Chongqing Changan Automobile Company Limited
2018 Semi-annual Report
August 2018
Chapter 1 Important Notice, Contents, and Definitions
The Board of Directors, the Board of Supervisors, Directors, Supervisors and Senior Executivesof the company hereby guarantee that no false or misleading statement or major omission was madeto the materials in this report and that they will assume all the responsibilities, individually andjointly, for the trueness, accuracy and completeness of the contents of this report.All the directors attended the board meeting for reviewing the semi-annual report.For the first half of 2018, the Company has no plans of cash dividend, no bonus shares and noshare converted from capital reserve.The Chairman of the Board Zhang Baolin, the Chief Financial Officer Zhang Deyong and theresponsible person of the accounting institution (Accountant in charge) Chen Jianfeng herebydeclare that the Financial Statements enclosed in this annual report are true, accurate and complete.
The prospective description regarding future business plan and development strategy in thisreport does not constitute virtual commitment. The investors shall pay attention to the risk.The report shall be presented in both Chinese and English, and should there be any conflictingunderstanding of the text, the Chinese version shall prevail.
CONTENTS
Chapter 1 Important Notice, Contents, and Definitions ...... 1
Chapter 2 Company Profile & Main Financial Indexes ...... 4
Chapter 3 Analysis of Main Business ...... 7
Chapter 4 Business Discussion and Analysis ...... 9
Chapter 5 Important Matters ...... 22
Chapter 6 Changes in the shareholding of the company and shareholders ...... 30
Chapter 7 Information about Directors, Supervisors, Senior Management ...... 34
Chapter 8 Corporate Bonds ...... 34
Chapter 9 The Financial Statements ...... 35
Chapter 10 Documents for Future Reference ...... 147
Definitions
Items | Definitions | |
Changan Auto., the Company | Refers to | Chongqing Changan Automobile Company Limited |
South Industries | Refers to | China South Industries Group Co., Ltd. , the Company’s actual controller |
China Changan | Refers to | China Changan Automobile Group Corporation, old name: China South Industries automobile Co., Ltd., a subsidiary company of South Industries |
Changan Industry | Refers to | Chongqing Changan Industry (Group) Co., Ltd., old name: Changan Automobile Co., Ltd., Changan Automobile (Group) Co., Ltd., a subsidiary company of South Industries, the controlling shareholder of the Company before December, 2005 |
Nanjing Changan | Refers to | Nanjing Changan Automobile Co., Ltd., a subsidiary company of the Company |
Hebei Changan | Refers to | Hebei Changan Automobile Co., Ltd., a subsidiary company of the Company |
Hefei Changan | Refers to | Hefei Changan Automobile Co., Ltd., a subsidiary company of the Company |
Changan Bus | Refers to | Baoding Changan Bus Co., Ltd. , a subsidiary company of the Company |
International Company | Refers to | Chongqing Changan Automobile International Sale Service Co., Ltd. , a subsidiary company of the Company |
Changan Ford | Refers to | Changan Ford Automobile Co. Ltd,,a JV of the Company |
Changan Mazda | Refers to | Changan Mazda Automobile Co. Ltd, a JV of the Company |
CFME | Refers to | Changan Ford Mazda Engine Co. Ltd, a JV of the Company |
Changan Suzuki | Refers to | Chongqing Changan Suzuki Auto. Co.Ltd., a JV of the Company |
CAPSA | Refers to | Changan PSA Automobiles Co., Ltd,a JV of the Company |
Jiangling Holding | Refers to | Jiangling Holding Co., a JV of the Company |
Changan Finance | Refers to | Changan Auto Finance Co.Ltd Company's Joint Stock Company |
Financial Co. of CSGC | Refers to | Financial Co. of China South Industries Group Co., Ltd. , |
UPI | Refers to | United Prosperity (Hong Kong)Investment Co., Ltd,a subsidiary company of China Changan |
Hafei Group | Refers to | Harbin Hafei Automobile Industry Group Co., Ltd., a subsidiary company of China Changan |
CMAL | Refers to | Chongqing Changan Minsheng APLL Logistics Co., Ltd, a Joint Stock Company of China Changan. |
Chapter 2 Company Profile & Main Financial Indexes
I. Basic Information
Stock abbreviation | Changan Automobile 、Changan B | Stock Code | 000625、200625 |
Listed on | Shenzhen Stock Exchange | ||
Company in Chinese name | 重庆长安汽车股份有限公司 | ||
Company abbreviation in Chinese name | 长安汽车 | ||
Company name in English | Chongqing Changan Automobile Company Limited | ||
Legal representative | Zhang Baolin |
II. Contact Information
Secretary of the Board of Directors | Securities affairs representative | |
Name | Li Jun | |
Contact address | No. 260, East Jianxin Road, Jiangbei District, Chongqing | |
Telephone | 023-67594008 | |
Fax | 023-67866055 | |
E-mail address | cazqc@changan.com.cn |
III. Others
1. Way of contact
Whether registration address, office address and its post code as well as website and email of the Company changed in the
reporting period or not
□ Applicable √ Not applicableThe registration address, office address and post code as well as website and email of the Company did not change in the
reporting period. See more details in Annual Report 2017.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not□ Applicable √ Not applicable
The newspaper appointed for information disclosure, the website for the publish of the semi-annual report appointed by CSRC
and the preparation place for semi-annual report did not change in the reporting period. See more details in Annual Report 2017.
3. Other relevant information
Whether other relevant information changed in the reporting period or not□ Applicable √ Not applicable
IV. Summary of Accounting Data and Financial Indexes
Does the company conduct the retrospective adjustment or restatement over previous years accounting data due to changes ofaccounting policies or accounting errors?
□ Yes √ No
Report period | Same period of last year | Increase/decrease y-o-y (%) | |
Operating revenue (Yuan) | 35,642,832,190.04 | 33,555,213,109.46 | 6.22% |
Net profit belonging to shareholders of the listed company (Yuan) | 1,609,606,578.84 | 4,620,545,739.52 | -65.16% |
Net profit belonging to shareholders of the listed company after deduction of non-recurring profit and loss (Yuan) | 695,716,688.41 | 3,556,761,447.08 | -80.44% |
Net cash flow arising from operating activities (Yuan) | 4,401,401,760.15 | 4,959,704,724.11 | -11.26% |
Basic earnings per share (Yuan/Share) | 0.34 | 0.96 | -64.58% |
Diluted earnings per share (Yuan/Share) | 0.34 | 0.96 | -64.58% |
Return on equity (ROE) (%) | 3.39% | 10.42% | Down 7.03% |
Report period | Same period of last year | Increase/decrease y-o-y (%) | |
Total assets (RMB) | 100,410,971,452.44 | 106,125,114,622.69 | -5.38% |
the listed company(RMB) | 47,315,245,829.90 | 47,598,690,942.28 | -0.60% |
V. The differences between domestic and international accounting standards
1. Simultaneously pursuant to both Chinese accounting standards and international accounting standardsdisclosed in the financial reports of differences in net income and net assets.
□ Applicable √ Not applicable
No difference
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas andChinese accounting standards.
□ Applicable √ Not applicable
No difference
VI. Non-recurring items and amounts
√ Applicable □ Not applicable
In RMB Yuan
Item | Amount | Illustration |
Gain/loss of non-current assets | 18,771,809.69 | |
The government subsidies included in the current profits and losses (except government subsidies closely related to corporate business, entitled in fixed quota or quantity) | 1,116,231,219.32 | |
Current net profit from beginning to combined date of business combination under common control | ||
Investment income from disposing available-for-sale equity securities | ||
Other non-business income and expenditures other than the above items | -23,029,866.17 | |
Interest on deferred payment of funds received by non-financial enterprises | 8,091,557.41 | |
Subtract: Influenced amount of income tax | 180,608,049.13 | |
Influenced amount of miniority shareholders’ equity (after tax) | 25,566,780.69 | |
Total | 913,889,890.43 | -- |
According to “Public offering of securities information disclosure of the company's information disclosure announcement No. 1 –non-recurring gains and losses” defined non-recurring items ,and“Public offering of securities information disclosure of thecompany's information disclosure announcement No. 1 - non-recurring gains and losses”The items, defined as recurring items, are
listed in the announcement No. 1 and shall be explained.
□ Applicable √ Not applicableThe company in the reporting period does not base on the definition and listing of “Public offering of securities informationdisclosure of the company's information disclosure announcement No. 1 – non-recurring gains and losses” about non-recurring gains
and losses to define a case of recurring profit or loss.
Chapter 3 Analysis of Main Business
I. The main business of the Company in the reporting period
Does the Company need to comply with the disclosure requirements of special industry
□ Yes √ No
During the reporting period, the company's main business is the R&D, manufacturing and sale of cars, the R&D and productionof automobile engine products. Besides, the company integrates advantageous resources to actively develop travel services, newretail, financial investments and so on and carry out multi-dimensional industrial layout.Changan automobile always adheres to the mission of "leading the car civilization for the benefit of human life", and theconcept of "energy conservation, environmental protection, scientific and technological intelligence", vigorously develops newenergy and smart cars, guides the automobile civilization by the use of scientific and technological innovation, and providescustomers with high quality products and services. After years of development, the products cover low & middle class, wide rangeand various series such as sedans, mini cars, buses, trucks, SUV, MPV, including the traditional fuel and new energy models, and theengine platforms from 1.0L to 2.0L. The company owns many famous brands such as Changan passenger car, Oushang automobile,Kaicheng automobile, Changan Ford, Changan Mazda, Changan SUZUKI, Changan PSA and so on. Up to now, the company hassuccessfully launched a series of classic brands such as Alsvin, CS series, Eado, Raeton, Oushang and Honor series; a series offamous JV products such as new Focus, new Mondeo, Kuga, Edge, CX-5, Axela,Vitara, Alivio, DS7 and so on. At the same time, wehave launched new energy vehicles such as Eado EV, new Benben EV, and CS15 EV, which are admired by the market and loved bythe consumers.
II. Major changes in assets
1. Major changes in assets
□ Applicable √ Not applicable
No significant changes in major assets during the reporting period
2. Main Overseas Assets
□ Applicable √ Not applicable
III. Core Competence Analysis
Driven by "the third-time entrepreneurship - innovation and entrepreneurship program", Changan Automobile is committed tobecoming a technology enterprise that leads smart travel products and services. It aims at building the world's leading car enterprisedriven by "innovation" with "efficiency" as the core competitiveness of the organization. Changan focuses on promoting the new
energy “Shangri-La” plan, the “Beidou Tianshu” intelligent plan, and the advanced technology promotion plan. It is promoting the
creation of three special platforms for new energy, realizing the industrialization of intelligent driving L2 into the market, and rapidlyrealizing the industrial application of new technologies. In the first half of 2018, the company promoted the development of nearly400 science and technology projects.Great achievements have been made in the reform and development. The company has promoted a matrix management
model based on product development and marketing, and released the product development process CA-PDS4.0. The developmentcycle has been shortened by 17%. "1/2 Project" has steadily went on. Average time of management process has been reduced by 68%,and management efficiency has been greatly improved.A series of new products have been released into the market on schedule. Eight new products, such as the secondgeneration of Eado, Eado DT, new CS75 and COS1°, have been released into the market on schedule. H15TG-AA engine has beensuccessfully launched on the new CS75 as scheduled.The application of advanced technology has increased. The L2 self-driving technology has been successfully launched onCS55, and the APA4.0 (auto parking) has been successfully launched on the new CS75. 82 technical research projects such as Icarplatform and CA-MPA platform have went on smoothly. 10 major technical breakthroughs such as three-level automatic driving, fuelcell and American standard collision regulations have been progressing smoothly and prepared for subsequent products.Opening and cooperation have made progress. Changan has developed three major vehicle platforms, second-generationpower systems and three-in-one electric drive systems, and promoted the building of new energy platform steadily. The company hascooperated with leading Internet companies such as Tencent, Huawei, Keda Xunfei, Horizon and Gaode to build an intelligentautomobile industry alliance. In April 2018, the company obtained the license of Chongqing Autopilot Road Test .
Chapter 4 Business Discussion and Analysis
I. Overview
In the first half of 2018, the automobile industry carried out the decisions of the Communist Party Central Committee and theState Council, insisted on the principle of innovation-driven, open and inclusive, and open to the outside world in an all-round way.With the main line of supply-side structural reform to promote mass entrepreneurship and innovation, the automobile industryaccelerated the transformation and upgrading of the industry, solidly promoted the strategy of empowering the country throughmanufacturing, and promoted the transformation of the industry from scale to quality. From January to June 2018, the production andsales of China's automobile market maintained steady growth. The cumulative production and sales reached 14.085 million and14.066 million, respectively up by 4.2% and 5.6% on a year-on-year basis. The sales growth rate accelerated by 1.8 percentage pointsover the same period of last year. 11.775 million passenger vehicles were sold, up by 4.6% year-on-year over the same period.Among them, the sales of basic passenger car increased by 5.5% and SUV increased by 9.7% year-on-year. Among the new energypassenger vehicles, the production and sales of pure electric passenger vehicles reached 259,000, increasing by 95.9% year-on-yearwith strong development momentum. Industry concentration was further intensified. The sales volume of the top ten enterprises inthe automobile sales totalled 12.517 million, with the growth rate of 6.0%, which was 0.4 percentage points higher than the industrygrowth rate, accounting for 89% of the total vehicle sales and 0.3 percentage points higher than that of last year. The above datacomes from "China automobile industry production and sales express" (China Automobile Industry Association) and its industryinformation release.In the first half of 2018, Changan took "Vision 2025" as the guide and "strengthening efficiency, promoting brand, experienceorientation and innovation breakthrough" as the key, thoroughly implemented "the third-time entrepreneurship - innovation andentrepreneurship program" and solidly promoted the enterprise transforming and upgrading. Changan held strong confidence, stoodup to competition, boldly reformed, generated revenue and reduced costs, and went all out to accomplish various business objectives.In the first half of 2018, Changan sold 1.207 million vehicles, ranking fourth in China's automobile industry. The main achievementsduring the reporting period are as follows:
1. Strongly promote strategic execution and vigorously promote efficiency"The third-time entrepreneurship - innovation and entrepreneurship program" was promoted in an orderly way. The company
was guided by the innovation and entrepreneurship plan and focused on the “1143” strategy to promote the company's key business
strategy decomposition, clarify the development ideas and goals of each business segments, accelerate the decomposition of strategicobjectives, decompose to form a strategic target system and strengthen the key capabilities of product-oriented and resource matching.The company established a business quality improvement matrix project team, vigorously promoted income increase, cost reduction,waste reduction and built system capabilities to ensure efficiency improvement.Changan vigorously promoted reform and innovation. "1/2 Project" was progressed steadily. The company streamlined process,increased the proportion of authorization, and greatly improved operational efficiency. Organizational model continued to beoptimized. Business unit reform was promoted in an orderly manner. Online and offline resources were integrated. Emergingbusiness was actively explored. The matrix transformation in the R&D field achieved initial results and effectively shortened thedevelopment cycle. The reform of marketing field achieved initial success and operating efficiency was improved. The companyinnovated the incentive and restraint mechanism, implemented the whole staff and post matching, and gradually established theposition and salary system which was in line with the market.2. Accelerate brand planning and enrich brand promotion channelsChangan completed the brand architecture design. Based on the upgrading of consumption, Changan optimized its existingbrand structure under the overall strategy of brand upwards and would form four independent business brands, such as mid-to
high-end passenger cars, Changan Automobile, Oushang Automobile and Kaicheng Automobile. Under the combined effect of thematrix, Changan will comprehensively promote the brand upwards, meet different needs to deepen the market segments, provideusers with more focused and perfect products and services, and realize the experience upgrade of users and brands.Changan innovated diversified brand activities, kept up with the trend of the times, focused on technology fashion and innovatedbrand activities. The company exclusive titled Chongqing International Marathon, combined the enterprising corporate image withthe spirit of marathon and delivered brand concept of "driving forward with you". The company entered the field of automobile eventmarketing. These series of competitions not only verified the excellent product quality, but also injected passion, vitality andenterprising brand elements into Changan Automobile.3. The application of intelligent technology is accelerated and the R&D strength continues to be in the leadAdvanced technology was accelerated for application. Intelligent technologies such as APA4.0 have been successfully launchedon the new CS75. L2 self-driving technology has been successfully launched on CS55, and various intelligent technology researchprojects and major technical research projects have been rapidly advanced. In addition, Changan Automobile obtained the license ofChongqing Autopilot Road Test in April 2018 after obtaining the license of California Road Driverless Vehicle Test in November2017, indicating the speed up of Changan in the field of intelligence. In the field of intelligent manufacturing, the stamping andwelding workshop of Changan Automobile Liangjiang No. 2 Factory was recognized as the annual digital workshop and intelligentfactory in Chongqing in 2018. The welding automation rate reached 90%, which was 20% higher than the traditional factory'sproduction efficiency. The product defect rate was reduced by 20%. The delivery cycle was shortened by 15%. The operating costwas reduced by 21% and the intelligent manufacturing capability was in the lead in China.
The intelligent strategy was upgraded. The company formulated the “Beidou Tianshu” plan and build intelligent car platforms in
stages with the support of automatic driving, intelligent network and intelligent interaction. The mass production vehicles will reachL3 in 2020 and L4 in 2025.The R&D strength continues to be in the lead. In the 2017-2018 evaluation of the national-recognized enterprise technologycenter announced by the National Development and Reform Commission, Changan Automobile ranked third in the country and firstin the industry with 96.4 points. The R&D strength ranked first in the China's automobile industry for 10 consecutive years.4. The new energy industry developing smoothly and "Shangri-La" plan gradually taking formThe company established a new energy technology company, integrated relevant functions, built an operation system of newenergy industry chain and built a platform for independent operation and introduction of social capital. At the same time, thecompany will continue to explore innovative business models and strive to explore new energy profit paths.The company improved product planning. Changan defined the development plan for new energy products for passenger cars,and formulated a two-step strategy of entering the industry's first echelon (350,000 units) in 2020 and achieving one of the top twobrands (1.16 million units) in China in 2025. The company will promote key technology development, enhance core technologycapabilities and complete the three new energy vehicle platform by 2020.5. Accelerate the integration of global resources and continue to explore emerging businessesThe company has reached strategic cooperation with more than ten industry leaders such as Tencent, Huawei, Baidu, WeilaiAutomobile, Keda Xunfei, Intel, NXP and Alibaba, and launched a new model of integrated innovation to create a new highland fortechnological innovation. Changan Automobile's "Changan trip" Internet + intelligent travel platform has invested more than 6000vehicles in Chongqing, Nanjing, Hefei, Hangzhou, Xiamen and Quanzhou. At present, the platform is running on time-based leasing,long-term and short-term rental business. It plans to complete the operation of 10,000 vehicles in 2018. It is expected to reach 40cities and 50,000 vehicles in 2020. The company accelerated the integration of new energy resources and industrial chain layout,cooperated with BYD to develop new energy battery technology, established a joint venture with Zhidou to produce low-speedelectric vehicles, built a pure electric platform with Weilai, and jointly promoted T3 with FAW and Dongfeng.6. Increase marketing reform efforts to help Changan transform and upgradeChangan Automobile has experienced the rapid growth in the past two decades. Under the background of complex changes in
the automobile industry, the company faces the challenges of the new industry transformation period of Internet, intelligence and newenergy. Changan is currently in a painful period of strategic transformation in terms of product structure, enterprise structure and newbusiness model adjustment. In face of increasingly fierce competition in the automobile market, on the one hand, ChanganAutomobile takes efficiency as the core to further optimize the management system and reform and innovation, enhances the abilityand vitality to cope with the changes of the industry and market competition. On the other hand, it launches an all-round marketingbattle, adheres to market-oriented and customer-centered, accurately grasps the customer pain points, and continuously optimizesmarketing mode around customers and value creation. Changan carried out marketing promotion actions to increase market responsespeed, increased investment in sales resources to promote sale, strengthened efforts in channel construction and formulateddifferentiated channel development strategies. The customer operating efficiency was gradually improved, and complaint satisfactionrate reached industry's leading level. It sped up the development of new marketing businesses and innovated models for profitopportunities.Changan Automobile will take the four strategic measures of "Changan brand promotion and development, integration ofresources development, construction of marketing innovation model, overseas market exploitation" as the grasp to comprehensivelypromote "The third-time entrepreneurship - innovation and entrepreneurship program". Changan formed a clear brand structure to
achieve brand upward and transform from “operating products” to “operating brands”. Focusing on fast, accurate, interactive anddirect, Changan upgrades its customer service capabilities in full value chain and transforms from “serving users” to “operatingcustomers”. Changan builds an innovative marketing model, operating a new business model such as operating the ecosystem,
operating customers, developing e-commerce, sharing travel, time-sharing lease, and used cars, to transform from "providingproducts + services" to "providing products + service products + travel solutions". Changan promotes the intelligent strategy of"Beidou Tianshu" to become a leader of smart cars, accelerates the development of new energy resources with "Shangri-La" plan asits guide, cooperates with cross-border enterprises strategically to form a new energy ecosphere, creating the safest, most convenientand most intelligent experience, and transforms from "traditional products" to "intelligent + new energy products".
II. Analysis of Main Business
1. Overview
Are they identical with those disclosed in the "I. Overview" in the Chapter of Business Discussion and Analysis?
√ Yes □ No
Please refer to the content of "I. Overview" in the Chapter of Business Discussion and Analysis.
2. Y-o-y changes of main financial data
In RMB Yuan
Current period | Same period of last year(restated) | Y-o-y increase/decrease | Reasons for changes | |
Operating revenue | 35,642,832,190.04 | 33,555,213,109.46 | 6.22% | |
Operating cost | 30,614,845,704.45 | 28,792,755,690.32 | 6.33% | |
Operating expenses | 2,543,462,428.51 | 2,004,176,042.01 | 26.91% | |
General and administrative | 2,155,401,262.05 | 1,785,734,071.11 | 20.70% |
expenses | ||||
Financial expenses | -225,518,842.31 | -246,821,602.15 | 8.63% | |
Income tax expense | 15,288,317.83 | 40,996,104.66 | -62.71% | Increase in deferred income tax assets and decrease in current income tax expenses |
Subtotal of cash inflow from operating activities | 4,401,401,760.15 | 4,959,704,724.11 | -11.26% | |
Subtotal of cash inflow from investment activities | -2,973,370,521.87 | 3,237,426,642.84 | -191.84% | Mainly due to the decrease in cash received from the investment income, the decrease in cash received from other investment activities and the increase in cash for the acquisition of long-term assets |
Subtotal of cash inflow from financing activity | 869,502,774.20 | -4,406,635,181.43 | 119.73% | Mainly due to the decrease in cash paid for repayment of debts and the decrease in cash paid for dividend distribution |
Net increase in cash and cash equivalents | 2,316,338,311.36 | 3,815,834,313.15 | -39.30% | Mainly due to the decrease in cash inflow from operating activities and investment activities |
Major changes on profit composition or profit resources in reporting period
□ Applicable √ Not applicable
3. Composition of Main Business
In RMB Yuan
Operating revenue | Operating cost | Gross profit | Increase or decrease of operating revenue y-o-y | Increase or decrease of operating cost y-o-y | Increase or decrease of gross profit y-o-y | |
According to industries | ||||||
Production | 34,440,982,013.45 | 30,172,410,492.58 | 12.39% | 5.59% | 5.77% | Down 0.16% |
According to products | ||||||
Vehicles | 34,368,280,256.20 | 30,082,686,676.78 | 12.47% | 5.61% | 5.87% | Down 0.22% |
According to region | ||||||
China | 33,128,902,612.24 | 28,783,568,072.99 | 13.12% | 3.72% | 3.44% | Down 0.24% |
III. Analysis of non principal business
□ Applicable √ Not applicable
IV. Assets and liability
1. The significant changes of the assets and liability
In RMB Yuan
Item | Current period | Same period of last year | decrease (%) | YoY change (%) | ||
Amount | Ratio in total assets(%) | Amount | Ratio in total assets(%) | |||
Monetary capital | 24,067,745,140.49 | 23.97% | 27,882,391,375.71 | 25.99% | -2.02% | |
Accounts receivable | 1,925,729,920.41 | 1.92% | 1,900,029,553.88 | 1.77% | 0.15% | |
Inventory | 4,726,421,476.59 | 4.71% | 10,765,993,986.86 | 10.04% | -5.33% | The ending balance of inventory and its proportion of total assets decreased year-on-year mainly attributed to the optimization of auto sales finance mode and the reduction of the inventory from cooperative financial institutions |
Investment property | 7,442,917.06 | 0.01% | 7,669,628.62 | 0.01% | 0.00% | |
Long-term equity investment | 15,638,035,950.97 | 15.57% | 14,116,985,988.70 | 13.16% | 2.41% | |
Fixed assets | 18,456,584,832.13 | 18.38% | 15,652,944,713.96 | 14.59% | 3.79% | |
Construction in progress | 4,728,241,031.94 | 4.71% | 4,054,053,618.83 | 3.78% | 0.93% | |
Short-term loan | 186,000,000.00 | 0.19% | 188,810,327.67 | 0.18% | 0.01% | |
Long-term loan | 0.00 | 0.00% | 19,980,912.00 | 0.02% | -0.02% |
2. Assets and liabilities measured by fair value
Unit: Ten Thousand Yuan
Item | Amount at year beginning | Comprehensive income in the reporting period | Cumulative fair value change | Impairment provisions in the | Purchasing amount in the reporting | Selling amount in the | Amount at year end |
recorded into equity | reporting period | period | reporting period | ||||
Financial assets | |||||||
Financial assets available for sales | 16,436.50 | -2,353.65 | 9,672.57 | 13,667.50 | |||
Subtotal of financial assets | 16,436.50 | -2,353.65 | 9,672.57 | 13,667.50 | |||
Total | 16,436.50 | -2,353.65 | 9,672.57 | 13,667.50 |
Whether the measurement attributes of main assets in the reporting period have significantly changed
□ Yes √ No
3. Property rights limits by the end of report period
In RMB Yuan
Item | book value at the end of this year | Limited Reason |
Monetary fund | 300,101,738.60 | Acceptance bond |
Notes receivable | 545,823,326.93 | Pledge for issuing bills payable |
Fixed assets | 239,422,583.95 | Mortgage loans and obtain the amount of commercial acceptance |
Intangible assets | 45,835,735.69 | Mortgage loans and obtain the amount of commercial acceptance |
Total | 1,131,183,385.17 |
V. Analysis of Investment
1. General information
√ Applicable □ Not applicable
External investment | ||
Investment Amount in the report period(Yuan) | Investment Amount in the same period of last year(Yuan) | Variance rate |
2,198,000,000 | - | |
Particulars of investees | ||
Company Name | Principal business | Proportion in the investees’ equity (% |
Changan PSA Automobiles Co., Ltd | Design, manufacture and sale of Peugeot, Citroen and DS brand cars and light commercial vehicles | 50% |
China Automotive (Beijing) intelligent network union Automotive Research Institute Co., Ltd. | Engineering and technical research and experimental development; product design, industrial design; technical development, consultation, promotion, services, transfer; sales of machinery and equipment, hardware and electrical, electronic products, electronic components; import and export of goods, technology import and export, import and export agent; technical testing, property management | 8.33% |
Beijing Wutong Chelian Technology Co., Ltd. | Technical development, technical consultation, technical services, technology transfer; economic and trade consultation; design, production, agency, advertising; import and export of goods, technology import and export; sales of self-developed products | 49% |
Changan Automobile Russia Co., Ltd. | Automobile and parts import and export, automobile distribution and other services | 100% |
2. Major equity investment in the reporting period
√ Applicable □ Not applicable
Company name | Principal business | Investment mode | Investment amount | Share-holding ratio | Capital source | Partner | Investment period | Progress on book closing date | Any litigations | Disclosure date(in case) | Disclosure index(in case) |
Changan PSA Automobiles Co., Ltd | Design, manufacture and sale of Peugeot, Citroen and DS brand cars and light commercial vehicles | Increasing capital | 1,800,000,000 | 50% | Its own capital | PSA Peugeot Citron | Indefinite duration | Capital increase not completed, industrial and commercial registration procedures not completed | No | 2018-01-13 | Announcement on Related Transactions of Capital Increase to Changan Peugeot Citroen Automobile Co., Ltd. (Bulletin No: 2018-03) |
China Automotive (Beijing) intelligent network union Automotive Research Institute Co., | Engineering and technical research and experimental development; product design, industrial | established | 50,000,000 | 8.33% | Its own capital | China First Automobile Co., Ltd., Dongfeng Motor Group Co., Ltd., Guangzhou Automobile | Indefinite duration | Establishment completed, industrial and commercial registration procedures completed | No | 2018-04-04 | Announcement of the 29th Meeting of the 7th Board of Directors of Chongqing Changan Automobile |
Ltd. | design; technical development, consultation, promotion, services, transfer; sales of machinery and equipment, hardware and electrical, electronic products, electronic components; import and export of goods, technology import and export, import and export agent; technical testing, property management | Group Co., Ltd., Beijing Automotive Research Institute Co., Ltd., Zhengzhou Yutong Bus Co., Ltd., Jiangling Motors Corporation, Zhejiang Asia Pacific Mechanical and Electrical Co., Shanghai Baolong Automobile Technology Co., Ltd., Huizhou Desai Xiwei Automotive Electronics Co., Ltd., China Automotive Technology Research Center Co., Ltd., Enlighten Cloud Control (Beijing) Technology Co., Ltd. | Company Limited (Bulletin No: 2018-13) | ||||||||
Beijing Wutong Chelian Technology Co., Ltd. | Technical development, technical consultation, technical services, technology | established | 98,000,000 | 49% | Its own capital | Tencent Landway (Shenzhen) Technology Co., Ltd. | Indefinite duration | Establishment completed, industrial and commercial registration procedures | No | 2018-04-12 | Announcement of the 31st Meeting of the 7th Board of Directors of Chongqing Changan |
transfer; economic and trade consultation; design, production, agency, advertising; import and export of goods, technology import and export; sales of self-developed products | completed | Automobile Company Limited (Bulletin No: 2018-18) | |||||||||
Changan Automobile Russia Co., Ltd. | Automobile and parts import and export, automobile distribution and other services | Increasing capital | 250,000,000 | 100% | Its own capital | - | Indefinite duration | The approval of the Ministry of commerce is required | No | 2018-05-07 | Announcement of the 33st Meeting of the 7th Board of Directors of Chongqing Changan Automobile Company Limited (Bulletin No: 2018-27) |
Total | -- | -- | 2,198,000,000 | -- | -- | -- | -- | -- | -- | -- | -- |
3. Major non-equity investment in the reporting period
Please refer to Notes 7 Item 13 “Construction in progress” in the Financial Statement.
4. Investment of Financial Assets(1)Equity-holdings in financial enterprises
√ Applicable □ Not applicable
Company name | Company variety | Initial investment cost (Yuan) | Holdings (share) | holding ratio | holdings (share) | Holdings (%) | Closing book value (Yuan) | Gain/loss in the reporting period (Yuan) | Accounting title | Equity source |
(%) | ||||||||||
Southwest Securities | Securities Firm | 50,000,000 | 35,500,000 | 0.63% | 35,500,000 | 0.63% | 136,675,000 | - | Tradable financial assets | Initial investment |
(2) Derivative Investments
□ Applicable √ Not applicable
5. Use of raised funds
□ Applicable √ Not applicable
VI. Selling of major assets and major equity
1. Selling of major assets
□ Applicable √ Not applicable
There is no selling of major assets.
2. Selling of Equity
□ Applicable √ Not applicable
There is no selling of major equity.
VII. Analysis of main holding companies and equity companies
√ Applicable □ Not applicable
Basic information of main subsidiary companies and shareholding companies which have an impact on over 10% of net profits
Unit: Ten Thousand Yuan
Name | Registered capital | Equity held | Main businesses | Total assets | Main operating income | Net profit |
Hebei Changan Automobile Co., Ltd. | 46,469 RMB | 94.22% | Produce and sell auto and parts | 186,259 | 211,401 | 3,405 |
Nanjing Changan Automobile Co., Ltd. | 60,181 RMB | 84.73% | Produce and sell auto and parts | 168,548 | 101,652 | 9,840 |
Hefei Changan Automobile Co., Ltd. | 77,500 RMB | 100% | Produce and sell auto and parts | 261,293 | 200,943 | -3,933 |
Baoding Changan Bus Manufacture Co., Ltd. | 3,000 RMB | 100% | Produce and sell auto and parts | 346,553 | 175,808 | 1,125 |
Changan PSA Automobiles Co., Ltd | 400,000 RMB | 50% | Produce and sell auto and parts | 747,028 | 45,749 | -34,346 |
Changan Ford Automobile Co., Ltd | 24,100 USD | 50% | Produce and sell auto and parts | 4,317,868 | 3,064,316 | 174,711 |
Changan Mazda Automobile Co., Ltd | 11,097 USD | 50% | Produce and sell auto and parts | 1,503,100 | 1,106,517 | 127,090 |
Subsidiaries acquired and sold in the reporting period
√ Applicable □ Not applicable
During the reporting period, Changan newly established four wholly owned subsidiaries, Xiamen Changan New EnergyAutomobile Sales & Service Co., Ltd., Guangzhou Changan New Energy Automobile Sales & Service Co., Ltd., Fuzhou FuqingChangan New Energy Automobile Sales & Service Co., Ltd. and Chongqing Changan New Energy Automobile Technology Co., Ltd..Therefore, they are included in the consolidated statements in 2018. Shanghai Changan Automobile Engineering Technology Co., Ltd.was liquidated during the reporting period. Therefore, it is no longer included in the consolidated statements in 2018.
Name | Acquisition and disposal of subsidiaries during the reporting period | On the overall production and operation and performance impact |
Xiamen Changan New Energy Automobile Sales & Service Co., Ltd. | Newly established | None |
Guangzhou Changan New Energy Automobile Sales & Service Co., Ltd. | Newly established | None |
Fuzhou Fuqing Changan New Energy Automobile Sales & Service Co., Ltd. | Newly established | None |
Chongqing Changan New Energy Automobile Technology Co., Ltd. | Newly established | None |
Shanghai Changan Automobile Engineering Technology Co., Ltd. | Liquidation | None |
VIII. Structural main business under the company control
□ Applicable √ Not applicable
IX. Forecast for the operating performance of Jan.-Sep. 2018
The accumulated net profit forecast for the beginning of the year to the end of the next reporting period may be a loss or a warningand explanation of a significant change compared with the same period of the previous year
□ Applicable √ Not applicable
X. Possible risks and coresponding measures
1. Policy and regulatory risks: the implementation of emission laws and regulations, the relaxation of share ratio, tariff adjustmentand the tightening of control over the excessive pollutants have a great impact on the development and pattern of the automobileindustry.Actions: keep up with policy trends, strengthen policy research, and make good response plans.2. Increasing market competition: China's auto market has entered a low-speed growth trend. Regardless of joint ventures orindependent products, they are seriously homogenized, especially for cars and SUVs of 70-150 thousand yuan, with a productconcentration of 45%.Actions: accelerate the speed of product replacement, highlight the individualization and differentiation of products, rapidly increasethe market scale of independent products, and grasp the strategic opportunities of "the Belt and Road", actively expand overseas
markets, and enhance the competitiveness of the international market.3. Business model risks: with the rapid development of technologies such as smart interconnection and big data, various capitalssuch as speculative capital, non-industrial capital, and cross-border capital have flooded into the industry, disrupted the industry,caused disorder competition in the market and changed the traditional business model.Actions: Changan Automobile will seize the strategic opportunity and realize the transformation from a traditional automobilemanufacturing enterprise to a modern technology service enterprise and become an internationally competitive Chinese brand.
