Share’s name: Jiangling Motors Share’s code: 000550 No.: 2016-045
Jiangling B
Jiangling Motors Corporation, Ltd.
2016 Third Quarter Report
§1 Important Note
1.1 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.
1.2 The Directors, Supervisors, and Senior Management undertake and have
no objection to the truthfulness, accuracy and completeness of the contents of
the Third Quarter Report.
1.3 All Directors were present at the Board meeting in person.
1.4 The financial statements in this Quarterly Report are not audited.
1.5 Chairman Qiu Tiangao, CFO Gong Yuanyuan and Chief of Finance
Department, Ding Ni, confirm that the financial statements in this Quarterly
Report are truthful and complete.
1.6 All financial data in this Quarterly Report are prepared under International
Financial Reporting Standards (‘IFRS’) unless otherwise specified.
§2 Brief Introduction
2.1 Main accounting data and financial indicators
Unit: RMB’000
At the end of At the end of the Change (%)
reporting period previous year
Total Assets 21,710,970 21,050,726 3.14
Shareholder’s equity
Attributable to the Equity 12,185,585 11,981,142 1.71
Holders of the Company
Beginning of
Reporting year to
period
Change (%) end of Change (%)
(2016 third reporting
quarter) period
Revenue 6,418,622 28.97 17,229,358 1.55
Profit Attributable to the
Equity Holders of the 389,036 -15.22 1,093,553 -29.01
Company
Net Cash Generated From
- - 2,073,738 993.21
Operating Activities
Basic Earnings Per Share
0.45 -15.22 1.27 -29.01
(RMB)
Diluted Earnings Per Share
0.45 -15.22 1.27 -29.01
(RMB)
Down 0.95 Down 4
Weighted Average Return on
3.41 percentage 9.78 percentage
Net Asset Ratio (%)
point points
2.2 Total number of shareholders and top ten shareholders at the end of
reporting period
2.2.1 Total number of shareholders and top ten shareholders
Total shareholders JMC had 17,687 shareholders as of September 30, 2016.
Top ten shareholders
Shares due
Shareholding Shares as of Shares with
Shareholder to
Shareholder Name Percentage September Trading
Type mortgage
(%) 30, 2016 Restriction
or frozen
Jiangling Motor State-owned
41.03% 354,176,000 0
Holding Co., Ltd. legal person
Ford Motor Company Foreign legal
32.00% 276,228,394 0
person
China Securities
Other 2.64% 22,745,784
Corporation Limited
Shanghai Automotive State-owned
1.51% 13,019,610 0
Co., Ltd. Legal person
Central Huijin State-owned
0.83% 7,186,600 0
Investment Ltd. Legal person
BILL & MELINDA
GATES Foreign legal
0.72% 6,245,580 0
FOUNDATION person
TRUST
JPMBLSA RE FTIF
Foreign legal
TEMPLETON CHINA 0.68% 5,872,450 0
person
FUND GTI 5497
Foreign legal
GAOLING FUND,L.P. 0.63% 5,439,086 0
person
E Fund New Silk-road Domestic
Securities Investment non-state-owned 0.63% 5,400,000 0
Fund legal person
British Columbia Foreign legal
0.61% 5,300,072 0
Invest Company person
Top ten shareholders holding unlimited tradable shares
Shareholder Name Shares without Trading Share Type
Restriction
Jiangling Motor Holding Co., Ltd. 354,176,000 A share
Ford Motor Company 276,228,394 B share
China Securities Corporation Limited 22,745,784 A share
Shanghai Automotive Co., Ltd. 13,019,610 A share
Central Huijin Investment Ltd. 7,186,600 A share
BILL & MELINDA GATES FOUNDATION
6,245,580 A share
TRUST
JPMBLSA RE FTIF TEMPLETON CHINA
5,872,450 B share
FUND GTI 5497
GAOLING FUND,L.P. 5,439,086 B share
E Fund New Silk-road Securities
5,400,000 A share
Investment Fund
British Columbia Invest Company 5,300,072 A share
Notes on association among
None.
above-mentioned shareholders
Stock buy-back of top ten shareholders or top ten shareholders holding
unlimited tradable shares in the reporting period
□Yes □√No
There was no Stock buy-back of top ten shareholders or top ten shareholders
holding unlimited tradable shares in the reporting period.
