Jiangling Motors Corporation, Ltd.
2016 Half-year Report
Chapter I Important Notes, Contents and Abbreviations
Important Note
The Board of Directors and its members, the Supervisory Board and its
members, and the senior executives are jointly and severally liable for the
truthfulness, accuracy and completeness of the information disclosed in the
report and confirm that the information disclosed herein does not contain false
statements, misrepresentations or major omissions.
All Directors were present at the Board meeting to review this Half-year
Report.
Neither cash dividend nor stock dividend was distributed. The Board decided
not to convert capital reserve to share capital this time.
Chairman Qiu Tiangao, CFO Gong Yuanyuan and Chief of Finance
Department, Ding Ni, confirm that the Financial Statements in this Half-year
Report are truthful, accurate and complete.
The prospective description regarding future business plan and development
strategy in this report does not constitute virtual commitment. The investors
shall pay attention to the risk.
All financial data in this report are prepared under International Financial
Reporting Standards (‘IFRS’) unless otherwise specified.
The Half-year Report is prepared in Chinese and English. In case of
discrepancy, the Chinese version will prevail.
Contents
Chapter I Important Notes, Contents and Abbreviations ............................... 2
Chapter II Brief Introduction ........................................................................... 4
Chapter III Operating Overview ...................................................................... 5
Chapter IV Management Discussion and Analysis.......................................... 6
Chapter V Major Events ............................................................................... 12
Chapter VI Share Capital Changes & Shareholders ...................................... 15
Chapter VII Preferred Shares.......................................................................... 17
Chapter VIII Directors, Supervisors and Senior Management.......................... 17
Chapter IX Financial Statements .................................................................. 18
Chapter XI Catalog on Documents for Reference .......................................... 73
Abbreviations:
JMC, or the Company Jiangling Motors Corporation, Ltd.
JMH Jiangling Motor Holding Co., Ltd.
Ford Ford Motor Company
Jiangling-Isuzu Jiangling-Isuzu Motors Company, Ltd.
CSRC China Securities Regulatory Commission
JMCG Jiangling Motors Company (Group)
JMCH JMC Heavy Duty Vehicle Co., Ltd.
EVP Executive Vice President
CFO Chief Financial Officer
VP Vice President
Chapter II Brief Introduction
1. Company’s Information
Share’s name Jiangling Motors, Jiangling B Share’s Code 000550, 200550
Place of listing Shenzhen Stock Exchange
Company’s Chinese
江铃汽车股份有限公司
name
English name Jiangling Motors Corporation, Ltd.
Abbreviation JMC
Company legal
Qiu Tiangao
representative
2. Contact Person and Method
Securities Affairs
Board Secretary
Representative
Name Wan Hong Quan Shi
No. 509, Northern Yingbin No. 509, Northern Yingbin
Address Avenue, Nanchang City, Avenue, Nanchang City,
Jiangxi Province, P.R.C Jiangxi Province, P.R.C
Tel 86-791-85235675 86-791-85266178
Fax 86-791-85232839 86-791-85232839
E-mail relations@jmc.com.cn relations@jmc.com.cn
3. Other
i. Contact Methods
Changes of registered address, headquarter address, postal code, website
and e-mail
□Applicable √Not Applicable
There is no change of registered address, headquarter address, postal code,
website and e-mail. Please refer to 2015 Annual Report for details.
ii. Newspapers for information disclosure, website for publication of JMC’s
Half-year Report and place for achieving Half-year Report
□Applicable √Not Applicable
There is no change of newspapers for information disclosure, website
designated by CSRC for publication of JMC’s Half-year Report and place for
achieving Half-year Report. Please refer to 2015 Annual Report for details.
