreign currency non-monetary itemsmeasured at fair value are converted at the spot exchange rate on the date when the fair value is determined. The
difference between the converted recording currency amount and the original recording currency amount isincluded in current profits and losses or other comprehensive income according to the nature of the non-monetary items.
(2) Translation of foreign currency financial statements
At the balance sheet date, when the foreign currency financial statements of overseas subsidiaries are translated,the assets and liabilities of the balance sheet are translated to CNY using the spot exchange rate at the balancesheet date. Items of the shareholders’ equity, except for “undistributed profits”, are translated at the spotexchange rate at the dates on which such items arose.The income and expense items in the profit statement are translated at the exchange rate determined bysystematic and reasonable methods.All items in the cash flow statement are translated at the exchange rate determined by systematic and reasonablemethods. As an adjustment item for influence amount of cash, exchange rate movement is independentlypresented as "Influence of exchange rate movement to cash and cash equivalent" in cash flow statement.Differences arising from the translation of financial statements are separately presented as “Othercomprehensive income” in the shareholders’ equity of the balance sheet.During the disposal of overseas operation and upon the loss of the right of control, the conversion difference offoreign currency statements listed under the shareholders' equity items in the balance sheet and related to theoverseas operation is transferred to the current profits and losses of disposal in full or as per the disposalproportion of the overseas operation.
10. Financial instruments
Financial instruments refer to contracts that form the financial assets of a party, and form financial liabilities orequity instruments of other parties.
(1) Recognition and derecognition of the financial instruments
The Company recognizes a financial asset or financial liability when it becomes a party to the contract of thefinancial instrument.If one of the following conditions is met, the financial assets are terminated:
① The contractual right to receive the cash flow of the financial asset is terminated.
② The financial asset has been transferred and is in accordance with the following conditions forderecognition.If the current obligations of financial liability have been discharged in total or in part, derecognize all or part ofit. The Company (the Debtor) signs an agreement with the Creditor to replace the existing financial liabilitieswith new financial liabilities; the existing financial liabilities are derecognized and the new financial liabilitiesare recognized when the contractual terms of the new financial liabilities and those of the existing financialliabilities are different in essence.Financial assets transacted in a conventional way are subject to accounting recognition and derecognition on thetransaction date.
(2) Classification and measurement of financial assets
The Company classifies financial assets into the following three categories according to the business mode offinancial assets management and the contractual cash flow characteristics of financial assets at the time of initialrecognition: financial assets measured at amortized cost, financial assets measured at fair value with theirchanges included in other comprehensive income, and financial assets measured at fair value with their changesincluded in the current profits or losses.Financial assets measured at amortized costThe Company classifies the financial assets that meet the following conditions but are not designated to bemeasured at fair value and with the changes included in current profits or losses as the financial assets measuredat amortized cost:
? The Company manages the financial assets in order to collect contractual cash flows;? The contract terms of the financial assets stipulate that the cash flow generated on a specific date is
only the payment of the principal and the interest based on the outstanding principal amount.After initial recognition, such financial assets are measured at amortized cost using the effective interest method.Any gains or losses on financial assets at amortized cost that are not part of the hedging relationship are chargedto the current profit or loss at derecognition, amortization using the effective interest method, or recognition ofimpairment.Financial assets measured at fair value with their changes included in other comprehensive income
The Company classifies financial assets that meet the following conditions and are not designated to befinancial assets at fair value with their changes included in current profit or loss as financial assets at fair valuewith their changes included in other comprehensive incomes:
? The Company manages the financial assets in order not only to collect contractual cash flows but also
to sell the financial assets;
? The contract terms of the financial assets stipulate that the cash flow generated on a specific date isonly the payment of the principal and the interest based on the outstanding principal amount.After initial recognition, such financial assets are subsequently measured at fair value. Interests, impairmentlosses or gains and exchange gains and losses calculated with the effective interest method are included in thecurrent profits and losses, and other gains or losses are included in other comprehensive income. When thefinancial assets are derecognized, the accumulated profits or losses previously included in other comprehensiveincome are transferred out and included in the current profits and losses.Financial assets at fair value through profit or lossExcept for the above-mentioned financial assets measured at amortized cost and fair value through othercomprehensive income, the Company classifies all remaining financial assets as financial assets measured atfair value through profit or loss. At the time of initial recognition, in order to eliminate or significantly reduceaccounting mismatch, the Company irrevocably designates some financial assets that should be measured atamortized cost or fair value through other comprehensive income as financial assets measured at fair valuethrough current profits and losses.After initial recognition, such financial assets are subsequently measured at fair value, and the gains or losses(including interest and dividend income) incurred are included in current profits and losses unless they are partof a hedging relationship.The business model of managing financial assets refers to how the Company manages financial assets togenerate cash flows. The business model determines whether the cash flow of financial assets managed by theCompany comes from collecting contractual cash flows, selling financial assets, or both. The Companydetermines the business model for managing financial assets on the basis of objective facts and specific businessobjectives for managing financial assets decided by key management personnel.The Company evaluates the contractual cash flow characteristics of financial assets to determine whether thecontractual cash flow generated by relevant financial assets on a specific date is only the payment of principaland interest based on the outstanding principal amount. Principal refers to the fair value of financial assets at
initial recognition; interest includes consideration for the time value of money, credit risk associated with theamount of principal outstanding over a specific period, and other underlying borrowing risks, costs and profits.In addition, the Company evaluates the contract terms that may cause changes in the time distribution or amountof contractual cash flows of financial assets to determine whether they meet the requirements for the above-mentioned contractual cash flow characteristics.Only when the Company changes its business model for managing financial assets, can all affected relatedfinancial assets be reclassified on the first day of the first reporting period after the change in business model;otherwise, financial assets shall not be reclassified after initial recognition.Financial assets are measured at fair value upon initial recognition. For financial assets at fair value throughprofit or loss, relevant transaction costs are directly included in current profits and losses; for other types offinancial assets, relevant transaction costs are included in the initially recognized amount. For accountsreceivable arising from sales of products or provision of labor services that do not include or considersignificant financing components, the consideration amount that the Company is expected to be entitled toreceive will be taken as the initially recognized amount.
(3) Classification and measurement of financial liabilities
Financial liabilities of the Company are classified into financial liabilities at fair value through profit or loss andfinancial liabilities measured at amortized cost upon initial recognition. For financial liabilities not classified asthose measured at fair value through profit or loss, relevant transaction costs are included in their initiallyrecognized amounts.Financial liabilities at fair value through profit or lossFinancial liabilities at fair value through profit or loss include financial liabilities held for trading and thosedesignated upon initial recognition to be measured at fair value through profit or loss. Such financial liabilitiesare subsequently measured at fair value, and the gains or losses arising from changes in fair value as well asdividends and interest expenses related to such financial liabilities are included in current profits and losses.Financial liabilities measured at amortized costOther financial liabilities are subsequently measured at amortized cost using the effective interest method, andgains or losses arising from derecognition or amortization are included in current profits and losses.Distinction between financial liabilities and equity instrumentsFinancial liabilities refer to those that meet one of the following conditions:
① Contractual obligations to deliver cash or other financial assets to other parties.
② Contractual obligations to exchange financial assets or financial liabilities with other parties underpotentially adverse conditions.
③ A non-derivative instrument contract that must or can be settled with the enterprise's own equityinstruments in the future, and according to which the enterprise will deliver a variable number of its own equityinstruments.
④ A derivative contract that must or can be settled with the enterprise's own equity instruments in the future,except for derivative contracts where a fixed amount of its own equity instruments is exchanged for a fixedamount of cash or other financial assets.An equity instrument refers to a contract that can prove the residual equity in the assets of an enterprise after allliabilities are deducted.If the Company cannot unconditionally avoid performing a contractual obligation by delivering cash or otherfinancial assets, the contractual obligation meets the definition of financial liabilities.If a financial instrument must or can be settled with the Company's own equity instruments, it is necessary toconsider whether the Company's own equity instruments used for settlement of such instruments are used assubstitutes for cash or other financial assets or to enable the instrument holder to enjoy residual equity in theassets of the issuer after deduction of all liabilities. If meets the former condition, the financial instrumentshould be recognized as financial liabilities; If meets the latter condition, the financial instrument is recognizedas an equity instrument.
(4) Fair value of financial instruments
For the determination methods for the fair value of financial assets and liabilities, refer to 38 "Others" in V"Significant Accounting Policies and Accounting Estimates" of Section X - Financial Report.
(5) Impairment of financial assets
The Company accounts for impairment and recognizes the loss provision for the following items on the basis ofexpected credit losses:
? Financial assets measured at amortized cost;? Receivables and debt investments at fair value through other comprehensive income;? Contract assets as defined in ASBE NO. 14 - Revenue;
? Lease receivables;? Financial guarantee contracts (except for those measured at fair value through profit and loss, where the
transfer of financial assets does not meet derecognition conditions or is continuously involved in thetransferred financial assets).Measurement of expected credit lossesExpected credit loss refers to the weighted average of the credit losses of financial instruments that are weightedby the risk of default. Credit loss refers to the difference between all contractual cash flows receivableaccording to the contract and discounted by the Company at the original effective interest rate and all cash flowsexpected to be collected, that is, the present value of all cash shortages.The Company considers reasonable and reliable information about past events, current situation and forecast ofthe future economic situation, weighs the risk of default, calculates the probability weighted amount of thepresent value of the difference between the cash flow receivable from the contract and the cash flow expected tobe received, and recognizes the expected credit loss.The Company measures the expected credit losses of financial instruments at different stages respectively. Forfinancial instruments for which the credit risk has not significantly increased since initial recognition, they areclassified in Stage 1. The company measures the loss provision based on expected credit losses over the next 12months. For financial instruments in which the credit risk has significantly increased since initial recognitionbut no credit impairment has occurred, they are classified in Stage 2. The company measures the loss provisionbased on the expected credit losses over the entire remaining lifetime of the instrument. For financialinstruments in which a credit impairment has occurred since initial recognition, they are classified in Stage 3.The company measures the loss provision based on the expected credit losses over the entire remaining lifetimeof the instrument.For financial instruments with low credit risk on the balance sheet date, the Company assumes that their creditrisks have not increased significantly since initial recognition and measures the loss provision according to theexpected credit losses in the next 12 months.The expected credit loss during the whole duration refers to the expected credit loss caused by all default eventsthat may occur during the whole expected duration of financial instruments. The expected credit loss in the next12 months refers to the expected credit loss caused by default events of financial instruments that may occurwithin 12 months after the balance sheet date (if the expected duration of financial instruments is less than 12months, it is considered as the expected duration), which is part of the expected credit loss for the wholeduration.
During the measurement of expected credit losses, the maximum term to be considered by the Company is themaximum contract term of the enterprise facing credit risk (including the option to renew the contract).For financial instruments in the first and second stages and with low credit risk, the Company calculates interestincome according to the book balance before deducting impairment provision and the actual interest rate. Forfinancial instruments in the third stage, interest income is calculated according to their book balance minus theamortized cost after impairment provision and the effective interest rate.Notes receivable, accounts receivable and contract assetsFor notes receivable, accounts receivable and contract assets, the Company always measures their loss provisionaccording to the amount equivalent to the expected credit loss in the whole duration no matter whether there isany significant financing component.If the expected credit loss of a single financial asset cannot be evaluated at a reasonable cost, the Companydivides the notes receivable and accounts receivable into portfolios according to the credit risk characteristicsbased on the following, and calculates the expected credit loss on the basis of the portfolios:
A. Notes receivable
? Notes receivable portfolio 1: bank acceptance bills? Notes receivable portfolio 2: commercial acceptance bills
B. Accounts receivable
Aging portfolioC. Contract assets
Aging portfolioThe Company calculates the expected credit loss of the notes receivable and contract assets divided intoportfolios by referring to the historical credit loss experience, combining the current situation and the forecast ofthe future economic situation, and based on the default risk exposure and the expected credit loss rate for thewhole duration.For accounts receivable divided into portfolios, the Company prepares a comparison table of account receivableaging/overdue days and expected credit loss rate for the whole duration with a reference to historical credit lossexperience and in combination with the current situation and forecast of the future economic situation, so as tocalculate the expected credit loss.Other receivables
The Company divides other receivables into several portfolios according to the credit risk characteristics basedon the following, and calculates the expected credit loss according to the portfolios:
? Portfolio 1 of other receivables: portfolio of margin, deposit and reserve fund? Portfolio 2 of other receivables: aging portfolio
For other receivables divided into portfolios, the Company calculates the expected credit loss through defaultrisk exposure and expected credit loss rate in the next 12 months or the whole duration.Long-term receivablesThe Company's long-term receivables include the receivables from sales of goods by installments.The Company divides the receivables from sales of goods by installments into several portfolios according tothe credit risk characteristics based on the following, and calculates the expected credit loss on the basis of theportfolios:
? Long-term receivables portfolio 1: receivables from sales of goods by installments? Long-term receivables portfolio 2: other receivablesThe Company calculates the expected credit loss of the receivables from sales of goods by installments basedon the default risk exposure and the expected credit loss rate for the whole duration with a reference to thehistorical credit loss experience, the current situation and the forecast of the future economic situation.Debt investment and other debt investmentsFor debt investments and other debt investments, the Company calculates expected credit losses according tothe nature of the investment, various types of counterparties and risk exposures, default risk exposures andexpected credit loss rates in the next 12 months or throughout the duration.Assessment of significant increase in credit riskThe Company compares the risk of default of financial instruments on the balance sheet date with the risk ofdefault on the initial recognition date so as to determine the relative change in the default risk of financialinstruments in the expected duration and evaluate whether the credit risk of financial instruments has increasedsignificantly since the initial recognition.In determining whether the credit risk has increased significantly since initial recognition, the Companyconsiders reasonable and well-founded information (including forward-looking information) that can beobtained without unnecessary additional costs or efforts. The information to be considered by the Company isas follows:
? Failure of the debtor to pay the principal and interest on the due date of the contract;
? Serious deterioration in the external or internal credit rating (if any) of the financial instrument that has
occurred or is expected;
? Serious deterioration of the debtor's operating results that has occurred or is expected;? Changes in the technical, market, economic or legal environment that has occurred or is expected andtheir potential material adverse effect on the repayment ability of the debtor to the Company.According to the nature of financial instruments, the Company evaluates whether the credit risk has increasedsignificantly on the basis of individual financial instruments or portfolios of financial instruments. Whenevaluating on the basis of portfolios of financial instruments, the Company may classify the financialinstruments based on common credit risk characteristics, such as overdue information and credit risk rating.If it is overdue for more than 30 days, the Company determines that the credit risk of financial instruments hasincreased significantly.Credit-impaired financial assetsThe Company evaluates on the balance sheet date whether credit impairment has occurred on the financialassets measured at amortized cost and on the creditor's debt investment measured at fair value through othercomprehensive income. A financial asset becomes credit-impaired when one or more events that have anadverse impact on its expected future cash flows occur. Evidence of credit impairment of financial assetsincludes the following observable information:
? The issuer or the debtor is involved in serious financial difficulties;? The debtor breaches the contract, such as default on or overdue repayment of interest or principal;? The Company, for economic or contractual reasons relating to the debtor’s financial difficulty, grantsthe debtor concessions that would not have been made in any other circumstances.? There is a great possibility of bankruptcy or other financial restructuring of the debtor;? The financial difficulties of the issuer or debtor result in the disappearance of the active market of suchfinancial assets.Presentation of provision for expected credit lossIn order to reflect the changes in the credit risk of financial instruments since the initial recognition, theCompany remeasures the expected credit loss on each balance sheet date; the increased or reversed amount ofthe loss provision arising therefrom shall be included in the current profits and losses as impairment losses orgains. The loss provision of the financial assets measured at amortized cost is used to offset their book valuepresented in the balance sheet. For the debt investment measured at fair value with its changes included in othercomprehensive income, the Company recognizes its loss provision in other comprehensive income, which willnot offset the book value of the financial assets.
Write-offThe Company writes down the book balance of the financial assets when it no longer reasonably expects thatthe contractual cash flow of the financial asset can be recovered in whole or in part. Such write-downconstitutes the derecognition of related financial assets. This usually occurs when the Company determines thatthe debtor has no assets or sources of income that can generate sufficient cash flows to repay the amount to bewritten down. However, the written-down financial assets may still be affected by the execution activitiesaccording to the Company's procedures for recovering due amounts.Any financial assets that have been previously written off and subsequently recovered are recognized as areversal of impairment loss and recorded in the current period's income statement.
(6) Transfer of financial assets
Transfer of financial assets refers to the assignment or delivery of financial assets to the party (transferee) otherthan the issuer of such financial assets.The financial asset is derecognized if the Company has transferred substantially all the risks and rewards ofownership of a financial asset to the transferee. The financial asset is not derecognized if the Company hasretained substantially all the risks and rewards of ownership of a financial asset.If the Company neither transfers nor retains almost all risks and rewards of ownership of a financial asset, itshall deal with them as follows: if the control over the financial asset is waived, the financial asset shall bederecognized and the assets and liabilities incurred shall be recognized; if the control over the financial asset isnot waived, the relevant financial asset shall be recognized to the extent that it continues to be involved in thetransferred financial asset, and the relevant liabilities shall be recognized accordingly.
(7) Offset of financial assets and financial liabilities
Financial assets and financial liabilities are presented in the balance sheet with the amount after offsetting eachother when the Company has a legal right to offset the recognized financial assets and financial liabilities andthe legal right can be exercised currently, and when the Company intends either to settle on a net basis, or torealize the financial assets and pay off the financial liabilities simultaneously. In other cases, financial assetsand financial liabilities are presented separately in the balance sheet and are not offset against each other.11 Notes receivableRefer to 10 "Financial instruments" in V "Significant Accounting Policies and Accounting Estimates" ofSection X - Financial Report.
12 Accounts receivableRefer to 10 "Financial instruments" in V "Significant Accounting Policies and Accounting Estimates" ofSection X - Financial Report.13 Receivables financingRefer to 10 "Financial instruments" in V "Significant Accounting Policies and Accounting Estimates" ofSection X - Financial Report.14 Other receivablesFor determination methods and accounting methods of expected credit losses of other receivables,Refer to 10 "Financial instruments" in V "Significant Accounting Policies and Accounting Estimates" ofSection X - Financial Report.15 Inventories
(1) Classification of inventories
The inventories of the Company are divided into raw materials, self-made semi-finished products and goods inprocess, goods in stock, revolving materials, etc.
(2) Valuation method for inventories sent out
The Company's inventories are accounted for at the planned cost when acquired. The difference between theplanned cost and the actual cost is accounted for through the cost variance account, and the cost variance thatshould be borne by the inventories sent out is carried forward on schedule to adjust the planned cost to theactual cost.
(3) Basis for determining the inventory’s net realizable value and method for provision for decline in the valueof inventoriesThe net realizable value of inventories is the amount obtained by deducting the estimated costs to be incurreduntil completion, estimated sales expenses and relevant taxes from the estimated selling price of inventories.The net realizable value of inventories is determined based on the unambiguous evidence obtained as well asthe consideration of the purpose of holding inventories and the impact of events after the balance sheet date.If the inventory cost is higher than its net realizable value on the balance sheet date, provision for inventoryfalling price shall be made. The Company usually makes the provision for inventory falling price based on an
individual inventory item. On the balance sheet date, if the factors affecting the previous write-down ofinventory value have disappeared, the inventory falling price reserves shall be reversed within the amountoriginally provided for.
(4) Inventory system
The Company adopts the perpetual inventory system.
(5) Amortization method for low-value consumables and packaging materialsLow-value consumables and packaging materials of the Company are amortized by one-off write-off methodwhen acquired.16 Contract assetsThe Company presents the contract assets or contract liabilities in the balance sheet according to therelationship between the performance obligations and the customer's payment. The Company presents thecontract assets and liabilities under the same contract on a net basis after offsetting each other.A contractual asset refers to a right to receive consideration for goods or services that have been transferred to acustomer, and the right depends on factors other than the passage of time.For the determination method and accounting method of the Company for the expected credit loss of thecontract assets, refer to 10 "Financial instruments" in V "Significant Accounting Policies and AccountingEstimates" of Section X - Financial Report.17 Contract costThe contract cost includes the incremental cost incurred for obtaining a contract and the contract performancecost.Incremental costs incurred for obtaining a contract refer to the costs (such as sales commissions) that would nothave occurred if the Company had not obtained the contract. If the cost is expected to be recovered, theCompany recognizes it as a contract acquisition cost and an asset. Other expenditures incurred by the Companyfor obtaining contracts other than incremental costs that are expected to be recovered are included in currentprofits and losses when incurred.If the cost incurred for contract performance is not within the scope of other accounting standards for businessenterprises such as inventories and meets the following conditions at the same time, the Company recognizes itas an asset for the contract performance cost:
① This cost is directly related to a current or expected contract, including direct labor, direct materials,manufacturing expenses (or similar expenses), costs explicitly borne by the customer and other costs incurredonly by the Contract;
② This cost increases the Company’s resources for performing the performance obligations in the future;
③ This cost is expected to be recovered.
Assets recognized as contract acquisition costs and that recognized as contract performance costs (hereinafterreferred to as "assets related to contract costs") are amortized on the same basis as revenue recognition of goodsor services related to the assets and are included in current profits and losses.When the book value of the assets related to the contract cost is higher than the difference between thefollowing two items, the Company will make provision for the impairment of the excess and recognize it as theasset impairment loss:
① The residual consideration expected to be obtained by the Company from the transfer of goods or servicesrelated to the asset;
② The estimated costs to be incurred for the transfer of relevant goods or services.The contract performance cost recognized as an asset shall be listed in the "inventory" item if its amortizationperiod does not exceed one year or a normal operating cycle at initial recognition, and shall be listed in the"other non-current assets" item if its amortization period exceeds one year or a normal operating cycle at initialrecognition.The contract acquisition cost recognized as an asset shall be listed in the item "Other current assets" if theamortization period at the time of initial recognition is not more than one year or one normal operating cycle,and listed in the item "Other non-current assets" if the amortization period at the time of initial recognition ismore than one year or one normal operating cycle.18 Held-for-sale assets
(1) Classification and measurement of held-for-sale non-current assets or disposal groupsThe non-current asset or disposal group is classified as the held-for-sale asset if the Company recovers its bookvalue mainly by selling (including the exchange of non-monetary assets of commercial nature) rather thancontinuously using the non-current asset or disposal group.
The above non-current assets do not include investment properties subsequently measured at fair value,biological assets measured at the net amount of fair value minus selling expenses, assets formed by employeecompensation, financial assets, deferred income tax assets and rights arising from insurance contracts.Disposal group refers to a group of assets that are disposed together by sale or other means as a whole in atransaction, and liabilities directly related to these assets transferred in the transaction. Under specificcircumstances, the disposal group includes goodwill acquired in business combination.Non-current assets or disposal groups that meet all the following conditions are classified as the held-for-saleassets: The non-current assets or disposal groups can be sold immediately under current conditions according tothe practice of selling such assets or disposal groups in similar transactions; they are extremely likely to be sold,i.e. a resolution has been made on a sales plan and a certain purchase commitment has been obtained, and thesales are expected to be completed within one year. The overall investment to subsidiaries is classified as held-for-sale assets in individual financial statements, and all assets and liabilities of subsidiaries are classified as theheld-for-sale assets in consolidated financial statements when the investment to subsidiaries meets theconditions for the held-for-sale assets if the Company loses control over its subsidiaries due to reasons such asthe sales of investment to subsidiaries, whether the Company reserves some of its equity investments after thesales or not.The difference between the book value and the net amount obtained by deducting the selling expenses from thefair value is recognized as the asset impairment loss when the held-for-sale non-current assets or disposalgroups are measured initially or re-measured on the balance sheet date. The asset impairment loss recognized bythe held-for-sale disposal group deducts the book value of the goodwill in the disposal group, and then deductsthe book value of each non-current asset in the disposal group based on its proportion.The previous write-down amount is recovered and reversed from the asset impairment losses recognized afterbeing classified as the held-for-sale assets, and the reversed amount is included in the current profits and lossesif the net amount obtained by deducting the selling expenses from the fair value of held-for-sale non-currentassets or disposal groups on the subsequent balance sheet date increases. The book value of goodwill that hasbeen deducted shall not be reversed.Held-for-sale non-current assets and assets in the held-for-sale disposal group are not depreciated or amortized.The interest on liabilities and other expenses in the held-for-sale disposal group are recognized continuously.For all or part of the investments of held-for-sale associated enterprises or joint ventures, the held-for-sale partwill not be accounted for with equity method, and the retained part (not classified as the held-for-sale asset) willbe accounted for continuously with the equity method. The equity method will not be used any more when theCompany has no significant influence on associated enterprises and joint ventures due to sales.
For a non-current asset or disposal group that is classified as the held-for-sale asset but later no longer meets theconditions for the held-for-sale asset, the Company will cease to classify it as the held-for-sale asset andmeasure it based on the lower of the following two amounts:
① The amount of the book value of the asset or disposal group before being classified as the held-for-saleasset after adjustment based on depreciation, amortization or impairment that should have been recognized hadit not been classified as the held-for-sale asset;
② Recoverable amount.
(2) Presentation
In the balance sheet, the Company presents the held-for-sale non-current assets or the assets in the held-for-saledisposal group as the "held-for-sale assets", and presents the liabilities in the held-for-sale disposal group as the"held-for-sale liabilities".The Company presents the profits and losses from continuing operations and discontinued operations separatelyin the profit statement. For non-current assets or disposal groups held for sale that do not meet the definition ofdiscontinued operation, their impairment losses, reversed amounts and disposal gains and losses are presentedas profits and losses from continuing operations. Operating profits and losses such as impairment losses andreversed amounts of discontinued operations and disposal gains and losses are presented as profits and lossesfrom discontinued operations.Disposal groups that are intended to be discontinued rather than sold and meet the conditions of relevantcomponents in the definition of discontinued operation are presented as discontinued operations from the dateof discontinuance.For discontinued operations presented in the current period, the information originally presented as profits orlosses from continuing operations in the current financial statements is re-presented as profits or losses fromdiscontinued operations in comparable accounting period. If the discontinued operation no longer meets theconditions for the classification of held-for-sale assets, the information originally presented as profits or lossesfrom discontinued operations in the current financial statements is re-presented as profits or losses fromcontinuing operations in comparable accounting period.19 Long-term receivablesRefer to 10 "Financial instruments" in V "Significant Accounting Policies and Accounting Estimates" ofSection X - Financial Report.
20 Long-term equity investmentsLong-term equity investments include equity investments to subsidiaries, joint ventures and associatedenterprises. The investee which may be subject to significant influence of the Company is an associatedenterprise of the Company.
