Jiangling Motors Corporation, Ltd.
2024 Annual Report
2025-03
Chapter I Important Notes, Contents and Abbreviations
Important NoteThe Board of Directors and its members, the Supervisory Board and its members,and the senior executives are jointly and severally liable for the truthfulness,accuracy and completeness of the information disclosed in the report and confirmthat the information disclosed herein does not contain any false statement,misrepresentation or major omission.
Chairman Qiu Tiangao, CFO Joey Zhu and Chief of Finance Department, HuHanfeng, confirm that the Financial Statements in this Annual Report are truthfuland complete.
All Directors were present at the Board meeting to review this Annual Report.
Future plans, development strategies and other forward-looking statements in thisreport do not constitute a substantial commitment of the Company to investors.Investors are advised to pay attention to investment risks.
The Company's possible risks and countermeasures are described in Section 3 ofthis report, "Management Discussion and Analysis". Please investors to payattention to the relevant content.
The Annual Report is prepared in Chinese and English. In case of discrepancy,the Chinese version will prevail.
The year 2024 profit distribution proposal approved by the Board of Directors is asfollows:
A cash dividend of RMB 7.12 (including tax) will be distributed for every 10 sharesheld based on the total share capital of 863,214,000 shares, and there is no stockdividend. The Board decided not to convert capital reserve to share capital thistime.
Contents
Chapter I Important Notes, Contents and Abbreviations ...... 2
Chapter II Brief Introduction and Operating Highlight ...... 5
Chapter III Management Discussion and Analysis ...... 10
Chapter IV Corporate Governance Structure ...... 31
Chapter V Environment and Social Responsibilities ...... 57
Chapter VI Major events ...... 62
Chapter VII Share Capital Changes & Shareholders ...... 67
Chapter VIII Preferred Shares ...... 72
Chapter IX Bond related Information ...... 73
Chapter X Financial Statements ...... 74
Catalogue on Documents for Reference
1. Originals of 2024 financial statements signed by legal representative, ChiefFinancial Officer and Chief of Finance Department.
2. Originals of the Independent Auditor’s Reports signed by independent
accountants and stamped by the accounting firm.
3. Originals of all the documents and public announcements disclosed in
newspapers designated by CSRC in 2024.
4. The Annual Report in the China GAAP.
Abbreviations:
CSRC China Securities Regulatory CommissionJMCG Jiangling Motors Group Co., Ltd.Ford Ford Motor CompanyJIC Nanchang Jiangling Investment Co., Ltd.JMC or the Company Jiangling Motors Corporation, Ltd.JMCH JMC Heavy Duty Vehicle Co., Ltd.EVP Executive Vice PresidentCFO Chief Financial OfficerVP Vice President
Chapter II Brief Introduction and Operating Highlight
1. Company’s Information
| Share’s name | Jiangling Motors, Jiangling B | Share’s Code | 000550, 200550 |
| Place of listing | Shenzhen Stock Exchange | ||
| Company’s Chinese name | 江铃汽车股份有限公司 | ||
| English name | Jiangling Motors Corporation, Ltd. | ||
| Abbreviation | JMC | ||
| Company legal representative | Qiu Tiangao | ||
| Registered Address | No. 2111, Yingbin Middle Avenue, Nanchang County, Nanchang City, Jiangxi Province, P.R.C | ||
| Postal Code of Registered Address | 330200 | ||
| Changes of Registered Address | Due to the relocation of JMC’s Qingyunpu site, the original registered address " No. 509, Northern Yingbin Avenue, Nanchang City, Jiangxi Province" was changed to "No.2111, Yingbin Middle Avenue, Nanchang County, Nanchang City, Jiangxi Province" in October 2021. | ||
| Headquarters Address | No. 2111, Yingbin Middle Avenue, Nanchang County, Nanchang City, Jiangxi Province, P.R.C | ||
| Postal Code of Headquarters Address | 330200 | ||
| Website | http://www.jmc.com.cn | ||
| relations@jmc.com.cn | |||
2. Contact Person and Method
| Board Secretary | Securities Affairs Representative | |
| Name | Xu Lanfeng | Quan Shi |
| Address | No. 2111, Yingbin Middle Avenue, Nanchang County, Nanchang City, Jiangxi Province, P.R.C | No. 2111, Yingbin Middle Avenue, Nanchang County, Nanchang City, Jiangxi Province, P.R.C |
| Tel | 86-791-85266178 | 86-791-85266178 |
| Fax | 86-791-85232839 | 86-791-85232839 |
| relations@jmc.com.cn | relations@jmc.com.cn |
3. Information Disclosure and Place for Achieving Annual Report
| Stock Exchange Website for Publication of JMC’s Annual Report | http://www.szse.cn |
| Newspapers and Website for Publication of JMC’s Annual Report | China Securities, Securities Times, Hong Kong Commercial Daily, cninfo (http://www.cninfo.com.cn) |
| Place for Achieving Annual Report | Securities Department, Jiangling Motors Corporation, Ltd. |
4. Changes of Registration
| Unified social credit code | 913600006124469438 |
| Changes in the Main Business since the Listing | No change. |
| Changes of Controlling Shareholders | On December 1, 1993, JMC A shares were listed on Shenzhen Stock Exchange, while JMCG, the founder-member, was the controlling shareholder of the Company. On September 29, 1995 and November 12, 1998, JMC issued additional 344 million B shares totally, while, after the additional B share issuance, JMCG and Ford were the controlling shareholders of the Company. On December 8, 2005, the 354.176 million JMC shares held by JMCG, the former controlling shareholder, were transferred to Jiangling Motor Holdings Co., Ltd. After the transference, Jiangling Motor Holdings Co., Ltd. and Ford were the controlling shareholders of the Company. In 2019, Jiangling Motor Holdings Co., Ltd., the former controlling shareholder, was divided and separated into Jangling Motor Holdings Co., Ltd. and Nanchang Jiangling Investment Co., Ltd., and transferred the 354.176 million JMC shares it held to Nanchang Jiangling Investment Co., Ltd. Presently, Nanchang Jiangling Investment Co., Ltd. and Ford are the controlling shareholders of the Company. |
5. Other Information
Accounting Firm Appointed by JMC for Audit
| Name | Ernst & Young Hua Ming LLP |
| Headquarters Address | Room 01-12, 17th Floor, Ernst & Young Building, Oriental Plaza, No. 1 East Chang'an Street, Dongcheng District, Beijing |
| Names of Signed Accountants | Qiao Chun, Yuan Yong |
The recommendation agency engaged by the Company executing the persistentsupervision responsibilities in the reporting period
□Applicable ?Not Applicable
The financial consultant engaged by the Company performing the duties ofpersistent supervision and guidance in the reporting period
□Applicable ?Not Applicable
6. Main accounting data and financial ratios
Unit: RMB
| 2024 | 2023 | Change (%) | 2022 | |
| Revenue | 38,374,160,748 | 33,167,325,081 | 15.70% | 30,100,283,842 |
| Profit Attributable to the Equity Holders of the Company | 1,537,139,024 | 1,475,597,266 | 4.17% | 915,049,168 |
| Net Profit Attributable to Shareholders of Listed Company After Deducting Non-Recurring Profit or Loss | 1,356,329,085 | 995,236,837 | 36.28% | -229,667,660 |
| Net Cash Generated From Operating Activities | 2,633,384,217 | 4,567,539,866 | -42.35% | -1,518,573,952 |
| Basic Earnings Per Share (RMB) | 1.78 | 1.71 | 4.17% | 1.06 |
| Diluted Earnings Per Share (RMB) | 1.78 | 1.71 | 4.17% | 1.06 |
| Weighted Average Return on Equity Ratio | 14.20% | 15.06% | -0.86% | 10.28% |
| End of Year 2024 | End of Year 2023 | Change (%) | End of Year 2022 | |
| Total Assets | 30,839,912,640 | 29,141,187,886 | 5.83% | 27,468,321,835 |
| Shareholders’ Equity Attributable to the Equity Holders of the Company | 11,292,579,854 | 10,350,145,738 | 9.11% | 9,243,817,333 |
The lower of the Company’s net profit before and after deduction of non-recurringgains and losses in the most recent three fiscal years is negative, and the auditreport of the most recent year shows that the Company’s ability to continueoperations is uncertain
□Yes ?No
The lower of the net profit before and after non-recurring gains and losses isnegative
□Yes ?No
7. Accounting data difference between China GAAP and IFRS
I. Differences in net profit and net assets in financial statements between inaccordance with international accounting standards and Chinese accountingstandards
□Applicable ?Not Applicable
II. Differences in net profit and net assets in financial statements between inaccordance with overseas accounting standards and Chinese accountingstandards
□Applicable ?Not Applicable
III. Reasons for the difference in accounting data between in accordance withoverseas accounting standards and Chinese accounting standards
□Applicable ?Not Applicable
8. Main accounting data quarterly
Unit: RMB
| Q1 | Q2 | Q3 | Q4 | |
| Revenue | 7,974,792,045 | 9,945,273,756 | 9,810,550,680 | 10,643,544,267 |
| Profit Attributable to the Equity Holders of the Company | 482,364,920 | 413,115,197 | 270,610,898 | 371,048,009 |
| Net Profit Attributable to Shareholders of Listed Company After Deducting Non-Recurring Profit or Loss | 420,804,103 | 390,368,385 | 273,470,523 | 271,686,074 |
| Net Cash Generated From Operating Activities | -614,291,227 | 1,347,620,904 | 993,043,975 | 907,010,565 |
Whether the above mentioned financial indicators or the total number aresignificantly different from the financial indicators related to the disclosed quarterlyand half-year reports of the Company
□Yes ?No
9. Non-recurring profit and loss items and amounts
?Applicable □Not Applicable
Unit: RMB
| 2024 | 2023 | 2022 | |
| Profit and loss of non-current assets disposal (including the charge-off part of the asset impairment provision) | 665,549 | -7,453,268 | 389,251,475 |
| Government subsidies included in the current profit and loss | 184,409,745 | 565,157,410 | 943,326,556 |
| In addition to the effective hedging business related to the normal operating business of the Company, holding the gains and losses of fair value changes arising from trading financial assets and trading financial liabilities, as well as the investment income obtained from the disposal of trading financial assets, | 22,603,584 | 6,052,713 | 1,424,039 |
Details of other profit and loss items that meet the definition of non-recurring profitand loss
□Applicable ?Not Applicable
There is no any other profit and loss items that meet the definition of non-recurringprofit and loss in the Company.
The description of that the non-recurring profit and loss items listed in CorporateInformation Disclosure of Public Issuing Securities No.1 are defined as recurringprofit and loss items
□Applicable ?Not Applicable
The Company does not have a situation in which the non-recurring profit and lossitems listed in No.1 of Corporate Information Disclosure Announcement No.1 aredefined as recurring profit and loss.
| trading financial liabilities and available for sale financial assets | |||
| Capital occupation fee charged for non-financial enterprises included in the current profit and loss | 4,766,151 | 11,289,415 | 13,827,410 |
| Return of the impairment provision for receivables with a separate impairment test | 5,433,007 | - | 110,068 |
| Other non-operating income and expenses except the above | -2,284,867 | 6,379,649 | 1,423,948 |
| Other profit and loss items that meet the definition of non-recurring profit and loss | -2,060,316 | -11,097,866 | - |
| Less: Income tax impact amount | 33,377,674 | 89,195,274 | 204,283,363 |
| Influence of minority shareholders' equity | -654,760 | 772,350 | 363,305 |
| Total | 180,809,939 | 480,360,429 | 1,144,716,828 |
Chapter III Management Discussion and Analysis
1. The industry situation of the Company during the reporting periodIn 2024, automobile production and sales were total completed at 31,282 thousandunits and 31,436 thousand units, with a year-on-year growth of 3.7% and 4.5%respectively, with production and sales hitting new highs and continuing to remainat a scale of more than 30 million units, demonstrating strong resilience and vitality.Among them, the passenger car market continued to grow well, playing animportant role in stabilizing the basic plate of automobile consumption. Comparedwith the passenger car market, the commercial vehicle market is relatively weakdue to factors such as weakening investment and low freight rates, while thecommercial vehicle market segments show different development trends. Underthe combined effect of multiple factors such as favourable policies, abundantsupply, lower prices and continuous improvement of infrastructure, China's newenergy vehicle sales continue to grow. Automobile exports continued to maintaina high level, becoming an important force driving the growth of production andsales of China's total automobile.
The production and sales of passenger cars amounted to 27,477 thousand unitsand 27,563 thousand units respectively, with a year-on-year growth of 5.2% and
5.8% respectively. Among the main varieties of passenger cars, compared withthe same period of the previous year, the production and sales of sport utilityvehicles (SUV) showed faster growth than the industry as a whole; multi-purposepassenger vehicles (MPV) declined sharply.
The production and sales of commercial vehicles amounted to 3,805 thousandunits and 3,873 thousand units respectively, with a year-on-year down 5.8% and
3.9% respectively, facing certain development pressure. Among the main varietiesof commercial vehicles, compared with the same period of last year, the productionand sales of buses increased, but the production and sales of trucks declined year-on-year. Among the main varieties of trucks, the production and sales of medium-sized trucks and light trucks rose, while the production and sales of heavy trucksand minivans declined. Among the main varieties of buses, sales of medium andlarge buses increased significantly, while light buses declined slightly.
In 2024, automobile exports achieved to 5,859 thousand units, a year on yearincrease of 19.3%. Among them, 4,955 thousand passenger cars were exported,a year on year increase of 19.7%; 904 thousand commercial vehicles wereexported, a year on year increase of 17.5%. In terms of categories, 4,574 thousandconventional fuel vehicles were exported, a year on year increase of 23.5%; 1,284thousand new energy vehicles were exported, a year on year increase of 6.7%.
In 2024, the production and sales of new energy vehicles were completed at12,888 thousand units and 12,866 thousand units respectively, with year-on-yeargrowth of 34.4% and 35.5%, and the sales of new energy vehicles reached 40.9%of the total sales of new vehicles, up 9.3 percent from 2023. In the main types of
new energy vehicles, compared with the previous year, the production and salesof fuel cell vehicles showed a double-digit decline, while the production and salesof other two types of new energy vehicles showed different degrees of growth.
2. Company’s Core Business during the Reporting Period
During the reporting period, the Company's main business is the production andsale of commercial vehicles, passenger vehicle SUVs and related components.The main products include JMC light truck, Pickup, light bus, Ford-branded lightbus, MPV, Pickup and other commercial vehicles and passenger vehicle SUVsproducts. JMC also produces engines, frame, axle, and components. TheCompany takes high quality development as the main line, focuses on value, leanoperation, and transforms from scale expansion development to lean value growth.
For 2024, JMC continued to increase its technological reserves and investment innew products, intelligent connection network, new energy and lightweighting, andstrengthened its digital operation capability to realize the transformation of “fouronline”, including “products online”, “customers online”, “processes online” and“employees online”. Through digital technology, the Company improvedoperational efficiency, optimize business processes and innovative businessmodels, and focused on customer-centered integration of the whole value chain.Innovation-driven marketing change, comprehensive optimization of the salesorganization structure, and dealers to create a closer “common war together”model to improve market response speed. We innovated the capacity operationmode, officially launched the new system of “JMC Fun-to-Drive”, increased thecapacity cooperation with logistics enterprises, and gradually formed a customer-centered commercial vehicle ecosystem, focusing on the whole life cycle of theautomobile and providing customers with all-round solutions. JMC actively laid outthe RV business and off-road pickup and modified car market to create uniqueproducts and lead the market trend; at the same time, the Company will acceleratethe pilot operation of intelligent driving parks and create industry-leading automaticdriving solutions. The Company will strengthen export cooperation and synergy,seize the opportunities of globalization, optimize the allocation of products,channels, after-sales and other resources, and continuously shape the new kineticenergy of the Company's development.
In 2024, JMC planned the productivity of 320 thousand units and the utilization ratewas 108%.
Vehicle manufacturing and operation?Applicable □Not Applicable
Production and Sales Volume Information
| Production Volume (Unit) | Sales Volume (Unit) | |||||
| 2024 FY | 2023 FY | YOY change (%) | 2024 FY | 2023 FY | YOY change (%) | |
| By Products | ||||||
| Light Bus | 87,542 | 78,368 | 11.71% | 87,310 | 80,223 | 8.83% |
| Truck | 65,352 | 63,135 | 3.51% | 61,932 | 62,815 | -1.41% |
| Pickup | 72,579 | 58,723 | 23.60% | 73,242 | 59,660 | 22.77% |
| SUV | 119,368 | 107,199 | 11.35% | 118,724 | 107,310 | 10.64% |
| Total | 344,841 | 307,425 | 12.17% | 341,208 | 310,008 | 10.06% |
| By Region | ||||||
| China | 344,841 | 307,425 | 12.17% | 341,208 | 310,008 | 10.06% |
Reasons for the year-on-year change of more than 30%
□Applicable ?Not Applicable
Component Kit System ConstructionJMC owns in-house R&D and manufacturing capability for key components, withsuch important components as engine, body parts, frame and front axle, etc.developed and manufactured independently. For some other key components,JMC keeps strategic cooperation with industry leading suppliers, e.g. Bosch,Baosteel, Garrett, ZF, Magna, Autoliv, and Dicastal. JMC has established strategiccooperation with such leading enterprises as CATL and Suzhou Inovance on newenergy development. For smart connectivity, JMC conducted diversifiedcooperation with such giants as Tencent, Hengrun, Baidu and Desay SV, etc. forecology development. With the vision of achieving customer success, JMCcooperates with suppliers to create a customer-centered vehicle experience andstrives to build a sustainable agile supply system. Through innovative thinking anddigitalization, JMC has established a complete supplier access, capabilityimprovement and supplier control mechanism from the perspectives of technology,quality, cost, delivery and service, thus effectively promoting the competitivenessof the supply system.
Production and operation of auto parts during the reporting period
□Applicable ?Not Applicable
The Company carries out auto finance business
□Applicable ?Not Applicable
The Company carries out new energy vehicle related business?Applicable □Not Applicable
Production and operation of new energy vehicles and parts
| Product Category | Capacity (Unit) | Production Volume (Unit) | Sales Volume (Unit) | Revenue (RMB) |
| New Energy Bus Series | 50,000 | 7,903 | 7,364 | 624,062,970 |
| New Energy Passenger Vehicles and Pickup | 50,000 | 1,732 | 1,420 | 216,197,668 |
| New Energy Truck | 30,000 | 6,042 | 2,155 | 278,003,400 |
| Total | 130,000 | 15,677 | 10,939 | 1,118,264,038 |
Note: all new energyvehicles are collinearwith corresponding fuel
vehicles.
3. Core Competitiveness Analysis
The Company is a modern Sino-foreign joint venture that integrates automobileresearch and development, manufacturing and sales. It is a pioneer in the Chineseauto industry that provides excellent products and solutions for the intelligentlogistics field by relying on the market leadership and advanced technology of lightcommercial vehicles. It owns the titles of National High-tech Enterprise, NationalInnovation Pilot Enterprise, National Enterprise Technology Center, NationalIndustrial Design Center, National Intellectual Property Demonstration Enterprise,and National Vehicle Export Base. It has been ranking among the top 100 mostvaluable automobile brands in the world for many consecutive years. In 2024, JMClight bus ranked No.1 in the segment, Pickup ranked No.2 in the segment, andlight truck ranked No.6 in the segment. JMC export sales have made sustainedgrowth, with sales of 116,630 units, a year -on -year increase of 5.9%. There aremore than 100 overseas dealers, more than 1,000 showrooms, and more than 100countries and regions exporting vehicles and CKDs, and Saudi Arabia has becomethe first overseas market with an annual export volume of 20,000 vehicles.
JMC always takes customers as the center, and provides customized integratedsolution based on customer use scenarios. For customers in the field of medicaland health care, the Company has launched more than 10 kinds of "big health"product series, including isolation transfer vehicle, medical checkup medicalvehicle, medical waste transfer vehicle, disinfection and epidemic preventionvehicle, etc., contributing JMC's power to the national’s big health. At the sametime, the Company continues to empower smart logistics, design integratedsolutions for the needs of large logistics customers to increase efficiency andreduce cost, and provide C2B customized product services, end-to-end logisticssolutions and overall logistics capacity platform services.
The Company is a full scenario solution provider for light commercial vehicles. JMClight bus has an insight into customers’ needs and the light bus operation scenarios,and has launched high-quality, excellent and cost-effective light bus productportfolios, achieving the full coverage of scenarios like freight, and passengertransport. At the same time, it also has strong customization capabilities, andcontinues to hold the first place in the market in light passenger conversionscenarios such as traveling, ambulance, money transportation and commercial.Relying on the leading technology line, JMC light truck has built the QingyunArchitecture, which combines five major technology platforms, including intelligentdriving, intelligent Internet connection, advanced electrical architecture, diversifiedpower and high-performance chassis, bringing users a more intelligent andcomfortable, lightweight and energy-saving vehicle experience, meanwhile, theintelligent driver Jiangling E Lu Da extended range version, which combines the
four core advantages of “more, faster, wiser and more economical”, was newlylaunched, further perfecting the product matrix of Jiangling's Qingyun Architecture.JMC launched "JMC Dadao", a new Pickup product, positioning "Chinese pickupexpert of full scenarios", covering the market of mid-to-high commercial andpassenger dual-use and passenger off-road Pickups whose price are more thanRMB 100,000. JMC has established the coexistence strategy of the three seriesof Pickup products and completed the full price and product matrix layout in thePickup segment.
The Company's passenger car segment has a clear customer positioning, focusingon outdoor and off-road and intelligent mobility, and building a differentiatedcompetitive system with “Ford Beyond” as its core brand. In terms of productpositioning and advantages, relying on the hardcore off-road genes to build a full-scene product matrix, covering off-road, Pickup, urban and new energy sectors,launching new energy passenger vehicle SUV products, synchronized with a high-level intelligent cockpit and L3-level automatic driving capabilities, forming a “fuel+ electric”, “traditional + intelligent” dual technical advantages. At the level ofchannel capability and user operation, the Company has established 118 4S storesand 42 satellite stores to cover 78% of the off-road market in China, optimizedoperational efficiency by combining AI digital tools and financial incentives, andheld more than 800 Ford Beyond themed user activities throughout the year, andbuilt the first outdoor theme park outside of North America, realizing the three-foldintegration of experience, community ecology and operational digitization. As adifferentiated competitiveness, the modification business has developed 100+official certified models in cooperation with 58 modification factories, innovated thedual-wheel-drive model of “performance modification + mood parts”, and promotedthe continuous growth of modification revenue by virtue of the original warrantyendorsement to form a closed-loop ecosystem of product customization and deepexcavation of user value.
The Company adheres to the dual-brand strategy of Self-owned and Ford, givingfull play to its own advantages while deeply integrating Ford's global system. Interms of technology research and development, with the help of Ford's globalplatform, the Company has gradually formed the core competitiveness ofindependent research and development, established an independent research anddevelopment system, built an advanced global digital design platform, and jointlydevelops, designs and launches specific new products with Ford. The Companyhas been an industry-leading technology center and industrial design center interms of brand channels, the Company currently has more than 700 tier 1 dealers,with a total of more than 2,000 dealers, and has established a modern marketingsystem through the four-in-one franchise model of sales, accessories, service andinformation. In terms of manufacturing management, the Company has vehicleproduction bases such as Xiaolan Plant and Fushan Plant, covering stamping,welding, painting, diesel engines, gasoline engines and other advancedmanufacturing technology, to create a highly intelligent, highly flexible smartmanufacturing center. The Company is a demonstration enterprise in Jiangxi
Province for integration of informatization and industrialization. In terms ofautonomous driving, the Company has been working with strategic partnerWeRide on commercialization practice, and has been approved to carry out "purelyunmanned test" and "cargo test" for self-driving urban freight vehicles inGuangzhou, which is the first purely unmanned remote test permit for L4-classautonomous driving freight vehicles under urban open road scenarios in China.This is China's first purely unmanned remote test license for L4-class self-drivingfreight vehicles in urban open road scenarios. In the future, the Company will uselight commercial vehicles as carriers, and deeply plough into the development andoperation of self-driving in urban freight transportation and park logistics scenarios.In terms of new energy, the Company has comprehensively laid out a full spectrumof new energy products such as light buses, Pickups and light trucks, and launcheda new pure-electric commercial vehicle platform, under which E Fushun & & EShunda are newly developed pure-electric architecture with all scenarios, allcategories and global market-oriented products. Meanwhile, the new energytransportation brand "JMC Fun-to-Drive" has expanded the transport capacity andleasing business, providing customers with a systematic solution of "full-sceneproduct coverage, full-scene customer service, and full-scene ecologicalconstruction”. In terms of export business, the Company has entered into aFramework Agreement on Vehicle Export Opportunities with Ford. LeveragingFord’s mature global business layout and network, both parties intend to procurethe Company to become an engineering and manufacturing center for exportedproducts based in China, supporting Ford’s global sales network. Currently, theCompany's products have been exported to 105 countries and regions worldwide,covering Southeast Asia, the Middle East, and Latin America.
4. Core Business Analysis
I. SummaryIn 2024, China's annual automobile production and sales both saw robust growth,setting new historical record. Among them, the passenger car market continued itsstrong growth trend, achieving sales of 27,563 thousand units; the commercialvehicle market stabilized and rebounded; automobile exports reached a new high,with 5,859 thousand units exported throughout the year, effectively driving overallrapid growth of the industry.
During the reporting period, in order to respond to a tougher competitiveenvironment, stricter homologation requirement and cost increase, JMC has beendedicated in improving the product quality, promoting new product development,controlling operation cost and enhancing production efficiency. At the same time,JMC launched a series of marketing proposals to actively cope with market risks.In 2024, JMC achieved sales volume of 341,208 units, including 87,310 light buses,61,932 trucks, 73,242 Pickups and 118,724 SUVs, with a year-on-year increase of
10.06%. In 2024, the total production volume was 344,841 units, including 87,542light buses, 65,352 trucks, 72,579 Pickups and 119,368 SUVs, with a year-on-yearincrease of 12.17%.
In 2024, the operation revenue reached RMB 38,374 million, up 15.7% year-on-year. The operation cost was RMB 32,952 million, up 16.04% year-on-year. Themarketing expense was RMB1,059 million, down 6.79% year-on-year. Theadministration expense was RMB 944 million, down 4.05% year-on-year. R&D costwas RMB 1,315 million, up 2.21% year-on-year. The financial expense was RMB-152 million, up 25.67% year-on-year.
II. Revenue and Cost(a) Composition of Sales Revenue
Unit: RMB
| 2024 FY | 2023 FY | YOY change (%) | |||
| Amount | Proportion (%) | Amount | Proportion (%) | ||
| Revenue | 38,374,160,748 | 100% | 33,167,325,081 | 100% | 15.70% |
| By Industry | |||||
| Automobile Industry | 38,374,160,748 | 100% | 33,167,325,081 | 100% | 15.70% |
| By Products | |||||
| Vehicle | 34,701,934,080 | 90.43% | 30,379,757,733 | 91.60% | 14.23% |
| Components | 1,806,591,173 | 4.70% | 1,719,943,033 | 5.18% | 5.04% |
| Automobile Maintenance Services | 727,295,125 | 1.90% | 574,249,512 | 1.73% | 26.65% |
| Material & Others | 1,138,340,370 | 2.97% | 493,374,803 | 1.49% | 130.73% |
| By Region | |||||
| China | 38,374,160,748 | 100% | 33,167,325,081 | 100% | 15.70% |
| Sales model | |||||
| Distribution | 36,035,440,181 | 93.91% | 31,896,589,121 | 96.17% | 12.98% |
| Direct selling | 2,338,720,567 | 6.09% | 1,270,735,960 | 3.83% | 84.04% |
(b) Reach to 10% of Revenue or Profit by Industry, Product, Region or SalesModel?Applicable □Not Applicable
Unit: RMB
| Turnover | Cost | Gross Margin | YOY turnover change (%) | YOY Cost Change (%) | YOY gross margin change (points) | |
| By Industry | ||||||
| Automobile Industry | 38,374,160,748 | 32,951,745,144 | 14.13% | 15.70% | 16.04% | -0.26% |
| By Products | ||||||
| Vehicle | 34,701,934,080 | 30,059,078,108 | 13.38% | 14.23% | 14.85% | -0.47% |
| By Region | ||||||
| China | 38,374,160,748 | 32,951,745,144 | 14.13% | 15.70% | 16.04% | -0.26% |
If the Company’s core business scope is adjusted during the reporting period, theCompany’s core business data of last year need to be adjusted per the scope inthis year
□Applicable ?Not Applicable
(c) Whether the Company’s Goods Revenue Higher Than Service Revenue?Yes □No
| Industry | Item | Unit | 2024 | 2023 | Change (%) |
| Automobile | Sales Volume | unit | 341,208 | 310,008 | 10.06% |
| Production Volume | unit | 344,841 | 307,425 | 12.17% | |
| Inventory Volume | unit | 5,240 | 5,937 | -11.74% |
Explanation on YOY change of over 30%
□Applicable ?Not Applicable
(d) Execution of the Company’s Signed Major Sales Contracts and MajorPurchase Contracts as of the Reporting Period
□Applicable ?Not Applicable
(e) Composition of Operating CostProduct categories
Unit: RMB
| Product | Item | 2024 FY | 2023 FY | YOY Change（%） | ||
| Cost | Proportion (%) | Cost | Proportion (%) | |||
| Vehicle | Cost | 30,059,078,108.00 | 91.22% | 26,171,901,058.00 | 92.17% | 14.85% |
| Components | Cost | 1,234,273,997.00 | 3.75% | 1,244,592,272.00 | 4.38% | -0.83% |
| Automobile Maintenance Services | Cost | 710,258,938.00 | 2.15% | 561,963,188.00 | 1.98% | 26.39% |
| Material & Others | Cost | 948,134,101.00 | 2.88% | 417,730,549.00 | 1.47% | 126.97% |
(f) Whether the Consolidated Scope was Changed During the Reporting Period
□Yes ?No
(g) Major Change or Adjustment on Business, Products or Services During theReporting Period
□Applicable ?Not Applicable
(h) Main Customers and SuppliersMain Customers
| Total sales value to top 5 customers（RMB） | 12,410,051,262 |
| Accounted for the proportion of JMC’s total annual turnover | 32.35% |
| Included related party transaction accounted for the proportion of JMC’s total annual turnover | 28.27% |
Top 5 Customers
| No. | Name of the Customer | Sales Value (RMB) | Percentage of JMC’s Total Turnover (%) |
| 1 | Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. | 10,846,977,547 | 28.27% |
| 2 | Sichuan Jinhua New Energy Automobile Sales Co., Ltd. | 411,711,701 | 1.07% |
| 3 | Yunnan Mingfu Automobile Sales and Service Co., Ltd. | 406,311,583 | 1.06% |
| 4 | Xinjiang Jiangzhiling Automobile Sales Service Co., Ltd. | 381,849,776 | 1% |
| 5 | Zhenjiang Suzhong Jiangling Automotive Sales Service Co., Ltd. | 363,200,655 | 0.95% |
| Total | 12,410,051,262 | 32.35% |
Other introduction to main customers?Applicable □Not ApplicableJiangxi Jiangling Motors Imp. & Exp. Co., Ltd. is a related party of the Company.
Main Suppliers:
| Total purchase value from top 5 suppliers（RMB） | 5,605,039,632 |
| Accounted for the proportion of JMC’s total annual purchase amount | 18.60% |
| Included related party transaction accounted for the proportion of JMC’s total annual purchase amount | 18.60% |
Top 5 Suppliers:
| No. | Name of the Supplier | Purchase Value (RMB) | Percentage of JMC’s Total Annual Purchase Amount (%) |
| 1 | Ford Motor Company | 1,400,778,072 | 4.65% |
| 2 | Nanchang Jianglin Huaxiang Automobile Parts Co., Ltd. | 1,263,327,476 | 4.19% |
| 3 | Magna PT Powertrain (Jiangxi) Co., Ltd. | 1,213,283,975 | 4.03% |
| 4 | Jiangxi Jiangling Chassis Co., Ltd. | 868,277,838 | 2.88% |
| 5 | Jiangxi Zhonglian Intelligent Logistics Co., Ltd. | 859,372,271 | 2.85% |
| Total | 5,605,039,632 | 18.60% |
Other introduction to main suppliers
?Applicable □Not ApplicableFord Motor Company, Nanchang Jianglin Huaxiang Automobile Parts Co., Ltd.,Magna PT Powertrain (Jiangxi) Co., Jiangxi Jiangling Chassis Co., Ltd. and JiangxiZhonglian Intelligent Logistics Co., Ltd., are related parties of the Company.
III. Expense
Unit: RMB
| 2024 | 2023 | YOY Change | |
| Distribution Expenses | 1,058,948,593 | 1,136,033,603 | -6.79% |
| Administrative Expenses | 943,622,568 | 983,458,031 | -4.05% |
| Finance Income-net | -152,310,137 | -204,908,754 | 25.67% |
| R & D Expenses | 1,314,579,423 | 1,286,201,612 | 2.21% |
IV. Research & Development
| Name of main R&D project | Project purpose | Project progress | Goals to be achieved |
| All New Electric Platform SUV Product Project | To enhance the competitiveness of passenger vehicle products for Ford Beyond, and meet the requirements of fleet dual credit policy for passenger vehicles in future | It is under development and will be launched in the second half of 2025. | Increase the Company's operating revenue. |
| All New Shunda Light Truck Domestic and Export Program | To upgrade the Company's Shunda brand light truck and further expand export opportunities | It is under development and will be launched for domestic market in the first half of 2025 and for export in the second half of 2025 | Increase the Company's operating revenue. |
| All New Baodian/Yuhu Pickup Domestic and Export Program | To upgrade the Company's Baodian/Yuhu brand Pickup and further expand export opportunities | It is under development and will be launched for domestic market in the first half of 2025 and for export in the second half of 2025 | Increase the Company's operating revenue. |
Company R & D personnel
| 2024 | 2023 | Change(%) | |
| R&D staff (person) | 2,628 | 2,477 | 6.10% |
| R&D staff as % of total employees | 22.75% | 21.32% | 1.43% |
| Educational structure of R&D personnel | |||
| Undergraduate | 1,850 | 1,772 | 4.40% |
| Master | 639 | 568 | 12.50% |
| Age composition of R&D personnel | |||
| Under the age of 30 years old | 586 | 590 | -0.70% |
| 30 ~ 40 years old | 1,605 | 1,498 | 7.10% |
R&D Investment
| 2024 | 2023 | Change(%) |
| R&D investment (RMB) | 1,699,761,123 | 1,846,382,521 | -7.94% |
| R&D investment as % of revenue | 4.43% | 5.57% | -1.14% |
| Capitalization of R&D investment | 385,181,700 | 560,180,909 | -31.24% |
| Capitalization of R&D investment as % of R&D investment | 22.66% | 30.34% | -7.68% |
Causes and impacts of major changes in the composition of R&D personnel
□Applicable ?Not Applicable
Reason for the substantial change of R&D investment as % of revenue
□Applicable ?Not Applicable
Reason and rationality of the substantial change in the capitalization rate of R &D investment
□Applicable ?Not Applicable
V. Cash Flow Analysis
Unit: RMB
| Item | 2024 | 2023 | Change (%) |
| Cash received from operating activities | 41,944,318,317 | 38,462,687,962 | 9.05% |
| Cash outflows from operating activities | 39,310,934,100 | 33,895,148,096 | 15.98% |
| Net cash flows from operating activities | 2,633,384,217 | 4,567,539,866 | -42.35% |
| Cash received from investing activities | 1,055,877,570 | 624,431,306 | 69.09% |
| Cash outflows from investing activities | 2,415,222,271 | 1,796,589,520 | 34.43% |
| Net cash flows from investing activities | -1,359,344,701 | -1,172,158,214 | -15.97% |
| Cash received from financing activities | 3,078,140,000 | 5,027,854,833 | -38.78% |
| Cash outflows from financing activities | 3,623,522,122 | 5,219,911,524 | -30.58% |
| Net cash flows from financing activities | -545,382,122 | -192,056,691 | -183.97% |
| Net increase in cash and cash equivalents | 728,657,394 | 3,203,324,961 | -77.25% |
Explanation on the major factors regarding major change of related data?Applicable □Not Applicable
The year-on-year decrease in the Net cash flow generated from operating activitieswas primarily due to an increase in cash paid for operating activities compare withthe same period.
The year-on-year decrease in the net cash flow generated from financing activitieswas mainly due to the increase in dividend payments and repayment of leaseliability payments.
The year-on-year decrease in the net increase in cash and cash equivalents wasmainly due to an decrease in net cash generated from operating activities.
Explanation on significant difference between net cash generated from operatingactivities and net profit during the reporting period.
□Applicable ?Not Applicable
5. Non- core business analysis
□Applicable ?Not Applicable
6. Analysis of Assets and Liabilities
I. Major changes
Unit: RMB
| Asset item | End of 2024 | Beginning of 2024 | YOY | ||
| Proportion change | |||||
| Amount | Proportion | Amount | Proportion | (Points) | |
| Cash and cash equivalents | 12,546,295,890 | 40.68% | 11,830,560,675 | 40.60% | 0.08% |
| Accounts receivables | 4,181,008,234 | 13.56% | 4,401,826,022 | 15.11% | -1.55% |
| Inventories | 2,054,517,242 | 6.66% | 1,560,259,511 | 5.35% | 1.31% |
| Long-term equity investments | 219,298,031 | 0.71% | 233,798,348 | 0.80% | -0.09% |
| Fixed assets | 5,749,474,005 | 18.64% | 5,389,645,152 | 18.49% | 0.15% |
| Construction in progress | 661,911,780 | 2.15% | 464,431,412 | 1.59% | 0.56% |
| Right-of-use assets | 158,485,688 | 0.51% | 194,836,028 | 0.67% | -0.16% |
| Short-term borrowings | 1,500,000,000 | 4.86% | 1,300,000,000 | 4.46% | 0.40% |
| Contract liabilities | 467,704,291 | 1.52% | 243,740,992 | 0.84% | 0.68% |
| Long-term borrowings | 941,453 | 0% | 1,391,414 | 0% | 0% |
| Lease liabilities | 93,752,634 | 0.30% | 138,005,943 | 0.47% | -0.17% |
Foreign assets account for a relatively high proportion
□Applicable ?Not Applicable
II. The fair value of the assets and liabilities.
Unit: RMB
| Item | financial assets | 1.Trading financial assets (excluding derivative financial assets) | 2.Receivables financing | Subtotal | Financial liabilities |
| Beginning of the period | 200,604,877 | 123,170,062 | 323,774,939 | 0 |
| Loss/profit in fair value in the period | -604,877 | -604,877 | |||
| Cumulative changes in fair value recorded into equity | |||||
| Impairment in the period | |||||
| Purchase in the period | 600,000,000 | 3,601,628,180 | 4,201,628,180 | ||
| Sell in the period | 800,000,000 | 3,422,732,740 | 4,222,732,740 | ||
| Other changes | |||||
| End of the period | 302,065,502 | 302,065,502 | 0 |
Other changeNone.
Whether there is a significant change in the measurement attributes of theCompany's main assets during the reporting period
□Applicable ?Not Applicable
III. Restriction on Assets Rights as of the End of the Reporting Period
Units: RMB
| Items | Book value at the end of the period | Cause for restriction |
| Cash and cash equivalents | 18,692,687 | frozen funds for litigation. |
7. Investment Analysis
I. Summary
□Applicable ?Not Applicable
II. Obtained Major Equity Investment during the Reporting Period
□Applicable ?Not Applicable
III. Ongoing Major Non-Equity Investment during the Reporting Period
□Applicable ?Not Applicable
IV. Financial Assets Investment(a) Stock Investment
□Applicable ?Not Applicable
There was no financial assets investment on the reporting period.
(b) Derivative Investment?Applicable □Not Applicable
(1) Derivative investments for hedging purposes during the reporting period?Applicable □Not Applicable
Units: RMB’000
| Types of Derivatives Investments | Foreign Exchange - Forward Purchase | Total | |
| Initial investment amount | 231,890 | 231,890 | |
| Amount at the beginning of the year | 231,890 | 231,890 | |
| Gains and losses on fair value changes during the period | 13,070 | 13,070 | |
| Cumulative fair value changes recognized in equity | 18,310 | 18,310 | |
| Amount acquired during the reporting period | 1,072,660 | 1,072,660 | |
| Amount sold during the reporting period | 834,160 | 834,160 | |
| Amount at the end of the year | 470,390 | 470,390 | |
| Proportion of the investment amount at the end of the period to the Company's net assets at the end of the reporting period | 4.17% | 4.17% | |
| Statement on whether there were significant changes of the accounting policies and specific principles of accounting applied to hedging activities during the reporting period as well as compared with the previous reporting period | No. | ||
| Explanation of actual gains and losses during the reporting period | The actual trading profit during the reporting period was RMB 5.24 million. | ||
| Description of hedging effects | JMC forward business adheres to the principle of risk neutrality and is based on normal production and operation, with the main purpose of maintaining financial stability and avoiding the risk of exchange rate fluctuations. | ||
| Sources of funds for derivatives investments | Self-owned funds. | ||
| Risk analysis and description of control measures for derivative positions during the reporting period (including but not limited to market risk, liquidity risk, credit risk, operational risk, legal risk, etc.) | Risk analysis: 1. Market risk: In the case of large exchange rate fluctuations, losses may arise from the deviation of the exchange rate of the forward contract from the market spot rate on the maturity date of the contract; | ||
| Disclosure of changes in the market prices or fair value of derivative instruments held during the reporting period. The analysis of the fair value of derivatives shall disclose the specific valuation methods applied, as well as the underlying assumptions and parameters used. | The Company recognizes and measures the fair value in accordance with Chapter 7 “Measurement of Financial Instruments” of “Accounting Standard for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments”, and the fair value is basically determined by reference to the bank's pricing for the purpose of fair value measurement and recognition. During the reporting period, the gain or loss on fair value changes of foreign exchange forward contracts amounted to RMB13.07 million. |
| Litigation status | No. |
(2) Derivative investments for speculative purposes during the reporting period
□Applicable ?Not Applicable
During the reporting period, the Company did not engage in any derivativeinvestments for speculative purposes.
V. Usage of Raised Fund
□Applicable ?Not Applicable
There was no usage of raised fund on the reporting period.
8. Sales of Major Assets and Equity
I. Sale of Major Assets
□Applicable ?Not Applicable
II. Sales of Major Equity
□Applicable ?Not Applicable
9. Analysis of major shareholding companies
?Applicable □Not ApplicableMain Subsidiaries and the Joint-Stock Companies whose operating resultsimpact on JMC’s net profit more than 10%
Unit: RMB’000
| Name of companies | Jiangling Motors Sales Corporation, Ltd | JMC Heavy Duty Vehicle Co., Ltd. | Jiangling Ford Automobile Technology (Shanghai) Co., Ltd. |
| Type of companies | Whole-owned subsidiary | Whole-owned subsidiary | Holding subsidiary |
| Main business | Sales of vehicles and service parts. | Production and sales of automobiles, engines and other automotive parts | Engineering and technology research and experimental development, sales of vehicles, new energy |
| vehicles, auto parts, etc. | |||
| Registered capital | 50,000.00 | 1,323,793.20 | 200,000.00 |
| Assets | 5,711,286.90 | 370,419.70 | 1,106,037.20 |
| Net assets | 152,743.70 | 335,761.70 | -1,422,929.20 |
| Turnover | 19,936,912.50 | 366.70 | 5,322,618.20 |
| Operating profit | -136,053.80 | -31,052.40 | -901,259.90 |
| Net profit | -101,840.30 | -30,481.10 | -677,473.90 |
Acquisition and disposal of the subsidiaries
□Applicable ?Not Applicable
Description of the main holding and participating companiesThe impact of Jiangling Ford Automobile Technology (Shanghai) Co., Ltd. on theCompany's performance is increase in net profit attributable to shareholders of thelisted company caused by the changes in Minority Interests.
10. Structured Entities Controlled by JMC
□Applicable ?Not Applicable
11. Outlook
I. Industry DevelopmentUnder the influence of favorable factors such as the accelerated release of macropolicy vitality, the continued role of the 'two new' policies, the continuation of thenew energy purchase tax exemption policy, and the continued expansion ofoverseas market space, China's automobile market will continue to show a stableand improving development trend in 2025, with total sales expected to reach 32.9million units, up 4.7% year-on-year, of which 28.9 million units will be passengercars, a year-on-year growth of 4.9%, and 4.0 million units will be commercialvehicles, a year-on-year growth of 3.3%, new energy vehicles will continue to growat a rapid pace, with annual sales expected to reach 16 million units, realizing ayear-on-year growth rate of 24.4%. In terms of automobile exports, the growth rateis expected to slow down due to increased external environment pressure. It isexpected that automobile exports will reach 6.2 million units in 2025, up 5.8% year-on-year.
II. Company StrategyJMC adheres to the development vision of “becoming a leader in the lightcommercial vehicle industry and a high performance provider of Ford” and thevalues of “integrity, dedication, innovation and cooperation”. In terms ofcommercial vehicles, JMC aims at being a provider of comprehensive product andservice solutions of urban and trunk logistics, and creating a “lifelong partner” newbusiness concept to meet customer needs through offering customized products
and integrated services. In the passenger car field, JMC focuses on outdoor andoff-road needs and provide differentiated products to create the ultimate customerexperience. JMC will continue to focus on its core business, explore the potentialof niche fields, always take customers’ demands as orientation, enhance themarket awareness of the whole value chain, and strive to shape its products intothe leaders of niche market. JMC will also aim at the new development trend of theautomobile industry, accelerate the transition to new energy vehicles, increaseinvestment, carry out technology research and development and productinnovation, anchor in overseas markets, establish and improve the internationalmarketing service system, consolidate and expand the automobile exports to themarkets of key countries and regions, cultivate automobile exports as a newgrowth point of enterprise development, and comprehensively lay out thetechnology in new industrialization, information technology application,urbanization, and agricultural modernization, make layout in the core fields of newenergy vehicles, intelligent connected vehicles and autonomous driving, andaccelerate the construction of a future-oriented and globally competitive businessecosystem through the overall synergy and the integration of the newindustrialization, information technology application, urbanization, and agriculturalmodernization. JMC is committed to building a leading and perfect digital systemto make the product design, manufacturing, delivery, after-sales service and otherparts closer to user needs through in-depth data mining and demand analysis, soas to promote the pace of its digital transformation.
III. Business PlanIn 2025, the Company plans to achieve the sales volume of 390 thousand unitsand the operation revenue of over RMB 40 billion. In order to further improve themanagement quality, the Company will devote itself to the following aspects in2025:
(1) To stabilize and enhance the Company's leading position in the lightcommercial vehicle segment, and to deepen its efforts in private sphere marketingand promoting brand upward;
(2) To promote the optimization of Ford Beyond products, modifications, boutiqueproducts and services, operate user circles, create an off-road ecology, lead a newoutdoor off-road lifestyle, and steadily increase sales;
(3) To promote new energy strategic transformation, strengthen channels,comprehensively enhance the ability to develop in the field of new energy, openup new markets for capacity operation, and continue to improve the after-salesservice system;
(4) To deepen synergistic cooperation with shareholders, strengthen overseaslocalized operation, enrich product portfolio, enhance overseas service level,expand overseas market opportunities and further expand export scale;
(5) To adhere to the customer-centric approach, continue to stimulate systeminnovation, improve organizational effectiveness, gain deep insight into marketchanges and customer needs, and provide high-quality products and services;
(6) To launch and list the new pure-electric light bus, new pure-electric light truck,new BaoDian and Yuhu, new pure-electric SUV with high quality to enhancemarket competitiveness;
(7) To vigorously promote cost reduction and efficiency, advance digitaltransformation and upgrading, strengthen the development and application of bigdata models, enhance operational efficiency, and create an efficient and agileorganization.