XI. Interviews and visits in the reporting period
√ Applicable □ Not applicable
Date | Manner | Object | Content discussed and material offered |
2018.1.4 | On-Site Survey | Institution | For details, see the January 5, 2018 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: January 4, 2018 investor relations activities record sheet |
2018.1.11 | On-Site Survey | Institution | For details, see the January 15, 2018 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: January 11, 2018 investor relations activities record sheet |
2018.1.17 | On-Site Survey | Institution | For details, see the January 19, 2018 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: January 17, 2018 investor relations activities record sheet |
2018.1.18 | On-Site Survey | Institution | For details, see the January 19, 2018 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan automobile: February 18, 2018 investor relations activities record sheet |
2018.1.24 | On-Site Survey | Institution | For details, see the January 25, 2018 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: January 24, 2018 investor relations activities record sheet |
2018.1.26 | On-Site Survey | Institution | For details, see the January 30, 2018 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: January 26, 2018 investor relations activities record sheet |
2018.2.12 | On-Site Survey | Institution | For details, see the February 13, 2018 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: February 12, 2018 investor relations activities record sheet |
2018.3.6 | On-Site Survey | Institution | For details, see the March 8, 2018 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: March 6, 2018 investor relations activities record sheet |
2018.3.8 | On-Site Survey | Institution | For details, see the March 12, 2018 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: March 8, 2018 investor relations activities record sheet |
2018.3.13 | On-Site Survey | Institution | For details, see the March 16, 2018 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: March 13, 2018 investor |
relations activities record sheet | |||
2018.3.15 | On-Site Survey | Institution | For details, see the March 19, 2018 Shenzhen stock exchange interactive (http://irm.cninfo.com.cn) on the Changan Automobile: March 15, 2018 investor relations activities record sheet |
Chapter 5 Important Matters
I. Annual shareholders meeting and interim shareholders meeting during the reportingperiod
1. Shareholders meeting during the reporting period
Meeting Session | Type | Investors' participation ratio | Holding Date | Disclosure Date | Disclosure Index |
2017 Annual Shareholders Meeting | Annual | 57.32% | May, 18th, 2018 | May, 19th, 2018 | 2017Annual Shareholders Meeting Resolution Announcement(Announcement Number: 2018-34) |
2018 The First Interim Shareholders Meeting | Interim | 44.44% | Jan, 30th, 2018 | Jan, 31th, 2018 | 2018 The First Interim Shareholders Meeting Resolution Announcement(Announcement Number: 2018-07) |
2. Preferred shareholders’ request to hold the interim shareholders meeting with restoration of voting
rights
□ Applicable √ Non-applicable
II. Preplan for Company common stock profit distribution and capital reserves convertinginto share capital in the reporting period
□ Applicable √ Non-applicable
III. Commitments that company, shareholders, actual controllers, the acquirer, directors,supervisors and senior management personnel or other affiliated parties during the reportperiod fulfilled and by the end of report period not yet fulfilled.
commitments | Commitment entity | Commitment content | Commitment time | period for commitment | Performance |
Share limited commitment | China Changan | When the company non-publicly subscribes for | Oct., 2016 | 36 months | China Changan did not sell company shares during the reporting period |
new shares of listed companies in 2016, the newly acquired shares of listed company can not be transferred within 36 months since the listing, but can be transferred after 36 months according to relevant provisions of China Securities Regulatory Commission and Shenzhen Stock Exchange. | |||||
Other small shareholders commitment | China Changan | In order to avoid and eventually solve the possible competition or potential competitors, better maintain the interests of investors, the company controlling shareholder China Changan made the commitment: In two consecutive years profit of Harbin Hafei Automobile Industry Group Co, With the continuous development ability and management level is improved significantly.Under such condition, the enterprise will be affiliated into the company. | September, 2010 | The Harbin Hafei Automobile Industry Group Co at present is still running at a loss, The conditions have not yet reached the profitable for two consecutive years. |
IV. The appointment and dismissal of accounting firms
Is the semi-annual financial report audited?
□ Yes √ No
V. The board of directors, and supervisors explaining the "non standard audit report" fromthe accounting firm during the reporting period
□ Applicable √ Not-applicable
VI. The board of directors explaining the "non standard audit report" of last year
□ Applicable √ Not-applicable
VII. Bankruptcy restructuring related matters
□ Applicable √ Not-applicable
During the report period, no bankruptcy restructuring related matters occur.
VIII. Crucial litigation events
Crucial litigation and arbitration events
□ Applicable √ Not-applicable
Other litigation events
□ Applicable √ Not-applicable
IX. Punishment and rectification
□ Applicable √ Not-applicableDuring the reporting period, there’s no punishment and rectification.
X. The integrity of company and its controlling shareholder, actual controller
□ Applicable √ Not-applicable
XI. Company equity incentive plan, the implementation of the employee stock ownership planor other staff incentives.
√ Applicable □ Not-applicableAt the 30th meeting of the 7th board of directors, 《A bill to cancel some stock options of the Company》was deliberated andpassed on Apr 17th, 2018, and 10,826,600 stock options would be cancelled. For details, please refer to 《The announcement ofcancellation about some stock options of the company》(Announcement Number: 2018-23) on Apr 18th, 2018. On May 24th, 2018,the company disclosed 《Notice on the completion of cancellation about some stock options》(Announcement Number: 2018-35),
according to relevant regulations, the company applied to the shenzhen branch of China securities registration and settlement co.,LTD for the cancellation of stock options and completed the cancellation procedures.
XII. Significant related party transactions
1. Related transactions related to day-to-day operation
For details, please refer to Note 12 "Related Party Relationships and Transactions" in the Financial Statements.
2. Assets or equity acquisition, sales related transactions
□ Applicable √ Not-applicable
No related transaction of the acquisition or sale of assets or shares occurred during the reporting period.
3. Related transactions of common investment
□ Applicable √ Not-applicable
During the reporting period, the company has no related transactions of common investment
4. Related rights and debt relations
√ Applicable □ Not-applicable
For details, please refer to Note 12 "Related Party Relationships and Transactions" in the Financial Statements.Whether there is any non-business related credits and debts
□ Applicable √ Not-applicable
There is no non-operating associated credits and debts during the reporting period.
5. Other significant related transactions
√ applicable □ not applicable
Related queries in disclosure website of temporary announcement of related transactions
XIII. The non-operating occupation for the capital by the controlling shareholder of thelisted company and its related parties
□ Applicable √ Not-applicable
Name of temporary announcements | Temporary announcement date | Temporary announcement site name |
Announcement about related transaction of replenishment chang 'an Peugeot Citroen automobile co., LTD | Jan, 13th, 2018 | http://www.cninfo.com.cn |
Related Transactions Announcement about approving of United Prosperity (Hong Kong)Investment Co., Ltd trade financing | Apr, 4th, 2018 | http://www.cninfo.com.cn |
Related transactions announcement about renewing 《Daily Framework Agreement For Related Transactions》、《Property Leasing Framework Agreement》、《Integrated Service Agreement》 | Apr, 4th, 2018 | http://www.cninfo.com.cn |
Announcement about increasing estimated amount of 2018 daily related transaction | Apr, 18th, 2018 | http://www.cninfo.com.cn |
Related Transactions Announcement that China South Industries Group Co., Ltd. provides financial service for the company | May, 7th, 2018 | http://www.cninfo.com.cn |
Related transaction announcement thet Chongqing Automobile Finance Co., Ltd. provides financial services | May, 7th, 2018 | http://www.cninfo.com.cn |
XIV. Major contract and its performance
1. Trusteeship, contracting, leasing matters
(1) Trusteeship
□ Applicable √ Not-applicable
Information about TrusteeshipThere is no Trusteeship during the reporting period.(2) Contracting
□ Applicable √ Not-applicable
Information about contractingThere is no contracting during the reporting period.(3) Leasing
√ Applicable □ Not-applicable
Information about leasingRelated party rental situation can be found in the note 12 of financial statements 4 (3) related party relationships and transactions.Projects whose profit and loss to the company during the reporting period is more than 10% of total profits
□ Applicable √ Not-applicableProjects whose profit and loss to the company during the reporting period can’t be more than 10% of total profits
2. Major guarantee
□ Applicable √ Not-applicableThere’s no major guarantee during the report period.
3. Other major contract
□ Applicable √ Not-applicableThere’s no other major contract during the reporting period.
XV. Social responsibility
1. Significant environmental protection
Whether the listed companies and their subsidiaries belong to the key pollutant discharge units announced by the environmentalprotection department
√ Yes □ No
Changan Automobile mainly produces engines and automobiles. The main pollutants are chemical oxygen demand, ammonianitrogen, total nickel, toluene, xylene and non-methane hydrocarbon,etc. All departments put pollution control facilities as well asproduction equipment into preventive maintenance management of equipment with normal operation, pollutant discharge up tonormal standard, and the total amount of discharged key pollutant is confined with the total amount of indicators. Solid wastes areseparately collected and stored. Main dangerous wastes are wastewater and sludge treatment, paint slag, phosphated residue and
waste solvent, etc. The units with hazardous waste business qualification are entrusted to dispose hazardous wastes. The generalindustrial solid wastes and household garbage are disposed by the units with qualification according to the requirement of the localgovernment. The waste electrical and electronic products are disassembled by the units with qualification and are safely disposed bythe units with hazardous waste business qualification.
(1) Strictly implement Disclosure System of InformationIn the first half of 2018, Key sewage units of Changan Automobile: Yuzui Base of OuShang Automotive Division, Yuzui Base ofJiangbei Engine Factory, Yubei Factory, Beijing Changan, Hefei Changan, Nanjing Changan. The original national controlunits(Yuzui Base of OuShang Automotive Division, Yuzui Base of Jiangbei Engine Factory, Yubei Factory) strictly carry outself-monitoring in accordance with the "National Key Monitoring Enterprise Self-monitoring and Information Disclosure Approach(Trial)". Self-monitoring program, monitoring results, pollution monitoring annual reports are disclosed on the "National KeyMonitoring Enterprise Self-monitoring and Information Disclosure Platform". Other key sewage units disclosed the informationaccording to the requirements of environmental protection departments of local governments.
(2) Strictly implement "EIA system" and environmental protection "three simultaneous" systems of the constructionproject
Carry out the company's environmental impact assessment of “newly established, rectified, expanded projects” and
implement"EIA system" of the construction project according to the regulations. Strengthen the review on pollutant factors, the totalamount of emission and pollution control facilities during the environmental impact assessment. Strictly supervise the
implementation of “simultaneous design, simultaneous construction, and simultaneous acceptance” of project environmental
protection facilities to ensure full compliance between project construction and environmental impact assessment approval. In thefirst half of 2018, the Company obtained "New Energy Electric Drive Assembly System Project EIA Approval",and completed the
EIA acceptance about Dianjiang Test Site Project(Phase II)、PDC Project(Phase I)、Passenger Car Project.
(3) Carry out environmental protection risk management, and enhance emergency response capacity
Continue to carry out environmental protection emergency drills to enhance the response capacity to environmental emergencies.In the first half of 2018, the Company carried out a company-level environmental emergency drills(emergency drill for passengervehicle wastewater discharge exceeding standard in Yuzui), more than 80 emergency drills at the factory and workshop. The scenesettings, emergency handling, impact range, exercise script, evaluation and other aspects have been greatly improved.
Strengthen control of company's environmental risk units to prevent sudden environmental incidents.
(4) Detailed pollutant discharge of the company:
During the reporting period, the Company had 216 air pollutant discharge ports and 14 water pollutant discharge ports. The
implemented emission standards include the national "Integrated Wastewater Discharge Standard", Beijing "Water PollutantDischarge Standard", the national "Air Pollutant Integrated Emission Standard", Chongqing "automobile vehicle manufacturingsurface coating air pollutant discharge standards" "Air Pollutant Integrated Emission Standard", Beijing "automobile vehiclemanufacturing industry (coating process) air pollutant discharge standards", the national "industrial enterprises boundaryenvironmental noise emission standards" and so on. The total amount of pollutants approved: COD170 tons, 28 tons of ammonia.The company's pollutants can meet the corresponding emission standards with no extral emissions, no major environmental problemsand no rectification.
In 2018, the company intended to implement the emission reduction measures with the investment of 145 million yuan. Themain projects include: Nanjing Changan, Changan Bus Light Vehicle VOC Project; Changan Ford Chongqing Factory CAF2/3 VOCGovernance Project(Phase II); Yubei Factory, Oushang Automotive Division, Beijing Changan Sludge Drying Project.
2. Fulfill social responsibility of targeted poverty alleviation
√ Applicable □ Not applicable
In the first half of 2018, Changan Automobile actively responded to the "13th Five-Year Plan for Poverty Alleviation" and fullyimplemented the spirit of the 19th Party Congress and the Central Poverty Alleviation Work Conference. In accordance with thearrangements of the Party Central Committee and the State Council, and in light of the actual situation of enterprises, we willearnestly promote donations such as precise poverty alleviation, public welfare relief, and public utility construction, and strive topromote economic and social development in poverty-stricken areas.(1) In the first half of 2018, precise poverty alleviation in "two counties" of YunnanThe company donated RMB 11 million to Luxi County.On education poverty alleviation projects: firstly, invest 2 million yuan to improve the teaching facilities of Santang TownJunior Middle School; secondly, invest 1.77 million yuan to build Changan Automobile (Luxi) Training Base Project (Phase II).On the poverty alleviation project of people's livelihood: invest 7.23 million yuan to build a rural domestic garbage collectionand transportation facility project in Luxi County.The company donated RMB 11 million to Yanshan County.On the industrial poverty alleviation project: firstly, invest 2.5 million yuan to build an apple planting project in Ashe Township;secondly, invest 2 million yuan to build SanQi planting project in Panlong Township; thirdly, invest 1 million yuan for thecommercial cattle breeding project in Weimo Township; finally, invest 1 million yuan in the pepper planting project in GanheTownship.On education poverty alleviation projects: firstly, invest 2 million yuan for the construction of the student dormitory building inAwenzhai Primary School; secondly, invest 1.4 million yuan for the student loan program.On the poverty alleviation project of people's livelihood: firstly, invest 1 million yuan in township hospitals equipmentconfiguration project; secondly, invest 100,000 yuan in disaster relief projects.(2) In the first half of 2018, precise poverty alleviation in Pengshui County, Chongqing.According to the "Notice of the Chongqing Municipal Development and Reform Commission's Leading Group for PovertyAlleviation on Carrying out Donation Assistance and Reporting Poverty Alleviation Materials"( Yu Development and ReformCommission of the Poverty Alleviation Group issued [2018] Document No. 2), Changan Automobile donated 300,000 yuan toPengshui County.
Chang'an Automobile Statistics on Poverty Alleviation in the first half of 2018
Index | Unit | Quantity / Details |
Ⅰ. Total | —— | —— |
1.funds | 10 thousand RMB | 2230 |
2. Material | 10 thousand RMB | —— |
Ⅱ. Subdivision | —— | —— |
1. Industrial poverty alleviation | —— | —— |
1.1 Industrial poverty alleviation project type | —— | 1) Apple Planting Project in Ashe Township; 2) Sanqi Planting Project in Panlong Township; 3) Cattle Breeding Project in Weimo Township; 4) Pepper Planting Project in Ganhe Township. |
1.2 Industrial poverty alleviation project investment funds | 10 thousand RMB | 650 |
2. Education poverty alleviation | —— | —— |
2.1 Funding for poor students | 10 thousand RMB | 140 |
2.2 Improve educational resources in poor areas | 10 thousand RMB | 577 |
(3) Follow-up precision poverty alleviation planAccording to the "Notice of the Jiangbei Agricultural Committee of Chongqing on Applying the 2018 CounterpartmentAssistance Project" (Jiangbei Agricultural Committee [2018] No. 128) , the company will carry out poverty alleviation donations forYouyang County in the second half of 2018.
XVI. Other important matters
√ Applicable □ Not applicable
On Mar. 16th, 2018, the company disclosed 《Chongqing Changan Automobile Co., Ltd. announcement on the free transfer ofstate-owned shares of controlling shareholders》(Announcement Number: 2018-11). The controlling shareholder of the company——
China Changan Automobile Group Co., Ltd. intends to transfer about 1,035,312,673 shares of Changan Automobile (accounting for21.56% of the total share capital) to China South Industries Group Co., Ltd. without charge.
On May 31th, 2018, the company disclosed《Announcement of Chongqing Changan Automobile Co., Ltd. on the free transfer ofthe controlling shareholder's state-owned shares approved by the SASAC》(Announcement Number: 2018-39). On Jun 21th, 2018,the company disclosed《Announcement on the completion free transfer of controlling shareholders' state-owned shares》
(Announcement Number: 2018-42) and confirmed the transfer registration process of the above-mentioned free transfer of shares onJun 15th, 2018.
XVII. Important matters of company subsidiaries
□ Applicable √ Not-applicable
3. Medical and health poverty alleviation | —— | —— |
3.1 Medical and health resources invested in poverty areas | 10 thousand RMB | 110 |
4. Other projects - people's livelihood poverty alleviation | —— | —— |
4.1 Amount of investment | 10 thousand RMB | 753 |
Chapter 6 Changes in the shareholding of the company and
shareholders
I. Change in shareholdings
1. Change in shareholdings
Unit: one share
Balance before current change | Addition and deduction(+,-) during change | Balance after current change | |||||||
Quantity | (%) | Additional issued | Stock dividend | Provident fund transfer | other | Quantity | (%) | Quantity | |
Non-circulated shares | 139,781,303 | 2.91% | 139,781,303 | 2.91% | |||||
1. State-owned legal person shares | 139,762,403 | 2.91% | 139,762,403 | 2.91% | |||||
2. Senior management personnel shares | 18,900 | 0.00% | 18,900 | 0.00% | |||||
Circulated shares | 4,662,867,208 | 97.09% | 4,662,867,208 | 97.09% | |||||
1. Domestic listed RMB shares | 3,760,881,066 | 78.31% | 3,760,881,066 | 78.31% | |||||
2. Domestic listed foreign shares | 901,986,142 | 18.78% | 901,986,142 | 18.78% | |||||
Total shares | 4,802,648,511 | 100.00% | 4,802,648,511 | 100.00% |
Reason of stock changes
□ Applicable √ Not-applicable
Approval of stock changes
□ Applicable √ Not-applicable
Ownership transfer of stock change
□ Applicable √ Not-applicable
The influence of share changes on financial indicators, such as the latest year and the latest basic earnings per share anddiluted earnings per share, the net assets per share belonging to the common shareholder of the company
□ Applicable √ Not-applicable
Other contents which the company regards necessary and securities supervising institution requires the Company to disclose
□ Applicable √ Not-applicable
2. Change in Non-circulated shares
√ Available □ Not-available
Unit: one share
Name of shareholders | Non-circulated shares held at the year-beginning | Decrease during the reporting period | Increase during the reporting period | Non-circulated shares held at the year-end | Reason for non-circulated shares | Date for the circulated shares |
China Changan Automobile Co., Ltd. | 139,762,403 | - | - | 139,762,403 | Non-public offering shares of 139,762,403 in 2016 | 2019-10-14 |
Zhu Huarong | 18,900 | - | - | 18,900 | Executive lock stocks | 6 months after the retirement |
Total | 139,781,303 | - | - | 139,781,303 | -- | -- |
II. Issuing and listing of securities
□ Applicable √ Not-applicable
III. Shareholding and shareholders of the company
Unit: one share
At the end of the report period, the total number of shareholders | 196,868. A shareholders: 168,019. B shareholders: 28,849. | ||||||||
Holding more than 5% of the shareholders, or top 10 shareholders situation | |||||||||
Name of shareholders | Nature of Shareholders | (%) | Shares held at the year-end | Increases and decreases during the report period | Non-circulated shares held at the year-end | Circulated shares held at the year-end | Pledged/ Frozen cases | ||
Share status | amount | ||||||||
China South Industries Group Co., Ltd. | State-owned legal person shares | 21.56% | 1,035,312,673 | 1,035,312,673 | No pledge or freeze | ||||
China Changan Automobile Co., Ltd. | State-owned legal person shares | 19.33% | 928,044,946 | -1,035,312,673 | 139,762,403 | 788,282,543 | No pledge or freeze | ||
China securities finance Co, Ltd | domestic general legal person shares | 4.55% | 218,580,149 | 16,535,328 | No pledge or freeze | ||||
United Prosperity (Hongkong) | foreign legal person shares | 2.23% | 107,267,728 | No pledge or freeze |
Investment Co., Limited | |||||||||||
GIC PRIVATE LIMITED | foreign legal person shares | 1.84% | 88,270,713 | 7,377,141 | No pledge or freeze | ||||||
Central Huijin Investment Ltd. | domestic general legal person shares | 1.15% | 55,393,100 | No pledge or freeze | |||||||
DRAGON BILLION SELECT MASTER FUND | foreign legal person shares | 0.85% | 40,597,114 | 34,577,045 | No pledge or freeze | ||||||
Anbang Asset Mgmt-China Merchants Bank- Anbang Asset-China | fund, finance products, etc. | 0.67% | 32,070,942 | - | No pledge or freeze | ||||||
Anbang Asset Mgmt-China Minsheng Bank-Anbang Asset-China | fund, finance products, etc. | 0.65% | 31,082,094 | No pledge or freeze | |||||||
MONETARY AUTHORITY OF SINGAPORE | foreign legal person shares | 0.56% | 26,917,178 | 1,008,881 | No pledge or freeze | ||||||
Explanation on the relationship and the action alike of above shareholders | Among the top 10 shareholders, China South Industries Group Co., Ltd., the actual controller; China Changan Automobile Group Co., Ltd., the controlling shareholder, and its wholly owned subsidiary United Prosperity (Hong Kong) Investment Co., Limited. belong to the concerted actor regulated by “Disclosure Administration of Shares Change Information of The Listed Company”. | ||||||||||
The ten largest circulated shareholders | |||||||||||
Name of shareholders | Shares at the year end | Shares type | |||||||||
Type | Amount | ||||||||||
China South Industries Group Co., Ltd. | 1,035,312,673 | RMB ordinary shares | 1,035,312,673 | ||||||||
China Changan Automobile Co., Ltd. | 788,282,543 | RMB ordinary shares | 788,282,543 | ||||||||
China securities finance Co, Ltd | 218,580,149 | RMB ordinary shares | 218,580,149 | ||||||||
United Prosperity (Hongkong) Investment Co., Limited | 107,267,728 | Domestic listed foreign shares | 107,267,728 | ||||||||
GIC PRIVATE LIMITED | 88,270,713 | Domestic listed foreign shares | 88,270,713 | ||||||||
Central Huijin Investment Ltd. | 55,393,100 | RMB ordinary shares | 55,393,100 | ||||||||
DRAGON BILLION SELECT MASTER FUND | 40,597,114 | Domestic listed foreign shares | 40,597,114 | ||||||||
Anbang Asset Mgmt-China Merchants Bank- Anbang | 32,070,942 | RMB ordinary shares | 32,070,942 |
Asset-China | |||
Anbang Asset Mgmt-China Minsheng Bank-Anbang Asset-China | 31,082,094 | RMB ordinary shares | 31,082,094 |
MONETARY AUTHORITY OF SINGAPORE | 26,917,178 | Domestic listed foreign shares | 26,917,178 |
The top 10 shareholders to sell circulated shares, and the infinite tradable relationship between shareholders and top 10 shareholders or concerted action | Among the top 10 shareholders, China South Industries Group Co., Ltd., the actual controller; China Changan Automobile Group Co., Ltd., the controlling shareholder, and its wholly owned subsidiary United Prosperity (Hong Kong)Investment Co., Limited belong to the concerted actor regulated by “Disclosure Administration of Shares Change Information of The Listed Company”. |
Whether the company top 10 shareholders of ordinary shares, and the top 10 circulated shareholders agreed on the repurchasetransactions during the report period
□ Available √ Not- available
The company top 10 shareholders of ordinary shares, and the top 10 circulated shareholders did not agree on the repurchasetransactions during the reporting period
IV. The change of the controlling shareholders and theactual controllers
During the reporting period the change of controlling shareholders
□ Available √ Not- available
No changes in controlling shareholders during the reporting period.The change of the actual controllers during the reporting period
□ Available √ Not- available
No changes in the actual controllers during the reporting period.
Chapter 7 Information about Directors, Supervisors, Senior
Management
I. Share ownership of directors, supervisors and senior managers
□ Available √ Not- available
The share ownership of the directors, supervisors and senior managers has no change during the reporting period. For details, plaeserefer to 2017 annual report.
II. Departure and Hiring information of the directors, supervisors and senior manager
Name | Duties | Type | Date | Reason |
Wang Kun | Director, Vice President, Secretary of the board of directors | Departure | Jan 27th, 2018 | Job arrangement |
Cao Xingquan | Independent director | Election | May 19th, 2018 | Appointment due to work |
Zhang Deyong | Director | Election | May 19th, 2018 | Appointment due to work |
Zhang Dongjun | Director | Election | May 19th, 2018 | Appointment due to work |
Wang Xiaoxiang | Director | Departure | May 26th, 2018 | Job arrangement |
Gong Bin | Vice President | Departure | May 29th, 2018 | Job arrangement |
Huang Zhongqiang | Vice President | Departure | May 29th, 2018 | Job arrangement |
Luo Minggang | Vice President | Departure | May 29th, 2018 | Job arrangement |
Chapter 8 Corporate Bonds
Is there a corporate bond that is publicly issued and listed on the stock exchange and fails to be fully paidup or not due on maturity until the approval of the semi-annual report
□ Yes √ No
Chapter 9 The Financial Statements
I. Auditing Report
Semi-annual report is audited
□ Yes √ No
No audit on the semi-annual financial report.
II. Financial statement
Financial in notes to the statements of the unit is: RMB yuan
1. Consolidated Balance Sheet
In RMB Yuan
Account | Ending Balance | Opening Balance |
Current assets: | ||
Cash | 24,067,745,140.49 | 22,631,536,496.53 |
Notes receivable | 18,390,476,412.74 | 29,156,481,085.20 |
Accounts receivable | 1,925,729,920.41 | 1,806,807,193.04 |
Prepayments | 1,004,033,538.79 | 1,102,239,931.33 |
Interest receivable | 55,081,274.30 | 42,184,263.88 |
Other receivables | 2,096,542,096.16 | 1,645,276,455.04 |
Inventories | 4,726,421,476.59 | 4,666,183,421.80 |
Other current assets | 2,195,054,890.51 | 1,705,910,530.43 |
Total current assets | 54,461,084,749.99 | 62,756,619,377.25 |
Non-current assets: | ||
Available-for-sale financial assets | 564,227,000.00 | 541,917,000.00 |
Long-term receivables | ||
Long-term equity investments | 15,638,035,950.97 | 14,098,523,896.97 |
Investment properties | 7,442,917.06 | 7,556,272.84 |
Fixed assets | 18,456,584,832.13 | 19,044,528,950.70 |
Construction in progress | 4,728,241,031.94 | 3,234,173,155.52 |
Construction materials | ||
Liquidation of fixed assets | 1,342,869.14 | 4,716.98 |
Intangible assets | 4,011,477,965.19 | 4,047,945,129.67 |
Devlopment expenditure | 956,013,379.97 | 836,638,328.10 |
Goodwill | 9,804,394.00 | 9,804,394.00 |
Long-term deferred expenses | 14,569,071.92 | 13,545,589.39 |
Deferred tax assets | 1,562,147,290.13 | 1,533,857,811.27 |
Total non-current assets | 45,949,886,702.45 | 43,368,495,245.44 |
Total assets | 100,410,971,452.44 | 106,125,114,622.69 |
Current liabilities: | ||
Short-term loans | 186,000,000.00 | 185,000,000.00 |
Notes payable | 20,222,535,762.78 | 18,002,926,579.81 |
Accounts payable | 15,501,582,938.54 | 21,902,826,194.15 |
Advances from customers | 1,935,292,614.32 | 3,878,382,556.43 |
Payroll payable | 775,438,321.46 | 1,640,885,322.33 |
Taxes payable | 206,628,829.13 | 394,321,397.14 |
Interest payables | ||
Dividend payables | 2,157,870,026.46 | 79,742.80 |
Other payables | 1,820,125,863.40 | 2,599,013,410.98 |
Non-current liabilities due within one year | 13,423,420.00 | 13,151,946.67 |
Other current liabilities | 3,792,413,587.50 | 3,562,154,645.82 |
Total current liabilities | 46,611,311,363.59 | 52,178,741,796.13 |
Non-current liabilities: | ||
Long-term loans | - | 6,575,973.33 |
Bonds payable | ||
Long-term payable | ||
Long term payroll payable | 105,773,348.51 | 113,012,000.00 |
Special payable | 216,541,226.77 | 290,607,151.02 |
Contingent liabilities | 2,542,043,126.47 | 2,423,958,274.70 |
Deferred earnings | 3,730,623,896.39 | 3,627,817,419.05 |
Deferred tax liabilities | 17,069,250.00 | 21,222,750.00 |
Total non-current liabilities | 6,612,050,848.14 | 6,483,193,568.10 |
Total liabilities | 53,223,362,211.73 | 58,661,935,364.23 |
Owners’ equity: | ||
Share capital | 4,802,648,511.00 | 4,802,648,511.00 |
Capital reserves | 5,099,405,956.94 | 5,099,405,956.94 |
Less: Treasury shares |
Other Comprehensive Income | 329,988,957.43 | 82,959,423.84 |
Special reserves | 45,988,791.91 | 28,279,733.06 |
Surplus reserves | 2,401,324,255.50 | 2,401,324,255.50 |
Retained earnings | 34,635,889,357.12 | 35,184,073,061.94 |
Equity attributable to owners | 47,315,245,829.90 | 47,598,690,942.28 |
Minority interests | -127,636,589.19 | -135,511,683.82 |
Total equity | 47,187,609,240.71 | 47,463,179,258.46 |
Total liabilities and owener’s equity | 100,410,971,452.44 | 106,125,114,622.69 |
2. Balance sheet
In RMB Yuan
Account | Ending Balance | Opening Balance |
Current assets: | ||
Cash | 22,689,732,804.05 | 20,634,514,487.95 |
Notes receivable | 17,701,785,367.98 | 29,010,848,480.70 |
Accounts receivable | 5,540,094,852.90 | 4,991,996,591.00 |
Prepayments | 871,316,636.66 | 960,555,695.17 |
Interest receivable | 55,081,274.30 | 42,184,263.88 |
Other receivables | 2,216,333,615.11 | 1,723,723,602.89 |
Inventories | 3,717,205,618.67 | 4,005,921,440.85 |
Other current assets | 1,548,207,146.93 | 1,178,094,749.84 |
Total current assets | 54,339,757,316.60 | 62,547,839,312.28 |
Non-current assets: | ||
Available-for-sale financial assets | 554,317,000.00 | 532,007,000.00 |
Long-term receivables | ||
Long-term equity investments | 17,430,011,940.55 | 15,786,743,636.55 |
Investment properties | ||
Fixed assets | 15,087,534,046.27 | 15,582,899,632.64 |
Construction in progress | 3,936,119,637.89 | 2,763,521,275.98 |
Construction materials | ||
Liquidation of fixed assets | ||
Intangible assets | 3,320,233,576.20 | 3,341,218,169.73 |
Development expenditure | 813,831,574.70 | 733,947,670.46 |
Goodwill |
Long-term deferred expenses | 12,851,515.57 | 12,821,802.39 |
Deferred tax assets | 1,453,005,738.60 | 1,421,165,907.17 |
Total non-current assets | 42,607,905,029.78 | 40,174,325,094.92 |
Total assets | 96,947,662,346.38 | 102,722,164,407.20 |
Current liabilities: | ||
Short-term loans | ||
Notes payable | 19,101,504,842.78 | 16,874,603,207.01 |
Accounts payable | 13,141,085,740.88 | 19,476,620,759.93 |
Advances from customers | 1,676,549,768.68 | 3,724,183,178.58 |
Payroll payable | 578,717,128.59 | 1,377,250,229.66 |
Taxes payable | 189,476,624.87 | 320,050,382.91 |
Interest payables | ||
Dividend payables | 2,157,790,283.66 | - |
Other payables | 1,892,869,657.20 | 3,181,207,281.30 |
Non-current liabilities within one year | ||
Other current liabilities | 3,659,654,941.31 | 3,453,269,881.59 |
Total current liabilities | 42,397,648,987.97 | 48,407,184,920.98 |
Non-current liabilities: | ||
Long-term loans | ||
Bonds payable | ||
Long-term payable | ||
Long term payroll payable | 84,404,887.09 | 91,263,000.00 |
Special payable | 161,190,517.37 | 235,256,441.62 |
Contingent liabilities | 2,400,416,383.94 | 2,380,971,255.26 |
Deferred earnings | 2,848,820,379.02 | 2,879,604,719.46 |
Deferred tax liabilities | 17,069,250.00 | 21,222,750.00 |
Total non-current liabilities | 5,511,901,417.42 | 5,608,318,166.34 |
Total liabilities | 47,909,550,405.39 | 54,015,503,087.32 |
Owners' equity: | ||
Share capital | 4,802,648,511.00 | 4,802,648,511.00 |
Capital reserves | 4,717,192,101.72 | 4,717,192,101.72 |
Less: Treasury shares | ||
Other comprehensive income | 398,740,399.77 | 132,520,410.88 |
Special reserves | 22,783,308.91 | 12,013,706.73 |
Surplus reserves | 2,401,324,255.50 | 2,401,324,255.50 |
Retained earnings | 36,695,423,364.09 | 36,640,962,334.05 |
Total owners' equity | 49,038,111,940.99 | 48,706,661,319.88 |
Total liabilities and owners’ equity | 96,947,662,346.38 | 102,722,164,407.20 |
3. Consolidated Income Statement
In RMB Yuan
Account | Current Period | Prior Period |
Operating revenue | 35,642,832,190.04 | 33,555,213,109.46 |
Less: Operating cost | 30,614,845,704.45 | 28,792,755,690.32 |
Tax and surcharges | 1,286,915,201.57 | 1,443,786,480.14 |
Operating expenses | 2,543,462,428.51 | 2,004,176,042.01 |
General and administrative expenses | 2,155,401,262.05 | 1,785,734,071.11 |
Financial expenses | -225,518,842.31 | -246,821,602.15 |
Impairment loss on assets | 108,941,422.42 | 92,122,720.46 |
Add: Investment income | 1,362,011,815.11 | 3,831,618,978.64 |
Including: Investment income from associates and joint venture | 1,362,011,815.11 | 3,831,618,978.64 |
Gain on disposal of assets | 18,771,809.69 | 8,914,486.07 |
Other incomes | 1,116,231,219.32 | 1,153,834,905.86 |
Operating profit | 1,655,799,857.47 | 4,677,828,078.14 |
Add: Non-operating income | 29,318,896.76 | 43,495,774.09 |
Less: Non-operating expenses | 52,348,762.93 | 12,865,146.02 |
Total profit | 1,632,769,991.30 | 4,708,458,706.21 |
Less: Income tax expense | 15,288,317.83 | 40,996,104.66 |
Net profit | 1,617,481,673.47 | 4,667,462,601.55 |
Classification by going concern | ||
Net profit from continuing operations | 1,617,481,673.47 | 4,667,462,601.55 |
Net profit from discontinued operations | ||
Classification by ownership attribution | ||
Net profit attributable to owners | 1,609,606,578.84 | 4,620,545,739.52 |
Minority interests | 7,875,094.63 | 46,916,862.03 |
Other comprehensive income, net of tax | 247,029,533.59 | -49,271,529.86 |
Total comprehensive income | 1,864,511,207.06 | 4,618,191,071.69 |
Total comprehensive income attributable to owners | 1,856,636,112.43 | 4,571,274,209.66 |
Total comprehensive income attributable to minority interest | 7,875,094.63 | 46,916,862.03 |
Earnings per share | ||
Basic earnings per share | 0.34 | 0.96 |
Diluted earnings per share | 0.34 | 0.96 |
4. Income Statement
In RMB Yuan
Account | Current Period | Prior Perid |
Operating revenue | 34,209,065,716.02 | 32,839,522,229.70 |
Less: Operating cost | 29,726,487,573.72 | 28,904,081,124.37 |
Tax and surcharges | 1,092,437,739.80 | 1,135,041,753.22 |
Operating expenses | 2,298,436,366.37 | 1,803,479,171.45 |
General and administrative expenses | 1,804,533,573.37 | 1,436,070,738.53 |
Financial expenses | -248,434,734.69 | -256,888,513.32 |
Impairment loss on assets | 114,014,999.44 | 133,639,836.86 |
Add: Investment income | 1,995,138,886.45 | 3,830,647,885.91 |
Including: Investment income from associates and from joint venture | 1,362,011,815.11 | 3,831,618,978.64 |
Gain on disposal of assets | 23,972,983.02 | -736,556.03 |
Other income | 761,820,507.26 | 289,212,455.26 |
Operating profit | 2,202,522,574.74 | 3,803,221,903.73 |
Add: Non-operating income | 22,601,200.00 | 33,242,956.33 |
Less: Non-operating expenses | 44,712,292.46 | 13,025,800.35 |
Total profit | 2,180,411,482.28 | 3,823,439,059.71 |
Less: Income tax expense | -31,839,831.42 | -8,032,861.72 |
Net profit | 2,212,251,313.70 | 3,831,471,921.43 |
Classification by going concern | ||
Net profit from continuing operations | 2,212,251,313.70 | 3,831,471,921.43 |
Net profit from discontinued operations |
Other comprehensive income, net of tax | 266,219,988.89 | -45,866,000.00 |
Total comprehensive income | 2,478,471,302.59 | 3,785,605,921.43 |
5. Consolidated cash flow statement
In RMB Yuan
Account | Current Period | Prior Perid |
Cash flows from operating activities: | ||
Cash received from sale of goods or rendering of services | 47,598,885,985.36 | 46,780,300,361.41 |
Refunds of taxes | 196,358,525.83 | 140,895,941.36 |
Cash received relating to other operating activities | 1,720,885,871.60 | 2,518,058,023.51 |
Subtotal of cash inflows | 49,516,130,382.79 | 49,439,254,326.28 |
Cash paid for goods and services | 36,479,347,621.36 | 34,870,252,065.09 |
Cash paid to and on behalf of employees | 3,423,077,482.78 | 3,158,460,344.22 |
Cash paid for all types of taxes | 1,795,067,722.02 | 3,357,708,868.23 |
Cash paid relating to other operating activities | 3,417,235,796.48 | 3,093,128,324.63 |
Subtotal of cash outflows | 45,114,728,622.64 | 44,479,549,602.17 |
Net cash flows from operating activities | 4,401,401,760.15 | 4,959,704,724.11 |
Cashflows from investing activities: | ||
Cash received from return on investments | 114,500,000.00 | 4,458,000,000.00 |
Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 18,444,059.30 | 12,051,601.04 |
Cash received relating to other investing activities | 17,358,750.00 | 629,600,000.00 |
Subtotal of cash inflows | 150,302,809.30 | 5,099,651,601.04 |
Cash paid for acquisition of fixed assets, intangible assets and other long-term assets | 3,071,429,581.17 | 1,761,384,957.20 |
Cash paid for acquisition of investments | 52,243,750.00 | 100,840,001.00 |
Cash paid relating to other investing activities |
Subtotal of cash outflows | 3,123,673,331.17 | 1,862,224,958.20 |
Net cash flows from investing activities | -2,973,370,521.87 | 3,237,426,642.84 |
Cash flows from financing activities: | ||
Cash received from borrowings | 166,000,000.00 | 185,569,008.83 |
Cash received relating to other financing activities | 880,129,667.40 | 749,802,481.32 |
Subtotal of cash inflows | 1,046,129,667.40 | 935,371,490.15 |
Cash repayments of borrowings | 171,300,000.00 | 2,140,000,000.00 |
Cash paid for distribution of dividends or profits and interest expenses | 5,326,893.20 | 3,168,151,086.02 |
Cash paid relating to other financing activities | - | 33,855,585.56 |
Subtotal of cash outflows | 176,626,893.20 | 5,342,006,671.58 |
Net cash flows from financing activities | 869,502,774.20 | -4,406,635,181.43 |