(1) Recognition of initial investment cost
Long-term equity investments acquired from the business combination: For the long-term equity investmentacquired from the business combination under common control, the investment cost refers to the share of thebook value of the owner's equity of the combined party in the consolidated financial statements of the ultimatecontrolling party on the combination date; for the long-term equity investment acquired from the businesscombination under different control, the investment cost refers to the combination cost.For long-term equity investments acquired by other methods: For those acquired with cash payment, the actualpurchase price shall be recognized as the initial investment cost; for those acquired through the issuance ofequity securities, the fair value of issued equity securities shall be recognized as the initial investment cost.
(2) Subsequent measurement and recognition of profit or loss
Investments to subsidiaries are accounted for with the cost method unless the investment meets the conditionsfor held-for-sale; investments to associated enterprises and joint ventures are accounted for with the equitymethod.For long-term equity investments calculated by cost method, except for the declared but not yet released cashdividends or profits included in the actual price or consideration paid when the investment is acquired, thedistributed cash dividends or profits declared by the investee shall be recognized as investment income andincluded in current profits and losses.For the long-term equity investments accounted for with the equity method, the investment cost is not adjustedif the initial investment cost exceeds the share of the fair value of the investee's identifiable net assets at the timeof the investment; the book value of the long-term equity investment is adjusted and the difference is includedin the current profits and losses if the initial investment cost is less than the share of fair value of the investee'sidentifiable net assets at the time of the investment.For accounting with the equity method, the investment income and other comprehensive income shall berecognized respectively according to the share of the net profits and losses and other comprehensive incomerealized by the investee that shall be enjoyed or shared. Meanwhile, the book value of the long-term equityinvestments shall be adjusted. The part of due share shall be calculated according to the distributed profit or
cash dividend declared by the investee, and the book value of the long-term equity investment shall be reducedaccordingly. For other changes in owners' equity of the investee except net profit and loss, other comprehensiveincome and profit distribution, the book value of long-term equity investment shall be adjusted and included incapital reserve (other capital reserve). The Company recognizes its share of the investee's net profits or lossesbased on the fair values of the investee's individual separately identifiable assets at the time of acquisition, aftermaking appropriate adjustments thereto in conformity with the accounting policies and accounting periods ofthe Company.The sum of the fair value of the original equity and the new investment cost is taken as the initial investmentcost calculated with the equity method on the date of conversion if it is possible to exert significant influence onor implement joint control but not constitute control over the investee due to additional investment or otherreasons. The cumulative changes in fair value originally included in other comprehensive income related to theoriginal equity are transferred to retained earnings when the equity method is adopted if the original equity isclassified as a non-trading equity instrument measured at fair value through other comprehensive income.In case that the Company loses joint control of or the significant influence on the investee due to the disposal ofpart of the equity investment, the residual equity after the disposal is accounted for in accordance with theAccounting Standards for Business Enterprises No. 22 - Recognition and Measurement of FinancialInstruments on the date of losing the joint control or significant influence, and the difference between the fairvalue and the book value is included in the current profits and losses. Other comprehensive income recognizedfrom the original equity investment accounted with the equity method shall be accounted for on the same basisas the direct disposal of relevant assets or liabilities of the investee when the equity method is terminated. Otherchanges in owner’s equity related to the original equity investment shall be transferred into current profit andloss.In case that the Company loses the right of control over the investee due to disposal of partial equity investmentor other reasons, the equity method is applied, and it is deemed that the residual equity is adjusted with equitymethod from the time of acquisition if the residual equity after disposal can exert joint control over orsignificant influence on the investee; the accounting is carried out according to the Accounting Standards forBusiness Enterprises No. 22 - Recognition and Measurement of Financial Instruments, and the differencebetween the fair value and the book value on the date of losing control is included in the current profits andlosses if the residual equity after disposal cannot exert joint control over or significant influence on the investee.If the shareholding ratio of the Company decreases due to capital increase by other investors, resulting in loss ofcontrol but joint control over or significant influence on the investee, the Company's share of net assetsincreased due to capital increase and share expansion of the investee shall be recognized according to the new
shareholding ratio, and the difference from the original book value of long-term equity investmentcorresponding to the decrease in shareholding ratio that shall be carried forward shall be included in currentprofits and losses. Then, adjustments are made based on the new shareholding ratio with the equity method as ifit had been used since the acquisition of the investment.Unrealized gains and losses from internal transactions between the Company and its associated enterprises andjoint ventures that are attributable to the Company are calculated based on the shareholding ratio, andinvestment profits and losses are recognized based on the offsetting of that portion. However, the unrealizedloss from internal transactions incurred between the Company and its investee is not offset if it belongs toimpairment loss from assets transferred.
(3) Basis for determining joint control and significant influence on the investeeJoint control refers to the control over certain arrangement under related agreements, and related activities ofthe arrangement can only be determined with the unanimous consent of the parties sharing the control. Duringthe judgment of joint control, it is required to determine whether the arrangement is controlled collectively byall participants or combinations of participants, and then determine whether decisions on activities related to thearrangement must be made with the unanimous consent of those participants who collectively control thearrangement. It is deemed that all participants or a group of participants collectively control the arrangement ifrelated activities of an arrangement can be decided only with the concerted action of all participants or a groupof participants. If there are two or more combinations of parties that can collectively control anarrangement, this situation does not constitute joint control. For the determination of whether there is joint
control, protective rights are not taken into account.Significant influence refers to the power of the investor to participate in making decisions on the financial andoperating policies of the investee, but cannot control or jointly control with other parties over the preparation ofthese policies. The possibility of exerting significant influence on the investee is determined by considering theinfluence of the voting shares of the investee directly or indirectly held by the investor and the influence when itis assumed that the potential voting rights executable for the current period held by the investor and otherparties are converted into the equity of the investee, including the influence of the warrants, stock options andcorporate bonds which can be converted in the current period issued by the investee.It is generally considered that the Company has a significant influence on the investee when the Company ownsmore than 20% (including 20%) but less than 50% of the voting shares of the investee directly or indirectlythrough subsidiaries unless there is clear evidence that it cannot participate in the production and operationdecisions of the investee under such circumstances, in which case it has no significant influence. It is generallynot considered that the Company has a significant influence on the investee when the Company owns less than
20% (exclusive) of the voting shares of the investee unless there is clear evidence that it can participate in theproduction and operation decisions of the investee under such circumstances, in which case it has significantinfluence.
(4) Impairment test method and impairment provision methods
For investments to subsidiaries, associated enterprises and joint ventures, the method of provision for assetimpairment is described in 38 "Others" in V "Significant Accounting Policies and Accounting Estimates" ofSection X - Financial Report.21 Investment propertiesMeasurement mode of investment properties: cost methodDepreciation or amortization methodInvestment properties refer to the properties held for earning rent or capital appreciation, or both. Investmentproperties of the Company include the land use rights that have already been rented, the land use rights held fortransfer after appreciation, and the buildings that have been rented.Investment properties of the Company are initially measured as per the price upon acquisition and depreciatedor amortized on schedule as per relevant provisions on fixed assets or intangible assets.For the investment properties subsequently measured at the cost mode, refer to 38 "Others" in V "SignificantAccounting Policies and Accounting Estimates" of Section X - Financial Report for the method of provision forasset impairment.The disposal income from the sale, transfer, retirement or damage of investment properties shall be included incurrent profits and losses after deducting its book value and relevant taxes.22 Fixed assets
(1) Recognition conditions
Fixed assets of the Company refer to the tangible assets held for the production of goods, rendering of services,the renting or operation and management, with a service life exceeding one accounting year.The fixed assets can be recognized only when the economic benefits related to such fixed assets are likely toflow into the enterprise and the cost of such fixed assets can be measured reliably.Fixed assets of the Company are initially measured at the actual cost upon acquisition.Subsequent expenditures related to fixed assets are included in the cost of fixed assets when the relatedeconomic benefits are likely to flow into the Company and the costs can be reliably measured. The daily repair
costs of fixed assets that do not meet the conditions for the subsequent expenditure of fixed assets capitalizationare included in the current profits and losses or the costs of relevant assets based on the beneficiaries at the timeof occurrence. For the replaced part, its book value is derecognized.
(2) Depreciation method
| Category | Depreciation Method | Depreciation Period | Residual Rate | Annual Depreciation Rate |
| Houses and buildings | Straight-line method | 20 years | 3-5 | 4.85-4.75 |
| Machinery equipment | Straight-line method | 10 years | 0-3 | 10.00-9.70 |
| Transportation equipment | Straight-line method | 4-10 years | 0-5 | 25.00-9.50 |
| Electronic equipment | Straight-line method | 3 years | 0-5 | 33.33-31.67 |
| Office equipment | Straight-line method | 3-5 years | 3-5 | 32.33-19.00 |
| Others | Straight-line method | 4-10 years | 0-5 | 24.25-9.50 |
The Company uses the straight-line method for depreciation. The depreciation of fixed assets starts when theyreach the expected serviceable condition and stops when they are derecognized or classified as non-currentassets held for sale. Without considering the impairment provision, the Company determines the annualdepreciation rate of various fixed assets according to their categories, expected service life and estimatedresidual value. For fixed assets with impairment provision, the accumulated amount of impairment provision offixed assets shall also be deducted to calculate and determine the depreciation rate.
① For the impairment test methods and impairment provision methods of fixed assets, refer to 38 "Others" inV "Significant Accounting Policies and Accounting Estimates" of Section X - Financial Report.
② The Company reviews the service life, expected net residual value, and depreciation method of fixed assetsat the end of each year.The service life of fixed assets shall be adjusted if the expected service life is different from the originalestimate, and the estimated net residual value shall be adjusted if the estimated net residual value is differentfrom the original estimate.
③ Disposal of fixed assets
Fixed assets are derecognized when they are disposed of or no economic benefits can be expected from their useor disposal. The disposal income from the sale, transfer, retirement or damage of fixed assets shall be includedin current profits and losses after deducting its book value and relevant taxes.
23 Construction in progressThe cost of construction in progress of the Company is recognized according to the actual constructionexpenditures, including various necessary construction expenditures incurred during the construction period,borrowing costs that shall be capitalized before the construction reaches the expected condition for its intendeduse, and other relevant expenses.Construction in progress is transferred to fixed assets when it is ready for its intended use.For the method of provision for asset impairment of construction in progress, refer to 38 "Others" in V"Significant Accounting Policies and Accounting Estimates" of Section X - Financial Report.24 Right-of-use assets
(1) Recognition conditions for right-of-use assets
Right-of-use assets refer to the right of the Company, as the lessee, to use the leasing assets within the leaseterm.At the commencement date of the lease term, the right-of-use assets are initially measured at cost. This costincludes the initial measurement amount of lease liabilities, lease payments made on or before the leasecommencement date, from which any lease incentives enjoyed (if any) needed to be deducted, initial directcosts incurred by the Company as a lessee, and the estimated costs expected to be incurred by the Company as alessee for dismantling and removing the leased asset, restoring the leased asset's site, or restoring the leasedasset to the contractual conditions as stipulated in the lease agreement. The Company, as the lessee, recognizesand measures the cost of demolition and restoration in accordance with the Accounting Standards for BusinessEnterprises No. 13 - Contingencies. Subsequent adjustments are made for any remeasurement of the leaseliabilities.
(2) Depreciation method of right-of-use assets
The Company uses the straight-line method for depreciation. If the Company, as the lessee, can reasonablyconfirm that it obtains the ownership of the leasing assets at the expiration of the lease term, the depreciationshall be drawn within the remaining service life of the leasing assets. In case of a failure to determine theownership of the leased assets reasonably at the end of the lease period, the depreciation shall be drawn withinthe lease term or the remaining service life of leasing assets, whichever is shorter.
(3) The impairment test method and drawing method for impairment provision of right-of-use assets aredescribed in 38 "Others" in V "Significant Accounting Policies and Accounting Estimates" of Section X -Financial Report.
25. Intangible assets
(1) Valuation method, service life and impairment test
Intangible assets of the Company include land use rights, software, non-patented technologies, etc.Intangible assets are initially measured at cost and their service life is analyzed and judged at the time ofacquisition. Where the service life is limited, the intangible asset is amortized over its expected service life,from the time it is available, with an amortization method that reflects the expected realization of the economicbenefits associated with the asset. The straight-line method is adopted for amortization if the expectedrealization mode cannot be determined reliably. Intangible assets with uncertain service life are not amortized.The amortization method for intangible assets with limited service life is as follows:
| Category | Service Life | Amortization Method | Remarks |
| Land use right | 50 years | Straight-line method | |
| Software | 2-10 years | Straight-line method | |
| Non-patented technology | 5-10 years | Straight-line method |
The Company reviews the service life and amortization method of intangible assets with limited service life atthe end of each year. If it is different from the previous estimate, the original estimate shall be adjusted andtreated as a change in accounting estimates.The book value of an intangible asset is transferred into the current profits and losses in full if it is expected thatthe asset cannot bring economic benefits to the enterprise in the future on the balance sheet date.For the method of provision for asset impairment of the intangible assets, refer to 38 "Others" in V "SignificantAccounting Policies and Accounting Estimates" of Section X - Financial Report.
(2) Accounting policies for expenditures on internal research and developmentThe Company divides the expenditures of internal research and development projects into expenditures at theresearch stage and expenditures at the development stage.The expenditures at the research stage are included in current profits and losses when incurred.
Expenditures at the development stage can be capitalized only when the following conditions are metsimultaneously, namely, it is technically feasible to complete the intangible assets so that they can be used orsold; there is an intention to complete the intangible assets and use or sell them; the ways for intangible assets togenerate economic benefits include proving that there is a market for the products produced by using theintangible assets or the intangible assets themselves, and proving their usefulness if they are to be usedinternally; there are sufficient technical, financial and other resources to support the development of theintangible assets and the ability to use or sell the intangible assets; the expenditure at the development stage ofthe intangible assets can be measured reliably. The development expenditures failing to meet the aboveconditions are included in current profits and losses when they occur.The R&D projects of the Company enter the development stage after project approval by meeting the aboveconditions and passing the technical feasibility and economic feasibility study.The capitalized expenditures at the development stage are presented as development expenditures on thebalance sheet and are transferred into intangible assets from the date when the project realizes its intended use.
26. Impairment of long-term assets
The asset impairment of long-term equity investment to subsidiaries, associated enterprises and joint ventures,investment real estates subsequently measured by cost model, fixed assets, project under construction, right-of-use assets, intangible assets, etc. (except for inventories, deferred income tax assets and financial assets) isdetermined with the following methods:
The Company judges whether there is a sign of impairment to assets on the balance sheet date. If such a signexists, the Company estimates the recoverable amount and conducts the impairment test. Impairment tests shallbe carried out every year on goodwill resulting from business mergers, intangible assets with uncertain servicelife and intangible assets that are not available no matter whether there is any sign of impairment.The recoverable amount is the net amount of the fair value of the assets after deducting the disposal expenses orthe present value of the expected future cash flow of the assets, whichever is higher. The Company estimatesthe recoverable amount based on a single asset. If it is difficult to estimate the recoverable amount of a singleasset, the recoverable amount of the asset group shall be determined based on the asset group to which the assetbelongs. An asset group is determined based on the fact that the main cash inflows generated by the asset groupare independent of the cash inflows of other assets or asset groups.When the recoverable amount of an asset or asset group is lower than its book value, the Company writes downits book value to the recoverable amount, and the write-down amount is included in current profits and losses,and the corresponding impairment provision of assets is made at the same time.
For the impairment test of goodwill, the book value of goodwill resulting from business merger is amortized torelevant asset groups with reasonable methods from the acquisition date, or amortized to relevant asset groupportfolio if it is difficult to amortize it to relevant asset groups. Relevant asset groups or portfolios of assetgroups are those that can benefit from the synergies of business merger and are not greater than the reportingsegment determined by the Company.If there is any sign of impairment in the asset group or portfolio of asset groups related to goodwill during theimpairment test, the impairment test shall be carried out on the asset group or portfolio of asset groups notincluding goodwill, and the recoverable amount shall be calculated to determine the corresponding impairmentloss. Then, an impairment test is carried out on the asset group or portfolio of asset groups including goodwill tocompare its book value and recoverable amount, and determine the impairment loss of goodwill if therecoverable amount is lower than the book value.Once the impairment loss of assets is determined, it will never be reversed in subsequent accounting periods.
27. Long-term deferred expenses
Long-term unamortized expenses of the Company shall be valued as per actual cost and averagely amortized asper the expected benefit period. The amortized value of the long-term deferred expenses that cannot benefit thefuture accounting period is included in the current profits and losses.
28. Contract liabilities
The Company presents the contract assets or contract liabilities in the balance sheet according to therelationship between the performance obligations and the customer's payment. The Company presents thecontract assets and liabilities under the same contract on a net basis after offsetting each other.Contractual liability refers to an obligation to transfer goods or services to a customer for which customerconsideration has been received or receivable, such as payments received by an enterprise prior to the transferof promised goods or services.
29. Employee compensation
(1) Accounting method of short-term compensation
Employee compensation refers to various forms of remuneration or compensation given by enterprises to obtainservices provided by employees or to terminate labor relations. Employee compensation includes short-termcompensation, post-employment benefits, dismissal benefits and other long-term employee benefits. The
benefits provided by the enterprise to employees' spouses, children, dependents, survivors of deceasedemployees and other beneficiaries also belong to employee compensation.According to liquidity, employee compensation is listed in the "employee compensation payable" and "long-term employee compensation payable" items of the balance sheet.Short-term compensationIn the accounting period when employees provide services, the Company recognizes the employee wages,bonuses, social security contributions according to regulations such as medical insurance, work injury insuranceand maternity insurance as well as housing funds as liability, and includes them in current profits and losses orrelevant asset costs.
(2) Accounting method of post-employment benefits
The post-employment benefit plan includes defined contribution plan and defined benefit plan. The definedcontribution plan refers to the post-employment benefit plan that the enterprise will no longer bear the paymentobligation after paying fixed fees to independent funds. The defined benefit plan refers to the post-employmentbenefit plan other than the defined contribution plan.Defined contribution planThe defined contribution plan includes basic pension insurance, unemployment insurance and enterprise annuityplan.In the accounting period when employees provide services, the Company recognizes the amount payable to adefined contribution plan as a liability, and includes it in the current profit or loss or relevant asset cost.Defined benefit planThe defined benefit plan shows that an actuarial valuation is performed by an independent actuary on the annualbalance sheet date, and the benefit cost is determined with the expected cumulative benefit unit method. TheCompany recognizes the following components of employee benefits cost arising from defined benefit plans:
① Service costs include current service costs, past service costs and settlement gains or losses. Among them,the current service cost refers to the increase in the present value of the defined benefit plan obligations due tothe provision of services by employees in the current period; the past service cost refers to the increase ordecrease in the present value of the defined benefit plan obligations related to the employee services in theprevious period due to the modification of the defined benefit plan.
② Net interest on net liabilities or assets of defined benefit plans, including interest income of plan assets,interest expense of defined benefit plan obligations and interest affected by asset ceiling.
③ Changes arising from remeasurement of net liabilities or net assets of defined benefit plans.The Company includes the above items ① and ② in the current profits and losses, unless other accountingstandards require or allow the cost of employee benefits to be included in the cost of assets; item ③ is includedin other comprehensive income and will not be reversed back to profit or loss in subsequent accounting periods,and the part originally included in other comprehensive income within the equity scope is carried forward toundistributed profit when the original defined benefit plan terminates.
(3) Accounting method of dismissal welfare
When the Company provides dismissal welfare to employees, the liabilities of the employee compensationarising from dismissal welfare are recognized at the earlier of the following two dates and included in thecurrent profit or loss: the Company cannot unilaterally provide the dismissal welfare provided due to the laborrelation termination plan or the layoff suggestions; the Company recognizes the costs or expenses related to therestructuring of termination benefits payment.If the early retirement plan is implemented, the economic compensation before the official retirement datebelongs to dismissal welfare. The wages proposed to be paid to the early retired employee and the socialinsurance premiums to be paid are included in the current profits and losses in a lump sum from the date whenthe employee stops providing services to the normal retirement date. Economic compensation after the officialretirement date (such as normal pension) belongs to post-employment benefits.
(4) Accounting method of other long-term employee benefits
Other long-term employee benefits provided by the Company to the employees satisfying the conditions forclassifying as a defined contributions plan are accounted for in accordance with the above requirements relatingto defined contribution plan. The benefits that meet the requirements of the defined benefit plan are treated inaccordance with the provisions of the plan. However, the "changes caused by remeasurement of net liabilities ornet assets of the defined benefit plan" in relevant employee compensation costs are included in current profitsand losses or relevant asset costs.
30. Lease liabilities
Refer to 24 "Right-of-use Assets" in V "Significant Accounting Policies and Accounting Estimates" of SectionX - Financial Report.
31. Estimated liabilities
The Company recognizes the obligations related to contingencies as estimated liabilities if they meet all of thefollowing conditions:
(1) The obligation is the current obligation of the Company;
(2) Performance of this obligation will probably cause an outflow of economic interest of the Company;
(3) The amount of such obligation can be measured reliably.
Expected liabilities are initially measured at the optimal estimate required to perform the relevant currentobligation, in comprehensive consideration of the risks, uncertainty, time value of money, and other factorspertinent to the Contingencies. The best estimate is determined by discounting the relevant future cash outflowif the time value of money has a significant impact. At the balance sheet date, the book value of the estimatedliabilities is reviewed and adjusted by the Company to reflect the current best estimate.If all or part of the expenditures necessary for clearing off the recognized provisions are expected to becompensated by a third party or any other party, the amount of compensation shall be recognized as assetsseparately only when it is basically sure that the amount can be obtained. The recognized amount ofcompensation shall not exceed the book value of recognized liabilities.
32. Share-based payment
(1) Types of share-based payment
The share-based payments of the Company are divided into equity-settled share-based payment and cash-settledshare-based payment.
(2) Determination methods for fair value of equity instruments
The Company recognizes the fair value of equity instruments such as granted options with an active marketaccording to the quotation of the active market. The Company recognizes the fair value of equity instrumentssuch as granted options without active market by using the option pricing model. The following factors areconsidered in the selected option pricing model: A. exercise price of options; B. validity period of options; C.current price of underlying shares; D. expected fluctuation ratio of stock price; E. expected dividends of shares;F. risk-free interest rate within the validity period of options.
(3) Basis for determining the optimal estimate of vested equity instrumentsThe Company makes the optimal estimate based on the latest follow-up information such as changes in thenumber of vesting employees and corrects the expected number of vested equity instruments on each balance
sheet date within the vesting period. On the vesting date, the final estimated number of vested equityinstruments shall be consistent with the number of actual vested equity instruments.
(4) Accounting treatment related to implementation, modification and termination of share-based paymentplanShare-based payments settled by equity are measured at the fair value of the equity instruments granted toemployees. Where the equity instrument can be vested immediately upon being granted, the share-basedpayment is included in relevant costs or expenses at the fair value of equity instrument on the granting date andthe capital reserve shall be increased accordingly. Where the equity instrument can not be vested until thevesting period comes to an end or until the specified performance conditions are met, at each balance sheet datewithin the vesting period, the services obtained in the current period are, based on the optimal estimate of thenumber of vested equity instruments, included in relevant costs or expenses and capital reserve at the fair valuespecified on the granting date of equity instruments. After the vesting date, it shall make no adjustment to therelevant costs or expenses as well as the total amount of the owner's equities which have been confirmed.Share-based payments settled by cash are measured at the fair value of liabilities recognized based on shares orother equity instruments assumed by the Company. Where the equity instrument can be vested immediatelyupon being granted, the payment shall be included in the relevant costs or expenses at the fair value of theliabilities assumed by the Company on the granting date, and the liabilities shall be increased accordingly.Where the share-based payment settled by cash cannot be vested until the vesting period comes to an end oruntil the specified performance conditions are met, on each balance sheet date within the vesting period, theservices acquired in current period are, based on the optimal estimation of the vesting right, included in costs orexpenses and corresponding liabilities at the fair value of the liabilities assumed by the Company. On eachbalance sheet date and the settlement date prior to the settlement of the relevant liabilities, the fair value of theliabilities shall be re-measured, with its changes included in the current profits and losses.When the Company modifies the share-based payment plan, the increase in services obtained shall berecognized based on the increase (if any) in the fair value of equity instruments; if the quantity of granted equityinstruments is increased, the fair value of the increased equity instruments shall be recognized accordingly asthe increase in the services obtained. The increase in the fair value of equity instruments refers to the differencebetween the fair values of equity instruments before and after modification on the modification date. If the totalfair value of share-based payment is reduced in the modification or the terms and conditions of the share-basedpayment plan are modified in other ways unfavorable to employees, the accounting treatment on acquiredservices shall continue as if the change has never occurred, unless the Company has canceled part or all of thegranted equity instruments.
If, during the vesting period, the granted instruments are canceled (except for those canceled because of failureto meet the non-market conditions of the vesting conditions), the Company shall accelerate the vesting of thegranted equity instruments, and immediately include the amount to be recognized in the remaining vestingperiod in the current profit and loss, and determine the capital reserve in the meantime. In the event that theemployees or other parties can choose to meet the non-vesting conditions but fail to meet such conditionsduring the vesting period, the Company shall treat it as the cancellation of granted equity instruments.
33. Income
Accounting policies adopted for income recognition and measurement
(1) General principles
The Company recognizes its income when it has fulfilled its performance obligations of the contract, i.e., thecustomer has obtained the control rights of the relevant goods or services.If the contract contains two or more performance obligations, the Company shall, at the beginning date of thecontract, apportion the transaction price to each performance obligation according to the relative proportion ofthe individual selling price of the goods or services promised by each performance obligation, and measure theincome according to the transaction price apportioned to each performance obligation.In case one of the following conditions is met, the Company will perform the performance obligations within aperiod of time. Otherwise, it will perform the performance obligations at a time point:
① The customer obtains and consumes the economic benefits brought by the performance of the contract bythe Company at the same time.
② The customer can control the goods under construction during the Company's performance;
③ The goods produced during the performance of the Company are irreplaceable, and the Company has beenentitled to receive payment for the performance accumulated so far throughout the term of the contract.For the performance obligations performed within a certain period of time, the Company shall determine theincome within that period according to the performance progress. If the performance progress cannot bereasonably confirmed, and the costs incurred by the Company can be expected to be compensated, the incomesshall be recognized according to the amount of costs incurred until the performance progress can be reasonablyconfirmed.For performance obligations performed at a certain time point, the Company shall confirm the income at thetime point when the customer gains control rights of the relevant goods or services. In determining whether acustomer has obtained the control rights of the goods or services, the Company shall take the following signsinto consideration:
① The Company enjoys the right to the current collection, i.e., the customer has the obligation to payimmediately with respect to the goods;
② The Company has transferred the legal ownership of the goods to the customer, i.e., the customer owns thelegal ownership of the goods;
③ The Company has transferred the goods to the customer in kind, i.e., the customer has possessed the goods;
④ The Company has transferred the major risks and remuneration on the ownership of the goods to thecustomer, i.e., the customer has obtained the major risks and remuneration on the ownership of the goods.