iii. Changes of Registration
Changes of registration during the reporting period
√Applicable □Not Applicable
No. of Legal Taxation Organization
Registered Person’s Registration Code
Registered Place
date Business Number
Licence
Registration at the Jiangxi (State
April 30,
beginning of Administration for Administration of 61244694-3
2008
reporting period Industry & Taxation)
Commerce
43；(Nanchang
Local Taxation)
Jiangxi
Registration at the
Administration for 9136000061 9136000061244 9136000061
end of reporting April 8, 2016
Industry & 24469438 69438 24469438
period
Commerce
Chapter III Operating Overview
1. Main accounting data and financial ratios
Unit: RMB ‘000
Reporting period Same period
(2016 first half)* last year* Change (%)
Revenue 10,810,736 11,989,327 -9.83
Profit Attributable to the
Equity Holders of the 704,517 1,081,532 -34.86
Company
Net Cash Generated
987,554 230,053 329.27
From Operating Activities
Basic Earnings Per Share
0.82 1.25 -34.86
(RMB)
Diluted Earnings Per
0.82 1.25 -34.86
Share (RMB)
Weighted Average Return Down 4
5.71 9.71
on Equity Ratio percentage points
At the end of At the end of the Change (%)
reporting period* previous year
Total Assets 21,307,886 21,050,726 1.22
Shareholders’ Equity
Attributable to the Equity 11,796,549 11,981,142 -1.54
Holders of the Company
Note: *unaudited financial indexes.
2. Accounting data difference between China GAAP and IFRS
Impact of IFRS adjustments on the net profit and shareholders’ equity
□Applicable √Not Applicable
Chapter IV Management Discussion and Analysis
1. Summary
In the first half of 2016, China automobile market has been maintained growth
attributed to the rapid growth of SUV market. Total sales volume was 12.83
million units, increased 8.14% compared with the same period last year. SUV
sales volume was 3.85 million units, increased 44.26% compared with the
same period last year and commercial vehicle sales volume was 1.79 million
units, increased 1.87% compared with the same period last year.
During the reporting period, to cope with more severe competition, more
stringent regulatory requirement and intensifying cost pressures, the
Company focused on quality improvement, new product development,
operating cost control and production efficiency enhancement. Simultaneously,
the Company introduced a series of sales policy to respond the market
pressure. In the first half of 2016, JMC achieved sales volume of 121,008
units, decreased 10.78% compared with the same period last year, achieved
revenue of RMB 10.81 billion, decreased 9.83% compared with the same
period last year and achieved net profit of RMB 700 million, decreased 34.86%
compared with the same period last year.
2. Core Business Analysis
Year-over-Year Changes of Main Financial Data
Unit: RMB’000 Yuan
YOY change
2016 1H 2015 1H Reason
（%）
Revenue 10,810,736 11,989,327 -9.83%
Cost of sales 8,356,083 9,009,816 -7.26%
Distribution costs 758,003 634,670 19.43%
Administrative
944,758 1,059,639 -10.84%
expenses
Income PBT declined due to
66,103 185,924 -64.45%
tax expense lower sales
Profit Attributable to the Sales volume decrease,
Company’s Equity product price reduction
704,517 1,081,532 -34.86
Holders and distribution costs
increase
Net cash generated the decrease of payment
987,554 230,053 329.27%
from operating activities of commodity purchasing
Net cash used in
-357,893 -484,523 26.13%
investing activities
Net cash used in
-7,783 -231 -3269.26%
financing activities
Net increase/(decrease)
in cash and cash 621,878 -254,701 344.16%
equivalents
3. Composition of Core Business
Unit: RMB Yuan
Y-O-Y
Y-O-Y
Y-O-Y Cost gross
Gross turnover
Turnover Cost Change margin
Margin change
(%) change
(%)
(points)
Automobile 10,694,697,832 8,246,952,920 22.89% -10.10% -7.53% -2.15
Industry
Vehicle 9,507,665,193 7,381,951,778 22.36% -12.36% -9.42% -2.52
China 10,694,697,832 8,246,952,920 22.89% -10.10% -7.53% -2.15
Substantial change of profit composition during the reporting period
□Applicable √Not Applicable
There was no substantial change of profit composition during the reporting
period.
Future development and prospects disclosed in the public disclosure
documents, such as prospectus, raised funding report and assets
restructuring report continue into the reporting period
□Applicable √Not Applicable
There was no future development and prospects disclosed in the public
disclosure documents, such as prospectus, raised funding report and assets
restructuring report continued into the reporting period.