IV. Potential Risks and SolutionsIn 2025, the global economic landscape will continue to adjust, and geopoliticalconflicts will make the global economy full of greater uncertainties. China willimplement a more proactive fiscal policy and a moderately loose monetary policyto expand domestic demand, promote consumption, strengthen industries andpromote reform. A series of incremental policies will continue to exert force, furtherrelease the policy effect, further activate the domestic demand market, and thenational economy is expected to maintain steady growth. However, at the sametime, the penetration rate of new energy continues to rise, intelligent and digitaldevelopment is accelerated, market concentration is further improved, andindustry competition is more fierce, which brings greater challenges to theCompany's operation. In order to continue maintain steady growth, JMC will focuson the following aspects:
(1) Customer-centered, based on customer needs and changes in the marketenvironment, explore new business growth points and seize the first opportunity inaccelerating development industries;
(2) Accelerate the strategic transformation of new energy, cultivate the corecompetitiveness of new energy products, create differentiated services on the newenergy platform, and increase the sales and penetration rate of new energyproducts;
(3) Continue to expand overseas market opportunities, optimize our businessmodel, promote the implementation of overseas business strategies, strengthenbrand building, and enhance product competitiveness and customer servicecapabilities;
(4) Accelerate breakthroughs in research and development of key coretechnologies in the fields of new energy and power, intelligent networking,intelligent cockpit, intelligent driving and software capacity building;
(5) Continue to deepen the Company's digital transformation, in-depth research on
the application of big data models in actual business scenarios to improveoperational efficiency;
(6) Strengthen the quality awareness of all staff, continue to carry out specialactions for quality improvement, establish an all-round and whole-processpreventive quality management system, and improve product quality;
(7) Carry out cost reduction and efficiency improvement work in an all-round andin-depth manner, strengthen the management and control of operating cash flow,consolidate and improve the quality of operations;
(8) Strengthen corporate governance, strictly abide by national laws andregulations, and improve risk assessment and control mechanism.
The Company will continue to be customer-centric, promote the high quality andefficient launch of traditional fuel and new energy products, actively explore newmarketing models, drive brand upgrades and channel renewal, accelerate theimplementation of key initiatives of the new energy strategy, increase the salesvolume and penetration rate of new energy products, and further solidify itsposition as a leader in light commercial vehicles. The Company is also acceleratingthe construction of Ford's off-road ecosystem, enhancing market awareness, andexpanding the scale of passenger car sales. The Company aims to significantlyboost export business and explore new business and profit models. The Companyremains committed to advancing development of the New Four Harmonization andaccelerating digital transformation. At the same time, JMC will continue toimplement the quality leadership strategy, optimize the cost structure, promotecost reduction and efficiency enhancement, improve profitability, and createsufficient cash flow to support the Company's high-quality development.
12. External Research, Communication, and Media Interview to the Company?Applicable □Not Applicable
| Date | Communication Method | Type of Object | Information Discussed and Materials offered |
| January 22, 2024 | telephonic communication | institutional investor | JMC Operating highlights |
| January 22, 2024 | telephonic communication | institutional investor | JMC Operating highlights |
| January 23, 2024 | telephonic communication | institutional investor | JMC Operating highlights |
| January 24, 2024 | field research | institutional investor | JMC Operating highlights |
| January 31, 2024 | telephonic communication | institutional investor | JMC Operating highlights |
| April 7, 2024 | Online communication through network platform | Individual Investors | JMC Operating highlights |
| May 17, 2024 | Online communication through network platform | Individual Investors | JMC Operating highlights |
13. Development and implementation of the market value management systemand valuation enhancement planWhether the Company has a market value management system in place.
□Yes ?No
Whether the Company has disclosed plans for valuation enhancement.
□Yes ?No
14. Implementation of the action program "Double Enhancement of Quality andReturn"Whether the Company has disclosed the action plan of "Double Enhancement ofQuality and Return".
□Yes ?No
Chapter IV Corporate Governance Structure
1. Status of the Corporate Governance in JMC
During the reporting period, the Company strictly abided by the Company Law, theSecurities Law, the Code of Corporate Governance for Listed Companies in China,the Rules Governing Listing of Stock on Shenzhen Stock Exchange, as well asrelevant laws and regulations, to carry out corporate governance activities andcontinued to improve its corporate governance.
Whether there are significant differences between the actual situation of corporategovernance in the company and the laws, administrative regulations and that ofregulations on corporate governance of listed companies promulgated by CSRC
□Yes ?No
There is no significant difference between the actual situation of corporategovernance in JMC and the laws, administrative regulations and that of regulationson corporate governance of listed companies promulgated by CSRC.
2. Separation between JMC and the Controlling Shareholders and actual controllerin respect of Personnel, Assets and Finance, and Independence concerningOrganization and Business:
(1) With respect to personnel matters, the positions of chairman and president areheld by different individuals; JMC’s senior management do not hold positions otherthan director positions with its controlling shareholders; JMC senior managementpersonnel are paid by JMC; labor, personnel matters and compensationmanagement of JMC are completely independent.
(2) With respect to assets, JMC assets are complete. The assets utilized by JMC,including production system, supporting production system and peripheral facilities,and non-patent technology, are owned and/or controlled by JMC.
(3) With respect to finance, JMC has an independent finance department andindependent accounting system, and has a uniform and independent accountingsystem and financial control system for its branches and subsidiaries. JMC has itsown bank accounts, and there are no bank accounts jointly owned by JMC and itscontrolling shareholders. JMC pays taxes independently in accordance withrelevant laws.
(4) With respect to organization, JMC’s organization is independent, complete andscientifically established with a sound and efficient operating mechanism. Theestablishment and the operation of JMC’s corporate governance are strictly carriedout per the Articles of Association of JMC. Production and administrativemanagement are independent from the controlling shareholders. JMC hasestablished an organization structure that meets the need for ongoing development.
(5) With respect to business, JMC has independent purchasing, production andsales systems. The purchasing, production and sales of main materials andproducts are carried out through its own purchasing, production & sales functions.JMC is independent from the controlling shareholders in respect to its business, andhas independent and complete business and self-sufficient operating capability.
3. Horizontal Competition
□Applicable ?Not Applicable
4 Introduction to the Shareholders’ Meetings Held in the Reporting Period
(1) Index to the Shareholders’ Meeting in the reporting period
In 2024, the Company has hold four shareholders’ meetings, and the relevantcontents are as follows:
1. Session of the meeting：2024 First Special Shareholders’ MeetingThe meeting type: special shareholders’ meetingInvestor participation ratio: 78.02%Convening date: February 6, 2024Disclosure date: February 7, 2024The meeting resolutions:
1. approved the Proposal on Providing Financial Assistance to a Holding Subsidiary;
2. approved the Proposal on the Y2024 Routine Related Party TransactionFramework with JMCG Finance Company;
3. approved the Proposal on the Y2024 Routine Related Party TransactionFramework with Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. and its subsidiaries;
4. approved the Proposal on the Y2024 Routine Related Party TransactionFramework with Jiangling Motor Group Co., Ltd. and its subsidiaries;
5. approved the Proposal on the Y2024 Routine Related Party TransactionFramework with Ford and its subsidiaries;
6. approved the Proposal on the Y2024 Routine Related Party TransactionFramework with Magna PT Powertrain (Jiangxi) Co., Ltd.;
7. approved the Proposal on the Y2024 Routine Related Party TransactionFramework with Nanchang Jiangling Huaxiang Auto Components Co., Ltd.;
8. approved the Proposal on the Y2024 Routine Related Party TransactionFramework with Nanchang Baojiang Steel Processing Distribution Co., Ltd.;
9. approved the Proposal on the Y2024 Routine Related Party TransactionFramework with China South Industries Group Co., Ltd. and its subsidiaries;
10. approved the Proposal on the Y2024 Routine Related Party TransactionFramework with Jiangxi Jiangling Lear Interior System Co., Ltd.;
11. approved the Proposal on the Y2024 Routine Related Party TransactionFramework with Faurecia Emissions Control Technologies (Nanchang) Co., Ltd.
2. Session of the meeting：2024 Second Special Shareholders’ MeetingThe meeting type: special shareholders’ meetingInvestor participation ratio: 75.62%Convening date: April 11, 2024Disclosure date: April 12, 2024The meeting resolutions:
1. approved the Proposal on Retaining of External Auditor and C-Sox Auditor;
2. approved the Proposal on Electing Ms. Zhong Junhua as a Director of theEleventh Board of Directors of JMC.
3. Session of the meeting：2023 Annual Shareholders’ MeetingThe meeting type: annual shareholders’ meetingInvestor participation ratio: 76.73%Convening date: June 25, 2024Disclosure date: June 26, 2024
The meeting resolutions:
1. approved 2023 Work Report of the Board of Directors of JMC;
2. approved 2023 Work Report of the Supervisory Board of JMC;
3. approved 2023 Annual Report of JMC and the Extracts from such Annual Report;
4. approved 2023 Financial Statements of JMC;
5. approved the Proposal on JMC Profit Distribution for Year 2023.
4. Session of the meeting：2024 Third Special Shareholders’ MeetingThe meeting type: special shareholders’ meetingInvestor participation ratio: 76.09%Convening date: October 30, 2024Disclosure date: October 31, 2024The meeting resolutions:
1. approved the Proposal on Change of the External Auditor and C-SOX Auditor.
(2) Special Shareholders’ Meeting convened by preferred-shareholders whosevoting rights were restored
□Applicable ?Not Applicable
5.Directors, supervisors and senior managers
(1) Basic information
| Name | Gender | Age | Position | Term of Office | Shares at the period-beginning | Stock options | restricted stock | Share Change in the reporting period | Shares at the period-end |
| Qiu Tiangao | Male | 58 | Chairman | 2016.04.07-2026.06.15 | 0 | 0 | 0 | 0 | 0 |
| Shengpo Wu | Male | 58 | Vice Chairman | 2022.11.24-2026.06.15 | 0 | 0 | 0 | 0 | 0 |
| Ryan Anderson | Male | 51 | Director | 2021.10.18-2026.06.15 | 0 | 0 | 0 | 0 | 0 |
| Yuan Mingxue | Male | 56 | Director | 2021.10.18-2026.06.15 | 0 | 0 | 0 | 0 | 0 |
| Xiong Chunying | Female | 60 | Director | 2021.06.25-2026.06.15 | 1,200 | 0 | 0 | 0 | 1,200 |
| President | 2021.05.01-2026.06.15 | ||||||||
| Zhong Junhua | Female | 48 | Director | 2024.04.11-2026.06.15 | 0 | 0 | 0 | 0 | 0 |
| EVP | 2024.03.26-2026.06.15 | ||||||||
| Yu Zhuoping | Male | 64 | Independent Director | 2021.10.18-2026.06.15 | 0 | 0 | 0 | 0 | 0 |
| Chen Jiangfeng | Male | 45 | Independent Director | 2020.06.19-2026.06.15 | 0 | 0 | 0 | 0 | 0 |
| Wang Yue | Female | 46 | Independent Director | 2020.06.19-2026.06.15 | 0 | 0 | 0 | 0 | 0 |
| Xiao Hu | Male | 56 | Chief supervisor | 2018.12.06-2026.06.15 | 0 | 0 | 0 | 0 | 0 |
| Zhang Yangyang | Male | 45 | Supervisor | 2021.10.18-2026.06.15 | 0 | 0 | 0 | 0 | 0 |
| Zhang Jian | Male | 55 | Supervisor | 2011.06.23-2026.06.15 | 40 | 0 | 0 | 0 | 40 |
| Ma Jian | Male | 49 | Supervisor | 2022.03.18-2026.06.15 | 0 | 0 | 0 | 0 | 0 |
| Li Yanling | Female | 47 | Supervisor | 2022.03.18-2026.06.15 | 0 | 0 | 0 | 0 | 0 |
| Ding Wenmin | Male | 52 | EVP | 2022.06.01-2026.06.15 | 0 | 0 | 0 | 0 | 0 |
| Joey Zhu | Male | 42 | CFO | 2021.10.01-2026.06.15 | 0 | 0 | 0 | 0 | 0 |
| Erik Hermann | Male | 60 | VP | 2021.02.01-2026.06.15 | 0 | 0 | 0 | 0 | 0 |
| Wu Xiaojun | Male | 50 | VP | 2017.02.01-2026.06.15 | 0 | 0 | 0 | 0 | 0 |
| Xu Lanfeng | Female | 55 | VP | 2021.04.01-2026.06.15 | 0 | 0 | 0 | 0 | 0 |
| Board Secretary | 2020.12.01-2026.06.15 | ||||||||
| Wu Jiehong | Female | 48 | VP | 2021.10.01-2026.06.15 | 0 | 0 | 0 | 0 | 0 |
| Sam lo | Male | 45 | VP | 2022.08.01-2026.06.15 | 0 | 0 | 0 | 0 | 0 |
| Zeng Fafa | Male | 46 | VP | 2022.08.01-2026.06.15 | 0 | 0 | 0 | 0 | 0 |
| Anderson Liu | Male | 52 | VP | 2022.11.25-2026.06.15 | 0 | 0 | 0 | 0 | 0 |
| Chen Lei | Male | 45 | VP | 2025.01.01-2026.06.15 | 0 | 0 | 0 | 0 | 0 |
| Jin Wenhui | Male | 57 | Ex-Director | 2019.06.28-2024.04.10 | 0 | 0 | 0 | 0 | 0 |
| Ex-EVP | 2015.01.01-2024.03.25 | ||||||||
| Liu Rangpo | Male | 51 | Ex-VP | 2021.04.01-2024.12.31 | 0 | 0 | 0 | 0 | 0 |
| Yang Shenghua | Male | 44 | Ex-VP | 2021.12.01-2024.12.31 | 0 | 0 | 0 | 0 | 0 |
| Total | — | — | - | — | 1240 | 0 | 0 | 0 | 1240 |
Whether there are any outgoing Directors and Supervisors and the dismissal ofsenior management personnel during the reporting period??Yes □No
Changes of Directors, Supervisors and Senior Management?Applicable □Not Applicable
| Name | Position | Status | Date | Reason |
| Zhong Junhua | Director | Elected | 2024.04.11 | Work need |
| Jin Wenhui | Ex- Director | Leave | 2024.04.10 | Work rotation. |
| Zhong Junhua | EVP | Employment | 2024.03.26 | Appointment due to work need. |
| Jin Wenhui | Ex-EVP | Leave | 2024.03.25 | Work rotation. |
| Chen Lei | VP | Employment | 2025.01.01 | Appointment due to work need. |
| Liu Rangpo | VP | Leave | 2024.12.31 | Work rotation. |
| Yang Shenghua | VP | Leave | 2024.12.31 | Work rotation. |
(2). Employment
The current Directors, Supervisors and Senior Executives’ professionalbackground, main working experience and main responsibilities in the Company:
Directors:
Mr. Qiu Tiangao, born in 1966, holds a Bachelor Degree in MechanicalManufacturing and a Master Degree in Industrial Engineering from HuazhongUniversity of Science and Technology, and is Chairman of JMCG, Chairman ofNanchange Jiangling Investment Co., Ltd., and Chairman of JMC. Mr. Qiu Tiangaoheld various positions including General Manager, Chairman of Nanchang Gear Co.,Ltd., Chairman of Jiangxi JMCG Gear Co., Ltd., Vice President of Jiangling MotorHoldings Co., Ltd., and Director & General Manager of JMCG.
Mr. Shengpo Wu, born in 1966, holds a Bachelor’s Degree in Thermal EnergyEngineering from Tsinghua University in Beijing and Master’s Degrees inMechanical Engineering and Information Management, respectively, from theUniversity of Nebraska-Lincoln and the Keller Graduate School of Management ofDeVry University, and is a Group Vice President of Ford, President and ChiefExecutive Officer of Ford China and International Markets Group, Chairman andPresident & Chief Executive Officer of Ford Motor (China) Ltd., Vice Chairman ofJMC, Vice Chairman of Changan Ford Automobile Co., Ltd., Chairman of FuqiTrading (Shanghai) Ltd, and Chairman of Ford Model e Technology (Nanjing) Co.,Ltd. Mr. Shengpo Wu held various positions including Vice President and RegionalGeneral Manager for Honeywell Process Solutions in Greater China, President andCEO of Osram’s Asia-Pacific business, President, Asia Pacific, and a member ofthe Global Executive Committee for Whirlpool Corporation.
Mr. Ryan Anderson, born in 1973, holds a Bachelor’s Degree in Economics fromUniversity of Chicago and a Master’s Degree in Business Administration fromUniversity of Michigan - Ann Arbor, and is Director and CFO of Ford Motor (China)Ltd., Director of JMC, Director of Changan Ford Automobile Co., Ltd. and FuqiTrading (Shanghai) Ltd., Director and President of Ford Model e Technology(Nanjing) Co., Ltd. Mr. Ryan Anderson has held various positions includingTreasurer of Ford Europe, Product Development Controller, Marketing & SalesController of Ford Asia Pacific, Director of Corporate Financial Planning andAnalysis for Ford Motor Company.
Mr. Yuan Mingxue, born in 1968, holds a Bachelor’s Degree in Auto Engineeringfrom Beijing Institute of Technology and an EMBA from China Europe InternationalBusiness School, and is Chief Expert of Chongqing Chang’an Automobile CompanyLimited, Senior consultant of chairman business team and Director of JMC. Mr.Yuan Mingxue has held various positions including Assistant to the President ofChang’an Auto and Executive Vice President of Jiangling Holdings LimitedCompany, Assistant to the President and Director of Strategy Planning Departmentfor Chang’an Auto, Assistant to the President and Director of OverseasDevelopment Department for Chang’an Auto, deputy Secretary of the PartyCommittee, Vice President, Executive Vice President, Chairman of the Labor Unionfor Chang’an Auto.
Ms. Xiong Chunying, born in 1964, senior engineer, holds a Bachelor Degree inAutomobile Engineering from Jiangsu Engineering College, a Master Degree inIndustrial Economics from Jiangxi University of Finance and Economics and anEMBA Degree from China Europe International Business School, and is Presidentand a Director of JMC. Ms. Xiong Chunying held various positions including Chiefof Quality Management Department, Assistant to the President, Vice President,Executive Vice President, Director for JMC.
Ms. Zhong Junhua, born in 1976, graduated in Financial Accounting from School ofManagement, Shijiazhuang Tiedao University, holds a Bachelor’s Degree inEconomics and a MBA Degree, Certified Public Accountant, Senior Accountant, andis a Director of JMCG, a Director of Nanchang Jiangling Investment Co., Ltd., anda Director & EVP of JMC, an Executive Director & President of Jiangling Motor SalesCo., Ltd., a Chairman of Jiangling Ford Automobile Technology (Shanghai) Co., Ltd.,in charge of marketing sales & service, and assist the President to manage theCompany. Ms. Zhong Junhua held various positions including the chief of Assetsand Finance Department for JMCG, Chairman of JMCG Finance Co., Ltd., GeneralManager, Chairman of Nanchang Jiangling Dingsheng Investment ManagementCo., Ltd., Vice General Manager of JMCG, Chairman of Jiangxi JMCG SpecialtyVehicles Co., Ltd., and Chairman of Jiangxi Jiangling Group Special Vehicle Co.,Ltd.
Mr. Yu Zhuoping, born in 1960, holds a Bachelor's Degree in MechanicalEngineering and a Master's degree in Mechanical Engineering from TongjiUniversity and a Doctor's Degree in Automotive Engineering from TsinghuaUniversity, and is Director of Collaborative Innovation Center for Intelligent EnergyVehicles of Tongji University, Chairman of Tongji Automobile Design and ResearchInstitute Co., Ltd., Chairman and General Manager of Shanghai Intelligent NewEnergy Vehicle Science and Technology Innovation Function Platform Co., Ltd., aCounsellor of Shanghai Municipal People's Government, a Deputy Chief Supervisorof China Society of Automotive Engineers, an Independent Director of JMC, anIndependent Director of Ningbo Shenglong Automotive Powertrain System Co., Ltd.,an Independent Director of Huayu Automotive Systems Co., Ltd. Mr. Yu Zhuopingheld various positions including Director of School of Mechanical Engineering,Executive Deputy Director of New Energy Vehicle Engineering Center, ExecutiveVice Dean, Dean of School of Automotive Studies for Tongji University, andAssistant to the President of Tongji University.
Mr. Chen Jiangfeng, born in 1979, holds a Bachelor’s Degree and Master’s Degreein Law from International Law Department, Foreign Affairs College, and is SeniorDeputy General Counsel & Executive Director of Gilead (Shanghai) PharmaceuticalTechnology Co., and an Independent Director of JMC. Mr. Chen Jiangfeng has heldvarious positions including Legal Counsel of Ford Motor (China) Ltd., Legal Counselof Ford Motor Research & Engineering (Nanjing) Co., Ltd./ Chang’an Ford MazdaAutomobile Corporation, Ltd., Nanjing Company/Chang’an Ford Mazda EngineCompany, Ltd., Senior Legal Counsel & Compliance Officer of Ford Asia Pacific &Africa, Senior Legal Counsel of BMW China Automotive Trading Ltd., and Memberof China Country Council, Head of legal, Director, Merck Healthcare China.
Ms. Wang Yue, born in 1978, holds a Bachelor’s Degree in Accountancy fromHenan University, a Master’s Degree in Accountancy from Zhongnan University of
Economics and Law, and a Doctor’s Degree in Accountancy from ShanghaiUniversity of Financial and Economics, and is a Professor of School of Accountancyfor Shanghai University of Financial and Economics, an Independent Director ofJMC, and an Independent Director of Shanghai Chemspec Corporation. Ms. WangYue has served as Research Assistant at The Hong Kong Polytechnic Universityand China Europe International School, and during 2012~2013, served as VisitingScholar at Zimmerman Center for University of Illinois at Urbana-Champaign.
Supervisors:
Mr. Xiao Hu, born in 1968, holds a Bachelor’s Degree in Radio from InformationScience & Electronic Engineering Department of Zhejiang University, and is adeputy Commissioner for Management for JMCG, and Chief Supervisor of JMC. Mr.Xiao Hu has served as a cadre in the General Office of the Nanchang MunicipalPeople's Government, Deputy Director of the Office of the Working Committee ofthe Nanchang Hi-tech Industrial Development Zone, deputy director of the SoftwareIndustry Office of the Nanchang Hi-tech Industry Development Zone AdministrativeCommittee, Deputy Head of the Organization Department of the WorkingCommittee of Nanchang Hi-tech Industry Development Zone, Deputy Director of thePersonnel and Labor Bureau of the Nanchang Hi-tech Industry Development ZoneAdministrative Committee, Head of the Organization Department of the WorkingCommittee of Nanchang Hi-tech Industry Development Zone, the Director of thePersonnel Bureau of the Nanchang Hi-tech Industry Development ZoneAdministrative Committee, and is a member of the Standing Committee of the CPC,the secretary of Discipline Inspection Commission and Chairman of SupervisoryBoard for JMCG.
Mr. Zhang Yangyang, born in 1979, holds a LLB Degree in International Law fromChina Foreign Affairs University and a LLM Degree from the University of MichiganLaw School (Ann Arbor), is qualified to practice law in People’s Republic of Chinaand in the State of New York, the United States of America, and is currently serveas a Director, General Counsel & China Policy Group Lead of Ford Motor (China)Ltd., Principle of Beijing Branch for Ford Motor (China) Ltd., a Director of ChanganFord Automobile Co., Ltd., a Supervisory of Ford Model e Technology (Nanjing) Co.,Ltd., and a Supervisor of JMC. Mr. Zhang Yangyang previously assumed a seriesof legal related positions within Ford including Managing Counsel for Ford Chinaand ASEAN region, Senior Counsel for Ford China Operations, etc.
Mr. Zhang Jian, born in 1969, holds a College Degree in Secretarial Professionalfrom North China University of Technology, and is a deputy Commissioner forManagement for JMCG, Chairman of Supervisor Board of Nanchang JianglingInvestment Co., Ltd., and a Supervisor of JMC. Mr. Zhang Jian held variouspositions including Secretary of Chairman and Deputy Director of Office for JMC,Director of Office, Director of Communist Party Office, Chairman of JMCG LaborUnion, Chief of Publicity Department for JMCG, Assistant to General Manager ofJMCG, and Senior Vice Chairman of JMCG Labor Union.
Mr. Ma Jian, born in 1975, holds a College Degree in Mechanical & ElectricalEngineering from Nanchang University of Aeronautical Technology, a MasterDegree in Mechanical Engineering from Huazhong University of Science andTechnology, and is a Supervisor and Chief of Manufacturing Department for JMC.Mr. Ma Jian held various positions including Lead Engineer, Assistant to the Chief,
Deputy Chief of Manufacturing Department for JMC, Director of Nanchang factoryfor Getrag Powertrain (Jiangxi) Co. Ltd., and Director of Nanchang Factory andDirector of DCT Factory for Magna Powertrain (Jiangxi) Co. Ltd.
Ms. Li Yanling, born in 1977, holds a College Degree in Industrial and Trade Englishfrom Nanchang University of Aeronautical Technology, a Bachelor Degree inEnglish from Jiangxi Normal University, and is a Supervisor and Deputy Chief ofPublic Relationship Department for JMC. Ms. Li Yanling held various positionsincluding Assistant to Ford Quality Expert of Quality Control Department, Assistantto Ford Expert of Public Relationship and Legal Affairs Department, ExecutiveAssistant to President, Chief of Translation Office, and Deputy Chief of PublicRelationship Department for JMC.
Senior management:
Ms. Xiong Chunying, please refer to the part of Directors for her resume.
Ms. Zhong Junhua, please refer to the part of Directors for her resume.
Mr. Ding Wenming, born in 1972, holds a Bachelor’s Degree in Automobile Exertionfrom Wuhan University of Technology, and is an Executive Vice President of JMC,in charge of the Company's product research and development. Mr. Ding Wenmingheld various positions including Deputy Chief of Product Development Center, Chiefof Product Planning & Program Management Department, and Assistant to thePresident for JMC, Vice President of JMC.
Mr. Joey Zhu, born in 1982, holds a Bachelor’s Degree in Accounting from NanjingUniversity and a Master’s Degree in Financial Engineering from NanyangTechnological University, and is CFO of JMC. Mr. Joey Zhu held various positionsincluding PD Profit Planning Manager, Profit Analysis Manager, Admin & ITController, and PD Finance Controller for Ford Asia & Pacific, Deputy CFO of CEVT,Sweden, Finance Controller of Byton NEV Company, Senior Business DevelopmentManager, CFO of BEV Division, and BEV Strategic Partnership DevelopmentDirector for Ford China.
Mr Eric Hermann, born in 1964, holds a Bachelor’s Degree in EngineeringMechanical and a Master’s Degree in Engineering Mechanical from University ofMichigan, and is a Vice President of JMC, in charge of the Company's productresearch and development. Mr. Eric Hermann held various positions in Ford MotorCompany including Light Truck Exhaust Design Engineer, Vehicle NVH Supervisor,VE Launch Leader, Exhaust, AIS & Clutch Supervisor, AIS, Cooling, Exhaust & CAEManager, BoF Cooling & Mounts Manager, Unibody Exhaust & AIS Manager, andGlobal AIS Manager, as well as the Director of Powertrain Engineering Departmentand Assistant President for JMC.
Mr. Wu Xiaojun, born in 1974, holds an Automobile Design Bachelor’s Degree fromWuhan University of Technology and a MBA from Jiangxi University of Finance andEconomics, and is a Vice President of JMC, CEO of New Energy Division for JMC,Executive Director and General Manager of Jiangling Heavy Vehicle Co., Ltd., incharge of the new energy business of commercial vehicles for the Company. Mr.Wu Xiaojun held various positions including Chief of Quality Department, Assistant
to the President for JMC, and Executive Deputy General Manager of JMC HeavyDuty Vehicle Co., Ltd.
Ms. Xu Lanfeng, born in 1969, holds a Bachelor’s Degree in Forging Technologyand Equipment from Jiangxi Industry University and a MBA from University ofInternational Business and Economics, and is a Vice President and the BoardSecretary of JMC, in charge of the Company’s human resources and relevant dutiesof Board Secretary. Ms. Xu Lanfeng held various positions in JMC including DeputyPlant Manager of Framing Plant, Deputy Chief, Chief of Manufacture Departmentand Assistant to the President for JMC.
Ms. Wu Jiehong, born in 1976, holds a Bachelor’s Degree in Finance Managementfrom Nanchang University and a MBA from Jiangxi University of Finance andEconomics, and is a Vice President of JMC, in charge of the strategic developmentof the Company and assist the CFO to support the financial work. Ms. Wu Jiehongheld various positions including Assistant to the Chief of Financial Department,Chief of Internal Audit Office, and Chief of Financial Department for JMC, FinanceManager for Ford APA, Chief of Planning Department, and Assistant to thePresident for JMC.
Mr. Sam Lo, born in 1979, holds a Bachelor's Degree in Mechanical Engineeringfrom National Taiwan University of S&T, China, a Master's degree in MechanicalEngineering from National Taiwan University, China, and is a Vice President of JMC,in charge of manufacturing business of the Company. Mr. Sam Lo held variouspositions including Welding Area Manufacturing Engineer, Craft Engineer,Production Superintendent and ME Manager of Ford Lio Ho Motor Company,VOME Implementation Body Manager and Final Assembly Manager of Ford Asia &Pacific, Body Area Manager Advisor of Changan Ford Motor Co., Ltd. Harbin Branch,Plant Launch Manager and Plant Manager of Changan Ford Motor Co., Ltd.Hangzhou Branch.
Mr. Zeng Fafa, born in 1978, holds a Bachelor's Degree in Automotive Engineeringfrom Nanchang University, China, and is a Vice President of JMC, in charge ofmanufacturing business. Mr. Zeng Fafa held various positions including DeputyDirector of Quality Control Department, Director of New Model Program Department,Director of Quality Control Department, Director of Quality Control & New ModelProgram Department, Director of Manufacture Department, and an Assistant to thePresident for JMC.
Mr. Anderson Liu, born in 1972, holds a Bachelor’s Degree in Liberal Arts-Psychology from National Taiwan University, China, a Master’s Degree in LiberalArts-Psychology from National Chengchi University, China, and a MBA Degree fromUniversity of Pittsburgh, USA, is a Vice President of JMC and General Manager ofJiangling Ford Motor Automobile (Shanghai) Co., Ltd. Mr. Anderson Liu held variouspositions including Financial Analyst, E-Commerce Manager, Research Manager,Marketing Manager for FLH, Sr. Marketing Manager, VP of VW Branch Operation,VP of MS for VW Swire, Sales Director, MS Director for FLH, General Manager ofDealer Network Development and Consumer & Retail Experience for Lincoln China,and Executive Vice General Manager of Jiangling Motor Sales Co., Ltd.
Mr. Chen Lei, born in 1979, holds a Bachelor's degree in Electrical Automation fromJiangsu University of Science and Technology and an MBA degree from NanjingUniversity of Aeronautics and Astronautics, is a Vice President of JMC, in charge ofprocurement. Mr. Chen Lei has served as the Director of Supplier TechnicalAssistance (STA) and Electrified Propulsion Engineering (EPE) Supply Chain forFord China, EPE Supply Chain Director for Ford China’s EV Business, STA Directorfor Ford China, STA Director for Changan Ford, and the Senior Manager ofElectrical STA for Ford Asia Pacific.
Positions at the shareholder entities?Applicable □Not Applicable
Positions in other entities?Applicable □Not Applicable
| Name | Shareholder Entity | Title | Term of Office | Compensation Paid by Shareholder Entity (Y/N) | |
| Qiu Tiangao | JIC | Chairman | 2019.05.28 | N | |
| Shengpo Wu | Ford | Group Vice President | 2023.03.01 | Y | |
| President and CEO of Ford China and International Markets Group | 2025.02.06 | ||||
| Ryan Anderson | Ford | CFO, Ford China | 2021.06.01 | Y | |
| Yuan Mingxue | JIC | Director | 2019.05.28 | N | |
| Zhong Junhua | JIC | Director | 2019.05.28 | N | |
| Zhang Jian | JIC | Chief supervisor | 2019.05.28 | N | |
| Description of the positions in the shareholder entities | None. | ||||
Name
| Name | Entity | Title | Compensation Paid by Other Entities (Y/N) |
| Qiu Tiangao | JMCG | Chairman | Y |
| Qiu Tiangao | Jiangxi ISUZU Co., Ltd. | Chairman | N |
| Qiu Tiangao | JMCG New Energy Vehicle Co., Ltd. | Chairman | N |
| Qiu Tiangao | Nanchang Jiangling Investment Co. Ltd. | Chairman | N |
| Shengpo Wu | Ford Motor (China) Ltd. | Chairman, President and CEO | N |
| Shengpo Wu | Lincoln Motor Sales Service (Shanghai) Co., Ltd. | Chairman | N |
| Shengpo Wu | Changan Ford Automobile Co., Ltd. | Vice Chairman | N |
| Shengpo Wu | Ford Technology (China) Holding, Inc. | Chairman | N |
| Shengpo Wu | Ford Model e Technology (Nanjing) Co., Ltd. | Chairman | N |
| Shengpo Wu | Fuqi Trading (Shanghai) Ltd. | Chairman | N |
| Ryan Anderson | Ford Motor (China) Ltd. | Director, Chief Financial Officer | N |
| Ryan Anderson | Chang'an Ford Automobile Co., Ltd. | Director | N |
| Ryan Anderson | Fuqi Trading (Shanghai) Ltd. | Director | N |
| Ryan Anderson | Lincoln Motor Sales Service (Shanghai) Co., Ltd. | Director | N |
| Ryan Anderson | Ford Model e Technology (Nanjing) Co., Ltd. | Chairman, President, Head of Power Technology branch | N |
| Ryan Anderson | Ford Technology (China) Holding, Inc. | Director | N |
| Yuan Mingxue | Chongqing Chang'an Automobile Company Limited | Chief Expert and Senior Consultant of Chairman Business Team | Y |
| Zhong Junhua | JMCG | Director | N |
| Zhong Junhua | Nanchang Jiangling Investment Co. Ltd. | Director | N |
| Zhong Junhua | Jiangling Motor Sales Co., Ltd. | Executive Director & General Manager | N |
| Zhong Junhua | Jiangling Ford Automobile Technology (Shanghai) Co., Ltd. | Chairman | N |
| Yu Zhuoping | Collaborative Innovation Center for Intelligent Energy Vehicles of Tongji University | Director | N |
| Yu Zhuoping | Tongji Automobile Design and Research Institute Co., Ltd. | Chairman | N |
| Yu Zhuoping | Shanghai Intelligent New Energy Vehicle Science and Technology Innovation Function Platform Co., Ltd. | Chairman & President | N |
| Yu Zhuoping | Huayu Automotive Systems Co., Ltd. | Independent Director | Y |
| Yu Zhuoping | Ningbo Shenglong Automotive Powertrain System Co., Ltd. | Independent Director | Y |
| Yu Zhuoping | Shanghai Municipal People's Government | Counsellor | N |
| Yu Zhuoping | China Society of Automotive Engineers | Deputy Chief Supervisor | N |
| Chen Jiangfeng | Gilead (Shanghai) Pharmaceutical Technology Co., Ltd. | Executive Director, Senior Deputy General Counsel | Y |
| Wang Yue | Shanghai University of Finance and Economics | Professor | Y |
| Wang Yue | Shanghai Chemspec Corporation | Independent Director | Y |
| Wang Yue | Shanghai Tiluo Medical Equipment Co., Ltd. | Independent Director | Y |
| Xiao Hu | JMCG | Deputy Commissioner for Management | Y |
| Xiao Hu | JMCG Jingma Motors Co., Ltd. | Supervisor | N |
| Xiao Hu | Jiangxi Jiangling Group Special Vehicle Co., Ltd. | Supervisor | N |
| Xiao Hu | Jiangxi Jiangling Chassis Co., Ltd. | Supervisor | N |
| Xiao Hu | Jiangling Dingsheng Investment Co., Ltd. | Supervisor | N |
| Xiao Hu | Jiangxi Jiangling Real Estate Co., Ltd. | Chairman of Supervisory Board | N |
| Zhang Yangyang | Ford Motor (China) Ltd. | Director, General Counsel & China Policy Group Lead, Principal of Beijing Branch | Y |
| Zhang Yangyang | Changan Ford Automobile Co., Ltd. | Director | N |
| Zhang Yangyang | Ford Motor Research & Engineering (Nanjing) Co., Ltd. | Supervisor | N |
| Zhang Yangyang | Ford Motor Research & Testing (Nanjing) Co. Ltd. | Supervisor | N |
| Zhang Yangyang | Fuqi Trading (Shanghai) Ltd. | Supervisor | N |
| Zhang Yangyang | Ford Model e Technology (Nanjing) Co., Ltd. | Supervisor | N |
| Zhang Yangyang | Ford Model e Automobile Sales (Nanjing) Co., Ltd. | Supervisor | N |
| Zhang Yangyang | Lincoln Motor Sales Service (Shanghai) Co., Ltd. | Supervisor | N |
| Zhang Yangyang | Jiangling Ford Automobile Technology (Shanghai) Co., Ltd | Supervisor | N |
| Zhang Yangyang | Ford Technology (China) Holding, Inc. | Director | N |
| Zhang Jian | JMCG | Deputy Commissioner for Management | Y |
| Zhang Jian | Nanchang Jiangling Investment Co. Ltd. | Chairman of Supervisory Board | N |
| Zhang Jian | JMCG New Energy Automobile Co. Ltd. | Supervisor | N |
| Zhang Jian | Jiangxi Jiangling Special-Purpose Vehicle Co., Ltd. | Supervisor | N |
Penalties from securities regulator to the present and resigned Directors,Supervisors and Senior Executives in the recently three years
□Applicable ?Not Applicable
(3). Compensation of Directors, Supervisors and Senior ExecutivesDecision-making procedure, determination of basis, and actual payment regardingthe compensation of the Directors, Supervisors and Senior Executives
Directors and Supervisors who did not concurrently hold other managementpositions in JMC were not paid by JMC. Director Qiu Tiangao, Supervisor Xiao Huand Supervisor Zhang Jian were paid by JMCG. Director Shengpo Wu and DirectorRyan Anderson were paid by Ford. Supervisor Zhang Yangyang was paid by Ford
| Zhang Jian | Jiangxi JMCG Specialty Vehicles Co., Ltd. | Supervisor | N |
| Zhang Jian | Nanchang Gear Co., Ltd. | Chief Supervisor | N |
| Zhang Jian | JMCG Finance Co., Ltd. | Chief Supervisor | N |
| Zhang Jian | Jiangxi Lingrui Renewable Resources Development Co., Ltd. | Supervisor | N |
| Zhang Jian | Jiangxi Jiangling Real Estate Co.,Ltd | Supervisor | N |
| Zhang Jian | Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. | Chief Supervisor | N |
| Zhang Jian | Magna Powertrain (Jiangxi) Co. Ltd. | Supervisor | N |
| Zhang Jian | Jiangxi Yizhizhixing Automobile Operation Service Co., Ltd. | Supervisor | N |
| Ding Wenming | JMCG | Director | N |
| JoeyZhu | Jiangling Ford Automobile Technology (Shanghai) Co., Ltd. | Director | N |
| JoeyZhu | Hanon Systems (Nanchang) Co., Ltd. | Director | N |
| JoeyZhu | Jiangling Motor Sales Co., Ltd. | Supervisor | N |
| Wu Xiaojun | JMC Heavy Duty Vehicle Co., Ltd. | Executive Director, General Manger | N |
| Wu Xiaojun | Shenzhen Fujiang New Energy Automobile Sales Co., Ltd. | Executive Director | N |
| Wu Xiaojun | Guangzhou Fujiang New Energy Automobile Sales Co., Ltd. | Executive Director | N |
| Wu Xiaojun | Shanxi Yunnei Power Co., Ltd. | Director | N |
| Wu Jiehong | JMC Heavy Duty Vehicle Co., Ltd. | Supervisor | N |
| Wu Jiehong | Shanxi Yunnei Power Co., Ltd. | Director | N |
| Wu Jiehong | Shenzhen Fujiang New Energy Automobile Sales Co., Ltd. | Supervisor | N |
| Anderson Liu | Jiangling Ford Automobile Technology (Shanghai) Co., Ltd. | General Manager | N |
| Description of the positions in other entities | None | ||
Motor (China) Ltd., Director Yuan Mingxue were paid by Chongqing Chang’anAutomobile Co., Ltd.
(a) In accordance with JMC Executive Compensation Scheme approved by theBoard of Directors, the compensation for the Chinese-side senior managementconsists of base salary and floating bonus. The base salary level is determinedaccording the grade of the senior executives, and the floating bones shall be paidaccording to the operating performance. 70% of the bonus will be distributed in thisyear, and the rest 30% will be distributed in the next three years. In 2024, theCompany paid annual compensation before tax of approximately RMB 1,030thousand to EVP Zhong Junhua, paid approximately RMB 2,090 thousand to EVPDing Wenmin, paid approximately RMB 1,640 thousand to VP Wu Xiaojun, paidapproximately RMB 1,640 thousand to VP & Board Secretary Xu Lanfeng, paidapproximately RMB 1,690 thousand to VP Wu Jiehong, paid approximately RMB1,560 thousand to VP Zeng Fafa, paid approximately RMB 1,070 thousand toEmployee-representative Supervisor Ma Jian, paid approximately RMB 560thousand to Employee-representative Supervisor Li Yanling, and paid annualcompensation before tax of approximately RMB 980 thousand to Ex-Director & Ex-EVP Jin Wenhui, paid approximately RMB 1,610 thousand to Ex-VP Liu Rangpo.The total compensation before tax paid by JMC for the aforesaid persons was aboutRMB 13.87 million in the reporting period, including the long-term incentive of RMB1,000 thousand deferred from the previous years.
(b)JMC pays annual compensation for Ford-seconded senior managementpersonnel to Ford in accordance with the Personnel Secondment Agreement signedbetween JMC and Ford & Ford Affiliates. In 2024, the Company should payapproximately RMB 1,100 thousand to Ford for Director and President XiongChunying, pay approximately RMB 1,100 thousand for CFO Joey Zhu, pay US$ 500thousand for VP Erik Hermann, pay RMB 1,100 thousand for VP Sam Lo, pay RMB4,210 thousand for VP Anderson Liu, and paid annual compensation before tax ofapproximately RMB 1,100 thousand to Ex-VP Yang Shenghua. These paymentsmade by JMC to Ford do not reflect the actual salaries earned by Ford-secondedsenior management.
(c) Pursuant to the resolutions of JMC 2011 Annual Shareholder’s Meeting, theannual compensation for the JMC Independent Directors is RMB 100 thousand perperson, and JMC bears their travel-related expenses associated with JMC’sbusiness. In 2024, the Company paid annual compensation before tax of RMB 100thousand to Independent Director Yu Zhuoping, Independent Director ChenJiangfeng, and Independent Director Wang Yue respectively.
Table on compensation of the Directors, Supervisors and Senior Executives in thereporting period
Unit: RMB’ 000
| Name | Gender | Age | Position | Present (Y/N) | Compensation Before Tax Paid by JMC | Compensation Paid by Related Party (Y/N) |
| Qiu Tiangao | Male | 58 | Chairman | Y | 0 | Y |
| Shengpo Wu | Male | 58 | Vice Chairman | Y | 0 | Y |
| Ryan Anderson | Male | 51 | Director | Y | 0 | Y |
*See the instructions in the previous paragraph.
6. Directors’ Performance of Duty
(1) Introduction to the Board of Directors
| Yuan Mingxue | Male | 56 | Director | Y | 0 | Y |
| Xiong Chunying | Female | 60 | Director & President | Y | * | Y |
| Zhong Junhua | Female | 48 | Director & EVP | Y | 1,030 | N |
| Yu Zhuoping | Male | 64 | Independent Director | Y | 100 | N |
| Chen Jiangfeng | Male | 45 | Independent Director | Y | 100 | N |
| Wang Yue | Female | 46 | Independent Director | Y | 100 | N |
| Xiao Hu | Male | 56 | Chief supervisor | Y | 0 | Y |
| Zhang Yangyang | Male | 45 | Supervisor | Y | 0 | Y |
| Zhang Jian | Male | 55 | Supervisor | Y | 0 | Y |
| Ma Jian | Male | 49 | Supervisor | Y | 1,070 | N |
| Li Yanling | Female | 47 | Supervisor | Y | 560 | N |
| Ding Wenmin | Male | 52 | EVP | Y | 2,090 | N |
| Joey Zhu | Male | 42 | CFO | Y | * | Y |
| Erik Hermann | Male | 60 | VP | Y | * | Y |
| Wu Xiaojun | Male | 50 | VP | Y | 1,640 | N |
| Xu Lanfeng | Female | 55 | VP &Board Secretary | Y | 1,640 | N |
| Wu Jiehong | Female | 48 | VP | Y | 1,690 | N |
| Sam lo | Male | 45 | VP | Y | * | Y |
| Zeng Fafa | Male | 46 | VP | Y | 1,560 | N |
| Anderson Liu | Male | 52 | VP | Y | * | Y |
| 45 | 0 | Y | ||||
| Jin Wenhui | Male | 57 | EX-Director & Ex-EVP | N | 980 | N |
| Liu Rangpo | Male | 51 | Ex-VP | N | 1,610 | N |
| Yang Shenghua | Male | 44 | Ex-VP | N | * | Y |
| Total | - | - | - | - | 14,170 | - |
Meeting
| Meeting | Convening Date | Disclosure Date | Meeting Resolutions |
| Paper Meeting | 2024.01.10-01.18 | 2024.01.20 | 1. Agreed the proposal on Providing Financial Assistance to Jiangling Ford Motor Technology (Shanghai) Co, Ltd., a holding subsidiary of the Company, and submitted it to the Company’s Shareholders' Meeting for approval; 2. Approved the 2023 Assets Impairment Provisions & Write-off proposal of the Company; 3. Approved the Notice on Holding 2024 First Special Shareholders’ Meeting of JMC. |
| Fourth Session of the Eleventh Board | 2024.03.26 | 2024.03.27 | 1. Approved the proposal on retaining of PricewaterhouseCoopers Zhong |
| Tian LLP as external auditor and C-SOX auditor of the Company for the year 2025-2027 and agreed to submit this proposal to the Shareholders’ Meeting for approval; 2. Approved JMC Independent Director Working System and JMC Work Rules of Special Meetings of Independent Directors； 3. Approved the relevant personnel proposals; 4. Approved the Notice on Holding 2024 Second Special Shareholders’ Meeting of JMC. | |||
| Paper Meeting | 2024.03.21- 03.28 | 2024.03.30 | 1. Approved to submit to the 2023 Annual Shareholders’ Meeting the proposal on Year 2023 profit distribution; 2. Approved the 2023 Annual Report of the Company and the Extracts from such Annual Report； 3. Approved the 2023 Work Report of the Board of Directors of the Company; 4. Approved the 2023 Financial Statements of the Company； 5、Approved the 2023 Internal Control Self-assessment Report of the Company; 6. Approved the 2023 Environmental, Social and Governance (ESG) Report of the Company; 7. Approved JMCG Finance Company Continuous Risk Assessment Report; 8. Approved the Report of JMC on the Evaluation of the Auditor’s Performance in 2023 and the Performance of the Audit Committee’s Supervision Responsibilities; 9. Approved the Special Assessment Opinions of the Board of Directors on Independence of Independent Directors of the Company. |
| Paper Meeting | 2024.04.18-04.22 | 2024.04.24 | 1. Approved the Company’s 2024 First Quarter Report. |
| Paper Meeting | 2024.05.24- 05.31 | 2024.06.04 | 1. Approved the Notice on Holding 2023 Annual Shareholders’ Meeting of JMC. |
| Fifth Session of the Eleventh Board | 2024.06.25 | No matters that should be disclosed are involved. | |
| Paper Meeting | 2024.0725- 08.02 | No matters that should be disclosed are involved. |
(2) Particulars about the Directors’ attendance to the Board meeting and theShareholders’ Meeting
Statements on failure to attend Board meetings in person for two consecutiveoccasionsNone.