Effect of changes in exchange rate on cash | 18,804,298.88 | 25,338,127.63 |
Net increase in cash and cash equivalents | 2,316,338,311.36 | 3,815,834,313.15 |
Add: Opening balance of cash and cash equivalents | 21,451,305,090.53 | 22,993,432,067.05 |
Closing balance of cash and cash equivalents | 23,767,643,401.89 | 26,809,266,380.20 |
6. Cash flow statement
In RMB Yuan
Account | Current Period | Prior Perid |
Cash flows from operating activities: | ||
Cash received from sale of goods or rendering of services | 45,723,211,451.95 | 44,484,189,667.84 |
Refunds of taxes | ||
Cash received relating to other operating activities | 1,227,875,965.34 | 1,206,879,552.91 |
Subtotal of cash inflows | 46,951,087,417.29 | 45,691,069,220.75 |
Cash paid for goods and services | 34,485,733,663.71 | 33,584,162,667.42 |
Cash paid to and on behalf of | 2,753,479,395.91 | 2,480,880,221.05 |
employees | ||
Cash paid for all types of taxes | 1,308,603,097.31 | 2,696,116,766.30 |
Cash paid relating to other operating activities | 3,359,852,336.20 | 2,881,114,513.51 |
Subtotal of cash outflows | 41,907,668,493.13 | 41,642,274,168.28 |
Net cash flows from operating activities | 5,043,418,924.16 | 4,048,795,052.47 |
Cashflows from investing activities: | ||
Cash received from disposal of investments | 839,201.56 | - |
Cash received from return on investments | 119,200,416.67 | 4,464,991,013.22 |
Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 18,417,859.30 | 403,878.24 |
Cash received relating to other investing activities | 100,000,000.00 | 791,000,000.00 |
Subtotal of cash inflows | 238,457,477.53 | 5,256,394,891.46 |
Cash paid for acquisition of fixed assets, intangible assets and other long-term assets | 2,869,658,085.59 | 1,602,304,152.01 |
Cash paid for acquisition of investments | 157,000,000.00 | 100,437,390.50 |
Cash paid relating to other investing activities | 200,000,000.00 | 100,000,000.00 |
Subtotal of cash outflows | 3,226,658,085.59 | 1,802,741,542.51 |
Net cash flows from investing activities | -2,988,200,608.06 | 3,453,653,348.95 |
Cash flows from financing activities: | ||
Cash received from borrowings | ||
Cash received relating to other financing activities | 461,856,503.42 | 707,928,498.17 |
Subtotal of cash inflows | 461,856,503.42 | 707,928,498.17 |
Cash repayments of borrowings | - | 1,980,000,000.00 |
Cash paid for distribution of dividends or profits and interest expenses | - | 3,147,923,019.82 |
Cash paid relating to other financing activities |
Subtotal of cash outflows | - | 5,127,923,019.82 |
Net cash flows from financing activities | 461,856,503.42 | -4,419,994,521.65 |
Effect of changes in exchange rate on cash | ||
Net increase in cash and cash equivalents | 2,517,074,819.52 | 3,082,453,879.77 |
Add: Opening balance of cash and cash equivalents | 20,172,657,984.53 | 22,326,566,084.67 |
Closing balance of cash and cash equivalents | 22,689,732,804.05 | 25,409,019,964.44 |
7. Consolidated statement of changes in shareholders’ equity
In RMB Yuan
Items | Current period | |||||||||
Equity attributable to owners | Minority interest | Total equity | ||||||||
Share capital | Capital reserves | Less: Treasury shares | Special reserves | Surplus reserves | General reserves | Retained earnings | Other comprehensive income | |||
I. At end of last year | 4,802,648,511.00 | 5,099,405,956.94 | - | 28,279,733.06 | 2,401,324,255.50 | - | 35,184,073,061.94 | 82,959,423.84 | -135,511,683.82 | 47,463,179,258.46 |
II. At beginning of year | 4,802,648,511.00 | 5,099,405,956.94 | - | 28,279,733.06 | 2,401,324,255.50 | - | 35,184,073,061.94 | 82,959,423.84 | -135,511,683.82 | 47,463,179,258.46 |
III. Changes during the year | - | - | - | 17,709,058.85 | - | - | -548,183,704.82 | 247,029,533.59 | 7,875,094.63 | -275,570,017.75 |
1.Total comprehensive income | - | - | - | - | - | - | 1,609,606,578.84 | 247,029,533.59 | 7,875,094.63 | 1,864,511,207.06 |
2. Capital contributed by owners and capital decreases | ||||||||||
3. Distribution of profit | - | - | - | - | - | - | -2,157,790,283.66 | - | - | -2,157,790,283.66 |
Distribution to owners | - | - | - | - | - | - | -2,157,790,283.66 | - | - | -2,157,790,283.66 |
4. Special reserves | - | - | - | 17,709,058.85 | - | - | - | - | - | 17,709,058.85 |
(1) Pick-up in current period | - | - | - | 40,997,574.06 | - | - | - | - | - | 40,997,574.06 |
(2) Used in current period | - | - | - | -23,288,515.21 | - | - | - | - | - | -23,288,515.21 |
IV. At end of current period | 4,802,648,511.00 | 5,099,405,956.94 | - | 45,988,791.91 | 2,401,324,255.50 | - | 34,635,889,357.12 | 329,988,957.43 | -127,636,589.19 | 47,187,609,240.71 |
Prior period
In RMB Yuan
Items | Prior period | |||||||||
Equity attributable to owners | Minority interest | Total equity | ||||||||
Share capital | Capital reserves | Less: Treasury shares | Special reserves | Surplus reserves | General reserves | Retained earnings | Other comprehensive income | |||
I. At end of last year | 4,802,648,511.00 | 5,085,301,532.55 | - | 16,349,485.65 | 2,401,324,255.50 | - | 31,126,707,710.94 | 141,480,908.23 | -220,652,853.81 | 43,353,159,550.06 |
II. At beginning of year | 4,802,648,511.00 | 5,085,301,532.55 | - | 16,349,485.65 | 2,401,324,255.50 | - | 31,126,707,710.94 | 141,480,908.23 | -220,652,853.81 | 43,353,159,550.06 |
III. Changes during the year | - | 25,192,500.00 | - | 9,591,966.43 | - | - | 1,540,676,367.05 | -49,271,529.86 | 46,916,862.03 | 1,573,106,165.65 |
1.Total comprehensive income | - | - | - | - | - | - | 4,620,545,739.52 | -49,271,529.86 | 46,916,862.03 | 4,618,191,071.69 |
2. Capital contributed by owners and capital decreases | - | 25,192,500.00 | - | - | - | - | - | - | - | 25,192,500.00 |
3. Distribution of profit | - | - | - | - | - | - | -3,079,869,372.47 | - | - | -3,079,869,372.47 |
Distribution to owners | - | - | - | - | - | - | -3,079,869,372.47 | - | - | -3,079,869,372.47 |
4. Special reserves | - | - | - | 9,591,966.43 | - | - | - | - | - | 9,591,966.43 |
(1) Pick-up in current period | - | - | - | 34,781,156.92 | - | - | - | - | - | 34,781,156.92 |
(2) Used in current period | - | - | - | -25,189,190.49 | - | - | - | - | - | -25,189,190.49 |
IV. At end of current period | 4,802,648,511.00 | 5,110,494,032.55 | - | 25,941,452.08 | 2,401,324,255.50 | - | 32,667,384,077.99 | 92,209,378.37 | -173,735,991.78 | 44,926,265,715.71 |
8. Statement of changes in shareholders’ equity
In RMB Yuan
Items | Current period | |||||||
Share capital | Capital reserves | Less: Treasury shares | Special reserves | Surplus reserves | Other comprehensive income | Retained earnings | Total equity | |
I. At end of last year | 4,802,648,511.00 | 4,717,192,101.72 | - | 12,013,706.73 | 2,401,324,255.50 | 132,520,410.88 | 36,640,962,334.05 | 48,706,661,319.88 |
II. At beginning of year | 4,802,648,511.00 | 4,717,192,101.72 | - | 12,013,706.73 | 2,401,324,255.50 | 132,520,410.88 | 36,640,962,334.05 | 48,706,661,319.88 |
III. Changes during the year | - | - | - | 10,769,602.18 | - | 266,219,988.89 | 54,461,030.04 | 331,450,621.11 |
1.Total comprehensive income | - | - | - | - | - | 266,219,988.89 | 2,212,251,313.70 | 2,478,471,302.59 |
2. Capital contributed by owners and capital decreases | ||||||||
The amount of shares paid into the owner's equity | ||||||||
3. Distribution of profit | - | - | - | - | - | - | -2,157,790,283.66 | -2,157,790,283.66 |
Distribution to owners | - | - | - | - | - | - | -2,157,790,283.66 | -2,157,790,283.66 |
4. Special reserves | - | - | - | 10,769,602.18 | - | - | - | 10,769,602.18 |
(1) Pick-up in current period | - | - | - | 28,985,079.84 | - | - | - | 28,985,079.84 |
(2) Used in current period | - | - | - | -18,215,477.66 | - | - | - | -18,215,477.66 |
IV. At end of current period | 4,802,648,511.00 | 4,717,192,101.72 | - | 22,783,308.91 | 2,401,324,255.50 | 398,740,399.77 | 36,695,423,364.09 | 49,038,111,940.99 |
Prior period
In RMB Yuan
Items | Prior period | |||||||
Share capital | Capital reserves | Less: Treasury shares | Special reserves | Surplus reserves | Other comprehensive income | Retained earnings | Total equity | |
I. At end of last year | 4,802,648,511.00 | 4,689,475,046.88 | - | 7,555,003.10 | 2,401,324,255.50 | 202,294,552.68 | 33,488,484,537.62 | 45,591,781,906.78 |
II. At beginning of year | 4,802,648,511.00 | 4,689,475,046.88 | - | 7,555,003.10 | 2,401,324,255.50 | 202,294,552.68 | 33,488,484,537.62 | 45,591,781,906.78 |
III. Changes during the year | - | 25,192,500.00 | - | 6,058,696.89 | - | -45,866,000.00 | 751,602,548.96 | 736,987,745.85 |
1.Total comprehensive income | - | - | - | - | - | -45,866,000.00 | 3,831,471,921.43 | 3,785,605,921.43 |
2. Capital contributed by owners and capital decreases | - | 25,192,500.00 | - | - | - | - | - | 25,192,500.00 |
The amount of shares paid into the owner's equity | - | 25,192,500.00 | - | - | - | - | - | 25,192,500.00 |
3. Distribution of profit | - | - | - | - | - | - | -3,079,869,372.47 | -3,079,869,372.47 |
Distribution to owners | - | - | - | - | - | - | -3,079,869,372.47 | -3,079,869,372.47 |
4. Special reserves | - | - | - | 6,058,696.89 | - | - | - | 6,058,696.89 |
(1) Pick-up in current period | - | - | - | 21,295,002.00 | - | - | - | 21,295,002.00 |
(2) Used in current period | - | - | - | -15,236,305.11 | - | - | - | -15,236,305.11 |
IV. At end of current period | 4,802,648,511.00 | 4,714,667,546.88 | - | 13,613,699.99 | 2,401,324,255.50 | 156,428,552.68 | 34,240,087,086.58 | 46,328,769,652.63 |
III. Corporate information
Chongqing Changan Automobile Company Limited (hereafter referred to as the “Company”) was established byChina Changan Automobile Group (hereafter referred to as the “Changan Group”) as the individual originator on31 October 1996. The company was set up using the group’s net asset relating to the operation of mini cars and
engine, the shares it owned in Chongqing Changan Suzuki company limited (equal to 506,190,000 shares of theCompany) and the fund raised from the issuance of 250,000,000 foreign capital stock (B shares), with total sharecapital of RMB756,190,000.
With the approval of China Securities Regulatory Commission, the company initially floated on share market on19 May 1997 by issuing 120,000,000 common shares (A share) to the public. The offering increased the totalshare capital to RMB 876,190,000.
On 26 June 1998, the Company issued 4 shares for each 10 shares to existing shareholders of the original876,190,000 shares. The issuance was made from capital reserve and increased the total share capital to RMB1,226,666,000.
On 26 May 2004, the Company offered 2 bonus shares for each 10 shares held by existing shareholders, whichincreased the total share capital from RMB 1,226,666,000 to RMB 1,471,999,200.
On 26 August 2004, with the approval of China Securities Regulatory Commission, the Company offered148,850,000 common shares (A share) to the market, which increased the total share capital to RMB1,620,849,200.
In December 2005, China South Industries Group Corporation (hereafter referred to as the “South Group”), the
ultimate parent company, used the common share (850,399,200 shares) owned by its subsidiary, Changan Group,
as part of the investment to establish China South Industries Motor Company (hereafter referred to as ”SouthIndustries Motor”). The share occupied 52.466% of the Company’s total share capital. Therefore, South industries
Motor became the parent company of the Company. On 30 March 2006, the transfer of share was registered byShenzhen branch of China Securities Depository and Clearing Corporation limited.
In May 2006, South Industries Motor issued 3.2 bonus shares for each 10 shares to the shareholders at the
implementation date of reformation of non-tradable shares for their non-tradable shares according to the ”Reply ofthe problems related to the reformation of non-tradable shares of Chongqing Changan Automobile Co., Ltd.”
(2006[442] Guo Zi Chan Quan) issued by the State-owned Assets Supervision and Administration Commission of
State Council and the related shareholder’s meeting. After the reformation of non-tradable shares, South Industries
Motor occupied 45.548% of equity through 738,255,200 common shares.On 15 May 2007, the Company issued 2 bonus shares for each 10 shares to existing shareholders, which increasedthe total share capital from RMB 1,620,849,200 to RMB 1,945,019,040.
On 30 May 2008, the Company issued 2 shares for each 10 shares owned by existing shareholders. The issuancewas made from capital reserve and increased the total share capital to RMB 2,334,022,848.
On 3 March 2009, the secondary temporary shareholder meeting was held. The board resolution about ‘thereacquisition of foreign capital stock listed in China’ was approved in the meeting. For the buyback period ended
on 3 March 2010, the company repurchased 8,365,233 shares in total, equal to 0.3584% of total capital.
On 1 July 2009, with the approval of State Administration for Industry and Commercial, South industries Motor,the parent company changed its name to China Changan Automobile Industry (Group) Co., Ltd. (hereafter
referred to as the “China Changan”).
With the approval of China Securities Regulatory Commission on 14 January 2011, the Company issued360,166,022 common shares (A share), which increased the total share capital to RMB 2,685,823,637. After thecompletion of the issuance, China Changan holds 1,163,787,489 shares of the Company's common stock, and theheld equity interest decreased to 43.33%.
On 18 May 2011, the Company issued 4 bonus shares for each 10 shares and issued 4 shares to 10 shares fromcapital reserve to existing shareholders. After this issuance, the total share capital has been increased to RMB4,834,482,546.
On 21 December 2011, the first temporary shareholder meeting was held. The board resolution about ‘thereacquisition of foreign capital stock listed in China’ was approved in the meeting. For the buyback period ended
on 20 March 2012, the company repurchased 171,596,438 shares in total, equal to 3.55% of total capital. On 30March 2012, the company cancelled the share and the share capital decreased to RMB 4,662,886,108.
During 2013 and 2014, China Changan, the parent company of the Company, continuously sold 181,260,000 and89,962,264 shares in total in secondary market. As at 31 December 2014, China Changan holds 1,823,595,216
shares of the Company’s ordinary shares, with shares proporation decreasing to 39.11%.
With the approval of China Securities Regulatory Commission on 14 September 2016, the Company issued139,762,403 non-public common shares (A share) to China Changan Automobile Industry (Group) Co., Ltd.,which caused the total share capital increased to RMB 4,802,648,511. After the completion of the issuance, ChinaChangan holds 1,963,357,619 shares of the Company's common stock, with shares proporation increasing to40.88%.
As at 30 June 2018, the Company’s parent company and ultimate controlling company is China Changan and
South Group respectively.
The Company and its subsidiaries (hereafter referred to as the “Group”) mainly focus on the manufacturing and
sales of automobile (include cars), automobile engine, spare parts.
The consolidated scope of the consolidated financial statements is based on the control. For details, please refer toNote 8 for the changes in the scope of the consolidated financial statements for the current year.
IV. BASIS OF PREPERATION
The financial statements have been prepared in accordance with Accounting Standards for Business
Enterprises-Basic Standard and the specific standards issued and modified subsequently, and the implementationguidance, interpretations and other relevant provisions issued subsequently by the MOF (correctly referred to as
“Accounting Standards for Business Enterprises”).
The financial statements are listed on a going concern basis.
The financial statements have been prepared under the historical cost convention, except for certain financialinstruments. If the assets are impaired, the corresponding provisions should be made accordingly. The assets arerecorded at assessed value by State-owned Assets Supervision and Administration Commission of the StateCouncil, which are invested into the Group in the reforming period.
V. Significant accounting policies and accounting estimates
The group has formulated specific accounting policies and accounting estimates based on the characteristics ofactualdaily operations, mainly reflected in the provision method for uncollectible accounts receivable [Note 5( 10 ) ], the valuation method of inventories [Note 5 ( 11 ) ], depreciation of fixed assets and amortization ofintangible assets [ Note 5 ( 14 ) ( 17 ) ], the capitalization conditions for r & d expenses [Note 5 ( 18 ) ], revenuerecognition and measurement [Note 5 ( 22 ) ].
1. Statement of compliance with Accounting Standards for Business EnterprisesThe financial statements present fairly and fully, the financial position of the Company as at June 30, 2018 and the
financial results and the cash flows for 1-6 month then ended in accordance with Accounting Standards forBusiness Enterprises.
2. Accounting yearThe accounting year of the Group is from 1 January to 31 December of each calendar year.3. Functional currency
The Group’s functional and reporting currency is the Renminbi (“RMB”). Unless otherwise stated, the unit of
the currency is Yuan. Each entity in the Group determines its own functional currency in accordance with theoperating circumstances. At the end of the reporting period, the foreign currency financial statements aretranslated into the reporting currency of the Company of RMB.
4. Business combinationA business combination is a transaction or event that brings together two or more separate entities into one
reporting entity. Business combinations are classified into business combinations involving entities undercommon control and business combinations involving entities not under common control.
Business combination involving entities under common controlA business combination involving entities under common control is a business combination in which all of the
combining entities are ultimately controlled by the same party or parties both before and after the combination,and that control is not transitory. For a business combination involving entities under common control, the partywhich, on the combination date, obtains control of another entity participating in the combination is the acquiringparty, while that other entity participating in the combination is a party being acquired. Combination date is thedate on which the acquiring party effectively obtains control of the party being acquired.
Assets and liabilities that are obtained by the acquiring party in a business combination involving entities undercommon control shall be measured at their carrying amounts at the combination date as recorded by the partybeing acquired. The difference between the carrying amount of the net assets obtained and the carrying amount ofthe consideration paid for the combination (or the aggregate face value of shares issued as consideration) shall beadjusted to capital reserve. If the capital reserve is not sufficient to absorb the difference, any excess shall beadjusted against retained earnings.
Business combination involving entities not under common controlA business combination involving entities not under common control is a business combination in which all of thecombining entities are not ultimately controlled by the same party or parties both before and after the combination.For a business combination involving entities not under common control, the party that, on the acquisition date,obtains control of another entity participating in the combination is the acquirer, while that other entityparticipating in the combination is the acquiree. Acquisition date is the date on which the acquirer effectivelyobtains control of the acquiree.
The acquirer shall measure the acquiree’s identifiable assets, liabilities and contingent liabilities acquired in the
business combination at their fair values on the acquisition date.
Where the sum of the fair value of the consideration transferred (or the fair value of the issued equity securities)
and the fair value of the acquirer’s previously held equity interest in the acquiree exceeds the acquirer’s interest inthe fair value of the acquiree’s identifiable net assets, the difference shall be recognized as goodwill and measured
at cost less any accumulated impairment losses. Where the sum of the fair value of the consideration transferred
(or the fair value of the issued equity securities) and the fair value of the acquirer’s previously held equity interestin the acquiree is less than the acquirer’s interest in the fair value of the acquiree’s identifiable net assets, the
difference shall be accounted for according to the following requirements: (i) the acquirer shall reassess the
measurement of the fair values of the acquiree’s identifiable assets, liabilities and contingent liabilities and
measurement of the fair value of the consideration transferred (or the fair value of the issued equity securities) and
the fair value of the acquirer’s previously held equity interest in the acquiree; (ii) if after that reassessment, the
sum of the fair value of the consideration transferred (or the fair value of the issued equity securities) and the fair
value of the acquirer’s previously held equity interest in the acquiree is still less than the acquirer’s interest in thefair values of the acquiree’s identifiable net assets, the acquirer shall recognize the remaining difference
immediately in the income statement for the current period.5. Consolidated financial statementsThe scope of consolidation of consolidated financial statements is determined based on control, and includes the
financial statements of the Company and its subsidiaries as at June 30, 2018. A subsidiary is an enterprise or entitythat is controlled by the Group (including an enterprise, seperable part of the investee and a structured entity
controlled by the Company).
The financial statements of the subsidiaries are prepared for the same reporting period as the Company, usingconsistent accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flowsrelating to transactions between members of the Group are eliminated in full on consolidation.
When the current loss belong to minorities of the subsidiary exceeds the beginning equity of the subsidiary belongto minorities, the exceeded part will still deduct the equity belong to minorities.
With respect to subsidiaries acquired through business combinations involving entities not under common control,the operating results and cash flows of the acquiree should be included in the consolidated financial statements,from the day that the Group gains control, till the Group ceases the control of it. While preparing the
consolidated financial statements, the acquirer should adjust the subsidiary’s financial statements, on the basis of
the fair values of the identifiable assets, liabilities and contingent liabilities recognized on the acquisition date.
With respect to subsidiaries acquired through business combinations involving entities under common control, theoperating results and cash flows of the acquiree should be included in the consolidated financial statements fromthe beginning of the period in which the combination occurs.
If the changes of relevant facts and circumstances will result in the changes of one or more control elements, thenthe Group should reassess whether has taken control of the investee.
6. Joint venture arrangement classification and joint operationJoint venture arrangements are classified into joint operation and joint venture. Joint operation refers to those joint
venture arrangements, relevant assets and liabilities of which are enjoyed and assumed by the joint venturers. Jointventures refer to those joint venture arrangements, only the right to net assets of which is enjoyed by the jointventurers.
Any joint venturer shall recognize the following items related to its share of benefits in the joint operation andconduct accounting treatment in accordance with relevant accounting standards for business enterprises: assets itsolely holds and its share of jointly-held assets based on its percentage; liabilities it solely assumes and its share ofjointly-assumed liabilities based on its percentage; incomes from sale of output enjoyed by it from the jointoperation; incomes from sale of output from the joint operation based on its percentage; and separate costs andcosts for the joint operation based on its percentage.
7. Cash and cash equivalentsCash comprises cash on hand and bank deposits which can be used for payment at any time; Cash equivalents are
short-term, highly liquid investments held by the Group, that are readily convertible to known amounts of cashand which are subject to an insignificant risk of changes in value.
8. Foreign currency translationThe Group translates the amount of foreign currency transactions occurred into functional currency.
The foreign currency transactions are recorded, on initial recognition in the functional currency, by applying to theforeign currency amount at the spot exchange rate on the transaction dates. Foreign currency monetary items are
translated using the spot exchange rate quoted by the People’s Bank of China at the balance sheet date. The
exchange gains or losses arising from occurrence of transactions and exchange of currencies, except for thoserelating to foreign currency borrowings specifically for construction and acquisition of fixed assets capitalized, aredealt with in the profit and loss accounts. Non-monetary foreign currency items measured at historical cost remainto be translated at the spot exchange rate prevailing on the transaction date, and the amount denominated in thefunctional currency should not be changed. Non-monetary foreign currency items measured at fair value should betranslated at the spot exchange rate prevailing on the date when the fair values are determined. The exchangedifference thus resulted should be charged to the current income or other comprehensive income account of thecurrent period.
When preparing consolidated financial statements, the financial statements of the subsidiaries presented in foreigncurrencies are translated into Renminbi as follows: asset and liability accounts are translated into Renminbi at
exchange rates ruling at the balance sheet date; shareholders’ equity accounts other than retained profits are
translated into Renminbi at the applicable exchange rates ruling at the transaction dates; income and expense inincome statement are translated into Renminbi at spot exchange rates on transaction occurrence; total difference
between translated assets and translated liabilities and shareholders’ equity is separately listed as “foreigncurrency exchange differences” below retained profits. The translation difference arising from the settlement of
oversea subsidiaries is charged to the current liquidation profit and loss in proportion to the settlement ratio of theassets concerned.
Foreign currency cash flows and the cash flows of foreign subsidiaries should be translated using the averageexchange rate prevailing on the transaction month during which the cash flows occur. The amount of the effect onthe cash arising from the change in the exchange rate should be separately presented as an adjustment item in thecash flow statement.
9. Financial instrumentsA financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity.
Recognition and derecognitionThe Group recognizes a financial asset or a financial liability, when the Group becomes a party to the contractualprovision of the instrument.The Group derecognizes a financial asset (or part of a financial asset, or part of a group of similar financial assets),be written off from the account and balance sheet , when the following conditions are met:
(1) the rights to receive cash flows from the asset have expired;(2) the Group transferred the rights to receive cash flows from the asset, or has assumed an obligation to pay the
received cash flows in full without material delay to a third party under a “pass-through” arrangement; and
either (a) has transferred substantially all the risks and rewards of the asset, or (b) has neither transferred norretained substantially all the risks and rewards of the asset, but has transferred control of the asset.
If the underlying obligation of a financial liability has been discharged or cancelled or has expired, the financialliability is derecognized. If an existing financial liability is replaced by the same creditor, with a new financialliability that has substantially different terms, or if the terms of an existing financial liability are substantiallyrevised, such replacement or revision is accounted for as the derecognition of the original liability and therecognition of a new liability, and the difference thus resulted is recognized in profit or loss for the current period.
When buy or sell financial instruments under a normal way, financial instruments are recognized or derecognizedaccording to the transaction date accounting. A normal way to buy or sell financial instruments refers to,according to the contract terms, receive or deliver financial instruments within the period as required by legalregulation or generally accepted guidelines. Transaction date refers to the date when the Group committed to buyor sell financial instruments.
Classification and measurement of financial assets
Financial assets are, on initial recognition, classified into the following categories: financial assets at fair valuethrough profit or loss, held-to-maturity investments, loans and receivables, available-for-sale financial assets, andthe derivatives designated as effective hedging instrument. A financial asset is recognized initially at fair value.In the case of financial assets at fair value through profit or loss, relevant transaction costs are directly charged tothe profit and loss of the current period; transaction costs relating to financial assets of other categories areincluded in the amount initially recognized.
The subsequent measurement of financial assets depends on their classification as follows:
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held for trading and those designatedupon initial recognition as at fair value through profit or loss. A financial asset held for trading is the financialasset that meets one of the following conditions: the financial asset is acquired for the purpose of selling it in ashort term; the financial asset is a part of a group of identifiable financial instruments that are collectivelymanaged, and there is objective evidence indicating that the enterprise recently manages this group for thepurpose of short-term profits; the financial asset is a derivative, except for a derivative that is designated aseffective hedging instrument, or a financial guarantee contract, or a derivative that is linked to and must be settledby delivery of an unquoted equity instrument (without a quoted price from an active market) whose fair valuecannot be reliably measured. For such kind of financial assets, fair values are adopted for subsequentmeasurement. All the realized or unrealized gains or losses on these financial assetsare recognized in profit or loss for the current period. Dividend or interest income related to financial assets at fairvalue through profit or loss is recognized in profit or loss for the current period.
Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixedmaturity that an entity has the positive intention and ability to hold to maturity. Such kind of financial assets aresubsequently measured at amortized cost using the effective interest method. Gains or losses arising fromderecognition, impairment or amortization are recognized in profit or loss for the current period.
Loans and receivablesLoans and receivables are non-derivative financial assets with fixed or determinable payments that are not quotedin an active market. Such kind of financial assets are subsequently measured at amortized cost using the effectiveinterest method. Gains or losses arising from derecognition, impairment or amortization are recognized in profit orloss for the current period.
Available-for-sale financial assetsAvailable-for-sale financial assets are those non-derivative financial assets that are designated as available for saleor are not classified as the above financial assets. After initial recognition, available-for-sale financial assets aremeasured at fair value. The premium/discount is amortized using effective interest method and recognized asinterest income or expense. A gain or loss arising from a change in the fair value of an available-for-sale financialasset is recognized in other comprehensive income as a component of capital reserve, except for impairmentlosses and foreign exchange gains and losses resulted from monetary financial assets, until the financial asset isderecognized or determined to be impaired, at which time the accumulated gain or loss previously recognized incapital reserve is removed from capital reserve and recognized in profit or loss for the current period. Interests anddividends relating to an available-for-sale financial asset are recognized in profit or loss for the current period.
The equity investment instruments, for which there is no quoted price in active market and whose fair valuecannot be reliably measured, shall be measured at cost.
Classification and measurement of financial liabilities
The Group’s financial liabilities are, on initial recognition, classified into the following categories: financial
liabilities at fair value through profit or loss, other financial liabilities, and the derivatives designated as effectivehedging instrument. For financial liabilities at fair value through profit or loss, relevant transaction costs aredirectly recognized in profit or loss for the current period, and transaction costs relating to other financialliabilities are included in the initial recognition amounts.The subsequent measurement of financial liabilities depends on their classification as follows:
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 as at fair value through profit or loss. A financial liability held for trading is the financial liability thatmeets one of the following conditions: the financial liability is assumed for the purpose of repurchasing it in ashort term; the financial liability is a part of a group of identifiable financial instruments that are collectivelymanaged, and there is objective evidence indicating that the enterprise recently manages this group for thepurpose of short-term profits; the financial liability is a derivative, except for a derivative that is designated andeffective hedging instrument, or a financial guarantee contract, or a derivative that is linked to and must be settledby delivery of an unquoted equity instrument (without a quoted price form an active market) whose fair value
cannot be reliably measured. For such kind of financial liabilities, fair values are adopted for subsequentmeasurement. All the realized or unrealized gains or losses on these financial liabilities are recognized in profit orloss for the current period.
Other financial liabilitiesAfter initial recognition, these financial liabilities are measured at amortized cost using the effective interestmethod.
Offsetting of financial instrumentsts
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is acurrently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis,or to realise the assets and settle the liabilities simultaneously.
Impairment of financial assets
The Group assesses the carrying amount of a financial asset, at the balance sheet date. If there is objectiveevidence that the financial asset is impaired, the Group makes provision for the impairment loss. Objectiveevidence that a financial asset is impaired is evidence arising from one or more events that occurred after theinitial recognition of the asset and that event has an impact on the estimated future cash flows of the financialasset which can be reliably estimated.
Financial assets carried at amortized costWhen the financial assets carried at amortized cost are impaired, the carrying amount of the financial asset shallbe reduced to the present value of the estimated future cash flow (excluding future credit losses that have not beenincurred). The amount of reduction is recognized as an impairment loss in the income statement. Present value of
estimated future cash flow is discounted at the financial asset’s original effective interest rate and includes the
value of any related collateral.
If a financial asset is individually significant, the Group assesses the asset individually for impairment, andrecognizes the amount of impairment in the income statement if there is objective evidence of impairment. For afinancial asset that is not individually significant, the Group can include the asset in a group of financial assetswith similar credit risk characteristics and collectively assess them for impairment. For financial assets that are notimpaired upon individual tests (including financial assets that are individually significant or insignificant),impairment testsshould be conducted on them again by including them in the group of financial assets. Assets forwhich an impairment loss is individually recognized will not be included in a collective assessment ofimpairment.
If, subsequent to the recognition of an impairment loss on a financial asset carried at amortized cost, there isobjective evidence of a recovery in value of the financial asset which can be related objectively to an eventoccurring after the impairment was recognized, the previously recognized impairment loss is reversed andrecognized in the income statement. However, the reversal shall not result in a carrying amount of the financialasset that exceeds what the amortized cost would have been had the impairment not been recognized at the date
the impairment is reversed.
Available-for-sale financial assetsWhen there is objective evidence that the asset is impaired, the cumulative loss from declines in fair value that hadbeen recognized directly in capital reserve are removed from equity and recognized in the income statement. Theamount of the cumulative loss that is removed from capital reserves and recognized in the income statement (netof any principal repayment and amortization) and current fair value, less any impairment loss on that financialasset previously recognized in the income statement.
In the case of equity investments classified as available for sale, objective evidence would include a significant or
prolonged decline in the fair value of an investment below its cost. The determination of what is “significant” or''prolonged” requires judgement. “Significant” is evaluated against the original cost of the investment and“prolonged” against the period in which the fair value has been below its original cost. Impairment losses on
equity instruments classified as available for sale are not reversed through the income statement. Increases in theirfair value after impairment are recognised directly in other comprehensive income.
The determination of what is “significant” or “prolonged” requires judgement. In making this judgement, the
Group evaluates, among other factors, the duration or extent to which the fair value of an investment is less thanits cost.
Financial assets carried at costIf objective evidence shows that the financial assets carried at cost are impaired, the difference between thepresent value discounted at the prevailing rate of return of similar financial assets and the book value of thefinancial asset are provided as a provision and recognized in the current income statement. The impairment lossrecognized cannot be reversed.
Transfer of financial assets
If the Group transfers substantially all the risks and rewards of ownership of the financial asset, the Groupderecognizes the financial asset; and if the Group retains substantially all the risks and rewards of the financialasset, the Group does not derecognize the financial asset.
If the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset,the Group determines whether it has retained control of the financial asset. In this case: (i) if the Group has notretained control, it derecognizes the financial asset and recognize separately as assets or liabilities any rights andobligations created not retained in the transfer; (ii) if the Group has retained control, it continues to recognize thefinancial asset to the extent of its continuing involvement in the transferred financial asset and recognizes anassociated liability.