⑤ The customer has accepted such goods or services.
⑥ Other signs indicate that the customer has obtained the right to control the goods.The right of the Company to receive the consideration due to the transfer of goods or services to the customer(and the right depends on other factors than the passage of time) is taken as a contractual asset, and thecontractual assets are impaired based on the expected credit losses (please refer to 10 "Financial Instruments" inV "Significant Accounting Policies and Accounting Estimates" of Section X "Financial Report"). TheCompany’s unconditional (subject only to the passage of time) right to collect consideration from customersshall be presented as receivables. The Company's obligations to transfer goods or services to the customer dueto customer consideration received or receivable shall be defined as contract liabilities.Contract assets and contract liabilities under the same contract shall be presented in net amount. If the netamount is the debit balance, it shall be presented in the item of "contract assets" or "other non-current assets"according to its liquidity; if the net amount is the credit balance, it shall be presented in the item of "contractliabilities" or "other non-current liabilities" according to its liquidity.
(2) Specific methods
The specific method for recognizing the sales income of the Company's vehicles and their accessories is asfollows: When the vehicles and their accessories and other goods are transported to the customer and thecustomer has accepted the goods, the customer obtains the right to control over them, and the Companyrecognizes the income.Differences in accounting policies for income recognition due to different business models for similarbusinesses: none
34. Government subsidies
The government subsidies shall be recognized when all the attached conditions can be satisfied and thegovernment subsidies can be received.
The government subsidies considered as monetary assets are measured at the amount received or receivable.The government subsidies considered as non-monetary assets are measured based on the fair value, or thenominal amount of CNY 1 if the fair value cannot be acquired reliably.Asset-related government subsidies refer to those obtained by the Company and used for acquiring or forminglong-term assets in other ways; otherwise, they are regarded as income-related government subsidies.For the government subsidies with the grant objects not expressly stipulated in the government documents, ifthey can be used to form long-term assets, the government subsidies corresponding to the asset value aredeemed as the government subsidies related to assets while the rest is deemed as the one related to income; forthe government subsidies that are difficult to differentiate, the government subsidies as a whole are deemed asincome-related government subsidies.Asset-related government subsidies are recognized as deferred income and included in profits or losses bystages with a reasonable and systematic method within the service life of related assets. For the income-relatedgovernment subsidies, they shall be included in the current profit and loss if used to compensate for the incurredrelated costs or losses; if used to compensate for the related costs or losses during future periods, they shall beincluded in the deferred income, and included in the current profit and loss during the period when the relatedcosts or losses are recognized. Government subsidies measured at the nominal amount are directly included inthe current profit and loss. The Company adopts the same treatment for those transactions of similargovernment subsidies.The government subsidies related to daily activities shall be included in other incomes based on the substanceof business transactions. Government subsidies irrelevant to daily activities are included in non-business income.If it is necessary to refund the government subsidies that have been recognized, the book value of the assetswhich has been offset at the time of initial recognition is adjusted; the book balance of the deferred incomeconcerned (if any) is offset, and the excess is included in the current profits and losses; others are directlyincluded in the current profits and losses.
35. Deferred income tax assets and deferred income tax liabilities
Income tax includes current income tax and deferred income tax. The income tax shall be included in thecurrent profit and loss as income tax expenses, except that the deferred income taxes related to the adjustmentof goodwill due to business merger or the transactions or matters directly included in the owner's equity areincluded in the owner's equity.
The Company recognizes deferred income tax by the balance sheet liability method according to the temporarydifference between the book value of assets and liabilities on the balance sheet date and the tax base.Relevant deferred tax liabilities shall be recognized for each taxable temporary difference, unless the taxabletemporary difference arises from the following transactions:
(1) The initial recognition of goodwill or the initial recognition of assets or liabilities incurred in a transactionthat is not a business merger and affects neither the accounting profit nor taxable income at the time of thetransaction;
(2) Concerning the taxable temporary difference related to the investment of subsidiaries, joint ventures andassociated enterprises, the time of reversal of the temporary difference can be controlled and the temporarydifference is unlikely to be reversed in the foreseeable future.The Company recognizes a deferred tax asset for the carry-forward of deductible temporary differences,deductible losses and tax credits to subsequent periods, to the extent that it is probable that future taxable profitswill be available against which the deductible temporary differences, deductible losses and tax credits can beutilized, except for those incurred in the following transactions:
(1) The transaction is not a business merger and affects neither the accounting profit nor taxable income at thetime of the transaction;
(2) Corresponding deferred tax assets are recognized if the deductible temporary difference associated withinvestments in subsidiaries, associated enterprises and joint ventures meets all of the following conditions: Thetemporary difference is likely to be reversed in the foreseeable future, and the taxable income which is used todeduct the deductible temporary difference is likely to be obtained in the future.The Company measures the deferred tax assets and deferred income tax liabilities at the applicable tax rateduring the expected period for recovering the assets or paying off the liabilities on the balance sheet date, andreflects the impact on income tax from assets recovery or liability settlement on the balance sheet date.At the balance sheet date, the Company reviews the book value of a deferred tax asset. If it is likely thatsufficient taxable profits will not be available in future periods to deduct the benefit of the deferred tax assets,the book value of the deferred tax assets is reduced. Any such write-down shall be subsequently reversed whereit becomes probable that sufficient taxable income will be available.
36. Lease
(1) Accounting method of operating leases
1) Identification of lease
On the commencement date of the contract, the Company, as the lessee or lessor, evaluates whether thecustomer in the contract is entitled to obtain almost all economic benefits arising from the use of the identifiedassets during the use period, and is entitled to dominate the use of the identified assets during the use period. Ifone party to the contract abalienates the right to control the use of one or more identified assets within a certainperiod of time in exchange for consideration, the Company determines that the contract is a lease or includes alease.
2) The Company as the lessee
At the commencement of the lease term, the Company recognizes right-of-use assets and lease liabilities for allleases, except for simplified short-term leases and low-value asset leases.For the accounting policies of the right-of-use assets, see 24 "Right-of-use Assets" in V "Significant AccountingPolicies and Accounting Estimates" of Section X "Financial Report".Lease liabilities shall be initially measured at the present value calculated by the interest rate implicit in leaseaccording to the unpaid lease payment on the commencement date of the lease term. If the interest rate implicitin lease cannot be determined, the incremental borrowing rate shall be used as the discount rate. The leasepayment includes: fixed payment and substantial fixed payment. If there is a lease incentive, the amount relatedto the lease incentive shall be deducted; variable lease payments depending on index or ratio; the exercise priceof the purchase option, provided that the lessee reasonably determines that the option will be exercised;payments for exercising the option to terminate the lease, provided that the lease term reflects that the lesseewill exercise the option to terminate the lease; and the amount expected to be paid according to the guaranteedresidual value provided by the lessee. The interest expenses of the lease liabilities within each lease term shallbe calculated subsequently according to the fixed periodic rate, and included in the current profits and losses.Variable lease payments not included in the measurement of lease liabilities are included in the current profitsand losses when they actually occur.Short-term leaseShort-term lease refers to the lease with a lease term of not more than 12 months on the commencement date ofthe lease term, except for the lease containing the purchase option.
The Company includes the lease payment for short-term lease into relevant asset costs or current profits andlosses by the straight-line method at each period within the lease term.For short-term lease, the Company selects the above simplified treatment method for the items meeting theshort-term lease conditions in the following asset types according to the category of leased assets.Low-value asset leaseLow-value asset lease refers to the lease in which the value of a single new leased asset is less than CNY 40,000.The Company includes the payment of low-value asset lease into relevant asset costs or current profits andlosses with the straight-line method in each period within the lease term.For low-value asset leases, the Company selects the above simplified treatment method according to the specificconditions of each lease.Lease changeIf the lease changes and meets the following conditions at the same time, the Company takes the lease change asa separate lease for the accounting treatment: ① The lease change expands the lease scope by increasing theright to use one or more leased assets; and ② the increased consideration is equivalent to the amount byadjusting the separate price of the expanded lease scope according to the contract.If the lease change is not taken as a separate lease for accounting treatment, the Company will, on the effectivedate of the lease change, reallocate the consideration of the changed contract, redetermine the lease term, andremeasure the lease liabilities according to the changed lease payment and the present value calculated by therevised discount rate.If the lease scope is reduced or the lease term is shortened due to the lease change, the Company willcorrespondingly reduce the book value of right-of-use assets, and include relevant profits or losses of partial orcomplete termination of leasing in current profits and losses.If the lease liabilities are remeasured due to the other lease changes, the Company shall adjust the book value ofthe right-of-use asset accordingly.
3) The Company as the leaser
When the Company is the lessor, the lease that substantially transfers all risks and rewards related to theownership of the assets is recognized as a finance lease, and other leases than finance leases are recognized asoperating leases.
Operating leaseLease income from operating leases is included in current profits or losses by the Company as per the straight-line method over the lease term. The occurred initial direct cost related to the operating lease shall becapitalized, amortized within the lease term according to the same base with the recognition of rental income,and included in the current profits and losses by stages. The variable lease receipts obtained by the Companyrelated to operating leases and not charged to the lease receipts shall be charged to the current profit and losswhen they actually occur.Lease changeIn case of any change in an operating lease, the Company carries out accounting treatment as it is a new leasesince the effective date of the change, and the advance receipts and receivables related to the lease before thechange are deemed as the receipts of the new lease.If the financial lease changes and meets the following conditions, the Company takes the change as a separatelease for accounting treatment: ① The change expands the lease scope by increasing the right to use one ormore leased assets; and ② the increased consideration is equivalent to the amount by adjusting the separateprice of the expanded lease scope according to the contract.If the change of finance lease is not taken as a separate lease for accounting treatment, the Company treats thechanged lease under the following circumstances respectively: ① If the change takes effect on thecommencement date of the lease and the lease is classified as an operating lease, the Company takes it as a newlease for accounting treatment from the effective date of the lease change, and takes the net investment in thelease before the effective date of the lease change as the book value of the leased asset; ② if the change takeseffect on the commencement date of the lease and the lease is classified as a finance lease, the Company carriesout accounting treatment in accordance with the provisions of the ASBE No. 22 - Recognition and Measurementof Financial Instruments on modifying or renegotiating the contract.
(2) Accounting method of finance leases
In financial lease, at the commencement of the lease term, the Company takes the net investment in a lease asthe entry value of the finance lease receivables, and the net investment in a lease is the sum of the unguaranteedresidual value and the present value of the lease receipts not yet received at the commencement of the leaseterm discounted at the interest rate implicit in lease. The Company, as the lessor, calculates and recognizesinterest income in each lease term at a fixed periodic rate. The variable lease payment obtained by the Companyas the lessor and not included in the measurement of net lease investment is included in the current profits andlosses when it actually occurs.
Derecognition and impairment of finance lease receivables are accounted for according to the ASBE No. 22 -Recognition and Measurement of Financial Instruments and the ASBE No. 23 - Transfer of Financial Assets.
37. Changes in significant accounting policies and accounting estimates
(1) Change in significant accounting policies
□ Applicable Not applicable?
(2) Change in significant accounting estimates
□ Applicable Not applicable?
(3) Adjustment of relevant items in the financial statements at the beginning of the year after the firstimplementation of the new accounting standards since 2023
□ Applicable Not applicable?
38. Others
(1) Fair value measurement
Fair value refers to the price to be received for sale of an asset or to be paid for the transfer of liability bymarket participants in the orderly transaction on the measurement date.The Company measures related assets or liabilities at fair value, assuming that the sale of an asset or the transferof liability is conducted in major markets for relevant assets or liabilities in an orderly transaction. If the majormarket is not provided, the transaction shall be assumed to be performed in the most favorable market forrelevant assets or liabilities. Major markets (or most favorable markets) are the markets where the Company canenter on the measurement date. The Company uses the assumptions used by market participants to maximizetheir economic benefits when they price the asset or liability.Fair value of financial assets or financial liabilities with the active market is determined based on quotations inthe active market by the Company. Fair value of financial instrument without an active market is determinedthrough valuation techniques.When non-financial assets are measured at fair value, it is required to consider the ability of market participantsto use the asset for optimal purposes to produce economic benefits, or to sell the asset to other marketparticipants that can use such assets for optimal purposes to produce economic benefits.The Company shall adopt the estimation technique that is applicable in the current conditions and is supportedsufficiently by available data and other information. The relevant observable input values shall be used in
priority during the application of estimation technique. Only when relevant observable value cannot be obtainedor can be obtained but is not feasible, the unobservable input value can be used.For assets and liabilities measured or disclosed at fair value in the financial statements, the level to which thefair value belongs is determined according to the lowest level input value that is of significance for the wholefair value measurement: The input value for the first level refers to the unadjusted quotation of the same assetsor liabilities in the active market that can be obtained on the measurement date; the input value for the secondlevel refers to the input value that can be directly or indirectly observed for relevant assets or liabilities otherthan that for the first level; and the input value for the third level refers to the input value that cannot beobserved for relevant assets or liabilities.The Company reassesses the assets and liabilities successively measured at fair value recognized in financialstatements on each balance sheet date to determine the transition among fair value measurement levels.
(2) Contract cost
The contract cost includes the incremental cost incurred for obtaining a contract and the contract performancecost.Incremental costs incurred for obtaining a contract refer to the costs (such as sales commissions) that would nothave occurred if the Company had not obtained the contract. If the cost is expected to be recovered, theCompany recognizes it as a contract acquisition cost and an asset. Other expenditures incurred by the Companyfor obtaining contracts other than incremental costs that are expected to be recovered are included in currentprofits and losses when incurred.If the cost incurred for contract performance is not within the scope of other accounting standards for businessenterprises such as inventories and meets the following conditions at the same time, the Company recognizes itas an asset for the contract performance cost:
① The cost is directly related to a current or expected contract, including direct labor, direct materials,manufacturing costs (or similar costs), the costs clearly borne by the customer, and other costs incurred only bythe Contract;
② This cost increases the Company’s resources for performing the performance obligations in the future;
③ This cost is expected to be recovered.
Assets recognized as contract acquisition costs and that recognized as contract performance costs (hereinafterreferred to as "assets related to contract costs") are amortized on the same basis as revenue recognition of goodsor services related to the assets and are included in current profits and losses. If the amortization period does notexceed one year, it shall be included in the current profits and losses when it occurs.
When the book value of the assets related to the contract cost is higher than the difference between thefollowing two items, the Company will make provision for the impairment of the excess and recognize it as theasset impairment loss:
① The residual consideration expected to be obtained by the Company from the transfer of goods or servicesrelated to the asset;
② The estimated costs to be incurred for the transfer of relevant goods or services.The contract performance cost recognized as an asset shall be listed in the "inventory" item if its amortizationperiod does not exceed one year or a normal operating cycle at initial recognition, and shall be listed in the"other non-current assets" item if its amortization period exceeds one year or a normal operating cycle at initialrecognition.The contract acquisition cost recognized as an asset shall be listed in the item "Other current assets" if theamortization period at the time of initial recognition is not more than one year or one normal operating cycle,and listed in the item "Other non-current assets" if the amortization period at the time of initial recognition ismore than one year or one normal operating cycle.
(3) Work safety cost and maintenance & renovation cost
The Company withdraws the work safety cost month by month in an average manner by taking the method ofexcess regression based on the actual operating income of the previous year according to the provisions of CZ[2022] No. 136 document. The specific standards are as follows:
For the machinery manufacturing enterprises with an operating income of not exceeding CNY 10 million, 2.35%of work safety cost will be withdrawn; for the part of operating income between CNY 10 million and CNY 100million, 1.25% will be withdrawn; for the part of the operating income between CNY 100 million and CNY 1billion, 0.25% will be withdrawn; for the part of the operating income between CNY 1 billion and CNY 5billion, 0.1% will be withdrawn; for the part of the operating income over CNY 5 billion, 0.05% will bewithdrawn.For transportation enterprises, the work safety cost is withdrawn month by month in an average manneraccording to the following standards based on the actual operating income in the previous year: 1% for ordinaryfreight business; 1.5% for passenger transportation, pipeline transportation, dangerous goods transportation andother special freight businesses.Work safety cost and maintenance & renovation cost are included in the cost of relevant products or the currentprofit and loss when withdrawn, and are also included in the "special reserve" account.For the withdrawn work safety cost and maintenance & renovation cost used within the specified scope, thosebelong to expense expenditures are directly offset by specific reserves; those cost incurred via collection under
the item of “construction in progress” is recognized when the safety project completes and is ready for intendeduse. At the same time, the Company will offset the specific reserves according to the cost that formed fixedassets and determine the accumulated depreciation of the same amount. The fixed assets will no longer bedepreciated in subsequent periods.
(4) Repurchase of shares
Shares repurchased by the Company are managed as treasury shares before being canceled or transferred, andall expenditures on repurchased shares are transferred to treasury share costs. Considerations in the payment forshares repurchase and reduced owner’s equity in transaction expenses are not recognized as profits or lossesduring repurchase, assignment and write-off of the Company's shares.The transferred treasury shares are included in the capital reserve based on the difference between the amountactually received and the book value of the treasury shares. The surplus reserve and undistributed profits shallbe offset if the capital reserve is insufficient to offset. The canceled treasury shares are used to offset the capitalreserve based on the difference between the book balance and the face value of the canceled treasury shares byreducing the share capital according to the face value of the shares and the number of canceled shares. Thesurplus reserve and undistributed profits shall be offset if the capital reserve is insufficient to offset.
(5) Restricted shares
The Company grants restricted shares to the incentive objects in the equity incentive plan, and the incentiveobjects subscribe for the shares preferentially. If the unlocking conditions stipulated in the equity incentive planare not met subsequently, the Company will repurchase the shares at the price agreed in advance. If therestricted shares issued to employees have completed capital increase procedures such as registration asspecified, the Company shall determine the share capital and capital reserve (share premium) according to theshare subscription money received from employees on the granting date, and determine the treasury shares andother payables in terms of the repurchase obligation.
(6) Asset impairment
The asset impairment of long-term equity investment to subsidiaries and associated enterprises, investment realestates subsequently measured by cost model, fixed assets, project under construction, right-of-use assets,intangible assets, etc. (except for inventories, deferred income tax assets and financial assets) is recognized withthe following methods:
The Company judges whether there is a sign of impairment to assets on the balance sheet date. If such a signexists, the Company estimates the recoverable amount and conducts the impairment test. Impairment tests shallbe carried out every year on goodwill resulting from business mergers, intangible assets with uncertain servicelife and intangible assets that are not available no matter whether there is any sign of impairment.
The recoverable amount is the net amount of the fair value of the assets after deducting the disposal expenses orthe present value of the expected future cash flow of the assets, whichever is higher. The Company estimatesthe recoverable amount based on a single asset. If it is difficult to estimate the recoverable amount of a singleasset, the recoverable amount of the asset group shall be determined based on the asset group to which the assetbelongs. An asset group is determined based on the fact that the main cash inflows generated by the asset groupare independent of the cash inflows of other assets or asset groups.When the recoverable amount of an asset or asset group is lower than its book value, the Company writes downits book value to the recoverable amount, and the write-down amount is included in current profits and losses,and the corresponding impairment provision of assets is made at the same time.For the impairment test of goodwill, the book value of goodwill resulting from business merger is amortized torelevant asset groups with reasonable methods from the acquisition date, or amortized to relevant asset groupportfolio if it is difficult to amortize it to relevant asset groups. Relevant asset groups or portfolios of assetgroups are those that can benefit from the synergies of business merger and are not greater than the reportingsegment determined by the Company.If there is any sign of impairment in the asset group or portfolio of asset groups related to goodwill during theimpairment test, the impairment test shall be carried out on the asset group or portfolio of asset groups notincluding goodwill, and the recoverable amount shall be calculated to determine the corresponding impairmentloss. Then, an impairment test is carried out on the asset group or portfolio of asset groups including goodwill tocompare its book value and recoverable amount, and determine the impairment loss of goodwill if therecoverable amount is lower than the book value.Once the impairment loss of assets is determined, it will never be reversed in subsequent accounting periods.
(7) Significant accounting judgment and estimate
The Company continuously evaluates the significant accounting estimates and key assumptions adopted basedon historical experience and other factors, including reasonable expectations for future events. Significantaccounting estimates and key assumptions that may lead to significant adjustment risk to the book value ofassets and liabilities in the next accounting year are presented as follows:
Classification of financial assetsMajor judgments involved in determining the classification of financial assets include the analysis of businessmodels and contractual cash flow characteristics.The Company determines the business model of managing financial assets at the level of financial assetportfolio, considering the way of evaluating and reporting financial asset performance to key management
personnel, the risks affecting the financial asset performance and their management methods, and the way forthe relevant business management personnel to obtain the remuneration.When evaluating whether the contractual cash flow of financial assets is consistent with the basic loanarrangement, the Company has the following main judgments: May the principal change in the time distributionor amount in the duration due to prepayment and other reasons? Does the interest include only the time value ofmoney, credit risk, other basic borrowing risks, and consideration for costs and profits? For example, does theamount of prepayment only reflect the unpaid principal and interest based on the outstanding principal, as wellas reasonable compensation paid due to early termination of the contract?Measurement of expected credit losses on accounts receivableThe Company calculates the expected credit loss of accounts receivable through default risk exposure andexpected credit loss rate of accounts receivable, and determines the expected credit loss rate based on defaultprobability and loss given default. In determining the expected credit loss rate, the Company uses the internalhistorical credit loss experience and other data, and adjusts the historical data according to the current situationand forward-looking information. When the forward-looking information is considered, the indicators used bythe Company include risks of economic downturn, changes in external market environment, technologicalenvironment and customer conditions. The Company regularly monitors and reviews the assumptions related tothe calculation of expected credit losses.Development expendituresIn determining the capitalization amounts, the management must make assumptions on the expected future cashflow generation of assets, discount rate to be adopted and expected benefit period.Deferred income tax assetsThe deferred tax assets shall be recognized in respect of all unused tax losses to the extent it is highly probablethat there will be sufficient taxable profits available for offsetting the losses. This requires the management toestimate the timing and amount of future taxable profit using large amounts of judgment and to determine therecognized amount of deferred tax assets by referring to the tax planning strategy.Estimated liabilitiesExpected liabilities are initially measured at the optimal estimate required to perform the relevant currentobligation, in comprehensive consideration of the risks, uncertainty, time value of money, and other factorspertinent to the Contingencies. The best estimate is determined by discounting the relevant future cash outflowif the time value of money has a significant impact. At the balance sheet date, the book value of the estimatedliabilities is reviewed and adjusted by the Company to reflect the current best estimate.
If all or part of the expenditures necessary for clearing off the recognized provisions are expected to becompensated by a third party or any other party, the amount of compensation shall be recognized as assetsseparately only when it is basically sure that the amount can be obtained. The recognized amount ofcompensation shall not exceed the book value of recognized liabilities.VI. Taxes
1. Main taxes and tax rates
| Tax Category | Tax Basis | Tax Rate |
| VAT | Taxable value-added tax (the tax payable is calculated by multiplying taxable sales by the applicable tax rate and then deducting input tax allowed to be deducted for the current period) | 13%, 9%, 6%, 5% |
| Urban maintenance and construction tax | Turnover tax actually paid | 7%, 5% |
| Corporate income tax | Taxable income | 25% |
| Local educational surcharges | Turnover tax actually paid | 2% |
| Education surcharges | Turnover tax actually paid | 3% |
| Land use tax | Land use area | CNY 9/㎡, CNY 14/㎡, etc. |
| Property tax | Property residual value and rental income | 1.2%, 12% |
Disclosure of different corporate income tax rates for taxable entities
| Name of Taxpayer | Income Tax Rate |
| The Company | 25% |
| Jiefang Limited | 15% |
| Wuxi Dahao Power Co., Ltd. | 25% |
| FAW Jiefang (Qingdao) Automotive Co., Ltd. | 25% |
| FAW Jiefang Dalian Diesel Engine Co., Ltd. | 15% |
| FAW Jiefang Austria R&D Co., Ltd. | 25% |
| FAW Jiefang New Energy Automotive Sales Co., Ltd. | 25% |
| FAW Jiefang Uni-D (Tianjin) Technology Industry Co., Ltd. | 25% |
2. Tax preference
Jiefang Limited, a subsidiary of the Company, is recognized as a high-tech enterprise according to the High-tech Enterprise Certificate (issued on September 10, 2020, with a certificate number of GR202022000336)
jointly issued by the Science and Technology Department of Jilin Province, the Department of Finance of JilinProvince and the Jilin Provincial Tax Service of State Taxation Administration. The certificate is valid for threeyears, during which the corporate income tax will be at a rate of 15%.FAW Jiefang Dalian Diesel Engine Co., Ltd., a subsidiary of the Company, is recognized as a high-techenterprise according to the list of the third batch of high-tech enterprises (with a certificate number ofGR202121200892) in 2021 issued by Dalian on December 15, 2021. The certificate is valid for three years,during which the corporate income tax will be at a rate of 15%.VII. Notes to Items in Consolidated Financial Statements
1. Monetary capital
Unit: CNY
| Item | Ending Balance | Opening Balance |
| Bank deposit | 26,687,673,489.67 | 20,992,347,381.12 |
| Other monetary capital | 49,662,510.03 | 49,126,036.59 |
| Total | 26,737,335,999.70 | 21,041,473,417.71 |
| Including: total amount deposited abroad | 13,647,096.14 | 13,903,726.95 |
| Total amount with limited use due to mortgage, pledge or freezing | 51,206,388.53 | 50,667,983.38 |
Other descriptionDetails of restricted monetary capital are as follows:
Unit: CNY
| Item | Ending Balance | Beginning Balance |
| Security deposit for three types of personnel | 27,565,092.10 | 27,077,797.58 |
| Housing maintenance fund | 22,097,418.52 | 22,048,239.01 |
| Court freezing | 1,543,877.91 | 1,541,946.79 |
| Total | 51,206,388.53 | 50,667,983.38 |
2. Notes receivable
(1) Classified presentation of notes receivable
Unit: CNY
| Item | Ending Balance | Opening Balance |
| Commercial acceptance notes | 199,257,997.67 | 186,748,716.22 |
| Total | 199,257,997.67 | 186,748,716.22 |
Unit: CNY
| Category | Ending Balance | Opening Balance | ||||||||
| Book Balance | Provision for Bad Debts | Book value | Book balance | Provision for Bad Debts | Book Value | |||||
| Amount | Scale | Amount | Provision Proportion | Amount | Scale | Amount | Provision Proportion | |||
| Notes receivable with provision for bad debts by portfolio | 200,128,605.00 | 100.00% | 870,607.33 | 0.44% | 199,257,997.67 | 187,550,142.00 | 100.00% | 801,425.78 | 0.43% | 186,748,716.22 |
| Including: | ||||||||||
| Commercial acceptance bill | 200,128,605.00 | 100.00% | 870,607.33 | 0.44% | 199,257,997.67 | 187,550,142.00 | 100.00% | 801,425.78 | 0.43% | 186,748,716.22 |
| Total | 200,128,605.00 | 100.00% | 870,607.33 | 0.44% | 199,257,997.67 | 187,550,142.00 | 100.00% | 801,425.78 | 0.43% | 186,748,716.22 |
Provision for bad debts by portfolio: commercial acceptance bill
Unit: CNY
| Name | Ending Balance | ||
| Book Balance | Provision for Bad Debts | Provision Proportion | |
| Less than one year | 200,128,605.00 | 870,607.33 | 0.44% |
| Total | 200,128,605.00 | 870,607.33 | |
Description of the basis for determining this portfolio:
Information about the provision for bad debts shall be disclosed in the same way as that of other receivables ifthe provision for bad debts of notes receivable is based on the general model of expected credit losses:
?Applicable □ Not applicable
Unit: CNY
| Aging | Ending Balance | Ending Balance of the Previous Year | ||||
| Notes Receivable | Provision for Bad Debts | Expected Credit Loss Rate (%) | Notes Receivable | Provision for Bad Debts | Expected credit Loss RATE (%) | |
| Less than 1 year | 200,128,605 .00 | 870,607.33 | 0.44 | 187,550,142.00 | 801,425.78 | 0.43 |
(2) Provision, recovery, or reversal of bad debts in the current period
Provision for bad debts in the current period:
Unit: CNY
| Category | Opening Balance | Change In The Current Period | Ending Balance | |||
| Provision | Recovery or Reversal | Write-off | Others | |||
| Commercial acceptance bill | 801,425.78 | 69,181.55 | 870,607.33 | |||
| Total | 801,425.78 | 69,181.55 | 870,607.33 | |||
Important provision for bad debts recovered or reversed in the current period:
□ Applicable Not applicable?