2.2.2 Total number of shareholders holding preferred shares and top ten
shareholders holding preferred shares
□Applicable □√Not Applicable
§3 Major Events
3.1 Causes and explanations of major changes of financial indicators
compared with those of previous reporting period
□√Applicable □Not Applicable
In the first three quarters of 2016, JMC sold 184,521 vehicles, including 71,634
JMC-brand trucks, 42,569 JMC-brand pickups, 16,638 SUVs, 48,060
Ford-brand commercial vehicles, and 5,620 Transit CKDs. Total sales volume
decreased by 2.14% compared with the same period last year. Revenue and
net profit during the reporting period were RMB 17,229 million and RMB 1,094
million, increase 1.55% and down 29.01% respectively compared with the
same period last year.
Intangible assets at the end of the reporting period increased by RMB 82
million, or 195.89% from the end of 2015, primarily reflecting the capitalization
of research and development spending.
Other non - current assets at the end of the reporting period increased by RMB
37 million, or 56.92% from the end of 2015, primarily reflecting the increase of
JMCH capitalized expenditure deductible VAT input tax.
Distribution costs in the third quarter of 2016 increased by 125 million, up
38.26% from the same period last year, primarily reflecting the increase of
marketing expenses due to the sever competition situation.
Administrative expenses in the third quarter of 2016 increased by 129 million,
up 30.19% from the same period last year, primarily reflecting the increase of
research and development spending.
Other income In the third quarter of 2016 decreased by RMB 26 million, down
34.44% from the same period last year, primarily reflecting the decrease of
government subsidies in the current period.
Profit before income tax In the first three quarters of 2016 decreased by RMB
544 million, down 30.58% from the same period last year, primarily reflecting
product price reduction and the marketing expense increase.
Income tax expense in the first three quarters of 2016 decreased by RMB 98
million, down 40.70% from the same period last year, primarily reflecting the
decrease of the profit.
Net cash generated from operating activities In the first three quarters of 2016
increased by RMB 2,306 million, up 993.21% from the same period last year,
primarily reflecting the increase of cash generated from sales revenue and
decrease of cash paid for purchase goods or accepting labor services.
3.2 Analysis of major events, their impacts and resolutions
□Applicable □√Not Applicable
3.3 Commitments of the Company, the shareholder, the actual controlling
party, the acquirer, the Director, the Supervisor, the senior executive or the
related party of the Company
□Applicable □√Not Applicable
3.4 Forecast on 2016 operating performance
Warning and explanations as to the situation that accumulated net profit during
the period from year beginning to the end of next reporting period may be
negative or, compared with the same period last year, may have a substantial
change
□Applicable □√Not Applicable
3.5 Securities investment
□Applicable □√Not Applicable
There was no securities investment during the reporting period.
3.6 Securities derivates investment
□Applicable □√Not Applicable
There was no securities derivates investment during the reporting period.
3.7 External research and media interviews with the Company during the
reporting period
Date Communication Type of Information Discussed
Method Object and Materials offered
August 12, 2016 On-the-spot Institution JMC Operating highlights
research
September 8, 2016 On-the-spot Institution JMC Operating highlights
research
3.8. Outside guarantee in breach of laws & regulations
□Applicable □√Not Applicable
There was no outside guarantee in breach of laws & regulations during the
reporting period.
3.9 Non-operating funding in the Company occupied by controlling
shareholder and its affiliates
□Applicable □√Not Applicable
There was no non-operating funding in the Company occupied by controlling
shareholder and its affiliates during the reporting period.
§4 Financial Statements
Jiangling Motors Corporation, Ltd.