10. Accounts receivable
(1) Accounts receivable which is individually significant and analyzed individually for provision:
Criterion for individually significant items | Accounts receivable balance greater than RMB15 million due from non-related parties |
Method for provision | A provision of the difference between recoverable amount and book value is recognized based on individually analysis |
(2) Accounts receivable analyzed by credit risk charactristics group for provision:
Criterion for group | |
Group 1 | Accounts receivable due from non-related parties other than individually significant items or insignificatntly but analyzed individually for provision |
Group 2 | Accounts receivable due from related parties |
Method for the provision of group | |
Group 1 | Making provision according to aging analysis |
Group 2 | A provision of the difference between recoverable amount and book value is recognized based on individually analysis. |
Group 1, the provision analyzed according to aging analysis:
Aging | Provision percentage (%) | Provision percentage (%) |
Within 1 year | ||
Within 6 months | 0 | 0 |
6 to 12 months | 5 | 5 |
1 to 2 years | 10 | 10 |
2 to 3 years | 30 | 30 |
3 to 4 years | 50 | 50 |
4 to 5 years | 80 | 80 |
Above 5 years | 100 | 100 |
(3) Accounts receivable which is individually insignificant but analyzed individually for provision
Criterion for individually analysis for provision | There is objective evidence that the accounts receivable due from non-related parties is impaired and the future recoverable possibility is little. |
Method for provision | A provision of the difference between recoverable amount and book value is recognized individually. |
11. InventoryInventory includes raw materials, goods in transit, work in progress, finished goods, consigned processing
materials, low-value consumables and spare parts.
Inventory is initially carried at the actual cost. Inventory costs comprise all costs of purchase, costs of conversionand other costs incurred in bringing the inventory to its present location and condition.Weighted average methodis assigned to the determination of actual costs of inventories. One-off writing off method is adopted inamortization of low-value consumables.
The Group applies a perpetual counting method of inventory.
At the balance sheet date, the inventory is stated at the lower of cost and net realizable value. If the cost is higherthan the net realizable value, provision for the inventory should be made through profit or loss. If factors thatresulted in the provision for the inventory have disappeared and made the net realizable value higher than theirbook value, the amount of the write-down should be reversed, to the extent of the amount of the provision for theinventory, and the reversed amount should be recognized in the income statement for the current period.
Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs ofcompletion and the estimated costs necessary to make the sale. The impairment provision should be made on abasis of each item of inventories according to the difference between cost and net realizable value. For largenumbers of inventories at relatively low unit prices, the provision for loss on decline in value of inventoriesshould be made by category.
12. Long-term equity investments include investments in subsidiaries, joint ventures and associatesThe long-term investments are initially recorded at costs on acquisition. Long-term investments acquired from
business combination under common control shall be initially measured at the carrying value of the held interestof the party being acquired; The difference between the initial meassued amounts and the book value ofconsideration, adjust the capital reserves (if the capital reserve is insufficient to be offset, retained earnings shouldbe adjusted); Long-term investments acquired from business combination not under common control shall beinitially measured at the cost (or, the sum of the cost and the carrying value of the previously held equity interestin the acquire for the business combination achieved by stages), which include the fair value of the considerationpaid, the liabilities beard and the fair value of issued equity instrument; the other comprehensive income producedfrom the investment before the acquisition should be transferred into the current year investment income ondisposal. Long-term investments acquired not from business combination are initially measured at 1)theconsideration together with the cost necessary incurred; 2) the fair value of the equity instruments; and 3) theconsideration agreed in the investment agreement by the investors, otherwise the agreed consideration were notfair.
The Company adopted cost method to account for long-term investments in the subsidiaries in the separatefinancial statements of the Company. Control is the power to govern the financial and operating policies of anentity so as to obtain benefits from its activities.
Under cost method, the long-term equity investment is valued at the cost of the initial investment. The cost oflong-term equity investment should be adjusted in case of additional investment or disinvestments. When cashdividends or profits are declared by the invested enterprise is recognized as investment income in current period.
The equity method is applied to account for long-term equity investments, when the Group has jointly control, or
significant influence on the investee enterprise. Joint control is the contractually agreed sharing of control over aneconomic activity, and exists only when the strategic financial and operating decisions relating to the activityrequire the unanimous consent of the parties sharing control (the venturers). Significant influence is the power toparticipate in the financial and operating policy decisions of an economic activity but is not control or joint controlover those policies.
Under equity method, when the initial investment cost of a long-term equity investment exceeds the investing
enterprise’s interest in the fair values of the investee’s identifiable net assets at the acquisition date, the differenceis accounted for as an initial cost. As to the initial investment cost is less than the investing enterprise’s interest inthe fair values of the investee’s identifiable net assets at the acquisition date, the difference shall be charged to the
income statement for the current period, and the cost of the long-term equity investment shall be adjustedaccordingly.
Under equity method, the Group recognizes its share of post-acquisition equity in the investee enterprise for thecurrent period as a gain or loss on investment, and also increases or decreases the carrying amount of theinvestment. When recognizing its share in the net profit or loss of the investee entities, the Group should, based onthe fair values of the identifiable assets of the investee entity when the investment is acquired, in accordance with
the Group’s accounting policies and periods, after eliminating the portion of the profits or losses, arising from
internal transactions with joint ventures and associates, attributable to the investing entity according to the shareratio (but losses arising from internal transactions that belong to losses on the impairment of assets, should berecognized in full), recognize the net profit of the investee entity after making appropriate adjustments. The book
value of the investment is reduced to the extent that the Group’s share of the profit or cash dividend declared to be
distributed by the investee enterprise. However, the share of net loss is only recognized to the extent that the bookvalue of the investment is reduced to zero, except to the extent that the Group has incurred obligations to assumeadditional losses. The Group shall adjust the carrying amount of the long-term equity investment for other changes
in owners’ equity of the investee enterprise (other than net profits or losses), and include the corresponding
adjustments in equity, which should be realized through profit or loss in subsequent settlement of the respectivelong-term investment.
On settlement of a long-term equity investment, the difference between the proceeds actually received and thecarrying amount shall be recognized in the income statement for the current period. As to other comprehensiveincome recognized based on measurement of the original equity investment by employing the equity method,accounting treatment shall be made on the same basis as would be required if the invested entity had directlydisposed of the assets or liabilities related thereto when measurement by employing the equity method isterminated. As to any change in owners' equity of the invested entity other than net profit or loss, othercomprehensive income and profit distribution, the investing party shall be transferred to the income statement forthe current period. If the remaining equities still be measured under the equity method, accumulative changepreviously recorded in other comprehensive income shall be transferred to current profit or loss, in measurementon the same basis as the invested entity had directly disposed of the assets or liabilities related thereto. The incomeor loss recorded in the equity directly should been transferred to the current income statement on settlement of theequity investment on the disposal proportion.
13. Investment propertyInvestment property are properties held to earn rentals or for capital appreciation, or both, including rented land
use right, land use right which is held and prepared for transfer after appreciation, and rented building.
The initial measurement of the investment property shall be measured at its actual cost. The follow-up expensespertinent to an investment property shall be included in the cost of the investment property, if the economicbenefits pertinent to this real estate are likely to flow into the enterprise, and, the cost of the investment propertycan be reliably measured. Otherwise, they should be included in the current profits and losses upon occurrence.
The group adopts the cost method to make follow-up measurement to the investment property. The buildings aredepreciated under straight-line method.
14. Fixed asset(1) Recognition of fixed assets
A fixed asset probably shall be recognized only when the economic benefits associated with the asset will flow tothe Group and the cost of the asset can be measured reliably. Subsequent expenditure incurred for a fixed assetthat meet the recognition criteria shall be included in the cost of the fixed asset, and the book value of thecomponent of the fixed asset that is replaced shall be derecognized. Otherwise, such expenditure shall berecognized in the income statement in the period during which they are incurred.
Fixed assets are initially measured at actual cost on acquisition. The cost of a purchased fixed asset comprises thepurchase price, relevant taxes and any directly attributable expenditure for bringing the asset to working conditionfor its intended use, such as delivery and handling costs, installation costs and other surcharges.
(2) Depreciation method of fixed assetsFixed assets are depreciated on straight-line basis. The estimated useful lives, estimated residual values and annualdepreciation rates for each category of fixed assets are as follows:
Category | Deprecation period | Residual rate (%) | Yearly deprecation rate (%) |
Buildings | 20 to 35 years | 3% | 2.77%-4.85% |
Machinery (Note) | 5 to 20 years | 3% | 4.85%-19.40% |
Vehicles | 4 to 12 years | 3% | 8.08%-24.25% |
Others | 3 to 21 years | 3% | 4.62%-32.33% |
Note: the moulds in machinery should be depreciated in units-of-production method. |
(3) OthersThe Group reviews the useful life and estimated net residual value of a fixed asset and the depreciation methodapplied at least at the end of each year and makes adjustments if necessary.
15. Construction in progressThe cost of construction in progress is determined according to the actual expenditure for the construction,
including all necessary construction expenditure incurred during the construction period, borrowing costs thatshould be capitalized before the construction reaches the condition for intended use and other relevant expenses.
Construction in progress is transferred to fixed assets when the asset is ready for its intended use.16. Borrowing costsBorrowing costs are interest and other costs incurred by the Group in connection with the borrowing of the funds.
Borrowing costs include interest, amortization of discounts or premiums related to borrowings, ancillary costsincurred in connection with the arrangement of borrowings, and exchange differences arising from foreigncurrency borrowings.
The borrowing costs that are directly attributable to the acquisition, construction or production of a qualifyingasset are capitalized, otherwise the borrowing costs are expensed in the period during which they are incurred. Aqualifying asset is an asset (an item of property, plant and equipment and inventory etc.) that necessarily takes asubstantial period of time to get ready for its intended use of sale.
The capitalization of borrowing costs are as part of the cost of a qualifying asset shall commence when:
1) expenditure for the asset is being incurred;2) borrowing costs are being incurred; and3) activities that are necessary to prepare the asset for its intended use or sale are in progress.
Capitalization of borrowing costs shall be ceased when substantially all the activities necessary to prepare thequalifying asset for its intended use or sale have been done. And subsequent borrowing costs are recognized in theincome statement.
During the capitalization period, the amount of interest to be capitalized for each accounting period shall bedetermined as follows:
1) where funds are borrowed for a specific-purpose, the amount of interest to be capitalized is the actual
interest expense incurred on that borrowing for the period less any bank interest earned form depositing theborrowed funds before being used on the asset or any investment income on the temporary investment ofthose funds;2) where funds are borrowed for a general-purpose, the amount of interest to be capitalized on such
borrowings is determined by applying a weighted average interest rate to the weighted average of theexcess amounts of cumulative expenditure on the asset over and above the amounts of specific-purposeborrowings.
During the construction or manufacture of assets that are qualified for capitalization, if abnormal discontinuance,other than procedures necessary for their reaching the expected useful conditions, happens, and the duration of the
discontinuance is over three months, the capitalization of the borrowing costs is suspended. Borrowing costsincurred during the discontinuance are recognized as expense and charged to the income statement of the currentperiod, till the construction or manufacture of the assets resumes.
17. Intangible assetAn intangible asset probably shall be recognized only when the economic benefits associated with the asset will
flow to the Group and the cost of the asset can be measured reliably. Intangible assets are initially measured atcost. The cost of intangible assets acquired in a business combination is the fair value as at the date of acquisition,if the fair value can be reliably measured.
The useful life of the intangible assets shall be assessed according to the estimated beneficial period expected togenerate economic benefits. An intangible asset shall be regarded as having an indefinite useful life when there isno foreseeable limit to the period over which the asset is expected to generate economic benefits for the Group.
The useful lives of the intangible assets are as follow:
Useful life
Land use right 43 to 50 yearsSoftware 2 yearsTrademark 10 yearsNon-patent technology 5 years
Land use rights that are purchased or acquired through the payment of land use fees are accounted for asintangible assets. With respect to self-developed properties, the corresponding land use right and buildings shouldbe recorded as intangible and fixed assets separately. As to the purchased properties, if the reasonable allocation ofoutlays cannot be made between land and buildings, all assets purchased will be recorded as fixed assets.The costof a finite useful life intangible asset is amortized using the straight-line method during the estimated useful life.For an intangible asset with a finite useful life, the Group reviews the estimated useful life and amortizationmethod at least at the end of each year and adjusts if necessary.
The Group should test an intangible asset with an indefinite useful life for impairment by comparing itsrecoverable amount with its carrying amount annually, whenever there is an indication that the intangible assetmay be impaired. An intangible asset with an indefinite useful life shall not be amortized.
The useful life of an intangible asset that is not being amortised shall be reviewed each period to determinewhether events and circumstances continue to support an indefinite useful life assessment for that asset. If thereare indicators that the intangible asset has finite useful life, the accounting treatment would be in accordance withthe intangible asset with finite useful life.
18. Research and development expendituresThe Group classified the internal research and development expenditures as follows: research expenditures and
development cost.
The expenditures in research stage are charged to the current income on occurrence.The expenditures in development stage are capitalized that should meet all the conditions of (a) it is technicallyfeasible to finish intangible assets for use or sale; (b) it is intended to finish and use or sell the intangible assets; (c)the usefulness of methods for intangible assets to generate economic benefits shall be proved, including being ableto prove that there is a potential market for the products manufactured by applying the intangible assets or there isa potential market for the intangible assets itself or the intangible assets will be used internally; (d) it is able tofinish the development of the intangible assets, and able to use or sell the intangible assets, with the support ofsufficient technologies, financial resources and other resources; and (e) the development expenditures of the
intangible assets can be reliably measured. Expenses incurred that don’t meet the above requirements
unanimously should be expensed in the income statement of the reporting period.
The Group discriminates between research and development stage with the condition that the project research hasbeen determined, in which the relevant research complete all the fractionalization of products measurements andfinal product scheme under final approval of management. The expenditures incurred before project-determinationstage is charged to the current income, otherwise it is recorded as development cost.
19. Long-term deferred expensesThe long-term deferred expenses represent the payment for the improvement on buildings and other expenses,
which have been paid and should be deferred in the following years. Long-term deferred expenses are amortizedon the straight-line basis over the expected beneficial period and are presented at actual expenditure net ofaccumulated amortization.
20. Contingent liabilitiesExcept contingent liability recognized in a business combination, the Group recognizes an contingent liability
when the obligation arising from a contingency meets the following conditions:
1) the obligation is a present obligation of the Group;2) it is probable that an outflow of economic benefits from the Group will be required to settle the obligation;3) a reliable estimate can be made of the amount of the obligation.
Contingent liabilities are initially measured according to the current best estimate for the expenditure necessaryfor the performance of relevant present obligations, with comprehensive consideration given to factors such as therisks, uncertainty and time value of money relating to contingencies. The book value of the contingent liabilitiesshould be reviewed at each balance sheet date. If there is objective evidence showing that the book value cannotreflect the present best estimate, the book value should be adjusted according to the best estimate.
21. Share-based paymentsThe share-based payments shall consist of equity-settled share-based payments and cash-settled share-based
payments. The term "equity-settled share-based payment" refers to a transaction in which an enterprise grantsshares or other equity instruments as a consideration in return for services.
The equity-settled share-based payment in return for employee services shall be measured at the fair value of theequity instruments granted to the employees. As to an equity-settled share-based payment in return for services ofemployees, if the right may be exercised immediately after the grant, the fair value of the equity instruments shall,on the date of the grant, be included in the relevant cost or expense and the capital reserves shall be increasedaccordingly. As to a equity-settled share-based payment in return for employee services, if the right cannot beexercised until the vesting period comes to an end or until the prescribed performance conditions are met, then oneach balance sheet date within the vesting period, the services obtained in the current period shall, based on thebest estimate of the number of vested equity instruments, be included in the relevant costs or expenses and thecapital reserves at the fair value of the equities instruments on the date of the grant. The fair value is determinedusing Black-Scholes model (Note 13).
Within the vesting period or before the prescribed performance conditons are met, the relevant costs or expensesand capital reserves shall be determined and increased based on the best estimate of the number of vested equityinstruments on each balance sheet date.
For awards that do not ultimately vest because non-market performance and/or service conditions have not beenmet, no expense is recognised. Where awards include a market or non-vesting condition, the transactions aretreated as vesting irrespective of whether the market or non-vesting condition is satisfied, provided that all otherperformance and/or service conditions are satisfied.
Where the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the termshad not been modified, if the original terms of the award are met. In addition, an expense is recognised for anymodification that increases the total fair value of the share-based payments, or is otherwise beneficial to theemployee as measured at the date of modification.
Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and anyexpense not yet recognised for the award is recognised immediately. This includes any award where non-vestingconditions within the control of either the Group or the employee are not met. However, if a new award issubstituted for the cancelled award, and is designated as a replacement award on the date that it is granted, thecancelled and new awards are treated as if they were a modification of the original award, as described in theprevious paragraph.
22. RevenueRevenue is recognized only when an inflow of economic benefits is probable, the amount of which can be reliably
measured, and all of the following conditions are qualified.
Revenue from the sale of goodsThe Group has transferred to the buyer the significant risks and rewards of ownership of the goods; the Groupretains neither continuing management involvement to the degree usually associated with ownership nor effectivecontrol over the goods sold; and the amount of revenue can be measured reliably. The proceeds earned from salesof goods are determined based on the amount received or receivable as stipulated in the contract or agreement,otherwise the amount is not fair; If the amount received or receivable as stipulated in the contract or agreement is
collected in a defer method, it includes the financing elements and should be determined according to the fairvalue of the amount received or receivable as stipulated in the contract or agreement.
Revenue from the rendering of servicesWhen the outcome of a transaction involving the rendering of services can be estimated reliably at the balancesheet date, revenue associated with the transaction is recognized using the percentage of completion method, orotherwise, the revenue is recognized to the extent of costs incurred that are expected to be recoverable. Theoutcome of a transaction involving rendering of services can be estimated reliably when all of the followingconditions are satisfied: the amount of revenue can be measured reliably; it is probable that the associatedeconomic benefits will flow into the Group; the stage of completion of the transaction can be measured reliably;and the costs incurred and to be incurred for the transaction can be measured reliably. The Group determines thestage of completion of a transaction involving the rendering of services by using the proportion of servicesperformed to date to the total services to be performed. The total amount of revenue earned from rendering serviceare determined based on the amount received or receivable as stipulated in the contract or agreement, otherwisethe amount is not fair.
Interest income
It should be measured based on the length of time for which the Group’s cash is used by others and the applicable
effective interest rate.
Royalty income
Royalty income is recognized according to the agreed time and method by both parties in related contracts.
Rental incomeRental income from operating leases is recognized by the lesser in the income statement on a straight-line basisover the lease term.
23. Government grantsA government grant is recognized only when there is reasonable assurance that the entity will comply with any
conditions attached to the grant and the grant will be received. Monetary grants are accounted for at received orreceivable amount. Non-monetary grants are accounted for at fair value. If there is no reliable fair value available,the grants are accounted for at nominal amount.
A government grant which is specified by the government documents to be used to purchase and construct thelong-term assets shall be recognized as the government grant related to assets. A government grant which is notspecified by the government documents shall be judged based on the basic conditions to obtain the governmentgrant. The one whose basic condition was to purchase and construct the long-term assets shall be recognized asthe government grant related to assets.
The other government grant shall be recognized as the government grant related to gain. A grant relating toincome, which as compensation for future costs, is recognized as deferred income initially, and as income whenthe related cost incurs. The grant as compensation for costs already incurred should be recognized as income for
the current period. A grant relating to assets is recognized as deferred income initially, and as income evenlyamong the useful life of the related assets. The grant accounted for at nominal amount is recognized as income forthe current period.
24. LeasesA finance lease is a lease that transfers in substance all the risks and rewards incident to ownership of an asset. An
operating lease is a lease other than a finance lease.
The Group recording the operating lease as a lessee
Lease payments under an operating lease are recognized by a lessee on a straight-line basis over the lease term,and either included in the cost of another related asset or charged to the income statement for the current period.
The Group recording the operating lease as a lessor
Rental income from operating leases is recognized by the lesser in the income statement on a straight-line basisover the lease term.
25. Employee benefits
Employee benefits refer to all kinds of remunerations or compensation made by enterprises to theiremployees in exchange for services provided by the employees or termination of labor relation. Employeecompensation includes short-term compensation and post-employment benefits. The benefits offered byenterprises to the spouse, children, the dependants of the employee, the family member of deceased employee andother beneficiaries are also employee compensation.Short-term employee salaries
During the accounting period of employee rendering service, the actural employees salaries and are charged to thestatement of profit or loss as they become payable in balance sheet.
Post-employment benefits (Defined contribution plans)
The employees of the Group participate in pension insurance, which is managed by local government and therelevant expenditure, is recognized, when incurred, in the costs of relevant assets or the profit and loss for thecurrent period.
Post-employment benefits (Defined benefit plan)
The Group operates a defined benefit pension plan which requires contributions to be made to a separatelyadministered fund. The benefits are unfunded. The cost of providing benefits under the defined benefit plan isdetermined using the projected unit credit actuarial valuation method.
Remeasurements arising from defined benefit pension plans are recognised immediately in the consolidated
statement of financial position with a corresponding debit or credit to retained profits through othercomprehensive income in the period in which they occur. Remeasurements are not reclassified to profit or lossin subsequent periods.
Past service costs are recognised in profit or loss at the earlier of: the date of the plan amendment or curtailment;and the date that the Group recognises restructuring-related costs
Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Grouprecognises the following changes in the net defined benefit obligation under administrative expenses in the
consolidated statement of profit or loss by function:?service costs comprising current service costs, past-service
costs, gains and losses on curtailments and non-routine settlements;net interest expense or income
Termination benefits
Termination benefits are recognised at the earlier of when the Group can no longer withdraw the offer of thosebenefits and when the Group recognises restructuring costs involving the payment of termination benefits.
26. Income taxIncome tax comprises current and deferred tax. Income tax is recognized as an income or an expense and include
in the income statement for the current period, except to the extent that the tax arises from a business combinationor if it relates to a transaction or event which is recognized directly in equity.
Current income tax liabilities or assets for the current and prior periods, are measured at the amount expected tobe paid (or recovered) according to the requirements of tax laws.
For temporary differences at the balance sheet date between the tax bases of assets and liabilities and theircarrying amounts, and temporary differences between the carrying amounts and the tax bases of items, the taxbases of which can be determined for tax purposes, but which have not been recognized as assets and liabilities,deferred taxes are provided using the liability method.
A deferred tax liability is recognized for all taxable temporary differences, except:
(1) to the extent that the deferred tax liability arises from the initial recognition of goodwill or the initial
recognition of an asset or liability in a transaction which contains both of the following characteristics: thetransaction is not a business combination and at the time of the transaction, it affects neither the accountingprofit nor taxable profit or loss.
(2) in respect of taxable temporary differences associated with investments in subsidiaries, associates and
interests in jointly-controlled enterprises, where the timing of the reversal of the temporary differences canbe controlled and it is probable that the temporary differences will not reverse in the foreseeable future.
A deferred tax asset is recognized for deductible temporary differences, carry forward of unused tax credits andunused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible
temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized except:
(1) where the deferred tax asset relating to the deductible temporary differences arises from the initial
recognition of an asset or liability in a transaction that is not a business combination and, at the time of thetransaction, affects neither the accounting profit nor taxable profit or loss; and(2) in respect of deductible temporary differences associated with investments in subsidiaries, associates and
interests in joint ventures, deferred tax assets are only recognized to the extent that it is probable that thetemporary differences will reverse in the foreseeable future and taxable profit will be available againstwhich the temporary differences can be utilized.
At the balance sheet date, deferred tax assets and liabilities are measured at the tax rates that are expected to applyto the period when the asset is realized or the liability is settled, according to the requirements of tax laws. Themeasurement of deferred tax assets and deferred tax liabilities reflects the tax consequences that would followfrom the manner in which the Group expects at the balance sheet date, to recover the assets or settle the liabilities.
At the balance sheet date, the Group reviews the book value of deferred tax assets. If it is probable that sufficienttaxable income cannot be generated to use the tax benefits of deferred tax assets, the book value of deferred taxassets should be reduced. When it is probable that sufficient taxable income can be generated, the amount of suchreduction should be reversed. When it is probable that sufficient taxable income can be generated, the amount ofsuch reduction should be reversed.
27. Impairment of assetsThe Group determines the impairment of assets, other than the impairment of inventory, deferred income taxes,
and financial assets, using the following methods:
The Group assesses at the balance sheet date whether there is any indication that an asset may be impaired. If anyindication exists that an asset may be impaired, the Group estimates the recoverable amount of the asset andperforms impairment tests. Goodwill arising from a business combination and an intangible asset with anindefinite useful life are tested for impairment at least at the end of every year, irrespective of whether there is anyindication that the asset may be impaired. An intangible asset which is not ready for its intended use is tested forimpairment at least at the end of every year.
The recoverable amount of an asset is the higher of its fair value less costs to sell and the present value of thefuture cash flow expected to be derived from the asset. The Group estimates the recoverable amount on anindividual basis. If it is not possible to estimate the recoverable amount of the individual asset, the Groupdetermines the recoverable amount of the asset group to which the asset belongs. Identification of an asset groupis based on whether major cash flows generated by the asset group are independent of the cash flows from otherassets or asset groups.
When the recoverable amount of an asset or asset group is less than its carrying amount, the carrying amount isreduced to the recoverable amount. The impairment of asset is provided for and the impairment loss is recognizedin the income statement for the current period.
For the purpose of impairment testing, the carrying amount of goodwill acquired in a business combination isallocated, on a reasonable basis, to related asset groups; if it is impossible to allocate to the related asset groups, itis allocated to each of the related sets of asset groups. Each of the related asset groups or related sets of assetgroups is a group or set of asset group that is able to benefit from the synergies of the business combination andshall not be larger than a reportable segment determined by the Group.
When an impairment test is conducted on an asset group or a set of asset groups that contains goodwill, if there isany indication of impairment, the Group firstly tests the asset group or the set of asset groups excluding theamount of goodwill allocated for impairment, i.e., it determines and compares the recoverable amount with therelated carrying amount and then recognize impairment loss if any. Thereafter, the Group tests the asset group orset of asset groups including goodwill for impairment, the carrying amount (including the portion of the carryingamount of goodwill allocated) of the related asset group or set of asset groups is compared to its recoverableamount. If the carrying amount of the asset group or set of asset groups is higher than its recoverable amount, theamount of the impairment loss is firstly eliminated by and amortized to the book value of the goodwill included inthe asset group or set of asset groups, and then eliminated by the book value of other assets according to theproportion of the book values of assets other than the goodwill in the asset group or set of asset groups.
Once the above impairment loss is recognized, it cannot be reversed in subsequent periods.28. Profit distributionThe cash dividend of the Group is recognized as liabilities after the approval of general meeting of stockholders.29. Safety fundThe safety fund extracted by the Group shall be recognized as the cost of the related products or income statement,
while be recognized as special reserve. When using safety fund, it shall be distinguished whether it will form fixedassets or not. The expenditure shall write down the special reserve; the capital expenditure shall be recognized asfixed assets when meet the expected conditions for use, and write down the special reserve while recognizingaccumulated depreciation with the same amount.
30. Fair value measurementThe Group measures its equity investments at fair value at the end of each reporting period. Fair value is the price
that would be received to sell an asset or paid to transfer a liability in an orderly transaction between marketparticipants at the measurement date. The fair value measurement is based on the presumption that the transactionto sell the asset or transfer the liability takes place either in the principal market for the asset or liability, or in theabsence of a principal market, in the most advantageous market for the asset or liability. The principal or the mostadvantageous market must be accessible by the Group. The fair value of an asset or a liability is measured usingthe assumptions that market participants would use when pricing the asset or liability, assuming that marketparticipants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate
economic benefits by using the asset in its highest and best use or by selling it to another market participant that
would use the asset in its highest and best use. The Group uses valuation techniques that are appropriate in thecircumstances and for which sufficient data are available to measure fair value, maximising the use of relevantobservable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorisedwithin the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair
value measurement as a whole: Level 1 – based on quoted prices (unadjusted) in active markets for identicalassets or liabilities; Level 2 – based on valuation techniques for which the lowest level input that is significant tothe fair value measurement is observable, either directly or indirectly; Level 3 – based on valuation techniques for
which the lowest level input that is significant to the fair value measurement is unobservable
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Group determineswhether transfers have occurred between levels in the hierarchy by reassessing categorisation (based on the lowestlevel input that is significant to the fair value measurement as a whole) at the end of each reporting period.
31. Significant accounting judgments and estimatesThe preparation of financial statements requires management to make judgments, estimates and assumptions that
affect the amounts and disclosures of revenues, expenses, assets and liabilities, and the disclosure of contingentliabilities, at the balance sheet date. However, uncertainty about these assumptions and estimates could result inoutcomes that could require a material adjustment to the carrying amounts of the assets or liabilities affected in thefuture.
Judgments
In the process of applying the Group’s accounting policies, management has made the following judgments which
have significant effect on the financial statements:
Operating leases - as lessorThe Group has entered into commercial property leases on its investment property portfolio. The Group hasdetermined, based on an evaluation of the terms and conditions of the arrangements, that it retains all thesignificant risks and rewards of ownership of these properties which are leased out on operating leases.
Uncertainty of accounting estimates
The crucial assumptions of significant accounting estimates in future and other crucial sources of estimateduncertainty, which may result in the significant adjustments to the book value of the subsequent accounting period,are as the following:
Impairment of available-for-saleThe Group classifies certain assets as available for sale and recognises movements of their fair values in equity.When the fair value declines, management makes assumptions about the decline in value to determine whetherthere is an impairment that should be recognized in the income statement.
Impairment of non-current assets other than financial assets (goodwill excluded)The Group assesses at each reporting date whether there is an indication that non-current assets other thanfinancial assets may be impaired. If there is any sign of possible assets impairment, the assets concerned should besubject to impairment test. When the carrying amount of an asset or the relevant assets group exceeds itsrecoverable amount which is the higher one of the net amount of the fair value of the asset minus the disposalexpenses and the present value of the expected future cash flow of the asset, the asset is considered impaired. Thefair value minus the disposal expenses is determined by reference to the recent market transactions price orobserved market price less any directly attributable expenditure for disposing. When making an estimate of thepresent value of the future cash flow of an asset, the Group should estimate the future cash flows of the asset orthe relevant assets group, with the appropriate discount rate selected to reflect the present value of the future cashflows.
Bad debt provisionsProvisions are made under the allowance method. For each individually significant receivable, the impairment testshould be conducted individually. Where there is evidence that indicates impairment, the loss should berecognized with the respective provision accrued, equaling to the difference between the present value of thefuture cash flows and the book value of receivables. For other receivables concerned, management should accruethe general provisions, along with the receivables individually tested while no impairment incurred, taking inaccount the collectability.
Inventory impairment based on the net realizable valueAccording to accounting policy, inventories shall be measured at the lower of cost and the net realizable value.Provision for inventories is recognized in the income statement when the cost is higher than the net realizablevalue and when the inventories are obsolete and slow-moving. The Group will reassess whether a single inventory
is obsolete, slow-moving or whether the net realizable value is lower than the inventories’ cost at end of each year.
Development expendituresWhen determining the capitalization amount, management should make assumptions such as the expected cashflows of the assets related, the applicable discount rate and expected benefit period.
Deferred tax assetsThe Group should recognize the deferred income tax assets arising from all the existing unutilized tax deficits anddeductible temporary differences to the extent of the amount of the taxable income which it is most likely toobtain and which can be deducted from the deductible temporary differences. Enormous accounting judgments, aswell as the tax planning are compulsory for management to estimate the time and amount of prospective taxableprofits and thus determine the appropriate amount of the deferred tax assets concerned.
WarrantyThe Group provides warranties on automobile and undertakes to repair or replace items that fail to performsatisfactorily based on certain pre-determined conditions. Management estimates the related warranty claimsbased on historical warranty claim information including level of repairs and returns as well as recent trends thatmight suggest that past cost information may differ from future claims. Factors that could impact the estimated
claim information include the success of the Group’s quality controls, as well as parts and labour costs. Any
increase or decrease in the provision would affect profit or loss in future years.
Depreciation and amortization
The Group’s management determines the estimated useful lives and residual value of fixed assets and intangible
assets. This estimate is based on the historical experience of actual useful lives of fixed assets and intangibleassets of similar nature and functions. Management will increase the depreciation and amortization charges whereuseful lives are less than previously estimated.
32. The change of major accounting policies and estimatesDuring the reporting period, the company did not have any changes about accounting policies and estimates.
VI. Taxes
1. The major categories of taxes and surcharges
Categories of taxes and surcharges | Basis of tax | Tax rate |
Value added tax (“VAT”) | Levy on the taxable sales and rendering of services, deducted the deductible input VAT. | 5%, 6% or17% |
Consumption tax | Taxable sales | 1%, 3% or5% |
Business tax | Taxable sales | 5% |
City maintenance and construction tax | The turnover taxes paid | 5% or7% |
Educational surcharge | The turnover taxes paid | 3% |
Local educational surcharge | The turnover taxes paid | 2% |
Corporate income tax | Taxable income | 15% or25% |
2. Tax benefitsIn accordance to Circular for Further Implementation of Tax Incentives In the Development of Western Regions
(Cai Shui [2011] No. 58) collectively issued by the ministry of Finance, the Customs General Administration andthe National Taxation Bureau of PRC, from 1 January 2011 to 31 December 2020, enterprises located in theWestern Region and engaged in encouraged business would be entitled to a preferential CIT rate of 15%.. For theyear ended 2015, the Company, Changan Special Sales and Chongqing Changan Automobile Supporting arequalified to the requirement and acquired permission of the preferential tax rate of 15% from Chongqing JiangbeiNational Tax Bureau (refer to Jiang Fa Gai Ti[2015] No. 135).
As at 4 November 2011, in accordance to Circular of the Administrative Measures for the Certification of Newand High Technology Enterprises (Guo Ke Fa Huo [2008] No. 172) and Circular of the Working Guidance on theRecognition of Hi-tech Enterprises (Guo Ke Fa Huo [2008] No. 362), and ratification of Hebei High-TechEnterprise Recognition Office (Ji Gao Ban [2014] No. 7), the subsidiaries, Hebei Baoding Changan Bus Co., Ltd.and Hebei Changan Automobile Co., Ltd. were recognized as Hi-tech enterprises and subjected to the preferentialtax rate of 15%.
VII. Notes to the consolidated financial statements
1. Cash and cash equivalents
In RMB Yuan
Item | Ending | Beginning |
Cash | 11,825.00 | 33,089.31 |
Cash at bank | 23,767,631,576.89 | 21,451,272,001.22 |
Other cash | 300,101,738.60 | 1,180,231,406.00 |
Total | 24,067,745,140.49 | 22,631,536,496.53 |
As at 30 June 2018, the book value of restricted cash and cash equivalents is RMB 300,101,738.60, which was mainly restricted forthe issuance of acceptance bill.As at 30 June 2018, the cash at bank oversea is equivalent to RMB 114,365,678.53.