(3) Notes receivable endorsed or discounted by the Company at the end of the period but not yet due onthe balance sheet date
Unit: CNY
| Item | Derecognized Amount at the End of the Period | Amount not Derecognized at the End of the Period |
| Bank acceptance bill | 7,693,661,864.75 | |
| Total | 7,693,661,864.75 |
3. Accounts receivable
(1) Disclosure of accounts receivable by category
Unit: CNY
| Category | Ending Balance | Opening Balance | ||||||||
| Book Balance | Provision for Bad Debts | Book value | Book Balance | Provision for Bad Debts | Book Value | |||||
| Amount | Scale | Amount | Provision Proportion | Amount | Scale | Amount | Provision Proportion | |||
| Accounts receivable with provision for bad debts on an individual basis | 82,004,650.69 | 2.72% | 82,004,650.69 | 100.00% | 82,039,650.69 | 8.10% | 82,039,650.69 | 100.00% | ||
| Including: | ||||||||||
| Accounts receivable with provision for bad debts by portfolio | 2,929,802,288.92 | 97.28% | 95,574,585.34 | 3.26% | 2,834,227,703.58 | 930,458,334.81 | 91.90% | 63,367,996.39 | 6.81% | 867,090,338.42 |
| Including: | ||||||||||
| Aging portfolio | 2,929,802,288.92 | 97.28% | 95,574,585.34 | 3.26% | 2,834,227,703.58 | 930,458,334.81 | 91.90% | 63,367,996.39 | 6.81% | 867,090,338.42 |
| Total | 3,011,806,939.61 | 100.00% | 177,579,236.03 | 5.90% | 2,834,227,703.58 | 1,012,497,985.50 | 100.00% | 145,407,647.08 | 14.36% | 867,090,338.42 |
Provision for bad debts on an individual basis
Unit: CNY
| Name | Ending Balance | |||
| Book Balance | Provision for Bad Debts | Provision Proportion | Reasons for Provision | |
| Jiangsu Xinrui New Energy Vehicle Technology Co., Ltd. | 37,612,001.70 | 37,612,001.70 | 100.00% | It is highly probable that the amounts will not be recovered |
| Zhejiang Hanglun Ligang Trading Co., Ltd. | 8,581,536.83 | 8,581,536.83 | 100.00% | It is highly probable that the amounts will not be recovered |
| Dalian Qingfeng Bus Co., Ltd. | 8,043,264.87 | 8,043,264.87 | 100.00% | It is highly probable that the amounts will not be recovered |
| Beijing Hotan Automobile Modification Co., Ltd. | 7,436,520.00 | 7,436,520.00 | 100.00% | It is highly probable that the amounts will not be recovered |
| Changchun Xiongtu New Energy Vehicle Co., Ltd. | 6,230,500.00 | 6,230,500.00 | 100.00% | It is highly probable that the amounts will not be recovered |
| Zhonghe Shunyang Supply Chain Management Co., Ltd. | 5,643,600.00 | 5,643,600.00 | 100.00% | It is highly probable that the amounts will not be recovered |
| Shuozhou Jinsheng Automobile Trading Co., Ltd. | 1,822,961.43 | 1,822,961.43 | 100.00% | Lawsuits have been filed and it is highly probable that the amounts will not be recovered |
| FAW Jingye Engine Co., Ltd. | 1,820,957.23 | 1,820,957.23 | 100.00% | It is highly probable that the amounts will not be recovered |
| Xinjiang Jingyang Optoelectronic Co., Ltd. | 1,179,590.41 | 1,179,590.41 | 100.00% | Lawsuits have been filed and it is highly probable that the amounts will not be recovered |
| Yulin Jiayu Jiefang Automobile Sales Co., Ltd. | 971,012.59 | 971,012.59 | 100.00% | Lawsuits have been filed and it is highly probable that the amounts will not be recovered |
| Shenyang Jinbei Vehicle Manufacturing Co., Ltd. | 889,279.05 | 889,279.05 | 100.00% | Lawsuits have been filed and it is highly probable that the amounts will not be recovered |
| Jilin Zhuzhan Automobile Trading Co., Ltd. | 813,566.00 | 813,566.00 | 100.00% | It is highly probable that the amounts will not be recovered |
| Dalian Baofeng Automobile Sales Co., Ltd. | 496,200.00 | 496,200.00 | 100.00% | It is highly probable that the amounts will not be recovered |
| Liangshan Huatai Trading Co., Ltd. | 349,190.00 | 349,190.00 | 100.00% | It is highly probable that the amounts will not be recovered |
| Zhejiang Baoding Automobile Sales Co., Ltd. | 80,035.12 | 80,035.12 | 100.00% | It is highly probable that the amounts will not be recovered |
| Transportation Group (Qingdao) Sunshine Automobile Sales and Service Co., Ltd. | 20,835.47 | 20,835.47 | 100.00% | It is highly probable that the amounts will not be recovered |
| Yancheng Zhongwei Bus Co., Ltd. | 13,599.99 | 13,599.99 | 100.00% | It is highly probable that the amounts will not be recovered |
| Total | 82,004,650.69 | 82,004,650.69 |
Provision for bad debts by portfolio: aging portfolio
Unit: CNY
| Name | Ending Balance | ||
| Book Balance | Provision for Bad Debts | Provision Proportion | |
| Aging portfolio | 2,929,802,288.92 | 95,574,585.34 | 3.26% |
| Total | 2,929,802,288.92 | 95,574,585.34 | |
Description of the basis for determining this portfolio:
Information about the provision for bad debts shall be disclosed in the same way as that of other receivables ifthe provision for bad debts of accounts receivable is based on the general model of expected credit losses:
□ Applicable Not applicable?
Disclosure by aging
Unit: CNY
| Aging | Ending Balance |
| Within 1 year (including 1 year) | 2,708,181,856.35 |
| Including: 0-6 months | 2,587,976,078.45 |
| 7-12 months | 120,205,777.90 |
| 1-2 years | 113,283,606.25 |
| 2-3 years | 88,363,727.05 |
| Over 3 years | 101,977,749.96 |
| 3-4 years | 10,332,160.65 |
| 4-5 years | 57,808,221.70 |
| Over 5 years | 33,837,367.61 |
| Total | 3,011,806,939.61 |
(2) Provision, recovery, or reversal of bad debts in the current period
Provision for bad debts in the current period:
Unit: CNY
| Category | Opening Balance | Change in the Current Period | Ending Balance | |||
| Provision | Recovery or Reversal | Write-off | Others | |||
| Accounts receivable | 145,407,647.08 | 32,229,937.26 | -35,000.00 | -23,348.31 | 177,579,236.03 | |
| Total | 145,407,647.08 | 32,229,937.26 | -35,000.00 | -23,348.31 | 177,579,236.03 | |
Important provision for bad debts recovered or reversed in the current period:
Unit: CNY
| Name of Unit | Amount Recovered or Reversed | Recovery Method |
| Jilin Zhuzhan Automobile Trading Co., Ltd. | 35,000.00 | Recovery of bank deposits |
| Total | 35,000.00 |
(3) Top five ending balances of accounts receivables classified by debtors
Unit: CNY
| Name of Unit | Ending Balance of Accounts Receivable | Proportion in Total Ending Balance of Accounts Receivable | Ending Balance of Provision for Bad Debts |
| China FAW Group Import & Export Co., Ltd. | 1,465,254,854.26 | 48.65% | 4,069,205.50 |
| Customer 1 | 104,405,019.49 | 3.47% | 104,405.02 |
| Customer 2 | 89,891,796.82 | 2.98% | 494,404.88 |
| Customer 3 | 74,631,860.98 | 2.48% | 410,475.23 |
| SmartLink | 73,770,000.00 | 2.45% | 73,770.00 |
| Total | 1,807,953,531.55 | 60.03% |
4. Receivables financing
Unit: CNY
| Item | Ending Balance | Opening Balance |
| Notes receivable | 8,679,460,881.09 | 3,461,653,473.66 |
| Total | 8,679,460,881.09 | 3,461,653,473.66 |
Increase/decrease in receivables financing in the current period and changes in fair value
□ Applicable Not applicable?
Information about the impairment provision shall be disclosed in the same way as that of other receivables if theimpairment provision of receivables financing is based on the general model of expected credit losses:
□ Applicable Not applicable?
Other description:
5. Advance payment
(1) Presentation of advance payment by aging
Unit: CNY
| Aging | Ending Balance | Opening Balance | ||
| Amount | Scale | Amount | Scale | |
| Within 1 year | 613,755,653.26 | 65.41% | 683,392,293.37 | 76.12% |
| 1-2 years | 224,579,144.53 | 23.94% | 179,765,899.07 | 20.02% |
| 2-3 years | 81,816,802.05 | 8.72% | 17,802,947.31 | 1.98% |
| Over 3 years | 18,074,079.50 | 1.93% | 16,873,724.33 | 1.88% |
| Total | 938,225,679.34 | 897,834,864.08 | ||
Reasons for delay in settlement of advance payment with important amounts and aging over 1 year:
Unit: CNY
| Name of Debtor | Book Balance | Proportion in Total Advance Payment (%) | Reasons for Non-settlement |
| Supplier 1 | 51,521,752.55 | 5.49% | Undue settlement period |
| Supplier 2 | 24,390,033.00 | 2.60% | Undue settlement period |
| China FAW Group Import & Export Co., Ltd. | 14,068,905.82 | 1.50% | Undue settlement period |
| Total | 89,980,691.37 | 9.59% | -- |
(2) Top five ending balances of advance payments classified by advance payment objectsThe total amount of the top five ending balances of advance payments classified by advance payment objects inthe current period is CNY 508,101,980.83, accounting for 54.16% of the total ending balance of advancepayments.Other description: none
6. Other receivables
Unit: CNY
| Item | Ending Balance | Opening Balance |
| Dividends receivable | 2,608,000.00 | 2,608,000.00 |
| Other receivables | 1,113,417,414.02 | 1,065,846,162.91 |
| Total | 1,116,025,414.02 | 1,068,454,162.91 |
(1) Dividends receivable
1) Classification of dividends receivable
Unit: CNY
| Item (or Investee) | Ending Balance | Opening Balance |
| FAW Changchun Ansteel Steel Processing and Distribution Co., Ltd. | 2,608,000.00 | 2,608,000.00 |
| Total | 2,608,000.00 | 2,608,000.00 |
(2) Other receivables
1) Classification of other receivables by nature
Unit: CNY
| Nature | Ending Book Balance | Beginning Book Balance |
| Current account | 849,945,010.62 | 915,518,158.63 |
| Claim payment | 192,234,059.14 | 197,953,339.79 |
| Margin, deposit | 156,005,961.05 | 38,988,831.99 |
| Reserve fund | 12,277,298.01 | 10,164,463.79 |
| Total | 1,210,462,328.82 | 1,162,624,794.20 |
2) Provision for bad debts
Unit: CNY
| Provision for Bad Debts | Stage I | Stage II | Stage III | Total |
| Expected Credit Losses for the Next 12 Months | Expected Credit Losses over the Entire Duration (no Credit Impairment) | Expected Credit Loss over the Entire Duration (Credit Impairment Occurred) | ||
| Balance on January 1, 2023 | 3,002,964.74 | 25,052,575.21 | 68,723,091.34 | 96,778,631.29 |
| Balance on January 1, 2023 in the current period | ||||
| 一 Transfer to stage III | -18,017.98 | 18,017.98 | ||
| Provision in the current period | 128,149.83 | 150,420.77 | 34,373.91 | 312,944.51 |
| Reversal in the current period | -46,661.00 | -46,661.00 | ||
| Balance on June 30, 2023 | 3,113,096.59 | 25,221,013.96 | 68,710,804.25 | 97,044,914.80 |
Significant book balance changes occurred in the provision for losses in the current period
□ Applicable Not applicable?
Disclosure by aging
Unit: CNY
| Aging | Ending Balance |
| Within 1 year (including 1 year) | 1,110,680,286.67 |
| Including: 0-6 months | 328,564,342.04 |
| 7-12 months | 782,115,944.63 |
| 1-2 years | 1,394,251.04 |
| 2-3 years | 4,744,941.00 |
| Over 3 years | 93,642,850.11 |
| 3-4 years | 234,122.89 |
| 4-5 years | 42,254,223.90 |
| Over 5 years | 51,154,503.32 |
| Total | 1,210,462,328.82 |
3) Provision, recovery, or reversal of bad debts in the current period
Provision for bad debts in the current period:
Unit: CNY
| Category | Opening Balance | Change in the Current Period | Ending Balance | |||
| Provision | Recovery or reversal | Write-off | Others | |||
| Other receivables | 96,778,631.29 | 312,944.51 | -24,131.00 | -22,530.00 | 97,044,914.80 | |
| Total | 96,778,631.29 | 312,944.51 | -24,131.00 | -22,530.00 | 97,044,914.80 | |
Important provision for bad debts reversed or recovered in the current period:
Unit: CNY
| Name of Unit | Amount reversed or Recovered | Recovery Method |
| Triangle Tyre Co,. Ltd. | 24,131.00 | Offset of intercourse funds |
| Total | 24,131.00 |
(4) Other receivables written off in the current period
Unit: CNY
| Item | Amount Written off |
| Other accounts receivables actually written off | 22,530.00 |
Write-off of other important receivables:
Unit: CNY
| Name of Unit | Nature of Other receivables | Amount Written off | Reason for Write-off | Write-off Procedures Performed | Whether the Payment Arises from Related transactions |
| Huai'an Yongfeng Tire Co., Ltd. | Payment for goods | 22,530.00 | This company declares bankruptcy and has no enforceable property | General manager's meeting for decisions | No |
| Total | 22,530.00 |
Notes on write-off of other receivables:
5) Top five ending balances of other receivables classified by debtors
Unit: CNY
| Name of Unit | Nature of Payment | Ending Balance | Aging | Proportion in Total Ending Balance of Other Receivables | Ending Balance of Provision for Bad Debts |
| Customer 1 | Funds for land purchase and reserve | 660,862,800.00 | Within 1 year | 54.60% | 660,862.80 |
| Customer 2 | New energy vehicle sales subsidies | 50,230,088.50 | Within 1 year | 4.15% | 462,116.81 |
| Customer 3 | New energy vehicle sales subsidies | 49,557,522.13 | Within 1 year | 4.09% | 455,929.20 |
| Customer 4 | New energy vehicle sales subsidies | 48,155,960.00 | 4-5 years | 3.98% | 48,155,960.00 |
| Customer 5 | New energy vehicle sales subsidies | 37,899,115.04 | Within 1 year | 3.13% | 348,671.86 |
| Total | 846,705,485.67 | 69.95% | 50,083,540.67 |
7. Inventories
Does the Company need to comply with the disclosure requirements of the real estate industry: No
(1) Classification of inventories
Unit: CNY
| Item | Ending Balance | Opening Balance | ||||
| Book Balance | Impairment Provision of Inventories or Contract Performance Costs | Book Value | Book Balance | Impairment Provision of Inventories or Contract Performance Costs | Book Value | |
| Raw material | 342,773,084.37 | 33,976,539.91 | 308,796,544.46 | 351,801,254.38 | 34,595,186.53 | 317,206,067.85 |
| Goods in process | 768,115,132.21 | 4,068,162.22 | 764,046,969.99 | 564,240,295.08 | 3,741,307.32 | 560,498,987.76 |
| Goods in stock | 4,114,689,772.13 | 102,394,726.26 | 4,012,295,045.87 | 3,281,304,875.32 | 183,152,615.52 | 3,098,152,259.80 |
| Revolving material | 93,898,085.73 | 2,415,110.66 | 91,482,975.07 | 92,939,661.90 | 2,463,306.64 | 90,476,355.26 |
| Others | 2,836,319,710.97 | 181,499,178.14 | 2,654,820,532.83 | 2,509,560,166.91 | 193,153,939.75 | 2,316,406,227.16 |
| Total | 8,155,795,785.41 | 324,353,717.19 | 7,831,442,068.22 | 6,799,846,253.59 | 417,106,355.76 | 6,382,739,897.83 |
(2) Impairment provision of inventories and contract performance costs
Unit: CNY
| Item | Opening Balance | Increase in the Current Period | Decrease in the Current Period | Ending Balance | ||
| Provision | Others | Reverse or Charge-off | Others | |||
| Raw material | 34,595,186.53 | 618,646.62 | 33,976,539.91 | |||
| Goods in process | 3,741,307.32 | 612,662.79 | 285,807.89 | 4,068,162.22 | ||
| Goods in stock | 183,152,615.52 | 34,263,632.69 | 115,021,521.95 | 102,394,726.26 | ||
| Revolving material | 2,463,306.64 | 48,195.98 | 2,415,110.66 | |||
| Others | 193,153,939.75 | 305,863.22 | 11,960,624.83 | 181,499,178.14 | ||
| Total | 417,106,355.76 | 35,182,158.70 | 127,934,797.27 | 324,353,717.19 | ||
8. Contract assets
Unit: CNY
| Item | Ending Balance | Opening Balance | ||||
| Book Balance | Impairment Provision | Book Value | Book Balance | Impairment Provision | Book Value | |
| Contract assets | 20,192,395.26 | 353,811.04 | 19,838,584.22 | 11,341,422.54 | 211,797.79 | 11,129,624.75 |
| Total | 20,192,395.26 | 353,811.04 | 19,838,584.22 | 11,341,422.54 | 211,797.79 | 11,129,624.75 |
Information about the impairment provision shall be disclosed in the same way as that of other receivables if theimpairment provision of contract assets is based on the general model of expected credit losses:
?Applicable □ Not applicableProvision for bad debts by portfolio: aging portfolio
Unit: CNY
| Category | Contract Assets | Provision for Bad Debts | Expected Credit Loss Rate (%) |
| Within 1 year | 17,191,667.90 | 65,751.33 | 0.38 |
| 1-2 years | 3,000,727.36 | 288,059.71 | 9.60 |
| Total | 20,192,395.26 | 353,811.04 | 1.75 |
Impairment provision of contract assets in the current period:
Unit: CNY
| Item | Provision in the Current Period | Reversal in the Current Period | Charge-off/Write-off in the Current Period | Reason |
| Impairment provision of contract assets | 142,013.25 | Risks in payment collection | ||
| Total | 142,013.25 |
Other description
9. Non-current assets due within one year
Unit: CNY
| Item | Ending Balance | Opening Balance |
| Long-term receivables due within 1 year | 202,027,832.48 | 191,262,030.30 |
| Total | 202,027,832.48 | 191,262,030.30 |
10. Other current assets
Unit: CNY
| Item | Ending Balance | Opening Balance |
| Input VAT | 436,429,149.81 | 510,325,627.83 |
| Input VAT to be certified | 240,680,761.48 | 384,601,871.76 |
| Total | 677,109,911.29 | 894,927,499.59 |
Other description:
11 Long-term receivables
(1) Long-term receivables
Unit: CNY
| Item | Ending Balance | Opening Balance | Discount Rate Range | ||||
| Book Balance | Provision for Bad Debts | Book Value | Book Balance | Provision for Bad Debts | Book Value | ||
| Sales of goods by installment | 329,561,172.00 | 5,798,130.40 | 323,763,041.60 | 315,738,954.37 | 2,870,336.64 | 312,868,617.73 | |
| Long-term receivables due within 1 year | -207,270,278.41 | -5,242,445.93 | -202,027,832.48 | -193,577,418.87 | -2,315,388.57 | -191,262,030.30 | |
| Total | 122,290,893.59 | 555,684.47 | 121,735,209.12 | 122,161,535.50 | 554,948.07 | 121,606,587.43 | |
Impairment of provision for bad debts
Unit: CNY
| Provision for Bad Debts | Stage I | Stage II | Stage III | Total |
| Expected credit Losses for the next 12 Months | Expected credit Losses over the entire Duration (no Credit Impairment) | Expected credit Loss over the entire Duration (Credit Impairment Occurred) | ||
| Balance on January 1, 2023 | 2,870,336.64 | 2,870,336.64 | ||
| Balance on January 1, 2023 in the current period | ||||
| Provision in the current period | 2,927,793.76 | 2,927,793.76 | ||
| Balance on June 30, 2023 | 5,798,130.40 | 5,798,130.40 |
Significant book balance changes occurred in the provision for losses in the current period
□ Applicable Not applicable?
12 Long-term equity investments
Unit: CNY
| Investee | Opening Balance (Book Value) | Increase/Decrease in the Current Period | Ending Balance (Book Value) | Ending Balance of Impairment Provision | |||||||
| Additional Investment | Reduced Investment | Investment Gains or Losses Recognized under the Equity Method | Adjustment to other Comprehensive Income | Changes in Other Equity | Cash Dividends and Profits Declared to Pay | Impairment Provision | Others | ||||
| I. Joint ventures | |||||||||||
| II. Associated enterprises | |||||||||||
| First Automobile Finance Co., Ltd. | 4,270,037,969.59 | 228,656,115.49 | 258,953.96 | 4,498,953,039.04 | |||||||
| Sanguard Automobile Insurance Co., Ltd. | 201,021,162.24 | 3,906,929.80 | -4,533.20 | 4,835,877.87 | 200,087,680.97 | ||||||
| FAW Changchun Ansteel Steel Processing and Distribution Co., Ltd. | 87,066,229.18 | 1,698,509.34 | -23,772.68 | 88,740,965.84 | |||||||
| Changchun | 17,288,166.13 | -368,632.80 | 16,919,533.33 | ||||||||
| Wabco Automotive Control System Co., Ltd. | |||||||||||
| Suzhou Zhito Technology Co., Ltd. | |||||||||||
| FAW Changchun Baoyou Jiefang Steel Processing and Distribution Co., Ltd. | 43,856,468.58 | 3,203,595.58 | 6,892,912.77 | 40,167,151.39 | |||||||
| FAW Jiefang Fujie (Tianjin) Technology Industry Co., Ltd. | 37,092,567.41 | -118,756.81 | 36,973,810.60 | ||||||||
| SmartLink | 286,072.71 | 9,266,800.00 | -9,552,872.71 | ||||||||
| Foshan Diyiyuan New | 36,000,000.00 | -302,925.22 | 35,697,074.78 |
| Energy Technology Co., Ltd. | |||||||||||
| Jiefang Times New Energy Technology Co., Ltd. | 45,000,000.00 | -181,500.00 | 44,818,500.00 | ||||||||
| Changchun Automotive Test Center Co., Ltd. | 670,872,897.94 | 6,235,810.40 | 677,108,708.34 | ||||||||
| Subtotal | 4,692,648,635.84 | 725,139,697.94 | 233,176,273.07 | 254,420.76 | -23,772.68 | 11,728,790.64 | 5,639,466,464.29 | ||||
| Total | 4,692,648,635.84 | 725,139,697.94 | 233,176,273.07 | 254,420.76 | -23,772.68 | 11,728,790.64 | 5,639,466,464.29 |
Other description
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
13 Investment in other equity instruments
Unit: CNY
| Item | Ending Balance | Opening Balance |
| REFIRE | 480,780,000.00 | 480,780,000.00 |
| Total | 480,780,000.00 | 480,780,000.00 |
14. Investment properties
(1) Investment properties measured at cost
?Applicable □ Not applicable
Unit: CNY
| Item | Houses and Buildings | Land Use Right | Project under Construction | Total |
| I. Original book value | ||||
| 1. Opening Balance | 145,745,882.84 | 7,364,400.94 | 153,110,283.78 | |
| 2. Increase in the Current Period | 1,836,578.74 | 1,836,578.74 | ||
| (1) Purchase | ||||
| (2) Transfer from inventories/fixed assets/construction in progress | 1,836,578.74 | 1,836,578.74 | ||
| (3) Increase due to business combination | ||||
| 3. Decrease in the Current Period | 2,927,421.41 | 2,927,421.41 | ||
| (1) Disposal | ||||
| (2) Other transfer-out | 2,927,421.41 | 2,927,421.41 | ||
| 4. Ending Balance | 144,655,040.17 | 7,364,400.94 | 152,019,441.11 | |
| II. Accumulated depreciation and accumulated amortization | ||||
| 1. Opening Balance | 71,218,610.71 | 1,244,075.59 | 72,462,686.30 | |
| 2. Increase in the Current Period | 5,040,873.89 | 74,947.92 | 5,115,821.81 | |
| (1) Provision or amortization | 3,487,312.86 | 74,947.92 | 3,562,260.78 | |
| (2) Other increases | 1,553,561.03 | 1,553,561.03 | ||
| 3. Decrease in the Current Period | 1,430,556.04 | 1,430,556.04 |
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
| (1) Disposal | ||||
| (2) Other transfer-out | 1,430,556.04 | 1,430,556.04 | ||
| 4. Ending Balance | 74,828,928.56 | 1,319,023.51 | 76,147,952.07 | |
| III. Impairment provision | ||||
| 1. Opening Balance | ||||
| 2. Increase in the Current Period | ||||
| (1) Provision | ||||
| 3. Decrease in the Current Period | ||||
| (1) Disposal | ||||
| (2) Other transfer-out | ||||
| 4. Ending Balance | ||||
| IV. Book value | ||||
| 1. Ending book value | 69,826,111.61 | 6,045,377.43 | 75,871,489.04 | |
| 2. Beginning book value | 74,527,272.13 | 6,120,325.35 | 80,647,597.48 |
(2) Investment properties measured at fair value
□ Applicable Not applicable?