(3) Dissent from Directors
| Paper Meeting | 2024.08.20- 08.28 | 2024.08.30 | 1. Approved JMC 2024 Half-year Report and the Extracts from such Report; 2. Approved JMCG Finance Company Continuous Risk Assessment Report. |
| Sixth Session of the Eleventh Board | 2024.09.24 | 2024.09.25 | 1. Consideration and adoption of the Proposal on the Adjustment of the Company’s External Auditor and C-SOX Auditor Arrangements. |
| Paper Meeting | 2024.10.12- 10.14 | 2024.10.15 | 1. Agreed the Proposal on Change the Accounting Firm and agreed to submit it to the shareholders' meeting for approval; 2. Approved the Notice on Holding 2024 Third Special Shareholders’ Meeting of JMC. |
| Paper Meeting | 2024.10.17 -10.22 | 2024.10.24 | 1. Approved the Company’s 2024 Third Quarter Report. |
| Seventh Session of the Eleventh Board | 2024.12.10 | 2024.12.12 | 1. Approved the 2024 Routine Related Party Transaction Forecast Proposal; 2. Approved the relevant personnel proposals. |
| Paper Meeting | 2024.12.11 | No matters that should be disclosed are involved. |
Name
| Name | Required Board Attendance | Presence in Person | Presence in form of Paper Meeting | Presence by Proxy | Absence | Not to present in person in two consecutive meetings (Y/N) | Presence at the Shareholders’ Meeting |
| Qiu Tiangao | 13 | 4 | 9 | 0 | 0 | N | 3 |
| Shengpo Wu | 13 | 3 | 9 | 1 | 0 | N | 2 |
| Ryan Anderson | 13 | 4 | 9 | 0 | 0 | N | 1 |
| Yuan Mingxue | 13 | 3 | 9 | 1 | 0 | N | 1 |
| Xiong Chunying | 13 | 4 | 9 | 0 | 0 | N | 3 |
| Zhong Junhua | 10 | 3 | 7 | 0 | 0 | N | 1 |
| Yu Zhuoping | 13 | 4 | 9 | 0 | 0 | N | 3 |
| Chen Jiangfeng | 13 | 4 | 9 | 0 | 0 | N | 3 |
| Wang Yue | 13 | 4 | 9 | 0 | 0 | N | 3 |
| Jin Wenhui | 3 | 1 | 2 | 0 | 0 | N | 2 |
□Yes ?No
The Directors of the Company had no dissent to the relevant proposals of theCompany in the reporting period.
(4) Other introduction to Directors’ Performance of Duty
Whether the Directors' suggestions on the Company have been adopted?Yes □NoStatement of the adoption or not of the Directors’ suggestions on the CompanyAll the Directors of the Company fulfill their duties diligently, actively pay attentionto the Company’s management information, financial situation, and major issues,make thoroughly study and discussion on the proposals submitted to the Board ofDirectors and put forward their respective opinions, make recommendations for theCompany's business development, fully consider the interests and demands ofminority shareholders while making decisions, which strengthens the scientific ofthe Board’s decision, and promotes the sustainable, stable and healthydevelopment of the Company’s operation.
7. Situation of the Committees under the Board of Directors in the ReportingPeriod
(1) Audit Committee
Members:
Chairman: Wang YueMember: Ryan Anderson, Yuan Mingxue, Yu Zhuoping, Chen JiangfengSecretary: Joey Zhu
The number of meetings held in the reporting period: ten.
The first Audit Committee meeting of 2024 was convened on January 16,2024. Meeting contents:
Reviewed the 2023 Annual Financial and Accounting Statements of JMC, andwould review the Company's financial and accounting statements again after theauditor forms the preliminary audit opinions.
Important comments and suggestions made: None.
Other performance of duties: None.
Details of the objection to matter: None.
The second Audit Committee meeting of 2024 was convened on February 29,2024. Meeting contents:
Reviewed the Company's financial report after the certified auditor issued itsinitial audit opinions.
Important comments and suggestions made: None.
Other performance of duties: None.
Details of the objection to matters: None.
The third Audit Committee meeting of 2024 was convened on March 15,2024. Meeting contents:
1. Reviewed the PwC Report;
2. Reviewed the 2023 Financial Report audited by the auditor and agreed tosubmit it to the Board of Directors for approval;
3. Reviewed the Evaluation of the Auditor’s Performance in 2023 and thePerformance of the Audit Committee’s Supervision Responsibilities;
4. Reviewed the 2023 Internal Control Self-Evaluation Report and agreed tosubmit it to the Board of Directors for approval;
5. Reviewed the Audit Committee Performance Report and agreed to submitit to the Board of Directors for approval;
6. Agreed to appoint PwC as external auditor from 2025 to 2027 and tosubmit this proposal to Board of Directors and Shareholder’s meeting for approval.
Important comments and suggestions made: None.
Other performance of duties: None.
Details of the objection to matters: None.
The forth Audit Committee meeting of 2024 was convened on April 16, 2024.Meeting contents:
Reviewed the First Quarter FY2024 Financial Accounting Statements andagreed to submit this proposal to Board of Directors for approval.
Important comments and suggestions made: None
Other performance of duties: None.
Details of the objection to matters: None.
The fifth Audit Committee meeting of 2024 was convened on June 25, 2024.Meeting contents:
1.Reviewed the Internal Control Work Report for the first half of 2024 and theWork Plan for the second half of 2024;
2. Reviewed the PwC Report.
Important comments and suggestions made: None
Other performance of duties: None.
Details of the objection to matters: None.
The sixth Audit Committee meeting of 2024 was convened on August 13,2024. Meeting contents:
Reviewed the First Half FY2024 Financial Accounting Statements and agreedto submit this proposal to Board of Directors for approval.
Important comments and suggestions made: None
Other performance of duties: None.
Details of the objection to matters: None.
The seventh Audit Committee meeting of 2024 was convened on September20, 2024. Meeting contents:
Agreed to dismiss PWC as external auditor, reappoint the Company's financialreporting auditor and C-SOX auditor for the years 2024 to 2026, and to submit thisproposal to BOD for approval.
Important comments and suggestions made: None
Other performance of duties: None.
Details of the objection to matters: None.
The eighth Audit Committee meeting of 2024 was convened on October 11,2024. Meeting contents:
Agreed selecting Ernst & Young Huaming as external auditor and C-sox auditor fromyear 2024 to 2026 and submit this proposal to BOD and Shareholder’s meeting forapproval.
Important comments and suggestions made: NoneOther performance of duties: None.Details of the objection to matters: None.
The ninth Audit Committee meeting of 2024 was convened on October 14,2024. Meeting contents:
Reviewed the First Quarter FY2024 Financial Accounting Statements andagreed to submit this proposal to Board of Directors for approval.
Important comments and suggestions made: None
Other performance of duties: None.
Details of the objection to matters: None.
The tenth Audit Committee meeting of 2024 was convened on December 10,2024. Meeting contents:
1.Reviewed the Ernst & Young Report;
2.Reviewed the Year 2024 Assets Impairment Provision Report and agreed tosubmit it to the Board for approval;
3.Reviewed and approved the 2024 annual financial report audit timing plan;
4.Reviewed the 2024 Internal Control Work Report and approved the InternalAudit Work Plan for 2025.
Important comments and suggestions made: The Audit Committeerecommended the company pay more attention to the potential risks of therelevant business, as well as the internal controls of high-risk distributors andsuppliers.
Other performance of duties: None.
Details of the objection to matters: None.
(2) Compensation Committee
Members:
Chairman: Chen Jiangfeng
Member: Qiu Tiangao, Ryan Anderson, Yu Zhuoping, Wang Yue
Secretary: Xu Lanfeng
The number of meetings held in the reporting period: one.
A Compensation Committee meeting was convened on February 27, 2024.Meeting contents:
1. Reviewed and approved the Proposal on 2023 Year-end Bonus for theCompany’s senior executives;
2. Reviewed and approved the adjustment of the annual total cash incometarget of the Company’s senior executives in 2024;
3. Reviewed and approved the KPIs for the Company’s senior executives in2024;
5. Reviewed and approved the 2023 Due Diligence Report of theCompensation Committee.
Important comments and suggestions made: None.
Other performance of duties: None.
Details of the objection to matters: None.
(3) Strategy Committee
Members:
Chairman: Qiu TiangaoMember: Shengpo Wu, Ryan Anderson, Yuan Mingxue, Xiong Chunying,Zhong JunhuaSecretary: Wu Jiehong
The number of meetings held in the reporting period: one.
A Strategy Committee meeting was convened on December 20, 2024.Meeting contents:
1. The Company’s strategic review;
2. The Company’s Overseas Strategy.
Important comments and suggestions made: None.
Other performance of duties: None.
Details of the objection to matters: None.
8. Works of Supervisory Board
Risks found by the Supervisory Board in the reporting period
□Yes ?No
The Supervisory Board had no dissent on inspection items in the reporting period.
9. Employees
(1) Employees, Professional Structure and Educational Level
(2) Compensation Policy
JMC strictly abided by the relevant requirements of national labor laws andregulations, and provided safe and comfortable work places. The Company also
| Employees in parent company at the end of reporting period(person) | 11,313 |
| Employees in subsidiaries at the end of reporting period(person) | 240 |
| Total employees at the end of reporting period(person) | 11,553 |
| Total employees paid compensation (person) | 12,171 |
| Retired employees bore retirement benefits in parent company and its subsidiaries | 618 |
| Professional Structure | |
| Type | Employees (Person) |
| Production Worker | 6,926 |
| Sales Personnel | 703 |
| Technical Personnel | 3,141 |
| Finance Personnel | 143 |
| Administrative Staff | 640 |
| Total | 11,553 |
| Educational Level | |
| Type | Employees (Person) |
| Master degree and higher | 973 |
| Undergraduate degree | 3,559 |
| Polytechnic school degree | 1,402 |
| Below polytechnic school degree | 5,619 |
| Total | 11,553 |
established and improved the incentive system that can effectively help therealization of the Company’s strategy and targets, based on the characteristics ofthe business and talents. The Company promoted the multi-talent incentive systemwith orientation on value, ability and contribution, so as to accelerate the growth ofnew automobile talents. The Company also strengthened the connection betweenpersonal interests of core talents and the company's medium and long-termstrategic goals, thus driving the achievement of business objectives. At the sametime, the Company constantly improved employee welfare policies to meet thediversified individual needs of employees and improve the employees’ experienceand satisfaction.
(3) Training
In 2024, through conducting a comprehensive training needs survey, the Companyprovided employees with diverse and comprehensive training opportunities,establishing a differentiated talent development system. The Company encouragedand supported employees in continuous, efficient, and lifelong learning, fosteringmutual growth for both the organization and employees.
Regarding horizontal development, the Company implemented cross-departmentaland cross-functional training programs to promote multidimensional skillenhancement, strengthening team collaboration and innovation capabilities. Forvertical development, customized training programs were designed for employeesat different levels, supporting sustained growth opportunities throughout theircareers. Meanwhile, The Company deepened university-industry collaboration bypartnering with Tongji University for specialized high-level talent cultivationprograms, and jointly established postdoctoral workstations with institutions likeNanchang University. Through the "theory-practice" cultivation model, the Companyare building an industry-academia-research integrated innovation chain. TheCompany continued to advance the talent transformation project for new fourmodernization businesses, injecting innovative vitality into the enterprise.
(4) Labour outsourcing
□Applicable ?Not Applicable
10. Profit distribution and capital reserve conversion
Establishment, implementation or adjustment of profit distribution policy, esp. cashdividend distribution policy, regarding common stock during the reporting period?Applicable □Not ApplicableIn accordance with the requirements of laws, regulations and the Articles ofAssociation of the Company, the Company's profit distribution policy maintainscontinuity and stability, and the Company pays attention to the reasonable return toinvestors. The Company gives priority to cash dividend, and subject to theprovisions of laws, regulations and the Articles of Association of the Company, theBoard of Directors can put forward a mid-term or special profit distribution proposal.The Company's profit distribution policy is in line with the CSRC's guidance onencouraging cash dividends for listed companies.
| Special Explanation on Cash Dividend Policy | |
| Whether to comply with the requirements of the Articles of Association of JMC or resolution of the Shareholders’ Meeting (Y/N) | Y |
The Company made a profit during the reporting period and the profit of the parentcompany distributable to the common shareholders is positive, but a distributionplan of cash dividends for the common shares is not put forward
□Applicable ?Not Applicable
Proposal on Year 2024 Profit Distribution Plan or Capital Reserve Conversion?Applicable □Not Applicable
11. Implementation of Equity Incentive Plan, Employee Stock Ownership Plan andOther Employee Incentive Method
□Applicable ?Not Applicable
There was neither equity incentive plan or ESOP, nor other employee incentivemethod during the reporting period.
12. Internal control system construction and implementation during the reportingperiod
| Whether the standards and proportion of dividends on profit distribution are clear (Y/N) | Y |
| Whether the procedures are valid and legal (Y/N) | Y |
| Whether the Independent Director fulfil their duties (Y/N) | Y |
| Whether middle and small shareholders have opportunities to claim their appeals and their legal rights and interests are completely protected (Y/N) | Y |
| Whether the condition and procedure are reasonable and transparent when the cash dividend policy is being changed (Y/N) | Y |
Stock dividend (share) for every 10 shares
| Stock dividend (share) for every 10 shares | 0 |
| Cash Dividend (RMB) for every 10 shares (including tax) | 7.12 |
| Total share capital (share) | 863,214,000 |
| Total cash dividend distribution amounts (RMB) (including tax) | 614,608,368 |
| Amount of cash dividend (RMB) in other ways (e.g. repurchase of shares) | 0 |
| Total cash dividend amounts (RMB) (including other ways) | 614,608,368 |
| Distributable profit (RMB) | 9,179,333,271 |
| Total cash dividends (including other ways) as a proportion of total profit distribution | 100% |
| Cash dividend status | |
| If the development stage of the Company is not easy to distinguish but there are major fund expenditure arrangements, the minimum proportion of cash dividends in this profit distribution shall reach 20% when the profit distribution is carried out. | |
| Detailed description of profit distribution or capital reverse conversion proposal | |
| Proposal on year 2024 profit distribution: the Company plans to distribute a cash dividend of RMB 7.12 (including tax) for every 10 shares held. Based on the total share capital of 863,214,000 shares as of December 31, 2024, the total cash dividend distribution amounts shall be RMB 614,608,368. The cash dividend on B share shall be paid in Hong Kong Dollars and converted at the middle rate of the HK dollar’s exchange rate against RMB quoted by the People’s Bank of China on the first working day following the relevant resolution adopted by the Company’s Annual Shareholders’ Meeting. The Board decides not to convert the capital reserve to the share capital this time. The proposal is subject to the approval of the Company’s 2024 annual shareholders’ meeting. | |
(1) Internal control construction and implementation
According to the requirements of the Basic Standard for Enterprise Internal Control(C-SOX) along with its Application Guidelines and Internal Control Guidelines forPublic Companies listed on the Shenzhen Stock Exchange jointly issued by theMinistry of Finance and China Security Regulation Commission, the Company hasestablished a set of sound and effective internal control system, and at the sametime, combined with the internal and external environment, internal institutions andmanagement requirements, so as to make the internal control system designscientific, simple, applicable and effective operation.
The Company has reasonably planned the organizational structure, and establisheda control structure with the full participation of the Audit Committee, ExecutiveCommittee, senior management and business level under the leadership of theBoard of Directors. The Audit Committee has an audit department, which supervisesand evaluates the operation of the Company's internal control system throughinternal audit.
Through the operation, analysis and evaluation of the internal control system, theCompany has effectively prevented the risks in the operation and management, andpromoted the realization of the internal control objectives.
This year, the Company's internal control can cover the main aspects of theCompany's operation and management without major omissions; the units,businesses and matters and high-risk areas included in the evaluation scope coverthe main aspects of the Company's operation and management without majoromissions.
(2) Major defect of internal control in the reporting period
□Yes ?No
13.The Company's management control over the subsidiaries during the reportingperiod
□Applicable ?Not Applicable
During the reporting period, the Company has not purchased new subsidiaries.
14. Internal Control Self-Assessment Report or Internal Control Audit Report
(1) Internal Control Self-Assessment Report
| Issuance date | March 29, 2025 | |
| Index | www.cninfo.com.cn | |
| Total value of assets of the entities in scope counts as % of that disclosed in the consolidated financial statements | 100.00% | |
| Total value of operating revenue of the entities in scope counts as % of that disclosed in the consolidated financial statements | 100.00% | |
| Deficiency Determination Criteria | ||
| Type | Type | Type |
| Qualitative Criteria | Material Weakness: An error that changes the trend of results, changes profit to loss or loss to profit; Ineffective anti-fraud process | Material Weakness: Unscientific decision making process such as incorrect decisions that result in unsuccessful mergers and |
(2). Internal Control Audit Report
?Applicable □Not Applicable
| or any fraud involving senior management; Ineffective control over accounting policies; Ineffective oversight by the Audit Committee Significant Deficiency: Errors in management reporting systems or Corporate accounting records that could lead to incorrect management decisions; Actions inconsistent with Company values, policies, approval authorities and other Corporate guidelines that are likely to significantly impact cost, quality, customer satisfaction, reputation, or competitive advantage; Significant control issues in IT infrastructure or applications that creates significant risk to corporate assets or processes; Identification of fraud of a significant magnitude or theft that is significant in value Minor Deficiency: Any control deficiencies that do not meet the criteria for material or significant | acquisitions; Major regulatory compliance issues; Frequent media reports harmful to the Company’s reputation; A lack of control within key business processes or systematic breakdown of control policies; Material weakness identified in the self-assessment without any action plan implemented Significant Deficiency: a control deficiency, or combination of control deficiencies, that does not meet; The criteria for material weakness but deserves the concerns of the Audit Committee and the Board of Directors Minor Deficiency: Any control deficiencies that do not meet the criteria for material or significant | |
| Quantitative Criteria | Material Weakness: Misstatement in the Financial Report is more than 1% of the total assets or 1% of the annual sales revenue in the latest audited consolidated Financial Statements, the lower of the two indicators above Significant Deficiency: Misstatement in the Financial Report is more than 0.5% of the total assets or 0.5% of the annual sales revenue in the latest audited consolidated Financial Statements, the lower of the two indicators above Minor Deficiency: All the deficiencies that don’t meet the quantitative criteria for significant | Please refer to internal control deficiency over financial reporting for the criteria for non-financial reporting internal control. |
| Number of Material Weakness in financial report | 0 | |
| Number of Material Weakness in non-financial report | 0 | |
| Number of Significant Deficiency in financial report | 0 | |
| Number of Significant Deficiency in non-financial report | 0 | |
Opinions in the Internal Control Audit Report
| Opinions in the Internal Control Audit Report | |
| The comments in the Internal Control Audit Report issued by Ernst & Young Hua Ming LLP are as follows: On December 31, 2024, JMC maintained effective internal control of financial reporting in all major aspects in accordance with the Basic Code for Enterprise Internal Control and relevant provisions. | |
| Disclosure of Internal Control Audit Report | Disclosed |
| Issuance Date | March 29, 2025 |
Abnormal opinion issued by the accounting firm
□Yes ?No
Whether the Opinion issued by the accounting firm keeps the same with that ofself-assessment report made by the Board??Yes □No
15.Situation of Problem Rectification for the self-inspection of the special action forthe governance of listed companies
After the Company's self-inspection, the Company’s overall compliance operationwas found to be in order and no rectification was found.
| Index | www.cninfo.com.cn |
| Type of Opinion | Standard and unqualified opinions |
| Major Defect Regarding Non-financial Report or no | No |
Chapter V Environment and Social Responsibilities
1.Major Environmental issues
(1) Environmental protection
Whether the Company and affiliates is the key pollution discharge unit publishedby environmental protection administration??Yes □No
Environmental protection related policies and industry standards
| Issuing Authority | Regulations/Standards | Response Measures |
| Ministry of Ecology and Environment | Pollutant Discharge Permit Management Measures | Strictly implemented pollutant discharge permit requirements. |
| Ministry of Ecology and Environment | Technical Guidelines for Mobile Source Supervision and Verification in Key Industries | Integrated the logistics access control system with the environmental regulatory platform. |
| Jiangxi Provincial Department of Ecology and Environment | Jiangxi Province Ecological Environment Classification Law Enforcement and Supervision Measures | Strictly implemented in accordance with requirements. |
| Nanchang Municipal Ecology and Environment Bureau | Notice on Publishing the List of Key Enterprises for Cleaner Production Audits in 2024 | The Xiaolan 2000-acre site successfully passed the cleaner production audit and received a RMB 500,000 funding subsidy. |
| Nanchang Municipal Ecology and Environment Bureau | Notice on Issuing the "2024 List of Key Environmental Supervision Units in Nanchang" | Xiaolan Plant, Fushan Plant, and Cast Plant who are designated as key pollutant discharge units strictly implemented requirements. |
| Office of Nanchang Ecological Environment Protection Committee | Notice on Issuing the "Nanchang Low-Nitrogen Combustion Retrofit Work Plan for Gas (Oil) Boiler Facilities" | Planned completion of low-nitrogen combustion retrofits by 2025, with efforts to obtain 50% funding subsidies. |
Situation of administrative permit for environmental protectionIn 2024, the pollutant discharge permit renewal application for the Fushan Plant wasapproved, the Xiaolan Plant has successfully reapplied for its pollutant dischargepermit, and all other plant areas maintain valid permits.
In 2024, the technical upgrade project for the sub-frame welding line of SUV-relatedproducts at the frame facility has obtained environmental impact assessment (EIA)approval, and the new powder coating anti-corrosion line project for frames has alsoreceived EIA approval.
Industry emission standards and specifics of pollutant emissions involvedin production and business activities
| Name of company or subsidiary | JMC | JMC |
| Kind of principal pollutant and specific pollutant | Wastewater discharge pollutant | Exhaust emission pollutant |
| Name of principal pollutant and specific pollutant | COD, NH-N | SO2, NOx, NMHC |
| Mode of discharge | Continuous discharge | Continuous discharge |
| Number of discharge outlet | 5 | 150 |
| Distribution of discharge outlet | 1 in Fushan Site, 2 in Xiaolan Site, 1 in Cast Plant and 1 in Axle Plant | 38 in Fushan Site, 81 in Xiaolan Site, 28 in Cast Plant and 3 in Axle Plant |
| Discharge concentration | COD: 26.32-102.27mg/L; NH-N: 0.04-5.16mg/L | NOx: 3-175mg/m?; NMHC: Xiaolan Plant 10.05g/m2; Fushan Plant 5.09/m2; |
| Applicable standard for pollutant discharge | Gan EIA [2015] No. 144; Integrated Wastewater Discharge Standard (GB 8978-1996) | Emission Standards for Atmospheric Pollutants from Boilers (GB13271-2014); Volatile Organic Compounds Emission Standards - Part 5: Auto Manufacturing (DB36/1101.5-2019); Emission Standard of Air Pollutants for Foundry Industry (GB 39726—2020) |
| Total amount of discharge | COD: 40.97t; NH-N: 1.94t | NOx: 77.87t NMHC: Xiaolan Plant 205t, Fushan Plant 64t |
| Total amount of discharge audited | COD≤517.39t; NH-N≤24.795t | NOx≤95.59t NMHC≤1882.4t |
| Excessive discharge | Meet Standard | Meet Standard |
Treatment of pollutantsIn 2024, the Company formulated the Agile Project "VOCs Online MonitoringCompliance Rate Improvement Plan", guiding plant operations of zeolite rotor +RTO treatment facilities through 18 measures encompassing responsibilityassignment, equipment management, preventive maintenance, real-timemonitoring, emergency response, and alarm resolution, ensuring stable andcompliant emission data. The Fushan & Xiaolan Plants were recognized as JiangxiProvince’s first batch of Grade A & B VOCs Performance enterprises in keyindustries during heavy pollution weather. Additionally, the Company was awardedthe provincial "Beautiful Factory" title.
In 2024, approximately 830,000 metric tons of wastewater were treated, and thetreated wasterwater was better than the national emission standards. The Companyimplemented odor control and monitoring system upgrades at its wastewater andhazardous waste stations, deploying targeted odor capture equipment to preciselycollect fugitive gases emitted from these facilities.
In waste management, the Company reduced costs through process optimizationsand equipment upgrades in 2024, achieving a year-on-year decline in hazardouswaste generation per vehicle. All hazardous waste storage and handling processeswere transformed into intelligent and digitized systems. The hazardous wastedisposal volume per unit in 2024 decreased by 14% compared to 2023. The FushanPlant’s solvent atomization cleaning process improvement project reduced annualhazardous waste by approximately 900 metric tons, saving 800,000 RMB/year indisposal costs. This project successfully secured a RMB 1.486 million subsidy fromthe Central Environmental Protection Fund.
In 2024, through collaborative efforts across departments, other environmentalchallenges were progressively addressed. The Company conducted inspectionsand renovations of the stormwater-sewage separation system across its facilities,resolving over 20 instances of mixed-flow issues to optimize drainage infrastructureand enhance environmental efficiency. The Fushan Paint Shop monitoring platformwas upgraded to ensure efficient and safe exhaust gas monitoring operations.Additionally, new fire safety pipelines were installed in the Xiaolan waste stationarea, comprehensively elevating fire safety standards. Automated monitoringequipment and infrastructure were also updated and improved to guarantee datatransmission consistency and accuracy.
Emergency plan on emergency environmental incidentsIn 2024, the Company experienced no sudden environmental emergencyincidents.
During the year, the Company updated emergency response plans for suddenenvironmental incidents across four major regions, which were filed withenvironmental authorities. Control measures were established for both actual andpotential accidents and emergencies, and the Company conducted annualemergency drills to ensure the effectiveness of these plans.
Environmental self-monitoring schemeThe Company carries out self-monitoring in strict accordance with the requirementsof the state. The monitoring schemes, monitoring results, and annual monitoringreport on pollution sources were disclosed on the government platform. In 2024, thereporting rate of self-monitoring data of the Company's four plants on the nationalmonitoring platform was 100%.
Relevant information of investment in environmental governance andprotection and payment of environmental protection tax
| Category | Project Name | Investment (RMB ’000) |
| Environmental Governance | Wastewater Treatment Plant Operation | 4,330 |
| Waste Disposal | 6,830 | |
| Environmental Monitoring & Online Operations | 1,040 | |
| Automated Monitoring Equipment Upgrades | 220 |
| Fushan Paint Shop Robot Cleaning Machine Retrofit | 5,000 | |
| Hazardous Waste Smart Management System Enhancement | 100 | |
| New Fire Safety Pipelines for Xiaolan Waste Station | 50 | |
| Fushan Paint Shop Monitoring Platform Improvements | 170 | |
| Stormwater-Sewage System Inspection and Renovation | 400 | |
| Odor Control and Monitoring Upgrades at Waste Stations | 750 | |
| Environmental Tax | 240 | |
| Total | 19,130 | |
Measures and effects taken to reduce carbon emissions during the reportingperiod?Applicable □Not Applicable
1. Photovoltaic Power Generation
Jiangling Motors has constructed and grid-connected a 64MW distributedphotovoltaic power generation project for parking lot canopies, with an averageannual power generation of 64 million kWh. In 2024, the actual power generationreached 71,200.8 thousand kWh, while the Company’s electricity consumption was51,368.6 thousand kWh.
2. Green Electricity Procurement
In 2024, the Company purchased 16,829 thousand kWh of green electricity,equivalent to reducing carbon dioxide emissions by 9,597.58 metric tons. This effortwas recognized with a Green Electricity Consumption Certificate and Green PowerCertificate.
3. Energy-Saving Technical Upgrades
Xiaolan 3.6 Million kcal Electric Air Conditioning Project:
Jiangling Motors replaced an outdated lithium bromide absorption chiller (operatingfor over a decade) with a high-efficiency 3.6 million kcal magnetic levitation electricair conditioner. This initiative aligns with national goals to promote green and low-carbon practices in public institutions, transitioning from lithium bromide-basedcooling systems to electric alternatives. The new system achieves a COP(Coefficient of Performance) above 6, significantly higher than the previous unit’sCOP of less than 3, resulting in annual savings of 800 metric tons of standard coal.Commissioned in early June 2024, the project reduced annual operating costs byRMB 1.5 million and lowered natural gas consumption by 360 thousand Nm?.
4. Energy Efficiency Improvement for Fushan Station’s Direct-Fired Hot WaterSystemDue to seasonal fluctuations in hot water demand for the paint shop, the lithiumbromide solution in the direct-fired hot water system faced crystallization and gasrelease at high temperatures (140–150°C), reducing vacuum efficiency and trappingthe system in a cycle of excessive gas consumption. Engineers resolved this by
adding a water storage tank to dilute the lithium bromide solution concentration from54% to 44%, enhancing vapor absorption efficiency. The solution’s operatingtemperature dropped to 130–140°C, reducing natural gas consumption by 110thousand Nm? and saving RMB 440 thousand annually.
Administrative punishment for environmental problems during the reportingperiodNone.
Other environmental information that should be disclosedNone.
Other environmental protection related informationNone.
2. Corporation Social Responsibilities
Details are contained in the Company's Environmental, Social and Governance(ESG) Report, which was disclosed on March 29, 2025.
3. The consolidation and expansion of poverty alleviation achievements and ruralrevitalizationThe Company actively fulfilled its corporate social responsibility by promotingindustrial assistance and consumer support for rural areas. Initiatives like the"Heartfelt Gratitude Journey: Jiangling Motors' Agricultural Support Campaign inXinfeng" include organized purchases of high-quality agricultural products such asrice and yellow peaches from partnered villages. In 2024, the Company procuredover 4,000 jin of rapeseed oil, 43,000 jin of yellow peaches, 4,000 jin of driednoodles, and 200,000 jin of navel oranges from these communities. Additionally, theCompany strengthened poverty alleviation achievements through youth volunteerservices, including charity education support and visits to assist impoverishedstudents in partner villages.
The Company has continued its signature public welfare program, the “JMC XiqiaoProject”. By the end of 2024, JMC had invested over RMB 41.9 million in theinitiative, constructing 452 stream-crossing bridges across 25 provinces(municipalities, autonomous regions) and 130 counties, benefiting over 600,000rural residents in underdeveloped regions. Furthermore, the Company activelyengaged employees, customers, and partners in its Monthly Donor Program for theJMC Xiqiao Project, driving collective efforts toward rural revitalization.
Chapter VI Major events
1. Commitments
(1) Commitments of actual controlling parties, shareholders, related parties,acquirers and the Company finished in the reporting period or overdue unfinishedby the end of the reporting period
□Applicable ?Not Applicable
There is no commitment of actual controlling parties, shareholders, related parties,acquirers and the Company finished in the reporting period or overdue unfinishedby the end of the reporting period.
(2) Earnings forecast of the assets or project and the explanations
□Applicable ?Not Applicable
2. Non-operating funding in the Company occupied by controlling shareholder andits affiliates
□Applicable ?Not Applicable
There was no non-operating funding in the Company occupied by controllingshareholder and its affiliates.
3. Illegal outside guarantee
□Applicable ?Not Applicable
The Company had no illegal outside guarantee during the reporting period.
4.The Board's explanation of the situation related to the latest "non-standard auditReport"
□Applicable ?Not Applicable
5. Explanation of the Board of Directors, Supervisory Board and IndependentDirectors to abnormal opinions from accounting firm
□Applicable ?Not Applicable
6. Description of changes in accounting policies, accounting estimates, or correctionof major accounting errors compared to the financial report of the previous year?Applicable □Not ApplicablePlease refer to the Note 3 Summary of significant accounting policies andaccounting estimates (24) Significant changes in accounting policies in the ChapterX Financial Statements for details.
7.Description of changes in the scope of consolidated statements as comparedwith the financial statements of the previous year
□Applicable ?Not Applicable
There was no change in the scope of the consolidated statements during thereporting period.
8. Appointment or Dismissal of Accounting Firm
Current appointed accounting firm
| Name | Ernst & Young Hua Ming LLP |
| Compensation (RMB’000) | 1,770 |
| Consecutive years offering audit services | 1 |
| Names of signed accountants | Qiao Chun, Yuan Yong |
| Consecutive years offering audit services of signed accountants | Qiao Chun 1 year, Yuan Yong 1 year |
Dismissal of accounting firm?Yes □NoWhether the accounting firm was rehired during the audit
□Yes ?No
Whether the approval process for changing accounting firms is carried out?Yes □NoDetailed explanation of the reappointment and change of accounting firms
In light of the potential impact on the Company’s 2024 annual reporting work due tothe penalties imposed by the Ministry of Finance on PwC Zhong Tian LLP (SpecialGeneral Partnership) in September 2024, and adhering to the principle of prudence,the Company has resolved to change its external and internal control auditors.Following successive reviews and approvals by the Company’s Board of Directorsand the 2024 Third Special Shareholders’ Meeting, the "Proposal on Chang of theExternal Auditor and C-SOX Auditor" was adopted. Consequently, Ernst & YoungHua Ming LLP (Special General Partnership) has been appointed as the Company’saudit firm for the 2024-2026 fiscal years, providing both financial audit and C-SOXaudit services.
Appointment of C-SOX auditor, financial consultant or sponsor?Applicable □Not ApplicableUpon the approval of 2024 Third Special Shareholders’ Meeting, JMC appointedErnst & Young Hua Ming LLP as JMC’s 2024 to 2026 C-SOX auditor. In 2024, JMCpaid RMB 430 thousand to Ernst & Young Hua Ming LLP for the C-SOX audit.
9. Suspension and Termination of Listing after Annual Report Disclosed
□Applicable ?Not Applicable
10. Related Matters regarding Bankruptcy
□Applicable ?Not Applicable
There was no matter involving bankruptcy during the reporting period.
11. Major Litigation or Arbitration
□Applicable ?Not Applicable
There was no major litigation or arbitration during the reporting period.
12. Punishment
□Applicable ?Not Applicable
Neither JMC nor its Directors or senior management were punished by regulatoryauthorities during the reporting period.
13. Honesty and credit of JMC and its controlling shareholder or actual controllingparty
□Applicable ?Not Applicable
14. Major Related Transactions
(1) Routine related party transactions
Please refer to the Note 8 related party transactions of the notes to the consolidatedfinancial statements in the Chapter X Financial Statements for details.
Index of the announcement on forecast of the routine related party Transactions:
| Name | Disclosure Date | Website for Disclosure |
| Public Announcement on Forecast of the Routine Related Party Transactions in 2025 | 2024.12.12 | www.cninfo.com.cn. |
(2) Major related party transaction concerning transfer of assets or equity
□Applicable ?Not Applicable
There was no major related party transaction concerning transfer of assets orequity in the reporting period.
(3) Related party transaction concerning outside co-investment
□Applicable ?Not Applicable
(4) Related credit and debt
?Applicable □Not ApplicableIs there non-operating related credit and debt?
□Yes ?No
The Company had no non-operating related credit and debt in the reportingperiod.
(5) Transaction with related financial companies or financial companies that thecompany holds?Applicable □Not ApplicableDeposit business
| Related party | The related relationship | Maximum daily deposit limit | Deposit rate | Balance at the beginning of the period(RMB thousands) | Current amount | Balance at the end of the period (RMB thousands) | |
| Deposit amount (RMB thousands) | Take out the amount (RMB thousands) | ||||||
| JMCG Finance Company | Wholly-owned subsidiary of JMCG | * | 1.35% -2.25% | 1,092,870 | 17,403,150 | 17,088,420 | 1,407,600 |
* Note: JMC applies the consolidated deposit limit in JMCG Finance Company atthe end of each month to the lower of the following: 1) 25% of JMCG FinanceCompany absorbing deposit in prior year end; or 2) 12% of JMC’s consolidated totalcash reserve.
Loan business
| Related party | The related relationship | loan limit (RMB thousands) | Loan rate range | Balance at the beginning of the period (RMB thousands) | Current amount | Balance at the end of the period (RMB thousands) | |
| Loan amount (RMB thousands) | Repayment amount (RMB thousands) | ||||||
| JMCG Finance Company | Wholly-owned subsidiary | 1,300,000 | 0 | 0 | 0 | 0 | |
of JMCG
Granting credit or other financial business
| Related party | The related relationship | Type of business | Total (RMB thousands) | Actual amount (RMB thousands) |
| JMCG Finance Company | Wholly-owned subsidiary of JMCG | Granting credit | 1,300,000 | 0 |
(6) The transactions between the financial company controlled by the companyand its related parties
□Applicable ?Not Applicable
The Company has no controlling financial company.
(7) Other major related party transactions
□Applicable ?Not Applicable
15. Major Contracts and Execution
(1) Entrustment, contract or lease
a. Entrustment
□Applicable ?Not Applicable
There was no entrustment in the reporting period.
b. Contract
□Applicable ?Not Applicable
There was no contract in the reporting period.
c. Lease?Applicable □Not ApplicablePlease refer to the Note 5 (14), Note 5 (16), note 5 (31), Note 5 (60) and note 8 (5)(b) of the financial statements in the Chapter X Financial Statements for detail.
Project of which the profit and loss brought for the company reaches more than10% of the total profit of the company during the reporting period
□Applicable ?Not Applicable
There was no leasing project of which the profit and loss brought for the Companyreached more than 10% of the total profit of the Company during the reportingperiod.
(2) Major guarantee
□Applicable ?Not Applicable
The Company had no outside guarantee in the reporting period.
(3) Entrustment on cash asset management
a. Trust investment
□Applicable ?Not Applicable
There was no trust investment in the reporting period.
b. Entrusted loan
□Applicable ?Not Applicable
There was no entrusted loan in the reporting period.
(4) Other major contract
□Applicable ?Not Applicable
There was no other major contract in the reporting period.
16. Other Major Events
□Applicable ?Not Applicable
17.Major event of JMC subsidiary
□Applicable ?Not Applicable
Chapter VII Share Capital Changes & Shareholders
1. Changes of shareholding structure
I. Table of the changes of shareholding structure
| Before the change | Change (+, -) | After the change | |||||||
| Shares | Proportion of total shares (%) | New shares | Bonus Shares | Reserve- converted shares | Others | Subtotal | Shares | Proportion of total shares (%) | |
| I. Limited tradable A shares | 750,840 | 0.09% | 750,840 | 0.09% | |||||
| 1. Other domestic shares | 750,840 | 0.09% | 750,840 | 0.09% | |||||
| Including: | |||||||||
| Domestic legal person shares | 745,140 | 0.09% | 750,840 | 0.09% | |||||
| Domestic natural person shares | 5,700 | 0.00% | 5,700 | 0.00% | |||||
| II. Unlimited tradable shares | 862,463,160 | 99.91% | 862,463,160 | 99.91% | |||||
| 1. A shares | 518,463,160 | 60.06% | 518,463,160 | 60.06% | |||||
| 2. B shares | 344,000,000 | 39.85% | 344,000,000 | 39.85% | |||||
| III. Total | 863,214,000 | 100.00% | 863,214,000 | 100.00% | |||||
Causes of shareholding changes
□Applicable ?Not Applicable
Approval of changes of shareholding structure
□Applicable ?Not Applicable
Shares Transfer
□Applicable ?Not Applicable
Impact on accounting data, such as the latest EPS, diluted EPS, shareholders’equity attributable to the equity holders of the Company, generated from sharestransfer
□Applicable ?Not Applicable
Others to be disclosed necessarily or per the requirements of securities regulator
□Applicable ?Not Applicable
II. Changes of limited A shares
□Applicable ?Not Applicable
2. Securities Issuance and Listing
I. Securities issuance (not including preferred shares) in the reporting period
□Applicable ?Not Applicable
II. Explanation on changes of shares, shareholding structure, assets and liabilitiesstructure
□Applicable ?Not Applicable
III. Current staff shares
□Applicable ?Not Applicable
3. Shareholders and actual controlling parties
I. Total shareholders, top ten shareholders, and top ten shareholders holdingunlimited tradable shares
| Total shareholders as of the end of the reporting period | JMC had 46,024 shareholders, including 40,193 A-share holders, and 5,831 B-share holders, as of December 31, 2024. | |||||||
| Total shareholders as of the last month-end prior to the disclosure date of the Report | JMC had 44,853 shareholders, including 38,944 A-share holders, and 5,909 B-share holders, as of February 28, 2025. | |||||||
| Top ten shareholders | ||||||||
| Shareholder Name | Shareholder Type | Shareholding Percentage (%) | Shares at the End of Year | Change (+,-) | Shares with Trading Restriction | Shares due to mortgage or mark or frozen | ||
| Nanchang Jiangling Investment Co., Ltd. | State-owned legal person | 41.03% | 354,176,000 | 0 | 0 | 0 | ||
| Ford Motor Company | Foreign legal person | 32.00% | 276,228,394 | 0 | 0 | 0 | ||
| Hong Kong Securities Clearing Company Ltd. (HKSCC) | Foreign legal person | 2.94% | 25,410,009 | -8,803,819 | 0 | 0 | ||
| Jin Xing | Domestic Natural Person | 0.68% | 5,836,700 | -1,709,400 | 0 | 0 | ||
| China Merchants Securities (HK) Co., Ltd. | Foreign legal person | 0.58% | 4,967,575 | 3,714,619 | 0 | 0 | ||
| NEW CHINA LIFE INSURANCE COMPANY LTD. | Domestic non-State-owned legal persons | 0.33% | 2,876,900 | 2,876,900 | 0 | 0 | ||
| Zhou Jianqi | Domestic Natural Person | 0.25% | 2,121,300 | 2,121,300 | 0 | 0 | ||
| China Southern CSI 1000 Exchange Traded Open-End Index Securities Investment Fund | Domestic non-State-owned legal persons | 0.20% | 1,716,530 | 1,435,530 | 0 | 0 | ||
| Xinning Bowen No. 1 Private Securities Investment Fund | Domestic non-State-owned legal persons | 0.18% | 1,580,000 | 1,580,000 | 0 | 0 | ||
| Li Wei | Domestic Natural Person | 0.17% | 1,459,101 | 86,101 | 0 | 0 | ||
| Strategic investors or general legal persons become the top 10 shareholders due to the placement of new shares | None. | |||||||
| Notes on association among above-mentioned shareholders | None. | |||||||
| Description of the above shareholders' entrusted/entrusted voting rights and waived voting rights | None. | |||||||
| A special description of the special repurchase account among the top 10 shareholders | None. | |||||||
| Top ten shareholders holding unlimited tradable shares | ||||||||
| Shareholder Name | Shares without Trading Restriction | Share Type | ||||||
| Nanchang Jiangling Investment Co., Ltd. | 354,176,000 | A share | ||||||
| Ford Motor Company | 276,228,394 | B share | ||||||
| Hong Kong Securities Clearing Company Ltd. (HKSCC) | 25,410,009 | A share | ||||||
| Jin Xing | 5,836,700 | B share | ||||||
| China Merchants Securities (HK) Co., Ltd. | 4,967,575 | B share | ||||||
| NEW CHINA LIFE INSURANCE COMPANY LTD. | 2,876,900 | A share | ||||||
| Zhou Jianqi | 2,121,300 | A share | ||||||
| China Southern CSI 1000 Exchange Traded Open-End Index Securities Investment Fund | 1,716,530 | A share |
| Xinning Bowen No. 1 Private Securities Investment Fund | 1,580,000 | A share |
| Li Wei | 1,459,101 | B share |
| Explanation of the association or concerted action between the top 10 unlimited tradable shareholders, and between the top 10 unlimited tradable shareholders and the top 10 shareholders | None. | |
| description of shareholders participating in financing and securities financing business | None. | |
Participation of Shareholders holding more than 5% of shares, top 10shareholders and top 10 shareholders with unlimited shares in the lending ofshares in the refinancing business
□Applicable ?Not Applicable
Change in the top 10 shareholders of the Company and the top 10 shareholderswith unlimited shares from the previous period due to lending/repatriation ofrefinancing business
□Applicable ?Not Applicable
Stock buy-back by top ten shareholders or top ten shareholders holding unlimitedtradable shares in the reporting period
□Applicable ?Not Applicable
The top 10 common shareholders of the Company and the top 10 commonshareholders with unlimited conditions of sale did not conduct agreed repurchasetransactions during the reporting period.
II. Controlling ShareholdersNature of controlling shareholders: Central/Local government holdings, foreign
holdingsType: Legal person
| Name | Legal representative | Established Date | Organization code | Main scope of business |
| Nanchang Jiangling Investment Co., Ltd. | Qiu Tiangao | May 28, 2019 | 91360125MA38LUR91F | investment management, industrial investment, asset management and other business. |
| Ford Motor Company | William Clay Ford, Jr. | January 1, 1903 | to design, manufacture, market, and service a full line of Ford cars, trucks, sport utility vehicles (“SUVs”), electrified vehicles, and Lincoln luxury vehicles, provide financial services through Ford Motor Credit Company LLC, and be pursuing leadership positions in electrification, autonomous vehicles, and mobility solutions. | |
| Equity status of other listed companies in domestic and aboard market controlled and participated by the controlling shareholders during the reporting period | None | |||
Change of controlling shareholders
□Applicable ?Not Applicable
The controlling shareholders of the Company did not change during the reportingperiod.
III. Actual Controlling Parties
Nature of controlling shareholders: Central/Local State-owned Assets Supervision
and AdministrationType: Legal person
| Name | Legal representative | Established Date | Organization code | Main scope of business |
| JMCG | Qiu Tiangao | July 27, 1991 | 91360000158263759R | manufacturing of automobiles, engines, chassis, specialty vehicle, transmission, other products, automotive quality testing, sales of self-produced products and raw materials, equipment, electronic products, parts and others, as well as related after-sales services and maintenance services; development of products derived from JMC brand light vehicle; overseas auto project-contracting, export equipment, material and related labour services. |
| Chongqing Changan Automobile Co., Ltd. | Zhu Huarong | October 31, 1996 | 9150000020286320X6 | development, manufacturing, sales, import & export business of auto (including sedan), engine, automotive components, die, tools, installation of machinery, technological consultant services. |
| Equity status of listed companies in domestic and aboard market controlled by the actual controlling parties during the reporting period | None | |||
Change of actual controlling parties
□Applicable ?Not Applicable
There was no change of actual controlling parties in the reporting period.
Ownership and control relations between the Company and the actual controllingparties are shown as follows:
Actual controlling parties control the Company by the way of trust or other assetsmanagement
□Applicable ?Not Applicable
| SASAC | ||
| Nanchang State-owned Assets Supervision and Administration Committee |
Chongqing Changan Automobile Co., Ltd.
Chongqing Changan Automobile Co., Ltd.
100%
100%JMCG
JMCG
39.70%
39.70%
50%
| 50% | 50% |
Nanchang Jiangling Investment Co., Ltd.
| Nanchang Jiangling Investment Co., Ltd. | Ford Motor Company |
32%
| 41.03% | 32% |
Jiangling Motors Co., Ltd.
IV. The cumulative number of shares pledged by the controlling shareholder or thelargest shareholder and its acting partners accounts for 80% of the number ofshares held by them.
□Applicable ?Not Applicable
V. Other legal person shareholder holding more than 10% of total equity of theCompany
□Applicable ?Not Applicable
VI Shareholding reducing restriction to controlling shareholders, actual controllingparties, restructuring parties and other commitment-making entities
□Applicable ?Not Applicable
4.The specific implementation of share repurchase during the reporting periodThe implementation progress of share repurchase
□Applicable ?Not Applicable
The implementation progress of the reduction of the shares repurchase throughcentralized bidding
□Applicable ?Not Applicable
Chapter VIII Preferred Shares
□Applicable ?Not Applicable
JMC had no preferred shares in the reporting period.