2. Notes receivable
(1) Classification of notes receivable
In RMB Yuan
Type | Ending | Beginning |
Commercial acceptance bill | 2,821,052,830.00 | 9,142,240,884.70 |
Bank acceptance bill | 15,569,423,582.74 | 20,014,240,200.50 |
Total | 18,390,476,412.74 | 29,156,481,085.20 |
(2) The notes receivable pledged as follows:
Type | 30 June 2018 | 31 December 2017 |
Bank acceptance bill | 545,823,326.93 | 287,427,970.00 |
The bank acceptance bill of the above amount has been pledged for the notereceivable on 30 June 2018 and 31 December 2017.(3) Endorsed or discounted but unexpired notes receivable as at the end of reporting period are as follows:
In RMB Yuan
Type | Ending | Beginning | ||
Derecognition | Un-derecognition | Derecognition | Un-derecognition | |
Commercial acceptance bill | - | - | 70,962,210.00 | - |
Bank acceptance bill | 961,310,940.00 | - | 1,198,514,460.00 | - |
Total | 961,310,940.00 | - | 1,269,476,670.00 | - |
3. Accounts receivable
(1) An analysis of the accounts receivable by category as at the end of the reporting period is as follows:
In RMB Yuan
Item | Ending | Beginning | ||||||
Balance | Provision | Balance | Provision | |||||
Amount | % | Amount | % | Amount | % | Amount | % | |
Individually significant items and analyzed individually for provision | 527,010,174.73 | 26.84 | - | - | 734,064,982.48 | 39.83 | - | - |
Accounts receivable analyzed as groups for provision | ||||||||
Group 1. Accounts receivable analyzed for provision according to aging analysis | 1,036,772,648.35 | 52.81 | 24,283,177.36 | 2.34 | 811,522,470.21 | 44.04 | 22,765,588.74 | 2.81 |
Group 2. Accounts receivable from related parties | 386,230,274.69 | 19.67 | - | - | 283,985,329.09 | 15.41 | - | - |
Group subtotal | 1,423,002,923.04 | 72.48 | 24,283,177.36 | 1.71 | 1,095,507,799.30 | 59.45 | 22,765,588.74 | 2.08 |
Individually insignificant items but analyzed individually for provision | 13,264,933.57 | 0.68 | 13,264,933.57 | 100 | 13,264,933.57 | 0.72 | 13,264,933.57 | 100 |
Total | 1,963,278,031.34 | 100 | 37,548,110.93 | 1.91 | 1,842,837,715.35 | 100 | 36,030,522.31 | 1.96 |
Within groups, accounts receivable analyzed for provision according to aging analysis:
√ Applicable □ Not applicable
In RMB Yuan
Aging | Ending | Beginning | ||||
Balance | Provision | Balance | Provision | |||
Amount | % | Amount | % | |||
Within 1 year | ||||||
Including: | ||||||
Within 6 months | 955,406,533.48 | 92.15 | - | 753,965,095.69 | 92.91 | - |
6 to 12 months | 29,378,417.75 | 2.83 | 1,468,920.88 | 18,262,202.43 | 2.25 | 913,110.11 |
Within 1 year subtotal | 984,784,951.23 | 94.98 | 1,468,920.88 | 772,227,298.12 | 95.16 | 913,110.11 |
1 to 2 years | 24,457,498.59 | 2.36 | 2,445,749.86 | 12,198,268.67 | 1.50 | 1,219,826.87 |
2 to 3 years | 2,514,884.50 | 0.24 | 754,465.35 | 1,451,653.80 | 0.18 | 435,496.14 |
3 to 4 years | 10,530,865.52 | 1.02 | 5,265,432.76 | 10,368,508.00 | 1.28 | 5,184,254.00 |
4 to 5 years | 679,200.00 | 0.07 | 543,360.00 | 1,319,200.00 | 0.16 | 1,055,360.00 |
Over 5 years | 13,805,248.51 | 1.33 | 13,805,248.51 | 13,957,541.62 | 1.72 | 13,957,541.62 |
Total | 1,036,772,648.35 | 100 | 24,283,177.36 | 811,522,470.21 | 100 | 22,765,588.74 |
Within groups, accounts receivable analyzed for provision according to other analysis:
In RMB Yuan
Name | Ending | Beginning | ||
Balance | Provision | Balance | Provision | |
Accounts receivable provision for bad debts with related party | 386,230,274.69 | - | 283,985,329.09 | - |
On 30 June 2018, there is no accounts receivable with separate amounts and separate provision for bad debts (31 December 2017:
none).
(2) As for June 30, 2018, provision for impairment of accounts receivable amounting to RMB 2,398,816.90 has been accrued(2017: RMB 8,587,659.49). Provision for impairment of accounts receivable amounting to RMB 798,522.79 has been reversed(2017: RMB 3,058,543.46).
(3) As at 30 June 2018, provision for impairment of accounts receivable amounting to RMB 82,705.49 is written off (2017:
RMB 444,720.00).
(4) As at 30 June 2018, the top five debtors of accounts receivables totalled RMB 717,217,296.14, accounting for 36.53% oftotal receivables (2017: RMB 553,166,995.66, accounting for 30.02% of total receivables).
(5) As at 30 June 2018, the group has no accounts receivable as a termination of financial assets transfer (2017: none).
4. Prepayments
(1) An aged analysis of the prepayments is as follows:
In RMB Yuan
Aging | Ending | Beginning | ||
Amount | % | Amount | % | |
Within 1 year | 992,356,992.65 | 98.84 | 1,099,772,284.11 | 99.78 |
1 to 2 years | 10,141,614.24 | 1.01 | 447,067.45 | 0.04 |
2 to 3 years | 1,000,000.00 | 0.10 | 1,485,647.87 | 0.13 |
Over 3 years | 534,931.90 | 0.05 | 534,931.90 | 0.05 |
Total | 1,004,033,538.79 | 100 | 1,102,239,931.33 | 100 |
As at 30 June 2018, the total amount of the top five prepayments was RMB 888,386,086.76, accounting for 88.48% of the totalamount of prepayments (2017: RMB 993,006,069.80, accounting for 90.09%).
5. Interest receivable
In RMB Yuan
Item | Ending | Beginning |
Fixed deposits | 55,081,274.30 | 42,184,263.88 |
6. Other receivables
(1) An analysis of the other receivables by category as at the end of reporting period is as follows:
In RMB Yuan
Item | Ending | Beginning | ||||||
Balance | Provision | Balance | Provision | |||||
Amount | % | Amount | % | Amount | % | Amount | % | |
Individually significant items and analyzed individually for provision | 1,883,637,827.35 | 89.65 | - | - | 1,404,077,945.42 | 85.12 | - | - |
Other receivables analyzed as groups for provision | ||||||||
Group 1: Other receivables analyzed for provision according to aging analysis | 186,364,915.47 | 8.87 | 1,625,933.46 | 0.87 | 201,199,672.08 | 12.20 | 1,177,852.02 | 0.59 |
Group 2:Other receivables from related parties | 28,165,286.80 | 1.34 | - | - | 41,176,689.56 | 2.50 | - | - |
Group subtotal | 214,530,202.27 | 10.21 | 1,625,933.46 | 0.76 | 242,376,361.64 | 14.70 | 1,177,852.02 | 0.49 |
individually insignificant items but analyzed individually for provision | 2,976,813.22 | 0.14 | 2,976,813.22 | 100 | 2,978,743.66 | 0.18 | 2,978,743.66 | 100 |
Total | 2,101,144,842.84 | 100.00 | 4,602,746.68 | 0.22 | 1,649,433,050.72 | 100.00 | 4,156,595.68 | 0.25 |
Within groups, other receivables analyzed for provision according to aging analysis
√ Applicable □ Not applicable
In RMB Yuan
Aging | Ending | Beginning |
Balance | Provision | Balance | Provision | |||
Amount | % | Amount | % | |||
Within 1 year | ||||||
Including: | ||||||
Within 6 months | 171,786,449.50 | 92.17 | - | 194,289,589.40 | 96.57 | - |
6 to 12 months | 12,336,442.40 | 6.62 | 616,822.12 | 5,512,392.58 | 2.74 | 275,619.62 |
Within 1 year subtotal | 184,122,891.90 | 98.79 | 616,822.12 | 199,801,981.98 | 99.31 | 275,619.62 |
1 to 2 years | 1,072,883.60 | 0.58 | 107,288.36 | 405,884.15 | 0.20 | 40,588.42 |
2 to 3 years | 290,443.07 | 0.16 | 87,132.92 | 48,000.00 | 0.02 | 14,400.00 |
3 to 4 years | 128,014.34 | 0.07 | 64,007.61 | 193,123.94 | 0.10 | 96,561.97 |
4 to 5 years | 0.55 | - | 0.44 | - | - | - |
Over 5 years | 750,682.01 | 0.40 | 750,682.01 | 750,682.01 | 0.37 | 750,682.01 |
Total | 186,364,915.47 | 100 | 1,625,933.46 | 201,199,672.08 | 100 | 1,177,852.02 |
Within groups, other receivable analyzed for provision according to other analysis:
In RMB Yuan
Name | Ending | Beginning | ||
Balance | Provision | Balance | Provision | |
Other receivable provision for bad debts with related party | 28,165,286.80 | - | 41,176,689.56 | - |
On 30 June 2018, there is no other receivable with separate amounts and separate provision for bad debts (31 December 2017: none).
(2) As for June 30, 2018, provision for impairment of other receivable amounting to RMB 520,778.00 has been accrued (2017:
RMB 1,231,570.84). Provision for impairment of other receivable amounting to RMB 18,072.20 has been reversed (2017:
RMB 1,109,854.82).
(3) As at 30 June 2018, provision for impairment of other receivable amounting to RMB 56,554.8 is written off (2017: RMB85,402.61).
(4) As at 30 June 2018, the group has no other receivables as a termination of financial assets transfer (2017: none).
(5) As at 30 June 2018, top five debtors of other receivables are as follows:
Debtors | Ending balance | Years | Proportion of total other receivables (%) |
First | 1,544,178,640.00 | Within 3 years | 73.49 |
Second | 229,198,886.11 | Within 3 years | 10.91 |
Third | 28,823,310.00 | 1 to 2 years | 1.37 |
Fourth | 27,431,572.54 | Within 6 months | 1.31 |
Fifth | 21,053,000.00 | Within 1 year | 1.00 |
Total | 1,850,685,408.65 | - | 88.08 |
7. Inventory
(1) Classification of inventory
In RMB Yuan
Item | Ending | Beginning | ||||
Balance | Provision | Net value | Balance | Provision | Net value | |
Raw materials | 608,090,995.26 | 53,440,961.77 | 554,650,033.49 | 461,911,233.10 | 33,713,007.05 | 428,198,226.05 |
Work in transit | 448,120,820.40 | - | 448,120,820.40 | 511,912,371.36 | - | 511,912,371.36 |
Work in progress | 856,411,506.90 | 20,963,970.65 | 835,447,536.25 | 633,181,546.29 | 32,329,369.55 | 600,852,176.74 |
Commodity stock | 2,934,264,568.28 | 101,360,370.90 | 2,832,904,197.38 | 3,154,147,791.47 | 103,902,330.06 | 3,050,245,461.41 |
Revolving materials | - | - | - | 26,530,300.45 | - | 26,530,300.45 |
Spare parts | 55,298,889.07 | - | 55,298,889.07 | 48,444,885.79 | - | 48,444,885.79 |
Total | 4,902,186,779.91 | 175,765,303.32 | 4,726,421,476.59 | 4,836,128,128.46 | 169,944,706.66 | 4,666,183,421.80 |
(2) Provision for inventory
In RMB Yuan
Type | Beginning | Provision | Deduction | Ending | |
Reversal | Write-off | ||||
Raw materials | 33,713,007.05 | 21,959,954.84 | 636,470.54 | 1,595,529.58 | 53,440,961.77 |
Work in progress | 32,329,369.55 | 2,861,402.11 | 13,237,201.09 | 989,599.92 | 20,963,970.65 |
Commodity stock | 103,902,330.06 | 96,089,591.05 | 198,853.86 | 98,432,696.35 | 101,360,370.90 |
Total | 169,944,706.66 | 120,910,948.00 | 14,072,525.49 | 101,017,825.85 | 175,765,303.32 |
8. Other current assets
In RMB Yuan
Item | Ending | Beginning |
Accrual input tax | 2,162,944,222.31 | 1,699,621,114.17 |
Others | 32,110,668.20 | 6,289,416.26 |
Total | 2,195,054,890.51 | 1,705,910,530.43 |
9. Available-for-sale financial assets
In RMB Yuan
Item | Ending | Beginning |
Available-for-sale equity securites | 136,675,000.00 | 164,365,000.00 |
Other | 427,552,000.00 | 377,552,000.00 |
Total | 564,227,000.00 | 541,917,000.00 |
1. The available-for-sale equity securites are the 35.50 million shares of Southwest Securities Co., Ltd as of June 30, 2018.
2. Others: On June 30, 2018 the group’s ownership,measured by the cost of the investment, does not have control, joint control or
significant influenceand there is no offer in the active market, the fair value can not be reliably measured by the equity investment.
10. Long-term equity investment
In RMB Yuan
Investee | Accounting method | Initial amount | Beginning | (deduction) | Ending | Shareholding percentage (%) | Voting percentage (%) | Explanation for the difference between shareholding percentage and voting percentage | Impairment | Current provision | Current cash dividends |
Joint ventures | |||||||||||
Chongqing Changan Suzuki Automobile Co., Ltd | Equity | 237,719,933.33 | 1,190,705,710.43 | -80,032,104.09 | 1,110,673,606.34 | 50 | 50 | None | - | - | - |
Jiangling Holding Co., Ltd | Equity | 1,008,511,522.00 | 2,907,749,943.37 | -83,707,141.74 | 2,824,042,801.63 | 50 | 50 | None | - | - | - |
Changan Ford Automobile Co., Ltd(former name: Changan Ford Mazda Automobile Co., Ltd) | Equity | 975,232,926.29 | 4,125,426,104.20 | 866,427,723.13 | 4,991,853,827.33 | 50 | 50 | None | - | - | - |
Changan Mazda Automobile Co., Ltd | Equity | 1,097,839,635.00 | 2,439,429,811.02 | 635,451,737.12 | 3,074,881,548.14 | 50 | 50 | None | - | - | - |
Changan Ford Mazda Engine Co., Ltd | Equity | 786,734,634.10 | 903,838,395.08 | -73,187,649.79 | 830,650,745.29 | 50 | 50 | None | - | - | 114,500,000.00 |
Changan PSA Automobiles Co., Ltd,a JV of the Company | Equity | 2,007,841,700.00 | 93,561,126.76 | -171,729,822.06 | -78,168,695.30 | 50 | 50 | None | - | - | - |
Associates | - | ||||||||||
Chongqing Changan Kuayue | Equity | 61,800,885.00 | 101,399,892.43 | 17,458,524.85 | 118,858,417.28 | 34.3 | 34.3 | None | - | - | - |
Automobile Co., Ltd | |||||||||||
Chongqing Changan Kuayue Automobile Sales Co., Ltd | Equity | 1.00 | - | - | - | 34.3 | 34.3 | None | - | - | - |
Beijing Fangan Taxi LLC | Equity | 6,000,000.00 | - | - | - | 20.7 | 20.7 | None | - | - | - |
Chongqing Auto Finance Co.Ltd | Equity | 1,805,000,000.00 | 1,817,669,991.73 | 137,070,317.23 | 1,954,740,308.96 | 28.66 | 28.66 | None | - | - | - |
Zhenjiang Demao Hairun Equity Investment Fund Partnership (Limited Partnership) | Equity | 518,743,029.48 | 518,742,921.95 | 289,516,719.35 | 808,259,641.30 | 32.67 | 32.67 | None | - | - | - |
Hangzhou Chelizi Intelligent Technology Co., Ltd. | Equity | 2,243,750.00 | - | 2,243,750.00 | 2,243,750.00 | 20 | 20 | None | - | - | - |
Total | -- | 8,507,668,016.20 | 14,098,523,896.97 | 1,539,512,054.00 | 15,638,035,950.97 | -- | -- | -- | - | - | 114,500,000.00 |
11. Investment property
According to the cost of the investment real estate
In RMB Yuan
Item | Beginning | Addition | Deduction | Ending |
I. Original cost | 10,050,100.00 | - | - | 10,050,100.00 |
Buildings | 10,050,100.00 | - | - | 10,050,100.00 |
II. Accumulated depreciationand amortization | 2,493,827.16 | 113,355.78 | - | 2,607,182.94 |
Buildings | 2,493,827.16 | 113,355.78 | - | 2,607,182.94 |
III. Net Value | 7,556,272.84 | -113,355.78 | - | 7,442,917.06 |
Buildings | 7,556,272.84 | -113,355.78 | - | 7,442,917.06 |
IV. Impairment Provision | 7,556,272.84 | -113,355.78 | - | 7,442,917.06 |
Buildings | 7,556,272.84 | -113,355.78 | - | 7,442,917.06 |
12. Fixed assets
In RMB Yuan
Item | Beginning | Addition | Deduction | Ending |
I. Original cost | 31,092,079,689.71 | 518,376,227.55 | 359,069,765.75 | 31,251,386,151.51 |
Buildings | 7,588,350,429.43 | 6,957,485.61 | 4,967,723.31 | 7,590,340,191.73 |
Machinery | 17,780,317,915.84 | 101,696,094.53 | 179,543,314.95 | 17,702,470,695.42 |
Vehicles | 758,168,041.39 | 39,022,979.13 | 2,186,906.73 | 795,004,113.79 |
Other Equipments | 4,965,243,303.05 | 370,699,668.28 | 172,371,820.76 | 5,163,571,150.57 |
II. Accumulated depreciation | 11,166,770,830.03 | 1,045,654,724.17 | 264,765,212.09 | 11,947,660,342.11 |
Buildings | 1,585,639,930.24 | 127,192,502.26 | - | 1,712,832,432.50 |
Machinery | 7,183,157,682.85 | 521,677,710.87 | 94,478,028.29 | 7,610,357,365.43 |
Vehicles | 207,356,765.94 | 70,246,042.36 | 1,431,464.77 | 276,171,343.53 |
Other Equipments | 2,190,616,451.00 | 326,538,468.68 | 168,855,719.03 | 2,348,299,200.65 |
III. Net Value | 19,925,308,859.68 | -527,278,496.62 | 94,304,553.66 | 19,303,725,809.40 |
Buildings | 6,002,710,499.19 | -120,235,016.65 | 4,967,723.31 | 5,877,507,759.23 |
Machinery | 10,597,160,232.99 | -419,981,616.34 | 85,065,286.66 | 10,092,113,329.99 |
Vehicles | 550,811,275.45 | -31,223,063.23 | 755,441.96 | 518,832,770.26 |
Other Equipments | 2,774,626,852.05 | 44,161,199.60 | 3,516,101.73 | 2,815,271,949.92 |
IV.Impairment Provision | 880,779,908.98 | - | 33,638,931.71 | 847,140,977.27 |
Buildings | 83,371,676.72 | - | - | 83,371,676.72 |
Machinery | 673,609,726.30 | - | 32,024,837.06 | 641,584,889.24 |
Vehicles | 223,852.23 | - | - | 223,852.23 |
Other Equipments | 123,574,653.73 | - | 1,614,094.65 | 121,960,559.08 |
V. Book Value | 19,044,528,950.70 | -527,278,496.62 | 60,665,621.95 | 18,456,584,832.13 |
Buildings | 5,919,338,822.47 | -120,235,016.65 | 4,967,723.31 | 5,794,136,082.51 |
Machinery | 9,923,550,506.69 | -419,981,616.34 | 53,040,449.60 | 9,450,528,440.75 |
Vehicles | 550,587,423.22 | -31,223,063.23 | 755,441.96 | 518,608,918.03 |
Other Equipments | 2,651,052,198.32 | 44,161,199.60 | 1,902,007.08 | 2,693,311,390.84 |
The depreciation during the reporting period is RMB 1,045,654,724.17. During the period the construction in progress amounting to RMB462,849,859.01 is transferred to the fixed asset.
13. Construction in progress
(1) Details of construction in progress
In RMB Yuan
Item | Closing balance | Openning balance | ||||
Balance | Provision | Book value | Balance | Provision | Book value | |
Mini-bus production equipment | 1,123,638,327.96 | - | 1,123,638,327.96 | 997,340,616.73 | - | 997,340,616.73 |
Yuzui motor city project | 602,342,467.90 | - | 602,342,467.90 | 247,220,662.88 | - | 247,220,662.88 |
Car production equipment | 253,282,390.98 | - | 253,282,390.98 | 165,767,240.81 | - | 165,767,240.81 |
Engine plant | 496,911,181.63 | - | 496,911,181.63 | 341,191,269.61 | - | 341,191,269.61 |
Vehicle research institution | 665,267,271.81 | - | 665,267,271.81 | 401,869,572.35 | - | 401,869,572.35 |
Vehicle moulds | 461,248,201.97 | - | 461,248,201.97 | 365,419,879.40 | - | 365,419,879.40 |
Light vehicle technical transformation project of Baoding Changan bus | 52,602,943.34 | - | 52,602,943.34 | 28,393,497.74 | - | 28,393,497.74 |
Plant for vehicle test project | 6,413,634.95 | - | 6,413,634.95 | 6,052,888.00 | - | 6,052,888.00 |
Beijing vehicle construction project | 156,149,317.24 | - | 156,149,317.24 | 163,600,842.58 | - | 163,600,842.58 |
Engine Base of Nanjing | 5,126,636.04 | - | 5,126,636.04 | 3,201,929.85 | - | 3,201,929.85 |
Yuzui Refitting factory | 31,385,789.99 | - | 31,385,789.99 | 30,880,135.49 | - | 30,880,135.49 |
Car production Project Of | 502,844,386.55 | - | 502,844,386.55 | 156,409,567.96 | - | 156,409,567.96 |
Hefei Changan | ||||||
Nanjing Welding Technological transformation project | - | - | - | 3,351,229.28 | - | 3,351,229.28 |
Yubei Factory | 156,977.90 | - | 156,977.90 | 145,173.18 | - | 145,173.18 |
Others | 370,871,503.68 | - | 370,871,503.68 | 323,328,649.66 | - | 323,328,649.66 |
Total | 4,728,241,031.94 | - | 4,728,241,031.94 | 3,234,173,155.52 | - | 3,234,173,155.52 |
(2) Movement of major construction in progress projects
In RMB Yuan
Item | Beginning | Addition | Transferred to fixed assets | Deduction | Ending |
Mini-bus production equipment | 997,340,616.73 | 144,371,711.76 | 18,074,000.53 | - | 1,123,638,327.96 |
Yuzui motor city project | 247,220,662.88 | 425,202,343.66 | 70,080,538.64 | - | 602,342,467.90 |
Car production equipment | 165,767,240.81 | 102,294,839.15 | 14,779,688.98 | - | 253,282,390.98 |
Engine plant | 341,191,269.61 | 201,304,112.54 | 45,584,200.52 | - | 496,911,181.63 |
Vehicle research institution | 401,869,572.35 | 270,459,262.14 | 7,061,562.68 | - | 665,267,271.81 |
Vehicle moulds | 365,419,879.40 | 174,022,790.49 | 78,194,467.92 | - | 461,248,201.97 |
Light vehicle technical transformation project of Baoding Changan bus | 28,393,497.74 | 24,209,445.60 | - | - | 52,602,943.34 |
Plant for vehicle test project | 6,052,888.00 | 428,123.01 | 67,376.06 | - | 6,413,634.95 |
Beijing vehicle construction project | 163,600,842.58 | 63,733,108.34 | 71,184,633.68 | - | 156,149,317.24 |
Engine Base of Nanjing | 3,201,929.85 | 2,273,762.79 | 349,056.60 | - | 5,126,636.04 |
Yuzui Refitting factory | 30,880,135.49 | 2,199,007.15 | 1,693,352.65 | - | 31,385,789.99 |
Car production Project Of Hefei Changan | 156,409,567.96 | 346,434,818.59 | - | - | 502,844,386.55 |
Nanjing Welding Technological transformation project | 3,351,229.28 | - | 3,351,229.28 | - | - |
Yubei Factory | 145,173.18 | 11,804.72 | - | - | 156,977.90 |
Others | 323,328,649.66 | 199,972,605.49 | 152,429,751.47 | - | 370,871,503.68 |
Total | 3,234,173,155.52 | 1,956,917,735.43 | 462,849,859.01 | - | 4,728,241,031.94 |
(3) Impairment for construction in progressNone
14. Liquidation of fixed assets
In RMB Yuan
Item | Beginning | Ending | Reason |
machinery equipment | 4,716.98 | 1,342,869.14 | Asset retirement |
Total | 4,716.98 | 1,342,869.14 |
15. Intangible assets
Details of intangible assets
In RMB Yuan
Item | Beginning | Addition | Deduction | Ending |
I. Original cost | 7,156,994,397.31 | 309,555,465.10 | - | 7,466,549,862.41 |
Land use rights | 2,384,260,724.00 | 74,140,024.32 | - | 2,458,400,748.32 |
Software use rights | 440,803,454.31 | 4,276,291.77 | - | 445,079,746.08 |
Trademark use rights | 211,784,400.00 | 10,306.61 | - | 211,794,706.61 |
Non-patent technology | 4,120,145,819.00 | 231,128,842.40 | - | 4,351,274,661.40 |
II. Accumulated amortization | 2,885,416,546.63 | 349,623,578.41 | - | 3,235,040,125.04 |
Land use rights | 280,991,802.54 | 25,278,204.72 | - | 306,270,007.26 |
Software use rights | 396,959,100.18 | 17,108,763.10 | - | 414,067,863.28 |
Trademark use rights | 153,453,466.62 | 8,749,999.98 | - | 162,203,466.60 |
Non-patent technology | 2,054,012,177.29 | 298,486,610.61 | - | 2,352,498,787.90 |
III. Net value | 4,271,577,850.68 | -40,068,113.31 | - | 4,231,509,737.37 |
Land use rights | 2,103,268,921.46 | 48,861,819.60 | - | 2,152,130,741.06 |
Software use rights | 43,844,354.13 | -12,832,471.33 | - | 31,011,882.80 |
Trademark use rights | 58,330,933.38 | -8,739,693.37 | - | 49,591,240.01 |
Non-patent technology | 2,066,133,641.71 | -67,357,768.21 | - | 1,998,775,873.50 |
IV. Impairment provision | 223,632,721.01 | - | 3,600,948.83 | 220,031,772.18 |
Software use rights | 21,319,804.81 | - | - | 21,319,804.81 |
Non-patent technology | 202,312,916.20 | - | 3,600,948.83 | 198,711,967.37 |
V. Book value | 4,047,945,129.67 | -40,068,113.31 | -3,600,948.83 | 4,011,477,965.19 |
Land use rights | 2,103,268,921.46 | 48,861,819.60 | - | 2,152,130,741.06 |
Software use rights | 22,524,549.32 | -12,832,471.33 | - | 9,692,077.99 |
Trademark use rights | 58,330,933.38 | -8,739,693.37 | - | 49,591,240.01 |
Non-patent technology | 1,863,820,725.51 | -67,357,768.21 | -3,600,948.83 | 1,800,063,906.13 |
As at 30 June 2018, the intangible assets from internal research and development account for 44.87% of total
intangible assets.16. Development expenditure
In RMB Yuan
Item | Beginning | Addition | Deduction | Ending | |
Charged to income Statement of the Current period | Charged to income Statement of the Current period | ||||
Automobile Development | 836,638,328.10 | 485,401,483.77 | 61,739,089.55 | 304,287,342.35 | 956,013,379.97 |
Total | 836,638,328.10 | 485,401,483.77 | 61,739,089.55 | 304,287,342.35 | 956,013,379.97 |
17. Goodwill
In RMB Yuan
Investee | Beginning | Addition | Deduction | Ending | Impairment provision |
Hebei Changan Automobile Co., Ltd | 9,804,394.00 | - | - | 9,804,394.00 | - |
Nanjing Changan Automobile Co., Ltd | - | - | - | - | 73,465,335.00 |
Total | 9,804,394.00 | - | - | 9,804,394.00 | 73,465,335.00 |
18. Long-term deferred expenses
In RMB Yuan
Item | Beginning | Addition | Amortization | Other deduction | Ending |
Long-term deferred expenses | 13,545,589.39 | 1,246,951.68 | 223,469.15 | - | 14,569,071.92 |
Total | 13,545,589.39 | 1,246,951.68 | 223,469.15 | - | 14,569,071.92 |
19. Deferred tax assets and liabilities
Recognized deferred tax assets and liabilities:
In RMB Yuan
Item | Ending | Beginning |
Deferred tax assets: | ||
Provision for the impairment of assets | 208,635,488.68 | 168,817,572.61 |
Accrued expenses and contingent liabilities | 786,960,665.17 | 769,116,660.06 |
Unpaid tech development expense and advertisement expense | 76,787,383.53 | 77,899,364.21 |
Deferred income | 446,396,210.91 | 479,391,091.10 |
Unpaid salary and bonus and others | 43,367,541.84 | 38,633,123.29 |
Subtotal | 1,562,147,290.13 | 1,533,857,811.27 |
Deferred tax liabilities: | ||
Available-for-sale financial assets on the changes in fair value | 17,069,250.00 | 21,222,750.00 |
Others | ||
Subtotal | 17,069,250.00 | 21,222,750.00 |
20. Provision for the impairment of assets
In RMB Yuan
Item | Beginning | Addition | Deduction | Ending | |
Reversal | Write-off | ||||
I. Bad debt provision | 40,187,117.99 | 2,919,594.90 | 816,594.99 | 139,260.29 | 42,150,857.61 |
II. Provision for obsolete inventory | 169,944,706.66 | 120,910,948.00 | 14,072,525.49 | 101,017,825.85 | 175,765,303.32 |
III. Provision for the impairment of fixed assets | 880,779,908.98 | - | - | 33,638,931.71 | 847,140,977.27 |
IV. Provision for the impairment of intangible assets | 223,632,721.01 | - | - | 3,600,948.83 | 220,031,772.18 |
V. Provision for the impairment of goodwill | 73,465,335.00 | - | - | - | 73,465,335.00 |
VI. Provision for the impairment of available-for-sale financial assets | 1,809,274.00 | - | - | - | 1,809,274.00 |
Total | 1,389,819,063.64 | 123,830,542.90 | 14,889,120.48 | 138,396,966.68 | 1,360,363,519.38 |
21. Short-term loans
In RMB Yuan
Item | Ending | Beginning |
Pledge loans | 186,000,000.00 | 175,000,000.00 |
Guaranteed loans | - | 10,000,000.00 |
Credit loans | ||
Total | 186,000,000.00 | 185,000,000.00 |
22. Notes payable
In RMB Yuan
Item | Ending | Beginning |
Commercial acceptance bill | - | 1,585,249,372.80 |
Bank acceptance bill | 20,222,535,762.78 | 16,417,677,207.01 |
Total | 20,222,535,762.78 | 18,002,926,579.81 |
23. Accounts payable
In RMB Yuan
Item | Ending | Beginning |
Accounts payable | 15,501,582,938.54 | 21,902,826,194.15 |
total | 15,501,582,938.54 | 21,902,826,194.15 |
24. Advances from customers
In RMB Yuan
Item | Ending | Beginning |
Advances from customers | 1,935,292,614.32 | 3,878,382,556.43 |
total | 1,935,292,614.32 | 3,878,382,556.43 |
25. Payroll payable
30 June 2018
In RMB Yuan
Item | Beginning | Addition | Deduction | Ending |
Short term salary benefits | 1,567,656,287.03 | 2,454,600,682.62 | 3,336,139,763.96 | 686,117,205.69 |
Defined contribution plans | 68,156,035.30 | 272,419,202.68 | 256,353,067.81 | 84,222,170.17 |
Early retirement benefits | 5,073,000.00 | 981,065.47 | 955,119.87 | 5,098,945.60 |
Total | 1,640,885,322.33 | 2,728,000,950.77 | 3,593,447,951.64 | 775,438,321.46 |
Short term salary benefits as follows: | ||||||
In RMB Yuan | ||||||
Item | Beginning | Addition | Deduction | Ending | ||
and subsidy | 1,207,501,206.86 | 1,949,500,550.62 | 2,841,138,372.75 | 315,863,384.73 |
Employee benefit | 207,402,348.95 | 111,906,449.19 | 109,943,371.44 | 209,365,426.70 | |
Social insurance | -174,158.92 | 166,910,544.15 | 164,398,082.31 | 2,338,302.92 | |
Housing accumulation fund | 59,222,161.27 | 156,439,370.15 | 155,442,121.89 | 60,219,409.53 | |
education fund | 93,704,728.87 | 69,843,768.51 | 65,217,815.57 | 98,330,681.81 | |
Total | 1,567,656,287.03 | 2,454,600,682.62 | 3,336,139,763.96 | 686,117,205.69 | |
Defined contribution plans as follows: |
30 June 2018
In RMB Yuan | |||||
Item | Beginning | Addition | Deduction | Ending | |
Basic retirement security | 60,088,662.53 | 265,417,650.40 | 248,719,236.73 | 76,787,076.20 | |
Unemployment insurance | 8,067,372.77 | 7,001,552.28 | 7,633,831.08 | 7,435,093.97 | |
Total | 68,156,035.30 | 272,419,202.68 | 256,353,067.81 | 84,222,170.17 |
26. Taxes payable
In RMB Yuan
Item | Ending | Beginning |
Value-added tax | 6,751,596.16 | 20,724,979.91 |
Consumption tax | 215,617,720.51 | 315,331,520.62 |
Corporate income tax | -34,319,675.86 | -5,866,525.85 |
Individual Income tax | 1,475,832.48 | 3,496,728.45 |
City maintenance and construction tax | 1,563,752.49 | 27,566,226.75 |
Education additional expenses | 1,058,841.54 | 20,798,543.86 |
Others | 14,480,761.81 | 12,269,923.40 |
Total | 206,628,829.13 | 394,321,397.14 |
27. Dividend payable
In RMB Yuan
Item | Ending | Beginning |
Dividend payable – A share dividend | 2,157,790,283.66 | - |
Dividend payable – Hebei Changan Minority interests | 79,742.80 | 79,742.80 |
Total | 2,157,870,026.46 | 79,742.80 |
28. Other payables
In RMB Yuan
Item | Ending | Beginning |
Deposits of dealer and supplier | 48,038,638.84 | 64,938,552.00 |
Maintenance fees | 193,799,878.35 | 166,703,421.92 |
Sales incentive fees | - | 23,159,476.00 |
Advertising fees | 231,462,027.04 | 322,762,545.86 |
Warehousing and transport fees | 273,094,120.79 | 169,100,711.73 |
Integrated service charges and miscellaneous expenses | 190,772,430.73 | 140,284,047.51 |
Purchase and construction of fixed assets, intangible assets and project deposits | 591,860,696.22 | 1,499,489,207.73 |
Others | 291,098,071.43 | 212,575,448.23 |
Total | 1,820,125,863.40 | 2,599,013,410.98 |
29. Contingent liabilities
In RMB Yuan
Item | Beginning | Addition | Deduction | Ending |
Warranty | 2,423,958,274.70 | 481,330,044.04 | 363,245,192.27 | 2,542,043,126.47 |
Total | 2,423,958,274.70 | 481,330,044.04 | 363,245,192.27 | 2,542,043,126.47 |
Note: Warranty is the estimated repair expenses for the sold vehicles within warranty period.