Review on the operation status of the previous disclosed business plan in the
reporting period
During the reporting period, to cope with more severe competition, more
stringent regulatory requirement and intensifying cost pressures, the
Company focused on quality improvement, new product development,
operating cost control and production efficiency enhancement. Simultaneously,
the Company introduced a series of sales policy to respond the market
pressure. In the first half of 2016, JMC achieved sales volume of 121,008
units, decreased 10.78% compared with the same period last year, achieved
revenue of RMB 10.81 billion or the target of 42% of 2016 budget, decreased
9.83% compared with the same period last year and achieved net profit of
RMB 700 million, decreased 34.86% compared with the same period last year.
In the second half of 2016, JMC will continue to expand market and
endeavour to the promotion of new products such as New Yusheng 330 SUV
so as to increase sales volume and complete annual target.
4. Core Competitiveness Analysis
JMC is a sino-foreign joint venture auto company with R&D, manufacturing
and sales operations. As a mainstream of domestic light commercial vehicle
industry, JMC had been ranked among the top hundred Chinese listed
corporations with comprehensive strength for consecutive years; and
certificated as a national enterprise technology center, high-tech enterprise
and national automobile export base.
JMC's influence over auto industry is improving steadily, making considerable
progress both in technical equipment and new product development. As the
series of new products such as Ford brand SUV EVEREST, MPV TOURNEO
and Ford engine 2.0GTDI launched, the Company’s development and
manufacturing competences are further strengthened; Xiaolan new plant’s
manufacturing level and new R&D center’s development capability are further
improved. Meanwhile, learning Ford advanced technology and management
experience, JMC self-developed Yusheng S330 SUV will be launched in 2016
second half which will further enhance the Company’s competence on R&D,
manufacturing and competitiveness in SUV field.
5. Investment Analysis
I. Outside Equity Investment
(a) Outside Investment
□Applicable √Not Applicable
The Company had no outside investment during the reporting period.
(b) Equity of Financial Enterprise Held by JMC
□Applicable √Not Applicable
The Company did not hold any equity of financial enterprise during the
reporting period.
(c) Stock Investment
□Applicable √Not Applicable
The Company had no stock investment during the reporting period.
(d) Equity of Other Listed Company Held by JMC
□Applicable √Not Applicable
The Company did not hold any equity of other listed company during the
reporting period.
II. Entrusting Investment, Derivative Investment, Entrusting Loan
(a) Entrusting Investment
□Applicable √Not Applicable
The Company had no entrusting investment during the reporting period.
(b) Derivative Investment
□Applicable √Not Applicable
The Company had no derivate investment during the reporting period.
(c) Entrusting Loan
□Applicable √Not Applicable
The Company had no entrusting loan during the reporting period.
III. Usage of Raised Fund
□Applicable √Not Applicable
The Company had no usage of raised fund during the reporting period.
IV. Operating Results of Main Subsidiaries and Joint-Stock Companies
√Applicable □ Not Applicable
Unit: RMB Yuan
Name of Type of Registered Operating
Main Products Assets Net Assets Turnover Net Profit
Companies Companies Capital Profit
Jiangling
Motors Sales Sales vehicle,
Subsidiary 50,000,000 2,205,665,234 87,458,596 9,295,198,103 -177,623,727 -133,272,894
Corporation, service parts
Ltd
Product heavy
JMC Heavy commercial
Duty Vehicle Subsidiary vehicle , engine, 281,793,174 1,165,379,777 -42,119,396 51,515,855 -81,496,049 10,751,799
Co., Ltd component, and
related service
Hannon
Automotive air
Systems Joint -Stock
conditioning and 46,627,171 333,142,527 210,306,977 229,287,329 35,196,869 26,244,382
(Nanchang) Company
Parts
Co., Ltd.
V. Major Non-Raised Fund Investment
√Applicable □ Not Applicable
Total Spending in
Investment
Investment the first half Planned
Project Name Committed
Approval of 2016 Job#1 Time
(RMB Mils) (RMB Mils) (RMB Mils)
J08 Program 1,233 6 812 First Half, 2016
J09 Program 2,414 149 1,754 Second Half, 2016
Capacity
Investment in 2,133 12 1,878 First Half, 2017
Xiaolan Site
N330 Program 1,212 121 780 First Half, 2017
J20 Heavy Truck
Program Long 1,173 122