Chapter IX Bond related Information
□Applicable ?Not Applicable
Chapter X Financial Statements
| Type of Audit Report | Standard and Unqualified Opinion |
| Signature date | March 27, 2025 |
| Name of Auditor | Ernst & Young Hua Ming LLP |
| Document No. of Audit Report | Ernst & Young Hua Ming (2025) Shen Zi No. 70038404_V01 |
FINANCIAL STATEMENTS ANDAUDITOR'S REPORTFOR THE YEAR ENDED 31 DECEMBER 2024
[English translation for reference only. Should there be any inconsistency between theChinese and English versions, the Chinese version shall prevail.]
AUDITOR’S REPORT
Ernst & Young Hua Ming (2025) Shen Zi No. 70038404_V01
Jiangling Motors Corporation, Ltd.
To the board of directors of Jiangling Motors Corporation, Ltd.
(I) Opinion
We have audited the financial statements of Jiangling Motors Corporation, Ltd. (the “Company”), whichcomprise the consolidated and company balance sheets as at 31 December 2024, and the consolidatedand company income statements, the consolidated and company statements of changes in equity and theconsolidated and company statements of cash flows for the year then ended, and notes to the financialstatements.
In our opinion, the accompanying financial statements present fairly, in all material respects, theconsolidated and the Company’s financial position as at 31 December 2024, and the consolidated andthe Company’s financial performance and cash flows for the year then ended in accordance withAccounting Standards for Business Enterprises (“ASBEs”).
(II) Basis for opinion
We conducted our audit in accordance with China Standards on Auditing (“CSAs”). Our responsibilitiesunder those standards are further described in the Auditor’s responsibilities for the audit of the financialstatements section of our report. We are independent of the Company in accordance with China Code ofEthics for Certified Public Accountants (the “Code”), and we have fulfilled our other ethical responsibilitiesin accordance with the Code. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.
(III) Key audit matter
Key audit matters are those matters that, in our professional judgement, were of most significance in ouraudit of the financial statements of the current period. These matters were addressed in the context ofour audit of the financial statements as a whole, and in forming our opinion thereon, and we do not providea separate opinion on these matters. For each matter below, our description of how our audit addressedthe matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financialstatements section of our report, including in relation to these matters. Accordingly, our audit included theperformance of procedures designed to respond to our assessment of the risks of material misstatementof the financial statements. The results of our audit procedures, including the procedures performed toaddress the matters below, provide the basis for our audit opinion on the accompanying financialstatements.
AUDITOR’S REPORT (continued)
Ernst & Young Hua Ming (2025) Shen Zi No. 70038404_V01
Jiangling Motors Corporation, Ltd.
(III) Key audit matter (Cont’d)
| Key Audit Matter | How our audit addressed Key Audit Matter |
| Expenditure on research and development | |
| ? R&D expenditure in 2024 was RMB1,699,761,123, of which RMB385,181,700 was capitalized as R&D expenditure. As at 31 December 2024, the balance of development expenditure was RMB188,103,430. ? We recognize R&D expenditure as a key audit matter because the R&D expenditure is significant, part of which is capitalized, and the assessment of whether the capitalization conditions are met involves significant accounting judgments from JMC management regarding the technical feasibility of the project, the likelihood that the project will bring sufficient future economic benefits, and the timing of the capitalization commencement. ? See notes 3(14)(2), 5(18) and 5(45) to the financial statements. | The audit procedures we performed on expenditures on research and development included: ? We understood and evaluated the design of internal controls related to expenditures on research and development, and tested the operation effectiveness of the key controls; ? We obtained breakdown of expenditures on research and development by project and reconciled them with amounts recorded in general ledger; ? We understood the cost allocation method of research and development projects, reviewed the results of allocation of indirect expenses, and verified the reasonableness the indirect expenses attributable to relevant projects, including payrolls, depreciation and amortization expenses; ? We compared costs components across different projects and incurred research and development costs with corresponding budgets, and evaluated the progress of the different projects by interviewing with project managers on a sampling basis; ? For projects which expenditures on research and development were capitalised, we understood the criteria and timing of capitalisation determined by management; we checked the feasibility reports of different projects and interviewed with relevant project managers, reviewed the verification reports and meeting minutes at different research and development stages to further confirm the reasonableness of the judgment made by management; and we assessed the technical feasibility of the development projects and the likelihood of the generating of sufficient future economic benefits by considering market information and the Company's successful development experience in the past; ? We tested expenditures on research and development on a sampling basis by obtaining and inspecting documents, including contracts and invoices, to verify and evaluate the relevance with research and development activities, the reality of occurrence, the accuracy of amount and the reasonableness of classification; ? We reviewed and confirmed the relevant expenditure on research and development has been sufficiently disclosed in financial statement. |
AUDITOR’S REPORT (continued)
Ernst & Young Hua Ming (2025) Shen Zi No. 70038404_V01
Jiangling Motors Corporation, Ltd.
(IV) Other information
Management of Jiangling Motors is responsible for the other information. The other information comprisesall of the information included in 2024 annual report of Jiangling Motors other than the financial statementsand our auditor's report thereon.
Our opinion on the financial statements does not cover the other information and we do not express anyform of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other informationand, in doing so, consider whether the other information is materially inconsistent with the financialstatements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this otherinformation, we are required to report that fact, We have nothing to report in this regarded.
(V) Responsibilities of the management and those charged with governance for the financialstatements
The management of the Company is responsible for the preparation and fair presentation of the financialstatements in accordance with ASBEs, and for designing, implementing and maintaining such internalcontrol as the management determines is necessary to enable the preparation of financial statements thatare free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the management is responsible for assessing the Company’s abilityto continue as a going concern, disclosing, as applicable, matters related to going concern and using thegoing concern basis of accounting, unless the management either intends to liquidate the Company or tocease operations or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
(VI) Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole arefree from material misstatement, whether due to fraud or error, and to issue an auditor’s report thatincludes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that anaudit conducted in accordance with CSAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are generally considered material if, individually or in theaggregate, they could reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.
AUDITOR’S REPORT (continued)
Ernst & Young Hua Ming (2025) Shen Zi No. 70038404_V01
Jiangling Motors Corporation, Ltd.
(VI) Auditor’s responsibilities for the audit of the financial statements (Cont’d)
As part of an audit in accordance with CSAs, we exercise professional judgement and maintainprofessional scepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain auditevidence that is sufficient and appropriate to provide a basis for our opinion. The risk of notdetecting a material misstatement resulting from fraud is higher than for one resulting from error,as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the overrideof internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of internal control.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accountingestimates and related disclosures made by the management.
(4) Conclude on the appropriateness of the management’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists relatedto events or conditions that may cast significant doubt on the Company’s ability to continue as agoing concern. If we conclude that a material uncertainty exists, we are required to draw attentionin our auditor’s report to the related disclosures in the financial statements or, if such disclosuresare inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtainedup to the date of our auditor’s report. However, future events or conditions may cause the Companyto cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, including thedisclosures, and whether the financial statements represent the underlying transactions and eventsin a manner that achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities orbusiness activities within the Company to express an opinion on the financial statements. We areresponsible for the direction, supervision and performance of the group audit. We remain solelyresponsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scopeand timing of the audit and significant audit findings, including any significant deficiencies in internal controlthat we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence, and to communicate with them all relationships and othermatter's that may reasonably be thought to bear on our independence, and where applicable, relatedsafeguards.
From the matters communicated with those charged with governance, we determine those matters thatwere of most significance in the audit of the financial statements of the current period and are thereforethe key audit matters. We describe these matters in our auditor's report unless law or regulation precludespublic disclosure about the matter or when, in extremely rare circumstances, we determine that a mattershould not be communicated in our report because the adverse consequences of doing so wouldreasonably be expected to outweigh the public interest benefits of such communication.
AUDITOR’S REPORT (continued)
Ernst & Young Hua Ming (2025) Shen Zi No. 70038404_V01
Jiangling Motors Corporation, Ltd.
Ernst & Young Hua Ming LLP Chinese Certified Public Accountant: Terence Qiao
Chinese Certified Public Accountant: Derek Yuan
Beijing, the People’s Republic of China 27 March 2025
| JIANGLING MOTORS CORPORATION, LTD. | ||||||
| CONSOLIDATED AND COMPANY BALANCE SHEETS AS AT 31 DECEMBER 2024 | ||||||
| (All amounts in RMB Yuan unless otherwise stated) | ||||||
| ASSETS | Notes | 31 December 2024 Consolidated | 31 December 2023 Consolidated | 31 December 2024 Company | 31 December 2023 Company | |
| Current assets | ||||||
| Cash and cash equivalents | 5(1) | 12,546,295,890 | 11,830,560,675 | 9,269,593,792 | 8,697,182,460 | |
| Financial assets held for trading | 5(2) | - | 200,604,877 | - | - | |
| Derivative financial assets | 5(3) | 12,612,380 | - | 12,612,380 | - | |
| Notes receivable | 5(4) | 226,865 | 14,621,337 | 1,500,226,865 | 700,000,000 | |
| Accounts receivable | 5(5)、15(1) | 4,181,008,234 | 4,401,826,022 | 5,521,047,573 | 4,594,376,160 | |
| Financing receivables | 5(6) | 302,065,502 | 123,170,062 | 18,070,384 | 17,979,578 | |
| Advances to suppliers | 5(7) | 94,749,172 | 204,358,759 | 94,749,172 | 204,358,759 | |
| Other receivables | 5(8)、15(2) | 54,013,240 | 75,319,848 | 144,617,207 | 71,813,906 | |
| Inventories | 5(9) | 2,054,517,242 | 1,560,259,511 | 2,046,549,034 | 1,558,685,526 | |
| Current portion of non-current assets | 5(11) | 20,784,738 | 15,749,806 | 15,161,497 | 14,495,736 | |
| Other current assets | 5(10) | 1,228,372,977 | 951,659,556 | 777,406,955 | 731,819,005 | |
| Total current assets | 20,494,646,240 | 19,378,130,453 | 19,400,034,859 | 16,590,711,130 | ||
| Non-current assets | ||||||
| Long-term receivables | 5(12) | 18,533,908 | 22,775,696 | 1,584,891 | 16,699,348 | |
| Long-term equity investments | 5(13)、15(3) | 219,298,031 | 233,798,348 | 771,951,961 | 786,452,278 | |
| Fixed assets | 5(14) | 5,749,474,005 | 5,389,645,152 | 5,111,224,814 | 5,176,956,698 | |
| Construction in progress | 5(15) | 661,911,780 | 464,431,412 | 582,757,760 | 438,083,465 | |
| Right-of-use assets | 5(16) | 158,485,688 | 194,836,028 | 142,207,976 | 183,725,741 | |
| Intangible assets | 5(17) | 1,811,454,853 | 1,691,021,121 | 1,596,623,962 | 1,469,907,538 | |
| Development expenditures | 5(18) | 188,103,430 | 283,738,155 | 188,103,430 | 283,738,155 | |
| Goodwill | 5(21) | - | - | - | - | |
| Deferred tax assets | 5(19) | 1,530,144,365 | 1,472,003,554 | - | 185,190,368 | |
| Other non-current assets | 5(20) | 7,860,340 | 10,807,967 | 7,860,340 | 10,807,967 | |
| Total non-current assets | 10,345,266,400 | 9,763,057,433 | 8,402,315,134 | 8,551,561,558 | ||
| TOTAL ASSETS | 30,839,912,640 | 29,141,187,886 | 27,802,349,993 | 25,142,272,688 | ||
| JIANGLING MOTORS CORPORATION, LTD. | ||
| CONSOLIDATED AND COMPANY BALANCE SHEETS AS AT 31 DECEMBER 2024 | ||
| (All amounts in RMB Yuan unless otherwise stated) |
| LIABILITIES AND EQUITY | Notes | 31 December 2024 Consolidated | 31 December 2023 Consolidated | 31 December 2024 Company | 31 December 2023 Company |
| Current liabilities | |||||
| Short-term borrowings | 5(22) | 1,500,000,000 | 1,300,000,000 | 1,500,000,000 | 1,300,000,000 |
| Derivative financial liabilities | 5(3) | - | 459,306 | - | 459,306 |
| Accounts payable | 5(23) | 10,061,223,944 | 9,476,215,223 | 10,047,585,502 | 9,475,904,232 |
| Contract liabilities | 5(24) | 467,704,291 | 243,740,992 | 536,871,795 | 29,190,915 |
| Employee benefits payable | 5(25) | 780,174,574 | 890,051,287 | 672,858,988 | 788,409,476 |
| Taxes payable | 5(26) | 265,198,389 | 118,399,765 | 256,969,632 | 97,718,547 |
| Other payables | 5(27) | 5,739,064,167 | 5,944,976,093 | 2,130,094,497 | 2,377,082,577 |
| Current portion of non-current liabilities | 5(28) | 86,155,114 | 93,383,898 | 81,053,594 | 86,713,258 |
| Other current liabilities | 5(29) | 341,548,441 | 373,948,630 | 98,829,073 | 36,085,601 |
| Total current liabilities | 19,241,068,920 | 18,441,175,194 | 15,324,263,081 | 14,191,563,912 | |
| Non-current liabilities | |||||
| Long-term borrowings | 5(30) | 941,453 | 1,391,414 | 941,453 | 1,391,414 |
| Lease liabilities | 5(31) | 93,752,634 | 138,005,943 | 82,241,628 | 134,081,724 |
| Provisions | 5(32) | 287,165,703 | 315,700,263 | 3,553,345 | - |
| Deferred income | 5(33) | 61,202,010 | 67,601,361 | 61,202,010 | 67,601,361 |
| Long-term employee benefits payable | 5(34) | 59,342,000 | 52,891,000 | 58,991,000 | 52,562,000 |
| Deferred tax liabilities | 5(19) | 130,301,876 | 19,256,890 | 111,616,233 | - |
| Other non-current liabilities | 5(35) | 370,793,523 | 120,293,201 | - | - |
| Total non-current liabilities | 1,003,499,199 | 715,140,072 | 318,545,669 | 255,636,499 | |
| Total liabilities | 20,244,568,119 | 19,156,315,266 | 15,642,808,750 | 14,447,200,411 | |
| Equity | |||||
| Share capital | 5(36) | 863,214,000 | 863,214,000 | 863,214,000 | 863,214,000 |
| Capital surplus | 5(37) | 839,442,490 | 839,442,490 | 839,442,490 | 839,442,490 |
| Other comprehensive income | 5(38) | (26,388,000) | (20,572,000) | (26,738,000) | (20,979,000) |
| Special reserve | 5,371,093 | 3,821,625 | 5,147,194 | 3,821,625 | |
| Surplus reserve | 5(39) | 431,607,000 | 431,607,000 | 431,607,000 | 431,607,000 |
| Retained earnings | 5(40) | 9,179,333,271 | 8,232,632,623 | 10,046,868,559 | 8,577,966,162 |
| Total equity attributable to shareholders of the Company | 11,292,579,854 | 10,350,145,738 | 12,159,541,243 | 10,695,072,277 | |
| Minority interests | (697,235,333) | (365,273,118) | - | - | |
| Total equity | 10,595,344,521 | 9,984,872,620 | 12,159,541,243 | 10,695,072,277 | |
| TOTAL LIABILITIES AND EQUITY | 30,839,912,640 | 29,141,187,886 | 27,802,349,993 | 25,142,272,688 |
| Legal representative: Qiu Tiangao | CFO: Joey Zhu | Finance Department: Hu Hanfeng |
| JIANGLING MOTORS CORPORATION, LTD. | ||||||||||
| CONSOLIDATED AND COMPANY INCOME STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 | ||||||||||
| (All amounts in RMB Yuan unless otherwise stated) | ||||||||||
| Item | Notes | 2024 Consolidated | 2023 Consolidated (Restated) | 2024 Company | 2023 Company (Restated) | |||||
| Revenue | 5(41)、15(4) | 38,374,160,748 | 33,167,325,081 | 37,937,081,015 | 32,573,697,821 | |||||
| Less: | Cost of sales | 5(41)、15(4) | (32,951,745,144) | (28,396,187,067) | (32,466,245,873) | (27,534,419,185) | ||||
| Taxes and surcharges | 5(42) | (1,467,445,089) | (974,171,328) | (1,420,441,384) | (936,086,314) | |||||
| Selling and distribution expenses | 5(43) | (1,058,948,593) | (1,136,033,603) | (109,668,687) | (128,909,155) | |||||
| General and administrative expenses | 5(44) | (943,622,568) | (983,458,031) | (834,480,512) | (899,692,892) | |||||
| Research and development expenses | 5(45) | (1,314,579,423) | (1,286,201,612) | (1,314,579,423) | (1,286,201,612) | |||||
| Financial expenses | 5(46) | 152,310,137 | 204,908,754 | 105,404,859 | 149,679,267 | |||||
| Including: Interest expenses | (20,304,855) | (41,844,790) | (19,811,045) | (36,373,400) | ||||||
| Interest income | 198,915,297 | 251,052,563 | 150,980,757 | 189,389,569 | ||||||
| Add: | Other income | 5(49) | 514,430,051 | 567,529,766 | 512,394,471 | 563,577,455 | ||||
| Investment income | 5(50)、15(5) | (942,269) | (10,579,046) | (5,236,433) | (17,317,710) | |||||
| Including: Share of loss of associates and joint ventures | (10,363,917) | (9,591,118) | (10,363,917) | (9,591,118) | ||||||
| Gains on changes in fair value | 5(51) | 13,071,686 | (2,827,127) | 13,071,686 | (3,432,004) | |||||
| Credit impairment losses | 5(48) | 9,638,212 | (5,964,483) | 6,068,224 | (4,170,386) | |||||
| Asset impairment losses | 5(47) | (66,600,824) | (345,125,558) | (66,600,824) | (509,025,850) | |||||
| Gains on disposal of assets | 5(52) | 3,317,046 | (3,908,476) | 3,469,920 | (4,425,983) | |||||
| Operating profit | 1,263,043,970 | 795,307,270 | 2,360,237,039 | 1,963,273,452 | ||||||
| Add: | Non-operating income | 5(53) | 5,043,793 | 8,875,880 | 3,032,110 | 7,026,529 | ||||
| Less: | Non-operating expenses | 5(54) | (9,980,157) | (6,041,023) | (7,121,776) | (5,991,770) | ||||
| Total profit | 1,258,107,606 | 798,142,127 | 2,356,147,373 | 1,964,308,211 | ||||||
| Less: | Income tax expenses | 5(55) | (52,930,797) | 266,352,570 | (296,806,600) | (45,515,756) | ||||
| Net profit | 1,205,176,809 | 1,064,494,697 | 2,059,340,773 | 1,918,792,455 | ||||||
| Classified by continuity of operations | ||||||||||
| Net profit from continuing operations | 1,205,176,809 | 1,064,494,697 | 2,059,340,773 | 1,918,792,455 | ||||||
| Net profit from discontinued operations | - | - | - | - | ||||||
| Classified by ownership of the equity | ||||||||||
| Minority interests | (331,962,215) | (411,102,569) | - | - | ||||||
| Attributable to shareholders of the Company | 1,537,139,024 | 1,475,597,266 | 2,059,340,773 | 1,918,792,455 | ||||||
| Other comprehensive income, net of tax | (5,816,000) | (7,087,750) | (5,759,000) | (7,134,750) | ||||||
| Attributable to shareholders of the Company | ||||||||||
| Other comprehensive income items which will not be reclassified to profit or loss | ||||||||||
| Changes arising from remeasurement of defined benefit plan | 5(38) | (5,816,000) | (7,087,750) | (5,759,000) | (7,134,750) | |||||
| Attributable to minority interests | - | - | - | - | ||||||
| Total comprehensive income | 1,199,360,809 | 1,057,406,947 | 2,053,581,773 | 1,911,657,705 | ||||||
| Attributable to shareholders of the Company | 1,531,323,024 | 1,468,509,516 | 2,053,581,773 | 1,911,657,705 | ||||||
| Attributable to minority interests | (331,962,215) | (411,102,569) | - | - | ||||||
| Earnings per share | ||||||||||
| Basic earnings per share (RMB Yuan) | 5(56) | 1.78 | 1.71 | —— | —— | |||||
| Diluted earnings per share (RMB Yuan) | 5(56) | 1.78 | 1.71 | —— | —— | |||||
| Legal representative: Qiu Tiangao | CFO: Joey Zhu | Finance Department: Hu Hanfeng |
| JIANGLING MOTORS CORPORATION, LTD. | ||
| CONSOLIDATED AND COMPANY CASH FLOW STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 | ||
| (All amounts in RMB Yuan unless otherwise stated) |
| Item | Note | 2024 | 2023 | 2024 | 2023 |
| Consolidated | Consolidated | Company | Company | ||
| Cash flows generated from operating activities | |||||
| Cash received from sales of goods or rendering of services | 41,351,813,244 | 37,150,759,550 | 39,365,760,196 | 33,349,485,191 | |
| Refunds of taxes | 263,289,557 | 658,837,860 | 263,289,557 | 658,837,860 | |
| Cash received relating to other operating activities | 5(57) | 329,215,516 | 653,090,552 | 225,142,211 | 616,538,138 |
| Sub-total of cash inflows | 41,944,318,317 | 38,462,687,962 | 39,854,191,964 | 34,624,861,189 | |
| Cash paid for goods and services | (32,088,398,075) | (26,547,151,493) | (30,904,745,276) | (25,829,707,895) | |
| Cash paid to and on behalf of employees | (2,690,580,651) | (2,564,423,876) | (2,474,503,947) | (2,361,423,689) | |
| Payments of taxes and surcharges | (2,668,968,974) | (2,252,941,361) | (2,466,735,213) | (1,937,323,927) | |
| Cash paid relating to other operating activities | 5(57) | (1,862,986,400) | (2,530,631,366) | (1,095,294,099) | (1,395,818,726) |
| Sub-total of cash outflows | (39,310,934,100) | (33,895,148,096) | (36,941,278,535) | (31,524,274,237) | |
| Net cash flows generated from operating activities | 5(58) | 2,633,384,217 | 4,567,539,866 | 2,912,913,429 | 3,100,586,952 |
| Cash flows used in investing activities | |||||
| Cash received from disposal of investments | 800,000,000 | 300,000,000 | - | - | |
| Cash received from returns on investments | 9,035,441 | 7,215,548 | 4,136,400 | 5,093,356 | |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 28,537,053 | 2,193,226 | 22,365,729 | 2,920,918 | |
| Cash received from disposal of subsidiaries and other business units | - | 60,900,000 | - | 60,900,000 | |
| Cash received relating to other investing activities | 5(57) | 218,305,076 | 254,122,532 | 158,686,106 | 193,082,627 |
| Sub-total of cash inflows | 1,055,877,570 | 624,431,306 | 185,188,235 | 261,996,901 | |
| Cash paid to acquire fixed assets intangible assets and other long-term assets | (1,810,776,307) | (1,296,500,813) | (1,811,006,047) | (1,295,937,393) | |
| Cash paid to acquire investments | (600,000,000) | (500,000,000) | (94,113,000) | (53,167,203) | |
| Cash paid relating to other investing activities | (4,445,964) | (88,707) | (4,445,964) | (88,707) | |
| Sub-total of cash outflows | (2,415,222,271) | (1,796,589,520) | (1,909,565,011) | (1,349,193,303) | |
| Net cash flows used in investing activities | (1,359,344,701) | (1,172,158,214) | (1,724,376,776) | (1,087,196,402) | |
| Cash flows used in financing activities | |||||
| Cash received from absorbing investments | - | 49,000,000 | - | - | |
| Including: cash received by the subsidiary from absorbing minority shareholders' investment | - | 49,000,000 | - | - | |
| Cash received from borrowings | 3,078,140,000 | 4,278,854,833 | 2,992,390,000 | 3,583,941,056 | |
| Cash received relating to other financing activities | - | 700,000,000 | - | - | |
| Sub-total of cash inflows | 3,078,140,000 | 5,027,854,833 | 2,992,390,000 | 3,583,941,056 | |
| Cash repayments of borrowings | (2,813,318,287) | (4,106,648,284) | (2,813,318,287) | (3,406,648,284) | |
| Cash payments for distribution of dividends, profits or interest expenses | (599,144,621) | (377,731,962) | (599,144,621) | (377,731,962) | |
| Cash paid relating to other financing activities | 5(57) | (211,059,214) | (735,531,278) | (203,163,964) | (27,737,455) |
| Sub-total of cash outflows | (3,623,522,122) | (5,219,911,524) | (3,615,626,872) | (3,812,117,701) | |
| Net cash flows used in financing activities | (545,382,122) | (192,056,691) | (623,236,872) | (228,176,645) | |
| Effect of foreign exchange rate changes on cash and cash equivalents | - | - | - | - | |
| Net increase in cash and cash equivalents | 5(58) | 728,657,394 | 3,203,324,961 | 565,299,781 | 1,785,213,905 |
| Add: Cash and cash equivalents at beginning of year | 5(58) | 11,746,518,615 | 8,543,193,654 | 8,648,791,242 | 6,863,577,337 |
| Cash and cash equivalents at end of year | 5(58) | 12,475,176,009 | 11,746,518,615 | 9,214,091,023 | 8,648,791,242 |
| Legal representative: Qiu Tiangao | CFO: Joey Zhu | Finance Department: Hu Hanfeng |
| Legal representative: Qiu Tiangao | CFO: Joey Zhu | Finance Department: Hu Hanfeng |
JIANGLING MOTORS CORPORATION, LTD.
| JIANGLING MOTORS CORPORATION, LTD. | ||||||||||||
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2024 | ||||||||||||
| (All amounts in RMB Yuan unless otherwise stated) | ||||||||||||
| Item | Note | Attributable to shareholders of the parent company | Minority interests | Total equity | ||||||||
| Share capital | Capital surplus | Other comprehensive income | Special reserve | Surplus reserve | Retained earnings | |||||||
| Balance at 1 January 2023 | 863,214,000 | 839,442,490 | (13,484,250) | - | 431,607,000 | 7,123,038,093 | (3,170,549) | 9,240,646,784 | ||||
| Movements for the year ended 31 December 2023 | - | - | (7,087,750) | 3,821,625 | - | 1,109,594,530 | (362,102,569) | 744,225,836 | ||||
| Total comprehensive income | ||||||||||||
| Net profit/(loss) | - | - | - | - | - | 1,475,597,266 | (411,102,569) | 1,064,494,697 | ||||
| Other comprehensive income | - | - | (7,087,750) | - | - | - | - | (7,087,750) | ||||
| Total comprehensive income for the year | - | - | (7,087,750) | - | - | 1,475,597,266 | (411,102,569) | 1,057,406,947 | ||||
| Capital contributed by owners and capital decreases | ||||||||||||
| Capital invested by shareholders | - | - | - | - | - | - | 49,000,000 | 49,000,000 | ||||
| Profit distribution | ||||||||||||
| Distribution to shareholders | 5(40) | - | - | - | - | - | (366,002,736) | - | (366,002,736) | |||
| Special reserves | ||||||||||||
| Withdrawal this year | - | - | - | 29,300,742 | - | - | - | 29,300,742 | ||||
| Used this year | - | - | - | (25,479,117) | - | - | - | (25,479,117) | ||||
| Balance at 31 December 2023 | 863,214,000 | 839,442,490 | (20,572,000) | 3,821,625 | 431,607,000 | 8,232,632,623 | (365,273,118) | 9,984,872,620 | ||||
| Balance at 1 January 2024 | 863,214,000 | 839,442,490 | (20,572,000) | 3,821,625 | 431,607,000 | 8,232,632,623 | (365,273,118) | 9,984,872,620 | ||||
| Movements for the year ended 31 December 2024 | - | - | (5,816,000) | 1,549,468 | - | 946,700,648 | (331,962,215) | 610,471,901 | ||||
| Total comprehensive income | ||||||||||||
| Net profit/(loss) | - | - | - | - | - | 1,537,139,024 | (331,962,215) | 1,205,176,809 | ||||
| Other comprehensive income | - | - | (5,816,000) | - | - | - | - | (5,816,000) | ||||
| Total comprehensive income for the year | - | - | (5,816,000) | - | - | 1,537,139,024 | (331,962,215) | 1,199,360,809 | ||||
| Capital contributed by owners and capital decreases | ||||||||||||
| Capital invested by shareholders | - | - | - | - | - | - | - | - | ||||
| Profit distribution | ||||||||||||
| Distribution to shareholders | 5(40) | - | - | - | - | - | (590,438,376) | - | (590,438,376) | |||
| Special reserve | ||||||||||||
| Withdrawal this year | - | - | - | 29,631,611 | - | - | - | 29,631,611 | ||||
| Used this year | - | - | - | (28,082,143) | - | - | - | (28,082,143) | ||||
| Balance at 31 December 2024 | 863,214,000 | 839,442,490 | (26,388,000) | 5,371,093 | 431,607,000 | 9,179,333,271 | (697,235,333) | 10,595,344,521 | ||||
| JIANGLING MOTORS CORPORATION, LTD. | ||||||||||
| COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2024 | ||||||||||
| (All amounts in RMB Yuan unless otherwise stated) | ||||||||||
| Item | Note | Share capital | Capital surplus | Other comprehensive income | Special reserve | Surplus reserve | Retained earnings | Total equity | ||
| Balance at 1 January 2023 | 863,214,000 | 839,442,490 | (13,844,250) | - | 431,607,000 | 7,025,176,443 | 9,145,595,683 | |||
| Movements for the year ended 31 December 2023 | - | - | (7,134,750) | 3,821,625 | - | 1,552,789,719 | 1,549,476,594 | |||
| Total comprehensive income | ||||||||||
| Net profit | - | - | - | - | - | 1,918,792,455 | 1,918,792,455 | |||
| Other comprehensive income | - | - | (7,134,750) | - | - | - | (7,134,750) | |||
| Total comprehensive income for the year | - | - | (7,134,750) | - | - | 1,918,792,455 | 1,911,657,705 | |||
| Profit distribution | ||||||||||
| Distribution to shareholders | 5(40) | - | - | - | - | - | (366,002,736) | (366,002,736) | ||
| Special reserve | ||||||||||
| Withdrawal this year | - | - | - | 29,300,742 | - | - | 29,300,742 | |||
| Used this year | - | - | - | (25,479,117) | - | - | (25,479,117) | |||
| Balance at 31 December 2023 | 863,214,000 | 839,442,490 | (20,979,000) | 3,821,625 | 431,607,000 | 8,577,966,162 | 10,695,072,277 | |||
| Balance at 1 January 2024 | 863,214,000 | 839,442,490 | (20,979,000) | 3,821,625 | 431,607,000 | 8,577,966,162 | 10,695,072,277 | |||
| Movements for the year ended 31 December 2024 | - | - | (5,759,000) | 1,325,569 | - | 1,468,902,397 | 1,464,468,966 | |||
| Total comprehensive income | ||||||||||
| Net profit | - | - | - | - | - | 2,059,340,773 | 2,059,340,773 | |||
| Other comprehensive income | - | - | (5,759,000) | - | - | - | (5,759,000) | |||
| Total comprehensive income for the year | - | - | (5,759,000) | - | - | 2,059,340,773 | 2,053,581,773 | |||
| Profit distribution | ||||||||||
| Distribution to shareholders | 5(40) | - | - | - | - | - | (590,438,376) | (590,438,376) | ||
| Special reserve | ||||||||||
| Withdrawal this year | - | - | - | 29,407,712 | - | - | 29,407,712 | |||
| Used this year | - | - | - | (28,082,143) | - | - | (28,082,143) | |||
| Balance at 31 December 2024 | 863,214,000 | 839,442,490 | (26,738,000) | 5,147,194 | 431,607,000 | 10,046,868,559 | 12,159,541,243 | |||
| Legal representative: Qiu Tiangao | CFO: Joey Zhu | Finance Department: Hu Hanfeng |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 1 | General information |
| Jiangling Motors Corporation, Ltd. (hereinafter “the Company”) is a Sino-foreign joint stock enterprise established under the approval of Hong ban (1992) No. 005 of Nanchang Revolution and Authorisation Group of Company’s Joint Stock on the basis of Jiangxi Motors Manufacturing Factory on 16 June 1992. The address of its headquarters is Nanchang City, Jiangxi Province of the People’s Republic of China (“the PRC”). | |
| On 23 July 1993, with the approval of the China Securities Regulatory Commission (hereinafter “CSRC”) (Zheng Jian Fa Shen Zi [1993] No. 22) and (Zheng Jian Han Zi [1993] No. 86), the Company was listed on the Stock Exchange of Shenzhen on 1 December 1993, issuing 494,000,000 shares in total. On 8 April 1994, a total of 25,214,000 shares were distributed for the 1993 dividend distribution programme with the approval of the shareholders’ meeting and Jiangxi Securities Management Leading Group (Gan Securities [1994] No. 02). In 1995, with the approval of CSRC (Zheng Jian Fa Zi [1995] No. 144) and the Shenzhen Securities Management Office (Shenzhen Zheng Ban Fu [1995] No. 92), the Company issued 174,000,000 ordinary shares (“B shares”). In 1998, with the approval of CSRC (Zheng Jian Guo Zi [1998] No. 19), the Company issued additional 170,000,000 B shares. | |
| According to the resolution of the shareholders’ meeting regarding the split share structure reform on 11 January 2006, the Company implemented the Scheme on Split Share Structure Reform on 13 February 2006. After the implementation, the Company’s total paid-in capital remains the same. Related details are disclosed in Note 5(36). | |
| As at 31 December 2024, the Company’s paid-in capital totalled RMB863,214,000, with par value of RMB1 per share. | |
| The actual principal business scope of the Company and its subsidiaries (hereinafter “the Group”) includes production and sales of automobile assemblies such as automobiles, special (modified) vehicles, engines and chassis and other automobile parts, and provision of related after-sales services; retail and wholesale of imported FORD E series automobiles of Ford Motor (China) Co., Ltd. as the dealer; import and export of automobiles and parts; dealership of used cars; provision of enterprise management and consulting services related to production and sales of automobiles. | |
| These financial statements were authorised for issue by the Company's Board of Directors on 27 March 2025. | |
| 2 | Basis of preparation of the financial statement |
| (1) | Basis of preparation |
| The financial statements are prepared in accordance with the Accounting Standard for Business Enterprises - Basic Standard, specific accounting standards and relevant regulations and in subsequent periods (hereinafter collectively referred to as “the Accounting Standards for Business Enterprises” or “CASs”) and the disclosure requirements in the Preparation Convention of Information Disclosure by Companies Offering Securities to the Public No.15 - General Rules on Financial Reporting issued by CSRC. | |
| (2) | Going concern |
| These financial statements have been prepared on a going concern basis. | |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 3 | Summary of significant accounting policies and accounting estimates |
| The Group determines specific accounting policies and estimates based on the features of its production and operation, which mainly comprise the measurement of expected credit losses on receivables, valuation of inventories, Inventory write-down provision, depreciation of fixed assets and amortisation of intangible assets and right-of-use assets, criteria for capitalisation of development expenditures, impairment of long-term assets, recognition and measurement of revenue, and government grants etc. | |
| (1) | Statement of compliance with the Accounting Standards for Business Enterprises |
| The financial statements of the Company for the year ended 31 December 2024 are in compliance with the Accounting Standards for Business Enterprises, and truly and completely present the consolidated and company’s financial position of the Company as at 31 December 2024 and their financial performance, cash flows and other information for the year then ended. | |
| (2) | Accounting year |
| The Group's accounting year is a calendar year, i.e. from 1 January to 31 December each year. | |
| (3) | Functional currency |
| The base currency of the Company and its subsidiaries and the currency used in the preparation of these financial statements are RMB. Unless otherwise specified, they are expressed in RMB. |
| (4) | The determination method and selection basis of the material standard followed by financial statement disclosure | ||
| Significant recovery or reversal of allowance for doubtful accounts receivable | The amount of a single recovery or reversal exceeds 1% of the total amount of various receivables and is greater than RMB 15 million. | ||
| Significant prepayments with an aging of over 1 year | The amount of a single prepayment exceeds 10% of the total amount of various prepayments and is greater than RMB 15 million. | ||
| Significant construction in progress | The budget of a single project exceeds RMB 50 million. | ||
| Significant non-wholly owned subsidiaries | The net assets of the subsidiary account for more than 5% of the group’s net assets, or its net profit impact reaches 10% or more of the group’s consolidated net profit. | ||
| Significant associated companies | The carrying value of long-term equity investment in a single investee exceeds 5% of the group’s net assets or is greater than RMB 100 million, or the investment income/loss under the equity method accounts for 10% or more of the group’s consolidated net profit. | ||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 3 | Summary of significant accounting policies and accounting estimates (Cont’d) |
| (5) | Preparation of consolidated financial statements |
| The scope of consolidation of the consolidated financial statements is determined on a control basis, including the financial statements of the Company and all of its subsidiaries. "Subsidiary" refers to the entity controlled by the Company (including the divisible part of the enterprise and the investee, as well as the structured entity controlled by the Company, etc.). An investor can control an investee if and only if the investor has the following three elements: the investor has authority over the investee; Variable returns for participation in the investee's related activities; Ability to use power over the investee to influence the amount of its return. | |
| If the accounting policies or accounting periods adopted by the subsidiary are inconsistent with those adopted by the Company, the financial statements of the subsidiary shall be adjusted as necessary in accordance with the accounting policies and accounting periods of the Company when preparing the consolidated financial statements. The assets, liabilities, equity, revenues, expenses and cash flows arising from all transactions between companies within the Group are fully offset at the time of the consolidation. | |
| If the current loss shared by the minority shareholders of the subsidiary exceeds the share of the minority shareholders in the shareholders' equity at the beginning of the period, the balance shall still be offset against the minority shareholders' equity. | |
| For subsidiaries acquired through a business combination not under common control, the operating results and cash flows of the acquiree are included in the consolidated financial statements from the date on which the Group acquires control until the termination of the Group's control over them. In preparing the consolidated financial statements, the financial statements of subsidiaries are adjusted on the basis of the fair value of the identifiable assets, liabilities and contingent liabilities determined at the date of acquisition. | |
| For subsidiaries acquired through a business combination under the same control, the operating results and cash flows of the consolidated party are included in the consolidated financial statements from the beginning of the current period of consolidation. When compiling the comparative consolidated financial statements, the relevant items of the previous financial statements are adjusted to be deemed to have existed since the ultimate controller began to exercise control. | |
| If changes in relevant facts and circumstances result in a change in one or more of the control elements, the Group will reassess whether to control the investee. | |
| Without loss of control, a change in minority shareholders' interests is treated as an equity transaction. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 3 | Summary of significant accounting policies and accounting estimates (Cont’d) |
| (6) | Cash and cash equivalents |
| Cash comprises the Group’s cash on hand and deposits that can be readily withdrawn on demand. Cash equivalents are short-term, highly liquid investments that are readily convertible into known amounts of cash, subject to an insignificant risk of changes in value. | |
| (7) | Foreign currency translation |
| The Group translates foreign currency transactions into its functional currency. | |
| At the time of initial recognition of a foreign currency transaction, the amount in the foreign currency is converted into the base currency of account using the spot exchange rate on the date of the transaction, but the capital invested by the investor in the foreign currency is converted at the spot exchange rate on the date of the transaction. At the balance sheet date, the spot exchange rate at the balance sheet date is used for foreign currency monetary items. The resulting differences in settlement and translation of monetary items shall be included in profit or loss for the current period, except for the differences arising from special foreign currency borrowings related to the acquisition and construction of assets eligible for capitalization, which shall be treated in accordance with the principle of capitalization of borrowing costs. Foreign currency non-monetary items measured at historical cost are still translated using the exchange rate used at the time of initial recognition, and the amount in the base currency of accounting remains unchanged. Foreign currency non-monetary items measured at fair value are translated at the spot exchange rate on the date of fair value determination, and the resulting difference is recognized in profit or loss or other comprehensive income for the current period according to the nature of the non-monetary items. | |
| Cash flows in foreign currencies are translated using the spot exchange rate on the date of the cash flows. The effect of exchange rate changes on cash is presented separately in the statement of cash flows as a reconciliation item. |
| (8) | Financial instruments |
| A 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. A financial asset or a financial liability is recognised when the Group becomes a party to the contractual provisions of the instrument. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 3 | Summary of significant accounting policies and accounting estimates (Cont’d) | |
| (8) | Financial instruments (Cont’d) | |
| (a) | Recognition and derecognition of financial instruments | |
| The Group recognises a financial asset or financial liability when it becomes a party to a contract for a financial instrument. | ||
| If the following conditions are met, the financial assets (or part of the financial assets, or part of a group of similar financial assets) shall be derecognized, that is, the previously recognized financial assets shall be transferred out of the balance sheet: | ||
| (1) Expiration of the right to receive cash flows from financial assets; (2) transferred the right to receive cash flows from financial assets or assumed an obligation under a "transfer agreement" to promptly pay the cash flows received in full to a third party; and substantially transfers substantially all of the risks and rewards of ownership of a financial asset, or, while substantially neither transferring nor retaining substantially all of the risks and rewards of ownership of a financial asset, but relinquishes control of that financial asset. | ||
| If the obligation for the financial liability has been fulfilled, cancelled or expired, the financial liability is derecognized. If an existing financial liability is replaced by another financial liability by the same creditor with substantially almost entirely different terms, or the terms of the existing liability are substantially all modified, such replacement or modification is treated as a derecognition of the original liability and recognition of a new liability, the difference in profit or loss for the current period. | ||
| The purchase and sale of financial assets in the conventional way is recognized and derecognized according to the accounting of the transaction date. The purchase or sale of financial assets in a conventional manner means the purchase or sale of financial assets in accordance with a contract that provides for the delivery of financial assets in accordance with a schedule normally determined by regulations or market practice. A trading day is the date on which the Group commits to buy or sell a financial asset. | ||
| (b) | Classification and measurement of financial assets | |
| At the time of initial recognition, the Group's financial assets are classified according to the Group's business model of managing financial assets and the contractual cash flow characteristics of financial assets: financial assets measured at amortized cost, investments in debt instruments measured at fair value through other comprehensive income, and financial assets measured at fair value through profit or loss. All affected underlying financial assets will be reclassified if and only when the Group changes its business model for managing financial assets. | ||
| Financial assets are measured at fair value at the time of initial recognition, but if the accounts receivable or notes receivable arising from the sale of goods or the provision of services, etc., do not contain a material financing component or do not consider the financing component of no more than one year, the initial measurement shall be carried out according to the transaction price. | ||
| For financial assets measured at fair value through profit or loss, the relevant transaction costs are directly recognized in the current profit or loss, and the transaction costs related to other types of financial assets are included in the initial recognition amount. | ||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 3 | Summary of significant accounting policies and accounting estimates (Cont’d) | ||
| (8) | Financial instruments (Cont’d) | ||
| (b) | Classification and measurement of financial assets (Cont’d) | ||
| The subsequent measurement of a financial asset depends on its classification: | |||
| Investments in debt instruments measured at amortized cost If a financial asset meets the following conditions at the same time, it is classified as a financial asset measured at amortized cost: the business model for managing the financial asset is to collect contractual cash flows as the goal; The contractual terms of the financial asset provide that the cash flows generated on a specific date are only payments of principal and interest based on the amount of principal not paid. Interest income is recognized using the effective interest rate method for such financial assets, and the gains or losses arising from their derecognition, modification or impairment are included in profit or loss for the current period. | |||
| Investments in debt instruments at fair value through other comprehensive income A financial asset is classified as a financial asset measured at fair value through other comprehensive income if it meets the following conditions: the Group's business model for managing the financial asset is to collect both contractual cash flows and sell financial assets; The contractual terms of the financial asset provide that the cash flows generated on a specific date are only payments of principal and interest based on the amount of principal not paid. Interest income is recognized for such financial assets using the effective interest rate method. Except for interest income, impairment losses and foreign exchange differences, which are recognized as gains or losses for the current period, the remaining fair value changes are recognized as other comprehensive income. When a financial asset is derecognized, the accumulated gains or losses previously included in other comprehensive income are transferred out of other comprehensive income and included in profit or loss for the current period. | |||
| Financial assets at fair value through profit or loss The above-mentioned financial assets measured at amortized cost and financial assets other than those measured at fair value through other comprehensive income are classified as financial assets measured at fair value through profit or loss. For such financial assets, fair value is used for subsequent measurement, and all changes in fair value are recognized in profit or loss for the current period. | |||
| (c) | Classification and measurement of financial liabilities | ||
| At the time of initial recognition, the Group's financial liabilities are classified as follows: financial liabilities at fair value through profit or loss, and financial liabilities at amortized cost. For financial liabilities measured at fair value through profit or loss, the relevant transaction expenses are directly recognized in the current profit or loss, and the relevant transaction costs of the financial liabilities measured at amortized cost are included in their initial recognition amount. | |||
| The subsequent measurement of financial liabilities depends on their classification: | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 3 | Summary of significant accounting policies and accounting estimates (Cont’d) |
| (8) | Financial instruments (Cont’d) |
| (c) | Classification and measurement of financial liabilities (Cont’d) |
| Financial liabilities at fair value through profit or loss Financial liabilities measured at fair value through profit or loss, including trading financial liabilities (including derivatives that are financial liabilities) and financial liabilities designated at fair value through profit or loss at the time of initial recognition. Trading financial liabilities (including derivatives that are financial liabilities) are subsequently measured at fair value, and all changes in fair value are recognized in profit or loss for the current period, except in relation to hedge accounting. For financial liabilities designated as measured at fair value through profit or loss, subsequent measurement is carried out at fair value, and other fair value changes are included in profit or loss for the current period, except for the fair value changes caused by changes in the Group's own credit risk, which are included in other comprehensive income. If the inclusion of changes in fair value caused by changes in the Group's own credit risk into other comprehensive income would cause or magnify the accounting mismatch in profit or loss, the Group will include all changes in fair value (including the amount affected by changes in its own credit risk) in profit or loss for the current period. | |
| Financial liabilities measured at amortized cost For such financial liabilities, the effective interest rate method is used, and the subsequent measurement is carried out according to the amortized cost. | |
| (d) | Impairment of financial instruments |
| Methods for determining expected credit losses and accounting treatment methods | |
| The Group conducts impairment treatment and recognizes loss provisions for financial assets measured at amortized cost, debt instrument investments measured at fair value with changes recognized in other comprehensive income, and lease receivables based on expected credit losses. | |
| For receivables that do not contain significant financing components, the Group applies a simplified measurement method to measure the loss provision based on the expected credit loss amount equivalent to the entire duration of the receivable. | |
| For lease receivables and receivables that contain significant financing components, the Group has chosen to apply a simplified measurement approach, measuring the loss provision based on the expected credit loss amount equivalent to the entire duration of the receivable. | |
| Apart from the aforementioned simplified measurement methods for financial assets, the Group assesses at each reporting date whether the credit risk has significantly increased since initial recognition. If the credit risk has not significantly increased since initial recognition, it is classified as Stage 1, and the Group measures the loss allowance at an amount equal to the expected credit losses over the next 12 months, calculating interest income based on the carrying amount and the effective interest rate. If the credit risk has significantly increased since initial recognition but no credit impairment has occurred, it is classified as Stage 2, and the Group measures the loss allowance at an amount equal to the expected credit losses over the entire lifetime, calculating interest income based on the carrying amount and the effective interest rate. If credit impairment occurs after initial recognition, it is classified as Stage 3, and the Group measures the loss allowance at an amount equal to the expected credit losses over the entire lifetime, calculating interest income based on amortized cost and the effective interest rate. For financial instruments that have only low credit risk at the reporting date, the Group assumes that the credit risk has not significantly increased since initial recognition. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 3 | Summary of significant accounting policies and accounting estimates (Cont’d) | Summary of significant accounting policies and accounting estimates (Cont’d) | |||
| (8) | Financial instruments (Cont’d) | Financial instruments (Cont’d) | |||
| (d) | Impairment of financial instruments (Cont’d) | Impairment of financial instruments (Cont’d) | |||
| The Group's methodology for measuring expected credit losses on financial instruments reflects factors such as the weighted average amount of unbiased probabilities determined by evaluating a range of possible outcomes, the time value of money, and reasonable and evidence-based information on past events, current conditions and projections of future economic conditions that are available at the balance sheet date without unnecessary additional cost or effort. | ||
| The credit risk characteristics of various types of financial assets for which the expected credit losses are calculated separately are significantly different from those of other financial assets in this category. When the information of expected credit losses cannot be assessed at a reasonable cost for a single financial asset, the Group divides the receivables into several portfolios based on the credit risk characteristics, calculates the expected credit losses on the basis of the portfolio, and determines the basis and accrual method of the portfolio as follows: | ||
| Banker's Acceptance Portfolio | State-owned banks and joint-stock banks | |
| Commercial Acceptance Bill Portfolio | Customers who purchase using commercial acceptance bills | |
| The domestic general vehicle sales mix | For domestic general automobile procurement customers, the overdue date is used as the starting point of overdue aging | |
| Export general vehicle sales mix | For export general automobile procurement customers, the overdue date is used as the starting point of overdue aging | |
| New energy vehicle sales mix | For new energy vehicle procurement customers, the overdue date is used as the starting point of overdue aging | |
| Component sales mix | For parts procurement customers, the overdue date is used as the starting point of overdue aging | |
| Other receivables combinations | Other receivables of the same nature | |
| (e) | Financial Instrument Offset |
| If the following conditions are met at the same time, the financial assets and financial liabilities are presented in the balance sheet as net amounts after offsetting each other: they have the legal right to offset the recognized amount, and such legal right is currently enforceable; The plan is to settle on a net basis, or at the same time to realise the financial asset and settle the financial liability. |
| When the Group no longer reasonably expects to be able to recover all or part of the contractual cash flows of financial assets, the Group directly writes down the carrying balance of such financial assets. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 3 | Summary of significant accounting policies and accounting estimates (Cont’d) | |
| (8) | Financial instruments (Cont’d) | |
| (f) | Derivative financial instruments | |
| The Group uses derivative financial instruments. Derivative financial instruments are initially measured at the fair value on the date of the signing of the derivative transaction contract, and subsequently measured at their fair value. A derivative financial instrument with a positive fair value is recognized as an asset, and a negative fair value is recognized as a liability. | ||
| Except in relation to hedge accounting, gains or losses arising from changes in the fair value of derivatives are directly recognized in profit or loss for the current period. | ||
| (g) | Transfer of financial assets | |
| If the Group has transferred almost all of the risks and rewards in the ownership of financial assets to the transferee, the recognition of such financial assets shall be terminated; Where almost all of the risks and rewards in the ownership of financial assets are retained, the recognition of the financial assets shall not be terminated. | ||
| If the Group neither transfers nor retains almost all of the risks and rewards in the ownership of the financial assets, it shall be dealt with in the following cases: if it has relinquished control of the financial assets, the financial assets shall be terminated and the assets and liabilities arising therefrom shall be recognized; If the financial asset is not relinquished, the relevant financial asset shall be recognized according to the extent to which it continues to be involved in the transferred financial asset, and the relevant liabilities shall be recognized accordingly. | ||
| (9) | Inventories | |
Inventory includes raw materials, work-in-progress, finished products, low-valueconsumables, materials in transit and consignment materials.