15 Fixed assets
Unit: CNY
| Item | Ending Balance | Opening Balance |
| Fixed assets | 9,722,689,355.68 | 9,604,636,127.53 |
| Disposal of fixed assets | 6,084,530.20 | 8,286,682.75 |
| Total | 9,728,773,885.88 | 9,612,922,810.28 |
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
(1) Details of fixed assets
Unit: CNY
| Item | Houses and Buildings | Machinery Equipment | Transportation Equipment | Electronic Equipment | Office Equipment | Others | Total |
| I. Original book value: | |||||||
| 1. Opening Balance | 5,725,009,716.16 | 15,656,156,281.82 | 163,214,691.23 | 662,116,184.02 | 60,661,288.33 | 1,331,905,071.36 | 23,599,063,232.92 |
| 2. Increase in the Current Period | 108,671,482.61 | 906,448,079.26 | 16,338,028.90 | 29,574,306.89 | 1,616,140.53 | 4,427,908.05 | 1,067,075,946.24 |
| (1) Purchase | 13,771.81 | 15,046,441.18 | 560,724.98 | 10,920,472.84 | 19,512.17 | 1,427,091.85 | 27,988,014.83 |
| (2) Transfer from construction in progress | 84,998,544.20 | 835,134,183.48 | 13,862,727.14 | 17,062,332.04 | 832,998.51 | 2,196,658.79 | 954,087,444.16 |
| (3) Increase due to business combination | |||||||
| (4) Other increases | 23,659,166.60 | 56,267,454.60 | 1,914,576.78 | 1,591,502.01 | 763,629.85 | 804,157.41 | 85,000,487.25 |
| 3. Decrease in the Current Period | 177,421,665.73 | 227,747,840.72 | 3,783,183.84 | 8,440,837.29 | 1,095,750.11 | 5,031,659.11 | 423,520,936.80 |
| (1) Disposal or retirement | 157,464,159.65 | 683,585.61 | 4,107,063.76 | 255,612.81 | 4,004,419.43 | 166,514,841.26 | |
| (2) Other decreases | 177,421,665.73 | 70,283,681.07 | 3,099,598.23 | 4,333,773.53 | 840,137.30 | 1,027,239.68 | 257,006,095.54 |
| 4. Ending Balance | 5,656,259,533.04 | 16,334,856,520.36 | 175,769,536.29 | 683,249,653.62 | 61,181,678.75 | 1,331,301,320.30 | 24,242,618,242.36 |
| II. Accumulated depreciation | |||||||
| 1. Opening Balance | 2,311,008,528.82 | 9,948,863,333.22 | 116,715,194.87 | 483,841,486.87 | 44,160,940.50 | 1,059,255,698.93 | 13,963,845,183.21 |
| 2. Increase in the Current Period | 159,113,593.58 | 550,399,553.37 | 11,719,891.26 | 51,764,806.73 | 3,371,123.49 | 50,294,679.70 | 826,663,648.13 |
| (1) Provision | 137,415,189.16 | 527,920,288.72 | 9,857,032.09 | 50,314,948.47 | 2,779,364.02 | 49,712,493.03 | 777,999,315.49 |
| (2) Other increases | 21,698,404.42 | 22,479,264.65 | 1,862,859.17 | 1,449,858.26 | 591,759.47 | 582,186.67 | 48,664,332.64 |
| 3. Decrease in the Current Period | 96,240,207.22 | 176,649,700.34 | 3,338,803.51 | 8,293,234.05 | 926,551.83 | 4,511,341.74 | 289,959,838.69 |
| (1) Disposal or retirement | 130,682,184.40 | 659,396.63 | 4,105,963.76 | 247,668.45 | 3,785,480.45 | 139,480,693.69 | |
| (2) Other decreases | 96,240,207.22 | 45,967,515.94 | 2,679,406.88 | 4,187,270.29 | 678,883.38 | 725,861.29 | 150,479,145.00 |
| 4. Ending Balance | 2,373,881,915.18 | 10,322,613,186.25 | 125,096,282.62 | 527,313,059.55 | 46,605,512.16 | 1,105,039,036.89 | 14,500,548,992.65 |
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
| III. Impairment provision | |||||||
| 1. Opening Balance | 12,344.37 | 28,361,635.01 | 2,207,942.80 | 30,581,922.18 | |||
| 2. Increase in the Current Period | |||||||
| (1) Provision | |||||||
| 3. Decrease in the Current Period | 11,202,028.15 | 11,202,028.15 | |||||
| (1) Disposal or retirement | 11,202,028.15 | 11,202,028.15 | |||||
| 4. Ending Balance | 12,344.37 | 17,159,606.86 | 2,207,942.80 | 19,379,894.03 | |||
| IV. Book value | |||||||
| 1. Ending book value | 3,282,365,273.49 | 5,995,083,727.25 | 50,673,253.67 | 155,936,594.07 | 14,576,166.59 | 224,054,340.61 | 9,722,689,355.68 |
| 2. Beginning book value | 3,413,988,842.97 | 5,678,931,313.59 | 46,499,496.36 | 178,274,697.15 | 16,500,347.83 | 270,441,429.63 | 9,604,636,127.53 |
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
(2) Temporary idle fixed assets
Unit: CNY
| Item | Original Book Value | Accumulated Depreciation | Impairment Provision | Book Value | Remarks |
| Machinery equipment | 43,234,813.34 | 24,826,861.88 | 16,639,992.21 | 1,767,959.25 | |
| Others | 72,226,913.83 | 68,718,132.23 | 2,207,942.80 | 1,300,838.80 | |
| Total | 115,461,727.17 | 93,544,994.11 | 18,847,935.01 | 3,068,798.05 |
(3) Fixed assets leased out under operating leases
Unit: CNY
| Item | Ending Book Value |
| Means of transport | 9,059.84 |
| Total | 9,059.84 |
(4) Disposal of fixed assets
Unit: CNY
| Item | Ending Balance | Opening Balance |
| Houses and buildings | 37,264.20 | 283,806.99 |
| Machinery equipment | 5,567,925.76 | 7,759,672.33 |
| Means of transport | 44,554.50 | 113,084.68 |
| Electronic equipment | 76,503.87 | 77,126.05 |
| Office equipment | 50,976.33 | 45,702.70 |
| Others | 307,305.54 | 7,290.00 |
| Total | 6,084,530.20 | 8,286,682.75 |
Other description:
16 Construction in progress
Unit: CNY
| Item | Ending Balance | Opening Balance |
| Project under construction | 1,680,851,141.66 | 1,902,143,354.11 |
| Total | 1,680,851,141.66 | 1,902,143,354.11 |
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
(1) Construction in progress
Unit: CNY
| Item | Ending Balance | Opening Balance | ||||
| Book balance | Impairment Provision | Book Value | Book Balance | Impairment Provision | Book Value | |
| New and reconstructed investment project | 339,485,187.80 | 1,945,416.12 | 337,539,771.68 | 230,889,214.48 | 1,945,416.12 | 228,943,798.36 |
| Technical transformation investment project | 1,343,366,867.17 | 55,497.19 | 1,343,311,369.98 | 1,673,255,052.94 | 55,497.19 | 1,673,199,555.75 |
| Total | 1,682,852,054.97 | 2,000,913.31 | 1,680,851,141.66 | 1,904,144,267.42 | 2,000,913.31 | 1,902,143,354.11 |
(2) Changes in important construction in progress in the current period
Unit: CNY
| Project name | Budget | Opening Balance | Increase in the Current Period | Amount Transferred to Fixed Assets in the Current Period | Other Decreases in the Current Period | Ending Balance | Proportion of Accumulated Investment in Constructions to Budget | Project Progress | Cumulative Amount of Capitalized Interest | Including: Capitalized Interest Amount during the Current Period | Capitalization Rate of Interest in Current Period | Capital Source |
| FAW Jiefang commercial vehicle Guanghan base project | 999,970,000.00 | 620,489,096.96 | -56,572,385.55 | 563,916,711.41 | 56.39% | 62.05% | Others | |||||
| Axle base construction project and heavy replacement axle technology | 989,859,950.93 | 421,427,528.84 | 58,505,153.94 | 13,957,510.62 | 465,975,172.16 | 46.48% | 66.00% | Others |
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
| upgrade (phase I) | ||||||||||||
| Collinear project of 50,000 sets of new 13L and M series engines | 667,780,000.00 | 102,315,208.39 | 10,662,676.76 | 112,977,885.15 | 16.92% | 17.00% | Others | |||||
| R&D capacity improvement project of FAW Jiefang Qingdao Base | 693,162,000.00 | 49,273,323.85 | 80,664,888.14 | 129,938,211.99 | 18.75% | 22.86% | Others | |||||
| FAW Jiefang south new energy base project | 413,800,000.00 | 41,677,157.08 | 342,293.20 | 42,019,450.28 | 45.95% | 76.68% | Others | |||||
| Technical transformation project of integrated heavy duty AMT gearbox | 898,000,000.00 | 7,939,826.14 | 22,422,379.56 | 2,813,008.86 | 27,549,196.84 | 3.38% | 4.37% | Others | ||||
| New energy product introduction and smart logistics upgrade project | 79,820,000.00 | 20,357,026.83 | 181,981.13 | 20,539,007.96 | 25.73% | 26.63% | Others | |||||
| M engine crankshaft capacity improvement project (W31000000111) | 30,500,000.00 | 19,768,205.86 | 19,768,205.86 | 64.81% | 64.81% | Others | ||||||
| Project of exiting the city and entering the industrial park | 936,068,800.00 | 19,204,724.39 | 53,094.34 | 19,257,818.73 | 94.22% | 99.80% | Others | |||||
| Drivetrain assembly NVH bench laboratory AC motor dynamometer | 34,940,000.00 | 616,250.44 | 15,378,077.60 | 15,994,328.04 | 45.78% | 45.78% | Others |
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
| Motor assembly line | 22,300,000.00 | 15,221,238.88 | 15,221,238.88 | 68.26% | 68.26% | Others | ||||||
| 16L Engine construction and natural gas test capacity improvement project (16L) | 1,227,429,000.00 | 302,528,245.34 | 179,880,930.95 | 470,425,539.61 | 11,983,636.68 | 66.96% | 86.42% | Others | ||||
| Total | 6,993,629,750.93 | 1,620,817,833.00 | 311,519,090.07 | 487,196,059.09 | 1,445,140,863.98 |
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
17 Productive biological assets
(1) Productive biological assets measured at cost
□ Applicable Not applicable?
(2) Productive biological assets measured at fair value
□ Applicable Not applicable?
18 Oil and gas assets
□ Applicable Not applicable?
19 Right-of-use assets
Unit: CNY
| Item | Houses and Buildings | Machinery Equipment | Land | Total |
| I. Original book value | ||||
| 1. Opening Balance | 203,880,616.59 | 54,778,761.06 | 23,719,044.14 | 282,378,421.79 |
| 2. Increase in the Current Period | ||||
| 3. Decrease in the Current Period | 6,458,400.84 | 6,458,400.84 | ||
| 4. Ending Balance | 197,422,215.75 | 54,778,761.06 | 23,719,044.14 | 275,920,020.95 |
| II. Accumulated depreciation | ||||
| 1. Opening Balance | 71,135,818.41 | 13,022,260.79 | 84,158,079.20 | |
| 2. Increase in the Current Period | 22,563,052.42 | 5,477,876.11 | 1,919,344.32 | 29,960,272.85 |
| (1) Provision | 22,563,052.42 | 5,477,876.11 | 1,919,344.32 | 29,960,272.85 |
| 3. Decrease in the Current Period | 5,790,290.48 | 5,790,290.48 | ||
| (1) Disposal | 5,790,290.48 | 5,790,290.48 | ||
| 4. Ending Balance | 87,908,580.35 | 5,477,876.11 | 14,941,605.11 | 108,328,061.57 |
| III. Impairment provision | ||||
| 1. Opening Balance | ||||
| 2. Increase in the Current Period | ||||
| (1) Provision | ||||
| 3. Decrease in the Current Period | ||||
| (1) Disposal | ||||
| 4. Ending Balance | ||||
| IV. Book value |
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
| 1. Ending book value | 109,513,635.40 | 49,300,884.95 | 8,777,439.03 | 167,591,959.38 |
| 2. Beginning book value | 132,744,798.18 | 54,778,761.06 | 10,696,783.35 | 198,220,342.59 |
Other description:
20 Intangible Assets
(1) Details of Intangible Assets
Unit: CNY
| Item | Land Use Right | Patent Rights | Non-patented Technology | Software | Total |
| I. Original book value | |||||
| 1. Opening Balance | 2,638,198,126.04 | 367,511,725.92 | 607,046,360.09 | 3,612,756,212.05 | |
| 2. Increase in the Current Period | 42,710,875.82 | 36,090,410.17 | 78,801,285.99 | ||
| (1) Purchase | 35,053,806.40 | 35,053,806.40 | |||
| (2) Internal R&D | |||||
| (3) Increase due to business combination | |||||
| (4) Other increases | 42,710,875.82 | 1,036,603.77 | 43,747,479.59 | ||
| 3. Decrease in the Current Period | 42,710,875.82 | 3,606,009.01 | 46,316,884.83 | ||
| (1) Disposal | 2,569,405.24 | 2,569,405.24 | |||
| (2) Other decreases | 42,710,875.82 | 1,036,603.77 | 43,747,479.59 | ||
| 4. Ending Balance | 2,638,198,126.04 | 367,511,725.92 | 639,530,761.25 | 3,645,240,613.21 | |
| II. Accumulated amortization | |||||
| 1. Opening Balance | 553,533,325.53 | 303,361,007.48 | 206,764,960.99 | 1,063,659,294.00 | |
| 2. Increase in the Current Period | 39,444,569.03 | 22,975,605.59 | 41,640,225.43 | 104,060,400.05 | |
| (1) Provision | 28,018,476.71 | 22,975,605.59 | 40,752,092.27 | 91,746,174.57 | |
| (2) Other increases | 11,426,092.32 | 888,133.16 | 12,314,225.48 | ||
| 3. Decrease in the Current Period | 11,282,888.01 | 3,416,620.26 | 14,699,508.27 | ||
| (1) Disposal | |||||
| (2) Others | 11,282,888.01 | 3,416,620.26 | 14,699,508.27 | ||
| 4. Ending Balance | 581,695,006.55 | 326,336,613.07 | 244,988,566.16 | 1,153,020,185.78 |
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
| III. Impairment provision | |||||
| 1. Opening Balance | |||||
| 2. Increase in the Current Period | |||||
| (1) Provision | |||||
| 3. Decrease in the Current Period | |||||
| (1) Disposal | |||||
| 4. Ending Balance | |||||
| IV. Book value | |||||
| 1. Ending book value | 2,056,503,119.49 | 41,175,112.85 | 394,542,195.09 | 2,492,220,427.43 | |
| 2. Beginning book value | 2,084,664,800.51 | 64,150,718.44 | 400,281,399.10 | 2,549,096,918.05 |
The proportion of intangible assets formed through internal R&D to the balance of intangible assets at the endof current period is 0.00%.21 Development expenditures
Unit: CNY
| Item | Opening Balance | Increase in the Current Period | Decrease in the Current Period | Ending Balance | ||
| Internal Development Expenditures | Others | Recognized as Intangible Assets | Transferred to Current Profits and Losses | |||
| Expenses and expenditures | 1,248,047,703.54 | 1,248,047,703.54 | ||||
| Total | 1,248,047,703.54 | 1,248,047,703.54 | ||||
Other description22 Long-term deferred expenses
Unit: CNY
| Item | Opening Balance | Increase in the Current Period | Amortization Amount in the Current Period | Other Decreases | Ending Balance |
| Maintenance, fire protection transformation and supporting expenses | 130,439.66 | 87,645.68 | 42,793.98 | ||
| Total | 130,439.66 | 87,645.68 | 42,793.98 |
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
Other description23 Deferred income tax assets and deferred income tax liabilities
(1) Deferred income tax assets not offset
Unit: CNY
| Item | Ending Balance | Opening Balance | ||
| Deductible Temporary Difference | Deferred Income Tax Assets | Deductible Temporary Difference | Deferred Income Tax Assets | |
| Impairment provision of assets | 587,634,020.62 | 100,784,037.71 | 633,651,664.00 | 111,898,550.65 |
| Unrealized profits of internal transactions | 11,827,733.38 | 2,956,933.35 | 11,827,733.38 | 2,956,933.35 |
| Deductible losses | 7,305,636,510.55 | 1,317,196,265.41 | 5,145,166,718.01 | 927,446,279.03 |
| Estimated liabilities | 849,704,115.08 | 143,268,850.04 | 794,067,908.68 | 132,797,620.71 |
| Employee compensation payable | 86,496,945.92 | 14,710,089.44 | 118,991,183.21 | 20,016,363.56 |
| Accrued expenses | 2,736,473,941.65 | 613,455,010.40 | 3,175,125,774.27 | 742,710,859.21 |
| Deferred income | 492,142,773.14 | 101,034,898.37 | 538,046,593.82 | 108,889,119.49 |
| Contract liabilities | 559,876,008.52 | 86,290,299.42 | 539,407,507.24 | 84,634,179.21 |
| Total | 12,629,792,048.86 | 2,379,696,384.14 | 10,956,285,082.61 | 2,131,349,905.21 |
(2) Deferred income tax liabilities not offset
Unit: CNY
| Item | Ending Balance | Opening Balance | ||
| Taxable temporary difference | Deferred income tax liabilities | Taxable temporary difference | Deferred income tax liabilities | |
| Depreciation of fixed assets with amortization period longer than tax preference period | 2,204,198,890.42 | 393,846,150.73 | 2,206,140,811.13 | 386,257,051.99 |
| Accrued interest income | 249,764,180.74 | 37,529,517.42 | 293,135,708.15 | 44,112,815.94 |
| Total | 2,453,963,071.16 | 431,375,668.15 | 2,499,276,519.28 | 430,369,867.93 |
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
(3) Details of unrecognized deferred tax assets
Unit: CNY
| Item | Ending Balance | Opening Balance |
| Deductible temporary difference | 647,468,913.68 | 619,818,965.27 |
| Deductible losses | 577,896,375.06 | 499,742,487.05 |
| Total | 1,225,365,288.74 | 1,119,561,452.32 |
(4) Deductible losses of unrecognized deferred tax assets will be due in the following years
Unit: CNY
| Year | Ending amount | Beginning balance | Remarks |
| 2023 | |||
| 2024 | |||
| 2025 | |||
| 2026 | 1,441,940.00 | 1,441,940.00 | |
| 2027 | 3,524,136.57 | 3,524,136.57 | |
| 2028 | 260,797,353.60 | 259,853,735.45 | |
| 2029 | 41,881,736.88 | 41,881,736.88 | |
| 2030 | |||
| 2031 | |||
| 2032 | 193,040,938.15 | 193,040,938.15 | |
| 2033 | 77,210,269.86 | ||
| Total | 577,896,375.06 | 499,742,487.05 |
Other description24 Notes payable
Unit: CNY
| Category | Ending Balance | Opening Balance |
| Bank acceptance bill | 16,487,079,559.64 | 9,198,593,038.03 |
| Total | 16,487,079,559.64 | 9,198,593,038.03 |
The total amount of notes payable due but unpaid at the end of the current period is CNY 0.00.
25. Accounts payable
(1) Presentation of accounts payable
Unit: CNY
| Item | Ending Balance | Opening Balance |
| Payment for goods | 13,636,307,086.24 | 9,297,168,020.86 |
| Project and equipment payment | 65,905,466.41 | 11,953,792.66 |
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| Expenses and others | 3,930,214,002.64 | 724,486,854.54 |
| Total | 17,632,426,555.29 | 10,033,608,668.06 |
(2) Important accounts payable with the aging over 1 year
Unit: CNY
| Item | Ending Balance | Reasons for not being repaid or carried over |
| Supplier 1 | 5,243,361.11 | At the legal adjudication stage, accounts are frozen and payments are stopped |
| Supplier 2 | 4,244,960.23 | Both parties have not reached an agreement on the contents of the contract, and no payment will be made temporarily. |
| Total | 9,488,321.34 |
Other description:
26. Advance receipts
(1) Presentation of advance receipts
Unit: CNY
| Item | Ending Balance | Opening Balance |
| Rental fee | 785,227.42 | 1,861,865.37 |
| Total | 785,227.42 | 1,861,865.37 |
27. Contract liabilities
Unit: CNY
| Item | Ending Balance | Opening Balance |
| Payment for goods | 1,087,367,759.69 | 1,155,321,169.46 |
| Others | 675,418,437.64 | 607,787,793.96 |
| Contract liabilities included in other current liabilities | -144,682,448.10 | -133,584,259.07 |
| Total | 1,618,103,749.23 | 1,629,524,704.35 |
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
28. Employee compensation payable
(1) Presentation of employee compensation payable
Unit: CNY
| Item | Opening Balance | Increase in the Current Period | Decrease in the Current Period | Ending Balance |
| I. Short-term compensation | 273,674,313.00 | 2,141,121,428.54 | 1,897,103,856.28 | 517,691,885.26 |
| II. Post-employment benefits - defined contribution plan | 62,829,341.18 | 288,412,817.25 | 326,052,856.77 | 25,189,301.66 |
| III. Dismissal welfare | 46,184,524.58 | 18,995,021.09 | 47,168,991.38 | 18,010,554.29 |
| IV. Other benefits due within one year | 53,960,000.00 | 160,405.24 | 6,990,635.88 | 47,129,769.36 |
| Total | 436,648,178.76 | 2,448,689,672.12 | 2,277,316,340.31 | 608,021,510.57 |
(2) Presentation of short-term compensation
Unit: CNY
| Item | Opening Balance | Increase in the Current Period | Decrease in the Current Period | Ending Balance |
| 1. Wages, bonuses, allowances and subsidies | 1,481,961,418.24 | 1,253,201,160.61 | 228,760,257.63 | |
| 2. Employee welfare expenses | 92,959,748.07 | 92,959,748.07 | ||
| 3. Social insurance premiums | 5,214,934.60 | 167,143,567.30 | 171,183,183.65 | 1,175,318.25 |
| Including: medical insurance premiums | 3,961,154.86 | 158,929,919.32 | 161,715,755.93 | 1,175,318.25 |
| Work-related injury insurance premiums | 1,253,779.74 | 8,213,647.98 | 9,467,427.72 | |
| 4. Housing provident fund | 884.00 | 236,848,227.72 | 236,849,111.72 | |
| 5. Labor union funds and employee education funds | 268,458,494.40 | 61,019,086.59 | 41,721,271.61 | 287,756,309.38 |
| 6. Others | 101,189,380.62 | 101,189,380.62 | ||
| Total | 273,674,313.00 | 2,141,121,428.54 | 1,897,103,856.28 | 517,691,885.26 |
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
(3) Presentation of defined contribution plan
Unit: CNY
| Item | Opening Balance | Increase in the Current Period | Decrease in the Current Period | Ending Balance |
| 1. Basic endowment insurance | 49,474,178.04 | 208,330,075.82 | 243,894,641.67 | 13,909,612.19 |
| 2. Unemployment insurance premiums | 3,838,010.94 | 8,599,860.43 | 10,062,934.16 | 2,374,937.21 |
| 3. Payment of enterprise annuity | 9,517,152.20 | 71,482,881.00 | 72,095,280.94 | 8,904,752.26 |
| Total | 62,829,341.18 | 288,412,817.25 | 326,052,856.77 | 25,189,301.66 |
Other description
29. Taxes payable
Unit: CNY
| Item | Ending Balance | Opening Balance |
| VAT | 238,326,743.85 | 142,544,438.56 |
| Corporate income tax | 16,513,037.84 | 73,697,911.27 |
| Individual income tax | 7,369,381.08 | 45,190,640.96 |
| Urban maintenance and construction tax | 6,846,612.55 | 8,789,299.91 |
| Property tax | 8,122,726.73 | 7,910,979.72 |
| Land use tax | 4,108,703.30 | 4,512,474.49 |
| Education surcharges | 7,361,923.20 | 8,830,240.70 |
| Other taxes | 17,508,337.51 | 9,735,859.90 |
| Total | 306,157,466.06 | 301,211,845.51 |
Other description
30. Other payables
Unit: CNY
| Item | Ending Balance | Opening Balance |
| Dividends payable | 171,500.02 | 171,500.02 |
| Other payables | 5,882,524,335.15 | 6,095,281,248.15 |
| Total | 5,882,695,835.17 | 6,095,452,748.17 |
(1) Dividends payable
Unit: CNY
| Item | Ending Balance | Opening Balance |
| Ordinary stock dividends | 171,500.02 | 171,500.02 |
| Total | 171,500.02 | 171,500.02 |
Other description, including the disclosure of the reasons for not paying the important dividends payable for
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
more than 1 year:
(2) Other payables
1) Presentation of other payables by payment nature
Unit: CNY
| Item | Ending Balance | Opening Balance |
| Expenses payable | 3,040,928,449.50 | 3,371,722,694.19 |
| Margin, deposit | 339,963,742.57 | 311,219,645.69 |
| Project funds payable | 1,648,482,837.70 | 1,524,956,021.50 |
| Current accounts payable and others | 677,851,984.54 | 619,545,702.66 |
| Repurchase obligations of restricted shares | 175,297,320.84 | 267,837,184.11 |
| Total | 5,882,524,335.15 | 6,095,281,248.15 |
2) Other important payables with the aging over 1 year
Unit: CNY
| Item | Ending Balance | Reasons for not Being Repaid or Carried over |
| The Ninth Institute of Project Planning & Research of China Machinery Industry (FIPPR) | 71,442,466.85 | Project not completed |
| Supplier 1 | 28,211,998.96 | Project not completed |
| Supplier 2 | 13,560,000.00 | Project not completed |
| Supplier 3 | 12,349,284.40 | Project not completed |
| Qiming Information Technology Co., Ltd. | 10,699,545.55 | Project not completed |
| Total | 136,263,295.76 |
Other description
31. Non-current liabilities due within one year
Unit: CNY
| Item | Ending Balance | Opening Balance |
| Lease liabilities due within one year | 30,986,742.12 | 32,998,374.87 |
| Total | 30,986,742.12 | 32,998,374.87 |
Other description:
32. Other current liabilities
Unit: CNY
| Item | Ending Balance | Opening Balance |
| Taxes to be written off | 144,682,448.10 | 133,584,259.07 |
| Total | 144,682,448.10 | 133,584,259.07 |
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
33. Lease liabilities
Unit: CNY
| Item | Ending Balance | Opening Balance |
| Lease payment | 85,049,957.20 | 94,353,447.57 |
| Unrecognized financing charges | -5,255,143.34 | -6,540,469.64 |
| Lease liabilities due within one year | -30,986,742.12 | -32,998,374.87 |
| Total | 48,808,071.74 | 54,814,603.06 |
Other description:
34. Long-term employee compensation payable
(1) Long-term employee compensation payable
Unit: CNY
| Item | Ending Balance | Opening Balance |
| I. Post-employment welfare - net liabilities of defined benefit plan | 687,489,769.36 | 694,320,000.00 |
| II. Dismissal welfare | 93,098,134.27 | 112,469,743.86 |
| Long-term employee compensation payable due within one year | -65,140,323.65 | -99,478,853.43 |
| Total | 715,447,579.98 | 707,310,890.43 |
35. Estimated liabilities
Unit: CNY
| Item | Ending Balance | Opening Balance | Reason |
| Pending litigation | 10,045,157.32 | 32,195,157.32 | |
| Product quality assurance | 922,703,546.87 | 826,046,651.49 | |
| Others | 17,226,995.29 | 17,226,995.29 | |
| Total | 949,975,699.48 | 875,468,804.10 |
Other description, including important assumptions and estimation descriptions related to important estimatedliabilities:
36. Deferred income
Unit: CNY
| Item | Opening Balance | Increase in the Current Period | Decrease in the Current Period | Ending Balance | Reason |
| Government subsidies | 3,121,985,685.93 | 55,826,903.12 | 159,416,894.82 | 3,018,395,694.23 | |
| Total | 3,121,985,685.93 | 55,826,903.12 | 159,416,894.82 | 3,018,395,694.23 |
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
Items involving government subsidies: For details of government subsidies included in deferred income, pleaserefer to 63 "Government Subsidies" in VII of Section X - Financial Report.