30. Other current liabilities
In RMB Yuan
Item | Ending | Beginning |
Accrued utilities | 12,037,428.18 | 59,634,137.49 |
Accrued transportation fee | 626,565,018.81 | 540,328,536.56 |
Accrued maintenance fee | 68,247,641.79 | 55,133,842.44 |
Accrued technology transfer and development fee | 293,074,345.01 | 164,331,878.15 |
Accrued commercial discount payable | 2,018,529,715.36 | 1,928,754,888.23 |
Accrued market development expense | 556,882,954.98 | 578,090,324.55 |
Accrued rental fee | 93,753,857.96 | 96,417,863.95 |
Accrued consultancy fee | 36,724,136.50 | 45,510,193.20 |
Others | 86,598,488.91 | 93,952,981.25 |
Total | 3,792,413,587.50 | 3,562,154,645.82 |
31. Non-current liabilities due within one year
In RMB Yuan
Item | Ending | Beginning |
Non-current liabilities due within one year | 13,423,420.00 | 13,151,946.67 |
Total | 13,423,420.00 | 13,151,946.67 |
32. Long-term loans
In RMB Yuan
Item | Ending | Beginning |
Credit loan | 13,423,420.00 | 19,727,920.00 |
Deduction of loans due within one year | -13,423,420.00 | -13,151,946.67 |
Total | - | 6,575,973.33 |
33. Special payables
In RMB Yuan
Item | Beginning | Addition | Deduction | Ending |
Project 863 | 2,603,472.95 | - | 151,423.33 | 2,452,049.62 |
Test on key technology of hybrid electric vehicles | 1,346,665.57 | - | 4,200.00 | 1,342,465.57 |
New vehicle product | 7,808,326.58 | - | 1,879,277.00 | 5,929,049.58 |
Automobile product chain sharing platform | 4,550,973.75 | - | 3,513,440.44 | 1,037,533.31 |
Gasoline Engine Development | 1,453,543.15 | - | 214,506.15 | 1,239,037.00 |
Changan Automobile E-type gasoline engine cylinder block, cylinder head machine plus production line demonstration project | 67,480,246.95 | - | 67,412,924.31 | 67,322.64 |
Land relocation compensation | 55,350,709.40 | - | - | 55,350,709.40 |
Automotive order to delivery system project | 1,450,263.11 | - | - | 1,450,263.11 |
Industrialization of patented technologies | 662,296.98 | - | 462,296.98 | 200,000.00 |
Vehicle network intelligent information terminal middleware key technologies research and application | 1,460,052.95 | 100,000.00 | 675,662.40 | 884,390.55 |
Development and industrialization of C206 pure electric cars | 14,582,280.58 | - | 11,136,000.00 | 3,446,280.58 |
System development of electromagnetic compatibility of key accessories on electric cars | 1,334,037.55 | - | 288,323.56 | 1,045,713.99 |
Intalligent manufacturIng project | 45,455,157.40 | - | 9,693,416.91 | 35,761,740.49 |
Lightweight design of automobile structure | 63,564,705.20 | - | 786,375.01 | 62,778,330.19 |
All-region platform development technology | 1,000,000.00 | - | 1,000,000.00 | - |
LTE-V wireless transmission technology standardization and prototype development verification | 2,586,540.75 | - | 500,019.24 | 2,086,521.51 |
Development and demonstration application of high performance magnesium alloy | 1,501,158.52 | - | 22,074.65 | 1,479,083.87 |
Research and application of IoT control integration technology in intelligent cabin system of automobile industry | 3,145,200.00 | - | 453,530.49 | 2,691,669.51 |
Others | 13,271,519.63 | 27,398,400.00 | 3,370,853.78 | 37,299,065.85 |
Total | 290,607,151.02 | 27,498,400.00 | 101,564,324.25 | 216,541,226.77 |
34. Deferred income
30 June, 2018
In RMB Yuan
Item | Beginning | Addition | Deduction | Ending |
Government grants related to assets | 2,825,085,486.08 | 17,358,750.00 | 77,441,797.78 | 2,765,002,438.30 |
Government grants related to income | 754,048,245.36 | 300,000,000.00 | 152,034,541.70 | 902,013,703.66 |
Others | 48,683,687.61 | 14,924,066.82 | - | 63,607,754.43 |
Total | 3,627,817,419.05 | 332,282,816.82 | 229,476,339.48 | 3,730,623,896.39 |
2017
Item | Beginning | Addition | Deduction | Ending |
Government grants related to assets | 2,762,931,782.46 | 246,106,000.00 | 183,952,296.38 | 2,825,085,486.08 |
Government grants related to income | - | 900,000,000.00 | 145,951,754.64 | 754,048,245.36 |
Others | 22,953,843.91 | 25,729,843.70 | - | 48,683,687.61 |
Total | 2,785,885,626.37 | 1,171,835,843.70 | 329,904,051.02 | 3,627,817,419.05 |
As at 30 June 2018, details of liabilities related to government grants are as follows:
Item | Beginning | Addition | Recorded to other income | Ending | Relates to asset/gain |
Project subsidy funds | 2,393,683,325.86 | - | 52,423,241.54 | 2,341,260,084.32 | Related to asset |
Subsidies for plant construction | 343,254,680.06 | - | 24,748,714.76 | 318,505,965.30 | Related to asset |
Technical innovation funds | 16,150,000.00 | - | - | 16,150,000.00 | Related to asset |
Other asset - related subsidies | 71,997,480.16 | 17,358,750.00 | 269,841.48 | 89,086,388.68 | Related to asset |
Other income - related subsidies | 754,048,245.36 | 300,000,000.00 | 152,034,541.70 | 902,013,703.66 | Related to income |
Total | 3,579,133,731.44 | 317,358,750.00 | 229,476,339.48 | 3,667,016,141.96 |
As at 31 December 2017, details of liabilities related to government grants are as follows:
Item | Beginning | Addition | Recorded to non-operating income | Ending | Relates to asset/gain |
Project subsidy funds | 2,338,351,870.83 | 176,401,000.00 | 121,069,544.97 | 2,393,683,325.86 | Related to asset |
Subsidies for plant construction | 392,747,109.56 | - | 49,492,429.50 | 343,254,680.06 | Related to asset |
Technical innovation funds | 16,150,000.00 | - | - | 16,150,000.00 | Related to asset |
Other asset - related subsidies | 15,682,802.07 | 69,705,000.00 | 13,390,321.91 | 71,997,480.16 | Related to asset |
Other income - related subsidies | - | 900,000,000.00 | 145,951,754.64 | 754,048,245.36 | Related to income |
Total | 2,762,931,782.46 | 1,146,106,000.00 | 329,904,051.02 | 3,579,133,731.44 |
35. Share capital
In RMB Yuan
Beginning | Current movement | Ending | |||||
Issuance of shares | Stock dividend | Transfer of reserve to | others | Subtotal |
common shares | |||||||
The sum of shares | 4,802,648,511.00 | - | - | - | - | - | 4,802,648,511.00 |
36. Capital reserves
In RMB Yuan
Item | Beginning | Addition | Deduction | Ending |
Share premium | 4,969,218,884.37 | - | - | 4,969,218,884.37 |
Share-based payment | 32,697,000.00 | - | - | 32,697,000.00 |
Capital reserve transferred arising from the old standards | 44,496,899.00 | - | - | 44,496,899.00 |
Restricted capital reserve of equity investments | 17,015,985.20 | - | - | 17,015,985.20 |
Others | 35,977,188.37 | - | - | 35,977,188.37 |
Total | 5,099,405,956.94 | - | - | 5,099,405,956.94 |
37. Other comprehensive income
In RMB Yuan
Item | Report period | Same period of last year |
1. Profits (loss) generated from available for sale financial assets | -27,690,000.00 | -53,960,000.00 |
Less: Available for sale financial assets arising from income tax effect | -4,153,500.00 | -8,094,000.00 |
Net - through other comprehensive income into the profits and losses of the current | ||
Subtotal | -23,536,500.00 | -45,866,000.00 |
2. Translation differences of foreign currency financial statements | -19,190,455.30 | -3,405,529.86 |
3. Shares in the other comprehensive income of the investee accounted for according to the equity method | 289,756,488.89 | - |
Total | 247,029,533.59 | -49,271,529.86 |
38. Surplus reserves
In RMB Yuan
Item | Beginning | Addition | Deduction | Ending |
Statutory surplus | 2,401,324,255.50 | - | - | 2,401,324,255.50 |
Total | 2,401,324,255.50 | - | - | 2,401,324,255.50 |
39. Retained earnings
In RMB Yuan
Item | Sum |
Retained earnings at beginning of year before adjustments | 35,184,073,061.94 |
Adjust the early undistributed profits total | |
Retained earnings at beginning of year after adjustments | 35,184,073,061.94 |
Add: Net profit belong to parent company | 1,609,606,578.84 |
Less: the statutory surplus reserves | |
Extract discretionary surplus reserve | |
Extract general risk preparation | |
Common stock dividends payable | 2,157,790,283.66 |
Retained earnings at the end | 34,635,889,357.12 |
40. Operating revenue and cost
(1) Operating revenue and operating cost
In RMB Yuan
Item | Report period | Same period of last year |
Operating revenue | 34,440,982,013.45 | 32,617,521,902.09 |
Other operating revenue | 1,201,850,176.59 | 937,691,207.37 |
Operating cost | 30,614,845,704.45 | 28,792,755,690.32 |
(2) Main business (divisions)
In RMB Yuan
Item | Report period | Same period of last year | ||
Operating revenue | Operating cost | Operating revenue | Operating cost | |
Motor industry | 34,440,982,013.45 | 30,172,410,492.58 | 32,617,521,902.09 | 28,525,190,993.69 |
Total | 34,440,982,013.45 | 30,172,410,492.58 | 32,617,521,902.09 | 28,525,190,993.69 |
(3) Main business (product)
In RMB Yuan
Item | Report period | Same period of last year | ||
Operating revenue | Operating cost | Operating revenue | Operating cost | |
Sale of goods | 34,368,280,256.20 | 30,082,686,676.78 | 32,543,856,637.89 | 28,413,429,812.27 |
Outsourcing processing | 72,701,757.25 | 89,723,815.80 | 73,665,264.20 | 111,761,181.42 |
Total | 34,440,982,013.45 | 30,172,410,492.58 | 32,617,521,902.09 | 28,525,190,993.69 |
(4) Main business areas (points)
In RMB Yuan
Item | Report period | Same period of last year | ||
Operating revenue | Operating cost | Operating revenue | Operating cost | |
Domestic | 33,128,902,612.24 | 28,783,568,072.99 | 31,939,968,925.48 | 27,825,290,643.34 |
Overseas | 1,312,079,401.21 | 1,388,842,419.59 | 677,552,976.61 | 699,900,350.35 |
Total | 34,440,982,013.45 | 30,172,410,492.58 | 32,617,521,902.09 | 28,525,190,993.69 |
41. Tax and surcharges
In RMB Yuan
Item | Report period | Same period of last year |
Consumption tax | 1,046,865,578.31 | 1,176,447,268.05 |
City maintenance and construction tax | 81,462,766.85 | 94,761,334.23 |
Education additional expenses | 60,907,556.48 | 76,037,881.67 |
Others | 97,679,299.93 | 96,539,996.19 |
Total | 1,286,915,201.57 | 1,443,786,480.14 |
42. Operating expenses
In RMB Yuan
Item | Report period | Same period of last year |
Payroll and welfare | 179,109,833.87 | 167,605,237.83 |
Promotional fee and advertising fee | 903,062,133.99 | 172,192,621.54 |
Transportation expenses | 1,045,016,389.46 | 1,060,691,210.71 |
Travelling expenses | 30,138,418.47 | 35,699,649.99 |
Package expenses | 30,646,835.90 | 10,580,395.13 |
Administrative expenses | 2,271,915.34 | 7,627,254.67 |
Selling service fee | 309,623,568.29 | 478,091,205.25 |
Consulting fee | 2,347,166.50 | - |
Training fee | 15,475,414.33 | - |
Others | 25,770,752.36 | 71,688,466.89 |
Total | 2,543,462,428.51 | 2,004,176,042.01 |
43. General and administrative expenses
In RMB Yuan
Item | Report period | Same period of last year |
Payroll and welfare | 1,033,979,823.22 | 753,919,030.38 |
Technology research expenses | 481,875,764.34 | 496,834,118.06 |
Administrative expenses | 6,553,837.65 | 10,389,794.81 |
Depreciation and amortization | 482,901,113.09 | 439,047,564.15 |
Miscellaneous service charges | 1,189,374.05 | 1,977,124.68 |
Tax fee | - | 2,222,681.88 |
Traffic expenses | 26,145,159.06 | 25,708,114.03 |
Travelling expenses | 56,659,448.61 | 13,619,514.39 |
Entertainment expenses | 1,536,025.02 | 1,584,377.47 |
Others | 64,560,717.01 | 40,431,751.26 |
Total | 2,155,401,262.05 | 1,785,734,071.11 |
44. Financial expenses
In RMB Yuan
Item | Report period | Same period of last year |
Interest expense | 13,996,367.31 | 40,703,286.60 |
Less: interest income | 263,722,875.78 | 303,510,275.41 |
Exchange gain or loss | 16,320,129.48 | 1,961,950.68 |
Others | 7,887,536.68 | 14,023,435.98 |
Total | -225,518,842.31 | -246,821,602.15 |
45. Assets disposal income
In RMB Yuan
Item | Report period | Same period of last year | Included in 2018 non-recurring gains and losses |
Fixed assets disposal income | 18,771,809.69 | 8,914,486.07 | 18,771,809.69 |
Total | 18,771,809.69 | 8,914,486.07 | 18,771,809.69 |
46. Impairment loss on assets
In RMB Yuan
Item | Report period | Same period of last year |
1. Bad debt loss | 2,102,999.91 | -623,835.34 |
2. Impairment provision of obsolete inventory | 106,838,422.51 | 87,591,687.47 |
3. Impairment provision of fixed assets | - | 5,154,868.33 |
Total | 108,941,422.42 | 92,122,720.46 |
47. Investment income
In RMB Yuan
Item | Report period | Same period of last year |
Long-term equity investment income under equity method | 1,362,011,815.11 | 3,831,618,978.64 |
Investment income obtained during the period of holding available-for-sale financial assets | ||
Total | 1,362,011,815.11 | 3,831,618,978.64 |
48. Other income
In RMB Yuan
Item | Report period | Same period of last year | Explain |
R&D special funds | 526,000,000.00 | 500,000,000.00 | |
Vehicle development project support | 331,454,741.70 | 390,790,754.64 | |
Research and development grants for power and intelligent technology | 100,000,000.00 | 158,190,000.00 | |
Deferred revenue amortization | 78,888,221.15 | 79,980,008.84 | |
Other government subsidies | 79,888,256.47 | 24,874,142.38 | |
Total | 1,116,231,219.32 | 1,153,834,905.86 |
49. Non-operating income
In RMB Yuan
Item | Report period | Same period of last year |
Fines and others | 29,318,896.76 | 43,495,774.09 |
Total | 29,318,896.76 | 43,495,774.09 |
50. Non-operating expenses
In RMB Yuan
Item | Report period | Same period of last year |
Donation | 22,300,000.00 | 1,584,000.00 |
Vehicle reward | 4,080,100.00 | - |
Fines and late fees | 2,968,836.54 | - |
Others | 22,999,826.39 | 11,281,146.02 |
Total | 52,348,762.93 | 12,865,146.02 |
51. Income tax expenses
In RMB Yuan
Item | Report period | Same period of last year |
Current income tax expense | 43,577,796.68 | 145,560,653.05 |
Deferred income tax adjustment | -28,289,478.85 | -104,564,548.39 |
Total | 15,288,317.83 | 40,996,104.66 |
52. Notes to cash flow statement
(1) The major cash received relating to other operating activities
In RMB Yuan
Item | Amount |
Interest income | 238,562,155.21 |
Government grants related to operating activities | 1,162,743,710.07 |
Others | 319,580,006.32 |
Total | 1,720,885,871.60 |
(2) The major cash paid relating to other operating activities
In RMB Yuan
Item | Amount |
Selling expenses | 2,054,729,026.35 |
Administrative expenses | 638,520,325.74 |
Others | 723,986,444.39 |
Total | 3,417,235,796.48 |
(3) The major cash received relating to other investing activities
In RMB Yuan
Item | Amount |
Government grants related to assets | 17,358,750.00 |
Total | 17,358,750.00 |
(4) The major cash received relating to other financing activities
In RMB Yuan
Item | Amount |
Redemption of the deposit for acceptance | 880,129,667.40 |
Total | 880,129,667.40 |
(5) The major cash paid relating to other financing activities:
None
53. Supplementary information of cash flow statement
(1) Supplementary information of cash flow statement
In RMB Yuan
Supplementary information | Current Amount | Prior-period Amount |
1. Cash flow relating to operating activities calculated by adjusting the net profit | ||
Net profit | 1,617,481,673.47 | 4,667,462,601.55 |
Add: provision for assets impairment | 108,941,422.42 | 92,122,720.46 |
Depreciation of fixed assets, oil and gas assets, productive biological assets | 1,045,654,724.17 | 1,085,730,618.57 |
Amortization of intangible assets | 349,623,578.41 | 307,724,434.91 |
Amortization of long-term deferred expense | 113,355.78 | 154,198.52 |
Disposal loss/(income) on fixed assets, intangible assets and others long-term assets(with “-” for gains) | 41,953,319.31 | -8,972,014.55 |
Financial expense(with “-” for gains) | -225,518,842.31 | -246,821,602.15 |
Investment loss(with “-” for gains) | -1,362,011,815.11 | -3,831,618,978.64 |
Decrease in deferred tax assets(with “-” for gains) | -28,289,478.86 | -69,564,793.22 |
Decrease in inventory(with “-” for gains) | -60,238,054.79 | -3,461,887,164.25 |
Decrease in operating receivables(with “-” for gains) | 9,804,878,336.43 | 6,028,658,163.96 |
Increase in operating payables(with “-” for gains) | -6,933,248,936.62 | 403,223,316.88 |
Others | 42,062,477.85 | -6,506,777.93 |
Net cash flows from operating activities | 4,401,401,760.15 | 4,959,704,724.11 |
2. Investment and financing activities involving no cash incomings / outgoings | ||
3. Movement of cash and cash equivalents | ||
Ending balance of cash equivalents | 23,767,643,401.89 | 26,809,266,380.20 |
Less: beginning balance of cash equivalents | 21,451,305,090.53 | 22,993,432,067.05 |
Net increase in cash and cash equivalents | 2,316,338,311.36 | 3,815,834,313.15 |
(2) Cash and cash equivalents
In RMB Yuan
Item | Ending balance | Beginning balance |
I. Cash | ||
Including: Cash on hand | 11,825.00 | 33,089.31 |
Bank deposits that can be readily used | 23,767,631,576.89 | 21,451,272,001.22 |
II. Ending balance of cash and cash equivalents | 23,767,643,401.89 | 21,451,305,090.53 |
VIII. The change of consolidation scope
1. Business combination not under the Same Control
□ Applicable √ Not Applicable
2. Combination under the same control
□ Applicable √ Not Applicable
3. Counter purchase
□ Applicable √ Not Applicable
4. Disposing subsidiary
Whether there is a single disposal of the subsidiary company investment that is the loss of control of the situation
□ Applicable √ Not Applicable
Whether there is a situation of the loss of control over the period of the investment and the loss of control of the subsidiary companythrough multiple transactions
□ Applicable √ Not Applicable
5. Change of consolidation scope due to other reasons
(1) Newly established subsidiary companies during the reporting period
Name | Registered Address | Type of business | Registered Capital(Ten Thousand Yuan) | Proportion of shares enjoyed by the group |
Xiamen Changan New Energy Automobile Sales & Service Co., Ltd. | Fujian Province, Xiamen | Sales | 200 | 100.00 |
Guangzhou Changan New | Guangdong | Sales | 400 | 100.00 |
Energy Automobile Sales & Service Co., Ltd. | Province, Guangzhou | |||
Fuzhou Fuqing Changan New Energy Automobile Sales & Service Co., Ltd. | Fujian Province, Fuzhou | Sales | 200 | 100.00 |
Chongqing Changan New Energy Automobile Technology Co., Ltd. | Chongqing | R&D | 9900 | 100.00 |
(2) Subsidiary clearing during the reporting period
Name | Registered Address | Type of business | Registered Capital(Ten Thousand Yuan) | Proportion of shares enjoyed by the group |
Shanghai Changan Automobile Engineering Technology Co., Ltd. | Shanghai | R&D | 100 | 100.00 |
IX. Stake in other entities
1. Rights in subsidaries
The subsidiaries of the Company are as follows:
Company name | Main operating place | Registered place | Nature of business | Registered capital (ten thousand) | Total proportion of shareholders (%) | |
Direct | Indirect | |||||
I. The subsidiary formed by establishment or investment | ||||||
Hebei Changan Automobile Co., Ltd. (Note 1) | Dingzhou | Dingzhou | Manufacturing | 46,469 | 94.22 | - |
Chongqing Changan International Automobile Sales Co., Ltd. | Chongqing | Chongqing | Sales | 1,376 | 100.00 | - |
Chongqing Changan Vehicle Networking Technology Co., Ltd. | Chongqing | Chongqing | Sales | 8,850 | 100.00 | - |
Chongqing Changan Special Automobile Sales Co., Ltd (Note 2) | Chongqing | Chongqing | Sales | 500 | 50.00 | - |
Chongqing Changan Automobile Supporting Service Co., Ltd. | Chongqing | Chongqing | Sales | 3,000 | 99.00 | 1.00 |
Chongqing Changan New Energy Automobile Co. Ltd. | Chongqing | Chongqing | R&D | 2,900 | 65.00 | - |
Chongqing Changan Europe Design Academy Co., Ltd. | Turin, Italy | Turin, Italy | R&D | EUR1,738.36 | 100.00 | - |
Changan United Kingdom R&D Center Co., Ltd. | Nottingham, United Kingdom | Nottingham, United Kingdom | R&D | GBP2,482 | 100.00 | - |
Beijing Changan R&D Center Co., Ltd. | Beijing | Beijing | R&D | 100 | 100.00 | - |
Note 1: The Company owns 93.79% and 95.70% of voting shares of Nanjing Changan Automobile Co., Ltd. And Hebei ChanganAutomobile Co., Ltd. respectively, the difference between proportion of voting shares and proportion of shares held is due to the
Harbin Changan R&D Center Co., Ltd. | Habin | Habin | R&D | 100 | 100.00 | - |
Changan Japan Designing Center Co.,Ltd. | Yokohama, Japan | Yokohama, Japan | R&D | JPY2,000 | 100.00 | - |
Changan United States R&D Center Co., Ltd. | Troy, United states | Troy, United states | R&D | USD154 | 100.00 | - |
Changan Automobile Russia Co., Ltd. | Moscow, Russia | Moscow, Russia | Sales | USD20 | 100.00 | - |
Changan Brazil Holdings Limited | St. Paul, Brazil | St. Paul, Brazil | Sales | BRL100 | 100.00 | - |
Shenzhen Changan New Energy Automobile Service Co., Ltd | Shenzhen | Shenzhen | Sales | 5000 | 100.00 | - |
Hangzhou Changan Yixing Technology Co., Ltd. | Hangzhou | Hangzhou | Lease | 500 | 100.00 | - |
Hefei Changan Yixing Technology Co., Ltd. | Hefei | Hefei | Lease | 500 | 100.00 | - |
Nanjing Changan Connected Car Technology Co., Ltd. | Nanjing | Nanjing | Lease | 500 | 100.00 | - |
Beijing Changan Vehicle Networking Technology Co., Ltd. | Beijing | Beijing | Lease | 500 | 100.00 | - |
Haikou Changan Vehicle Networking Technology Co., Ltd. | Haikou | Haikou | Lease | 500 | 100.00 | - |
Changan Vehicle Networking (Shanghai) Technology Co., Ltd. | Shanghai | Shanghai | Lease | 500 | 100.00 | - |
Tianjin Changan Vehicle Networking Technology Co., Ltd. | Tianjin | Tianjin | Lease | 500 | 100.00 | - |
Xiamen Changan New Energy Automobile Sales & Service Co., Ltd. | Xiamen | Xiamen | Sales | 200 | 100.00 | - |
Guangzhou Changan New Energy Automobile Sales & Service Co., Ltd. | Guangzhou | Guangzhou | Sales | 400 | 100.00 | - |
Fuzhou Fuqing Changan New Energy Automobile Sales & Service Co., Ltd. | Fuzhou | Fuzhou | Sales | 200 | 100.00 | - |
Chongqing Changan New Energy Automobile Technology Co., Ltd. | Chongqing | Chongqing | R&D | 9900 | 100.00 | - |
II. The subsidiary formed by business combination not under common control | ||||||
Nanjing Changan Automobile Co., Ltd.(Note1) | Nanjing | Nanjing | Manufacturing | 60,181 | 84.73 | - |
III. The subsidiary formed by business combination under common control | ||||||
Chongqing Changan Automobile sales subsidiaries | China | China | Sales | 350 | 100.00 | - |
Hebei Baoding Changan Bus Co., Ltd. | Dingzhou | Dingzhou | Manufacturing | 3,000 | 100.00 | - |
Hefei Changan Automobile Co.,Ltd. | Hefei | Hefei | Manufacturing | 77,500 | 100.00 | - |
voting right consigned from minority shareholders.Note 2: The remaining shareholders of Chongqing Changan Special Automobile Co., Ltd. made an agreement with the Company thatthe remaining shareholders are to vote in accordance with the Company. The main financial and operating policies have beencontrolled by the Company, so it is included in the scope of consolidated financial statements.
As at June 30, 2018, the Group has no subsidiaries with important minority interests.
2. Transctions result in change of holdingshare proportion but no effect in control of subsidiaries
□ Applicable √ Not applicable
3. Stakes in joint ventures and associates
Company name | Main operating place | Registered place | Nature of business | Registered capital (ten thousand) | Total proportion of shareholders (%) | Accounting treatment | |
Direct | Inderect | ||||||
I. Joint ventures | |||||||
Chongqing Changan Suzuki Automobile Co., Ltd. | Chongqing | Chongqing | Manufacture and sale ofautomobiles, and components | USD19,000 | 50.00 | - | Equity |
Jiangling Holding Co., Ltd. | Nanjing | Nanjing | Manufacture and sale ofautomobiles, and components | 200,000 | 50.00 | - | Equity |
Changan Ford Automobile Co., Ltd. | Chongqing | Chongqing | Manufacture and sale ofautomobiles, and components | USD24,100 | 50.00 | - | Equity |
Changan Mazda Automobile Co., Ltd. | Nanjing | Nanjing | Manufacture and sale ofautomobiles, and components | USD11,097 | 50.00 | - | Equity |
Changan Ford Mazda Engine Co., Ltd. | Nanjing | Nanjing | Manufacture and sale ofautomobiles, and components | USD20,996 | 50.00 | - | Equity |
Changan PSA Automobiles Co., Ltd. | Shenzhen | Shenzhen | Manufacture and sale ofautomobiles, and components | 400,000 | 50.00 | - | Equity |
II. Associates | |||||||
Chongqing Changan Kuayue Automobile Co., Ltd. | Chongqing | Chongqing | Develop, product and sale of automobile and components; import and export goods. | 6,533 | 34.30 | - | Equity |
Chongqing Changan Kuayue Automobile Sales Co., Ltd. | Chongqing | Chongqing | Sale of Changan Kuayue’ s automobile and agricultural cars and components. | 300 | 34.30 | - | Equity |
X. Risks associated with financial instruments
1. Classification of financial instruments
The book values of different classes of financial instruments are as follows:
Financial assets
In RMB Yuan
June 30,2018 | Loans and accounts receivable | Available-for-sale financial assets | Total |
Cash | 24,067,745,140.49 | - | 24,067,745,140.49 |
Notes receivable | 18,390,476,412.74 | - | 18,390,476,412.74 |
Accounts receivable | 1,925,729,920.41 | - | 1,925,729,920.41 |
Other receivables | 2,096,542,096.16 | - | 2,096,542,096.16 |
Available-for-sale financial assets | - | 564,227,000.00 | 564,227,000.00 |
Interest receivable | 55,081,274.30 | - | 55,081,274.30 |
Total | 46,535,574,844.10 | 564,227,000.00 | 47,099,801,844.10 |
Financial liabilities
Technical advisory services for automobile | |||||||
Beijing Fang’an Taxi Co., Ltd. | Beijing | Beijing | For the car loan business | 2,897.96 | 20.70 | - | Equity |
Chongqing Auto Finance Co., ltd. | Chongqing | Chongqing | Provide car loan; provide vehicle loans and operating equipment loans to car dealers, including the construction loans of exhibition hall,spare parts loans and maintenance equipment loans, etc. | 476843.1 | 28.66 | - | Equity |
Business (limited partnership) | Zhenjiang | Zhenjiang | Non-securities equity investment activities and related consulting services | 150,001 | 32.67 | - | Equity |
Hangzhou Chelizi Intelligent Technology Co., Ltd. | Hangzhou | Hangzhou | Production and manufacture of computer software and automotive electronics | 630 | 20.00 | - | Equity |
In RMB Yuan
June 30,2018 | 2017 | |
Short-term loans | 186,000,000.00 | 185,000,000.00 |
Notes payable | 20,222,535,762.78 | 18,002,926,579.81 |
Accounts payable | 15,501,582,938.54 | 21,902,826,194.15 |
Dividend payable | 2,157,870,026.46 | 79,742.80 |
Other payables | 1,820,125,863.40 | 2,599,013,410.98 |
Non-current liabilities due within one year | 13,423,420.00 | 13,151,946.67 |
Long-term loans | - | 6,575,973.33 |
Total | 39,901,538,011.18 | 42,709,573,847.74 |
2. Transfer of financial assets
The transferred financial assets that entirely derecognized but continuing involved
As of June 30 2018, the Group has endorsed bank acceptance bill with a carrying amount of RMB 961,310,940 to suppliers to settlethe accounts payable. The maturities of the notes are between 1 to 6 months, according to the relevant provisions of the "law ofnegotiable instruments", if the banks refuse the payment, the holder has the right of recourse to the Group (the "continuinginvolvement"). The Group holds the view that almost all the risks and rewards concerned have been transferred; therefore, the bookvalue of the accounts payable should be derecognized. The maximum loss and the undiscounted cash flow of the continuinginvolvement and repurchase is equal to its book value, the Group regards the fair value of the continuing involvement is notsignificant.
In first half of 2018, the Group didn’t recoganize profit or loss on the transferring date. No revenue or expense should be recogazied
in accordance with the continuing involvement in the current period. The indorsement occurred flatly in this period.
3. Risks of financial instruments
The Group’s principal financial instruments, except for derivatives, include bank loans, bonds payable, cash, etc. The main purposeof these financial instruments is to raise finance for the Group’s operations. The Group has various other financial assets and
liabilities such as accounts receivable and accounts payable, which arise directly from its operations.
The main risks arising from the Group’s financial instruments are credit risk, liquidity risk and market risk. The Group’s risk
management policies are summarized below:
Credit risk
The Group trades only with recognized, creditworthy third parties. It is the Group’s policy that all customers who wish to trade on
credit terms are subject to credit verification procedures. In addition, receivable balances are monitored on an ongoing basis with the
result that the Group’s exposure to bad debts is not significant. For transactions that do not occur in the country of the relevant
operating unit, the Group does not offer credit terms without the approval of the special department of credit control.
With respect to credit risk arising from the other financial assets of the Group, which comprise cash and cash equivalents,
available-for-sale financial assets, other receivables, dividend receivables and certain derivatives financial instruments, the Group’s
exposure to credit risk arising from default of the counterparty, with a maximum exposure equal to the carrying amount of theseinstruments, listed as book value of financial assets in consolidated financial statements. In 2014, there was no credit risk arisingfrom financial guarantee.
No gage is required since the Group trades only with recognized, creditworthy third parties. Credit risks are managed by clients and
industries collectively. As at 30June 2017, among the Group’s collections with specific credit risk, 36.39% of accounts receivables of
the Group are due from top five clients respectively.
An analysis of financial assets of individual impairment:
June 30, 2018
In RMB Yuan
Total | Book value | Impairment provision | |
Accounts receivable | 1,925,729,920.41 | 1,963,278,031.34 | 37,548,110.93 |
Other receivables | 2,096,542,096.16 | 2,101,144,842.84 | 4,602,746.68 |
Notes receivable | 18,390,476,412.74 | 18,390,476,412.74 | - |
Available-for-sale financial assets | 564,227,000.00 | 564,227,000.00 | - |
Interest receivable | 55,081,274.30 | 55,081,274.30 | - |
Although the existence of the company in Part of the accounts receivable impairment due to credit risk, but should be singlerecognized impairment losses of accounts receivable balance of accounts receivable the ending balance of proportion is very small,and the company has been confirmed according to the situation of credit risk the possibility of credit risk loss. For no signs that needindividual recognized impairment losses of accounts receivable, the company according to the history of the credit risk of loss occuraging analysis of the proportion of reasonably estimate the possible loss of credit risk, and the provision for bad debt provision in thebalance sheet date. Therefore, the company does not exist because of the occurrence of credit risk and leads to a significant loss.
Liquidity riskThe Group adopts cycle liquidity planning instrument to manage capital shortage risks. The instrument takes into consideration the
maturity date of financial instruments plus estimated cash flow from the Group’s operations.
The Group’s objective is to maintain a balance between continuity of funding and flexibility and sufficient cash to support operating
capital through financing functions by the use of bank loans, debentures, etc.
Market riskInterest rate risk
The Group’s revenue and operating cash flows are seldomly influenced by the interest fluctuation. As at June 30, 2018, the Group’s
loans are bearing fixed interest rate and the Group is not hedging the risk currently.
Foreign currency risk
The Group’s exposures to fluctuation in foreign currency exchange rate mainly arise from operating activities where transactions are
settled in currencies other than the units' functional currency and net investment to offshore subsidiary.
In 2018, the Group has less transactional currency exposures of its total revenue that is valued in currencies other than the units'
functional currency. Since most of the Group’s businesses are opertated in China mainland, the estimated influence of fluctuation offoreign currency is insignificant; therefore, the Group hasn’t carried out large amount of hedging to reduce the risk.
Equity instruments investment price risk
The Group is exposed to equity price risk arising from individual equity investments classified as available-for-sale investments
(Note VII 9) as at June 30, 2018. The Group’s listed investments are listed on the Shanghai stock exchanges and valued at quoted
market prices at the end of the reporting period. The following table demonstrates the sensitivity to every 5% change ( based on the
carrying amount as at the end of reporting period) in the Group’s net profit and fair value of the equity investments, with all other
variables held constant, based on their carrying amounts at the end of the reporting period.
In RMB Yuan
Carrying amount of equity investments | Change in fair value | Increase/ |
(decrease) in net profit | |||
June 30, 2018 | |||
Shanghai- Available for sale | 136,675,000.00 | 5% | 6,833,750.00 |
Shanghai- Available for sale | 136,675,000.00 | -5% | -6,833,750.00 |
Dec. 31, 2017 | |||
Shanghai- Available for sale | 164,365,000.00 | 5% | 8,218,250.00 |
Shanghai- Available-for-sale | 164,365,000.00 | -5% | -8,218,250.00 |
4. Capital management
The main goal of the Group’s capital management is to ensure that the ability of continuous operation, and maintain a healthy capital
ratios in order to support business development, and to maximize shareholder value.
The Group manages the capital structure and adjusts it with the change of economy trend and the risk feature of the assets. Tomaintain or adjust the capital structure, the Group can rectify dividend distribution, return capital to shareholders or issue new shares.The Group is not subject to external mandatory capital requirements constraints. The goal, principle and procedure of capitalmanagement stay the same in First half of 2018.
On June 30, 2018 and December 31, 2017, the Group’s leverage ratio on the balance sheet date is as follows:
June 30, 2018 December 31, 2017
Leverage ratio 53.01% 55.28%
XI. Disclosure of fair value
1. Assets and liabilities measured at fair value
June 30, 2018
In RMB Yuan
Input measured at fair value | ||||
(The first level) | (The second level) | (The third level) | Total | |
Available-for-sale financial assets- equtiy instruments | 136,675,000.00 | - | - | 136,675,000.00 |
December 31, 2017
In RMB Yuan
Input measured at fair value | ||||
(The first level) | (The second level) | Important but unobservable input (The third level) | Total | |
Available-for-sale | 164,365,000.00 | - | - | 164,365,000.00 |
2. Assets and liabilities disclosed in fair value
Up to June 30, 2018, there is neither transference of financial assets and liabilities between first and second level, nor transference toor from third level.
Fair value of financial instruments
Following are book value and fair value of financial instruments of the group except for equity instruments whose fair value issimilar with book value and those neither have quoted market price in active market nor be reliably measured.
In RMB Yuan
financial assets- equtiyinstruments
Book value | Fair value | |||
Beginning | Ending | Beginning | Ending | |
Finacial assets | ||||
Financial assets available for sale- equtiy instruments | 136,675,000.00 | 164,365,000.00 | 136,675,000.00 | 164,365,000.00 |
Finacial liabilities | ||||
Bonds payable | ||||
Non current liabilitiesdue within one year |
Management has assessed and concluded that the fair value of the accounts, including cash, notes receivable, accounts receivable,other receivables, short-term loans, intrest payable, dividend payables, other payables, notes payable, accounts payable and so on,equal to book value because of their short term to overdue.
Financial assets and financial liabilities are measured at the amount that an asset could be exchanged for or by which a liability could
be incurred or settled by knowledged, willing parties in a current arm’s-length transaction, other than liquidation or unwilling sales.
Methods and hypothesis followed are used for determining fair value.
Bonds payable are carried at armotized cost and thoses fair value are determined by the settlement price on 30 June 2018 and 31December 2017, which are traded in open and active market.
XII. Related parties and related party transactions
1. Parent company of the Company
Parent company | Related parties’ relationship | Company type | Place of registration | Legal representative | Nature of the business | Registered capital | Proportion of shares in the Company (%) | Proportion of voting rights in the company (%) | Final controlling party | Organization Code |
China Changan Automobile Group Co ,Ltd. | controlling shareholder | Liability limited | Beijing | Xu Liuping | Manufacture and sale of automobiles, engine, and components | 4,582,373,700.00 | 19.33% | 19.33% | China South Industries Group corporation | 9111000-071093-39484 |
Main business and products: design, development, manufacturing and marketing of automobiles, motorcycles, automobilemotorcycle engines, automobile motorcycle parts and components; Sales of optical products, electronic and optoelectronic
products,night vision equipments, information and communications equipment; technology development, technology transfer,technical consulting, technical training, technical services related to the above mentioned business; Import and export business; Assetacquisitions, recapitalization.
2. Subsidiaries
See subsidiaries in IX. Stake in other entities.