| Inventory is initially measured at cost. Inventory costs include procurement costs, processing costs, and other costs. Inventories are issued, and their actual cost is determined using the weighted average method. Low-value consumables are amortized using the one-time resale method. | |
| The inventory system adopts a perpetual inventory system. | |
| At the balance sheet date, inventories are measured at the lower of cost and net realizable value, and if the cost is higher than the net realizable value, a provision for inventory decline is made and included in profit or loss for the current period. Net realizable value is the estimated selling price of inventory in the ordinary course of business, less the estimated costs to be incurred at completion, estimated selling expenses, and related taxes. Inventories related to product lines manufactured and sold in the same region, with the same or similar end use or purpose, and difficult to measure separately from other items, are provided for inventory decline on a consolidated basis. | |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 3 | Summary of significant accounting policies and accounting estimates (Cont’d) |
| 10) | Long-term equity investments |
| Long-term equity investments comprise the Company’s long-term equity investments in its subsidiaries, and the Group’s long-term equity investments in its associates. | |
| Long-term equity investments are initially measured at the initial investment cost at the time of acquisition. For a long-term equity investment obtained through a business combination under the same control, the initial investment cost shall be the share of the carrying amount of the owner's equity of the merged party in the consolidated financial statements of the ultimate controlling party on the date of consolidation; The difference between the initial investment cost and the carrying amount of the consolidation consideration shall be adjusted to the capital reserve (if it is insufficient to offset the retained earnings). For long-term equity investments obtained through a business combination not under common control, the initial investment cost shall be the cost of the merger (if the business combination of enterprises not under the same control is realized step by step through multiple transactions, the sum of the carrying amount of the equity investment of the acquiree held before the purchase date and the cost of the new investment on the purchase date shall be the initial investment cost). For long-term equity investments obtained by means other than those formed by business combinations, the initial investment costs shall be determined in accordance with the following methods: if they are obtained by paying cash, the initial investment costs shall be the purchase price actually paid and the expenses, taxes and other necessary expenses directly related to the acquisition of the long-term equity investment; If the issuance of equity securities is obtained, the fair value of the equity securities issued shall be used as the initial investment cost. | |
| The long-term equity investments that the Company is able to control the investee are accounted for using the cost method in the Company's individual financial statements. Control refers to having power over the investee, enjoying variable returns by participating in the relevant activities of the investee, and having the ability to use the power over the investee to influence the amount of returns. | |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 3 | Summary of significant accounting policies and accounting estimates (Cont’d) |
| (10) | Long-term equity investments (Cont’d) |
| When the cost method is used, long-term equity investments are valued at the initial investment cost. If the investment is increased or recovered, the cost of long-term equity investment shall be adjusted. The cash dividends or profits declared by the investee are recognized as investment income for the current period. | |
| If the Group has a significant influence on the investee, the long-term equity investment is accounted for by the equity method. Significant influence refers to having the power to participate in decision-making on the financial and operational policies of the investee, but not being able to control or jointly control the formulation of these policies with other parties. | |
| When the equity method is adopted, if the initial investment cost of a long-term equity investment is greater than the fair value share of the investee's identifiable net assets at the time of investment, it shall be included in the initial investment cost of the long-term equity investment; If the initial investment cost of a long-term equity investment is less than the fair value share of the investee's identifiable net assets at the time of investment, the difference shall be included in the profit or loss for the current period, and the cost of the long-term equity investment shall be adjusted at the same time. | |
| When the equity method is adopted, after the long-term equity investment is obtained, the investment profit and loss and other comprehensive income shall be recognized separately and the book value of the long-term equity investment shall be adjusted according to the share of the net profit or loss and other comprehensive income realized by the investee that should be enjoyed or shared. When recognizing the share of the investee's net profit or loss, the investee's net profit shall be recognized after adjustment based on the fair value of the investee's identifiable assets at the time of acquisition of the investment, in accordance with the Group's accounting policies and accounting periods, and offsetting the share attributable to the investor in proportion to the internal transaction gains and losses incurred with associates (except that if the internal transaction loss is an asset impairment loss, it shall be recognized in full), and the net profit of the investee shall be recognized after adjustment, except that the assets invested or sold constitute business. The carrying amount of the long-term equity investment shall be reduced accordingly based on the profits or cash dividends declared by the investee. The Group recognises that the net loss incurred by the investee is limited to the carrying amount of the long-term equity investment and other long-term equity that substantially constitutes a net investment in the investee to be written down to zero, unless the Group has the obligation to bear additional losses. For other changes in shareholders' equity of the investee other than net profit or loss, other comprehensive income and profit distribution, the book value of long-term equity investment shall be adjusted and included in shareholders' equity. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 3 | Summary of significant accounting policies and accounting estimates (Cont’d) | |||||
| (11) | Fixed assets | |||||
| Fixed assets are recognised only when the economic benefits associated with them are likely to flow into the Group and their costs can be reliably measured. Subsequent expenses related to fixed assets that meet the recognition conditions shall be included in the cost of fixed assets, and the book value of the replaced part shall be derecognized; Otherwise, it will be included in the current profit or loss or the cost of related assets according to the beneficiary object when it occurs. | ||||||
| Fixed assets are initially measured at cost. The cost of acquiring a fixed asset includes the purchase price, relevant taxes, and other expenses directly attributable to the asset incurred before the fixed asset reaches its intended useable state. | ||||||
| The depreciation of fixed assets is calculated using the average life method, and the useful life, estimated net residual value rate and annual depreciation rate of various types of fixed assets are as follows: | ||||||
| Estimated useful lives | Estimated net residual values | Annual depreciation rates | ||||
| Buildings | 35 to 40 years | 4% | 2.4% to 2.7% | |||
| Machinery and equipment | 10 to 15 years | 4% | 6.4% to 9.6% | |||
| Vehicles | 2 to 10 years | 4% to 22.32% | 9.6% to 42.2% | |||
| Moulds | 5 years | - | 20% | |||
| Electronic and other equipment | 5 to 7 years | 4% | 13.7% to 19.2% | |||
| The estimated useful life and the estimated net residual value of a fixed asset and the depreciation method applied to the asset are reviewed and adjusted as appropriate at each year-end. | ||||||
| (12) | Construction in progress | |||||
| Construction in progress is measured at actual cost. Actual cost comprises construction costs, installation costs, borrowing costs that are eligible for capitalisation and other costs necessary to bring the construction in progress ready for their intended use. Construction in progress is transferred to fixed assets when the assets are ready for their intended use, and depreciation is charged starting from the following month. The carrying amount of construction in progress is reduced to the recoverable amount when the recoverable amount is below the carrying amount (Note 3(15)). | ||||||
| The criteria for transferring construction in progress to fixed assets when they reach their intended usable state are as follows: | ||||||
| Buildings | The earlier of completion acceptance or actual commencement of use. | |||||
| Machinery and equipment | The earlier of completion of installation and acceptance or actual commencement of use. | |||||
| Vehicles | The earlier of completion of installation and acceptance or actual commencement of use. | |||||
| Moulds | The earlier of completion of installation and acceptance or actual commencement of use. | |||||
| Electronic and other equipment | The earlier of completion of installation and acceptance or actual commencement of use. | |||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 3 | Summary of significant accounting policies and accounting estimates (Cont’d) |
| (13) | Borrowing costs |
| The borrowing costs that can be directly attributable to the acquisition, construction or production of assets that meet the conditions for capitalization shall be capitalized, and other borrowing costs shall be included in the profit or loss for the current period. | |
| Borrowing costs are capitalized when capital expenditures and borrowing costs have been incurred and the acquisition, construction or production activities necessary to bring the asset to its intended usable or marketable condition have commenced. |
| When the acquisition, construction or production of assets eligible for capitalization reaches the intended usable or saleable state, the borrowing costs shall cease to be capitalized. Borrowing costs incurred thereafter are included in profit or loss for the current period. | |||||||
| During the capitalization period, the amount of interest capitalization in each accounting period shall be determined according to the following method: the amount of special borrowings shall be determined by deducting the interest income or investment income of temporary deposits actually incurred in the current period; The general borrowings occupied shall be calculated and determined on the basis of the weighted average of the accumulated asset expenditures exceeding the portion of special borrowings multiplied by the weighted average real interest rate of the general borrowings occupied. | |||||||
| In the process of acquisition, construction or production of assets eligible for capitalization, if there is an abnormal interruption other than the procedures necessary to reach the intended usable or saleable state, and the interruption period exceeds 3 consecutive months, the capitalization of borrowing costs shall be suspended. Borrowing costs incurred during the interruption period are recognized as expenses and are included in profit or loss for the current period until the acquisition or construction of assets or production activities resume. | |||||||
| (14) | Intangible assets | ||||||
| (a) | Useful life of intangible assets | ||||||
| Intangible assets are amortized using the straight-line method over their useful lives, and their useful lives are as follows: | |||||||
| Estimated useful lives | Basis for determination | ||||||
| Land use rights | 50 years | The term of the land use right | |||||
| Software Usage Fees | 5 years | Estimated period of use | |||||
| Non-patented technology | 5-7 years | Estimated period of use combined with the product life span | |||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 3 | Summary of significant accounting policies and accounting estimates (Cont’d) |
| (14) | Intangible assets (Cont’d) |
| (b) | Research and development |
| The Group's R&D expenditure mainly includes the materials used by the Group in carrying out R&D activities, the remuneration of employees in the R&D department, the depreciation and amortization of assets such as equipment and software used in R&D, R&D design expenses and R&D testing. | |
| The expenses in the planned investigation, evaluation and selection stages for the study of the production process of automobile-related products are the expenses in the research stage and are included in the profit or loss for the current period when incurred; Before large-scale production, the expenditure in the design and testing stages related to the final application of the production process of automobile-related products is the expenditure in the development stage, and if the following conditions are met, it shall be capitalized: |
| ? The development of the production process of automobile-related products has been fully demonstrated by the technical team; ? The management has the intention to complete the development, use or sale of the production process of automotive-related products; ? The research and analysis of the preliminary market research shows that the products produced by the production process of automobile-related products have the ability to be marketed; ? Sufficient technical and financial support for the development of production processes for automotive-related products and subsequent large-scale production; and ? Expenditures on the development of production processes for automotive-related products can be reliably aggregated. | |
| Expenses in the development stage that do not meet the above conditions shall be included in the profit or loss for the current period when incurred. Development expenditures that have been recognized in profit or loss in prior periods are not rerecognized as assets in subsequent periods. Expenditures incurred in the development phase that have been capitalized are shown on the balance sheet as development expenditures and are converted into intangible assets from the date on which the project reaches its intended use. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 3 | Summary of significant accounting policies and accounting estimates (Cont’d) |
| (15) | Impairment of assets |
| The impairment of assets other than inventories, deferred income tax and financial assets shall be determined according to the following methods: whether there are signs of possible impairment of assets at the balance sheet date, and if there are signs of impairment, the Group will estimate the recoverable amount and conduct impairment tests; Impairment tests shall be carried out at least at the end of each year for goodwill formed as a result of business combinations, intangible assets with indefinite useful lives and intangible assets that have not yet reached a usable state, regardless of whether there is any indication of impairment. | |
| The recoverable amount is determined based on the higher of the fair value of the asset less disposal costs and the present value of the asset's projected future cash flows. The Group estimates its recoverable amount on a single asset basis; Where it is difficult to estimate the recoverable amount of a single asset, the recoverable amount of the asset group shall be determined on the basis of the asset group to which the asset belongs. The determination of the asset group is based on whether the main cash inflow generated by the asset group is independent of other assets or the cash inflow of the asset group. | |
| When the recoverable amount of an asset or asset group is lower than its carrying amount, the Group writes down its carrying amount to the recoverable amount, and the written down amount is included in the profit or loss for the current period, and the corresponding asset impairment provision is made. | |
| For the impairment test of goodwill, the carrying amount of goodwill is allocated to the relevant asset group or combination of asset groups in a reasonable manner from the date of purchase. The relevant asset group or combination of asset groups is the asset group or combination of asset groups that can benefit from the synergies of the business combination, and is not larger than the operating segment determined by the Group. |
| Compare the carrying amount and recoverable amount of the asset group or asset group combination containing goodwill, if the recoverable amount is lower than the book value, the impairment loss amount shall first be offset against the carrying amount of the goodwill allocated to the asset group or asset group combination, and then the carrying amount of other assets shall be offset proportionally according to the proportion of the carrying amount of other assets in the asset group or asset group portfolio except goodwill. | ||
| Once the above-mentioned asset impairment loss is recognized, it will not be reversed in subsequent accounting periods. | ||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 3 | Summary of significant accounting policies and accounting estimates (Cont’d) | ||
| (16) | Employee compensation | ||
| Employee remuneration refers to various forms of remuneration or compensation given by the Group for the services provided by employees or for the termination of employment relations, including short-term remuneration, post-employment benefits and severance benefits. | |||
| (a) | Short-term compensation | ||
| Short-term remuneration includes wages, bonuses, allowances and subsidies, employee welfare expenses, medical insurance premiums, work-related injury insurance premiums, housing provident fund, trade union and education funds, short-term paid absences, etc. During the accounting period in which employees provide services, the Group recognises the actual short-term remuneration as a liability and includes it in the profit or loss for the current period or the cost of related assets. Among them, non-monetary benefits are measured at fair value. | |||
| (b) | Post-employment benefits | ||
| The Group classifies post-employment benefit plans into defined contribution plans and defined benefit plans. A defined deposit and withdrawal plan is a post-employment benefit plan in which the Group is no longer obligated to make further payments after depositing a fixed fee into an independent fund; A defined benefit plan is a post-employment benefit plan in addition to a defined contribution plan. During the reporting period, the basic endowment insurance and unemployment insurance paid for employees were all part of the set deposit plan. Supplemental retirement benefits for employees are defined benefit plans. | |||
| (i) | Defined contribution plans | ||
| Basic pensions | |||
| The Group’s employees participate in the basic pension plan set up and administered by local authorities of Ministry of Human Resources and Social Security. Monthly payments of premiums on the basic pensions are calculated according to the bases and percentage prescribed by the relevant local authorities. When employees retire, the relevant local authorities are obliged to pay the basic pensions to them. The amounts based on the above calculations are recognised as liabilities in the accounting period in which the service has been rendered by the employees, with a corresponding charge to the profit or loss for the current period or the cost of relevant assets. | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 3 | Summary of significant accounting policies and accounting estimates (Cont’d) | |||
| (16) | Employee compensation (Cont’d) | |||
| (ii) | Defined benefit plans | |||
| The Group also provides employees with supplementary retirement benefits in addition to the insurance system prescribed by the State. Such supplementary retirement benefits belong to defined benefit plans. The defined benefit liabilities recognised on the balance sheet represent the present value of defined benefit obligations less the fair value of the plan assets. The defined benefit obligations are calculated annually by an independent actuary using projected unit credit method at the interest rate of treasury bonds with similar obligation term and currency. Service costs related to supplementary retirement benefits (including current service costs, historical service costs and settled gains or losses) and net interest are recognised in profit or loss for the current period or the cost of related assets, and changes arising from remeasurement of net liabilities or net assets of defined benefit plans are recognised in other comprehensive income. | ||||
| (c) | Termination benefits | |||
| The Group provides compensation for terminating the employment relationship with employees before the end of the employment contracts or as an offer to encourage employees to accept voluntary redundancy before the end of the employment contracts. The Group recognises a liability arising from compensation for termination of the employment relationship with employees, with a corresponding charge to profit or loss for the current period at the earlier of the following dates: 1) when the Group cannot unilaterally withdraw an employment termination plan or a curtailment proposal; 2) when the Group recognises costs or expenses for a restructuring that involves the payment of termination benefits. | ||||
| Internal retirement benefits | ||||
| The Group provides internal retirement benefits to employees who have received internal retirement arrangements. Internal retirement benefits refer to the wages paid and social insurance premiums paid to employees who have not reached the retirement age prescribed by the state and who have voluntarily quit their jobs with the approval of the Group's management. The Group pays internal retirement benefits to employees from the date of commencement of the internal retirement arrangement until the employees reach the normal retirement age. For the internal retirement benefits, the Group will account for the retirement benefits by comparison, and when the conditions for the recognition of the retirement benefits are met, the wages and social insurance premiums to be paid by the employees during the period from the date of cessation of the employee's services to the normal retirement date will be recognized as liabilities and included in the profit or loss for the current period in a lump sum. Changes in actuarial assumptions for retirement benefits and differences caused by adjustments to benefit standards are recognized in profit or loss for the current period when they occur. | ||||
| Severance benefits expected to be paid within one year from the balance sheet date are shown as remuneration payable to employees. | ||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 3 | Summary of significant accounting policies and accounting estimates (Cont’d) |
| (17) | Provisions |
| Provisions for product warranties, compensation to suppliers, etc. are recognised when the Group has a present obligation, it is probable that an outflow of economic benefits will be required to settle the obligation, and the amount of the obligation can be measured reliably. | |
| A provision is initially measured at the best estimate of the expenditure required to settle the related present obligation. Factors on a contingency, such as the risks, uncertainties and the time value of money, are taken into account as a whole in reaching the best estimate of a provision. Where the effect of the time value of money is material, the best estimate is determined by discounting the related future cash outflows. The increase in the discounted amount of the provision arising from passage of time is recognised as interest expense. | |
| The carrying amount of provisions is reviewed at each balance sheet date and adjusted to reflect the current best estimate. | |
| The provisions expected to be settled within one year since the balance sheet date are classified as other current liabilities. |
| (18) | Revenue |
| The Group sells automobiles and automobile parts to distributors or end customers. In addition, the Group also provides customers with auto maintenance and additional quality warranty services. The Group recognises revenue at the amount of the consideration that is entitled to be charged by the Group as expected when the customer obtains control over relevant goods or services. | |
| Where two or more obligations are included in a contract between the Group and the customers, at the beginning date of the contract, the Group allocates the transaction price to individual obligation in the relative proportion to the individual selling prices of products or services committed in each individual obligation. When the individual selling price is unobservable, the Group makes reasonable estimates on the individual selling price with comprehensive consideration to all available information, and by using market adjustment method, cost plus method, etc. | |
| (a) | Sale of automobiles and automobile parts to distributors and end customers |
| The Group sells automobiles and automobile parts to distributors and end customers. According to the contract, the delivery is completed after the products are delivered at the contracted delivery location and acceptance by both parties. The Group recognises the revenue at the timing of delivery completion. The credit periods granted by the Group to distributors and end customers are generally within one year, which is consistent with the industry practice, and there is no significant financing component. The Group provides product warranties for automobiles and automobile parts as required by laws and regulations and recognises the corresponding provisions (Note 3(17)). The Group provides distributors and end customers with sales discounts based on sales volume, and related revenue is recognised at contract consideration net of the discount amount estimated based on historical experience and using the expected value method. | |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 3 | Summary of significant accounting policies and accounting estimates (Cont’d) | |
| (18) | Revenue (Cont’d) | |
| (b) | Rendering of services | |
| The Group provides customers with automobile transportation, automobile maintenance and additional quality warranty services, and the revenue is recognised based on the progress of service provision within a certain period. According to the nature of the service provided, the performance progress is determined in accordance with the value of the labour provided to the customer. | ||
| When the Group recognises revenue based on the stage of completion, the amount with unconditional collection right obtained by the Group is recognised as accounts receivable, and the rest is recognised as contract assets. Meanwhile, loss provision for accounts receivable is recognised on the basis of ECL (Note 3(8)). If the contract price received or receivable exceeds the amount for the completed service, the excess portion will be recognised as contract liabilities. Contract assets and contract liabilities under the same contract are presented on a net basis. | ||
| (19) | Government grants | |
| Government subsidies are recognized when the conditions attached to them can be met and can be received. If the government subsidy is a monetary asset, it shall be measured according to the amount received or receivable. If the government subsidy is a non-monetary asset, it shall be measured at fair value; If the fair value cannot be reliably obtained, it shall be measured according to the nominal amount. | ||
| If the government documents stipulate that it is used for the acquisition, construction or other formation of long-term assets, it shall be regarded as a government subsidy related to the assets; If the government documents are not clear, the judgment shall be made on the basis of the basic conditions that must be met to obtain the subsidy, and the basic condition of the formation of long-term assets through acquisition, construction or other means shall be regarded as the government subsidy related to the assets, and the other shall be regarded as the government subsidy related to the income. | ||
| If the government subsidy related to the income is used to compensate for the relevant costs, expenses or losses in subsequent periods, it shall be recognized as deferred income, and shall be included in the profit or loss for the current period or offset the relevant costs in the period in which the relevant costs, expenses or losses are recognized; If it is used to compensate for the relevant costs, expenses or losses that have been incurred, it shall be directly included in the profit or loss for the current period or offset the relevant costs. | ||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 3 | Summary of significant accounting policies and accounting estimates (Cont’d) |
| (19) | Government grants (Cont’d) |
| Asset-related government subsidies to offset the carrying amount of the underlying assets; or recognized as deferred income, which shall be included in profit or loss in instalments in a reasonable and systematic manner during the useful life of the relevant asset (except that the government subsidy measured according to the nominal amount shall be directly included in the profit or loss for the current period), and if the relevant asset is sold, transferred, scrapped or damaged before the end of its useful life, the balance of the relevant deferred income that has not yet been distributed shall be transferred to the profit or loss of the current period of asset disposal. | |
| If the finance department allocates the subsidized funds to the lending bank, and the lending bank provides loans to the Group at a preferential policy interest rate, the actual amount of the borrowed money received shall be used as the recorded value of the borrowing, and the relevant borrowing costs shall be calculated according to the principal of the loan and the preferential interest rate of the policy. | |
| (20) | Deferred income tax |
| The Group adopts the balance sheet obligation method to provide deferred income tax based on the temporary differences between the carrying amount of assets and liabilities at the balance sheet date and the tax base, as well as the difference between the carrying amount and the tax basis of items that are not recognized as assets and liabilities but whose tax basis can be determined in accordance with the provisions of the tax law. | |
| Deferred tax liabilities are recognized for all kinds of taxable temporary differences, unless: | |
| ? A taxable temporary difference arises in the following transactions: the initial recognition of goodwill, or the initial recognition of assets or liabilities arising in a single transaction that is not a business combination, the transaction occurs that does not affect neither the accounting profit nor the taxable income or deductible loss, and the assets and liabilities initially recognized do not result in the creation of an equal amount of taxable temporary differences and deductible temporary differences; ? For taxable temporary differences related to investments in subsidiaries and associates, the timing of the reversal of the temporary difference is controllable and the temporary difference is likely not to be reversed in the foreseeable future. | |
| For deductible temporary differences, deductible losses and tax credits that can be carried forward to future years, the Group recognises deferred tax assets to the extent that it is likely to obtain future taxable income to offset the deductible temporary differences, deductible losses and tax credits, unless: | |
| ? A deductible temporary difference arises in a single transaction that is not a business combination, the transaction does not affect the accounting profit or taxable income or deductible loss at the time of the transaction, and the assets and liabilities initially recognized do not result in the creation of an equal amount of taxable temporary difference and a deductible temporary difference; ? For deductible temporary differences related to investments in subsidiaries and associates, the temporary differences are likely to be reversed in the foreseeable future and taxable income to be used to offset the temporary differences is likely to be obtained in the future. | |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 3 | Summary of significant accounting policies and accounting estimates (Cont’d) |
| (20) | Deferred income tax (Cont’d) |
| The Group's deferred tax assets and deferred tax liabilities are measured at the applicable tax rate during the period in which the assets are expected to be recovered or the liabilities are liquidated in accordance with the provisions of the tax law, and reflect the income tax impact of the expected recovery of assets or the settlement of liabilities at the balance sheet date. | |
| At the balance sheet date, the Group reviews the carrying amount of deferred tax assets and writes down the carrying amount of deferred tax assets if it is likely that sufficient taxable income will not be available in future periods to offset the benefits of deferred tax assets. At the balance sheet date, the Group re-evaluates the unrecognised deferred tax assets to the extent that it is likely to obtain sufficient taxable income to be able to reverse all or part of the deferred tax assets. | |
| Deferred tax assets and deferred tax liabilities are presented on a net basis when the following conditions are met: they have the legal right to settle current income tax assets and current income tax liabilities on a net basis; Deferred tax assets and deferred tax liabilities are related to the income tax levied by the same tax collection and administration department on the same taxable entity. | |
| (21) | Leases |
| At the commencement date of the contract, the Group assesses whether the contract is a lease or a included lease and if a party to the contract relinquishes the right to control the use of one or more identified assets for a certain period of time in exchange for consideration, the contract is a lease or a included lease. |
| (a) | As the lessee |
| In addition to short-term leases and leases of low-value assets, the Group recognises right-of-use assets and lease liabilities for leases. | |
| If the contract includes both lease and non-lease parts, the Group shall apportion the contract consideration according to the relative proportion of the individual prices of each part. | |
| At the commencement date of the lease term, the Group recognises its right to use the leased asset during the lease term as a right-of-use asset, which is initially measured at cost. The cost of a right-of-use asset includes: the initial measurement amount of the lease liability; the amount of the lease payment paid on or before the start date of the lease term (less the amount in relation to the lease incentive received); Initial direct expenses incurred by the lessee; The costs that the lessee expects to incur in order to dismantle and remove the leased asset, restore the premises on which the leased asset is located, or restore the leased asset to the condition agreed in the terms of the lease. If the Group remeasures lease liabilities due to changes in lease payments, the carrying amount of right-of-use assets will be adjusted accordingly. Subsequently, the Group adopted the average life method to provide depreciation for right-of-use assets. If it can be reasonably determined that the ownership of the leased assets will be acquired at the end of the lease term, the Group shall accrue depreciation during the remaining useful life of the leased assets. If it is not reasonably certain that the ownership of the leased assets can be obtained at the end of the lease term, the Group shall accrue depreciation during the period between the lease term and the remaining useful life of the leased assets. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 3 | Summary of significant accounting policies and accounting estimates (Cont’d) |
| (21) | Leases (Cont’d) |
| At the commencement date of the lease term, the Group recognises the present value of the outstanding lease payments as lease liabilities, excluding short-term leases and leases of low-value assets. Lease payments include fixed payments and substantial fixed payments net of lease incentives, variable lease payments depending on the index or ratio, expected payments based on the residual value of the guarantee, and the exercise price of the purchase option or the exercise of the termination option, provided that the Group reasonably determines that the option will be exercised or the lease term reflects that the Group will exercise the lease termination option. Variable lease payments that are not included in the measurement of lease liabilities are recognized in profit or loss for the current period when actually incurred, unless otherwise specified in the cost of the relevant assets. The Group remeasures lease liabilities based on the present value of the changed lease payments when there is a change in the amount of the real fixed payment, a change in the estimated amount payable for the residual value of the guarantee, a change in the index or ratio used to determine the amount of the lease payment, and a change in the evaluation result or actual exercise of the option to purchase, renew or terminate the option. | |
| The Group recognises a lease with a lease term of not more than 12 months and without a purchase option as a short-term lease on the commencement date of the lease term; When a single leased asset is a brand new asset, a lease with a lower value is recognized as a lease of a low-value asset. The Group chooses not to recognise right-of-use assets and lease liabilities for short-term leases and leases of low-value assets. The cost of the relevant asset or current profit or loss is recognized on a straight-line basis for each period of the lease term. | |
| (b) | As the lessor |
| Leases that transfer substantially all of the risks and rewards associated with ownership of the leased assets at the lease commencement date are finance leases, and all other leases are operating leases. | |
| The rental income from operating leases is recognized as profit or loss for the current period on a straight-line basis for each period of the lease term, and the variable lease payments that are not included in the lease receipts are recognized in the profit or loss for the current period when actually incurred. Initial direct expenses are capitalised and amortized over the lease term on the same basis as rental income recognition, and are included in profit or loss for the current period. | |
| On the commencement date of the lease term, the Group recognized the financial lease receivables for the financial lease and terminated the recognition of the financial lease assets. When the Group initially measures the financial lease receivables, the net lease investment is used as the recorded value of the financial lease receivables. Net lease investment is the sum of the unsecured residual value and the present value of lease receipts not yet received at the start date of the lease term discounted at the interest rate embedded in the lease, including initial direct costs. The Group calculates and recognises interest income for each period of the lease term at a fixed periodic interest rate. Variable lease payments made by the Group that are not included in the measurement of net lease investments are recognized in profit or loss for the current period when they are actually incurred. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 3 | Summary of significant accounting policies and accounting estimates (Cont’d) |
| (22) | Safety production fee |
| The safety production fee withdrawn in accordance with the regulations shall be included in the cost of the relevant product or the current profit or loss, and shall be included in the special reserve; When using, distinguish whether fixed assets are formed and deal with them separately: if it is an expense expenditure, it will directly offset the special reserves; If fixed assets are formed, the expenses incurred shall be collected, and the fixed assets shall be recognized when they reach the intended usable state, and the equivalent special reserves shall be written off and the equivalent accumulated depreciation shall be recognized. | |
| (23) | Fair value measurement |
| Assets and liabilities measured or disclosed at fair value in the financial statements are determined based on the lowest level of inputs that are material to the fair value measurement as a whole: Level 1 inputs, which are unadjusted quotes in active markets for the same assets or liabilities that can be obtained at the measurement date; Level 2 inputs, which are directly or indirectly observable inputs for related assets or liabilities other than Level 1 inputs; The third level of input value, the unobservable input value of the relevant asset or liability. | |
| At each balance sheet date, the Group re-evaluates the assets and liabilities recognized in the financial statements at fair value on an ongoing basis to determine whether there is a transition between the levels of fair value measurement. |
| (24) | Critical accounting estimates and judgements |
| The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the amounts and disclosures of income, expenses, assets and liabilities, as well as the disclosure of contingent liabilities at the balance sheet date. The results of these uncertainties in assumptions and estimates may result in significant adjustments to the carrying amounts of the assets or liabilities affected in the future. | |
| (a) | Critical judgements in applying the accounting policies |
| In applying the Group's accounting policies, management has made the following judgments that have a material impact on the amounts recognized in the financial statements: | |
| Business model | |
| The classification of financial assets at the time of initial recognition depends on the Group's business model for managing financial assets, and in determining the business model, the Group considers the manner in which the performance of financial assets is evaluated and reported to key management personnel, the risks affecting the performance of financial assets and how they are managed, and the manner in which relevant business managers are remunerated. In assessing whether the objective is to collect contractual cash flows, the Group needs to analyze and determine the reason, timing, frequency and value of the sale of financial assets before the maturity date. | |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 3 | Summary of significant accounting policies and accounting estimates (Cont’d) |
| (24) | Critical accounting estimates and judgements (Cont’d) |
| Characteristics of contractual cash flows | |
| The classification of financial assets at the time of initial recognition depends on the contractual cash flow characteristics of the financial assets, and it is necessary to determine whether the contractual cash flows are only the payment of principal and interest based on the outstanding principal, whether there is a significant difference compared with the benchmark cash flow when the time value of money is included in the assessment of the time value of money, and whether the fair value of the prepayment feature is very small in the case of financial assets containing prepayment features. | |
| Judgment of a significant increase in credit risk and credit impairment that has occurred | |
| In distinguishing the different stages of financial instruments, the Group's judgment on the significant increase in credit risk and the credit impairment that has occurred is as follows: | |
| The Group's main criteria for judging a significant increase in credit risk are that the number of overdue days exceeds 30 days, or there is a significant change in one or more of the following indicators: the debtor's business environment, internal and external credit ratings, significant changes in actual or expected operating results, and a significant decline in the value of collateral or the credit rating of the guarantor that will affect the probability of default. | |
| The Group's main criteria for judging that credit impairment has occurred are that the number of overdue days exceeds 90 days (i.e., default has occurred), or one or more of the following conditions are met: the debtor has significant financial difficulties, undergoes other debt restructuring or is likely to go bankrupt. | |
| (b) | Uncertainty in the estimate |
| The following are key assumptions about the future at the balance sheet date and other key sources of uncertainty in the estimates that may result in significant adjustments to the carrying amounts of assets and liabilities in future periods. | |
| Impairment of financial instruments | |
| The Group uses an expected credit loss model to assess the impairment of financial instruments, and the application of the expected credit loss model requires significant judgment and estimation, taking into account all reasonable and substantiated information, including forward-looking information. In making these judgments and estimates, the Group inferred the expected changes in the debtor's credit risk based on historical repayment data combined with economic policies, macroeconomic indicators, industry risks and other factors. Different estimates may affect the provision for impairment, and the provision for impairment may not be equal to the actual amount of impairment losses in the future. | |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 3 | Summary of significant accounting policies and accounting estimates (Cont’d) |
| (24) | Critical accounting estimates and judgements (Cont’d) |
| Impairment of non-current assets other than financial assets (other than goodwill) | |
| The Group determines whether there is any indication of possible impairment of non-current assets other than financial assets at the balance sheet date. For intangible assets with an indefinite useful life, in addition to the impairment test conducted annually, when there are signs of impairment, the impairment test is also conducted. Other non-current assets, other than financial assets, are tested for impairment when there are indications that their book value is not recoverable. Impairment occurs when the carrying amount of an asset or group of assets is higher than the recoverable amount, i.e., the higher of the fair value less disposal costs and the present value of the projected future cash flows. The fair value, net of disposal costs, is determined by reference to the agreed sale price or observable market price of a similar asset in an arm's length transaction, less incremental costs directly attributable to the disposal of the asset. When estimating the present value of future cash flows, management must estimate the projected future cash flows of the asset or group of assets and select an appropriate discount rate to determine the present value of future cash flows. | |
| Development expenditures | |
| When determining the amount to be capitalized, management must make assumptions regarding the estimated future cash flows of the asset, the applicable discount rate, and the expected benefit period. | |
| Deferred tax assets | |
| To the extent that there is likely to be sufficient taxable income to cover the deductible loss, deferred tax assets should be recognised for all unutilised deductible losses. This requires management to use a great deal of judgment to estimate the timing and amount of taxable income to be obtained in the future, combined with a tax planning strategy, to determine the amount of deferred tax assets to be recognized. | |
| Warranty | |
| For a portfolio of contracts with similar characteristics, the Group makes a reasonable estimate of the warranty rate based on historical warranty data, current warranty situation, and all relevant information such as product improvement and market changes. The estimated warranty rates may not be equal to the actual future warranty rates, and the Group has re-evaluated the warranty rates at least at each balance sheet date and determined the projected liabilities based on the re-assessed warranty rates. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 3 | Summary of significant accounting policies and accounting estimates (Cont’d) | ||||||||||||||||
| (25) | Changes in accounting policies and accounting estimates | ||||||||||||||||
| (a) | Changes in accounting policies | ||||||||||||||||
| Presentation of financial statements | |||||||||||||||||
| According to the Interpretation No. 18 of Accounting Standards for Business Enterprises, the Group reclassified the warranty expense from "selling expenses" to "operating costs", and adjusted the comparative data of the financial statements retrospectively. | |||||||||||||||||
| The main effects of retrospective adjustments arising from the above changes in accounting policies on the financial statements are as follows: | |||||||||||||||||
| The Group | |||||||||||||||||
| 2024 | |||||||||||||||||
| Before the change in accounting policies | Changes in Accounting Policies | After the change in accounting policies | |||||||||||||||
| Amount incurred during the year | Amount incurred during the year | ||||||||||||||||
| Cost of sales | 32,716,288,196 | 235,456,948 | 32,951,745,144 | ||||||||||||||
| Selling expenses | 1,294,405,541 | (235,456,948 | ) | 1,058,948,593 | |||||||||||||
| 2023 | |||||||||||||||||
| Before the change in accounting policies | Changes in Accounting Policies | After the change in accounting policies | |||||||||||||||