37. Share capital
Unit: CNY
| Opening Balance | Increase/Decrease (+/-) | Ending Balance | |||||
| Issue of New Shares | Bonus shares | Share Transferred from Accumulation Fund | Others | Subtotal | |||
| Total shares | 4,651,965,655.00 | -14,633,325.00 | -14,633,325.00 | 4,637,332,330.00 | |||
Other description:
38. Capital reserves
Unit: CNY
| Item | Opening Balance | Increase in the Current Period | Decrease in the Current Period | Ending Balance |
| Capital premium (stock premium) | 9,373,398,263.61 | 77,906,538.27 | 9,295,491,725.34 | |
| Other capital reserves | 1,077,689,973.13 | 7,500,283.02 | 23,772.68 | 1,085,166,483.47 |
| Total | 10,451,088,236.74 | 7,500,283.02 | 77,930,310.95 | 10,380,658,208.81 |
Other description, including increase/decrease in the current period and reasons for change:
(1) The capital reserve (share premium) decreased by CNY 77,906,538.27 in the current period due to therepurchase and cancellation of equity incentive shares of the Company.
(2) The capital reserve (other capital reserves) increased by CNY 7,500,283.02 in the current period due to therecognition of share-based payment expenses during the vesting period of the Company's equity incentive plan.
(3) The capital reserve (other capital reserves) decreased by CNY 23,772.68 in the current period due to theCompany's recognition of changes in other owner's equity of the investee, in proportion to its equity, than netprofit or loss, other comprehensive income and profit distribution.39 Treasury shares
Unit: CNY
| Item | Opening Balance | Increase in the Current Period | Decrease in the Current Period | Ending Balance |
| Treasury shares | 267,837,184.11 | 92,539,863.27 | 175,297,320.84 | |
| Total | 267,837,184.11 | 92,539,863.27 | 175,297,320.84 |
Other explanations, including the increase/decrease and reasons for changes in the current period: The decreaseof CNY 92,539,863.27 in treasury share capital in the current period was caused by the repurchase andcancellation of equity incentive shares recognized by the Company.
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40 Other comprehensive incomes
Unit: CNY
| Item | Opening Balance | Amount Incurred in Current Period | Ending Balance | |||||
| Amount Incurred before Income Tax in the Current Period | Less: Current Profits or Losses Transferred from Other Comprehensive Income Recorded in the Previous Period | Less: Current Retained Earnings Transferred from Other Comprehensive Income Recorded in the Previous Period | Less: Income Tax Expenses | After-tax Amount Attributable to Parent Company | After-tax Amount Attributable to Minority Shareholders | |||
| I. Other comprehensive incomes that cannot be reclassified into profits or losses | -4,024,777.80 | -4,024,777.80 | ||||||
| Including: changes arising from re-measurement of the defined benefit plan | -4,040,000.00 | -4,040,000.00 | ||||||
| Other comprehensive incomes that cannot be reclassified into profit or loss under the equity method | 15,222.20 | 15,222.20 | ||||||
| II. Other comprehensive incomes that will be reclassified into profits or losses | -1,374,343.01 | 250,455.89 | -1,123,887.12 | |||||
| Including: other comprehensive incomes that can be reclassified | -496,016.97 | 254,420.76 | -241,596.21 | |||||
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| into profits or losses under the equity method | ||||||||
| Translation difference in foreign currency financial statements | -878,326.04 | -3,964.87 | -882,290.91 | |||||
| Total other comprehensive incomes | -5,399,120.81 | 250,455.89 | -5,148,664.92 |
Other description, including the adjustment of the effective part of cash flow hedging profit or loss transferredto the initially recognized amount of the hedged item:
41 Special reserves
Unit: CNY
| Item | Opening Balance | Increase in the Current Period | Decrease in the Current Period | Ending Balance |
| Work safety cost | 370,420,291.86 | 15,046,812.40 | 16,497,144.11 | 368,969,960.15 |
| Total | 370,420,291.86 | 15,046,812.40 | 16,497,144.11 | 368,969,960.15 |
Other description, including increase/decrease in the current period and reasons for change:
42 Surplus reserves
Unit: CNY
| Item | Opening Balance | Increase in the Current Period | Decrease in the Current Period | Ending Balance |
| Statutory surplus reserve | 2,760,723,110.73 | 2,760,723,110.73 | ||
| Discretionary surplus reserves | 297,526,491.71 | 297,526,491.71 | ||
| Total | 3,058,249,602.44 | 3,058,249,602.44 |
Description of surplus reserve, including increase/decrease and reasons for change in the current period:
43 Undistributed profits
Unit: CNY
| Item | Current Period | Previous Period |
| Undistributed profits at the end of the previous period before adjustment | 5,460,939,601.36 | 8,434,403,352.08 |
| Undistributed profits at the beginning of the current period after adjustment | 5,460,939,601.36 | 8,434,403,352.08 |
| Add: net profit attributable to owners of parent company in the current | 401,336,302.35 | 170,153,887.32 |
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
| period | ||
| Less: ordinary stock dividends payable | 3,025,174,498.45 | |
| Undistributed profits at the end of the period | 5,862,275,903.71 | 5,579,382,740.95 |
Details of adjustment to undistributed profits at the beginning of period:
1) The undistributed profit at the beginning of the period affected by the retroactive adjustment of AccountingStandards for Business Enterprises and its relevant new regulations is CNY 0.00.
2) The undistributed profit at the beginning of the period affected by changes in accounting policies is CNY
0.00.
3) The undistributed profit at the beginning of the period affected by correction of significant accounting errorsis CNY 0.00.
4) The undistributed profit at the beginning of the period affected by the changes in consolidation scope due tosame control is CNY 0.00.
5) The undistributed profit at the beginning of the period affected by other adjustments totals CNY 0.00.44 Operating income and operating cost
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period | ||
| Income | Cost | Income | Cost | |
| Main business | 32,139,093,286.21 | 29,929,907,291.11 | 21,805,259,709.38 | 20,220,312,403.72 |
| Other business | 875,568,627.92 | 660,616,486.91 | 1,066,275,552.18 | 894,738,065.89 |
| Total | 33,014,661,914.13 | 30,590,523,778.02 | 22,871,535,261.56 | 21,115,050,469.61 |
Information related to performance obligations: noneInformation related to the transaction price allocated to the remaining performance obligations: The incomecorresponding to the performance obligations that have been signed but not yet fulfilled or completed at the endof the reporting period is CNY 675,418,437.64, of which CNY 337,709,218.82 is expected to be recognized in2023 and CNY 337,709,218.82 is expected to be recognized in 2024.Other description45 Taxes and surcharges
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Urban maintenance and construction tax | 19,546,313.81 | 21,670,465.02 |
| Education surcharges | 14,049,726.20 | 15,501,287.61 |
| Property tax | 27,465,239.54 | 25,351,529.04 |
| Land use tax | 17,742,508.40 | 19,556,934.07 |
| Vehicle and vessel use tax | 51,933.49 | 54,706.28 |
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
| Stamp duty | 30,606,438.19 | 23,538,154.45 |
| Environmental protection tax | 427,254.80 | 191,419.33 |
| Others | -47,844.63 | 635,765.71 |
| Total | 109,841,569.80 | 106,500,261.51 |
Other description:
46 Sales expenses
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Product quality assurance fee | 372,020,904.40 | 176,597,991.74 |
| Employee compensation | 230,992,397.31 | 196,348,174.29 |
| Storage fee | 49,482,396.12 | 56,206,844.19 |
| Promotion fee | 5,652,694.61 | 26,616,044.88 |
| Packing cost | 36,501,913.05 | 32,009,966.23 |
| Business publicity fee | 5,491,042.24 | 13,770,613.76 |
| Travel expense | 32,468,745.00 | 15,775,038.28 |
| Sales service fee | 7,172,990.92 | 11,115,081.89 |
| Rental fee | 23,305,950.67 | 26,468,705.36 |
| Insurance premium | 2,116,210.71 | 3,179,938.52 |
| Others | 9,617,573.30 | 8,402,329.68 |
| Total | 774,822,818.33 | 566,490,728.82 |
Other description:
47 Administrative expenses
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Employee compensation | 554,575,877.44 | 598,558,389.99 |
| Repair cost of fixed assets | 86,296,341.73 | 69,924,624.89 |
| Depreciation cost | 62,859,036.45 | 59,078,687.98 |
| Amortization of intangible assets | 45,228,775.75 | 44,522,259.21 |
| Labor outsourcing fee | 20,600,631.57 | 24,977,327.54 |
| Information system service fee | 18,919,334.81 | 20,402,954.88 |
| Sewage charge | 9,479,418.73 | 8,702,172.92 |
| Kinetic energy and workshop heating cost | 15,614,154.67 | 12,918,192.98 |
| Publicity fee | 2,792,288.47 | 1,367,051.26 |
| Test and inspection fee | 5,943,937.13 | 3,884,917.30 |
| Others | 48,851,266.17 | 42,683,537.57 |
| Total | 871,161,062.92 | 887,020,116.52 |
Other description
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
48 R&D expenses
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Employee compensation | 781,461,814.17 | 682,745,813.55 |
| Test fee | 161,697,116.15 | 106,067,297.14 |
| Trial production cost | 72,342,454.50 | 61,977,054.15 |
| Depreciation cost | 121,938,716.42 | 125,686,161.11 |
| Joint R&D expenses | 53,939,832.01 | 3,323,914.67 |
| Design fee | 3,092,727.26 | 26,118,317.60 |
| Others | 53,575,043.03 | 10,397,664.42 |
| Total | 1,248,047,703.54 | 1,016,316,222.64 |
Other description49 Financial expenses
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Interest income | -332,873,373.32 | -502,087,676.33 |
| Bill discount interest | ||
| Net actuarial interest | 463,219.03 | 166,532.74 |
| Handling charge of financial institutions | 62,645.64 | 81,595.17 |
| Interest expense | 2,201,462.83 | 2,361,612.41 |
| Exchange gain or loss | -134,786.41 | -186,398.61 |
| Others | -85,382,599.83 | -71,489,636.46 |
| Total | -415,663,432.06 | -571,153,971.08 |
Other description50 Other income
Unit: CNY
| Sources of other income | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Subsidies | 193,604,585.44 | 227,954,740.41 |
| Others | 2,051,784.67 | 2,092,309.91 |
| Total | 195,656,370.11 | 230,047,050.32 |
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
51. Investment income
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Income from long-term equity investments accounted for using the equity method | 234,054,148.54 | 281,180,159.71 |
| Others | -100,436,268.67 | -77,271,243.30 |
| Total | 133,617,879.87 | 203,908,916.41 |
Other description:
52 Credit impairment loss
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Bad debt losses of other receivables | -288,813.51 | 2,682,455.55 |
| Bad debt losses of long-term receivables | -2,927,793.76 | -4,660,539.00 |
| Bad debt losses of notes receivable | -69,181.55 | 33,965.46 |
| Bad debt losses of accounts receivable | -32,194,937.26 | -19,882,625.36 |
| Total | -35,480,726.08 | -21,826,743.35 |
Other description53 Asset impairment loss
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| I. Inventory falling price loss and contract performance cost impairment loss | -35,182,158.70 | -85,486,353.05 |
| II. Impairment loss of contract assets | -142,013.25 | 141,606.09 |
| Total | -35,324,171.95 | -85,344,746.96 |
Other description:
54 Income from assets disposal
Unit: CNY
| Sources of Income from Assets Disposal | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Gains from disposal of fixed assets | 98,132,494.11 | 42,431.19 |
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
55. Non-operating income
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period | Amount Included in Current Non-recurring Profits and Losses |
| Unpayable amount recognized | 581,828.00 | 581,828.00 | |
| Income from compensation, liquidated damages and penalties | 7,871,739.74 | 5,797,555.07 | 7,871,739.74 |
| Gains from damage and retirement of non-current assets | 695,112.91 | 695,112.91 | |
| Others | 393,806.14 | 98,260,551.19 | 393,806.14 |
| Total | 9,542,486.79 | 104,058,106.26 | 9,542,486.79 |
56. Non-operating expenses
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period | Amount Included in Current Non-recurring Profits and Losses |
| Donation | 2,000,000.00 | 10,000,000.00 | 2,000,000.00 |
| Expenditure on compensation, liquidated damages and fines | 435,083.63 | 1,303,569.25 | 435,083.63 |
| Losses from damage and retirement of non-current assets | 1,297,109.63 | 897,265.34 | 1,297,109.63 |
| Others | 69,570.55 | 13,400.00 | 69,570.55 |
| Total | 3,801,763.81 | 12,214,234.59 | 3,801,763.81 |
Other description:
57 Income tax expenses
(1) Statement of income tax expenses
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Current income tax expenses | 42,401,718.66 | 323,637,275.45 |
| Deferred income tax expense | -245,467,038.39 | -323,808,949.95 |
| Total | -203,065,319.73 | -171,674.50 |
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
(2) Adjustment process of accounting profits and income tax expenses
Unit: CNY
| Item | Amount Incurred in Current Period |
| Total profits | 198,270,982.62 |
| Income tax expense calculated at statutory/applicable tax rate | 49,567,745.66 |
| Effect of different tax rates applied to subsidiaries | 7,621,554.68 |
| Effect of adjustment to income tax of previous periods | -22,095,779.87 |
| Effect of non-deductible costs, expenses and losses | 422,258.49 |
| Effects of deductible temporary differences or deductible losses of deferred income tax assets unrecognized in the current period | -9,472,260.95 |
| Profit or loss of joint ventures and associated enterprises calculated by equity method | -58,364,426.81 |
| Tax effect of R&D expenses plus deduction (to be listed with "-") | -170,744,410.92 |
| Income tax expenses | -203,065,319.73 |
Other description58 Other comprehensive incomesFor details, please refer to 40 "Other comprehensive income" in VII "Notes to Items in Consolidated FinancialStatements" of Section X - Financial Report.59 Items of cash flow statement
(1) Other cash received related to operating activities
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Government subsidies received | 89,195,336.75 | 541,049,227.17 |
| Collection and payment | 9,286,574.17 | 1,811,788.44 |
| Rental fee received | 2,874,590.58 | 8,480,131.06 |
| Fines and indemnities received | 4,419,145.87 | 2,410,227.73 |
| Refund of handling fees | 803,868.95 | 942,826.72 |
| Recovery of reserve funds | 538,760.42 | 286,468.08 |
| Other current accounts | 534,529,346.19 | 290,185,578.70 |
| Total | 641,647,622.93 | 845,166,247.90 |
Description of other cash received related to operating activities:
(2) Other cash payments related to operating activities
Unit: CNY
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Out-of-pocket expenses | 494,020,512.30 | 212,022,745.78 |
| Current account | 455,747,557.22 | 624,431,327.44 |
| Donations | 2,000,000.00 | |
| Total | 951,768,069.52 | 836,454,073.22 |
Description of other cash payments related to operating activities:
(3) Other cash received related to financing activities
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Interest received | 368,529,711.02 | 441,265,670.20 |
| Total | 368,529,711.02 | 441,265,670.20 |
Description of other cash received related to investing activities:
(4) Other cash payments related to financing activities
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Donations | 10,000,000.00 | |
| Principal and interest on lease liabilities | 19,709,605.31 | 5,922,921.74 |
| Total | 19,709,605.31 | 15,922,921.74 |
Description of other cash payments related to financing activities:
60 Supplementary information to cash flow statement
(1) Supplementary information to cash flow statement
Unit: CNY
| Supplementary information | Amount in the Current Period | Amount of the Previous Period |
| 1. Reconciliation of net profit to cash flows from operating activities: | ||
| Net Profit | 401,336,302.35 | 170,153,887.32 |
| Add: impairment provision of assets | 70,804,898.03 | 107,171,490.31 |
| Depreciation of fixed assets, depletion of oil and gas assets and productive biological assets | 806,546,681.57 | 802,424,319.33 |
| Depreciation of right-of-use asset | 5,115,821.82 | 36,125,831.02 |
| Amortization of intangible assets | 52,772,614.33 | 52,038,602.60 |
| Amortization of long-term deferred expenses |
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
| Losses from disposal of fixed assets, intangible assets and other long-term assets (incomes to be listed with "-") | -98,132,494.11 | -42,431.19 |
| Loss from retirement of fixed assets (incomes to be listed with “-”) | 1,297,109.63 | 897,265.34 |
| Loss from changes in fair value (incomes to be listed with “-”) | ||
| Financial expenses (incomes to be listed with “-”) | -330,682,164.07 | -499,726,063.92 |
| Investment losses (incomes to be listed with “-”) | -133,617,879.87 | -203,908,916.41 |
| Decrease of deferred income tax assets (increase to be listed with "-") | -248,346,478.93 | -258,660,870.66 |
| Increases of deferred income tax liabilities (decrease to be listed with “-”) | 1,005,800.22 | -65,148,079.29 |
| Decrease in inventories (increase to be listed with "-") | -1,448,702,170.39 | 232,662,937.16 |
| Decrease in operating receivables (increase to be listed with "-") | -9,607,002,028.80 | -1,476,787,647.94 |
| Increase in operating items payable (decrease to be listed with “-”) | 17,346,803,689.10 | 2,314,756,621.70 |
| Others | -105,040,323.41 | 231,180,781.26 |
| Net cash flows from operating activities | 6,714,159,377.47 | 1,443,137,726.63 |
| 2. Significant investment and financing activities not involving cash deposit and withdrawal: | ||
| Conversion of debt into capital | ||
| Convertible corporate bonds within one year | ||
| Fixed assets acquired under financial lease | ||
| 3. Net changes in cash and cash equivalents: | ||
| Ending Balance of cash | 26,430,438,475.01 | 28,270,082,742.95 |
| Less: opening balance of cash | 20,697,669,726.18 | 30,542,676,891.89 |
| Add: ending balance of cash equivalents | ||
| Less: opening balance of cash equivalents | ||
| Net increase in cash and cash equivalents | 5,732,768,748.83 | -2,272,594,148.94 |
(2) Composition of cash and cash equivalents
Unit: CNY
| Item | Ending Balance | Opening Balance |
| I. Cash | 26,430,438,475.01 | 20,697,669,726.18 |
| Bank deposits readily available for payment | 26,430,438,475.01 | 28,270,082,742.95 |
| II. Ending Balance of cash and cash equivalents | 26,430,438,475.01 | 20,697,669,726.18 |
Other description:
61 Assets with restricted ownership or use right
Unit: CNY
| Item | Ending Book Value | Reason for Restriction |
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
| Monetary capital | 51,204,457.41 | Housing maintenance fund, security deposit for three types of personnel and frozen funds |
| Total | 51,204,457.41 |
Other description:
62 Foreign currency monetary items
(1) Foreign currency monetary items
Unit: CNY
| Item | Foreign Currency Balance at the End of the Period | EXCHANGE RATE | Ending Balance Converted into CNY |
| Monetary capital | |||
| Including: USD | |||
| EUR | 1,838,512.73 | 7.4229 | 13,647,096.14 |
| HKD | |||
| Accounts receivable | |||
| Including: USD | |||
| EUR | |||
| HKD | |||
| Long-term loans | |||
| Including: USD | |||
| EUR | |||
| HKD |
Other description:
63 Government subsidies
(1) Basic information on government subsidies
Unit: CNY
| Category | Amount | Presented Items | Amount Included in Current Profits and Losses |
| Government subsidies | 3,018,395,694.23 | Deferred income | 193,604,585.44 |
VIII. Changes in Consolidation Scope
1. Changes in consolidation scope for other reasons
Description of the changes in consolidation scope caused by other reasons (such as new subsidiaries, liquidationsubsidiaries, etc.) and relevant information: The Company established a new subsidiary, FAW Jiefang Uni-D(Tianjin) Technology Co., Ltd., on April 14, 2023.
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
IX. Equity in Other Entities
1. Equity in subsidiaries
(1) Composition of the enterprise group
| Name of subsidiary | Principal business place | Registration place | Nature of business | Share proportion | Way of acquisition | |
| Direct | Indirect | |||||
| FAW Jiefang Automotive Co., Ltd. | Changchun | Changchun | Vehicle manufacturing | 100.00% | Business merger under common control | |
| FAW Jiefang (Qingdao) Automotive Co., Ltd. | Qingdao | Qingdao | Vehicle manufacturing and sales | 100.00% | Business merger under common control | |
| FAW Jiefang Dalian Diesel Engine Co., Ltd. | Dalian | Dalian | Automotive engine manufacturing | 100.00% | Business merger under common control | |
| Wuxi Dahao Power Co., Ltd. | Wuxi | Wuxi | Manufacturing of automotive components and accessories | 100.00% | Business merger under common control | |
| FAW Jiefang Austria R&D Co., Ltd. | Austria | Austria | Technology research and development | 100.00% | Business merger under common control | |
| FAW Jiefang New Energy Automotive Sales Co., Ltd. | Changchun | Changchun | Vehicle sales | 100.00% | Establishment by investment | |
| FAW Jiefang Uni-D (Tianjin) Technology Industry Co., Ltd. | Tianjin | Tianjin | Science and technology promotion | 100.00% | Establishment by investment | |
Description of the fact that the shareholding proportion in subsidiaries is different from the proportion of votingrights: noneBasis for holding half or less of the voting rights but still controlling the investee, and for holding more thanhalf of the voting rights but not controlling the investee: noneBasis for control of important structured entities included in the consolidation scope: noneBasis for determining whether the Company is an agent or a principal: noneOther description: none
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
2. Equities in joint ventures or associated enterprise
(1) Important joint ventures or associated enterprises
| Name of Joint Ventures or Associated Enterprises | Principal Business Place | Registration Place | Nature of Business | Share Proportion | Accounting Treatment Method for Investment in Joint Ventures or Associated Enterprises | |
| Direct | Indirect | |||||
| First Automobile Finance Co., Ltd. | Changchun | Changchun | Financial services | 21.84% | Equity method | |
| Sanguard Automobile Insurance Co., Ltd. | Changchun | Changchun | Financial insurance | 17.50% | Equity method | |
| FAW Changchun Ansteel Steel Processing and Distribution Co., Ltd. | Changchun | Changchun | Industrial manufacturing | 40.00% | Equity method | |
| FAW Changchun Baoyou Jiefang Steel Processing and Distribution Co., Ltd. | Changchun | Changchun | Industrial manufacturing | 21.81% | Equity method | |
| Changchun Wabco Automotive Control System Co., Ltd. | Changchun | Changchun | Manufacturing of automotive components and accessories | 40.00% | Equity method | |
| Suzhou Zhito Technology Co., Ltd. | Suzhou | Suzhou | Application software research and test development | 26.92% | Equity method | |
| FAW Jiefang Fujie (Tianjin) Technology Industry Co., Ltd. | Tianjin | Tianjin | Software and information technology services | 10.00% | Equity method | |
| SmartLink | Nanjing | Nanjing | Software and information technology services | 35.00% | Equity method | |
| Foshan Diyiyuan New Energy Technology Co., Ltd. | Foshan | Foshan | Manufacturing and technical services | 45.00% | Equity method | |
| Jiefang Times New Energy Technology Co., Ltd. | Shijiazhuang | Shijiazhuang | Research and experimental development | 50.00% | Equity method | |
| Changchun Automotive Test Center Co., Ltd. | Changchun | Changchun | Manufacturing and technical services | 14.63% | Equity method | |
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
Explanation of the fact that the shareholding proportion in joint ventures or associated enterprises is differentfrom the proportion of voting rights: there is no difference between the shareholding proportion and theproportion of voting rights.Basis for holding less than 20% of voting rights but with significant influence, or holding 20% or more ofvoting rights but without significant influence: The Company holds 17.50% of the shares of SanguardAutomobile Insurance Co., Ltd., but it sends one director to the later according to the Articles of Association ofthe later, so the Company can exert significant influence on Sanguard Automobile Insurance Co., Ltd. TheCompany holds 10.00% of the shares of FAW Jiefang Fujie (Tianjin) Technology Industry Co., Ltd., but it sendsthree directors to the later according to the Articles of Association of the later, so the Company can exertsignificant influence on FAW Jiefang Fujie (Tianjin) Technology Industry Co., Ltd.