3. Other related parties
Other related parties | Relationship |
Changan Ford Automobile Co.,Ltd. | Joint venture |
Changan Ford Automobile Co., Ltd. - Harbin branch | Joint venture |
Changan Mazda Automobile Co.,Ltd. | Joint venture |
Changan Ford Mazda Engine Co., Ltd. | Joint venture |
Chongqing Changan Suzuki Automobile Co., Ltd. | Joint venture |
Jiangling Holding Co., Ltd. | Joint venture |
Jiangling Holding Landwind Plant | Joint venture |
Changan PSA Automobiles Co., Ltd. | Joint venture |
Chongqing Changan Kuayue Automobile Co., Ltd. | Associated enterprise |
Chongqing Changan Industrial (Group) Co., Ltd. | Subordinate company of South Industries |
Chongqing Changan Real Estate Development Co., Ltd. | Subordinate company of Changan Industries |
Chongqing Changan Construction Engineering Co., Ltd. | Subordinate company of Changan Industries |
Sichuan Hongguang Machinery and Electrics Co., Ltd. | Subordinate company of Changan Industries |
Chongqing Changan Property Management Co., Ltd. | Subordinate company of Changan Industries |
China Changan Automobile Co., Ltd. | Parent company |
China Changan Automobile Co., Ltd. – Chongqing Qingshan Transmission Branch | Branch of China Changan |
Sichuan Jianan Industrial Co., Ltd. | Subordinate company of China Changan |
Sichuan Jian'an Industrial Co., Ltd. - Chengdu Jianan Axle Branch | Subordinate company of China Changan |
South Air International Co.,Ltd. | Subordinate company of China Changan |
Sichuan Ningjiang Shanchuan Machinery Co, Ltd. | Subordinate company of China Changan |
Sichuan Ningjiang Shanchuan Machinery Co, Ltd. - Longchang Shock Absorber Branch | Subordinate company of China Changan |
Chengdu Huachuan Electric Equipment Co., Ltd. | Subordinate company of China Changan |
Chongqing Automobile Air-Conditioning Co., Ltd. | Subordinate company of China Changan |
Csgc Trw Chassis Systems Co.,Ltd. | Subordinate company of China Changan |
Chongqing Changan Min Sheng Logistics Co., Ltd. | Subordinate company of China Changan |
Chongqing Wanyou Auto Sales and Service Co., Ltd. | Subordinate company of China Changan |
Chongqing Wanyou Longrui Auto Sales and Service Co., Ltd. | Subordinate company of China Changan |
Chongqing Wanyou Longxing Auto Sales and Service Co., Ltd. | Subordinate company of China Changan |
Guangxi Wanyou Auto Sales and Service Co., Ltd. | Subordinate company of China Changan |
Nanning Wanyou Auto Sales and Service Co., Ltd. | Subordinate company of China Changan |
Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. | Subordinate company of China Changan |
Chengdu Wanyou Trading Co., Ltd. | Subordinate company of China Changan |
Hafei Motor Co., Ltd. | Subordinate company of China Changan |
Chongqing Anfu Automobile Marketing Co., Ltd. | Subordinate company of China Changan |
China Changan Automobile Group Tianjin Sales Co., Ltd. | Subordinate company of China Changan |
Chengdu Ningjiang Zhaohe Automobile Components Co., Ltd. | Subordinate company of China Changan |
Harbin Dongan Auto Engine Co., Ltd. | Subordinate company of China Changan |
Harbin Dongan Automotive Engine Manufacturing Co., Ltd. | Subordinate company of China Changan |
United Prosperity Investment Co., Ltd (Hongkong) | Subordinate company of China Changan |
United Prosperity Investment Co., Ltd (Shenzhen) | Subordinate company of China Changan |
Wanyou Automobile Investment Co., Ltd. | Subordinate company of China Changan |
Chengdu Wanyou Auto Trade Service Co., Ltd. | Subordinate company of China Changan |
Chongqing Wanyou Economic Development Co., Ltd. | Subordinate company of China Changan |
Chongqing Wanyou Economic Development Co., Ltd. - Jiangnan Branch | Subordinate company of China Changan |
Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. | Subordinate company of China Changan |
Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. – Guangxi Branch | Subordinate company of China Changan |
Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. – Guizhou Branch | Subordinate company of China Changan |
Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. – Parts Branch | Subordinate company of China Changan |
Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. – Sichuan Branch | Subordinate company of China Changan |
Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. –Yunnan Branch | Subordinate company of China Changan |
Yunnan Wanyou Automobile Sales & Service Co., Ltd. | Subordinate company of China Changan |
Guizhou Wanyou Automobile Sales & Service Co., Ltd. | Subordinate company of China Changan |
Yunnan Xiangyu Automobile Sales & Service Co., Ltd. | Subordinate company of China Changan |
Chongqing Fuji Supply Chain Management Co., Ltd. | Subordinate company of China Changan |
Panzhihua Wanyou Automobile Sales & Service Co., Ltd. | Subordinate company of China Changan |
Ya'an Wanyou Automobile Sales & Service Co., Ltd. | Subordinate company of China Changan |
Chongqing Wanyou Ducheng Automobile Sales & Service Co., Ltd. | Subordinate company of China Changan |
Chongqing Wanyou Xingjian Automobile Sales & Service Co., Ltd. | Subordinate company of China Changan |
Luzhou Wanyou Automobile Service Co., Ltd. | Subordinate company of China Changan |
Luzhou Wanyou Automobile Service Co., Ltd. – Naxi Branch | Subordinate company of China Changan |
Chongqing Qingshan Transmission Sales Co., Ltd. | Subordinate company of South Group |
Hubei Xiaogan Huazhong Automobile Light Co., Ltd. | Subordinate company of South Group |
Chongqing Changrong Machinery Co., Ltd. | Subordinate company of South Group |
Chengdu Lingchuan Special Industry Co., Ltd. | Subordinate company of South Group |
Chengdu Lingchuan Vehicle Oil Tank Co., Ltd. | Subordinate company of South Group |
Chongqing Changfeng Jiquan Machinery Co., Ltd. | Subordinate company of South Group |
Yunnan Xiyi Industries Co., Ltd. | Subordinate company of South Group |
Chongqing Shangfang Automobile Fittings Co., Ltd. | Subordinate company of South Group |
Chongqing Dajiang Xinda Vehicles Shares Co., Ltd. | Subordinate company of South Group |
Chongqing Dajiang Yuqiang Plastic Co., Ltd. | Subordinate company of South Group |
Chongqing Jianshe Automobile Air-conditioner Co., Ltd. | Subordinate company of South Group |
China South Industries Group Finance Co., Ltd. | Subordinate company of South Group |
Southwest Ordnance Industry Corporation | Subordinate company of South Group |
Chongqing Wanyou Engineering Installation Co., Ltd. | Subordinate company of South Group |
Chengdu Wanyou Filter Co., Ltd. | Subordinate company of South Group |
Chongqing Yihong Engineering Plastic Products Co., Ltd. | Subordinate company of South Group |
Beijing Beiji Mechanical and Electrical Industry Co., Ltd. | Subordinate company of South Group |
Chengdu Jialing Huaxi Optical & Precision Machinery Co., Ltd. | Subordinate company of South Group |
Chongqing Nexteer steering system co., Ltd | Subordinate company of South Group |
Chongqing Dajiang Jiexing Forging Co., Ltd. | Subordinate company of South Group |
Chongqing Jialing Yimin Special Equipment Co., Ltd. | Subordinate company of South Group |
Chengdu Guangming Tianzhong Environmental Protection Technology Co., Ltd. | Subordinate company of South Group |
Chongqing Xiyi Automobile Connecting Rod Co., Ltd. | Subordinate company of South Group |
4. Related-party transaction
(1) Goods purchased and services received
In RMB Yuan
Related parties | Nature of the transaction | Current amount | Approved transaction amount | Whether it exceeds the transaction amount | Prior-period amount |
Changan Ford Automobile Co.,Ltd. | Purchase of spare parts | 50,528,796.32 | 134,632,100.00 | No | 75,369,099.10 |
Chongqing Changan Suzuki Automobile Co., Ltd. | Purchase of spare parts | 40,015,153.39 | 148,209,400.00 | No | 91,610,674.73 |
Changan Peugeot Citroen Automobile Co., Ltd. | Purchase of spare parts | - | 270,394,300.00 | No | - |
Chongqing Xiyi Automobile Linkage Rod Co., Ltd. | Purchase of spare parts | -4,295.93 | - | No | 147,693.40 |
Chongqing Changan Kuayue Automobile Co., Ltd. | Accept service | 2,185,200.00 | 22,000,000.00 | No | 53,411,400.00 |
Changan Industries Group Co. Ltd. | Purchase of spare parts and accept service | 35,491,790.41 | 29,081,000.00 | Yes | 22,284,149.38 |
Chongqing Changan Minsheng Logistics Co., Ltd | Transportation fee | 669,938,773.76 | 2,683,286,600.00 | No | 768,217,130.41 |
Sichuan Hongguang | Purchase of spare | 5,247,314.70 | 18,211,100.00 | No | 3,742,906.54 |
Related parties | Nature of the transaction | Current amount | Approved transaction amount | Whether it exceeds the transaction amount | Prior-period amount |
Machinery and Electrics Co., Ltd. | parts | ||||
Chongqing Changan Property Management Co., Ltd. | Accept service | 1,880,756.31 | 4,576,100.00 | No | 3,119,331.42 |
Chongqing Changan Construction Engineering Co., Ltd. | Purchase of spare parts | 767,688.60 | 296,575,200.00 | No | - |
China Changan Automobile Co., Ltd. | Purchase of spare parts | - | - | No | 310,385.23 |
China Changan Automobile Co., Ltd. –Chongqing Qingshan Transmission Branch | Purchase of spare parts | 790,009,094.86 | 2,215,145,600.00 | No | 947,612,141.41 |
Sichuan Jian'an Industry Co., Ltd. | Purchase of spare parts | 396,002,416.92 | 1,048,424,200.00 | No | 470,981,559.71 |
Sichuan Jian'an Industrial Co., Ltd.–Chengdu Jian'an Automobile Bridge Branch | Purchase of spare parts | -20,068.28 | 7,573,100.00 | No | - |
Southern Inte Air Conditioning Co., Ltd. | Purchase of spare parts | 278,286,144.78 | 745,430,600.00 | No | 227,232,590.96 |
Sichuan Ningjiang Shanchuan Machinery Co, Ltd. | Purchase of spare parts | 68,700,314.53 | 208,112,800.00 | No | 105,119,671.81 |
Sichuan Ningjiang Shanchuan Machinery Co, Ltd.-Longchang Shock Absorber Branch | Purchase of spare parts | 14,571,788.09 | 66,717,300.00 | No | 55,686,449.39 |
Chengdu Huachuan Electric Equipment Co., Ltd. | Purchase of spare parts | 147,010,890.28 | 358,368,300.00 | No | 172,671,760.20 |
Chongqing Changfeng Jiquan Machinery Co., Ltd. | Purchase of spare parts | 11,501,147.75 | 44,057,400.00 | No | 20,665,043.14 |
Southern Tianhe Chassis System Co., Ltd. | Purchase of spare parts | 302,296,647.64 | 925,778,600.00 | No | 255,910,955.40 |
Chengdu Ningjiang Zhaohe Automobile Components Co., Ltd. | Purchase of spare parts | 11,369,508.22 | 37,672,400.00 | No | 23,211,614.17 |
Related parties | Nature of the transaction | Current amount | Approved transaction amount | Whether it exceeds the transaction amount | Prior-period amount |
Harbin Dongan Auto Engine Co., Ltd. | Purchase of spare parts | 407,727,748.76 | 1,057,646,400.00 | No | 470,425,124.49 |
Harbin Dongan Automotive Engine Manufacturing Co., Ltd. | Purchase of spare parts | 232,165,111.94 | 789,592,900.00 | No | 885,672,904.03 |
Hubei Xiaogan Huazhong Automobile Light Co., Ltd. | Purchase of spare parts | 41,165,671.16 | 92,815,200.00 | No | 41,495,725.39 |
Chongqing Changrong Machinery Co., Ltd. | Purchase of spare parts | 12,476,284.96 | 71,831,400.00 | No | 11,785,659.17 |
Chengdu Lingchuan Special Industry Co., Ltd. | Purchase of spare parts | 16,648,659.65 | 80,733,900.00 | No | 13,228,609.04 |
Chengdu Lingchuan Vehicle Oil Tank Co., Ltd. | Purchase of spare parts | 36,629,643.10 | 68,885,600.00 | No | 23,549,781.40 |
Yunnan Xiyi Industries Co., Ltd. | Purchase of spare parts | 50,426,409.01 | 122,033,400.00 | No | 44,919,506.45 |
Chongqing Shangfang Automobile Fittings Co., Ltd. | Purchase of spare parts | 25,730,159.90 | 77,385,800.00 | No | 37,750,754.20 |
Chongqing Dajiang Xinda Vehicles Shares Co., Ltd. | Purchase of spare parts | 81,105,898.94 | 88,924,300.00 | No | 13,876,784.01 |
Chongqing Dajiang Yuqiang Plastic Co., Ltd. | Purchase of spare parts | 161,444,150.25 | 213,901,300.00 | No | 1,683,008.98 |
Chongqing Jianshe Automobile Air-conditioner Co., Ltd. | Purchase of spare parts | 44,409,783.45 | 95,165,000.00 | No | 95,402,778.55 |
Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. | Purchase of spare parts | - | - | No | 57,762,014.69 |
Chengdu Wanyou Filter Co., Ltd. | Purchase of spare parts | 93,328,718.59 | 165,183,400.00 | No | 99,629,474.41 |
Chongqing Yihong Engineering Plastic Products Co., Ltd. | Purchase of spare parts | 14,426,634.47 | 27,087,300.00 | No | 20,476,902.56 |
Chengdu Ningxing Automobile Spring Co., Ltd | Purchase of spare parts | - | 24,882,700.00 | No | 5,857,317.24 |
Chengdu Jialing Huaxi Optical | Purchase of spare | 7,735,029.09 | 25,721,400.00 | No | 5,426,840.77 |
Related parties | Nature of the transaction | Current amount | Approved transaction amount | Whether it exceeds the transaction amount | Prior-period amount |
& Precision Machinery Co., Ltd. | parts | ||||
Chongqing Qingshan Transmission Sales Co., Ltd. | Purchase of spare parts | 3,372,342.00 | 6,989,800.00 | No | 2,765,777.75 |
Chongqing Dajiang Jiexing Forging Co., Ltd. | Purchase of spare parts | 778,239.55 | 14,895,800.00 | No | 2,152,623.81 |
Beijing Beiji Mechanical&Electric Induustry Co., Ltd | Purchase of spare parts | 41,364.74 | 201,300.00 | No | 69,412.93 |
Chongqing Jialing Yimin Special Equipment Co., Ltd. | Purchase of spare parts | No | |||
Chengdu Guangming Tianzhong Environmental Protection Technology Co., Ltd. | Purchase of spare parts | -1,771.14 | - | No | - |
United Prosperity Investment Co., Ltd(Note 1) | Accept service | No | |||
Chongqing Nexteer steering system co., ltd | Purchase of spare parts | 307,967,283.63 | 869,956,300.00 | No | 51,877,949.09 |
Chongqing Wanyou Economic Development Co., Ltd. | Purchase of spare parts | 191,811,118.53 | 368,667,200.00 | No | - |
Chongqing Wanyou Engineering Installation Co., Ltd. | Engineer material | - | 32,025,000.00 | No | - |
Jiangling Holdings Co., Ltd. | Purchasing complete vehicles and parts | 211,813,380.00 | 1,034,052,800.00 | No | - |
Total | 4,766,980,922.93 | 14,592,824,300.00 | 5,183,113,505.36 |
The price of the Group’s purchase from related parties is based on contracts agreed by both parties.
Note1: During the reporting period, United Prosperity Investment Co., Ltd did not provide trade financing services to the companyfor the overseas procurement of machine equipments.
(2) Goods sold and services offered
In RMB Yuan
Related parties | Nature of the transaction | Current amount | Prior-period Amount |
Changan Ford Automobile Co.,Ltd. | Sales of raw materials and components | 959,683.96 | 15,719,208.35 |
Chongqing Changan Suzuki Automobile Co., Ltd. | Sales of raw materials and components | 9,470,279.42 | 8,890,992.31 |
Jiangling holdings co., ltd | Sales of raw materials and components | 92,466,850.38 | 29,782,109.60 |
Chongqing Changan Minsheng Logistics Co., Ltd | Sales of raw materials and components | 49,034,525.61 | - |
Sichuan Hongguang Machinery and Electrics Co., Ltd. | Sales of raw materials and components | 965,831.85 | 1,074,846.49 |
China Changan Automobile Co., Ltd. –Chongqing Qingshan Transmission Branch | Sales of raw materials and components | 3,754.72 | 52,935.85 |
Chengdu Huachuan Electric Equipment Co., Ltd. | Sales of raw materials and components | - | 24,075.47 |
Southern Tianhe Chassis System Co., Ltd. | Sales of raw materials and components | 3,754.72 | 72,181.13 |
Chongqing Anfu Automobile Co., Ltd. | Sales of vehicles,spare parts | 4,504,052.51 | 22,148,398.28 |
China Changan Automobile Group Tianjin Sales Co., Ltd. | Sales of vehicles,spare parts | 96,595,781.73 | 74,515,797.49 |
Harbin Dongan Automotive Engine Manufacturing Co., Ltd. | Technical service | 541,580.93 | 18,944,981.56 |
Harbin Dongan Auto Engine Co., Ltd. | Sales of spare parts | 5,807,864.29 | 27,764,630.20 |
Wanyou Automobile Investment Co.,Ltd | Sales of vehicles, spare parts | 278,840,354.88 | 437,016,833.02 |
Chengdu Lingchuan Special Industry Co., Ltd. | Sales of spare parts | 10,007.55 | 4,082,092.31 |
Yunnan Xiyi Industries Co., Ltd. | Sales of spare parts | 4,070,438.35 | 2,645,320.52 |
ChongqingChangan Kuayue Automobile Co., Ltd. | Sales of spare parts | 26,078.68 | 632,918.59 |
Southern Inte Air Conditioning Co., Ltd. | Sales of spare parts | 4,708.49 | 4,708.49 |
Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. | Sales of vehicles, spare parts | - | 731,784,709.20 |
Chongqing Wanyou Zunda Automobile Sales and Service Co., Ltd. Guangxi Branch | Sales of vehicles, spare parts | 12,136,503.95 | 154,535,311.08 |
Nanning Wanyou Automobile Sales & Service Co., Ltd. | Sales of vehicles, spare parts | 18,660,666.94 | 32,281,963.18 |
Chongqing Wanyou Zunda Automobile Sales and Service Co., Ltd. Sichuan Branch | Sales of vehicles, spare parts | 57,749,959.33 | 542,474,119.33 |
Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. | Sales of vehicles, spare parts | 564,089,962.66 | 471,785,083.17 |
Chongqing Shangfang Automobile Fittings Co., Ltd. | Sales of vehicles, spare parts | 35,037.74 | 14,445.28 |
Chongqing Dajiang Xinda Vehicles Shares Co., Ltd. | Sales of vehicles, spare parts | - | 50,513.21 |
Chongqing Wanyou Zunda Automobile Sales and Service Co., Ltd. Yunnan Branch | Sales of vehicles, spare parts | 41,553,601.57 | 401,384,549.34 |
Chongqing Wanyou Zunda Automobile Sales and Service Co., Ltd. Guizhou Branch | Sales of vehicles, spare parts | 27,679,119.48 | 539,172,575.27 |
Yunnan Xiangyu Auto Sales and Service Co., Ltd. | Sales of vehicles, spare parts | 67,497,061.87 | 38,598,636.78 |
Chengdu Wanyou Filter Co., Ltd. | Sales of vehicles, spare parts | 3,754.72 | 48,120.75 |
China South Industries Group Finance Co.,Ltd | Regulatory charges | 5,333,618.49 | 53,011,538.65 |
Changan Mazda Automobile Co., Ltd. | Sales of vehicles, spare parts | 1,064,339.48 | - |
Sichuan Jian'an Industry Co., Ltd. | Other service fees | 3,754.72 | - |
Sichuan Ningjiang Shanchuan Machinery Co., Ltd. | Other service fees | 3,754.72 | - |
Guangxi Wanyou Automobile Sales & Service Co., Ltd. | Sales of vehicles, spare parts | 79,266,636.74 | - |
Chengdu Wanyou Auto Trade Service Co., Ltd. | Sales of vehicles, spare parts | 307,793,749.81 | - |
Chongqing Changrong Machinery Co., Ltd. | Other service fees | 3,754.72 | - |
Chongqing Construction Vehicle Air Conditioner Co., Ltd. | Other service fees | 3,754.72 | - |
Chongqing Wanyou Economic Development Co., Ltd. | Sales of vehicles, spare parts | 466,874,730.20 | - |
Chongqing Wanyou Economic Development Co., Ltd. Jiangnan Branch | Sales of vehicles, spare parts | 318,109,175.14 | - |
Chongqing Wanyou Zunda Automobile Sales and Service Co., Ltd. Parts Branch | Sales of spare parts | 58,340,829.40 | - |
Yunnan Wanyou Automobile Sales & Service Co., Ltd. | Sales of vehicles, spare parts | 350,671,270.23 | - |
Guizhou Wanyou Automobile Sales & Service Co., Ltd. | Sales of vehicles, spare parts | 452,909,126.31 | - |
Panzhihua Wanyou Automobile Sales & Service Co., Ltd. | Sales of spare parts | 11,045.54 | - |
Ya'an Wanyou Automobile Sales & Service Co., Ltd. | Sales of spare parts | 16,589.56 | - |
Chongqing Wanyou Ducheng Automobile Sales & Service Co., Ltd. | Sales of spare parts | 72,903.23 | - |
Chongqing Wanyou Xingjian Automobile Sales & Service Co., Ltd. | Sales of spare parts | 71,605.18 | - |
Zhangzhou Wanyou Automobile Service Co., Ltd. | Sales of spare parts | 53,390.03 | - |
Total | 3,373,315,244.55 | 3,608,513,594.90 |
The price of the Group’s purchase from related parties is based on contracts agreed by both parties.
(3) Related-party leasing
In RMB Yuan
Lessee | Type of leased | Starting date | Expiring date | Report period recognized |
assets | rental | |||
Jiangling Holdings Co., Ltd. | Equipment | 2017.04.01 | 2019.03.03 | 4,422,030.00 |
Chongqing Changan Min Sheng Logistics Co., Ltd. | Building | 2016.09.01 | 2019.08.31 | 951,550.00 |
Chongqing Changan Industrial Co., Ltd. | Building | 2018.01.01 | 2032.12.31 | 3,283,373.71 |
Rent assets from related parties
In RMB Yuan
Lessor | Type of leased assets | Starting date | Expiring date | Report period recognized rental |
Chongqing Changan Min Sheng Logistics Co., Ltd. | Storeroom | 2017.12.17 | 2018.12.31 | 714,065.94 |
Chongqing Changan Min Sheng Logistics Co., Ltd. | Storeroom | 2017.06.08 | 2017.11.30 | 470,058.49 |
Chongqing Changan Suzuki Automobile Co., Ltd. | Site | 2017.03.01 | 2018.02.28 | 104,899.04 |
Chongqing Changan Real Estate Development Co., Ltd. | Site | 2018.01.01 | 2018.12.31 | 764,274.28 |
Chongqing Changan Property Management Co., Ltd. | Building | 2017.04.01 | 2018.03.31 | 129,548.25 |
Chongqing Changan Property Management Co., Ltd. | Building | 2018.04.01 | 2018.04.30 | 43,182.75 |
Chongqing Changan Real Estate Development Co., Ltd. | Building | 2018.01.01 | 2018.12.31 | 304,833.00 |
(4) Other related transactionsIntegrated service charges
In RMB Yuan
Related parties | Nature of the transaction | Report period Amount | Same period of last period Amount |
Changan Industries Group Co. Ltd | Payment of land rental fees | 15,738,619.47 | 122,460.45 |
Payment of building rental fees | 2320098.28 | - | |
Payment of utilities | 41,238,737.71 | 45,214,566.89 | |
Payment of fire fighting fees | - | 685,000.00 | |
Others | 2,604,188.16 | 3,127,196.57 | |
Total | 61,901,643.62 | 49,149,223.91 |
Purchase of project materials
In RMB Yuan
Related parties | Report period Amount | Same period of last period Amount |
Chongqing Changan Construction Co., Ltd | 285,684,556.02 | 101,429,877.83 |
Chongqing Changan Min Sheng Logistics Co., Ltd. | 362,735.93 | 5,493,075.52 |
Chongqing wanyou engineering installation co., ltd | 49,273,687.28 | 20,944,360.81 |
Total | 335,320,979.23 | 127,867,314.16 |
Staff expenses for technical supporting
In RMB Yuan
Related parties | Report period Amount | Same period of last period Amount |
Changan Mazda Automobile Co.,Ltd. | 5,113,134.48 | 5,132,075.47 |
Chongqing Changan Suzuki Automobile Co., Ltd. | 1,539,750.64 | - |
Changan Ford Automobile Co.,Ltd. | 10,500,543.45 | 10,762,414.02 |
Total | 17,153,428.57 | 15,894,489.49 |
Techonology development service charges
In RMB Yuan
Related parties | Report period Amount | Same period of last period Amount |
Jiangling Holdings Co., Ltd. | 1,886,792.45 | - |
Total | 1,886,792.45 | - |
Collection of trademark use rights fees
In RMB Yuan
Related party monetary funds
In RMB Yuan
Related parties | Ending Amount | Beginning Amount |
China South Industries Group Finance Co., Ltd | 4,570,371,194.59 | 4,449,345,493.13 |
Changan Automobile Finance Co., Ltd | 1,500,000,000.00 | 1,500,000,000.00 |
In the first half of 2018, the annual rate of return of the company in the financial limited liability company of China South IndustriesGroup Finance Co., Ltd and Changan automobile finance co., ltd is 1.9 % and 3.915 % respectively.
BorrowingShort-term borrowing
In RMB Yuan
Related parties | Ending Amount | Beginning Amount |
China South Industries Group Finance Co., Ltd | 186,000,000.00 | 175,000,000.00 |
Interest income of deferred payment
In RMB Yuan
Related parties | Report period Amount | Same period of last period Amount |
Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. | - | 131,052.14 |
Wanyou Automobile Investment Co., Ltd. | 2,186.32 | 705,979.48 |
Chongqing Wanyou Zunda Automobile Sales and Service Co., Ltd. Guangxi Branch | - | 19,045.30 |
Chongqing Wanyou Zunda Automobile Sales and Service Co., Ltd. Guizhou Branch | - | 81,722.22 |
Yunan Xiangyu Auto Sales and Service Co., Ltd. | - | 12,622.23 |
Chongqing Wanyou Zunda Automobile Sales and Service Co., Ltd. Sichuan Branch | - | 816,674.36 |
Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. | 116,762.05 | 520,312.83 |
Chongqing Wanyou Zunda Automobile Sales and Service Co., Ltd. Yunan Branch | - | 1,115,457.26 |
China Changan Automobile Group Tianjin Sales Co., Ltd. | 8,617.09 | - |
Chengdu Wanyou Auto Trade Service Co., Ltd. | 48,452.99 | - |
Yunnan Wanyou Automobile Sales & Service Co., Ltd. | 64,533.33 | - |
Related parties | Report period Amount | Same period of last period Amount |
Chongqing Changan Kuayue Automobile Co., Ltd. | 6,483,396.23 | 3,744,169.81 |
Guizhou Wanyou Automobile Sales & Service Co., Ltd. | 28,282.91 | - |
Total | 268,834.69 | 3,402,865.82 |
5. Payment and receivables of related parties
Payment receivables of related listed companies
In RMB Yuan
Items | Related parties | Ending balance | Beginning balance | ||
Book balance | Provision for bad-debts | Book balance | Provision for bad-debts | ||
Notes receivable | Tianjin Sales Co., Ltd.CCAG | 39,526,490.00 | - | 37,824,480.00 | - |
Notes receivable | Wanyou Automobile Investment Co., Ltd. | 207,400,000.00 | - | 2,676,220,000.00 | - |
Notes receivable | Yunnan Wanyou Automobile Sales and Service Co., Ltd | 124,380,000.00 | - | 17,000,000.00 | - |
Notes receivable | Chengdu Wanyou Auto Trade Service Co., Ltd. | 145,000,000.00 | - | 16,900,000.00 | - |
Notes receivable | Chongqing Wanyou Economic Development Co., Ltd. | 194,140,000.00 | - | 2,000,000.00 | - |
Notes receivable | Guizhou Wanyou Automobile Sales & Service Co., Ltd. | 171,900,000.00 | - | 2,000,000.00 | - |
Notes receivable | Guangxi Wanyou Automobile Sales & Service Co., Ltd. | 2,800,000.00 | - | 1,500,000.00 | - |
Notes receivable | Yunnan Xiangyu Automobile Sales & Service Co., Ltd. | 34,620,000.00 | - | - | - |
Notes receivable | Nanning Wanyou Automobile Sales & Service Co., Ltd. | 6,420,000.00 | - | - | - |
Notes receivable | Chengdu Wanyou Xiangyu Automobile Sales & Service Co., Ltd. | 149,000,000.00 | - | - | - |
Subtotal | 1,075,186,490.00 | - | 2,753,444,480.00 | - | |
Account receivable | Changan Ford Automobile Co.,Ltd. | - | - | 22,529,864.32 | - |
Account receivable | Chongqing Changan Suzuki Automobile Co., Ltd. | 103,186,219.74 | - | 135,914,168.09 | - |
Account receivable | Jiangling Holding Co., Ltd | 113,423,244.94 | - | 30,661,901.66 | - |
Account receivable | Changan Peugeot Citroen Automobile Co., Ltd. | 22,758,165.00 | - | 22,926,567.86 | - |
Account receivable | Chongqing Changan Kuayue Automobile Co., Ltd | 26,509,633.04 | - | 10,887,572.26 | - |
Account receivable | Changan Mazda Automobile Co., Ltd. | - | - | 10,185,773.13 | - |
Account receivable | Chongqing Changan Min Sheng Logistics Co., Ltd. | 56,586,500.25 | - | - | - |
Account receivable | Harbin Dongan Automotive Engine Manufacturing Co., Ltd. | 44,554,740.12 | - | 43,541,400.14 | - |
Account receivable | Yunnan Wanyou Automobile Sales and Service Co., Ltd | - | - | 4,700,833.08 | - |
Account receivable | Chengdu Wanyou Auto Trade Service Co., Ltd. | - | - | 1,311,647.66 | - |
Account receivable | Chongqing Changan Industries Group Co. Ltd | 4,773,143.29 | - | 1,325,600.89 | - |
Subtotal | 386,230,274.69 | - | 283,985,329.09 | - | |
Other receivable | Chongqing Changan Suzuki Automobile Co., Ltd. | 27,374,260.16 | - | 40,784,896.53 | - |
Other receivable | China South Industries Group Finance Co., Ltd | 241,878.39 | - | - | - |
Other receivable | Chongqing Changan Min Sheng Logistics Co., Ltd. | 281,148.25 | - | 123,793.03 | - |
Other receivable | Harbin Dongan Auto Engine Co., Ltd. | 268,000.00 | - | 268,000.00 | - |
Subtotal | 28,165,286.80 | 41,176,689.56 | |||
Advanced payment | Chongqing Changan Suzuki Automobile Co., Ltd. | 295,474.25 | - | 295,474.25 | - |
Subtotal | 295,474.25 | - | 295,474.25 | - |
Accounts payable to related parties of listed companies
In RMB Yuan
Items | Related parties | Ending balance | Beginning balance |
Notes payable | Harbin Dongan Automobile Power Co., Ltd. | 538,815,000.00 | 617,420,000.00 |
Notes payable | Harbin Dongan Automobile Engine Manufacturing Co., Ltd. | 216,487,900.00 | 479,180,000.00 |
Notes payable | Chongqing Changan Construction Engineering Co., Ltd. | 299,405,493.00 | 332,992,262.00 |
Notes payable | China Changan Automobile Co., Ltd. –Chongqing Qingshan Transmission Branch | 299,870,000.00 | 214,270,000.00 |
Notes | Chongqing Changan Min Sheng Logistics Co., | 171,002,497.63 | 198,023,651.37 |
payable | Ltd. | ||
Notes payable | Chongqing Changan Suzuki Automobile Co., Ltd. | 120,635,816.08 | 189,532,516.13 |
Notes payable | South Air International Co.,Ltd. | 283,320,000.00 | 182,640,000.00 |
Notes payable | Changan Ford Automobile Co.,Ltd. | 126,781,543.38 | 65,536,197.82 |
Notes payable | Chongqing Wanyou Engineering Installation Co., Ltd. | 51,264,191.75 | 52,786,747.00 |
Notes payable | Chongqing Construction Vehicle Air Conditioner Co., Ltd. | 21,890,000.00 | 27,120,000.00 |
Notes payable | Sichuan Ningjiang Shanchuan Machinery Co., Ltd. | 23,950,000.00 | 20,580,000.00 |
Notes payable | Chengdu Wanyou Filter Co., Ltd. | 62,010,000.00 | 14,960,000.00 |
Notes payable | Hubei Xiaogan Huazhong Auto Lamp Co., Ltd. | 19,960,000.00 | 9,950,000.00 |
Notes payable | Chengdu Jialing Huaxi Optical Precision Machinery Co., Ltd. | 12,240,000.00 | 7,690,000.00 |
Notes payable | Sichuan Jian'an Industry Co., Ltd. | 5,000,000.00 | 5,910,000.00 |
Notes payable | Chongqing Changfeng Jiyu Machinery Co., Ltd. | 12,300,000.00 | 5,510,000.00 |
Notes payable | Chongqing Yihong Engineering Plastics Co., Ltd. | 8,840,000.00 | 5,310,000.00 |
Notes payable | Chengdu Huachuan Denso Co., Ltd. | 2,570,000.00 | 2,190,000.00 |
Notes payable | Sichuan Hongguang Automobile Electrical Co., Ltd. | 2,940,000.00 | 2,030,000.00 |
Notes payable | Southern Tianhe Chassis System Co., Ltd. | 190,000.00 | 1,370,000.00 |
Notes payable | Chengdu Ningxing Automobile Spring Co., Ltd. | - | 1,110,000.00 |
Notes payable | Chengdu Lingchuan Special Industry Co., Ltd. | 11,510,000.00 | 170,000.00 |
Notes payable | Chongqing Changan Kuayue Automobile Co., Ltd | 35,631,901.39 | - |
Notes | Chongqing Shangfang Auto Parts Co., Ltd. | 200,000.00 | - |
payable | |||
Notes payable | Chongqing Dajiang Yugqiang Plastic Products Co., Ltd. | 142,490,000.00 | - |
Notes payable | Chongqing Dajiang Jiexin Forging Co., Ltd. | 930,000.00 | - |
Subtotal | 2,470,234,343.23 | 2,436,281,374.32 | |
Account payable | Harbin Dongan Automobile Power Co., Ltd. | 239,912,645.10 | 345,797,944.98 |
Account payable | China Changan Automobile Co., Ltd. –Chongqing Qingshan Transmission Branch | 82,059,537.62 | 207,968,397.78 |
Account payable | Southern Tianhe Chassis System Co., Ltd. | 79,076,167.38 | 199,363,707.33 |
Account payable | Jiangling Holdings Co., Ltd. | 133,102,373.73 | 191,084,011.75 |
Account payable | Chongqing Nexteer Steering System Co., Ltd. | 242,879,683.57 | 176,288,268.39 |
Account payable | Southern Inte Air Conditioning Co., Ltd. | 71,888,114.42 | 171872351.5 |
Account payable | Harbin Dongan Automobile Engine Manufacturing Co., Ltd. | 70,183,107.51 | 155,247,645.33 |
Account payable | Sichuan Jian'an Industry Co., Ltd. | 97,987,282.15 | 117,078,608.55 |
Account payable | Chongqing Changan Kuayue Automobile Co., Ltd | 1,216,091.55 | 93,727,399.68 |
Account payable | Changan Ford Automobile Co.,Ltd. | 11,723,605.16 | 89,646,556.61 |
Account payable | Chongqing Changan Suzuki Automobile Co., Ltd. | 35,098,690.66 | 77,082,367.50 |
Account payable | Chongqing Wanyou Economic Development Co., Ltd. | 74,064,072.75 | 54,096,010.02 |
Account payable | Chengdu Wanyou Filter Co., Ltd. | 50,666,108.25 | 42,372,755.39 |
Account payable | Chongqing Changan Minsheng Logistics Co., Ltd. | 120,157,503.60 | 37,085,168.07 |
Account payable | Chongqing Dajiang Xinda Automobile Co., Ltd. | 56,255,628.27 | 30,253,807.17 |
Account payable | Chongqing Dajiang Yuqiang Plastic Products Co., Ltd. | 71,814,653.56 | 26,019,486.15 |
Account payable | Chengdu Lingchuan Vehicle Fuel Tank Co., Ltd. | 17,232,048.62 | 25,415,872.54 |
Account payable | Chongqing Construction Vehicle Air Conditioner Co., Ltd. | 31,598,774.90 | 21,933,236.63 |
Account payable | Hubei Xiaogan Huazhong Auto Lamp Co., Ltd. | 17,026,184.06 | 18,068,182.67 |
Account payable | Chongqing Changfeng Jiyu Machinery Co., Ltd. | 10,049,158.17 | 14,806,992.88 |
Account payable | Chongqing Shangfang Auto Parts Co., Ltd. | 9,752,747.74 | 12,633,188.89 |
Account payable | Chongqing Changan Industries Group Co. Ltd | 21,827,532.88 | 10,548,846.45 |
Account payable | Chengdu Ningxing Automobile Spring Co., Ltd. | - | 8,808,787.49 |
Account payable | Chongqing Yihong Engineering Plastics Co., Ltd. | 3,494,773.28 | 8,669,550.54 |
Account payable | Yunnan Xiyi Industrial Co., Ltd. | 11,933,961.93 | 5,574,383.25 |
Account payable | Sichuan Ningjiang Shanchuan Machinery Co., Ltd. | 14,231,841.87 | 5,527,769.06 |
Account payable | Chengdu Jialing Huaxi Optical Precision Machinery Co., Ltd. | 2,180,536.79 | 5,431,628.68 |
Account payable | Chengdu Huachuan Denso Co., Ltd. | 26,304,851.24 | 4,332,585.36 |
Account payable | Sichuan Ningjiang Shanchuan Machinery Co., Ltd. Longchang Shock Absorber Branch | 4,491,581.72 | 4,093,547.21 |
Account payable | Chengdu Lingchuan Special Industry Co., Ltd. | 6,237,447.98 | 3,626,071.14 |
Account payable | Chongqing Changrong Machinery Co., Ltd. | 3,478,024.59 | 3,524,818.39 |
Account payable | Chengdu Ningjiang Zhaohe Auto Parts Co., Ltd. | 11,644,384.60 | 2,976,243.85 |
Account payable | Sichuan Hongguang Automobile Electrical Co., Ltd. | 1,406,219.30 | 1,939,534.94 |
Account payable | Hafei Automobile Co., Ltd. | 661,117.68 | 661,117.68 |
Account payable | Chongqing Dajiang Jiexin Forging Co., Ltd. | 184,596.76 | 605,591.85 |
Account payable | Chongqing Changan Construction Engineering Co., Ltd. | 242,002.64 | 271,400.31 |
Account payable | Chongqing Automobile Air Conditioner Co., Ltd. | 205,041.51 | 205,041.51 |
Account payable | Chongqing Jialing Yimin Special Equipment Co., Ltd. | 104,496.50 | 104,496.50 |
Account payable | Chengdu Guangming Tianzhong Environmental Protection Technology Co., Ltd. | 86,617.41 | 88,689.65 |
Account payable | Chongqing Xiyi Automobile Connecting Rod Co., Ltd. | 65,110.17 | 70,136.39 |
Account payable | Beijing Beiji Electromechanical Industry Co., Ltd. | 48,435.24 | 26,382.70 |
Account payable | Sichuan Jian'an Industrial Chengdu Jianan Axle Branch | - | 20,257.22 |
Account payable | Chongqing Qingshan Transmission Sales Co., Ltd. | 4,935,786.56 | 548.02 |
Subtotal | 1,637,508,539.42 | 2,174,949,387.99 | |
Advance receipts | Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. | 27,866,189.84 | 149,605,982.46 |
Advance receipts | Chongqing Wanyou Economic Development Co., Ltd. | 36,263,741.47 | 147,992,787.85 |
Advance receipts | Guizhou Wanyou Automobile Sales & Service Co., Ltd. | 34,897,988.08 | 93,966,433.63 |
Advance receipts | Yunnan Wanyou Automobile Sales & Service Co., Ltd. | 7,659,187.24 | 56,027,446.21 |
Advance receipts | Wanyou Automobile Investment Co., Ltd. | 17,748,734.00 | 33,392,271.43 |
Advance receipts | Chengdu Wanyou Auto Trade Service Co., Ltd. | 3,600,358.61 | 28,665,986.30 |
Advance receipts | Yunnan Xiangyu Automobile Sales & Service Co., Ltd. | 1,707,858.67 | 13,152,733.90 |
Advance receipts | Guangxi Wanyou Automobile Sales & Service Co., Ltd. | 5,265,173.17 | 10,218,258.22 |
Advance receipts | Tianjin Sales Co., Ltd.CCAG | 1,086,718.44 | 8,262,589.55 |
Advance receipts | Changan Ford Mazda Engine Co., Ltd. | 3,288,125.92 | 3,202,789.69 |
Advance | Nanning Wanyou Automobile Sales & Service | 274,641.31 | 3,049,999.16 |
receipts | Co., Ltd. | ||
Advance receipts | Hafei Automobile Co., Ltd. | 670,500.00 | 670,500.00 |
Advance receipts | Chongqing Changan Minsheng Logistics Co., Ltd. | - | 361,998.32 |
Advance receipts | Chongqing Anfu Automobile Marketing Co., Ltd. | 1,155,144.00 | 119,144.00 |
Advance receipts | Changan Mazda Automobile Co., Ltd | 232,800.63 | 113,420.00 |
Advance receipts | Southern Inte Air Conditioning Co., Ltd. | - | 4,991.00 |
Advance receipts | Chongqing Shangfang Auto Parts Co., Ltd. | 3,980.00 | - |
Advance receipts | Chongqing Wanyou Economic Development Co., Ltd. Jiangnan Branch | 17,875,663.79 | - |
Advance receipts | Chongqing Wanyou Zunda Automobile Sales and Service Co., Ltd. Guangxi Branch | 236,049.57 | - |
Advance receipts | Chongqing Wanyou Zunda Automobile Sales and Service Co., Ltd. Guizhou Branch | 5,821,619.84 | - |
Advance receipts | Chongqing Wanyou Zunda Automobile Sales and Service Co., Ltd. Parts Branch | 9,143,714.05 | - |
Advance receipts | Chongqing Wanyou Zunda Automobile Sales and Service Co., Ltd. Sichuan Branch | 2,604,650.10 | - |
Advance receipts | Chongqing Wanyou Zunda Automobile Sales and Service Co., Ltd. Yunan Branch | 3,281,320.52 | - |
Advance receipts | Chongqing Wanyou Longrui Automobile Sales & Service Co., Ltd. | 659.60 | - |
Advance receipts | Chongqing Wanyou Ducheng Automobile Sales & Service Co., Ltd. | 138,221.72 | - |
Advance receipts | Chongqing Wanyou Xingjian Automobile Sales & Service Co., Ltd. | 57,612.00 | - |
Advance receipts | Luzhou Wanyou Automobile Service Co., Ltd. | 5,654.88 | - |
Subtotal | 180,886,307.45 | 548,807,331.72 | |
Other payables | Chongqing Changan Minsheng Logistics Co., Ltd. | 305,237,260.47 | 159,507,227.79 |
Other payables | Chongqing Changan Construction Engineering Co., Ltd. | 8,179,765.09 | 23,746,341.39 |
Other payables | Chongqing Changan Industries Group Co. Ltd. | 18,455,573.67 | 4,841,997.36 |
Other payables | Chongqing Changan Property Management Co., Ltd. | 3,727,132.40 | 2470202.68 |
Other payables | Chongqing Wanyou Engineering Installation Co., Ltd. | 3,510,639.25 | 2,278,297.00 |
Other payables | Hafei Automobile Co., Ltd. | 184,804.39 | 640,668.85 |
Other payables | Chongqing Wanyou Economic Development Co., Ltd. | - | 450,057.20 |
Other payables | Chongqing Changan Suzuki Automobile Co., Ltd. | 110,144.00 | 330,432.00 |
Other payables | Chengdu Wanyou Auto Trade Service Co., Ltd. | - | 191,979.64 |
Other payables | Yunnan Wanyou Automobile Sales & Service Co., Ltd. | - | 182,607.80 |
Other payables | Guizhou Wanyou Automobile Sales & Service Co., Ltd. | - | 159,500.00 |
Other payables | Guangxi Wanyou Automobile Sales & Service Co., Ltd. | - | 150,000.00 |
Other payables | Changan Ford Mazda Engine Co., Ltd. | - | 144,115.79 |
Other payables | Chengdu Wanyou Filter Co., Ltd. | - | 120,000.00 |
Other payables | Chongqing Anfu Automobile Marketing Co., Ltd. | - | 100,000.00 |
Other payables | Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. | 100,000.00 | - |
Other payables | Chongqing Wanyou Zunda Automobile Sales and Service Co., Ltd. Guangxi Branch | 50,000.00 | - |
Other payables | Chongqing Wanyou Zunda Automobile Sales and Service Co., Ltd. Guizou Branch | 150,000.00 | - |
Other payables | Chongqing Wanyou Zunda Automobile Sales and Service Co., Ltd. Sichuan Branch | 150,000.00 | - |
Other payables | Chongqing Wanyou Zunda Automobile Sales and Service Co., Ltd. Yunnan Branch | 100,000.00 | - |
Subtotal | 339,955,319.27 | 195,313,427.50 |
XIII. Share-based payments
1. General information
2018.6 | |
The total amount of the employee services as a result of the share-based payments | 32,697,000.00 |
The equity settled share based payments are as follows:
2018.6 | |
The accumulated amount of equity settled share-based payments included in capital reserve | 32,697,000.00 |
The amount of equity settled share-based payments included in expense | - |
2. Share-based payment schemeOn 23 September 2016, the share option was approved to be granted on 23 September 2016 by the 12th meeting
of the seventh session of the Board of Directors and the 8th meeting of the seventh session of Board ofSupervisors. According to the share option scheme, the Company granted 29,140,000 options to 202 employees,conferring rights to purchase 1 A share of Changan Automobile for each option before the expiration date. Shareoptions are granted to directors, chief executive officers and key technical and management personnel.