| Amount incurred during the year | Amount incurred during the year | ||||||||||||||||
| Cost of sales | 28,065,528,223 | 330,658,844 | 28,396,187,067 | ||||||||||||||
| Selling expenses | 1,466,692,447 | (330,658,844 | ) | 1,136,033,603 | |||||||||||||
| The Company | |||||||||||||||||
| 2024 | |||||||||||||||||
| Before the change in accounting policies | Changes in Accounting Policies | After the change in accounting policies | |||||||||||||||
| Amount incurred during the year | Amount incurred during the year | ||||||||||||||||
| Cost of sales | 32,447,254,140 | 18,991,733 | 32,466,245,873 | ||||||||||||||
| Selling expenses | 128,660,420 | (18,991,733 | ) | 109,668,687 | |||||||||||||
| 2023 | |||||||||||||||||
| Before the change in accounting policies | Changes in Accounting Policies | After the change in accounting policies | |||||||||||||||
| Amount incurred during the year | Amount incurred during the year | ||||||||||||||||
| Cost of Sales | 27,518,938,281 | 15,480,904 | 27,534,419,185 | ||||||||||||||
| Selling expenses | 144,390,059 | (15,480,904 | ) | 128,909,155 | |||||||||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 4 | Taxation | ||
| (1) | The main categories and rates of taxes applicable to the Group are set out below: | ||
| Category | Taxation basis | Tax rate | |
| Value-added tax (“VAT”) | The difference between the sales amount and the output tax calculated at the applicable tax rate, after deducting the input tax amount for which the credit is granted | 13%, 9% and 6% | |
| Consumption tax | Taxable sales amount | 9%, 5% and 3% | |
| City maintenance and construction tax | The payment amount of VAT and consumption tax | 7% and 5% | |
| Enterprise income tax | Taxable income | 25% and 15% | |
| (2) | Tax preference | ||
| According to the relevant regulations of the national high-tech certification and related preferential tax policies, the company has passed the certification of high-tech enterprises in 2024 and is valid for three years. The corporate income tax rate applicable to the Company in for the year of 2024 is 15% (2023: 15%). | |||
| In 2024, except for the Company, the Company’s wholly-owned companies, including JMC Heavy Duty Vehicle Co., Ltd. (“JMCH”), Jiangling Motor Sales Co., Ltd. (“JMCS”), Shenzhen Fujiang New Energy Automobile Sales Co., Ltd. (“SZFJ”), Guangzhou Fujiang New Energy Automobile Sales Co., Ltd. (“GZFJ”), and Jiangling Ford Automobile Technology (Shanghai) Co., Ltd. (“Jiangling Ford (Shanghai)”) were subject to the enterprise income tax at the rate of 25% (2023: 25%). | |||
| Pursuant to the Announcement on Clarifying the Additional Value-added Tax Credit Policy for the Advanced Manufacturing Enterprises (Cai Shui [2023] No. 43) jointly issued by the Ministry of Finance and the State Taxation Administration, the Company, as an advanced manufacturing enterprise, from January 1, 2023 to December 31, 2027, the Company will add 5% of the deductible input tax for the current period to offset the VAT payable. | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements | |||
| (1) | Cash at bank and on hand | |||
| 31 December 2024 | 31 December 2023 | |||
| Cash at bank | 11,067,571,593 | 10,653,646,811 | ||
| Cash at finance company (a) (Note 8(6)) | 1,407,604,416 | 1,092,871,804 | ||
| Other cash and cash equivalents (b) | 18,692,687 | 20,854,424 | ||
| Interest receivable | 52,427,194 | 63,187,636 | ||
| 12,546,295,890 | 11,830,560,675 | |||
| (a) | As at 31 December 2024, the group's bank deposit with Jiangling Automobile Group Finance Co, Ltd. was RMB1,407,604,416. The Group's bank deposits placed with Jiangling Motor Group Finance Company Limited(“JMCF”) bear interest at the bank's annual interest rate of 1.35%-2.25% (31 December 2023: 0.455%-2.25%) on RMB deposits for the same period. JMCF, a holding subsidiary of Jiangling Motors Group Co., Ltd (“JMCG”), is a non-banking financial institution. JMCG holds 50% equity capital of Nanchang Jiangling Investment Co., Ltd. (“JIC”), a main shareholder of the Company. | |||
| (b) | Other cash and cash equivalents of RMB18,692,687 (December 31 2023: 20,854,424) were the frozen funds of the Group's litigation. | |||
| (2) | Financial assets held for trading | |||
| 31 December 2024 | 31 December 2023 | |||
| Structural deposits | - | 200,604,877 | ||
| (3) | Derivative financial assets and derivative financial liabilities | |||
| 31 December 2024 | 31 December 2023 | |||
| Derivative financial assets - | ||||
| Forward exchange contracts | 12,612,380 | - | ||
| Derivative financial liabilities - | ||||
| Forward exchange contracts | - | 459,306 | ||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) | ||||||
| (4) | Notes receivable | ||||||
| 31 December 2024 | 31 December 2023 | ||||||
| Trade acceptance notes | 226,932 | 14,638,901 | |||||
| Less: Provision for bad debts | (67) | (17,564) | |||||
| 226,865 | 14,621,337 | ||||||
| (a) | As at 31 December 2024, there were no notes receivable pledged. | ||||||
| (b) | Provision for bad debts | ||||||
| For notes receivable arising from sales of goods and rendering of services in the ordinary course of operating activities, the Group measures the loss provision based on the lifetime ECL regardless of whether there is a significant financing component. | |||||||
| The provision for bad debts of notes receivable is analysed by category as follows: | |||||||
| 31 December 2024 | |||||||
| Book balance | Provision for bad debts | ||||||
| Amount | % of total balance | Amount | Provision ratio | ||||
| Provision for bad debts on the grouping basis (i) | 226,932 | 100% | 67 | 0.03% | |||
| 31 December 2023 | ||||||
| Book balance | Provision for bad debts | |||||
| Amount | % of total balance | Amount | Provision ratio | |||
| Provision for bad debts on the grouping basis (i) | 14,638,901 | 100% | 17,564 | 0.12% | ||
| (i) | Notes receivable for which the provision for bad debts is provided on the grouping basis are analysed as follows: |
| Grouping - Trade acceptance notes: As at 31 December 2024, the Group’s provision for bad debts for trade acceptance notes of the grouping was measured based on the lifetime ECL, and the related amount was RMB67 (31 December 2023: RMB17,564), of which RMB17,497 was reversed in 2024 (2023: reversal of RMB300,857) . | |
| (ii) | The provision for bad debts recovered or reversed during the year amounted to RMB17,497 due to the recovery of notes receivable for which bad debts had been accrued during the period |
| (iii) | There was no provision for bad debts actually written off during the year. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) | ||||
| (5) | Accounts receivable | ||||
| 31 December 2024 | 31 December 2023 | ||||
| Accounts receivable | 4,299,293,681 | 4,529,566,682 | |||
| Less: Provision for bad debts | (118,285,447) | (127,740,660) | |||
| 4,181,008,234 | 4,401,826,022 | ||||
| (a) | The aging of accounts receivable was analysed as follows: | |||
| 31 December 2024 | 31 December 2023 | |||
| Within 1 year | 4,168,893,653 | 4,354,838,862 | ||
| 1 to 2 years | 1,812,248 | 28,667,064 | ||
| Over 2 years | 128,587,780 | 146,060,756 | ||
| 4,299,293,681 | 4,529,566,682 | |||
| As at 31 December 2024, accounts receivable with individually significant amounts and aged over three years were analyzed as follows: |
| Balance | Reasons and risk of collection | |||
| Company 1 | 66,796,993 | As the debtor had difficulties in operation and was involved in several lawsuits, the Group considered that the receivable was difficult to be recovered and therefore a provision for bad debts had been made in full. | ||
| Company 2 | 37,924,214 | The Group considered that the new energy subsidy amount was difficult to be recovered from relevant subsidy distribution departments over a long period of time and therefore a provision for bad debts had been made in full. | ||
| Company 3 | 15,842,400 | Due to the cash flow arrangement of the debtor, the accounts receivable had a long aging, but the debtor has a good historical collection situation and still has normal business dealings with the Group, and the Group considered that the receivables were likely to be recovered, so a provision for bad debts was made in the grouping - sales of general automobiles. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) |
| (5) | Accounts receivable (Cont’d) |
| (b) | As at 31 December 2024, the top five accounts receivable ranked by the balances of the debtors are analysed as follows: | ||||||||||
| Balance | Amount of provision for bad debts | % of total balance | |||||||||
| The total accounts receivable of the top five balances | 3,260,186,631 | 73,454,052 | 75.83% | ||||||||
| (c) | Provision for bad debts | ||||||||||
| For accounts receivable, the Group measures the loss provision based on the lifetime ECL regardless of whether there is a significant financing component. | |||||||||||
| The provision for bad debts of accounts receivable was analysed by category as follows: | |||||||||||
| 31 December 2024 | |||||||||||
| Book balance | Provision for bad debts | ||||||||||
| Amount | % of total balance | Amount | Provision ratio | ||||||||
| Provision for bad debts on the individual basis (i) | 104,721,207 | 2% | 104,721,207 | 100.00% | |||||||
| Provision for bad debts on the grouping basis (ii) | 4,194,572,474 | 98% | 13,564,240 | 0.32% | |||||||
| 4,299,293,681 | 100% | 118,285,447 | 2.75% | ||||||||
| 31 December 2023 | ||||||
| Book balance | Provision for bad debts | |||||
| Amount | % of total balance | Amount | Provision ratio | |||
| Provision for bad debts on the individual basis (i) | 110,154,214 | 2% | 110,154,214 | 100.00% | ||
| Provision for bad debts on the grouping basis (ii) | 4,419,412,468 | 98% | 17,586,446 | 0.40% | ||
| 4,529,566,682 | 100% | 127,740,660 | 2.82% | |||
| (i) | Accounts receivable for which the provision for bad debts was provided on the individual basis were analysed follows: |
| 31 December 2024 | |||||||
| Book balance | Provision for bad debts | ||||||
| Amount | Lifetime ECL (%) | Amount | |||||
| New energy subsidies receivable | 37,924,214 | 100% | 37,924,214 | ||||
| Receivables for automobiles | 66,796,993 | 100% | 66,796,993 | ||||
| 104,721,207 | 104,721,207 | ||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) |
| (5) | Accounts receivable (Cont’d) |
| (c) | Provision for bad debts (Cont’d) |
| (i) | Accounts receivable for which the provision for bad debts is provided on the individual basis are analysed follows (Cont’d): |
| 31 December 2023 | |||||||
| Book balance | Provision for bad debts | ||||||
| Amount | Lifetime ECL (%) | Amount | |||||
| New energy subsidies receivable | 37,924,214 | 100% | 37,924,214 | ||||
| Receivables for automobiles | 72,230,000 | 100% | 72,230,000 | ||||
| 110,154,214 | 110,154,214 | ||||||
| As at 31 December 2024, The Group assessed the expected credit losses on the related accounts receivable, the Group considered the receivables cannot be collected, therefore, full provision was made for those receivables. The related amount was RMB104,721,207(31 December 2023: RMB110,154,214), of which RMB5,433,007 (2023: Nil) was reversed in profit or loss for the current period. | |||||||
| (ii) | Accounts receivable for which provision for bad debts is made on the grouping basis are analysed as follows: | ||||||
| Grouping - Domestic sales of general automobiles: | |||||||
| 31 December 2024 | |||||||
| Book balance | Provision for bad debts | ||||||
| Amount | Lifetime ECL (%) | Amount | |||||
| Not overdue | 812,797,881 | 0.03% | 241,763 | ||||
| Overdue for 1 to 30 days | 109,449,671 | 0.55% | 600,056 | ||||
| Overdue for 31 to 60 days | 5,621,317 | 0.99% | 55,441 | ||||
| Overdue for 61 to 90 days | 4,434,000 | 2.50% | 110,948 | ||||
| Overdue over 90 days | 25,539,010 | 9.00% | 2,298,511 | ||||
| 957,841,879 | 3,306,719 | ||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) |
| (5) | Accounts receivable (Cont’d) |
| (c) | Provision for bad debts (Cont’d) |
| (ii) | Accounts receivable for which provision for bad debts is made on the grouping basis are analysed as follows (Cont’d): |
| Grouping - Domestic sales of general automobiles: | |||||||
| 31 December 2023 | |||||||
| Book balance | Provision for bad debts | ||||||
| Amount | Lifetime ECL (%) | Amount | |||||
| Not overdue | 1,330,216,018 | 0.12% | 1,651,582 | ||||
| Overdue for 1 to 30 days | 41,413,325 | 0.18% | 74,476 | ||||
| Overdue for 31 to 60 days | 24,216,867 | 2.28% | 553,239 | ||||
| Overdue for 61 to 90 days | 32,435,370 | 3.34% | 1,083,923 | ||||
| Overdue over 90 days | 76,187,716 | 5.18% | 3,948,751 | ||||
| 1,504,469,296 | 7,311,971 | ||||||
| Grouping - Export sales of general automobiles: | |||||||||
| 31 December 2024 | |||||||||
| Book balance | Provision for bad debts | ||||||||
| Amount | Lifetime ECL (%) | Amount | |||||||
| Not overdue | 2,933,133,292 | 0.20% | 5,866,267 | ||||||
| 31 December 2023 | |||||||
| Book balance | Provision for bad debts | ||||||
| Amount | Lifetime ECL (%) | Amount | |||||
| Not overdue | 2,647,787,903 | 0.20% | 5,295,576 | ||||
| Grouping - Sales of new energy automobiles: | |||||||
| 31 December 2024 | |||||||
| Book balance | Provision for bad debts | ||||||
| Amount | Lifetime ECL (%) | Amount | |||||
| Overdue over 90 days | 4,123,260 | 80.00% | 3,298,608 | ||||
| 31 December 2023 | |||||||
| Book balance | Provision for bad debts | ||||||
| Amount | Lifetime ECL (%) | Amount | |||||
| Overdue over 90 days | 5,123,260 | 80.00% | 4,098,608 | ||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) |
| (5) | Accounts receivable (Cont’d) |
| (c) | Provision for bad debts (Cont’d) |
| (ii) | Accounts receivable for which provision for bad debts is made on the grouping basis are analysed as follows (Cont’d): |
| Grouping – Automobile parts: | |||||||
| 31 December 2024 | |||||||
| Book balance | Provision for bad debts | ||||||
| Amount | Lifetime ECL (%) | Amount | |||||
| Not overdue | 270,418,629 | 0.30% | 811,256 | ||||
| Overdue for 1 to 30 days | 10,276,006 | 0.30% | 30,828 | ||||
| Overdue for 31 to 60 days | 9,423,011 | 0.50% | 47,115 | ||||
| Overdue for 61 to 90 days | 6,008,481 | 0.60% | 36,051 | ||||
| Overdue over 90 days | 3,347,916 | 5.00% | 167,396 | ||||
| 299,474,043 | 1,092,646 | ||||||
| 31 December 2023 | |||||||
| Book balance | Provision for bad debts | ||||||
| Amount | Lifetime ECL (%) | Amount | |||||
| Not overdue | 242,349,099 | 0.30% | 727,047 | ||||
| Overdue for 1 to 30 days | 16,195,486 | 0.30% | 48,586 | ||||
| Overdue for 31 to 60 days | 728,660 | 0.50% | 3,643 | ||||
| Overdue for 61 to 90 days | 839,164 | 0.60% | 5,035 | ||||
| Overdue over 90 days | 1,919,600 | 5.00% | 95,980 | ||||
| 262,032,009 | 880,291 | ||||||
| (iii) | The reversal amount of provision for bad debts for the year was RMB9,455,213. |
| (d) | There was no provision for bad debts actually written off during the year. |
| (e) | As at 31 December 2024 and 31 December 2023, there were no accounts receivable pledged. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) | ||||
| (6) | Financing receivables | ||||
| 31 December 2024 | 31 December 2023 | ||||
| Bank acceptance notes | 302,065,502 | 123,170,062 | |||
| The Group considers the need for its daily fund management to discount and endorse a portion of bank acceptance bills, and the business model for managing these bills aims both at receiving contractual cash flows and at selling them; therefore, all bank acceptance bills of the Group are classified as financial assets measured at fair value with changes recognized in other comprehensive income. In 2024, the Group endorsed and discounted bank acceptance notes, and almost all risks and rewards of ownership have been transferred to other parties, accordingly, the carrying amounts of bank acceptance notes that were derecognised by the Group were RMB1,098,017,761 and RMB2,029,290,040 (2023: RMB1,040,525,217 and RMB2,435,317,198) respectively, and the related losses on discount of RMB110,250 (2023: RMB9,867,768) were included in investment income (Note 5(50)). | |||||
| As at 31 December 2024 and 31 December 2023, as the credit risk characteristics of these bank acceptance notes were similar, no provision for impairment was made individually. In addition, the Group considered that its bank acceptance notes were not exposed to significant credit risk and the probability of default of these banks was very low. | |||||
| As at 31 December 2024 and 31 December 2023, the Group had no pledged bank acceptance notes receivable presented in financing receivables. | |||||
| As at 31 December 2024, the Group's bank acceptance notes had been endorsed or discounted but not yet matured were RMB1,738,544,375, which had been derecognised. | |||||
| There was no significant write-offs of financing receivables for the Group in 2024 (2023: Nil). | |||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) | |||||||
| (7) | Advances to suppliers | |||||||
| (a) | The aging of advances to suppliers is analysed as follows: | |||||||
| 31 December 2024 | 31 December 2023 | |||||||
| Amount | % of total balance | Amount | % of total balance | |||||
| Within 1 year | 90,702,706 | 96% | 204,358,759 | 100% | ||||
| Over 1 year | 4,046,466 | 4% | - | - | ||||
| 94,749,172 | 100% | 204,358,759 | 100% | |||||
| (b) | As at 31 December 2024, the top five advances to suppliers by the balances of the debtors are analysed as follows: | ||||
| Amount | % of total balance | ||||
| Total prepayments of the top five balances | 94,742,739 | 99.99% | |||
| (8) | Other receivables | ||||
| 31 December 2024 | 31 December 2023 | ||||
| Gas and electricity bills | 18,531,901 | 12,769,141 | |||
| Guarantees | 7,604,290 | 6,974,616 | |||
| Platform utilization fee | 5,525,739 | 4,757,270 | |||
| Bills for R&D projects | 4,723,933 | 4,022,471 | |||
| Import working capital | 3,900,523 | 7,000,000 | |||
| Receivables from refund of social insurance | 1,297,367 | 23,958,000 | |||
| Others | 12,690,526 | 16,241,334 | |||
| 54,274,279 | 75,722,832 | ||||
| Less: Provision for bad debts | (261,039) | (402,984) | |||
| 54,013,240 | 75,319,848 | ||||
| The Group did not have any fund deposited at other parties under the centralised fund management and represented in other receivables. | ||||
| (a) | The aging of other receivables is analysed as follows: | |||
| 31 December 2024 | 31 December 2023 | |||
| Within 1 year | 49,055,878 | 67,035,160 | ||
| Over 1 year | 5,218,401 | 8,687,672 | ||
| 54,274,279 | 75,722,832 | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) |
| (8) | Other receivables (Cont’d) |
| (b) | Provision for losses and changes in book balance statements: |
| The provision for bad debts of other receivables is analysed by category as follows: |
| 31 December 2024 | ||||||
| Book balance | Provision for bad debts | |||||
| Amount | % of total balance | Amount | Provision ratio | |||
| Provision for bad debts on the individual basis | 1,297,367 | 2% | - | - | ||
| Provision for bad debts on the grouping basis | 52,976,912 | 98% | 261,039 | 0.49% | ||
| 54,274,279 | 100% | 261,039 | 0.48% | |||
| 31 December 2023 | ||||||
| Book balance | Provision for bad debts | |||||
| Amount | % of total balance | Amount | Provision ratio | |||
| Provision for bad debts on the Individual basis | 23,958,000 | 32% | - | - | ||
| Provision for bad debts on the grouping basis | 51,764,832 | 68% | 402,984 | 0.78% | ||
| 75,722,832 | 100% | 402,984 | 0.53% | |||
| Stage 1 | |||||||||
| 12-month ECL (grouping) | 12-month ECL (individual) | Total | |||||||
| Book balance | Provision for bad debts | Book balance | Provision for bad debts | Provision for bad debts | |||||
| 31 December 2023 | 51,764,832 | 402,984 | 23,958,000 | - | 402,984 | ||||
| Decrease in the current year | - | - | (22,660,633) | - | - | ||||
| Increase in the current year | 1,212,080 | - | - | - | - | ||||
| Provision for bad debts accrued during the year | - | (141,945) | - | - | (141,945) | ||||
| 31 December 2024 | 52,976,912 | 261,039 | 1,297,367 | - | 261,039 | ||||
| As at 31 December 2024 and 31 December 2023, the Group had no other receivables at Stage 2 and Stage 3. The analysis of other receivables at Stage 1 was stated below: |
| (i) | As at 31 December 2024, the Group’s other receivables with provision for bad debts were analysed below: |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) |
| (8) | Other receivables (Cont’d) |
| (b) | Provision for losses and changes in book balance statements (Cont’d): |
| Book balance | 12-month ECL rates | Provision for bad debts | Reason | |||||
| Provision on the individual basis: | ||||||||
| Receivables from refund of social insurance i) | 1,297,367 | - | - | ECL | ||||
| Provision on the grouping basis: | ||||||||
| Gas and electricity bills | 18,531,901 | 0.49% | 91,314 | ECL | ||||
| Guarantees | 7,604,290 | 0.49% | 37,469 | ECL | ||||
| Platform utilization fee | 5,525,739 | 0.49% | 27,228 | ECL | ||||
| Bills for R&D projects | 4,723,933 | 0.49% | 23,277 | ECL | ||||
| Import working capital | 3,900,523 | 0.49% | 19,219 | ECL | ||||
| Others | 12,690,526 | 0.49% | 62,532 | ECL | ||||
| 54,274,279 | 261,039 |
| i)The Group assessed the receivables from refund of social insurance individually and based on the judgment of credit risk, the receivables were not subject to significant credit risk and were not overdue and impaired. | |
| (i) | As at 31 December 2023, the Group’s other receivables with provision for bad debts on the grouping basis are analysed as follows: |
| Book balance | 12-month ECL rates | Provision for bad debts | Reason | |||||
| Provision on the individual basis: | ||||||||
| Receivables from refund of social insurance i) | 23,958,000 | - | - | ECL | ||||
| Provision on the grouping basis: | ||||||||
| Gas bills | 12,769,141 | 0.78% | 99,406 | ECL | ||||
| Import working capital | 7,000,000 | 0.78% | 54,494 | ECL | ||||
| Guarantees | 6,974,616 | 0.78% | 54,297 | ECL | ||||
| Platform utilization fee | 4,757,270 | 0.78% | 37,035 | ECL | ||||
| Bills for R&D projects | 4,022,471 | 0.78% | 31,375 | ECL | ||||
| Others | 16,241,334 | 0.78% | 126,377 | ECL | ||||
| 75,722,832 | 402,984 | |||||||
| (c) | In 2024, the Group reversed the provision for bad debts amounting to RMB141,945. The reversal in the current period is due to the actual receipt of other receivables corresponding to the provision for bad debts in the previous period. | |||||||
| (d) | There was no provision for bad debts actually written off during the year. | |||||||
| (e) | As at 31 December 2024, the top five other receivables by the balances of the debtors are listed as follows: | ||||||||||
| Nature | Balance | Aging | % of total balance | Provision for bad debts | |||||||
| Company 1 | Gas bills | 11,116,201 | within 1 year | 20% | 54,774 | ||||||
| Company 2 | Electricity bills | 7,415,700 | within 1 year | 14% | 36,540 | ||||||
| Company 3 | Platform utilization fee | 5,525,739 | within 1 year | 10% | 27,228 | ||||||
| Company 4 | Customs working capital, etc | 4,959,843 | within 1 year | 9% | 24,439 | ||||||
| Company 5 | Guarantee | 2,085,513 | Over 1 year | 4% | 10,276 | ||||||
| 31,102,996 | 57% | 153,257 | |||||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) |
| (9) | Inventories |
| (a) | Inventories were summarised by category as follows: |
| 31 December 2024 | 31 December 2023 | |||||||||||
| Book balance | Provision for decline in the value of inventories | Carrying amount | Book balance | Provision for decline in the value of inventories | Carrying amount | |||||||
| Raw materials | 1,297,887,283 | 89,113,586 | 1,208,773,697 | 802,679,074 | 130,036,719 | 672,642,355 | ||||||
| Finished goods | 416,054,999 | 9,124,198 | 406,930,801 | 497,244,891 | - | 497,244,891 | ||||||
| Work in progress | 208,385,421 | 282,318 | 208,103,103 | 194,945,039 | 816,091 | 194,128,948 | ||||||
| Low value consumables | 74,927,505 | 8,943,729 | 65,983,776 | 83,217,698 | 2,830,181 | 80,387,517 | ||||||
| Materials in transit | 85,555,538 | - | 85,555,538 | 71,613,700 | - | 71,613,700 | ||||||
| Materials consigned for processing | 79,170,327 | - | 79,170,327 | 44,242,100 | - | 44,242,100 | ||||||
| 2,161,981,073 | 107,463,831 | 2,054,517,242 | 1,693,942,502 | 133,682,991 | 1,560,259,511 | |||||||
| (b) | Provision for decline in the value of inventories was analysed as follows: |
| 31 December 2023 | Increase in the current year | Decrease in the current year | 31 December 2024 | |||||||
| Provision | Reversal | Write-off | ||||||||
| Raw materials | 130,036,719 | 20,111,185 | (8,430,464) | (52,603,854) | 89,113,586 | |||||
| Finished goods | - | 9,124,198 | - | - | 9,124,198 | |||||
| Low value consumables | 2,830,181 | 8,943,729 | (3,684) | (2,826,497) | 8,943,729 | |||||
| Work in progress | 816,091 | 282,281 | - | (816,054) | 282,318 | |||||
| 133,682,991 | 38,461,393 | (8,434,148) | (56,246,405) | 107,463,831 | ||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) |
| (9) | Inventories (Cont’d) |
| (c) | Provision for decline in the value of inventories was analysed as follows: |
| The Group uses whether the cost is higher than the net realizable value as the basis for the provision for inventory decline. Net realizable value is determined by the estimated selling price of the inventory, less the estimated costs to be incurred at completion, estimated contract performance costs and selling expenses, and related taxes. The reason for the reversal or resale of the provision for inventory decline in the current year is the increase in the net realizable value of the inventory for which the provision for inventory decline has been made in previous years or the sales realized in the current year. | |
| (10) | Other current assets | ||||
| 31 December 2024 | 31 December 2023 | ||||
| Taxes prepaid, input VAT to be deducted and to be verified | 1,200,018,920 | 951,659,556 | |||
| Others | 28,354,057 | - | |||
| 1,228,372,977 | 951,659,556 | ||||
| (11) | Current portion of non-current assets | ||||
| 31 December 2024 | 31 December 2023 | ||||
| Current portion of long-term receivables (Note 5(12)) | 20,784,738 | 15,749,806 | |||
| (12) | Long-term receivables | ||||
| 31 December 2024 | 31 December 2023 | ||||
| Long-term receivables | 41,474,312 | 41,919,493 | |||
| Less: Unearned financing income | (2,053,465) | (3,268,233) | |||
| Provision for bad debts | (102,201) | (125,758) | |||
| Current portion of long-term receivables (Note 5(11)) | (20,784,738) | (15,749,806) | |||
| 18,533,908 | 22,775,696 | ||||
| As at 31 December 2024, the Group's long-term receivables were formed by instalment receipts from disposal of fixed assets and instalment sales, etc., and the payments will be recovered from 2025 to 2029. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) | |||||||||||||||||||||||||
| (13) | Long-term equity investments | |||||||||||||||||||||||||
| 31 December 2024 | 31 December 2023 | |||||||||||||||||||||||||
| Associates | ||||||||||||||||||||||||||
| - Shanxi Yunnei Power Co., Ltd. (“The Power Company”) | 194,393,246 | 202,327,605 | ||||||||||||||||||||||||
| - Hanon Systems (Nanchang) Co., Ltd. (“Hanon Systems”) | 24,904,785 | 31,470,743 | ||||||||||||||||||||||||
| Less: Provision for impairment of long-term equity investments | - | - | ||||||||||||||||||||||||
| 219,298,031 | 233,798,348 | |||||||||||||||||||||||||
| Associates | ||||||||||||||||||||||||||
| Movements for the current year | Impairment provision | |||||||||||||||||||||||||
| 31 December 2023 | Increase/ Decrease in investment | Share of net profit/(loss) under equity method | Cash dividends declared | Provision for impairment | 31 December 2024 | Shareholding (%) | Voting rights (%) | 31 December 2024 | 31 December 2023 | |||||||||||||||||
| The Power Company | 202,327,605 | - | (7,934,359) | - | - | 194,393,246 | 40% | 40% | - | - | ||||||||||||||||
| Hanon Systems | 31,470,743 | - | (2,429,558) | (4,136,400) | - | 24,904,785 | 19.15% | 33.33% | - | - | ||||||||||||||||
| Total | 233,798,348 | - | (10,363,917) | (4,136,400) | - | 219,298,031 | - | - | ||||||||||||||||||
Related information of equity in associates is set forth in Note 6(2).
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) | |||
| (14) | Fixed assets | |||
| 31 December 2024 | 31 December 2023 | |||
| Fixed assets (a) | 5,749,363,332 | 5,389,534,479 | ||
| Fixed assets pending for disposal (b) | 110,673 | 110,673 | ||
| 5,749,474,005 | 5,389,645,152 | |||
| (a) | Fixed assets | |||
| . | Buildings | Machinery and equipment | Vehicles | Moulds | Electronic and other equipment | Total | |
| Cost | |||||||
| 31 December 2023 | 2,226,158,780 | 3,226,527,648 | 513,121,037 | 4,121,429,291 | 4,340,265,136 | 14,427,501,892 | |
| Increase in the current year | |||||||
| Transfers from construction in progress | 144,397,153 | 114,062,594 | 507,566,464 | 439,001,329 | 205,256,676 | 1,410,284,216 | |
| Decrease in the current year | |||||||
| Disposal or retirement | (2,890,778) | (93,486,987) | (20,240,896) | (139,633,915) | (76,783,132) | (333,035,708) | |
| Others | - | (13,941,062) | - | - | (21,190,965) | (35,132,027) | |
| 31 December 2024 | 2,367,665,155 | 3,233,162,193 | 1,000,446,605 | 4,420,796,705 | 4,447,547,715 | 15,469,618,373 | |
| Accumulated depreciation | |||||||
| 31 December 2023 | 475,073,634 | 1,960,756,439 | 321,764,940 | 2,761,763,523 | 2,919,832,565 | 8,439,191,101 | |
| Increase in the current year | |||||||
| Provision | 54,915,904 | 190,840,928 | 77,759,139 | 322,749,851 | 341,112,021 | 987,377,843 | |
| Decrease in the current year | |||||||
| Disposal or retirement | (1,952,940) | (82,930,819) | (10,056,909) | (138,921,712) | (70,792,639) | (304,655,019) | |
| Others | - | (11,357,527) | - | - | (18,908,564) | (30,266,091) | |
| 31 December 2024 | 528,036,598 | 2,057,309,021 | 389,467,170 | 2,945,591,662 | 3,171,243,383 | 9,091,647,834 | |
| Provision for impairment | |||||||
| 31 December 2023 | 172,020,613 | 28,233,307 | 6,552,525 | 339,692,238 | 52,277,629 | 598,776,312 | |
| Increase in the current year | |||||||
| Provision | - | 16,447,633 | 434,067 | 10,559,300 | 9,132,579 | 36,573,579 | |
| Decrease in the current year | |||||||
| Disposal or retirement | - | (5,247,230) | (49,505) | (101,412) | (1,344,537) | (6,742,684) | |
| 31 December 2024 | 172,020,613 | 39,433,710 | 6,937,087 | 350,150,126 | 60,065,671 | 628,607,207 | |
| Carrying amount | |||||||
| 31 December 2024 | 1,667,607,944 | 1,136,419,462 | 604,042,348 | 1,125,054,917 | 1,216,238,661 | 5,749,363,332 | |
| 31 December 2023 | 1,579,064,533 | 1,237,537,902 | 184,803,572 | 1,019,973,530 | 1,368,154,942 | 5,389,534,479 |
| In 2024, depreciation charged to fixed assets amounted to RMB987,377,843 (2023: RMB916,013,071), of which the depreciation expenses charged in the cost of sales, selling and distribution expenses, general and administrative expenses and research and development expenses were RMB849,126,318, RMB6,581,964, RMB58,162,821 and RMB73,506,740 (2023: RMB757,170,123, RMB6,127,943, RMB91,423,304 and RMB61,291,701), respectively. | |
| The costs of fixed assets transferred from construction in progress amounted to RMB1,410,284,216 (2023: RMB1,133,482,450). |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) | |||||||||||||
| (14) | Fixed assets(Cont’d) | |||||||||||||
| (a) | Fixed assets (Cont’d) | |||||||||||||
| (i) | Temporarily idle fixed assets | |||||||||||||
| As at 31 December 2024, the fixed assets with a carrying amount of approximately RMB166,048,112 (a cost of RMB1,419,765,179) (31 December 2023: a carrying amount of approximately RMB179,453,179 and a cost of RMB1,324,043,538) were idle due to the termination of the equity transfer transaction of JMCH and the change of product process of the Group. The analysis was as follows: | ||||||||||||||
| Cost | Accumulated depreciation | Provision for impairment | Carrying amount | |||||||||||
| Buildings | 409,162,422 | 110,110,122 | 172,020,613 | 127,031,687 | ||||||||||
| Machinery and equipment | 181,614,541 | 137,921,094 | 28,606,635 | 15,086,812 | ||||||||||
| Vehicles | 63,880,172 | 54,369,219 | 6,902,177 | 2,608,776 | ||||||||||
| Moulds | 430,812,406 | 111,190,258 | 319,612,735 | 9,413 | ||||||||||
| Electronic and other equipment | 334,295,638 | 263,273,619 | 49,710,595 | 21,311,424 | ||||||||||
| 1,419,765,179 | 676,864,312 | 576,852,755 | 166,048,112 | |||||||||||
| (ii) | Operating lease of fixed assets: | |||||||||||||
| As of December 31, 2024, the Cost was RMB510,288,722, the accumulated depreciation was RMB 39,482,278, and the carrying amount at the end of the period was RMB470,806,444. | ||||||||||||||
| (ii) | Fixed assets with pending certificates of ownership: | |||||||||||||
| Carrying amount | Reason for not obtaining certificates of ownership | |||||||||||||
| Buildings | 8,806,326 | Pending procedures | ||||||||||||
| (b) | Fixed assets pending for disposal | |||||||||||||
| 31 December 2024 | 31 December 2023 | |||||||||||||
| Electronic and other equipment | 85,891 | 85,891 | ||||||||||||
| Machinery and equipment | 24,782 | 24,782 | ||||||||||||
| 110,673 | 110,673 | |||||||||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) |
| (15) | Construction in progress |
| 31 December 2024 | 31 December 2023 | |||||||||||
| Book balance | Provision for impairment | Carrying amount | Book balance | Provision for impairment | Carrying amount | |||||||
| Projects for commercial vehicles | 364,639,322 | 1,284,000 | 363,355,322 | 176,425,357 | 1,284,000 | 175,141,357 | ||||||
| Projects for passenger vehicles | 134,553,481 | 4,460,314 | 130,093,167 | 192,375,226 | 4,460,314 | 187,914,912 | ||||||
| Projects for automobile parts factory | 64,627,414 | - | 64,627,414 | 28,037,073 | - | 28,037,073 | ||||||
| Projects for automobiles factory | 5,625,803 | - | 5,625,803 | 17,752,703 | - | 17,752,703 | ||||||
| Others | 98,901,720 | 691,646 | 98,210,074 | 56,277,013 | 691,646 | 55,585,367 | ||||||
| 668,347,740 | 6,435,960 | 661,911,780 | 470,867,372 | 6,435,960 | 464,431,412 | |||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) |
| (15) | Construction in progress (Cont’d) |
| (a) | Movement of significant projects of construction in progress |
| Project name | Budget (In RMB0’000) | 31 December 2023 | Increase in the current year | Transfer to fixed assets in the current year | Transfer to intangible assets in the current year | 31 December 2024 | % of project investment in budget | Progress of project | Accumulative capitalised borrowing costs | Including: Borrowing costs capitalised in the current year | Source of fund | |||||||
| Projects for commercial vehicles | 304,678 | 176,425,357 | 479,737,127 | (291,523,162) | - | 364,639,322 | 63% | 63% | - | - | Self-owned funds | |||||||
| Projects for passenger vehicles | 115,766 | 192,375,226 | 262,277,467 | (320,099,212) | - | 134,553,481 | 65% | 65% | - | - | Self-owned funds | |||||||
| Projects for automobiles factory | 312,655 | 17,752,703 | 192,574,358 | (204,411,662) | (289,596) | ) | 5,625,803 | 79% | 79% | - | - | Self-owned funds | ||||||
| Projects for automobile parts factory | 14,867 | 28,037,073 | 78,383,663 | (41,793,322) | - | 64,627,414 | 73% | 73% | - | - | Self-owned funds | |||||||
| Others | 56,277,013 | 647,196,013 | (552,456,858) | (52,114,448) | ) | 98,901,720 | 292,897 | - | Self-owned funds and borrowings | |||||||||
| 470,867,372 | 1,660,168,628 | (1,410,284,216) | (52,404,044) | ) | 668,347,740 | 292,897 | - |
| (b) | Provision for impairment of construction in progress | ||||||||||
| 31 December 2023 | Increase in the current year | Decrease in the current year | 31 December 2024 | Reason for provision | |||||||
| Projects for commercial vehicles | 1,284,000 | - | - | 1,284,000 | The recoverable amount is lower than the carrying amount | ||||||
| Projects for passenger vehicles | 4,460,314 | - | - | 4,460,314 | The recoverable amount is lower than the carrying amount | ||||||
| Others | 691,646 | - | - | 691,646 | The recoverable amount is lower than the carrying amount | ||||||
| 6,435,960 | - | - | 6,435,960 | ||||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) |
| (16) | Right-of-use assets |
| Buildings | |||
| Cost | |||
| 31 December 2023 | 369,902,195 | ||
| Increase in the current year | |||
| New lease contracts | 53,730,107 | ||
| Decrease in the current year | |||
| Expiration of lease contract | (47,838,837) | ||
| 31 December 2024 | 375,793,465 | ||
| Accumulated depreciation | |||
| 31 December 2023 | 175,066,167 | ||
| Increase in the current year | |||
| Provision | 83,864,887 | ||
| Decrease in the current year | |||
| Expiration of lease contract | (41,623,277) | ||
| 31 December 2024 | 217,307,777 | ||
| Provision for impairment | |||
| 31 December 2023 | - | ||
| Increase in the current year | - | ||
| Decrease in the current year | - | ||
| 31 December 2024 | - | ||
| Carrying amount | |||
| 31 December 2024 | 158,485,688 | ||
| 31 December 2023 | 194,836,028 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) | |||||
| (17) | Intangible assets | |||||
| Land use rights | Software use fees | Non-patent technologies | Others | Total | ||
| Cost | ||||||
| 31 December 2023 | 628,964,157 | 394,046,217 | 1,839,778,636 | 38,578,700 | 2,901,367,710 | |
| Increase in the current year | ||||||
| Transfers from construction in progress | - | 52,404,044 | - | - | 52,404,044 | |
| Internal research and development | - | - | 480,816,425 | - | 480,816,425 | |
| Decrease in the current year | ||||||
| Disposal | (3,664,831) | - | - | - | (3,664,831) | |
| 31 December 2024 | 625,299,326 | 446,450,261 | 2,320,595,061 | 38,578,700 | 3,430,923,348 | |
| Accumulated amortisation | ||||||
| 31 December 2023 | 153,225,333 | 235,386,600 | 730,739,330 | 38,578,700 | 1,157,929,963 | |
| Increase in the current year | ||||||
| Provision | 13,199,813 | 50,486,546 | 347,389,409 | - | 411,075,768 | |
| Decrease in the current year | ||||||
| Disposal | (1,953,862) | - | - | - | (1,953,862) | |
| 31 December 2024 | 164,471,284 | 285,873,146 | 1,078,128,739 | 38,578,700 | 1,567,051,869 | |
| Provision for impairment | ||||||
| 31 December 2023 | - | - | 52,416,626 | - | 52,416,626 | |
| Increase in the current year | ||||||
| Provision | - | - | - | - | - | |
| 31 December 2024 | - | - | 52,416,626 | - | 52,416,626 | |
| Carrying amount | ||||||
| 31 December 2024 | 460,828,042 | 160,577,115 | 1,190,049,696 | - | 1,811,454,853 | |
| 31 December 2023 | 475,738,824 | 158,659,617 | 1,056,622,680 | - | 1,691,021,121 | |
| As at 31 December 2024, the intangible assets developed by the Group accounted for 61% (31 December 2023: 56%) of the carrying amount of intangible assets. | |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) |
| (18) | Expenditure on research and development |
| The Group's total expenditure on research and development activities in 2024 and 2023 is presented by nature as follows: |
| 2024 | 2023 | |||||
| Employee benefits | 872,800,912 | 724,160,168 | ||||
| Design fee | 276,633,918 | 513,146,559 | ||||
| Consumed materials | 241,660,045 | 263,541,026 | ||||
| Depreciation and amortisation | 82,982,038 | 67,981,814 | ||||
| Others | 225,684,210 | 277,552,954 | ||||
| 1,699,761,123 | 1,846,382,521 | |||||
| Wherein expenditure on research and development on the research phase (Note 5(45)) | 1,314,579,423 | 1,286,201,612 |
| (a) | The changes in the Group's development expenditures eligible for capitalisation in 2024 is analysed as follows: |
| 31 December 2023 | Increase in the current year | Transfer to intangible assets in the current year | 31 December 2024 | |||||
| Projects for passenger vehicles | 283,738,155 | 144,453,586 | 400,913,756 | 27,277,985 | ||||
| Projects for commercial vehicles | - | 240,728,114 | 79,902,669 | 160,825,445 | ||||
| 283,738,155 | 385,181,700 | 480,816,425 | 188,103,430 |
| The capitalization of the vehicle project started when the product was ready and the R&D data was frozen, and it had passed the Group's technical review meeting. After the completion of the development of the project, it is expected to be ready for mass production of vehicle products with marketing capabilities, with a progress of approximately 61% as of December 31, 2024, and is expected to be completed by 2025. | |
| In 2024, there was no impairment of the Group's development expenditure items (2023: nil). |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) | |||||||
| (19) | Deferred tax assets and deferred tax liabilities | |||||||
| (a) | Deferred tax assets before offsetting | |||||||
| 31 December 2024 | 31 December 2023 | |||||||
| Deductible temporary differences and deductible losses | Deferred tax assets | Deductible temporary differences and deductible losses | Deferred tax assets | |||||
| Accrued expenses and provisions | 5,243,226,986 | 1,202,834,659 | 5,860,011,327 | 1,364,811,520 | ||||
| Recoverable losses | 3,007,086,847 | 645,511,957 | 2,443,729,567 | 389,836,053 | ||||
| Provision for asset impairment | 622,528,655 | 94,016,209 | 1,192,154,407 | 183,615,437 | ||||
| Non-patent technology | 440,753,948 | 100,999,156 | 304,526,218 | 63,692,824 | ||||
| Lease liability | 179,407,961 | 27,067,280 | 218,076,092 | 34,258,049 | ||||
| Employee education funds unpaid | 53,619,310 | 8,554,549 | 81,356,938 | 12,728,702 | ||||
| Deferred income | 61,202,010 | 9,180,301 | 67,601,361 | 10,140,204 | ||||
| Retirement benefits plan | 10,153,000 | 2,194,050 | 10,515,000 | 2,172,350 | ||||
| Others | 122,815,039 | 20,274,065 | 186,761,227 | 28,046,234 | ||||
| 9,740,793,756 | 2,110,632,226 | 10,364,732,137 | 2,089,301,373 | |||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) | |||||||
| (19) | Deferred tax assets and deferred tax liabilities (Cont’d) | |||||||
| (b) | Deferred tax liabilities before offsetting | |||||||
| 31 December 2024 | 31 December 2023 | |||||||
| Taxable temporary differences | Deferred tax liabilities | Taxable temporary differences | Deferred tax liabilities | |||||
| Depreciation of fixed assets | 3,045,807,585 | 624,476,184 | 2,912,652,979 | 556,699,442 | ||||
| Right-of-use assets | 158,457,332 | 25,571,835 | 194,836,028 | 30,336,433 | ||||
| Equity transactions between parent and subsidiary | 166,600,000 | 24,990,000 | 125,800,000 | 18,870,000 | ||||
| Differences between the fair value of the identifiable net assets and carrying amount arising from business combinations involving enterprises not under common control | 74,742,572 | 18,685,643 | 77,027,559 | 19,256,890 | ||||
| Amortisation of intangible assets | 88,274,866 | 15,312,010 | 73,907,060 | 11,171,829 | ||||
| Others | 11,693,768 | 1,754,065 | 1,064,183 | 220,115 | ||||
| 3,545,576,123 | 710,789,737 | 3,385,287,809 | 636,554,709 | |||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) | ||||||||
| (19) | Deferred tax assets and deferred tax liabilities (Cont’d) | ||||||||
| (c) | Deductible temporary differences and deductible losses for which no deferred tax asset was recognised were analysed as follows: | ||||||||
| 31 December 2024 | 31 December 2023 | ||||||||
| Deductible temporary differences | 2,598,578,425 | 2,020,124,206 | |||||||
| Deductible losses | 231,610,985 | 167,104,457 | |||||||
| 2,830,189,410 | 2,187,228,663 | ||||||||
| (d) | Deductible losses for which no deferred tax asset was recognised will be expired in following years: | ||||||||
| 31 December 2024 | 31 December 2023 | ||||||||
| 2025 | 594,567 | - | |||||||
| 2026 | 136,794 | - | |||||||
| 2027 | 109,138,616 | 93,001,631 | |||||||
| 2028 | 80,885,354 | 74,102,826 | |||||||
| 2029 | 40,855,654 | - | |||||||
| 231,610,985 | 167,104,457 | ||||||||
| (e) | The net balances of deferred tax assets and deferred tax liabilities after offsetting were as follows: | ||||||||
| 31 December 2024 | 31 December 2023 | ||||||||
| Offsetting amount | Balance after offsetting | Offsetting amount | Balance after offsetting | ||||||
| Deferred tax assets | (580,487,861) | 1,530,144,365 | (617,297,819) | 1,472,003,554 | |||||
| Deferred tax liabilities | (580,487,861) | 130,301,876 | (617,297,819) | 19,256,890 | |||||
| (20) | Other non-current assets | |||
| 31 December 2024 | 31 December 2023 | |||
| Prepayment for molds | 7,860,340 | 10,807,967 | ||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) |
| (21) | Provision for asset impairment and losses |
| 31 December 2023 | Increase in the current year | Decrease in the current year | 31 December 2024 | |||||||
| Reversal | Write-off /Disposal | |||||||||
| Provision for bad debts of notes receivable (Note 5(4)) | 17,564 | - | (17,497) | - | 67 | |||||
| Provision for bad debts of accounts receivable (Note 5(5)) | 127,740,660 | - | (9,455,213) | - | 118,285,447 | |||||
| Including: Provision for bad debts on the individual basis | 110,154,214 | - | (5,433,007) | - | 104,721,207 | |||||
| Provision for bad debts on the grouping basis | 17,586,446 | - | (4,022,206) | - | 13,564,240 | |||||
| Provision for bad debts of other receivables (Note 5(8)) | 402,984 | - | (141,945) | - | 261,039 | |||||
| Provision for bad debts of long-term receivables (Note 5(12)) | 125,758 | - | (23,557) | - | 102,201 | |||||
| Sub-total | 128,286,966 | - | (9,638,212) | - | 118,648,754 | |||||
| Provision for decline in the value of inventories (Note 5(9)) | 133,682,991 | 38,461,393 | (8,434,148) | (56,246,405) | 107,463,831 | |||||
| Provision for impairment of fixed assets (Note 5(14)) | 598,776,312 | 36,573,579 | - | (6,742,684) | 628,607,207 | |||||
| Provision for impairment of construction in progress (Note 5(15)) | 6,435,960 | - | - | - | 6,435,960 | |||||
| Provision for impairment of goodwill (i) | 89,028,412 | - | - | - | 89,028,412 | |||||
| Provision for impairment of intangible assets (Note 5(17)) | 52,416,626 | - | - | - | 52,416,626 | |||||
| Sub-total | 880,340,301 | 75,034,972 | (8,434,148) | (62,989,089) | 883,952,036 | |||||
| 1,008,627,267 | 75,034,972 | (18,072,360) | (62,989,089) | 1,002,600,790 | ||||||
| (i) | As at 31 December 2019, the Group had made full provision for impairment of goodwill. | |||||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) | |||||
| (22) | Short-term borrowings | |||||
| 31 December 2024 | 31 December 2023 | |||||
| Credit loan | 1,500,000,000 | 1,300,000,000 | ||||
| As at 31 December 2024, the Group had no overdue short-term borrowings and the interest rates ranged from 0.55% to 0.95% (31 December 2023: 1.73% to 2.4%). | ||||||
| (23) | Accounts payable | |||||
| 31 December 2024 | 31 December 2023 | |||||
| Payable for automobile parts | 9,785,507,926 | 9,094,393,825 | ||||
| Payable for raw and auxiliary materials | 275,716,018 | 381,821,398 | ||||
| 10,061,223,944 | 9,476,215,223 | |||||
| As at 31 December 2024, accounts payable with aging over one year amounted to RMB170,590,008 (31 December 2023: RMB408,228,798), which mainly represented payables for materials for which a settlement price had not yet been determined, and such payables had not been finally settled yet. | ||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) |
| (24) | Contract liabilities |
| 31 December 2024 | 31 December 2023 | |||
| Advances for maintenance and warranty services, etc. | 632,287,355 | 226,857,269 | ||
| Advances for automobiles and automobile parts | 206,210,459 | 137,176,924 | ||
| 838,497,814 | 364,034,193 | |||
| Less: Contract liabilities carried forward to revenue after 1 year (Note 5(35), Note 5(41)(c)(i)) | (370,793,523) | (120,293,201) | ||
| 467,704,291 | 243,740,992 |
| In 2024, contract liabilities amounting to RMB236,041,276 included in the carrying amount as at 31 December 2023 were transferred to the revenue of 2024 (2023: RMB152,065,025), including advances for automobiles and automobile parts amounting to RMB129,477,208 (2023: RMB94,400,145), and advances for maintenance and warranty services amounting to RMB106,564,068 (2023: RMB57,664,880). |
| (25) | Employee benefits payable | |||
| 31 December 2024 | 31 December 2023 | |||
| Short-term employee benefits payable (a) | 771,878,485 | 882,869,951 | ||
| Defined contribution plans payable (b) | 2,799,913 | 1,818,160 | ||
| Defined benefit plans payable (c) | 3,015,000 | 2,865,000 | ||
| Termination benefits payable (d) | 2,481,176 | 2,498,176 | ||
| 780,174,574 | 890,051,287 | |||
| (a) | Short-term employee benefits | |||||||
| 31 December 2023 | Increase in the current year | Decrease in the current year | 31 December 2024 | |||||
| Wages and salaries, bonus, allowances and subsidies | 738,660,904 | 2,078,911,976 | (2,125,555,338) | 692,017,542 | ||||
| Staff welfare | 56,932,663 | 64,806,713 | (100,667,672) | 21,071,704 | ||||
| Social security contributions | 152,685 | 131,177,447 | (130,517,211) | 812,921 | ||||
| Including: Medical insurance | 121,642 | 117,027,261 | (116,419,250) | 729,653 | ||||
| Work injury insurance | 31,043 | 14,150,186 | (14,097,961) | 83,268 | ||||
| Housing funds | 28,935 | 197,430,881 | (196,967,618) | 492,198 | ||||
| Labour union funds and employee education funds | 87,094,764 | 19,032,721 | (48,643,365) | 57,484,120 | ||||
| Other short-term employee benefits | - | 7,108,358 | (7,108,358) | - | ||||
| 882,869,951 | 2,498,468,096 | (2,609,459,562) | 771,878,485 | |||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) |
| (25) | Employee benefits payable (Cont’d) |
| (b) | Defined contribution plans | |||||||
| 31 December 2023 | Increase in the current year | Decrease in the current year | 31 December 2024 | |||||
| Basic pensions | 1,761,709 | 259,843,439 | (258,907,081) | 2,698,067 | ||||
| Unemployment insurance | 56,451 | 8,221,586 | (8,176,191) | 101,846 | ||||
| 1,818,160 | 268,065,025 | (267,083,272) | 2,799,913 | |||||
| (c) | Defined benefit plans | |||||||
| 31 December 2023 | Increase in the current year | Decrease in the current year | 31 December 2024 | |||||
| Post-retirement benefits payable (Note 5(34)) | 2,865,000 | 2,514,485 | (2,364,485) | 3,015,000 | ||||
| (d) | Termination benefits payable | |||
| 31 December 2024 | 31 December 2023 | |||
| Early retirement benefits payable (Note 5(34)) | 1,143,000 | 1,160,000 | ||
| Other termination benefits (i) | 1,338,176 | 1,338,176 | ||
| 2,481,176 | 2,498,176 | |||
| (i) | ||||
In 2024, other termination benefits paid by the Group for termination of the employmentrelationship were RMB3,333,613 (2023: RMB14,126,035).