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
(2) Main financial information on important associated enterprises
Unit: CNY
| Ending Balance/Amount Incurred in Current Period | |||||||||||
| First Automobile Finance Co., Ltd. | Sanguard Automobile Insurance Co., Ltd. | FAW Changchun Ansteel Steel Processing and Distribution Co., Ltd. | Changchun Wabco Automotive Control System Co., Ltd. | FAW Changchun Baoyou Jiefang Steel Processing and Distribution Co., Ltd. | Suzhou Zhito Technology Co., Ltd. | FAW Jiefang Fujie (Tianjin) Technology Industry Co., Ltd. | SmartLink | Foshan Diyiyuan New Energy Technology Co., Ltd. | Jiefang Times New Energy Technology Co., Ltd. | Changchun Automotive Test Center Co., Ltd. | |
| Current assets | 41,270,226,585.06 | 2,088,248,362.01 | 313,632,486.54 | 39,338,385.87 | 327,408,201.02 | 456,237,342.45 | 1,818,932,231.27 | 148,176,612.82 | 79,948,115.57 | 79,560,864.96 | 2,069,411,355.80 |
| Non-current assets | 102,715,665,529.79 | 805,822,534.53 | 64,262,885.54 | 25,757,823.47 | 55,680,302.93 | 95,437,195.16 | 622,636,646.84 | 10,572,521.38 | 9,527,157.95 | 1,544,012,715.49 | |
| Total assets | 143,985,892,114.85 | 2,894,070,896.54 | 377,895,372.08 | 65,096,209.34 | 383,088,503.95 | 551,674,537.61 | 2,441,568,878.11 | 158,749,134.20 | 79,948,115.57 | 89,088,022.91 | 3,613,424,071.29 |
| Current liabilities | 121,982,755,342.95 | 449,997,819.23 | 156,042,957.48 | 22,797,376.01 | 196,925,540.78 | 199,352,646.46 | 1,835,150,832.91 | 184,961,560.15 | 621,282.73 | -548,977.09 | 60,724,993.38 |
| Non-current liabilities | 230,003,042.31 | 1,300,714,900.34 | 1,960,673.02 | 723,687,055.90 | 227,901,184.50 | 98,538,831.04 | |||||
| Total liabilities | 122,212,758,385.26 | 1,750,712,719.57 | 156,042,957.48 | 22,797,376.01 | 198,886,213.80 | 923,039,702.36 | 2,063,052,017.41 | 184,961,560.15 | 621,282.73 | -548,977.09 | 159,263,824.42 |
| Net Assets | 21,773,133,729.59 | 1,143,358,176.97 | 221,852,414.60 | 42,298,833.33 | 184,202,290.15 | -371,365,164.75 | 378,516,860.70 | -26,212,425.95 | 79,326,832.84 | 89,637,000.00 | 3,454,160,246.87 |
| Minority equity | 1,151,694,488.43 | -85,907.77 | 448,675,662.70 | ||||||||
| Equity attributable to shareholders of the parent company | 20,621,439,241.16 | 1,143,358,176.97 | 221,852,414.60 | 42,298,833.33 | 184,202,290.15 | -371,365,164.75 | 378,516,860.70 | -26,126,518.18 | 79,326,832.84 | 89,637,000.00 | 3,005,484,584.17 |
| Shares of net assets calculated as | 4,503,577,980.19 | 200,087,680.97 | 88,740,965.84 | 16,919,533.33 | 40,167,151.39 | -99,971,502.35 | 37,851,686.07 | -9,144,281.36 | 35,697,074.78 | 44,818,500.00 | 439,702,394.66 |
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
| per the shareholding proportion | |||||||||||
| Adjustments | -4,624,941.15 | 99,971,502.35 | -877,875.47 | 9,144,281.36 | 237,406,313.68 | ||||||
| --Goodwill | |||||||||||
| --Unrealized profits from internal transactions | |||||||||||
| --Others | |||||||||||
| Book value of equity investment in associated enterprises | 4,498,953,039.04 | 200,087,680.97 | 88,740,965.84 | 16,919,533.33 | 40,167,151.39 | 36,973,810.60 | 35,697,074.78 | 44,818,500.00 | 677,108,708.34 | ||
| Fair value of equity investment in associated enterprises with public offer | |||||||||||
| Operating income | 3,209,535,678.73 | 436,757,499.61 | 290,397,008.90 | 29,994,307.74 | 688,788,120.17 | 35,847,499.57 | 1,389,765,322.96 | 159,572,163.42 | 264,424.78 | 240,465,225.12 | |
| Net Profit | 1,165,863,071.10 | 22,325,313.14 | 4,167,069.20 | -916,143.61 | 14,884,160.46 | -94,145,183.33 | 18,284,853.78 | -36,269,129.74 | -233,646.64 | -299,048.52 | 70,700,030.55 |
| Net profit from discontinued operations | |||||||||||
| Other comprehensive incomes | 1,185,724.65 | 15,630,049.55 | |||||||||
| Total comprehensive income | 1,167,048,795.75 | 37,955,362.69 | 4,167,069.20 | -916,143.61 | 14,884,160.46 | -94,145,183.33 | 18,284,853.78 | -36,269,129.74 | -233,646.64 | -299,048.52 | 70,700,030.55 |
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
| Dividends received from associated enterprises in the current year | 4,835,877.87 | 6,892,912.77 |
| Opening Balance/Amount Incurred in Previous Period | ||||||||
| First Automobile Finance Co., Ltd. | Sanguard Automobile Insurance Co., Ltd. | FAW Changchun Ansteel Steel Processing and Distribution Co., Ltd. | Changchun Wabco Automotive Control System Co., Ltd. | FAW Changchun Baoyou Jiefang Steel Processing and Distribution Co., Ltd. | Suzhou Zhito Technology Co., Ltd. | FAW Jiefang Fujie (Tianjin) Technology Industry Co., Ltd. | SmartLink | |
| Current assets | 34,615,907,095.53 | 2,172,822,754.87 | 231,520,871.50 | 19,053,367.45 | 427,768,781.91 | 638,977,641.34 | 931,332,176.60 | 157,591,221.86 |
| Non-current assets | 107,957,446,335.83 | 732,633,048.50 | 66,900,185.87 | 27,097,843.55 | 62,831,909.92 | 64,737,895.14 | 293,708,044.88 | 7,744,508.63 |
| Total assets | 142,573,353,431.36 | 2,905,455,803.37 | 298,421,057.37 | 46,151,211.00 | 490,600,691.83 | 703,715,536.48 | 1,225,040,221.48 | 165,335,730.49 |
| Current liabilities | 120,256,125,824.02 | 510,326,378.57 | 80,755,484.41 | 2,930,795.76 | 286,304,062.71 | 346,619,144.05 | 672,380,337.39 | 164,518,379.90 |
| Non-current liabilities | 1,561,324,948.51 | 1,246,437,069.12 | 3,175,522.27 | 633,398,618.35 | 181,734,209.97 | |||
| Total liabilities | 121,817,450,772.53 | 1,756,763,447.69 | 80,755,484.41 | 2,930,795.76 | 289,479,584.98 | 980,017,762.40 | 854,114,547.36 | 164,518,379.90 |
| Net Assets | 20,755,902,658.83 | 1,148,692,355.68 | 217,665,572.96 | 43,220,415.24 | 201,121,106.85 | -276,302,225.92 | 370,925,674.12 | 817,350.59 |
| Minority equity | 1,182,641,203.70 | |||||||
| Equity attributable to shareholders of the parent company | 19,573,261,455.13 | 1,148,692,355.68 | 217,665,572.96 | 43,220,415.24 | 201,121,106.85 | -276,302,225.92 | 370,925,674.12 | 817,350.59 |
| Shares of net assets calculated as per the shareholding proportion | 4,274,663,288.97 | 201,021,162.24 | 87,066,229.18 | 17,288,166.13 | 43,856,468.58 | -74,380,559.22 | 37,092,567.41 | 286,072.71 |
| Adjustments | -4,625,319.38 | 74,380,559.22 | ||||||
| --Goodwill | ||||||||
| --Unrealized profits from internal transactions | ||||||||
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
| --Others | ||||||||
| Book value of equity investment in associated enterprises | 4,270,037,969.59 | 201,021,162.24 | 87,066,229.18 | 17,288,166.13 | 43,856,468.58 | 37,092,567.41 | 286,072.71 | |
| Fair value of equity investment in associated enterprises with public offer | ||||||||
| Operating income | 3,422,338,661.73 | 296,473,754.70 | 193,852,315.00 | 1,615,734.44 | 713,063,817.33 | 9,159,426.31 | 518,166,168.85 | 77,641,765.61 |
| Net Profit | 1,405,479,645.81 | 66,252,998.15 | 4,513,671.66 | -3,913,632.35 | 15,266,188.29 | -101,848,190.93 | 5,424,761.72 | -40,090,487.17 |
| Net profit from discontinued operations | ||||||||
| Other comprehensive incomes | -39,469.03 | -217,810.65 | ||||||
| Total comprehensive income | 1,405,440,176.78 | 66,035,187.50 | 4,513,671.66 | -3,913,632.35 | 15,266,188.29 | -101,848,190.93 | 5,424,761.72 | -40,090,487.17 |
| Dividends received from associated enterprises in the current year | 6,300,012.21 |
Other description
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
(3) Excess losses incurred by joint ventures or associated enterprises
Unit: CNY
| Name of Joint Ventures or Associated Enterprises | Unrecognized Losses Accumulated in Prior Periods | Unrecognized Losses in the Current Period (or Net Profit Shared in the Current Period) | Accumulated Unrecognized Losses at the End of the Current Period |
| Suzhou Zhito Technology Co., Ltd. | 74,380,559.22 | 25,590,943.13 | 99,971,502.35 |
| SmartLink | 9,144,281.36 | 9,144,281.36 |
Other description
X. Risk Related to Financial Instruments
The main financial instruments of the Company include monetary capital, notes receivable, accounts receivable, receivablesfinancing, other receivables, non-current assets due within one year, other current assets, long-term receivables, notes payable,accounts payable, other payables, non-current liabilities due within one year, and lease liabilities. Details of each financialinstrument have been disclosed in relevant notes. The risks related to these financial instruments and the riskmanagement policies adopted by the Company to reduce these risks are described below. The management ofthe Company manages and monitors these risk exposures to ensure that the above risks are controlled within alimited range.
1. Risk management objectives and policies
The Company carries out risk management to achieve an appropriate balance between risks and benefits,minimize the negative impact of risks on the Company's business performance, and maximize the interests ofshareholders and other equity investors. The Company, based on the risk management objectives, adopts thebasic risk management strategy of determining and analyzing various risks faced by the Company, establishingan appropriate baseline for risk tolerance and carrying out risk management, and supervising various risks in atimely and reliable manner to control the risks within a limited range.Main risks caused by financial instruments of the Company include credit risk, liquidity risk and market risk(including exchange rate risk and interest rate risk).
(1) Credit risk
Credit risk refers to the risk of financial loss to the Company caused by the counterparty's failure to perform itscontractual obligations.The Company manages credit risks by portfolio classification. Credit risk mainly arises from bank deposits,notes receivable, accounts receivable, other receivables, long-term receivables, etc.The Company's deposits are mainly deposited in state-owned banks and other large and medium-sized listedbanks, and the Company does not expect significant credit risks in its bank deposits.
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
The Company makes relevant policies to control the credit risk exposure for notes receivable, accountsreceivable, other receivables and long-term receivables. The Company evaluates the credit qualification ofcustomers and sets the credit period based on their financial conditions, credit records and other factors such ascurrent market situations. The Company monitors the credit records of customers regularly, and take measuressuch as written reminders, shortening of credit period or cancellation of credit period for customers with poorcredit records, so as to ensure that the overall credit risk is within a controllable range.The debtors of the Company's accounts receivable are customers distributed in different industries and regions.The Company carries out continuous credit assessment on the financial condition of accounts receivable andpurchases credit guarantee insurance when appropriate.The maximum credit risk exposure borne by the Company is the book value of each financial asset in thebalance sheet. The Company does not provide any other guarantee that may expose the Company to credit risk.The accounts receivable of the top five customers account for 60.03% of the total accounts receivable of theCompany. Other receivables of the top five companies with debts account for 69.95% of the total otherreceivables of the Company.
(2) Liquidity risk
Liquidity risk refers to the risk of capital shortage when the Company performs its obligations of settlement bydelivering cash or other financial assets.The Company maintains and monitors cash and cash equivalents deemed adequate by the management duringliquidity risk management to meet the Company's operating needs and reduce the impact of fluctuations in cashflows. The management of the Company monitors the use of bank loans and ensures compliance with the loanagreements. Meanwhile, the Company obtains commitments from major financial institutions to providesufficient reserve funds to meet short-term and long-term funding needs.The sources of the Company's working capital include funds generated from operating activities, bank loans andother loans. As of June 30, 2023, the Company's unused bank loan limit is CNY 8 billion.
(3) Market risk
Market risk of financial instruments refers to the risk of fluctuation in fair value or future cash flow of financialinstruments due to the changes in market price, including interest rate risk, exchange rate risk and other pricerisks.Interest rate riskThe risk of changes in cash flow of financial instruments caused by changes in interest rates of the Company ismainly related to bank loans with floating interest rates. It is the policy of the Company to maintain floatinginterest rates on these loans.
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
Sensitivity analysis on interest rate risk:
The sensitivity analysis on interest rate risk is based on the assumption that changes in market interest ratesaffect interest income or expenses on variable rate financial instruments.The Company had no interest-bearing debts such as bank loans as of June 30, 2023.Exchange rate riskExchange rate risk refers to the risk of fluctuation in fair value or future cash flow of financial instruments dueto change in foreign exchange rate. Exchange rate risk may come from financial instruments denominated in aforeign currency other than the recording currency.The foreign exchange risk borne by the Company is mainly related to euros. Main business activities of theCompany are settled in CNY, except that the subsidiary established in Austria holds assets settled in EUR. Thebalance of Company's assets and liabilities were all in CNY as of June 30, 2023, except a small amount ofmonetary capitals including the balance in EUR. Therefore, the Company does not believe that the exchangerate risk faced is significant.
2. Capital management
The Company prepares capital management policy to ensure continuous operation of the Company, thusproviding returns to shareholders, benefiting other stakeholders, and maintaining the best capital structure toreduce capital costs.In order to maintain or adjust the capital structure, the Company may adjust the financing method, adjust theamount of dividends paid to shareholders, return capital to shareholders, issue new shares and other equityinstruments, or sell assets to reduce debt.The Company monitors the capital structure based on the asset-liability ratio (i.e. total liabilities divided by totalassets). As of June 30, 2023, the Company's asset-liability ratio is 66.49%.XI. Related Parties and Related Transactions
1. Parent company of the Company
| Name of Parent Company | Registration Place | Nature of Business | Registered Capital | Shareholding Proportion of the Parent Company in the Company | Proportion of Voting Rights of the Parent Company in the Company |
| FAW | Changchun | Production and sales of automobiles and parts | CNY 78,000,000,000.00 | 66.00% | 66.00% |
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
Description of the parent company of the Company: The ultimate controlling party of the Company is ChinaFAW Group Co., Ltd..Other description: The registered capital of the parent company has not changed during the reporting period.
2. Subsidiaries of the Company
For details of subsidiaries of the Company, please refer to 1 in IX "Equity in Other Entities" of Section X -Financial Report.
3. Information on joint ventures and associated enterprises of the CompanyFor details of important joint ventures or associated enterprises of the Company, please refer to 2 in IX "Equityin Other Entities" of Section X - Financial Report.Other joint ventures or associated enterprises that have related party transactions with the Company in thecurrent period or in the previous period, resulting in balance, are as follows:
| Name of Joint Ventures or Associated Enterprises | Relationship with the Company |
| First Automobile Finance Co., Ltd. | Associated enterprise of the Company, the same ultimate controlling party |
| Sanguard Automobile Insurance Co., Ltd. | Associated enterprise of the Company, the same ultimate controlling party |
| Changchun Automotive Test Center Co., Ltd. | Associated enterprise of the Company, the same ultimate controlling party |
| FAW Changchun Ansteel Steel Processing and Distribution Co., Ltd. | Associated enterprise of the Company |
| Changchun Wabco Automotive Control System Co., Ltd. | Associated enterprise of the Company |
| Suzhou Zhito Technology Co., Ltd. | Associated enterprise of the Company |
| FAW Changchun Baoyou Jiefang Steel Processing and Distribution Co., Ltd. | Associated enterprise of the Company |
| FAW Jiefang Fujie (Tianjin) Technology Industry Co., Ltd. | Associated enterprise of the Company |
| SmartLink | Associated enterprise of the Company |
| Foshan Diyiyuan New Energy Technology Co., Ltd. | Associated enterprise of the Company |
| Jiefang Times New Energy Technology Co., Ltd. | Associated enterprise of the Company |
Other description
4. Information on other related parties
| Names Of Other Related Parties | Relationship between Other Related Parties and the Company |
| China FAW Group Import & Export Co., Ltd. | The same ultimate controlling party |
| Changchun FAW Automobile Culture Communication Co., Ltd. | The same ultimate controlling party |
| FAW Changchun Automobile Trading Service Co., Ltd. | The same ultimate controlling party |
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
| FAW Asset Management Co., Ltd. | The same ultimate controlling party |
| FAW Foundry Co., Ltd. | The same ultimate controlling party |
| FAW Zhixing Technology (Nanjing) Co., Ltd. | The same ultimate controlling party |
| FAW New Energy Vehicle Sales (Shenzhen) Co., Ltd. | The same ultimate controlling party |
| FAW Logistics Co., Ltd. | The same ultimate controlling party |
| FAW Logistics (Changchun Lushun) Storage and Transportation Co., Ltd. | The same ultimate controlling party |
| FAW Logistics (Qingdao) Co., Ltd. | The same ultimate controlling party |
| FAW Mold Manufacturing Co., Ltd. | The same ultimate controlling party |
| FAW Harbin Light Automobile Co., Ltd. | The same ultimate controlling party |
| Changchun Faw Service Trade Co., Ltd. | The same ultimate controlling party |
| FAW Forging (Jilin) Co., Ltd. | The same ultimate controlling party |
| FAW-Volkswagen Automotive Co., Ltd. | The same ultimate controlling party |
| FAW Bestune Car Co., Ltd. | The same ultimate controlling party |
| FAW (Dalian) International Logistics Co., Ltd. | The same ultimate controlling party |
| Wuxi Sawane Spring Co., Ltd. | The same ultimate controlling party |
| Qiming Information Technology Co., Ltd. | The same ultimate controlling party |
| Jilin Qiming Anxin Information Security Technology Co., Ltd. | The same ultimate controlling party |
| Hainan Tropical Automobile Test Co., Ltd. | The same ultimate controlling party |
| Dalian Qiming Haitong Information Technology Co., Ltd. | The same ultimate controlling party |
| FAW Changchun Comprehensive Utilization Co., Ltd. | Other related parties |
| FAW Changchun Yanfeng Visteon Electronics Co., Ltd. | Other related parties |
| FAW Changchun Communication Technology Co., Ltd. | Other related parties |
| FAW Changchun Tianqi Process Equipment Engineering Co., Ltd. | Other related parties |
| FAW Changchun Industrial Sodis Management Service Co., Ltd. | Other related parties |
| FAW Changchun Industrial Shuixing Rubber and Plastic Products Co., Ltd. | Other related parties |
| Changchun FAW Pratt Technology Co., Ltd. | Other related parties |
| Changchun FAW United Casting Company | Other related parties |
| Changchun FAWAY Automobile Components Co., Ltd. | Other related parties |
| Changchun FAWSN Group Co., Ltd. | Other related parties |
| Changchun Yidong Clutch Co., Ltd. | Other related parties |
| Changchun Automotive Economic and Technological Development Zone Environmental Sanitation and Cleaning Co., Ltd. | Other related parties |
| FAW Jingye Engine Co., Ltd. | Other related parties |
| FAW Jilin Automobile Co., Ltd. | Other related parties |
| FAW Hongta Yunnan Automobile Manufacturing Co., Ltd. | Other related parties |
| Cinda FAW Commercial Factoring Co., Ltd. | Other related parties |
| Wuxi CRRC New Energy Automobile Co., Ltd. | Other related parties |
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
| Shandong Pengxiang Automobile Co., Ltd. | Other related parties |
| China Unicom Intelligent Network Technology Co., Ltd. | Other related parties |
| United Fuel Cell System R&D (Beijing) Co., Ltd. | Other related parties |
| The Ninth Institute of Project Planning & Research of China Machinery Industry (FIPPR) | Other related parties |
| Hongqi Intelligent Mobility Technology (Beijing) Co., Ltd. | Other related parties |
| Harbin FAW Transmission Co., Ltd. | Other related parties |
| Grammer Vehicle Parts (Qingdao) Co., Ltd. | Other related parties |
| Grammer Vehicle Parts (Harbin) Co., Ltd. | Other related parties |
| Fawer Auto Parts Co., Ltd. | Other related parties |
| Volkswagen FAW Engine (Dalian) Co., Ltd. | Other related parties |
Other description
5. Related transactions
(1) Related transactions of purchasing or selling goods and providing or receiving labor servicesStatement of goods purchase/reception of labor services
Unit: CNY
| Related Parties | Content of Related Transaction | Amount Incurred in Current Period | Approved Transaction Amount | Is the Transaction Amount Exceeded | Amount Incurred in the Previous Period |
| Fawer Auto Parts Co., Ltd. | Goods purchase and reception of labor services | 751,551,871.30 | 1,684,360,000.00 | No | 581,666,983.45 |
| Shandong Pengxiang Automobile Co., Ltd. | Goods purchase and reception of labor services | 321,749,405.78 | 481,090,000.00 | No | 136,864,850.80 |
| Changchun FAWSN Group Co., Ltd. | Goods purchase and reception of labor services | 280,903,728.09 | 678,380,000.00 | No | 166,091,546.54 |
| FAW Foundry Co., Ltd. | Goods purchase and reception of labor services | 413,071,742.20 | 847,650,000.00 | No | 264,317,382.66 |
| FAW Logistics Co., Ltd. | Goods purchase and reception of labor services | 195,120,017.33 | 400,000,000.00 | No | 155,444,625.15 |
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
| Changchun FAWAY Automobile Components Co., Ltd. | Goods purchase and reception of labor services | 181,104,399.46 | 850,690,000.00 | No | 125,298,339.31 |
| FAW Changchun Ansteel Steel Processing and Distribution Co., Ltd. | Goods purchase and reception of labor services | 156,577,508.70 | 229,220,000.00 | No | 115,077,342.40 |
| FAW Forging (Jilin) Co., Ltd. | Goods purchase and reception of labor services | 191,850,549.63 | 509,050,000.00 | No | 195,192,720.59 |
| FAW Logistics (Qingdao) Co., Ltd. | Goods purchase and reception of labor services | 119,111,915.14 | 426,000,000.00 | No | 132,447,632.30 |
| Changchun Yidong Clutch Co., Ltd. | Goods purchase and reception of labor services | 103,546,734.02 | 193,030,000.00 | No | 111,271,220.54 |
| SmartLink | Goods purchase and reception of labor services | 89,982,268.22 | 141,240,000.00 | No | 56,377,549.17 |
| Qiming Information Technology Co., Ltd. | Goods purchase and reception of labor services | 72,665,910.12 | 143,800,000.00 | No | 31,889,903.88 |
| China FAW Group Import & Export Co., Ltd. | Goods purchase and reception of labor services | 62,900,925.02 | 156,060,000.00 | No | 45,346,979.72 |
| Grammer Vehicle Parts (Harbin) Co., Ltd. | Goods purchase and reception of labor services | 45,950,885.93 | 150,000,000.00 | No | |
| The Ninth Institute of Project Planning & Research of China Machinery Industry (FIPPR) | Goods purchase and reception of labor services | 35,812,164.45 | 348,760,000.00 | No | 99,069,799.94 |
| Changchun Automotive Test | Goods purchase and | 22,796,281.44 | 134,240,000.00 | No |
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
| Center Co., Ltd. | reception of labor services | ||||
| FAW Jilin Automobile Co., Ltd. | Goods purchase and reception of labor services | 2,367,964.59 | 195,530,000.00 | No | |
| China FAW Group Co., Ltd. and other related parties | Goods purchase and reception of labor services | 484,341,667.60 | 1,022,340,000.00 | No | 368,678,042.08 |
Statement of goods sales/rendering of services
Unit: CNY
| Related Parties | Content of Related Transaction | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| China FAW Group Import & Export Co., Ltd. | Sales of goods | 6,728,264,167.89 | 2,292,647,625.45 |
| FAW Jiefang Fujie (Tianjin) Technology Industry Co., Ltd. | Sales of goods | 1,213,457,947.93 | 342,974,356.23 |
| FAW Changchun Comprehensive Utilization Co., Ltd. | Sales of goods | 100,636,434.81 | 83,819,550.59 |
| SmartLink | Sales of goods | 66,851,895.14 | |
| Changchun Faw Service Trade Co., Ltd. | Sales of goods | 27,873,745.56 | 115,783,309.46 |
| China FAW Group Co., Ltd. and other related parties | Sales of goods | 39,501,124.08 | 86,537,319.33 |
Description of related transactions of purchasing or selling goods and providing or receiving labor services:
(2) Related lease
The Company, as the lessor:
Unit: CNY
| Name of Lessee | Type of Leased Assets | Lease Income Recognized in the Current Period | Lease Income Recognized in the Previous Period |
| Changchun Automotive Test Center Co., Ltd. | Houses and buildings | 1,288,392.99 | 2,678,255.50 |
| FAW | Houses and buildings | 1,017,306.92 | 3,022,825.56 |
| Fawer Auto Parts Co., Ltd. | Houses and buildings | 197,702.76 | 197,702.76 |
| FAW Changchun Communication Technology Co., Ltd. | Land | 109,541.28 | |
| Shandong Pengxiang Automobile Co., Ltd. | Houses and buildings | 377,350.46 | 377,350.46 |
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
The Company, as the lessee:
Unit: CNY
| Name of lessor | Type of Leased Assets | Rental Expenses for Simplified Short-term leases and Low-value asset Leases (If Applicable) | Variable Lease Payments not Included in the Measurement of Lease Liabilities (If Applicable) | Rent Paid | Interest Expense on Lease Liabilities Incurred | Increased Right-of-Use Assets | |||||