Consolidated Balance Sheet
(All amounts in RMB thousands unless otherwise stated)
30 September 2016* 31 December 2015
RMB’000 RMB’000
ASSETS
Non-current assets
Property, plant and equipment(“PPE”) 6,430,410 6,323,546
Lease prepayment 636,337 645,608
Intangible assets 123,402 41,705
Investments accounted for using the
Equity method 35,547 40,993
Other non-current assets 101,196 64,487
Deferred income tax assets 477,244 473,933
7,804,136 7,590,272
Current assets
Financial assets at fair value through profit
or loss 5,675
Inventories 2,031,434 1,730,930
Trade, other receivables and prepayments 2,429,407 2,793,770
Cash and cash equivalents 9,352,681 8,848,040
Assets classified as held for sale 87,637 87,637
13,906,834 13,460,454
Total assets 21,710,970 21,050,726
EQUITY
Capital and reserves attributable to the
Company’s equity holders
Share capital 863,214 863,214
Share premium 816,609 816,609
Other reserves 452,938 452,938
Retained earnings 10,052,824 9,848,381
Total equity 12,185,585 11,981,142
LIABILITIES
Non-current liabilities
Borrowings 4,591 4,678
Deferred income tax liabilities 27,615 28,392
Retirement benefit obligations 48,529 52,273
Provisions for warranty and other liabilities 243,897 214,722
Other non-current liabilities 340
324,972 300,465
Current liabilities
Trade and other payables 9,140,589 8,708,829
Current income tax liabilities 49,827 50,305
Borrowings 437
Retirement benefits obligations 4,560 4,560
Other current liabilities 5,000 5,000
9,200,413 8,769,119
Total liabilities 9,525,385 9,069,584
Total equity and liabilities 21,710,970 21,050,726
*: Unaudited financial indexes
Jiangling Motors Corporation, Ltd.
Consolidated Income Statement
(All amounts in RMB thousands unless otherwise stated)
2016.7.1- 2015.7.1- 2016.1.1- 2015.1.1-
2016.9.30* 2015.9.30* 2016.9.30* 2015.9.30*
Revenue 6,418,622 4,976,888 17,229,358 16,966,215
Sales tax (185,384) (150,855) (505,843) (522,026)
Cost of sales (4,866,388) (3,703,325) (13,222,471) (12,713,141)
Gross profit 1,366,850 1,122,708 3,501,044 3,731,048
Distribution costs (451,753) (326,753) (1,209,756) (961,423)
Administrative expenses (554,365) (425,798) (1,499,123) (1,485,437)
Impairment change of non-current assets - - (1,347)
Other income 50,039 76,323 275,895 274,921
Operating profit 410,771 446,480 1,066,713 1,559,109
Finance income 53,272 64,863 163,691 212,860
Finance costs (2,298) (1,614) (3,065) (2,091)
Finance income -net 50,974 63,249 160,626 210,769
Share of profit of investments accounted
for using the equity method 3,251 2,778 8,277 10,085
Profit before income tax 464,996 512,507 1,235,616 1,779,963
Income tax expense (75,960) (53,641) (142,063) (239,565)
Profit for the period 389,036 458,866 1,093,553 1,540,398
Total comprehensive income for the
period 389,036 458,866 1,093,553 1,540,398
Profit attributable to:
Shareholders of the Company 389,036 458,866 1,093,553 1,540,398
Total comprehensive income
attributable to:
Shareholders of the Company 389,036 458,866 1,093,553 1,540,398
Earnings per share for profit attributable
to the shareholders of the Company
(expressed in RMB per share)
- Basic and diluted 0.45 0.53 1.27 1.78
*: Unaudited financial indexes
Jiangling Motors Corporation, Ltd.
Consolidated cash flow statement
(All amounts in RMB thousands unless otherwise stated)
2016.7.1-2015.9.30* 2016.1.1-2015.9.30*
Cash flows from operating activities
Cash generated from operations 1,116,780 2,220,687
Interest paid - (320)
Income Tax paid (30,596) (146,629)
Net cash generated from operating activities 1,086,184 2,073,738
Cash flows from investing activities
Purchase of PPE and Lease prepayment (327,239) (839,683)
Other cash paid relating to investment activities - (101)
Proceeds from disposal of PPE and Lease 9 2,620
prepayment
Interest received 14,298 160,217
Dividends received - 5,745
Other cash received from investing activities 1,177 1,554
Net cash used in investing activities (311,755) (669,648)
Cash flows from financing activities
Repayments of borrowings - (212)
Dividends paid to the Company’s shareholders (890,199) (897,770