| (26) | Taxes payable | |||
| 31 December 2024 | 31 December 2023 | |||
| Unpaid VAT | 117,211,162 | 637,391 | ||
| Consumption tax payable | 103,965,331 | 73,794,904 | ||
| Land use tax payable | 4,753,390 | 4,831,953 | ||
| Enterprise income tax payable | - | 18,702,207 | ||
| Others | 39,268,506 | 20,433,310 | ||
| 265,198,389 | 118,399,765 | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) | |||
| (27) | Other payables | |||
| 31 December 2024 | 31 December 2023 | |||
| Promotion expenses | 2,727,155,425 | 2,978,276,681 | ||
| Research and development project expenses | 962,540,747 | 968,699,606 | ||
| Construction payment | 466,886,864 | 539,487,510 | ||
| Transportation expenses | 256,166,660 | 148,140,843 | ||
| Guarantees | 134,483,995 | 124,132,883 | ||
| Advertising and new product planning fees | 117,665,807 | 166,568,934 | ||
| Trademark license fee | 61,000,949 | 17,037,453 | ||
| Consulting fees | 42,367,665 | 31,808,406 | ||
| Technological transformation project expenses | 13,301,266 | 23,333,420 | ||
| Ordinary share dividends payable | 6,463,836 | 6,463,836 | ||
| Others | 951,030,953 | 941,026,521 | ||
| 5,739,064,167 | 5,944,976,093 | |||
| As at 31 December 2024, other payables with aging over one year of RMB1,594,877,126 (31 December 2023: RMB1,967,233,887) mainly comprised guarantees collected from distributors and repair stations, payables for promotion, payables for research and development expenses and payables for construction projects. Such payables had not been finally settled yet in view of the continuing business transactions with distributors and service providers, and engineering projects and research and development projects that had not yet been accepted and completed. |
| (28) | Current portion of non-current liabilities | ||||
| 31 December 2024 | 31 December 2023 | ||||
| Current portion of lease liabilities (Note 5(31)) | 85,684,387 | 80,070,149 | |||
| Current portion of long-term borrowings (Note 5(30)) | 470,727 | 13,313,749 | |||
| 86,155,114 | 93,383,898 | ||||
| (29) | Other current liabilities | |||
| 31 December 2024 | 31 December 2023 | |||
| Provisions expected to be settled within 1 year (Note 5(32)) | 314,682,704 | 356,115,630 | ||
| Others | 26,865,737 | 17,833,000 | ||
| 341,548,441 | 373,948,630 | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) | |||
| (30) | Long-term borrowings | |||
| 31 December 2024 | 31 December 2023 | |||
| Guaranteed loans(a) | 1,412,180 | 1,855,219 | ||
| Credit loans | - | 12,849,944 | ||
| Less: Current portion of long-term borrowings (Note 5(28)) | (470,727) | (13,313,749) | ||
| 941,453 | 1,391,414 | |||
| (a) | As at 31 December 2024, the above guaranteed loans were long-term borrowings amounting to USD 196,453 guaranteed by JMCF (note 8(5)(c)), borrowed from Industrial and Commercial Bank of China (“ICBC”), Nanchang Ganjiang Sub-branch with interests paid every half year and the principal paid in instalments between 10 December 2007 and 27 October 2027. | |||||||||||
| Starting date | Maturity date | Currency | Interest rate (%) | 31 December 2024 | 31 December 2023 | |||||||
| Amount in foreign currency | RMB equivalent | Amount in foreign currency | RMB equivalent | |||||||||
| ICBC Nanchang Ganjiang Sub - branch | 27 February 1998 | 27 October 2027 | USD | 1.5% | 196,453 | 1,412,180 | 261,937 | 1,855,219 | ||||
| (b) | As at 31 December 2024, the Group had no overdue long-term borrowings at an interest rate of 1.5% (31 December 2023: 1.5%-2.5%). |
| (31) | Lease liabilities | ||||
| 31 December 2024 | 31 December 2023 | ||||
| Lease liabilities (a) | 179,437,021 | 218,076,092 | |||
| Less: Current portion of non- current liabilities (Note 5(28)) | (85,684,387) | (80,070,149) | |||
| 93,752,634 | 138,005,943 | ||||
| (a) | As at 31 December 2024, the Group had no leases that were not included in lease liabilities but will result in potential future cash outflows. | ||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) | ||||||
| (32) | Provisions | ||||||
| 31 December 2023 | Increase in the current year | Decrease in the current year | 31 December 2024 | ||||
| Product warranties | 671,815,893 | 235,456,948 | (305,424,434) | 601,848,407 | |||
| Less: Provisions expected to be settled within 1 year (Note 5(29)) | (356,115,630) | (314,682,704) | |||||
| 315,700,263 | 287,165,703 | ||||||
| Product warranties are expenses expected to be incurred during the warranty period from free after-sales services, product warranty and other services for the vehicles sold. | ||||||||||
| (33) | Deferred income | |||||||||
| 31 December 2023 | Increase in the current year | Decrease in the current year | 31 December 2024 | |||||||
| Government grants | 67,601,361 | 2,700,000 | (9,099,351) | 61,202,010 | ||||||
| (a) | Government grants | |||||||||
| 31 December 2023 | Increase in the current year | Decrease in the current year | ||||||||||
| Recognised in other income | 31 December 2024 | |||||||||||
| Government grants related to assets | 8,724,703 | - | (1,610,714) | 7,113,989 | ||||||||
| Government grants related to income | 58,876,658 | 2,700,000 | (7,488,637) | 54,088,021 | ||||||||
| 67,601,361 | 2,700,000 | (9,099,351) | 61,202,010 | |||||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) |
| (34) | Long-term employee benefits payable | |||
| 31 December 2024 | 31 December 2023 | |||
| Supplementary retirement benefits and early-retirement benefits eligible for recognition of provisions | 63,500,000 | 56,916,000 | ||
| Less: Payable within 1 year | (4,158,000) | (4,025,000) | ||
| 59,342,000 | 52,891,000 | |||
| The retirement and early-retirement benefits payable within one year are included in employee benefits payable (Note 5(25)(c), Note 5(25)(d)). | ||||
| For retired and early-retired employees, the Group provides them with a certain amount of supplementary benefits during their retirement or early-retirement period. The amount of benefits depends on the employee’s position, length of service and salary at the time of retirement or early-retirement, and is adjusted in accordance with inflation rate and other factors. The Group’s obligations for supplementary retirement and early-retirement benefits as at the balance sheet date were calculated using projected unit credit method and were reviewed by an external independent actuary. | ||||
| (a) | Movements of retirement and early-retirement benefits of the Group are as follows: | ||||
| Present value of the obligations of the defined benefit plan | |||||
| 31 December 2024 | 31 December 2023 | ||||
| Opening balance | 56,916,000 | 55,374,000 | |||
| Cost of defined benefit plans recognised in profit or loss for the current period | |||||
| - Current service cost | 1,237,000 | 1,141,000 | |||
| - Past service cost | 1,131,000 | - | |||
| - Actuarial gains or losses recognised immediately | 610,000 | (331,000) | |||
| - Net interest | 1,378,000 | 1,610,000 | |||
| Remeasurement of net liabilities for defined benefit plans | |||||
| - Actuarial (gains)/losses(Note 5(38)) | 5,816,000 | 2,593,000 | |||
| Other movements | |||||
| - Benefits paid | (3,588,000) | (3,471,000) | |||
| Ending balance | 63,500,000 | 56,916,000 | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) |
| (34) | Long-term employee benefits payable (Cont’d) |
| (b) | The major actuarial assumptions used to determine the present value of defined benefit plan obligations of the Group | ||||
| 31 December 2024 | 31 December 2023 | ||||
| Discount rate | 1.75% | 2.50% | |||
| Inflation rate | 2.00% | 2.00% | |||
| Salaries and benefits growth rates | 0%-6% | 0%-6% | |||
| Future mortality assumptions were determined based on the China Life Insurance Mortality Table (2010-2013), which is publicly available statistical information for the Chinese region. | |||||
| (c) | The sensitivity analysis of the major actuarial assumptions used to determine the present value of defined benefit plan obligations of the Group was analysed as follows: |
| Variation in assumptions | Effect on present value of defined benefit obligations | ||||||
| Assumed increase | Assumed decrease | ||||||
| Discount rate | 0.5% | Decrease of 6.3% | Increase of 7.3% | ||||
| Inflation rate | 0.5% | Increase of 4.4% | Decrease of 3.7% | ||||
| The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, changes in some of the assumptions may be correlated. The projected unit credit method is also utilised in calculating the present value of the defined benefit obligations in the analysis. | |||||||
| (d) | Supplementary retirement and early-retirement benefits expose the Group to various risks, mainly including risk of changes in the interest rate of treasury bonds and inflation risk. Decline in the interest rate of treasury bonds will lead to an increase in defined benefit plan liabilities. Supplementary retirement and early-retirement benefits obligations keep pace with inflation, and the rise in inflation will increase the defined benefit plan liabilities. | ||||||
| (35) | Other non-current liabilities | ||||||
| 31 December 2024 | 31 December 2023 | ||||||
| Contract liabilities carried forward to revenue after 1 year (Note 5(24)) | 370,793,523 | 120,293,201 | |||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) | |||||||||||||
| (36) | Share capital | |||||||||||||
| 31 December 2023 | Movements for the current year | 31 December 2024 | ||||||||||||
| Shares newly issued | Bonus share | Transfer from capital surplus | Others | Sub-total | ||||||||||
| Shares subject to trading restriction - | ||||||||||||||
| Other domestic shares | ||||||||||||||
| Including: Shares held by domestic non-state-owned legal persons | 745,140 | - | - | - | - | - | 745,140 | |||||||
| Shares held by domestic natural persons | 5,700 | - | - | - | - | - | 5,700 | |||||||
| 750,840 | - | - | - | - | - | 750,840 | ||||||||
| Shares not subject to trading restriction - | ||||||||||||||
| Ordinary shares denominated in RMB | 518,463,160 | - | - | - | - | - | 518,463,160 | |||||||
| Domestically listed foreign shares | 344,000,000 | - | - | - | - | - | 344,000,000 | |||||||
| 862,463,160 | - | - | - | - | - | 862,463,160 | ||||||||
| 863,214,000 | - | - | - | - | - | 863,214,000 | ||||||||
| Since the implementation of the Company’s Scheme on Share Split Reform on 13 February 2006, as at 31 December 2024, there were 750,840 shares currently unavailable for trading. During the reporting period, there was no shares with trading restrictions released from the restricted conditions. | ||||||||||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) | |||||||||||||
| (36) | Share capital (Cont’d) | |||||||||||||
| 31 December 2022 | Movements for the current year | 31 December 2023 | ||||||||||||
| Shares newly issued | Bonus share | Transfer from capital surplus | Others | Sub-total | ||||||||||
| Shares subject to trading restriction - | ||||||||||||||
| Other domestic shares | ||||||||||||||
| Including: Shares held by domestic non-state-owned legal persons | 745,140 | - | - | - | - | - | 745,140 | |||||||
| Shares held by domestic natural persons | 5,700 | - | - | - | - | - | 5,700 | |||||||
| 750,840 | - | - | - | - | - | 750,840 | ||||||||
| Shares not subject to trading restriction - | ||||||||||||||
| Ordinary shares denominated in RMB | 518,463,160 | - | - | - | - | - | 518,463,160 | |||||||
| Domestically listed foreign shares | 344,000,000 | - | - | - | - | - | 344,000,000 | |||||||
| 862,463,160 | - | - | - | - | - | 862,463,160 | ||||||||
| 863,214,000 | - | - | - | - | - | 863,214,000 | ||||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) | |||||||
| (37) | Capital surplus | |||||||
| 31 December 2023 | Increase in the current year | Decrease in the current year | 31 December 2024 | |||||
| Share premium | 816,609,422 | - | - | 816,609,422 | ||||
| Other capital surplus | 22,833,068 | - | - | 22,833,068 | ||||
| 839,442,490 | - | - | 839,442,490 | |||||
| 31 December 2022 | Increase in the current year | Decrease in the current year | 31 December 2023 | |||||
| Share premium | 816,609,422 | - | - | 816,609,422 | ||||
| Other capital surplus | 22,833,068 | - | - | 22,833,068 | ||||
| 839,442,490 | - | - | 839,442,490 | |||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) | |||||||||
| (38) | Other comprehensive income | |||||||||
| Other comprehensive income in the balance sheet | Other comprehensive income in the income statement for the year ended 31 December 2024 | |||||||||
| 31 December 2023 | Attributable to the parent company after tax | 31 December 2024 | Amount incurred before income tax for the current year | Less: Transfer-out of previous other comprehensive income in the current year | Less: Income tax expenses | Attributable to the parent company after tax | Attributable to the subsidiary after tax | |||
| Other comprehensive income that will not be reclassified to profit or loss | ||||||||||
| Actuarial gains on defined benefit plans | (20,572,000) | (5,816,000) | (26,388,000) | (5,816,000) | - | - | (5,816,000) | - | ||
| Other comprehensive income in the balance sheet | Other comprehensive income in the income statement for the year ended 31 December 2023 | |||||||||
| 31 December 2022 | Attributable to the parent company after tax | 31 December 2023 | Amount incurred before income tax for the current year | Less: Transfer-out of previous other comprehensive income in the current year | Less: Income tax expenses | Attributable to the parent company after tax | Attributable to the subsidiary after tax | |||
| Other comprehensive income that will not be reclassified to profit or loss | ||||||||||
| Actuarial gains on defined benefit plans | (13,484,250) | (7,087,750) | (20,572,000) | (2,593,000) | - | (4,494,750) | (7,087,750) | - | ||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) |
| (39) | Surplus reserve |
| 31 December 2023 | Increase in the current year | Decrease in the current year | 31 December 2024 | |||||
| Statutory surplus reserve | 431,607,000 | - | - | 431,607,000 |
| 31 December 2022 | Increase in the current year | Decrease in the current year | 31 December 2023 | |||||
| Statutory surplus reserve | 431,607,000 | - | - | 431,607,000 | ||||
| In accordance with the Company Law of the People’s Republic of China, the Company’s Articles of Association and the resolution of the Board of Directors, the Company should appropriate 10% of net profit for the year to the statutory surplus reserve, and the Company can cease appropriation when the statutory surplus reserve accumulated to more than 50% of the registered capital. The statutory surplus reserve can be used to make up for the loss or increase the share capital upon approval from the appropriate authorities. As the accumulated appropriation to the statuary surplus reserve exceeded 50% of the registered capital, no appropriation was made in the current year (2023: Nil). | ||||||||
| The Company reserves the discretionary surplus reserve after the shareholders’ meeting approves the proposal from the Board of Directors. The discretionary surplus reserve can be used to compensate for the losses incurred in prior years or increase the share capital upon approval from appropriate authorities. | ||||||||
| (40) | Retained earnings | |||
| 2024 | 2023 | |||
| Retained earnings at the beginning of the year | 8,232,632,623 | 7,123,038,093 | ||
| Add: Net profit attributable to shareholders of the parent company for the current year | 1,537,139,024 | 1,475,597,266 | ||
| Less: Ordinary share dividends payable (a) | (590,438,376) | (366,002,736) | ||
| Retained earnings at the end of the year | 9,179,333,271 | 8,232,632,623 |
| (a) | According to the resolution of the Board of Directors on 25 June 2024, the Company proposed to distribute cash dividends of RMB0.684 per share to all shareholders, calculated on the basis of 863,214,000 issued shares, for a total of RMB590,438,376. |
| According to the resolution of the Board of Directors on March 27, 2025, the Board of Directors proposed that the Company distribute a cash dividend of RMB 0.712 per share to all shareholders, with a total cash dividend of RMB 614,608,368 calculated based on the issued shares of RMB 863,214,000 (Note 11). |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) | |||
| (41) | Revenue and cost of sales | |||
| 2024 | 2023 | |||
| Revenue from main operations | 37,235,820,378 | 32,673,950,278 | ||
| Revenue from other operations | 1,138,340,370 | 493,374,803 | ||
| 38,374,160,748 | 33,167,325,081 | |||
| 2024 | 2023 | |||
| (Restated) | ||||
| Cost of sales from main operations | 32,003,611,043 | 27,978,456,518 | ||
| Cost of sales from other operations | 948,134,101 | 417,730,549 | ||
| 32,951,745,144 | 28,396,187,067 |
| (a) | Revenue and cost of sales from main operations | |||||
| 2024 | 2023 | |||||
| Revenue from main operations | Cost of sales from main operations | Revenue from main operations | Cost of sales from main operations | |||
| (Restated) | ||||||
| Sales of automobiles | 34,701,934,080 | 30,059,078,108 | 30,379,757,733 | 26,171,901,058 | ||
| Sales of automobile parts | 1,806,591,173 | 1,234,273,997 | 1,719,943,033 | 1,244,592,272 | ||
| Automobile maintenance services, etc. | 727,295,125 | 710,258,938 | 574,249,512 | 561,963,188 | ||
| 37,235,820,378 | 32,003,611,043 | 32,673,950,278 | 27,978,456,518 | |||
| (b) | Revenue and cost of sales from other operations | |||
| 2024 | 2023 | |||
| Revenue from other operations | Cost of sales from other operations | Revenue from other operations | Cost of sales from other operations | |||
| Sales of materials | 704,303,890 | 682,948,496 | 330,754,338 | 296,981,256 | ||
| Others | 434,036,480 | 265,185,605 | 162,620,465 | 120,749,293 | ||
| 1,138,340,370 | 948,134,101 | 493,374,803 | 417,730,549 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) | |||||
| (41) | Revenue and cost of sales (Cont’d) | |||||
| (c) | The breakdown of the Group’s revenue by product and service transfer time was as follows: | |||||
| 2024 | ||||||
| Automobiles | Automobile parts | Automobile maintenance services, etc. | Materials and others | Total | ||
| Revenue from main operations | 34,701,934,080 | 1,806,591,173 | 727,295,125 | - | 37,235,820,378 | |
| Including: Recognised at a time point | 34,701,934,080 | 1,806,591,173 | - | - | 36,508,525,253 | |
| Recognised within a certain period | - | - | 727,295,125 | - | 727,295,125 | |
| Revenue from other operations (i) | - | - | - | 1,138,340,370 | 1,138,340,370 | |
| 34,701,934,080 | 1,806,591,173 | 727,295,125 | 1,138,340,370 | 38,374,160,748 | ||
| 2023 | ||||||
| Automobiles | Automobile parts | Automobile maintenance services, etc. | Materials and others | Total | ||
| Revenue from main operations | 30,379,757,733 | 1,719,943,033 | 574,249,512 | - | 32,673,950,278 | |
| Including: Recognised at a time point | 30,379,757,733 | 1,719,943,033 | - | - | 32,099,700,766 | |
| Recognised within a certain period | - | - | 574,249,512 | - | 574,249,512 | |
| Revenue from other operations (i) | - | - | - | 493,374,803 | 493,374,803 | |
| 30,379,757,733 | 1,719,943,033 | 574,249,512 | 493,374,803 | 33,167,325,081 | ||
| (i) | The Group's revenue from other operations includes sales of materials and technical service provided. Revenue from sales of materials is recognised at a certain time point, and revenue from technical service provided is recognised within a certain period. | |||
| As at 31 December 2024, the amount of revenue corresponding to the performance obligations that the Group had contracted but had not commenced or completed was RMB838,497,814, of which the Group expects that RMB206,210,459 and RMB261,493,832 will be recognised as revenue from the sales of automobiles and parts and revenue from the sales of automobile maintenance services respectively in 2025, RMB370,793,523 will be recognised as revenue from automobile maintenance services from 2025 to 2029(Note 5(24)). | ||||
| (42) | Taxes and surcharges | |||
| 2024 | 2023 | |||
| Consumption tax | 1,127,393,441 | 807,035,414 | ||
| City maintenance and construction tax | 124,517,786 | 54,093,798 | ||
| Educational surcharge | 124,287,311 | 53,936,767 | ||
| Stamp tax | 50,452,323 | 18,749,571 | ||
| Land use tax | 20,374,559 | 20,610,246 | ||
| Real estate tax | 19,966,276 | 19,364,219 | ||
| Others | 453,393 | 381,313 | ||
| 1,467,445,089 | 974,171,328 | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) | |||
| (43) | Selling and distribution expenses | |||
| 2024 | 2023 | |||
| (Restated) | ||||
| Promotion expenses | 479,050,609 | 521,049,350 | ||
| Employee benefits | 252,743,744 | 230,660,091 | ||
| Advertising and new product planning fees | 112,244,723 | 168,368,816 | ||
| Storage expenses | 32,230,829 | 49,903,377 | ||
| Packaging material expenses | 29,861,191 | 33,681,580 | ||
| Depreciation and amortisation expenses | 15,597,750 | 12,751,571 | ||
| Others | 137,219,747 | 119,618,818 | ||
| 1,058,948,593 | 1,136,033,603 | |||
| (44) | General and administrative expenses | |||
| 2024 | 2023 | |||
| Employee benefits | 518,113,814 | 565,612,010 | ||
| Depreciation and amortisation expenses | 121,213,685 | 147,236,553 | ||
| Trademark license fee | 90,222,606 | 69,249,223 | ||
| Repair expenses | 32,646,022 | 30,690,596 | ||
| Consulting fees | 34,235,261 | 24,038,091 | ||
| General office expenses | 13,264,317 | 11,811,212 | ||
| Cartage fee | 6,447,412 | 3,212,158 | ||
| Others | 127,479,451 | 131,608,188 | ||
| 943,622,568 | 983,458,031 | |||
| (45) | Research and development expenses | |||
| 2024 | 2023 | |||
| Employee benefits | 705,363,425 | 574,111,697 | ||
| Design fee | 177,283,649 | 209,447,053 | ||
| Materials expenses | 212,613,178 | 242,947,545 | ||
| Depreciation and amortisation expenses | 82,982,038 | 67,981,814 | ||
| Others | 136,337,133 | 191,713,503 | ||
| 1,314,579,423 | 1,286,201,612 | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) | |||
| (46) | Financial expenses | |||
| 2024 | 2023 | |||
| Interest costs | 11,982,579 | 31,751,482 | ||
| Add: Interest costs on lease liabilities | 8,322,276 | 10,093,308 | ||
| Interest expenses | 20,304,855 | 41,844,790 | ||
| Less: Interest income from cash at bank | (192,964,801) | (237,934,702) | ||
| Other interest income | (5,950,496) | (13,117,861) | ||
| Interest income | (198,915,297) | (251,052,563) | ||
| Exchange gains or losses | 25,017,106 | 2,882,286 | ||
| Others | 1,283,199 | 1,416,733 | ||
| (152,310,137) | (204,908,754) | |||
| (47) | Asset impairment losses | |||
| 2024 | 2023 | |||
| Impairment of fixed assets | 36,573,579 | 252,193,642 | ||
| Losses on decline in the value of inventories | 30,027,245 | 73,577,937 | ||
| Impairment of intangible assets | - | 13,609,665 | ||
| Impairment of construction in progress | - | 5,744,314 | ||
| 66,600,824 | 345,125,558 | |||
| (48) | Credit impairment losses | |||
| 2024 | 2023 | |||
| Losses on bad debts of accounts receivable | (9,455,213) | 6,217,292 | ||
| Losses on bad debts of other receivables | (141,945) | 68,376 | ||
| Losses on bad debts of notes receivable | (17,497) | (300,857) | ||
| Losses on bad debts of long-term receivables | (23,557) | (20,328) | ||
| (9,638,212) | 5,964,483 | |||
| (49) | Other income | |||||
| 2024 | 2023 | Asset related/ Income related | ||||
| Government grants | ||||||
| - Supporting funds by government | 130,000,000 | 552,216,000 | Income related | |||
| - Research and development activities related subsidies | 16,559,837 | 2,752,567 | Income related | |||
| - Equipment purchasing-related subsidies | 1,610,714 | 1,610,714 | Asset related | |||
| - Other subsidies related with daily operation | 36,239,194 | 6,520,850 | Income related | |||
| Additional deduction of input VAT, etc. | 330,020,306 | 4,429,635 | — | |||
| 514,430,051 | 567,529,766 | |||||
| 5 | Notes to the consolidated financial statements (Cont’d) |
| (50) | Investment income | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 2024 | 2023 | |||
| Losses on discount of financing receivables eligible for derecognition (Note 5(6)) | (110,250) | (9,867,768) | ||
| Losses on long-term equity investments under equity method(Note 5(13)) | (10,363,917) | (9,591,118) | ||
| Investment income from forward exchange settlement | 5,237,734 | 6,757,648 | ||
| Investment income from financial assets held for trading | 4,294,164 | 2,122,192 | ||
| (942,269) | (10,579,046) | |||
| There is no significant restriction on the remittance of investment income of the Group. | ||||
| (51) | Gains on changes in fair value | |||
| 2024 | 2023 | |||
| Derivative financial assets and derivative financial liabilities - | ||||
| Gains/(Losses) on forward exchange contracts | 13,071,686 | (3,432,004) | ||
| Financial assets at fair value through profit or loss - | ||||
| Structural deposits | - | 604,877 | ||
| 13,071,686 | (2,827,127) | |||
| (52) | Gains on disposal of assets | |||||
| 2024 | 2023 | Amount recognised in non-recurring profit or loss in 2024 | ||||
| Gains/(Losses) on disposal of assets | 3,317,046 | (3,908,476) | 3,317,046 | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) | |||||
| (53) | Non-operating income | |||||
| 2024 | 2023 | Amount recognised in non-recurring profit or loss in 2024 | ||||
| Penalty income | 2,198,667 | 2,016,394 | 2,198,667 | |||
| Others | 2,845,126 | 6,859,486 | 2,845,126 | |||
| 5,043,793 | 8,875,880 | 5,043,793 | ||||
| (54) | Non-operating expenses | |||||||
| 2024 | 2023 | Amount recognised in non-recurring profit or loss in 2024 | ||||||
| Losses on scrapping of assets | 2,773,464 | 3,544,912 | 2,773,464 | |||||
| Donations | 2,792,688 | 2,005,050 | 2,792,688 | |||||
| Others | 4,414,005 | 491,061 | 4,414,005 | |||||
| 9,980,157 | 6,041,023 | 9,980,157 | ||||||
| (55) | Income tax expenses | |||||||
| 2024 | 2023 | |||||||
| Current income tax calculated based on tax law and related regulations | 26,622 | (36,527,990) | ||||||
| Deferred income tax | 52,904,175 | (229,824,580) | ||||||
| 52,930,797 | (266,352,570) | |||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) |
| (55) | Income tax expenses (Cont’d) |
| The reconciliation from income tax calculated based on the applicable tax rates and total profit presented in the consolidated income statement to the income tax expenses is listed as follows: | ||||
| 2024 | 2023 | |||
| Total profit | 1,258,107,606 | 798,142,127 | ||
| Income tax calculated at applicable tax rates | 188,716,141 | 119,721,319 | ||
| Effect of different applicable tax rates | (76,105,027) | (327,690,005) | ||
| Additional deductions | (172,777,356) | (211,427,507) | ||
| Deductive loss and temporary differences of the unrecognised deferred tax asset in the current period | 108,140,186 | 138,918,718 | ||
| Non-deductible investment losses | 1,554,588 | 1,438,668 | ||
| Costs, expenses and losses not deductible for tax purposes | 3,402,265 | 12,686,237 | ||
| Income tax expenses | 52,930,797 | (266,352,570) | ||
| (56) | Earnings per share | |||
| (a) | Basic earnings per share | |||
| Basic earnings per share are calculated by dividing consolidated net profit attributable to ordinary shareholders of the parent company by the weighted average number of outstanding ordinary shares of the parent company: | ||||
| 2024 | 2023 | |||
| Consolidated net profit attributable to ordinary shareholders of the parent company | 1,537,139,024 | 1,475,597,266 | ||
| Weighted average number of ordinary shares outstanding issued by the Company | 863,214,000 | 863,214,000 | ||
| Basic earnings per share | 1.78 | 1.71 | ||
| (b) | Diluted earnings per share are calculated by dividing consolidated net profit attributable to ordinary shareholders of the parent company adjusted based on the dilutive potential ordinary shares by the adjusted weighted average number of outstanding ordinary shares of the Company. As there were no dilutive potential ordinary shares in 2024 (2023: Nil), diluted earnings per share equalled to basic earnings per share. | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) | |||
| (57) | Notes to the cash flow statement | |||
| The Group does not present cash flows on a net basis, and the significant cash flow items are presented as follows: | ||||
| (a) | Cash received relating to other operating activities | |||
| 2024 | 2023 | |||
| Government grants | 179,310,467 | 570,888,569 | ||
| Guarantees | 67,713,679 | 55,489,359 | ||
| Others | 82,191,370 | 26,712,624 | ||
| 329,215,516 | 653,090,552 | |||
| (b) | Cash paid relating to other operating activities | |||
| 2024 | 2023 | |||
| Promotion expenses | 525,988,884 | 480,783,867 | ||
| Research and development expenses | 374,612,865 | 749,170,775 | ||
| Advertising expenses | 172,059,370 | 169,899,863 | ||
| Maintenance expenses | 95,340,158 | 89,032,387 | ||
| Guarantees | 55,333,833 | 39,706,110 | ||
| Consulting fees | 47,010,290 | 65,342,130 | ||
| Trademark royalties | 46,266,139 | 59,191,201 | ||
| Others | 546,374,861 | 877,505,033 | ||
| 1,862,986,400 | 2,530,631,366 | |||
| (c) | Cash received relating to other investing activities | |||
| 2024 | 2023 | |||
| Interest from cash at bank | 203,725,243 | 236,531,137 | ||
| Other interest | 14,579,833 | 17,591,395 | ||
| 218,305,076 | 254,122,532 | |||
| (d) | Cash paid relating to other financing activities |
| 2024 | 2023 | |||
| Payments of lease liabilities | 210,728,262 | 35,327,443 | ||
| Payment of deposit on a bank acceptance bill | - | 700,000,000 | ||
| Others | 330,952 | 203,835 | ||
| 211,059,214 | 735,531,278 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) | ||||
| (58) | Supplementary information to the cash flow statement | ||||
| (a) | Supplementary information to the cash flow statement | ||||
| Reconciliation from net profit to cash flows from operating activities | |||||
| 2024 | 2023 | ||||
| Net profit | 1,205,176,809 | 1,064,494,697 | |||
| Add: Asset impairment losses (Note 5(47)) | 66,600,824 | 345,125,558 | |||
| Credit impairment losses (Note 5(48)) | (9,638,212) | 5,964,483 | |||
| Depreciation of fixed assets (Note 5(14)) | 987,377,843 | 916,013,071 | |||
| Amortisation of intangible assets (Note 5(17)) | 411,075,768 | 303,459,508 | |||
| Depreciation of right-of-use assets (Note 5(16)) | 83,864,887 | 82,225,674 | |||
| (Gains) /Losses on disposal of long-term assets | (665,549) | 7,453,268 | |||
| Financial income | (153,285,041) | (206,132,603) | |||
| Investment loss (Note 5(50)) | 942,269 | 10,579,046 | |||
| (Gains) /Losses on changes in fair value (Note 5(51)) | (13,071,686) | 2,827,127 | |||
| Increase in deferred tax assets | (58,140,811) | (225,776,111) | |||
| Increase/(Decrease) in deferred tax liabilities | 111,044,986 | (4,048,469) | |||
| (Increase) /Decrease in inventories | (1,196,599,903) | 356,811,018 | |||
| (Decrease)/Increase in provisions | (69,967,486) | 46,435,780 | |||
| (Increase)/Decrease in operating receivables | (99,967,834) | 1,243,438,837 | |||
| Increase in operating payables | 1,366,475,616 | 639,523,406 | |||
| Decrease/(Increase) in other cash and cash equivalents | 2,161,737 | (20,854,424) | |||
| Net cash flows from operating activities | 2,633,384,217 | 4,567,539,866 | |||
| Net increase in cash and cash equivalents | ||||
| 2024 | 2023 | |||
| Cash and cash equivalents at the end of the year | 12,475,176,009 | 11,746,518,615 | ||
| Less: Cash and cash equivalents at the beginning of the year | (11,746,518,615) | (8,543,193,654) | ||
| Net increase in cash and cash equivalents | 728,657,394 | 3,203,324,961 | ||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) |
| (58) | Supplementary information to the cash flow statement (Cont’d) |
| (b) | Changes in liabilities arising from financing activities |
| Bank borrowings (including the current portion) | Lease liabilities (including the current portion) | Other Payables | Total | ||||
| 31 December 2023 | 1,314,705,163 | 218,076,092 | 139,255,009 | 1,672,036,264 | |||
| Cash inflows from financing activities | 2,992,390,000 | - | 85,750,000 | 3,078,140,000 | |||
| Cash outflows from financing activities | (2,817,515,228) | (65,990,982) | (740,015,912) | (3,623,522,122) | |||
| Interest accrued in the current year | 11,806,941 | 8,322,276 | 175,638 | 20,304,855 | |||
| Dividends accrued in the current year | - | - | 590,438,376 | 590,438,376 | |||
| Changes that do not involve cash receipts and payments | 25,304 | 19,029,635 | 49,816,724 | 68,871,663 | |||
| 31 December 2024 | 1,501,412,180 | 179,437,021 | 125,419,835 | 1,806,269,036 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) | |||
| (58) | Supplementary information to the cash flow statement (Cont’d) | |||
| (c) | Cash and cash equivalents | |||
| 31 December 2024 | 31 December 2023 | |||
| Cash at bank available for payment at any time | 11,067,571,593 | 10,653,646,811 | ||
| Cash at finance company available for payment at any time | 1,407,604,416 | 1,092,871,804 | ||
| 12,475,176,009 | 11,746,518,615 | |||
| (i) | As in Note 5(1), other cash and cash equivalents of RMB18,692,687 as at 31 December 2024(31 December 2023: RMB20,854,424) was not included in cash and cash equivalents. | |||||
| (59) | Foreign currency monetary items | |||||
| 31 December 2024 | ||||||
| Amounts in foreign currencies | Translation exchange rate | Amounts in RMB | ||||
| Long-term borrowings- | ||||||
| USD | 196,453 | 7.1884 | 1,412,180 | |||
| Other payables- | ||||||
| USD | 10,881,474 | 7.1884 | 78,220,386 | |||
| 79,632,566 | ||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 5 | Notes to the consolidated financial statements (Cont’d) |
| (60) | Lease |
| (a) | As a lessee |
| 31 December 2024 | 31 December 2023 | |||
| Interest expense on lease liabilities | 8,322,276 | 10,093,308 | ||
| Short-term lease expenses with simplified treatment through profit or loss for the period | 1,117,726 | 2,619,206 | ||
| Total cash outflows related to leases | 211,873,185 | 37,991,728 |
| The leased assets leased by the Group include houses and buildings used in the course of operation, and the lease term of houses and buildings is usually 1-5 years. Right-of-use assets, see note 5(16); For lease liabilities, see note 5(31). |
| (b) | As a lessor |
| The Group leases out its premises, buildings and means of transport for lease terms ranging from 1 to 3 years to form an operating lease. Operating leases Gains and losses related to operating leases are presented as follows: | ||||
| 2024 | 2023 | |||
| Rental income | 72,919,837 | 12,315,366 | ||
According to the lease contract with the lessee, the undiscounted minimum lease collection amountis as follows:
| 2024 | 2023 | |||
| Within 1 year (including 1 year) | 131,603,273 | 5,486,835 | ||
| 1 to 2 years (inclusive) | 43,748,470 | 1,627,160 | ||
| 2 years to 3 years (inclusive) | 18,874,242 | - | ||
| 194,225,985 | 7,113,995 | |||
| For fixed assets leased out of operation, see Note 5(14). | ||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 6 | Equity in other entities | ||||||||
| (1) | Equity in subsidiaries | ||||||||
| Structure of the Group | |||||||||
| Subsidiaries | Main place of business | Place of registration | Registered capital | Nature of business | Shareholding (%) | Method of acquisition | |||
| Direct | Indirect | ||||||||
| JMCS | Nanchang, Jiangxi | Nanchang, Jiangxi | 50,000,000 | Retail, wholesale and lease of automobiles | 100% | - | Set up by investment | ||
| JMCH | Taiyuan, Shanxi | Taiyuan, Shanxi | 1,323,793,174 | Manufacture and sales of automobiles | 100% | - | Business combinations involving enterprises not under common control | ||
| SZFJ | Shenzhen, Guangdong | Shenzhen, Guangdong | 10,000,000 | Retail, wholesale and lease of automobiles | 100% | - | Set up by investment | ||
| GZFJ | Guangzhou, Guangdong | Guangzhou, Guangdong | 10,000,000 | Retail, wholesale and lease of automobiles | 100% | - | Set up by investment | ||
| Jiangling Ford (Shanghai)(a) | Shanghai | Shanghai | 200,000,000 | Sales of automobiles, technical and business information consultation | 51% | - | Set up by investment | ||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 6 | Equity in other entities (Cont’d) | ||||||||||||||||
| (1) | Equity in subsidiaries (Cont’d) | ||||||||||||||||
| (a) | Subsidiaries with significant minority interests | ||||||||||||||||
| The Group determines the subsidiaries with significant minority interests by taking into account whether the subsidiaries are listed companies, the proportion of minority interests in the Group’s consolidated shareholders’ equity, and the proportion of profit or loss attributable to minority shareholders in the Group’s consolidated net profit, as follows: | |||||||||||||||||
| Subsidiaries | Shareholding of minority shareholders | Total profit or loss attributable to minority shareholders for the year ended 31 December 2024 | Dividends paid to minority shareholders for the year ended 31 December 2024 | Minority interests as at 31 December 2024 | |||||||||||||
| Jiangling Ford (Shanghai) | 49% | (331,962,215) | - | (697,235,333) | |||||||||||||
| Key financial information of the above significant non-wholly owned subsidiaries is presented below. | |||||||||||||||||
| 31 December 2024 | |||||||||||||||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | ||||||||||||
| Jiangling Ford (Shanghai) | 541,795,661 | 564,241,498 | 1,106,037,159 | 2,489,172,755 | 39,793,654 | 2,528,966,409 | |||||||||||
| 2024 | ||||||||
| Revenue | Net loss | Total comprehensive loss | Cash flows from operating activities | |||||
| Jiangling Ford (Shanghai) | 5,322,618,183 | (677,473,907) | (677,473,907) | (328,411,969) | ||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 6 | Equity in other entities (Cont’d) |
| (2) | Equity in associates |
| (a) | General information of significant associates |
| The Group determines the significant associates by taking into account factors such as whether the associates are listed companies, the proportion of their carrying amounts to the Group’s consolidated total assets, and the proportion of the investment income from long-term equity investments under equity method to the Group’s consolidated net profit, as set out below: |
| Place of registration | Shareholding (%) | |||||||||
| Direct | Indirect | |||||||||
| Associate - | ||||||||||
| The Power Company | Taiyuan, Shanxi | 40% | - | |||||||
| (b) | Summarised financial information for significant associates | |||||||||
| 31 December 2024 | 31 December 2023 | |||||||||
| The Power Company | The Power Company | |||||||||
| Current assets | 170,083,868 | 194,206,175 | ||||||||
| Non-current assets | 437,139,815 | 443,606,551 | ||||||||
| Total assets | 607,223,683 | 637,812,726 | ||||||||
| Current liabilities | 139,059,465 | 147,988,407 | ||||||||
| Non-current liabilities | 697 | 74,039 | ||||||||
| Total liabilities | 139,060,162 | 148,062,446 | ||||||||
| Equity | 468,163,521 | 489,750,280 | ||||||||
| Share of net assets based on shareholding (i) | 187,265,408 | 195,900,112 | ||||||||
| Adjustments | ||||||||||
| - Unrealised profits arising from internal transactions | (13,725,485) | (14,425,830) | ||||||||
| - Others (ii) | 20,853,323 | 20,853,323 | ||||||||
| Carrying amount of equity investments in associates | 194,393,246 | 202,327,605 | ||||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 6 | Equity in other entities (Cont’d) | |||||
| (2) | Equity in associates (Cont’d) | |||||
| (b) | Summarised financial information for significant associates (Cont’d) | |||||
| 2024 | 2023 | |||||
| The Power Company | The Power Company | |||||
| Revenue | 55,024,619 | 52,305,024 | ||||
| Net loss | (21,745,330) | (29,383,136) | ||||
| Other comprehensive income | - | - | ||||
| Total comprehensive loss | (21,745,330) | (29,383,136) | ||||
| Dividends received from associates by the Group | - | - | ||||
| (i) | The Group calculated the shares of net assets in proportion of the shareholdings and based on the amount attributable to the parent company of the associates in their consolidated financial statements. The amount in the consolidated financial statements of associates considers the fair value of identifiable assets and liabilities at the time of acquisition of the investments and the impact of adjustments to uniform accounting policies. None of the assets involved in transactions between the Group and associates contribute to business. | |||||
| (ii) | Other adjustments were mainly the remeasurement of fair value of remaining equity in the consolidated financial statements, which resulted from the loss of control over the original subsidiary due to the disposal of part of the equity investment. | |||||
| (c) | Summarised information of insignificant associates | |||
| 2024 | 2023 | |||
| Aggregated carrying amount of investments | 24,904,785 | 31,470,743 | ||
| Aggregate of the following items based on shareholding | ||||
| Net loss(i) | (2,429,558) | (863,034) | ||
| Other comprehensive income (i) | - | - | ||
| Total comprehensive loss | (2,429,558) | (863,034) | ||
| (i) | Net profit and other comprehensive income have taken into account the fair value of identifiable assets and liabilities at the time of acquisition of the investments and the impact of adjustments to uniform accounting policies. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 7 | Segment information |
| Revenue and profits of the Group mainly arise from production and domestic sales of automobiles, and the primary assets of the Group are all located in China. Management of the Group assesses the operating performance of the Group as a whole. Therefore, no segment report is prepared for the current year. In 2024, the revenue obtained from a single customer of the Group accounted for more than 10% of the Group’s revenue, amounting to RMB10,846,977,547, or 28.27% (2023: 27.76% ), of the Group’s revenue. |
| 8 | Related parties and related party transactions | |||||
| (1) | Information of major shareholders | |||||
| (a) | General information of major shareholders | |||||
| Type of enterprise | Place of registration | Legal representative | Nature of business | Code of organisation | ||
| JIC | State-owned enterprise | Nanchang, China | Qiu Tiangao | Investment and asset management | 91360125MA38LUR91F | |
| Ford | Foreign enterprise | United States | William Clay Ford, Jr. | Manufacture and sales of automobiles | N/A | |
| (b) | Registered capital and changes in major shareholders | |||||
| 31 December 2023 | Increase in the current year | Decrease in the current year | 31 December 2024 | |||||||
| JIC | 1,000,000,000 | - | - | 1,000,000,000 | ||||||
| Ford | USD 42,000,000 | - | - | USD 42,000,000 | ||||||
| (c) | The percentages of shareholding and voting rights in the Company held by major shareholders | |||||||||
| 31 December 2024 | 31 December 2023 | |||||||||
| Shareholding (%) | Voting rights (%) | Shareholding (%) | Voting rights (%) | |||||||
| JIC | 41.03% | 41.03% | 41.03% | 41.03% | ||||||
| Ford | 32% | 32% | 32% | 32% | ||||||
| (2) | Information of subsidiaries |
| The general information and other related information of subsidiaries are set out in Note 6(1). | |
| (3) | Information of associates |
| The information of associates is set out in Note 5(13). |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 8 | Related parties and related party transactions (Cont’d) | |
| (4) | Information of other related parties | |
| Relationship with the Group | ||
| JMCG | Shareholder of JIC | |
| Chongqing Changan Automobile Co., Ltd.(hereinafter referred to as “Chongqing Changan”) | Shareholder of JIC | |
| Jiangling Automobile Group (Nanchang) Fushan Energy Co., Ltd. | Controlled by JMCG | |
| Jiangxi JMCG Industry Co., Ltd. | Controlled by JMCG | |
| JMCF | Controlled by JMCG | |
| Jiangxi JMCG Specialty Vehicles Co., Ltd. | Controlled by JMCG | |
| Jiangxi Jiangling Lear Interior System Co., Ltd. | Controlled by JMCG | |
| Jiangxi Lingrui Recycling Resources Development Corporation | Controlled by JMCG | |
| Jiangxi Jiangling Chassis Co., Ltd. | Controlled by JMCG | |
| Nanchang Jiangling HuaXiang Auto Components Co., Ltd. | Controlled by JMCG | |
| Jiangling Material Co., Ltd. | Controlled by JMCG | |
| JMCG Property Management Co. | Controlled by JMCG | |
| JMCG Jiangxi Engineering Construction Co., Ltd. | Controlled by JMCG | |
| Nanchang JMCG Liancheng Auto Component Co., Ltd. | Controlled by JMCG | |
| Jiangling Aowei Automobile Spare Part Co., Ltd. | Controlled by JMCG | |
| Nanchang JMCG Shishun Logistics Co., Ltd. | Controlled by JMCG | |
| Nanchang Lianda Machinery Co., Ltd. | Controlled by JMCG | |
| JMCG Jingma Motors Co., Ltd. | Controlled by JMCG | |
| Jiangxi JMCG Shangrao Industrial Co.,Ltd. | Controlled by JMCG | |
| Nanchang Unistar Electric & Electronics Co., Ltd. | Controlled by JMCG | |
| Jiangxi ISUZU Engine Co., Ltd. | Controlled by JMCG | |
| Jiangxi ISUZU Co., Ltd. | Controlled by JMCG | |
| Nanchang Hengou Industry Co., Ltd. | Controlled by JMCG | |
| Nanchang Jiangling Group Frame Co., Ltd | Controlled by JMCG | |
| Jiangxi Jiangling Special Purpose Vehicle Co., Ltd. | Controlled by JMCG | |
| Jiangling Motor Electricity Vehicle Co., Ltd. | Controlled by JMCG | |
| Jiangxi Lingge Non-ferrous Metal Die-casting Co., Ltd. | Controlled by JMCG | |
| Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. | Controlled by JMCG | |
| Jiangxi JMCG Specialty Vehicles Sales Corporation, Ltd. | Controlled by JMCG | |
| Nanchang Gear Forging Co.,Ltd. | Controlled by JMCG | |
| Jiangxi JMCG Boya brake system Co., Ltd. | Controlled by JMCG | |
| Jiangxi Mingfang Auto Parts Industry Co., Ltd. | Controlled by JMCG | |
| Jiangxi Jiangling group Fuxin Auto Parts Co., Ltd. | Controlled by JMCG | |
| Nanchang JMCG Xinchen Auto Component Co., Ltd. | Controlled by JMCG | |
| Ford Motor (China) Co., Ltd. | Controlled by Ford | |
| Ford Trading Company, LLC | Controlled by Ford | |
| Ford Motor Research & Engineering (Nanjing) Co., Ltd. | Controlled by Ford | |
| Ford Global Technologies, LLC | Controlled by Ford | |
| Ford Vietnam Limited | Controlled by Ford | |
| Ford Motor Co. Thailand Ltd. | Controlled by Ford | |
| Auto Alliance (Thailand) Co., Ltd. | Controlled by Ford | |
| Ford Electric Mach Technology (Nanjing) Co., Ltd. | Controlled by Ford | |
| Ford Otomotiv Sanayi A.S. | Joint venture of Ford | |
| Changan Ford Automobile Co., Ltd. | Joint venture of Ford | |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 8 | Related parties and related party transactions (Cont’d) | |