| Amount Incurred in Current Period | Amount Incurred in the Previous Period | Amount Incurred in Current Period | Amount Incurred in the Previous Period | Amount Incurred in Current Period | Amount Incurred in the Previous Period | Amount Incurred in Current Period | Amount Incurred in the Previous Period | Amount Incurred in Current Period | Amount Incurred in the Previous Period | ||
| FAW Group | House and land | 2,132,938.00 | 2,132,938.00 | 262,865.98 | |||||||
| FAW | Houses and buildings | 4,427,832.76 | 22,096.94 | 773,218.73 | |||||||
| FAW Asset Management Co., Ltd. | Houses and buildings | 157,096.00 | 5,750.02 | ||||||||
| Changchun Automotive Test Center Co., Ltd. | Houses and buildings | 2,335,846.88 | 55,363.78 | ||||||||
Description of related leases
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
(3) Remuneration of key management personnel
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Remuneration of key management personnel | 10,890,749.06 | 15,228,996.18 |
(4) Other related transactions
Interest income Unit: CNY 10,000
| Related Parties | Content of Related Transaction | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| First Automobile Finance Co., Ltd. | Interest income | 5,986.34 | 17,744.08 |
6. Receivables and payables of related parties
(1) Receivables
Unit: CNY
| Project Name | Related Parties | Ending Balance | Opening Balance | ||
| Book Balance | Provision for Bad Debts | Book Balance | Provision for Bad Debts | ||
| Accounts receivable | China FAW Group Import & Export Co., Ltd. | 1,465,254,854.26 | 4,069,205.50 | 320,294,820.43 | 410,938.55 |
| Accounts receivable | SmartLink | 73,770,000.00 | 73,770.00 | ||
| Accounts receivable | FAW Hongta Yunnan Automobile Manufacturing Co., Ltd. | 61,173,492.53 | 15,728,877.75 | 61,683,343.69 | 7,544,307.53 |
| Accounts receivable | Jiefang Times New Energy Technology Co., Ltd. | 18,000,000.00 | 18,000.00 | ||
| Accounts receivable | Changchun Faw Service Trade Co., Ltd. | 8,097,726.39 | 44,537.50 | ||
| Accounts receivable | China FAW Co., Ltd. | 3,006,132.39 | 12,607.08 | 880,188.52 | 3,696.78 |
| Accounts receivable | Changchun Yidong Clutch | 2,360,610.02 | 9,914.56 | ||
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
| Co., Ltd. | |||||
| Accounts receivable | FAW Jingye Engine Co., Ltd. | 1,820,957.23 | 1,820,957.23 | 1,820,957.23 | 1,820,957.23 |
| Accounts receivable | Qiming Information Technology Co., Ltd. | 1,413,823.28 | 5,938.06 | ||
| Accounts receivable | FAW Asset Management Co., Ltd. | 617,143.28 | 455,680.94 | 469,957.39 | 455,062.76 |
| Accounts receivable | FAW Changchun Communication Technology Co., Ltd. | 60,000.00 | 252.00 | ||
| Accounts receivable | Fawer Auto Parts Co., Ltd. | 18,140.87 | 76.19 | ||
| Accounts receivable | Changchun FAWAY Automobile Components Co., Ltd. | 8,670.94 | |||
| Accounts receivable | FAW Logistics (Qingdao) Co., Ltd. | 3,233,572.00 | 13,581.00 | ||
| Accounts receivable | Changchun Automotive Test Center Co., Ltd. | 2,919,274.52 | 12,260.95 | ||
| Accounts receivable | United Fuel Cell System R&D (Beijing) Co., Ltd. | 200,233.26 | 840.98 | ||
| Accounts receivable | FAW-Volkswagen Automotive Co., Ltd. | 110,880.00 | 465.70 | ||
| Accounts receivable | FAW Changchun Yanfeng Visteon Electronics Co., Ltd. | 105,367.99 | 11,453.28 | ||
| Accounts receivable | FAW Harbin Light Automobile Co., Ltd. | 3,787.60 | 15.91 | ||
| Other receivables | China FAW Co., Ltd. | 8,825,241.85 | 8,232,613.09 | 8,453,593.02 | 8,229,193.92 |
| Other receivables | China FAW Group Import & Export Co., Ltd. | 246,006.55 | 836.42 | 50,623.62 | 172.12 |
| Other | CHINA FAW | 189,533.68 | 1,743.71 | 189,533.68 | 1,743.71 |
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
| receivables | GROUP CO., LTD. | ||||
| Other receivables | FAW Asset Management Co., Ltd. | 135,550.51 | 787.06 | 135,550.51 | 787.06 |
| Other receivables | FAW Logistics Co., Ltd. | 146,367.32 | 1,346.58 | ||
| Other receivables | FAW Forging (Jilin) Co., Ltd. | 55,563.56 | 511.19 | ||
| Other receivables | FAW Mold Manufacturing Co., Ltd. | 49,165.85 | 452.33 | ||
| Other receivables | Changchun FAWAY Automobile Components Co., Ltd. | 16,388.62 | 68.83 | ||
| Other receivables | FAW Logistics (Changchun Lushun) Storage and Transportation Co., Ltd. | 5,086.11 | 46.79 | ||
| Other receivables | Changchun Automotive Test Center Co., Ltd. | 231.00 | 0.23 | ||
| Accounts prepayment | China FAW Group Import & Export Co., Ltd. | 345,979,162.62 | 287,527,616.69 | ||
| Accounts prepayment | FAW Hongta Yunnan Automobile Manufacturing Co., Ltd. | 20,604,798.36 | 20,604,798.36 | ||
| Accounts prepayment | FAW Jilin Automobile Co., Ltd. | 18,511,380.48 | 646,730.48 | ||
| Accounts prepayment | The Ninth Institute of Project Planning & Research of China Machinery Industry (FIPPR) | 12,786,400.00 | 12,786,400.00 | ||
| Accounts prepayment | FAW Mold Manufacturing Co., Ltd. | 12,535,501.16 | 13,751,495.26 |
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
| Accounts prepayment | SmartLink | 3,919,914.00 | 2,283,555.30 | ||
| Accounts prepayment | Qiming Information Technology Co., Ltd. | 3,127,370.18 | 6,853,106.60 | ||
| Accounts prepayment | FAW | 9,862,836.98 | |||
| Accounts prepayment | FAW Changchun Communication Technology Co., Ltd. | 639,459.98 | |||
| Accounts prepayment | FAW Changchun Tianqi Process Equipment Engineering Co., Ltd. | 537,315.00 |
(2) Payables
Unit: CNY
| Project Name | Related Parties | Ending Book Balance | Beginning Book Balance |
| Accounts payable | Fawer Auto Parts Co., Ltd. | 400,777,386.93 | 144,154,473.17 |
| Accounts payable | Changchun FAWAY Automobile Components Co., Ltd. | 320,851,984.26 | 79,486,373.63 |
| Accounts payable | China FAW Group Import & Export Co., Ltd. | 303,147,549.00 | |
| Accounts payable | FAW Logistics (Qingdao) Co., Ltd. | 119,128,692.42 | 91,101,620.88 |
| Accounts payable | Changchun Yidong Clutch Co., Ltd. | 104,908,119.76 | 21,092,492.24 |
| Accounts payable | FAW Logistics Co., Ltd. | 98,357,972.15 | 32,265,403.36 |
| Accounts payable | Changchun FAWSN Group Co., Ltd. | 93,595,327.31 | 14,386,006.95 |
| Accounts payable | Shandong Pengxiang Automobile Co., Ltd. | 93,385,870.66 | 34,193,762.56 |
| Accounts payable | FAW Foundry Co., Ltd. | 81,977,130.66 | 51,984,437.61 |
| Accounts payable | FAW Forging (Jilin) Co., Ltd. | 74,071,760.93 | 18,898,210.68 |
| Accounts payable | Qiming Information Technology Co., Ltd. | 33,290,239.25 | 20,174,791.43 |
| Accounts payable | SmartLink | 29,447,850.45 | 14,489,906.15 |
| Accounts payable | FAW Changchun Ansteel Steel Processing and Distribution Co., Ltd. | 27,575,970.27 | 15,646,652.24 |
| Accounts payable | FAW Changchun Baoyou Jiefang Steel Processing and Distribution Co., Ltd. | 26,990,521.85 | 4,937,649.97 |
| Accounts payable | FAW Jilin Automobile Co., Ltd. | 23,770,525.59 | 13.33 |
| Accounts payable | FAW Harbin Light Automobile Co., Ltd. | 23,371,308.87 | 16,170,855.51 |
| Accounts payable | FAW Logistics (Changchun Lushun) | 18,446,223.44 | 11,426,277.60 |
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
| Storage and Transportation Co., Ltd. | |||
| Accounts payable | Grammer Vehicle Parts (Harbin) Co., Ltd. | 17,243,318.77 | 701,342.31 |
| Accounts payable | China FAW Co., Ltd. | 13,678,830.05 | |
| Accounts payable | Changchun Wabco Automotive Control System Co., Ltd. | 11,768,889.95 | 272,712.00 |
| Accounts payable | Grammer Vehicle Parts (Qingdao) Co., Ltd. | 9,886,971.54 | 3,402,836.35 |
| Accounts payable | Changchun Automotive Test Center Co., Ltd. | 7,900,717.76 | 316,400.00 |
| Accounts payable | FAW (Dalian) International Logistics Co., Ltd. | 4,544,914.59 | 3,851,730.60 |
| Accounts payable | FAW Changchun Comprehensive Utilization Co., Ltd. | 2,230,531.36 | 2,905,411.90 |
| Accounts payable | Changchun FAW United Casting Company | 1,614,772.37 | 521,726.80 |
| Accounts payable | FAW Changchun Automobile Trading Service Co., Ltd. | 1,326,364.99 | 1,479,550.69 |
| Accounts payable | Wuxi Sawane Spring Co., Ltd. | 1,093,878.66 | 233,647.89 |
| Accounts payable | Wuxi CRRC New Energy Automobile Co., Ltd. | 776,959.03 | 757,023.75 |
| Accounts payable | Hainan Tropical Automobile Test Co., Ltd. | 505,877.00 | 31,977.00 |
| Accounts payable | FAW Changchun Tianqi Process Equipment Engineering Co., Ltd. | 257,729.43 | 8,891.97 |
| Accounts payable | Dalian Qiming Haitong Information Technology Co., Ltd. | 240,000.00 | 248,852.00 |
| Accounts payable | FAW Changchun Industrial Shuixing Rubber and Plastic Products Co., Ltd. | 232,190.22 | 184,682.20 |
| Accounts payable | FAW Changchun Yanfeng Visteon Electronics Co., Ltd. | 161,498.64 | 715,521.31 |
| Accounts payable | Harbin FAW Transmission Co., Ltd. | 93,627.49 | |
| Accounts payable | FAW Mold Manufacturing Co., Ltd. | 64,800.00 | 1,121,206.34 |
| Accounts payable | The Ninth Institute of Project Planning & Research of China Machinery Industry (FIPPR) | 41,999.48 | 1,751,774.48 |
| Accounts payable | China Unicom Intelligent Network Technology Co., Ltd. | 32,893.00 | 54,880.00 |
| Accounts payable | Changchun FAW Pratt Technology Co., Ltd. | 17,315.37 | 17,236.96 |
| Accounts payable | FAW Zhixing Technology (Nanjing) Co., Ltd. | 16,200.00 | |
| Accounts payable | FAW Jiefang Fujie (Tianjin) Technology Industry Co., Ltd. | 15,851.74 | 111,795.54 |
| Accounts payable | FAW Changchun Communication Technology Co., Ltd. | 13,562.20 | 233,570.95 |
| Accounts payable | Suzhou Zhito Technology Co., Ltd. | 8,113.93 | 1,011,118.95 |
| Accounts payable | FAW Bestune Car Co., Ltd. | 5,100.00 | 5,100.00 |
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
| Accounts payable | Hongqi Intelligent Mobility Technology (Beijing) Co., Ltd. | 1,068.67 | 121,039.88 |
| Accounts payable | FAW | 34,214,102.32 | |
| Accounts payable | FAW Hongta Yunnan Automobile Manufacturing Co., Ltd. | 4,551,929.99 | |
| Accounts payable | FAW Changchun Industrial Sodis Management Service Co., Ltd. | 2,149,473.72 | |
| Accounts payable | Sanguard Automobile Insurance Co., Ltd. | 1,074,463.94 | |
| Accounts payable | Changchun Faw Service Trade Co., Ltd. | 849,829.54 | |
| Accounts payable | Changchun Automotive Economic and Technological Development Zone Environmental Sanitation and Cleaning Co., Ltd. | 630,751.44 | |
| Accounts payable | Changchun FAW Automobile Culture Communication Co., Ltd. | 82,778.99 | |
| Accounts payable | FAW Group | 14,133.00 | |
| Other payables | The Ninth Institute of Project Planning & Research of China Machinery Industry (FIPPR) | 118,986,888.63 | 170,438,828.71 |
| Other payables | FAW Mold Manufacturing Co., Ltd. | 24,402,495.87 | 32,192,507.66 |
| Other payables | China FAW Group Import & Export Co., Ltd. | 21,732,546.71 | 2,264,521.88 |
| Other payables | Qiming Information Technology Co., Ltd. | 14,228,113.56 | 31,377,721.05 |
| Other payables | FAW Jiefang Fujie (Tianjin) Technology Industry Co., Ltd. | 10,100,000.00 | 20,050,000.00 |
| Other payables | Shandong Pengxiang Automobile Co., Ltd. | 1,040,000.00 | 1,040,000.00 |
| Other payables | FAW Changchun Communication Technology Co., Ltd. | 924,511.59 | 3,483,543.17 |
| Other payables | FAW Hongta Yunnan Automobile Manufacturing Co., Ltd. | 831,560.00 | 831,560.00 |
| Other payables | China FAW Co., Ltd. | 500,231.25 | 2,792,527.37 |
| Other payables | Fawer Auto Parts Co., Ltd. | 425,586.91 | 429,040.30 |
| Other payables | Suzhou Zhito Technology Co., Ltd. | 10,000.00 | 10,000.00 |
| Other payables | FAW Asset Management Co., Ltd. | 6,775.62 | 3,925.62 |
| Other payables | Changchun FAWAY Automobile Components Co., Ltd. | 5,756.35 | |
| Other payables | CHINA FAW GROUP CO., LTD. | 1,693.00 | 371,435.96 |
| Other payables | FAW Changchun Tianqi Process Equipment Engineering Co., Ltd. | 4,361,315.10 | |
| Other payables | Changchun Faw Service Trade Co., Ltd. | 629,405.00 | |
| Other payables | SmartLink | 182,000.00 | |
| Other payables | Hainan Tropical Automobile Test Co., Ltd. | 97,185.18 | |
| Other payables | Changchun Automotive Test Center Co., Ltd. | 42,616.35 | |
| Accounts received | China FAW Co., Ltd. | 387,437.85 |
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
| in advance | |||
| Accounts received in advance | Fawer Auto Parts Co., Ltd. | 107,748.00 | 107,748.00 |
| Accounts received in advance | FAW Changchun Communication Technology Co., Ltd. | 6,422.03 | 17,431.19 |
| Accounts received in advance | FAW Changchun Comprehensive Utilization Co., Ltd. | 2,810.38 | 38,791.52 |
| Accounts received in advance | Changchun Automotive Test Center Co., Ltd. | 1,530,824.16 | |
| Contract liabilities | FAW Jiefang Fujie (Tianjin) Technology Industry Co., Ltd. | 31,717,676.04 | 68,040,782.38 |
| Contract liabilities | Changchun Faw Service Trade Co., Ltd. | 4,605,308.63 | 15,663,935.13 |
| Contract liabilities | FAW Changchun Comprehensive Utilization Co., Ltd. | 1,094,946.24 | 547,549.31 |
| Contract liabilities | Shandong Pengxiang Automobile Co., Ltd. | 436,036.83 | 436,111.40 |
| Contract liabilities | Suzhou Zhito Technology Co., Ltd. | 251,681.42 | 1,181,411.98 |
| Contract liabilities | China FAW Group Import & Export Co., Ltd. | 67,028.26 | 2,676,797.47 |
| Contract liabilities | FAW Asset Management Co., Ltd. | 20,698.19 | 20,698.19 |
| Contract liabilities | FAW New Energy Vehicle Sales (Shenzhen) Co., Ltd. | 8,060.00 | 7,132.74 |
| Contract liabilities | FAW Logistics Co., Ltd. | 9.88 | 9.88 |
| Contract liabilities | FAW Hongta Yunnan Automobile Manufacturing Co., Ltd. | 36,704.04 | |
| Contract liabilities | Harbin FAW Transmission Co., Ltd. | 119.16 |
7. Others
Deposit and interest of finance company Unit: CNY
| Project name | Related Parties | Contents | Ending Balance | Ending Balance of the previous year |
| Monetary capital | First Automobile Finance Co., Ltd. | Deposits and interests of finance company included in bank deposits | 8,482,461,533.79 | 13,832,934,255.95 |
XII. Share-based Payment
1. General conditions of share-based payments
□ Applicable Not applicable?
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
2. Equity-settled share-based payment
□ Applicable Not applicable?
3. Cash-settled share-based payment
□ Applicable Not applicable?
XIII. Commitments and Contingencies
1. Important commitments
Important commitments existing on the balance sheet date: As of June 30, 2023, the Company has nocommitments to be disclosed.
2. Contingencies
(1) Important contingencies existing on the balance sheet date
Contingent liabilities arising from pending litigation and arbitration and their financial impact
| Plaintiff | Defendant | Cause of Action | Court of Acceptance | Amount Involved (CNY) | Case Progress |
| Heilongjiang Xinjinshan Environmental Protection Engineering Co., Ltd. | FAW Jiefang Automotive Co., Ltd. and Transmission Branch of FAW Jiefang Automotive Co., Ltd. | Disputes over sales contract | People's Court of Changchun Automobile Economic & Technological Development Zone | 5,920,000.00 | First instance |
| Zheng Siyou, Wang Yanqin | FAW Jiefang Automotive Co., Ltd., Jilin Huaang Construction Engineering Co., Ltd., Li Jie | Disputes over construction contract | People's Court of Changchun Automobile Economic and Technological Development Zone | 1,494,402.70 | First instance |
| Chen Yun | Ma'anshan Dingding Automobile Trading Co., Ltd. and China FAW Group Co., Ltd. | Product quality disputes | Anhui Ma'anshan Intermediate People's Court | 1,265,022.78 | Second instance |
| Other 23 items | 5,911,770.65 |
As of June 30, 2023, the Company has no contingencies other than those mentioned above thatshould be disclosed.
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
(2) Explanation is also required when the Company has no important contingencies to be disclosedThe Company has no important contingencies to be disclosed.
XIV. Other important matters:
1. Annuity plan
The Company decided to participate in the enterprise annuity plan implemented by FAW Group from January 1,2010, and 5 other companies implemented self-defined enterprise annuity plans according to the Labor Law ofthe People's Republic of China, the Trust Law of the People's Republic of China, the Trial Measures forEnterprise Annuity (Order No. 20 of the Ministry of Labor and Social Security) and other laws and regulations,and in combination with actual situation of the Company.Main contents of annuity plan are as follows:
(1) "Enterprise annuity" mentioned in this plan refers to the enterprise supplementary endowment insurancesystem voluntarily established by the enterprise and its employees according to national policies and regulationson the basis of purchasing the basic endowment insurance and fulfilling the payment obligation according tolaw, and is an integral part of the enterprise employee compensation and welfare system.
(2) Organization, management and supervision: Enterprise representatives and employee representativesestablish the FAW Enterprise Annuity Council (hereinafter referred to as the Annuity Council) throughcollective negotiation. The Annuity Council is composed of enterprise and employee representatives, of whichnot less than one third are employee representatives. The Annuity Council, as the trustee of this plan, isresponsible for the operation and management of FAW Group's enterprise annuity fund.
(3) Fund raising and payment methods: The expenses required for enterprise annuity are jointly paid by theenterprise and employees.
(4) Account management: The enterprise annuity fund implements a full accumulation system and is managedby personal accounts. At the same time, enterprise accounts are established to collect unvested rights andinterests.
(5) Fund management: The enterprise annuity fund consists of the following items: ① Enterprise's payment;
② Employees' payment; ③ Investment and operation income. The enterprise annuity fund is entrusted to theAnnuity Council for management. The enterprise and employee representatives entrust the Company to sign theenterprise annuity fund entrusted management contract with the Annuity Council through collective negotiation,and entrust the Annuity Council for management and market-oriented operation of the enterprise annuity fundcollected by this plan.
(6) Benefit planning and distribution: The employee's payment and its investment income belong to theemployee; the part of enterprise's payment distributed to the individual account and its investment incomebelong to the employee as specified, and the part not belonging to the individual is transferred to the enterpriseaccount.
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
(7) Payment method of enterprise annuity: ① For the retired employee and the employee completing theretirement procedures, the balance of the annuity personal account can be received at one time (or monthly, inseveral times or at one time based the balance of the individual account, the individual income tax burden, etc.);
② For the dead, the balance of the individual account of the enterprise annuity can be collected by the legalsuccessor at one time; ③ For the overseas residents, the balance of the personal account of the enterpriseannuity may be paid to them at one time according to their requirements.
2. Others
Lease: as lesseeThe Company simplifies the short-term lease and low-value asset lease, and does not recognize the right-of-useassets and lease liabilities. The short-term lease, low-value assets and variable lease payments not included inthe lease liabilities measurement are included in the expenses in the current period as follows:
Unit: CNY
| Item | Amount Incurred in Current Period |
| Short-term lease | 20,118,245.66 |
| Low-value lease | |
| Variable lease payments not included in the measurement of lease liabilities | |
| Total | 20,118,245.66 |
XV. Notes to Main Items of Parent Company's Financial Statements
1. Other receivables
Unit: CNY
| Item | Ending Balance | Opening Balance |
| Other receivables | 224,132.76 | 224,132.76 |
| Total | 224,132.76 | 224,132.76 |
(1) Other receivables
1) Classification of other receivables by nature
Unit: CNY
| Nature | Ending Book Balance | Beginning Book Balance |
| Current account | 459,006.26 | 459,006.26 |
| Total | 459,006.26 | 459,006.26 |
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
2) Provision for bad debts
Unit: CNY
| Provision For bad Debts | Stage I | Stage II | Stage III | Total |
| Expected Credit Losses for the Next 12 Months | Expected Credit Losses over the Entire Duration (no Credit Impairment) | Expected Credit Loss over the Entire Duration (Credit Impairment Occurred) | ||
| Balance on January 1, 2023 | 234,873.50 | 234,873.50 | ||
| Balance on January 1, 2023 in the current period | ||||
| Balance on June 30, 2023 | 234,873.50 | 234,873.50 |
Significant book balance changes occurred in the provision for losses in the current period
□ Applicable Not applicable?
Disclosed by aging Unit: CNY
| Aging | Ending Balance |
| 1-2 years | 459,006.26 |
| Total | 459,006.26 |
3) Top five ending balances of other receivables classified by debtors
Unit: CNY
| Name of Unit | Nature of Payment | Ending Balance | Aging | Proportion in Total Ending Balance of Other Receivables | Ending Balance of Provision for Bad Debts |
| Changchun Committee of Municipal and Rural Construction | Current account | 459,006.26 | 1-2 years | 100.00% | 234,873.50 |
| Total | 459,006.26 | 100.00% | 234,873.50 |
2. Long-term equity investment
Unit: CNY
| Item | Ending Balance | Opening Balance | ||||
| Book Balance | Impairment Provision | Book Value | Book Balance | Impairment Provision | Book Value | |
| Investment in subsidiaries | 21,109,221,438.36 | 21,109,221,438.36 | 21,109,221,438.36 | 21,109,221,438.36 | ||
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| Investment in associated enterprises and joint ventures | 4,699,040,720.01 | 4,699,040,720.01 | 4,471,059,131.83 | 4,471,059,131.83 | ||
| Total | 25,808,262,158.37 | 25,808,262,158.37 | 25,580,280,570.19 | 25,580,280,570.19 |
(1) Investment in subsidiaries
Unit: CNY
| Investee | Opening Balance (Book Value) | Increase/Decrease in the Current Period | Ending Balance (Book Value) | Ending Balance of Impairment Provision | |||
| Additional Investment | Reduced Investment | Impairment Provision | Others | ||||
| FAW Jiefang Automotive Co., Ltd. | 21,109,221,438.36 | 21,109,221,438.36 | |||||
| Total | 21,109,221,438.36 | 21,109,221,438.36 | |||||
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(2) Investment in associated enterprises and joint ventures
Unit: CNY
| Investor | Opening Balance (Book Value) | Increase/Decrease in the Current Period | Ending Balance (Book Value) | Ending Balance of Impairment Provision | |||||||
| Additional Investment | Reduced Investment | Investment Gains or Losses Recognized under the Equity Method | Adjustment to Other Comprehensive Income | Changes in Other Equity | Cash Dividends and Profits Declared to Pay | Impairment Provision | Others | ||||
| I. Joint ventures | |||||||||||
| II. Associated enterprises | |||||||||||
| First Automobile Finance Co., Ltd. | 4,270,037,969.59 | 228,656,115.49 | 258,953.96 | 4,498,953,039.04 | |||||||
| Sanguard Automobile Insurance Co., Ltd. | 201,021,162.24 | 3,906,929.80 | -4,533.20 | 4,835,877.87 | 200,087,680.97 | ||||||
| Subtotal | 4,471,059,131.83 | 232,563,045.29 | 254,420.76 | 4,835,877.87 | 4,699,040,720.01 | ||||||
| Total | 4,471,059,131.83 | 232,563,045.29 | 254,420.76 | 4,835,877.87 | 4,699,040,720.01 | ||||||
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
3. Investment income
Unit: CNY
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Income from long-term equity investments accounted for using the equity method | 232,563,045.29 | 292,234,106.00 |
| Total | 232,563,045.29 | 292,234,106.00 |
XVI. Supplementary Information
1. Breakdown of non-recurring profit or loss of current period
?Applicable □ Not applicable
Unit: CNY
| Item | Amount | Description |
| Profits or losses on disposal of non-current assets (including the write-off part of the impairment provision of assets withdrawn) | 98,132,494.11 | It refers to the net profit on disposal of non-current assets. |
| Government subsidies included in the current profit and loss (except those closely related to the Company normal operations, conforming to the State policies and regulations and enjoyed persistently in line with certain standard quotas or quantities) | 193,604,585.44 | |
| Reversal of impairment provision for receivables subject to separate impairment test | 59,131.00 | It mainly refers to the reversal of impairment provision for receivables subject to separate impairment test. |
| Non-operating income and expenses other than the above items | 5,740,722.98 | They mainly refer to the net non-operating income and expenses |
| Less: amount affected by income tax | 48,166,962.97 | |
| Total | 249,369,970.56 | -- |
Specific conditions of other profit and loss items meeting the definition of non-recurring profit and loss:
□ Applicable Not applicable?
There are no specific conditions of profit and loss items meeting definition of non-recurring profit and loss forthe Company.Explanation on defining the non-recurring profit and loss items listed in the Explanatory Announcement No. 1on Information Disclosure by Companies Issuing Securities Publicly - Non-recurring Profit and Loss asrecurring profit and loss items
Full Text of 2023 Semi-annual Report FAW JIEFANG GROUP CO., LTD.
□ Applicable Not applicable?
2. Return on net assets and earnings per share
| Profit for the Reporting Period | Weighted Average Return on Equity | Earnings per Share | |
| Basic Earnings per Share (CNY/share) | Diluted Earnings per Share (CNY/share) | ||
| Net profit attributable to ordinary shareholders of the Company | 1.68% | 0.0872 | 0.0872 |
| Net profit attributable to ordinary shareholders of the Company after deduction of non-recurring profit and loss | 0.64% | 0.0330 | 0.0330 |
3. Differences in accounting data under domestic and foreign accounting standards
(1) Differences in net profits and net assets in the financial report disclosed simultaneously according tothe international accounting standards and China accounting standards
□ Applicable Not applicable?
(2) Differences in net profits and net assets in the financial report disclosed simultaneously according toforeign accounting standards and China accounting standards
□ Applicable Not applicable?