The share option will expire in 5 years. After the vesting period of 24 month since the grant date, the option shallbe exercised in three periods. In each exercise period, 1/3 of the total options could be exercised when theprescribed performance conditions are met. The exercise price is RMB14.12 per share. The options granted shallbe exercised before the expiration date. The share should not be exercised unless the prescribed conditions are met.The exercisable shares not exercised in above periods will be written off by the Company. The company hasdisclosed in June 1, 2017 "The 2016 annual notice of the implementation of equity distribution".According to thecompany's stock option incentive plan (Revised Draft), the relevant provisions on the stock option priceadjustment, if dividends and capital reserve capitalization, stock dividends, stock split delivery, allotment,issuance or reduced matters occur before the stock exercise,the stock option price should be adjusted. The exerciseprice of the adjusted stock option is 13.478 yuan. The incentive object must be exercised within the validity periodof the option exercise. If the exercise conditions are not met, the current stock options may not be exercised. Ifpart of the stock options that meet the exercise conditions but are not exercised in the above exercise period arecancelled by the company.
The performance indicators of the share option includes:
(1) Return on equity (ROE)(2) Net profit growth rate attributable to owners(3) Economic value added (EVA), and(4) The ratio of prime operating revenue to operating revenue
The above net profit and ROE are based on net profit and weighted average net assets attributable to ownersdeducting non-recurring gains and losses.
The exercise terms of share options:
Exercise Period | Exercise Ratio | Exercise Time | Exercise Terms |
The 1st exercise period | 1/3 | The 1st trading day since 24 month after the grant date to the last trading day since 36 month after the grant date | ROE≥15% The above indicators≥benchmark average, and ≥75 quartile △EVA>0; The ratio of prime operating revenue to operating revenue≥95% |
The 2nd exercise period | 1/3 | The 1st trading day since 36 month after the grant date to the last trading day since 48 month after the grant date | ROE≥15% The above indicators≥benchmark average, and ≥75 quartile △EVA>0; The ratio of prime operating revenue to operating revenue≥95% |
The 3rd exercise period | 1/3 | The 1st trading day since 48 month after the grant date to the last trading day since 60 month after the grant date | ROE≥15% The above indicators≥benchmark average, and ≥75 quartile △EVA>0; The ratio of prime operating revenue to operating revenue≥95% |
The fair value of share options granted amounted to RMB139,527,600. On April 17, 2018, according to the 30thmeeting of the seventh board of directors of the Company, due to the failure of the performance evaluation targetof the first exercise period of the stock option incentive plan, and 12 incentive targets have been dismiss the laborcontract, so they no longer meet the conditions of stock option incentives. The Company has approved thecancellation of 10,826,600 stock options by the board of directors. After the cancellation, the company's stockoptions issued under the plan are 18.831 million shares, and the corresponding fair value is RMB. 87,721,200yuan. The share option fee confirmed by the company in June 2018 is RMB 0.00.
The fair value of the equity-settled share option is determined using Black-Scholes model based on the estimate inaccordance with the terms and conditions of the share options. The input variables are as follows:
Valuation factors | 2016 |
Dividend rate (%) | 0% |
Expected volatility (%) | 29.78% |
Historical volatility (%) | 29.78% |
Risk-free rate (%) | 2.4987% |
Expected duration (year) | 4 |
Share price as at the grant date (Yuan) | 15.43 |
The expected duration of the option is based on the historical data of the past, which is not necessarily reflected inthe exercise of the right in future.The expected volatility is based on the assumption that the historical volatilityreflects the future trend, but not necessarily the actual results.
XIV. Commitments and Contingencies
1. Significant commitments
Investment commitmentBy June 30th 2018, the group has no investment commitment that has been signed but not yet fully fulfilled.
2. Contingencies
By June 30th 2018, the company has no significant contingencies that need to be published.
XV. Events after the balance sheet date
1. Significant non-adjusting events
□ Applicable √ Not Applicable
2. Distribution of profit
□ Applicable √ Not Applicable
3. Sales return
□ Applicable √ Not Applicable
XVI. Other important events
1. Correction of accounting error of earlier stage
□ Applicable √ Not Applicable
2. Debt restructuring
□ Applicable √ Not Applicable
3. Asset replacement
□ Applicable √ Not Applicable
4. Annuity plan
□ Applicable √ Not Applicable
5. Discontinuing operation
□ Applicable √ Not Applicable
6. Information on business branch
Identify business branch of the group according to internal organization structure, management requirements, internal reporting rules,and identify the report and information disclosed of the brand based on the identified branch.business branch refers to the component of the group that meets the following conditions:
(1) the component has income and expenditure incurred in routine activities;
(2) the management of the company regularly evaluates the operation performance of the component to decide the company’s
resource distribution and evaluate its overall performance(3) The group receives related accounting information on the financial situation, operation performance and cash flow.If two or more components have similar economic features and meet the conditions, they should be consolidated into one branch.Income and profit of the group consists of automobile manufacturing and domestic sales. Main asset of the group is in China. The
management of the group evaluates the performance of the group as a whole. Thus, report of the branch is not included in this year’s
report.
XVII. Notes to the main items of the parent company’s financial statements
1. Account Receivables
(1) Account Receivables
In RMB Yuan
Items | Ending | Beginning | ||||||
Book balance | Provision for bad-debts | Book balance | Provision for bad-debts | |||||
Amount | (%) | Amount | (%) | Amount | (%) | Amount | (%) | |
Individually significant amount and account receivables of individually provision for bad debts |
Account receivables of provision for bad-debts calculated and extracted by groups | ||||||||
Group 1: account receivables of provision for bad-debts calculated and extracted by aging analysis | 610,262,793.76 | 10.99 | 14,881,634.65 | 2.44 | 336,704,741.88 | 6.73 | 13,247,893.43 | 3.93 |
Group 2: Account receivables for related parties | 4,944,713,693.79 | 89.01 | - | - | 4,668,539,742.55 | 93.27 | - | - |
Group subtotal | 5,554,976,487.55 | 100 | 14,881,634.65 | 0.27 | 5,005,244,484.43 | 100 | 13,247,893.43 | 0.26 |
Notindividually significant amount but other receivables of individually provision for bad debts | ||||||||
Total | 5,554,976,487.55 | 100 | 14,881,634.65 | 0.27 | 5,005,244,484.43 | 100 | 13,247,893.43 | 0.26 |
Types of account receivablesWithin groups, account receivables of provision for bad-debts are calculated and extracted by aging analysis
√ Applicable □ Not Applicable
In RMB Yuan
Account receivable age | Ending | Beginning | ||||
Book balance | Provision for bad-debts | Book balance | Provision for bad-debts | |||
Amount | (%) | Amount | (%) | |||
Within 1 year | ||||||
Including | ||||||
0- 6 months | 558,051,597.15 | 91.45 | - | 308,058,891.27 | 91.50 | - |
6 to 12 months | 25,508,286.00 | 4.18 | 1,275,414.30 | 11,052,418.43 | 3.28 | 552,620.92 |
Within 1 year subtotal | 583,559,883.15 | 95.63 | 1,275,414.30 | 319,111,309.70 | 94.78 | 552,620.92 |
1 to 2 years | 14,541,878.43 | 2.38 | 1,454,187.84 | 5,432,400.00 | 1.61 | 543,240.00 |
2 to 3 years | 2,836.67 | - | 851.00 | 2,836.67 | - | 851.00 |
3 to 4 years | 14,028.00 | - | 7,014.00 | 14,028.00 | - | 7,014.00 |
4 to 5 years | ||||||
Over 5 years | 12,144,167.51 | 1.99 | 12,144,167.51 | 12,144,167.51 | 3.61 | 12,144,167.51 |
Total | 610,262,793.76 | 100 | 14,881,634.65 | 336,704,741.88 | 100 | 13,247,893.43 |
Within groups, account receivables of provision for bad-debts are calculated and extracted by balance percentage
□ Applicable √ Not applicable
(2) On June 30, 2018, the top five accounts receivable totalled RMB 4,325,702,550.47, accounting for 77.88% of the totalaccounts receivable (2017: RMB 3,973,737,026.11, accounting for 82.95% of the total accounts receivable).
(3) Account receivables of related parties
In RMB Yuan
Group | 2018.6 | 2017.12 | ||
book balance | provision for bad-debts | book balance | provision for bad-debts | |
Related party accounts receivable provision for bad debts | 4,944,713,693.79 | - | 4,668,539,742.55 | - |
2. Other receivables
(1) Other receivables
In RMB Yuan
Items | Ending | Beginning | ||||||
Book balance | Provision for bad-debts | Book balance | Provision for bad-debts | |||||
Amount | (%) | Amount | (%) | Amount | (%) | Amount | (%) | |
Individually significant amount and account receivables of individually provision for bad debts | 1,544,178,640.00 | 69.64 | - | - | 1,127,509,417.42 | 65.37 | - | - |
Account receivables of provision for bad-debts calculated and extracted by groups | ||||||||
Group 1: account receivables of provision for bad-debts calculated and extracted by aging analysis | 121,990,433.54 | 5.50 | 1,072,191.62 | 0.88 | 125,520,423.39 | 7.28 | 1,088,333.82 | 0.87 |
Group 2: Account receivables of provision for bad-debts calculated and extracted by related parties | 551,236,733.19 | 24.86 | - | - | 471,782,095.90 | 27.35 | - | - |
Group subtotal | 673,227,166.73 | 30.36 | 1,072,191.62 | 0.16 | 597,302,519.29 | 34.63 | 1,088,333.82 | 0.18 |
no Individually significant amount but other receivables of individually provision |
for bad debts | ||||||||
Total | 2,217,405,806.73 | 100 | 1,072,191.62 | 0.05 | 1,724,811,936.71 | 100 | 1,088,333.82 | 0.06 |
Types of the account receivablesaccount receivables of provision for bad-debts are calculated and extracted by aging analysis
√ Applicable □ Not Applicable
In RMB Yuan
Account receivable Age | Ending | Beginning | ||||
Book balance | Provision for bad-debts | Book balance | Provision for bad-debts | |||
Amount | (%) | Amount | (%) | |||
Within 1 year | ||||||
Among: | ||||||
0-6 months | 117,153,597.36 | 96.03 | - | 119,053,084.31 | 94.85 | - |
6 to 12 months | 2,861,451.16 | 2.35 | 143,072.56 | 5,512,392.58 | 4.39 | 275,619.62 |
Within 1 year subtotal | 120,015,048.52 | 98.38 | 143,072.56 | 124,565,476.89 | 99.24 | 275,619.62 |
1 to 2 years | 1,072,883.60 | 0.88 | 107,288.36 | 76,250.15 | 0.06 | 7,625.02 |
2 to 3 years | 23,805.07 | 0.02 | 7,141.52 | 48,000.00 | 0.04 | 14,400.00 |
3 to 4 years | 128,014.34 | 0.10 | 64,007.17 | 80,014.34 | 0.06 | 40,007.17 |
4 to 5 years | - | - | - | - | - | - |
Over 5 years | 750,682.01 | 0.62 | 750,682.01 | 750,682.01 | 0.60 | 750,682.01 |
Total | 121,990,433.54 | 100 | 1,072,191.62 | 125,520,423.39 | 100 | 1,088,333.82 |
Within groups, account receivables of provision for bad-debts are calculated and extracted by balance percentage.
□ Applicable √ not Applicable
(2) Other account receivables of related parties
In RMB Yuan
Group | 2018 | 2017 | ||
Book balance | Provision for bad-debts | Book balance | Provision for bad-debts | |
Related party other accounts receivable provision for bad debts | 551,236,733.19 | - | 471,782,095.90 | - |
3. Long-term equity investment
In RMB Yuan
Invested in | Accounting method | capitalized cost | beginning amount | increase/decrease | ending amount | Share proportion in the company invested (%) | Voting proportion in the company invested (%) | Explanation for the difference between shareholding percentage and voting percentage | Impairment | impairment provision in current period | cash bonus in current period |
1、Joint ventures | |||||||||||
Chongqing Changan Suzuki Automobile Co., Ltd | Equity | 237,719,933.33 | 1,190,705,710.43 | -80,032,104.09 | 1,110,673,606.34 | 50 | 50 | None | - | - | - |
Jiangling Holding Co., Ltd | Equity | 1,008,511,522.00 | 2,907,749,943.37 | -83,707,141.74 | 2,824,042,801.63 | 50 | 50 | None | - | - | - |
Changan Ford Automobile Co., Ltd | Equity | 975,232,926.29 | 4,125,426,104.20 | 866,427,723.13 | 4,991,853,827.33 | 50 | 50 | None | - | - | - |
Changan Mazda Automobile Co., Ltd | Equity | 1,097,839,635.00 | 2,439,429,811.02 | 635,451,737.12 | 3,074,881,548.14 | 50 | 50 | None | - | - | - |
Changan Ford Mazda Engine Co., Ltd | Equity | 786,734,634.10 | 903,838,395.08 | -73,187,649.79 | 830,650,745.29 | 50 | 50 | None | - | - | 114,500,000.00 |
Changan PSA Automobile Co., Ltd | Equity | 2,007,841,700.00 | 93,561,126.76 | -171,729,822.06 | -78,168,695.30 | 50 | 50 | None | - | - | - |
2、Associated Enterprises | |||||||||||
Chongqing Changan Kuayue Automobile Co., Ltd | Equity | 61,800,885.00 | 101,399,892.43 | 17,458,524.85 | 118,858,417.28 | 34.3 | 34.3 | None | - | - | - |
Chongqing Changan Kuayue | Equity | 1.00 | - | - | 0.00 | 34.3 | 34.3 | None | - | - | - |
Automobile Sales Co., Ltd | |||||||||||
Beijing Fang’an Xinyue taxi Co., Ltd | Equity | 6,000,000.00 | - | - | 0.00 | 20.7 | 20.7 | None | - | - | - |
Chongqing Auto Finance Co., Ltd. | Equity | 1,805,000,000.00 | 1,817,669,991.73 | 137,070,317.23 | 1,954,740,308.96 | 28.66 | 28.66 | None | - | - | - |
Zhenjiang Demao Hairun Equity Investment Fund Partnership (Limited Partnership) | Equity | 518,743,029.48 | 518,742,921.95 | 289,516,719.35 | 808,259,641.30 | 32.67 | 32.67 | None | - | - | - |
3、Subsidiaries | |||||||||||
Nanjing Changan Automobile Co., Ltd | Cost | 422,533,259.00 | 422,533,259.00 | - | 422,533,259.00 | 84.73 | 91.53 | minority shareholders authorize the company to exercise voting right | - | - | - |
Hebei Changan Automobile Co., Ltd | Cost | 438,223,236.00 | 438,223,236.00 | - | 438,223,236.00 | 94.22 | 95.62 | minority shareholders authorize the company to exercise voting right | - | - | - |
Chongqing Changan International Automobile Sales and Service Co., Ltd | Cost | 13,068,581.00 | 13,068,581.00 | - | 13,068,581.00 | 100 | 100 | None | - | - | - |
Chongqing Changan Automobile Customer Service Co., Ltd. | Cost | 29,700,000.00 | 29,700,000.00 | - | 29,700,000.00 | 99 | 99 | None | - | - | 628,650,000.00 |
Chongqing Changan Vehicle Networking Technology Co., Ltd. | Cost | 88,500,000.00 | 88,500,000.00 | - | 88,500,000.00 | 100 | 100 | None | - | - | - |
Chongqing Changan Automobile Sales Co., Ltd | Cost | 3,150,000.00 | 3,150,000.00 | - | 3,150,000.00 | 100 | 100 | None | - | - | - |
Chongqing Changan Special Automobile Co., Ltd | Cost | 2,500,000.00 | 2,500,000.00 | - | 2,500,000.00 | 50 | 50 | None | - | - | - |
Chongqing Changan Europe Design Center Co., Ltd | Cost | 155,469,913.50 | 155,469,913.50 | - | 155,469,913.50 | 100 | 100 | None | - | - | - |
Chongqing Changan new Engergy Automobile Co. Ltd | Cost | 18,850,000.00 | 18,850,000.00 | - | 18,850,000.00 | 65 | 65 | None | - | - | - |
Changan United Kingdom R&D Center Co., Ltd. | Cost | 236,387,395.40 | 236,387,395.40 | - | 236,387,395.40 | 100 | 100 | None | - | - | - |
Beijing Changan Automotive engineering and Technology Reseach Co., Ltd. | Cost | 1,000,000.00 | 1,000,000.00 | - | 1,000,000.00 | 100 | 100 | None | - | - | - |
Harbin Changan Automotive Technology Reseach Co., Ltd. | Cost | 1,000,000.00 | 1,000,000.00 | - | 1,000,000.00 | 100 | 100 | None | - | - | - |
Shanghai Changan Automotive Engineering and Technology Co., Ltd. | Cost | - | 1,000,000.00 | -1,000,000.00 | - | 100 | 100 | None | - | - | - |
Changan Japan Design Center Co., Ltd. | Cost | 1,396,370.15 | 1,396,370.15 | - | 1,396,370.15 | 100 | 100 | None | - | - | - |
Changan United States R&D Center Co., Ltd. | Cost | 10,243,460.00 | 10,243,460.00 | - | 10,243,460.00 | 100 | 100 | None | - | - | - |
Baoding Changan Bus Manufacturing Co., Ltd. | Cost | 176,002,613.18 | 176,002,613.18 | - | 176,002,613.18 | 100 | 100 | None | - | - | - |
Hefei Changan Automobile Co., Ltd | Cost | 35,367,765.23 | 35,367,765.23 | - | 35,367,765.23 | 100 | 100 | None | - | - | - |
Changan Automobile Russia Co., Ltd. | Cost | 1,242,589.15 | 1,242,589.15 | - | 1,242,589.15 | 100 | 100 | None | - | - | - |
Changan Brazil Holding Co., Ltd | Cost | 2,584,556.97 | 2,584,556.97 | - | 2,584,556.97 | 100 | 100 | None | - | - | - |
Shenzhen Changan New Engergy Automobile Service Co. Ltd | Cost | 50,000,000.00 | 50,000,000.00 | - | 50,000,000.00 | 100 | 100 | None | - | - | - |
Xiamen Changan New Energy Automobile Sales & Service Co., Ltd. | Cost | 2,000,000.00 | - | 2,000,000.00 | 2,000,000.00 | 100 | 100 | None | - | - | - |
Guangzhou Changan New Energy Automobile Sales & Service Co., Ltd. | Cost | 4,000,000.00 | - | 4,000,000.00 | 4,000,000.00 | 100 | 100 | None | - | - | - |
Fuzhou Fuqing Changan New Energy Automobile Sales Co., Ltd. | Cost | 2,000,000.00 | - | 2,000,000.00 | 2,000,000.00 | 100 | 100 | None | - | - | - |
Chongqing Changan New Energy Automobile Technology Co., Ltd. | Cost | 99,000,000.00 | - | 99,000,000.00 | 99,000,000.00 | 100 | 100 | None | - | - | - |
Total | - | 10,299,644,005.78 | 15,786,743,636.55 | 1,643,268,304.00 | 17,430,011,940.55 | - | - | - | - | - | 743,150,000.00 |
4. Operating revenue and cost
(1) Operating revenue
In RMB Yuan
Items | Current amount | Prior-period amount |
Main business income | 32,840,989,835.15 | 31,674,932,332.88 |
Other business income | 1,368,075,880.87 | 1,164,589,896.82 |
Operating cost | 29,726,487,573.72 | 28,904,081,124.37 |
(2) Main business (classified by industries)
In RMB Yuan
Industries | Current amount | Prior-period amount | ||
revenue | cost | revenue | cost | |
Automobile manufacturing industry | 32,840,989,835.15 | 29,084,851,115.73 | 31,674,932,332.88 | 28,528,331,081.30 |
Total | 32,840,989,835.15 | 29,084,851,115.73 | 31,674,932,332.88 | 28,528,331,081.30 |
(3) Main business (classified by products)
In RMB Yuan
Products | Current amount | Prior-period amount | ||
revenue | cost | revenue | cost | |
Sales of goods | 32,768,288,077.90 | 28,995,127,299.93 | 31,601,267,068.68 | 28,416,569,899.88 |
Outsourcing processing | 72,701,757.25 | 89,723,815.80 | 73,665,264.20 | 111,761,181.42 |
Total | 32,840,989,835.15 | 29,084,851,115.73 | 31,674,932,332.88 | 28,528,331,081.30 |
5. Investment income
(1) Details of investment income
In RMB Yuan
Items | Current amount | Prior-period amount |
Long-term equity investment income measured by cost method | 628,650,000.00 | - |
Long-term equity investment income measured by equity method | 1,362,011,815.11 | 3,831,618,978.64 |
investment income from long -term equity investment disposition | 42,715.98 | -2,000,000.00 |
others | 4,434,355.36 | 1,028,907.27 |
Total | 1,995,138,886.45 | 3,830,647,885.91 |
(2) Long-term equity investment incomemeasured by cost accounting methodNone
(3) Long-term equity investment income measured by equity accounting method
In RMB Yuan
Invested in company | Current amount | Prior-period amount |
Changan Ford Automobile Co., Ltd. | 866,427,723.13 | 3,094,825,993.27 |
Changan Mazda Automobile Co., Ltd. | 635,451,737.12 | 600,278,338.63 |
Changan Suzuki Automobile Co., Ltd. | -80,032,104.09 | -19,611,249.15 |
Changan Ford Mazda Engine Co., Ltd. | 41,312,350.21 | 55,447,236.74 |
Jiangling Holding Co., Ltd | -83,707,141.74 | 96,573,362.50 |
Chongqing Xiyi Automobile Linkage Rod Co., Ltd | - | 127,449.67 |
Changan PSA Automobile Co., Ltd. | -171,729,822.06 | -45,643,059.35 |
Chongqing Changan Kuayue Automobile Co., Ltd. | 17,458,524.85 | 6,419,549.31 |
Chongqing Auto Finance Co., Ltd. | 137,070,317.23 | 43,201,357.02 |
Zhenjiang Demao Hairun Equity Investment Fund Partnership (Limited Partnership) | -239,769.54 | - |
Total | 1,362,011,815.11 | 3,831,618,978.64 |
6. Supplementary information of cash flow statement
In RMB Yuan
Supplementary information | Current amount | Prior-period amount |
1. Cash flow relating to operating activities calculated by adjusting the net profit | ||
Net profit | 2,212,251,313.70 | 3,831,471,921.43 |
Add: provision for assets impairment | 114,014,999.44 | 133,639,836.86 |
Depreciation of fixed assets, oil and gas assets, productive biological assets | 806,662,201.79 | 638,817,928.22 |
Amortization of intangible assets | 296,811,222.72 | 267,263,626.81 |
Amortization of long-term deferred expense | ||
Disposal loss/(income) on fixed assets, intangible assets and others long-term assets | 39,045,358.00 | 684,027.55 |
Financial expense | -248,434,734.69 | -256,888,513.32 |
Investment loss | -1,995,138,886.45 | -3,830,647,885.91 |
Decrease in deferred tax assets | -31,839,831.43 | -113,878,150.78 |
Decrease in inventory | 288,715,822.18 | -3,660,997,018.33 |
Decrease of operational receivables | 9,987,481,500.02 | 5,693,325,815.98 |
Increase of operational payables | -6,426,150,041.12 | 1,346,003,463.96 |
Net cash flow from operating activities | 5,043,418,924.16 | 4,048,795,052.47 |
2. Major investment and financing activities involving no cash incomings / outgoings | ||
3. Net change in cash and cash equivalent | ||
Ending balance of cash | 22,689,732,804.05 | 25,409,019,964.44 |
Less: beginning balance of cash | 20,172,657,984.53 | 22,326,566,084.67 |
Net increase in cash and cash equivalents | 2,517,074,819.52 | 3,082,453,879.77 |
XVIII. Additional information
1. Non-recurring profit and loss statement of current period
In RMB Yuan
Items | Amount | Explanation |
Profit and loss of non-current assets disposition | 18,771,809.69 | |
Government subsidies counted in current profit and loss (except the government subsidies which are closely related with business events, and given certain amount according to national standards) | 1,116,231,219.32 | |
Other non-business incomings and outgoings except above-mentioned items | -23,029,866.17 | |
Interest on deferred payment of funds received from non - financial enterprises | 8,091,557.41 | |
Less: amount influenced by income tax | 180,608,049.13 | |
Amount influenced by minority shareholders’ interest (after tax) | 25,566,780.69 | |
Total | 913,889,890.43 | -- |
If the company identifies non-recurring profit and loss defined by Information Disclosure by Companies Offering Securities to thePublic No. 1--non-recurring profit and loss and non-recurring profit and loss defined by Information Disclosure by CompaniesOffering Securities to the Public No. 1--non-recurring profit and loss as recurring profit and loss, explain the reasons.
□ Applicable √ Not applicable
2. Return on equity and earnings per share
In RMB Yuan
3. Accounting data difference by domestic and foreign accouting standards
(1) Net profit and net asset differences from financial statements by global GAAC and prc GAAC
□ Applicable √ Not applicable
(2) Net profit and net asset differences from financial statements by GAAC abroad and PRC GAAP
□ Applicable √ Not applicable
(3) Description on accounting data differences by domestic and foreign accounting standards. If auditing institutions abroadhave adjusted the data differences, identify the name of the auditing institution abroad.None
4. Others
□ Applicable √ Not applicable
Profit in report period | Weighted average return on equity | Earnings per share | |
Basic EPS | Diluted EPS | ||
Net profit belonging to the Company’s common stockholders | 3.39% | 0.34 | 0.34 |
Net profit belonging to the Company’s common stockholders after deducting non-recurring profit and loss | 1.47% | 0.14 | 0.14 |
Chapter 10 Documents for Future Reference
Catalogue of Reference Files |
1、Semi-annual report with signature of legal representative; 2、Financial statements, with the signatures and seals of legal representative, person in charge of accounting, and person in accounting agency; 3、BOD resolutions and written confirmation documents signed by board members and senior executives; 4、Written auditing opinions in form of resolution by the Board of Supervisors; 5、All original copies of company documents and announcements disclosed in China Securities Journal, Securities Time, and Hong Kong Commercial Daily in reporting period. The company will provide the the abovementioned reference files timely when required by China Securities Regulatory Commission and Shenzhen Stock Exchange, and required by shareholders according to law and corporate regulations. |
Chairman: Zhang Baolin
Submit Date Approved by BOD: August 31, 2018