| (4) | Information of other related parties | |
| Relationship with the Group | ||
| China Changan Group Tianjin Sales Co., Ltd. | Controlled by Ultimate Holding Company of Chongqing Changan | |
| Dali Wanfu Vehicle Sales & Service Co., Ltd. | Controlled by Ultimate Holding Company of Chongqing Changan | |
| Chongqing Anfu Vehicle Marketing Co., Ltd. | Controlled by Ultimate Holding Company of Chongqing Changan | |
| Chengdu Wanxing Vehicle Sales & Service Co., Ltd. | Controlled by Ultimate Holding Company of Chongqing Changan | |
| Chongqing Anbo Vehicle Sales Co., Ltd. | Controlled by Ultimate Holding Company of Chongqing Changan | |
| Guizhou Wanfu Vehicle Sales & Service Co., Ltd. | Controlled by Ultimate Holding Company of Chongqing Changan | |
| Beijing Baiwang Changfu Vehicle Sales & Service Co., Ltd. | Controlled by Ultimate Holding Company of Chongqing Changan | |
| Beijing Beifang Changfu Vehicle Sales & Service Co., Ltd. | Controlled by Ultimate Holding Company of Chongqing Changan | |
| Guizhou Wanjia Automobile Sales and Service Co. LTD | Controlled by Ultimate Holding Company of Chongqing Changan | |
| Nanchang Yinlun Heat-exchanger Co., Ltd. | Joint venture of JMCG | |
| Jiangling Motor Holdings Co., Ltd. | Associate of JMCG | |
| Magna PT Powertrain (Jiangxi) Co., Ltd. | Associate of JMCG | |
| Nanchang Baojiang Steel Processing Distribution Co., Ltd. | Associate of JMCG | |
| Faurecia Emissions Control Technologies (Nanchang) Co., Ltd. | Associate of JMCG | |
| Jiangxi Jiangling Group Special Vehicle Co., Ltd. | Associate of JMCG | |
| Nanchang JMCG SMR Huaxiang Mirror Co., Ltd. | Associate of JMCG | |
| Jiangxi Lingyun Automobile Industry Technology Co., Ltd. | Associate of JMCG | |
| Jiangxi Zhonglian Intelligent Logistics Co., Ltd. | Associate of JMCG | |
| Dibao transportation equipment (Nanchang) Co., Ltd. | Associate of JMCG | |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 8 | Related parties and related party transactions (Cont’d) | ||||
| (5) | Related party transactions | ||||
| (a) | Purchase and sales of goods, provision and receipt of services | ||||
| Purchase of goods: | |||||
| Natue of related party transactions | 2024 | 2023 | |||
| Ford | Purchase of automobile parts | 1,400,778,072 | 209,574,211 | ||
| Nanchang Jiangling HuaXiang Auto Components Co., Ltd. | Purchase of automobile parts | 1,263,327,476 | 1,073,623,228 | ||
| Magna PT Powertrain (Jiangxi) Co., Ltd. | Purchase of automobile parts | 1,213,283,975 | 1,234,830,816 | ||
| Jiangxi Jiangling Chassis Co., Ltd. | Purchase of automobile parts | 868,277,838 | 671,593,708 | ||
| Nanchang Baojiang Steel Processing Distribution Co., Ltd. | Purchase of raw and auxiliary materials | 820,314,741 | 742,956,579 | ||
| Jiangxi Zhonglian Intelligent Logistics Co., Ltd. | Purchase of automobile parts | 803,875,765 | 676,134,340 | ||
| Jiangxi Jiangling Lear Interior System Co., Ltd. | Purchase of automobile parts | 759,463,783 | 739,454,498 | ||
| Jiangxi Jiangling Special Purpose Vehicle Co., Ltd. | Purchase of automobile parts | 544,252,769 | 502,323,040 | ||
| Nanchang JMCG Liancheng Auto Component Co., Ltd. | Purchase of automobile parts | 368,113,693 | 330,845,695 | ||
| Nanchang Unistar Electric & Electronics Co., Ltd. | Purchase of automobile parts | 228,332,729 | 279,622,115 | ||
| Faurecia Emissions Control Technologies (Nanchang) Co., Ltd. | Purchase of automobile parts | 222,487,974 | 318,072,152 | ||
| Jiangxi Lingyun Automobile Industry Technology Co., Ltd | Purchase of automobile parts | 195,120,129 | 196,007,909 | ||
| Nanchang JMCG Shishun Logistics Co., Ltd. | Purchase of automobile parts | 181,101,384 | 192,633,046 | ||
| Changan Ford Automobile Co., Ltd. | Purchase of automobile parts | 178,623,753 | 29,984,492 | ||
| Hanon Systems | Purchase of automobile parts | 148,048,317 | 145,092,844 | ||
| Ford Motor Co. Thailand Ltd. | Purchase of automobile parts | 139,753,289 | 5,025,699 | ||
| Nanchang JMCG SMR Huaxiang Mirror Co., Ltd. | Purchase of automobile parts | 135,512,745 | 115,360,810 | ||
| Nanchang Yinlun Heat-exchanger Co., Ltd. | Purchase of automobile parts | 117,276,155 | 115,311,831 | ||
| Dibao Transportation Equipment (Nanchang) Co., Ltd. | Purchase of automobile parts | 106,869,480 | 60,792,520 | ||
| JMCG | Purchase of automobile parts | 77,426,792 | 5,567,401 | ||
| Jiangxi Lingge Non-ferrous Metal Die-casting Co., Ltd. | Purchase of automobile parts | 64,642,915 | 69,811,815 | ||
| Jiangxi JMCG Specialty Vehicles Co., Ltd. | Purchase of automobile parts | 49,607,876 | 29,236,531 | ||
| Jiangxi Jiangling Group Special Vehicle Co., Ltd. | Purchase of automobile parts | 42,443,490 | 35,254,361 | ||
| Jiangxi Lingrui Recycling Resources Development Corporation | Purchase of raw and auxiliary materials | 33,427,557 | 34,228,198 | ||
| Nanchang Lianda Machinery Co., Ltd. | Purchase of automobile parts | 32,400,213 | 36,590,311 | ||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 8 | Related parties and related party transactions (Cont’d) | |||||
| (5) | Related party transactions | |||||
| (a) | Purchase and sales of goods, provision and receipt of services | |||||
| Purchase of goods(Cont’d): | ||||||
| Jiangling Automobile Group (Nanchang) Fushan Energy Co., Ltd. | Purchase of raw and auxiliary materials | 30,611,533 | 21,306,073 | |||
| Jiangxi JMCG Boya brake system Co., Ltd. | Purchase of automobile parts | 28,423,858 | 21,152,868 | |||
| Jiangxi JMCG Shangrao Industrial Co.,Ltd. | Purchase of automobile parts | 26,325,532 | 3,640,870 | |||
| Jiangxi Jiangling Group Fuxin Auto Parts Co., Ltd | Purchase of automobile parts | 22,436,081 | 12,877,795 | |||
| Jiangxi Mingfang Auto Parts Industry Co., Ltd. | Purchase of automobile parts | 14,178,898 | 10,792,593 | |||
| Jiangling Aowei Automobile Spare Part Co., Ltd. | Purchase of automobile parts | 10,685,318 | 11,810,460 | |||
| Nanchang JMCG Xinchen Auto Component Co., Ltd. | Purchase of automobile parts | 6,604,035 | 6,916,734 | |||
| Auto Alliance (Thailand) Co., Ltd. | Purchase of automobile parts | 5,441,378 | 23,272,017 | |||
| Jiangxi ISUZU Engine Co., Ltd. | Purchase of automobile parts | 2,908,662 | 5,902,036 | |||
| Jiangling Motor Holdings Co., Ltd | Purchase of automobile parts | 2,741,332 | 4,416,533 | |||
| Nanchang Gear Forging Co., Ltd. | Purchase of automobile parts | 2,563,330 | 1,700,955 | |||
| Ford Otomotiv Sanayi A.S. | Purchase of automobile parts | 1,867,906 | 6,124,706 | |||
| JMCG Jingma Motors Co., Ltd. | Purchase of automobile parts | 1,718,914 | 887,114 | |||
| Nanchang Jiangling Group Frame Co., Ltd | Purchase of automobile parts | 1,000,762 | - | |||
| Jiangling Material Co., Ltd. | Purchase of raw and auxiliary materials | - | 9,453,368 | |||
| 10,152,270,449 | 7,990,182,272 | |||||
| The products purchased by the Group from related parties are divided into two categories: purchase of imported parts and purchase of domestic parts. ? The pricing on imported parts purchased from Ford or its suppliers is based on the agreed price by both parties; ? The pricing on domestic accessories purchased from other related parties is determined through quotation, cost accounting, and negotiation between the two parties, and is adjusted regularly. | ||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 8 | Related parties and related party transactions (Cont’d) | ||||
| (5) | Related party transactions (Cont’d) | ||||
| (a) | Purchase and sales of goods, provision and receipt of services (Cont’d) | ||||
| Receipt of services: | |||||
| Nature of related party transactions | 2024 | 2023 | |||
| Nanchang JMCG Shishun Logistics Co., Ltd. | Transportation, cartage fees, etc. | 291,458,533 | 279,310,486 | ||
| Ford Global Technologies, LLC | Trademark management fees, technology development | 228,664,502 | 230,160,051 | ||
| Ford Motor Research & Engineering (Nanjing) Co., Ltd. | Design fees, personnel costs | 135,795,642 | 194,494,776 | ||
| JMCG Jiangxi Engineering Construction Co., Ltd. | Engineering construction | 120,556,432 | 15,415,319 | ||
| Ford | Technical services and personnel costs | 85,994,180 | 54,350,740 | ||
| Jiangxi Zhonglian Intelligent Logistics Co., Ltd. | Cartage fees, storage fees, etc. | 64,392,144 | 80,922,767 | ||
| Ford Motor (China) Co., Ltd. | Design fees, personnel costs, etc. | 41,382,841 | 59,693,175 | ||
| Jiangxi JMCG Industry Co., Ltd. | Meal fees | 33,349,736 | 32,267,146 | ||
| Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. | Agency fees, advertising fees, etc. | 17,326,503 | 16,523,698 | ||
| JMCG Property Management Co. | Property fees, etc. | 14,600,286 | 10,527,990 | ||
| JMCG | Labour costs, rental fees, etc. | 4,087,090 | 4,843,455 | ||
| China Changan Group Tianjin Sales Co., Ltd. | Promotion expenses | 3,394,286 | 2,172,513 | ||
| Guizhou Wanfu Vehicle Sales & Service Co., Ltd. | Promotion expenses | 3,021,024 | 1,821,952 | ||
| Chongqing Changan | Personnel costs | 2,574,845 | 2,394,350 | ||
| Chengdu Wanxing Vehicle Sales & Service Co., Ltd. | Promotion expenses | 2,522,662 | 1,375,979 | ||
| Chongqing Anfu Vehicle Marketing Co., Ltd. | Promotion expenses | 2,491,320 | 1,941,436 | ||
| Jiangxi JMCG Specialty Vehicles Sales Corporation, Ltd. | Promotion expenses | 1,509,142 | 408,775 | ||
| Ford Otomotiv Sanayi A.S. | Technical services and technical development | 1,215,889 | 7,096,986 | ||
| JMCG Jingma Motors Co., Ltd. | Promotion expenses | 1,124,348 | 386,767 | ||
| Changan Ford Automobile Co., Ltd. | Service fees, labour costs, etc. | 703,553 | 4,654,227 | ||
| Beijing Baiwang Changfu Vehicle Sales & Service Co., Ltd. | Promotion expenses | 629,673 | 1,471,768 | ||
| Dali Wanfu Vehicle Sales & Service Co., Ltd. | Promotion expenses | 368,012 | 1,112,059 | ||
| Magna PT Powertrain (Jiangxi) Co., Ltd. | Design fees, experimental costs | 37,220 | 2,418,126 | ||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 8 | Related parties and related party transactions (Cont’d) | |||||
| (5) | Related party transactions (Cont’d) | |||||
| (a) | Purchase and sales of goods, provision and receipt of services (Cont’d) | |||||
| Receipt of services: | ||||||
| Nature of related party transactions | 2024 | 2023 | ||||
| Nanchang Jiangling HuaXiang Auto Components Co., Ltd. | Repair Expense | - | 1,000,000 | |||
| 1,057,199,863 | 1,006,764,541 | |||||
| The Group’s pricing on services received from related parties is based on the agreed price by both parties. | ||||||
| Sales of goods and provision of services: | |||||
| Nature of related party transactions | 2024 | 2023 | |||
| Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. | Sales of vehicles and accessories, etc. | 10,827,024,547 | 9,195,254,309 | ||
| Jiangxi JMCG Specialty Vehicles Sales Corporation, Ltd. | Sales of vehicles, etc. | 158,841,415 | 233,284,195 | ||
| Jiangxi JMCG Specialty Vehicles Co., Ltd. | Sales of vehicles and accessories | 147,776,860 | 117,122,584 | ||
| JMCG Jingma Motors Co., Ltd. | Sales of vehicles and accessories, etc | 123,316,338 | 138,140,667 | ||
| Chongqing Anfu Vehicle Marketing Co., Ltd. | Sales of vehicles and accessories | 108,989,648 | 59,076,555 | ||
| China Changan Group Tianjin Sales Co., Ltd. | Sales of vehicles and accessories | 103,326,239 | 53,741,159 | ||
| Chengdu Wanxing Vehicle Sales & Service Co., Ltd. | Sales of vehicles and accessories | 98,609,717 | 52,044,606 | ||
| Jiangxi Zhonglian Intelligent Logistics Co., Ltd. | Sales of accessories, etc | 84,009,526 | 804,119 | ||
| Jiangxi Lingrui Recycling Resources Development Corporation | Sales of waste materials, etc. | 70,715,213 | 61,983,828 | ||
| Guizhou Wanfu Vehicle Sales & Service Co., Ltd. | Sales of vehicles and accessories | 60,983,086 | 57,023,957 | ||
| Jiangxi Jiangling Chassis Co., Ltd. | Sales of accessories | 31,378,213 | 41,569,726 | ||
| Nanchang JMCG SMR Huaxiang Mirror Co., Ltd. | Sales of accessories | 30,704,569 | 16,554,633 | ||
| Jiangxi ISUZU Engine Co., Ltd. | Sales of accessories | 30,660,694 | 30,991,252 | ||
| Jiangxi Jiangling Special Purpose Vehicle Co., Ltd. | Sales of vehicles and accessories | 26,328,071 | 8,541,781 | ||
| Nanchang Hengou Industry Co., Ltd. | Sales of accessories, etc | 22,279,648 | 13,346,388 | ||
| Jiangxi Jiangling Special Purpose Vehicle Co., Ltd. | Sales of vehicles and accessories | 21,765,371 | 33,140,757 | ||
| Nanchang Jiangling HuaXiang Auto Components Co., Ltd. | Sales of accessories | 21,492,252 | 3,379,221 | ||
| Jiangxi Jiangling Lear Interior System Co., Ltd. | Sales of accessories | 19,454,493 | 20,799,067 | ||
| Nanchang JMCG Liancheng Auto Component Co., Ltd. | Sales of accessories | 16,742,013 | 11,140,167 | ||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 8 | Related parties and related party transactions (Cont’d) | |||||
| (5) | Related party transactions (Cont’d) | |||||
| (a) | Purchase and sales of goods, provision and receipt of services (Cont’d) | |||||
| Sales of goods and provision of services(Cont’d): | ||||||
| Nature of related party transactions | 2024 | 2023 | ||||
| Jiangxi ISUZU Co., Ltd. | Sales of accessories | 15,463,036 | 30,173,657 | |||
| Beijing Baiwang Changfu Vehicle Sales & Service Co., Ltd. | Sales of vehicles and accessories | 11,338,763 | 24,605,654 | |||
| Guizhou Wanjia Automobile Sales and Service Co. LTD | Sales of vehicles and accessories | 7,641,217 | 19,961,873 | |||
| Beijing Beifang Changfu Vehicle Sales & Service Co., Ltd. | Sales of vehicles and accessories | 4,620,426 | 19,437,596 | |||
| Jiangxi JMCG Industry Co., Ltd. | Sales of accessories and waste materials | 3,756,352 | 3,024,062 | |||
| Jiangling Motor Electricity Vehicle Co., Ltd. | Sales of accessories | 1,172,369 | 762,856 | |||
| Nanchang Lianda Machinery Co., Ltd. | Sales of accessories | 949,988 | 1,517,492 | |||
| Magna PT Powertrain (Jiangxi) Co., Ltd. | Sales of accessories | 817,800 | 1,036,350 | |||
| JMCG | Sales of accessories, labor costs | 283,636 | 1,746,828 | |||
| Jiangling Motor Holdings Co., Ltd. | labor costs | 214,105 | 1,060,073 | |||
| Dali Wanfu Vehicle Sales & Service Co., Ltd. | Sales of vehicles and accessories | 140,934 | 20,415,905 | |||
| Chongqing Anbo Vehicle Sales Co., Ltd. | Sales of vehicles and accessories | 1,657 | 6,378,430 | |||
| 12,050,798,196 | 10,278,059,747 | |||||
| The Group’s pricing on goods sold to related parties is based on the agreed price by both parties. | ||||||
| (b) | Leases | |||||
| (i) | The lease income recognised in the current year with the Group as the lessor: | ||||
| Name of the lessee | Type of the leased asset | 2024 | 2023 | ||
| Jiangling Motor Holdings Co., Ltd. | Buildings | 158,956 | 54,000 | ||
| Jiangxi ISUZU Co., Ltd. | Buildings | 6,480 | - | ||
| 165,436 | 54,000 | ||||
| (ii) | Increase of right-of-use assets in the current year with the Group as the lessee | ||||||
| Name of the lessor | Type of the leased asset | 2024 | 2023 | ||||
| Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. | Buildings | 37,552,314 | - | ||||
| Ford Motor (China) Co., Ltd | Buildings | 608,092 | - | ||||
| JMCG | Buildings | 364,586 | 27,245,841 | ||||
| 38,524,992 | 27,245,841 | ||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 8 | Related parties and related party transactions (Cont’d) | |||||
| (5) | Related party transactions (Cont’d) | |||||
| (b) | Leases(Cont’d) | |||||
| (iii) | Interest costs on lease liabilities in the current year with the Group as the lessee: | |||||
| Type of the leased asset | 2024 | 2023 | ||||
| Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. | Buildings | 998,142 | 247,082 | |||
| JMCG | Buildings | 503,840 | 251,975 | |||
| Ford Motor (China) Co., Ltd | Buildings | 11,845 | - | |||
| 1,513,827 | 499,057 | |||||
| (c) | Guarantee received | ||||
| Guarantor | Guaranteed amount | Starting date | Ending date | Fully performed or not | |
| JMCF | 1,412,180 | 5 March 2001 | 30 October 2029 | Not fully performed | |
| In 2024, JMCF provided guarantees for some bank borrowings of the Group, with a maximum guarantee limit of USD2,282,123. As at 31 December 2024, JMCF provided borrowing guarantee to the bank borrowing of USD196,453, equivalent to RMB1,412,180 (31 December 2023: USD261,937 equivalent to RMB1,855,219) for the Group. |
| (d) | Transfer of assets | ||||
| Nature of related party transactions | 2024 | 2023 | |||
| JMCG Jingma Motors Co., Ltd. | Sales of fixed assets | 44,381 | - | ||
| Jiangxi JMCG Industry Co., Ltd. | Sales of fixed assets | 4,442 | - | ||
| Jiangxi Lingrui Recycling Resources Development Corporation | Sales of fixed assets | - | 133,360 | ||
| 48,823 | 133,360 | ||||
| The pricing on transfer of assets between the Group and related parties is based on the agreed price by both parties. | |||||
| (e) | Purchase of assets | ||||
| Nature of related party transactions | 2024 | 2023 | |||
| Jiangxi Jiangling Special Purpose Vehicle Co., Ltd. | Purchase of fixed assets | 34,995,383 | 33,005,751 | ||
| Nanchang Jiangling HuaXiang Auto Components Co., Ltd. | Purchase of fixed assets | 24,446,632 | 48,867,431 | ||
| Nanchang JMCG Liancheng Auto Component Co., Ltd. | Purchase of fixed assets | 5,003,929 | 15,020,583 | ||
| JMCG Jingma Motors Co., Ltd. | Purchase of fixed assets | 3,928,253 | - | ||
| Jiangxi Jiangling Lear Interior System Co., Ltd. | Purchase of fixed assets | 2,693,550 | 1,071,960 | ||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 8 | Related parties and related party transactions (Cont’d) | ||||||
| (5) | Related party transactions (Cont’d) | ||||||
| (e) | Purchase of assets (Cont’d) | ||||||
| Faurecia Emissions Control Technologies (Nanchang) Co., Ltd. | Purchase of fixed assets | 2,210,790 | - | ||||
| Magna PT Powertrain (Jiangxi) Co., Ltd. | Purchase of fixed assets | 1,952,878 | 4,050,000 | ||||
| Jiangxi JMCG Specialty Vehicles Co., Ltd. | Purchase of fixed assets | 135,036 | 553,857 | ||||
| 75,366,451 | 102,569,582 | ||||||
| The pricing on purchase of assets between the Group and related parties is based on the agreed price by both parties. | |||||||
| (f) | Provision of technology sharing and distribution service | |||
| Nature of related party transactions | 2024 | 2023 | ||
| Ford Electric Mach Technology (Nanjing) Co., Ltd | Technical service | 199,272,148 | - | |
| Ford Motor (China) Co., Ltd. | Distribution and technical service | 24,096,419 | 28,210,737 | |
| Ford Motor Research & Engineering (Nanjing) Co., Ltd. | Technical service | 23,758,214 | 79,761,786 | |
| Ford Vietnam Limited | Technical service | 22,710,000 | 12,700,000 | |
| Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. | Technical service | 20,450,200 | 12,130,959 | |
| Nanchang Hengou Industry Co., Ltd. | Technical service | 4,557,500 | - | |
| Ford Trading Company, LLC | Technical service | 2,770,000 | 1,509,518 | |
| Jiangxi ISUZU Co., Ltd. | Technical service | - | 3,990,000 | |
| Ford | Technical service | - | 3,313,725 | |
| 297,614,481 | 141,616,725 | |||
| The Group’s pricing on technology sharing provided to related parties is based on the agreed price by both parties. | ||||
| (g) | Remuneration of key management | |||
| 2024 | 2023 | |||
| Remuneration of key management | 14,163,069 | 12,564,194 | ||
| (h) | Interest income | |||
| 2024 | 2023 | |||
| JMCF | 18,455,436 | 15,036,500 | ||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 8 | Related parties and related party transactions (Cont’d) | |||
| (5) | Related party transactions (Cont’d) | |||
| (h) | Interest income (Cont’d) | |||
| Cash at bank of the Group deposited with JMCF was calculated based on the bank annual interest rate for RMB deposit of 1.35% to 2.25% over the same period (2023: 0.455% to 2.25%). | ||||
| (i) | Interest expenses | |||
| 2024 | 2023 | |||
| Jiangxi Zhonglian Intelligent Logistics Co., Ltd. | 120,000 | 120,000 | ||
| Nanchang JMCG Shishun Logistics Co., Ltd. | 30,000 | 30,000 | ||
| 150,000 | 150,000 | |||
| (j) | Purchase of CAFC credit and NEV credit | |||
| 2024 | 2023 | |||
| Jiangling Motor Holdings Co., Ltd. | - | 233,811 | ||
| (k) | Funds borrowed in | |||
| 2024 | 2023 | |||
| Ford Motor (China) Co., Ltd. | 85,750,000 | - | ||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 8 | Related parties and related party transactions (Cont’d) | |||||||
| (6) | Receivables from and payables to related parties | |||||||
| 31 December 2024 | 31 December 2023 | |||||||
| Amount | Provision for bad debts | Amount | Provision for bad debts | |||||
| Accounts receivable | ||||||||
| Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. | 2,984,138,301 | 6,078,032 | 2,681,807,388 | 5,431,789 | ||||
| Jiangxi JMCG Specialty Vehicles Co., Ltd. | 55,452,936 | 17,776 | 39,985,715 | 48,790 | ||||
| JMCG Jingma Motors Co., Ltd. | 33,013,773 | 99,416 | 32,388,453 | 106,014 | ||||
| Jiangxi Zhonglian Intelligent Logistics Co., Ltd. | 19,871,496 | 59,614 | 304,992 | 915 | ||||
| Ford Electric Mach Technology (Nanjing) Co., Ltd | 7,673,176 | 23,020 | - | - | ||||
| Jiangxi ISUZU Engine Co., Ltd. | 7,314,839 | 21,945 | 9,873,973 | 29,622 | ||||
| Jiangxi JMCG Specialty Vehicles Sales Corporation, Ltd. | 6,455,121 | 1,920 | 7,564,961 | 9,076 | ||||
| Ford Motor (China) Co., Ltd. | 6,304,028 | 18,912 | 4,507,064 | 13,521 | ||||
| Nanchang Jiangling HuaXiang Auto Components Co., Ltd. | 5,182,808 | 15,548 | 1,275,203 | 3,826 | ||||
| Jiangxi Jiangling Lear Interior System Co., Ltd. | 4,753,891 | 14,262 | 3,792,069 | 11,376 | ||||
| Ford Vietnam Limited | 3,850,000 | 11,550 | 5,320,000 | 15,960 | ||||
| Nanchang JMCG Liancheng Auto Component Co., Ltd. | 3,764,288 | 11,293 | 2,938,482 | 8,815 | ||||
| Jiangxi ISUZU Co., Ltd. | 3,720,130 | 11,160 | 11,507,006 | 34,521 | ||||
| Nanchang Hengou Industry Co., Ltd. | 234,552 | 704 | 2,114,644 | 6,344 | ||||
| Jiangxi Jiangling Special Purpose Vehicle Co., Ltd. | 25,942 | 78 | 2,827,718 | 144,662 | ||||
| Jiangxi Jiangling Group Special Vehicle Co., Ltd. | - | - | 5,471,828 | 6,565 | ||||
| 3,141,755,281 | 6,385,230 | 2,811,679,496 | 5,871,796 | |||||
| Other receivables | ||||||||
| Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. | 4,959,843 | 24,439 | 8,636,151 | 67,362 | ||||
| JMCG Jingma Motors Co., Ltd. | 19,289 | 95 | 4,614,745 | 35,995 | ||||
| 4,979,132 | 14,938 | 13,250,896 | 103,357 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 8 | Related parties and related party transactions (Cont’d) | |||
| (6) | Receivables from and payables to related parties (Cont’d) | |||
| 31 December 2024 | 31 December 2023 | |||
| Advances to suppliers | ||||
| Nanchang Baojiang Steel Processing Distribution Co., Ltd. | 82,972,689 | 144,390,937 | ||
| Financing receivables | |||||
| Jiangxi JMCG Specialty Vehicles Co., Ltd. | 48,401,766 | 43,000,000 | |||
| JMCG Jingma Motors Co., Ltd. | 8,972,230 | 11,000,000 | |||
| Jiangxi ISUZU Engine Co., Ltd. | 5,496,370 | 1,264,651 | |||
| Jiangxi Jiangling Special Purpose Vehicle Co., Ltd. | 2,079,413 | - | |||
| Jiangxi ISUZU Co., Ltd. | 110,000 | 3,950,000 | |||
| 65,059,779 | 59,214,651 | ||||
| Cash at bank | |||||
| JMCF | 1,407,604,416 | 1,092,871,804 | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 8 | Related parties and related party transactions (Cont’d) | ||||||
| (6) | Receivables from and payables to related parties (Cont’d) | ||||||
| 31 December 2024 | 31 December 2023 | ||||||
| Accounts payable | |||||||
| Nanchang Jiangling HuaXiang Auto Components Co., Ltd. | 636,898,853 | 526,325,735 | |||||
| Jiangxi Jiangling Lear Interior System Co., Ltd. | 360,356,137 | 365,099,029 | |||||
| Jiangxi Zhonglian Intelligent Logistics Co., Ltd. | 327,079,328 | 393,207,678 | |||||
| Jiangxi Jiangling Chassis Co., Ltd. | 255,072,881 | 251,320,872 | |||||
| Ford | 250,461,509 | 86,590,606 | |||||
| Magna PT Powertrain (Jiangxi) Co., Ltd. | 213,711,414 | 271,344,575 | |||||
| Nanchang JMCG Liancheng Auto Component Co., Ltd. | 185,528,237 | 202,046,109 | |||||
| Jiangxi Jiangling Special Purpose Vehicle Co., Ltd. | 178,167,668 | 194,714,700 | |||||
| Faurecia Emissions Control Technologies (Nanchang) Co., Ltd. | 66,628,906 | 62,653,105 | |||||
| Nanchang JMCG Shishun Logistics Co., Ltd. | 63,592,060 | 89,401,630 | |||||
| Dibao Transportation Equipment (Nanchang) Co., Ltd | 55,834,503 | 28,378,407 | |||||
| Hanon Systems | 50,706,474 | 28,561,752 | |||||
| Jiangxi Lingyun Automobile Industry Technology Co., Ltd | 48,459,492 | 46,765,963 | |||||
| Nanchang JMCG SMR Huaxiang Mirror Co., Ltd. | 43,878,807 | 34,028,487 | |||||
| JMCG | 39,486,926 | 1,812,893 | |||||
| Nanchang Yinlun Heat-exchanger Co., Ltd. | 37,417,773 | 33,494,753 | |||||
| Nanchang Unistar Electric & Electronics Co., Ltd. | 30,195,971 | 64,278,792 | |||||
| Jiangxi Lingge Non-ferrous Metal Die-casting Co., Ltd. | 28,707,639 | 33,447,909 | |||||
| Jiangxi JMCG Specialty Vehicles Co., Ltd. | 26,610,602 | 22,470,866 | |||||
| Changan Ford Automobile Co., Ltd. | 23,802,841 | 5,740,862 | |||||
| Jiangxi Jiangling Group Special Vehicle Co., Ltd. | 19,674,440 | 10,453,228 | |||||
| Jiangxi Lingrui Recycling Resources Development Corporation | 11,463,008 | 19,443,919 | |||||
| Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. | 11,243,955 | - | |||||
| Nanchang Lianda Machinery Co., Ltd. | 10,731,546 | 13,769,421 | |||||
| Jiangxi JMCG Boya brake system Co., Ltd. | 9,558,647 | 8,114,273 | |||||
| Jiangxi Mingfang Auto Parts Industry Co., Ltd. | 8,944,064 | 3,734,394 | |||||
| Jiangxi JMCG Shangrao Industrial Co.,Ltd. | 7,115,719 | 3,108,061 | |||||
| Ford Motor Co. Thailand Ltd. | 6,940,038 | 2,269,745 | |||||
| Jiangling Aowei Automobile Spare Part Co., Ltd. | 6,042,853 | 6,868,703 | |||||
| Jiangxi Jiangling Group Fuxin Auto Parts Co., Ltd. | 3,726,062 | 1,485,717 | |||||
| Nanchang JMCG Xinchen Auto Component Co., Ltd. | 2,979,179 | 3,571,782 | |||||
| Jiangling Automobile Group (Nanchang) Fushan Energy Co., Ltd. | 2,922,507 | 2,102,733 | |||||
| Jiangxi ISUZU Engine Co., Ltd. | 2,758,942 | 77,822 | |||||
| JMCG Jingma Motors Co., Ltd. | 2,606,028 | 887,114 | |||||
| Nanchang Jiangling Group Frame Co., Ltd | 1,091,724 | - | |||||
| Jiangling Motor Holdings Co., Ltd. | - | 6,295,798 | |||||
| 3,030,396,733 | 2,823,867,433 | ||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 8 | Related parties and related party transactions (Cont’d) | ||||
| (6) | Receivables from and payables to related parties (Cont’d) | ||||
| 31 December 2024 | 31 December 2023 | ||||
| Other payables | |||||
| Ford Motor (China) Co., Ltd. | 144,907,458 | 16,138,211 | |||
| Ford | 69,903,294 | 91,949,142 | |||
| Ford Motor Research & Engineering (Nanjing) Co., Ltd. | 61,846,021 | 33,884,078 | |||
| Ford Global Technologies, LLC | 57,533,353 | 66,643,015 | |||
| Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. | 51,837,372 | 44,553,591 | |||
| Nanchang Jiangling HuaXiang Auto Components Co., Ltd. | 35,565,451 | 23,662,480 | |||
| Jiangxi Jiangling Special Purpose Vehicle Co., Ltd. | 27,838,079 | 10,086,404 | |||
| Nanchang JMCG Shishun Logistics Co., Ltd. | 26,831,215 | 10,400,985 | |||
| JMCG Jiangxi Engineering Construction Co., Ltd. | 25,905,249 | 64,113,619 | |||
| JMCG Property Management Co. | 8,466,756 | 6,473,088 | |||
| Jiangxi JMCG Specialty Vehicles Sales Corporation, Ltd. | 8,431,243 | 4,420,456 | |||
| JMCG | 7,636,166 | 2,445,557 | |||
| Jiangxi JMCG Specialty Vehicles Co., Ltd. | 5,772,611 | 5,072,940 | |||
| Jiangxi Zhonglian Intelligent Logistics Co., Ltd. | 5,703,062 | 2,724,194 | |||
| Jiangxi JMCG Industry Co., Ltd. | 3,000,344 | 3,100,412 | |||
| Guizhou Wanfu Vehicle Sales & Service Co., Ltd. | 2,937,977 | 1,696,615 | |||
| Chongqing Changan | 2,574,845 | 2,394,350 | |||
| Nanchang JMCG Liancheng Auto Component Co., Ltd. | 1,908,156 | 8,149,662 | |||
| Jiangxi Jiangling Chassis Co., Ltd. | 1,681,716 | 708,124 | |||
| Jiangxi Jiangling Lear Interior System Co., Ltd. | 1,518,633 | 55,243 | |||
| Magna PT Powertrain (Jiangxi) Co., Ltd. | 1,488,027 | 982,719 | |||
| Hanon Systems | 765,000 | 1,283,100 | |||
| Jiangxi Jiangling Group Special Vehicle Co., Ltd. | 653,129 | 2,565,523 | |||
| Ford Otomotiv Sanayi A.S. | 622,310 | 1,425,533 | |||
| Changan Ford Automobile Co., Ltd. | 206,904 | 1,010,529 | |||
| 555,534,371 | 405,939,570 | ||||
| Contract liabilities | |||||
| Ford Electric Mach Technology (Nanjing) Co., Ltd | 62,310,452 | - | |||
| Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. | 3,930,000 | - | |||
| Nanchang Hengou Industry Co., Ltd. | 1,860,835 | 197,651 | |||
| Jiangxi Jiangling Special Purpose Vehicle Co., Ltd. | 1,506,350 | - | |||
| Jiangxi Jiangling Group Special Vehicle Co., Ltd. | 1,436,028 | 3,028 | |||
| Guizhou Wanjia Automobile Sales and Service Co. LTD | 1,318,467 | 445,557 | |||
| Guizhou Wanfu Vehicle Sales & Service Co., Ltd. | 426,486 | 6,142,607 | |||
| Chengdu Wanxing Vehicle Sales & Service Co., Ltd. | 243,894 | 1,350,217 | |||
| Chongqing Anbo Vehicle Sales Co., Ltd. | 20,552 | 1,098,689 | |||
| Ford Motor Research & Engineering (Nanjing) Co., Ltd. | - | 23,208,214 | |||
| 73,053,064 | 32,445,963 | ||||
| Lease liabilities | |||||
| Jiangxi Jiangling Motors Imp. & Exp. Co., Ltd. | 30,593,850 | 1,390,961 | |||
| JMCG | 5,862,186 | 17,016,922 | |||
| Ford Motor (China) Co., Ltd. | 589,853 | - | |||
| 37,045,889 | 18,407,883 | ||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 8 | Related parties and related party transactions (Cont’d) |
| (7) | Commitments in relation to related parties |
| Capital commitments | |||||||
| 31 December 2024 | 31 December 2023 | ||||||
| JMCG Jiangxi Engineering Construction Co., Ltd. | 6,640,100 | 11,134,108 | |||||
| Guarantee of commitments in relation to related parties is set out in Note 8(5)(c). | |||||||
| 9 | Contingencies | ||||||
| As at 31 December 2024, the Group had no contingencies that needed to be disclosed in the notes to the financial statements. | |||||||
| 10 | Commitments | ||||||
| Capital expenditure commitments | |||||||
| Capital expenditures contracted for by the Group but are not yet necessary to be recognised on the balance sheet as at the balance sheet date are as follows: | |||||||
| 31 December 2024 | 31 December 2023 | ||||||
| Buildings, machinery and equipment | 477,562,000 | 636,424,000 | |||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 11 | Subsequent events |
| (1) | Profit distribution |
| According to the resolution of the meeting of Board of Directors on 27 March 2025, the Board of Directors proposed to distribute cash dividends of RMB 0.712 per share to all shareholders, calculated on the basis of 863,214,000 issued shares, for a total of RMB 614,608,368. | |
| 12 | Financial instrument and risk |
| The Group’s activities expose it to a variety of financial risks, which mainly comprise market risk (primarily including foreign exchange risk and interest rate risk), credit risk and liquidity risk. The above financial risks and the Group’s risk management policies to mitigate the risks are as follows: The Board of Directors is responsible for planning and establishing the Group’s risk management framework, formulating the Group’s risk management policies and related guidelines, and supervising the implementation of risk management measures. The Group has established risk management policies to identify and analyse the risks faced by the Group. These risk management policies specify the risks such as market risk, credit risk and liquidity risk management. The Group regularly evaluates the market environment and changes in the Group’s operating activities to determine whether to update the risk management policies and systems or not. The Group’s risk management is carried out by the Risk Management Committee under policies approved by the Board of Directors. The Risk Management Committee works closely with other business departments of the Group to identify, evaluate and avoid relevant risks. The internal audit department of the Group conducts periodical audit to the controls and procedures for risk management and reports the audit results to the Audit Committee of the Group. |
| (1) | Market risk |
| (a) | Foreign exchange risk |
| The Group’s major operational activities are carried out in the mainland China and a majority of the transactions are denominated in RMB. The Group is exposed to foreign exchange risk arising from the recognised assets and liabilities, and future transactions denominated in foreign currencies, primarily with respect to USD. The Group continuously monitors the amount of assets and liabilities, and transactions denominated in foreign currencies to minimise the foreign exchange risk. As at 31 December 2024, the Group’s borrowings denominated in foreign currencies were USD196,453, equivalent to RMB1,412,180. The Group's other accounts payable denominated in foreign currencies was USD10,881,474, equivalent to RMB78,220,386. The Group signed forward exchange contracts to mitigate the foreign exchange risk(Note 5(3), Note 5(30)). |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 12 | Financial instrument and risk (Cont’d) | |||||||
| (1) | Market risk (Cont’d) | |||||||
| (a) | Foreign exchange risk (Cont’d) | |||||||
| The financial assets and financial liabilities denominated in foreign currencies, which were held by the Group, were expressed in RMB as at 31 December 2024 and 31 December 2023 as follows: | ||||||||
| 31 December 2024 | ||||||||
| USD | EUR | Total | ||||||
| Financial asset denominated in foreign currency - | ||||||||
| Derivative financial assset | 12,612,380 | - | 12,612,380 | |||||
| Financial liabilities denominated in foreign currency - | ||||||||
| Current portion of long-term borrowings | 470,727 | - | 470,727 | |||||
| Long-term borrowings | 941,453 | - | 941,453 | |||||
| Other payables | 78,220,386 | - | 78,220,386 | |||||
| 79,632,566 | - | 79,632,566 | ||||||
| 31 December 2023 | |||||||
| USD | EUR | Total | |||||
| Financial liabilities denominated in foreign currency - | |||||||
| Derivative financial liabilities | 459,306 | - | 459,306 | ||||
| Current portion of long-term borrowings | 463,805 | - | 463,805 | ||||
| Long-term borrowings | 1,391,414 | - | 1,391,414 | ||||
| Other payables | 143,725,731 | 261,617 | 143,987,348 | ||||
| 146,040,256 | 261,617 | 146,301,873 | |||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 12 | Financial instrument and risk (Cont’d) | ||
| (1) | Market risk (Cont’d) | ||
| (a) | Foreign exchange risk (Cont’d) | ||
| As at 31 December 2024, for various types of foreign currency financial assets and foreign currency financial liabilities, if RMB appreciates or depreciates by 10% against the US dollar, and other factors remain unchanged, the Group will increase or decrease its total profit by approximately RMB6,702,019 (31 December 2023: approximately RMB14,630,187) |
| (b) | Interest rate risk |
| The Group’s interest rate risk mainly arises from interest-bearing debts such as short-term borrowings and long-term borrowings. The financial liabilities of floating interest rate expose the Group to cash flow interest rate risk, and the financial liabilities of fixed interest rate expose the Group to fair value interest rate risk. The Group determines the relative proportions of fixed-rate and floating-rate contracts based on the prevailing market environment. As at 31 December 2024, the Group’s short-term borrowings of RMB1,500,000,000 (31 December 2023: RMB1,300,000,000) were fixed-rate borrowings, and long-term borrowings of USD196,453 (31 December 2023: USD261,937) were fixed-rate contracts, therefore there was no significant cash flow interest rate risk. | |
| The Group continuously monitors the interest rate position of the Group. Increases in interest rates will increase the cost of new borrowing, and therefore could have a material adverse effect on the Group’s financial performance. Management makes adjustments timely with reference to the latest market conditions and may enter into interest rate swap agreements to mitigate its exposure to interest rate risk. During 2024 and 2023, the Group did not enter into any interest rate swap agreements. | |
| As at 31 December 2024 and 31 December 2023, there was no significant difference between the fair value and the carrying amount of the Group’s bank borrowings with fixed rates. | |
| (2) | Credit risk |
| The Group’s credit risk mainly arises from cash at bank and on hand, notes receivable, accounts receivable, financing receivables, other receivables, long-term receivables and derivative financial assets at fair value through profit or loss that are not included in the impairment assessment scope. The carrying amount of the Group’s financial assets reflects its maximum credit exposure at the balance sheet date. | |
| The Group expects that there is no significant credit risk associated with cash at bank and on hand since they are deposited at state-owned banks and other large or medium size banks with good reputation and high credit rating. The Group does not expect that there will be significant losses from non-performance by these banks. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 12 | Financial instrument and risk (Cont’d) |
| (2) | Credit risk (Cont’d) |
| The Group has policies to limit the credit exposure on notes receivable, accounts receivable, financing receivables, other receivables and long-term receivables. The Group assesses the credit quality of and sets credit limits on its customers by taking into account their financial position, the availability of guarantee from third parties, their credit history and other factors such as current market conditions. The credit history of the customers is regularly monitored by the Group. In respect of customers with a poor credit history, the Group will use written payment reminders, or shorten or cancel credit periods, to ensure the overall credit risk of the Group is limited to a controllable extent. | |
| As at 31 December 2024, the Group had no significant collateral or other credit enhancements held as a result of the debtor’s mortgage (31 December 2023: Nil). |
| (3) | Liquidity risk |
| Cash flow forecasting is performed by each subsidiary of the Group and aggregated by the Group. The Group monitors rolling forecasts of the Group’s short-term and long-term liquidity requirements to ensure it has sufficient cash, while maintaining sufficient headroom on its undrawn committed borrowing facilities from major financial institutions so that the Group does not breach borrowing limits or covenants on any of its borrowing facilities to meet the short-term and long-term liquidity requirements. |
| As at the balance sheet date, the financial liabilities of the Group were analysed by their maturity date below at their undiscounted contractual cash flows: |
| 31 December 2024 | |||||||||||
| Within 1 year | 1 to 2 years | 2 to 5 years | Over 5 years | Total | |||||||
| Short-term borrowings | 1,500,000,000 | - | - | - | 1,500,000,000 | ||||||
| Accounts payable | 10,061,223,944 | - | - | - | 10,061,223,944 | ||||||
| Other payables | 5,742,026,472 | - | - | - | 5,742,026,472 | ||||||
| Lease liabilities | 90,725,324 | 84,460,529 | 10,891,131 | - | 186,076,984 | ||||||
| Long-term borrowings | 490,144 | 483,082 | 476,023 | - | 1,449,249 | ||||||
| 17,394,465,884 | 84,943,611 | 11,367,154 | - | 17,490,776,649 | |||||||
| 31 December 2023 | |||||||||||
| Within 1 year | 1 to 2 years | 2 to 5 years | Over 5 years | Total | |||||||
| Short-term borrowings | 1,304,453,333 | - | - | - | 1,304,453,333 | ||||||
| Derivative financial liabilities | 459,306 | - | - | - | 459,306 | ||||||
| Accounts payable | 9,476,215,223 | - | - | - | 9,476,215,223 | ||||||
| Other payables | 5,944,976,093 | - | - | - | 5,944,976,093 | ||||||
| Lease liabilities | 87,312,608 | 76,170,689 | 66,393,248 | - | 229,876,545 | ||||||
| Long-term borrowings | 13,361,423 | 482,936 | 945,003 | - | 14,789,362 | ||||||
| 16,826,777,986 | 76,653,625 | 67,338,251 | - | 16,970,769,862 | |||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 12 | Financial instrument and risk (Cont’d) |
| (3) | Liquidity risk (Cont’d) |
| (i) | As at 31 December 2024, the Group did not have lease contracts that had been signed but had not yet been performed. |
| 13 | Fair value estimates |
| The level in which fair value measurement is categorised is determined by the level of the fair value hierarchy of the lowest level input that is significant to the entire fair value measurement: | |
| Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. | |
| Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. | |
| Level 3: Unobservable inputs for the asset or liability. |
| (1) | Assets and liabilities measured at fair value on a recurring basis | |||||||
| As at 31 December 2024, the assets measured at fair value on a recurring basis by the above three levels were analysed below: | ||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||
| Financial assets | ||||||||
| Derivative financial asset- Forward foreign exchange contracts | - | 12,612,380 | - | 12,612,380 | ||||
| Financing receivables - | ||||||||
| Notes receivable | - | 302,065,502 | - | 302,065,502 | ||||
| - | 314,677,882 | - | 314,677,882 | |||||
| As at 31 December 2023, the assets measured at fair value on a recurring basis by the above three levels were analysed below: | ||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||
| Financial assets | ||||||||
| Financial assets held for trading – Structured deposits | - | 200,604,877 | - | 200,604,877 | ||||
| Financing receivables - | ||||||||
| Notes receivable | - | 123,170,062 | - | 123,170,062 | ||||
| - | 323,774,939 | - | 323,774,939 | |||||
| As at 31 December 2023, the liabilities measured at fair value on a recurring basis by the above three levels were analysed below: | ||||||||
| Level 1 | Level 2 | Level 3 | Total | ||
| Financial liabilities | |||||
| Derivative financial assets - Forward foreign exchange contracts | - | 459,306 | - | 459,306 |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 13 | Fair value estimates (Cont’d) |
| (1) | Assets and liabilities measured at fair value on a recurring basis (Cont'd) |
| As at 31 December 2024, the Group had no continuing liabilities at fair value. |
| The Group takes the date on which events causing the transfers between the levels take place as the timing specific for recognising the transfers. There was no transfer between Level 1 and Level 2 in 2024. | |
| The fair value of financial instruments traded in an active market is determined at the quoted market price; and the fair value of those not traded in an active market is determined by the Group using valuation technique. | |
| (2) | Assets measured at fair value on a non-recurring basis |
| As at 31 December 2024 and 31 December 2023, the Group had no assets measured at fair value on a non-recurring basis. | |
| (3) | Assets and liabilities not measured at fair value but for which the fair value is disclosed |
| The Group’s financial assets and liabilities measured at amortised cost mainly comprise notes receivable, accounts receivable, other receivables, long-term receivables, short-term borrowings, payables, lease liabilities and long-term borrowings. | |
| The carrying amount of the Group’s financial assets and liabilities not measured at fair value is a reasonable approximation of their fair value. | |
| 14 | Capital management |
| The Group’s capital management policies aim to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders, and to maintain an optimal capital structure to reduce the cost of capital. | |
In order to maintain or adjust the capital structure, the Group may adjust the amount ofdividends paid to shareholders, refund capital to shareholders, issue new shares or sellassets to reduce debts.
| The Group's total capital is calculated as “shareholders’ equity” as shown in the consolidated balance sheet. The Group is not subject to external mandatory capital requirements, and monitors capital on the basis of equity ratio. | ||||
| As at 31 December 2024 and 31 December 2023, the Group’s equity ratio was as follows: | ||||
| 31 December 2024 | 31 December 2023 | |||
| Total borrowings | 1,501,412,180 | 1,314,705,163 | ||
| Total shareholders’ equity | 10,595,344,521 | 9,984,872,620 | ||
| Equity ratio | 14% | 13% | ||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 15 | Notes to the Company’s financial statements |
| (1) | Accounts receivable | |||
| 31 December 2024 | 31 December 2023 | |||
| Accounts receivable | 5,595,070,789 | 4,674,277,592 | ||
| Less: Provision for bad debts | (74,023,216) | (79,901,432) | ||
| 5,521,047,573 | 4,594,376,160 | |||
| (a) | The aging of accounts receivable was analysed as follows: | |||
| 31 December 2024 | 31 December 2023 | |||
| Within 1 year | 5,415,107,619 | 4,490,861,735 | ||
| Over 1 year | 179,963,170 | 183,415,857 | ||
| 5,595,070,789 | 4,674,277,592 | |||
| As of December 31, 2024, accounts receivable with significant individual amounts and aging exceeding three years was analysed as follows: |
| Balance | Reason and collection risk | |||||
| SZFJ | 74,049,026 | The Company evaluates the receivables from its subsidiary, SZFJ, on an individual basis. Based on the judgment of credit risk, these receivables were not subject to significant credit risk and were not impaired. | ||||
| Company1 | 66,796,993 | Due to the operating difficulties of the defaulting company and several lawsuits involved, the Company considered that the receivables were difficult to collect and had therefore made full provision for bad debts. | ||||
| (b) | As at 31 December 2024, the top five accounts receivable ranked by the balances of the debtors were analysed as follows: | |||||
| Balance | Amount of provision for bad debts | % of total balance | ||||
| The total amount of accounts receivable in the top five | 5,266,834,473 | 72,706,047 | 94.13% | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 15 | Notes to the Company’s financial statements (Cont’d) |
| (1) | Accounts receivable (Cont’d) |
| (c) | Provision for bad debts |
| For accounts receivable, the Company measures the loss provision based on the lifetime ECL regardless of whether there is a significant financing component. |
| The provision for bad debts of accounts receivable was analysed by category as follows: | ||
| 31 December 2024 | ||
| Book balance | Provision for bad debts | |||||
| Amount | % of total balance | Amount | Provision ratio | |||
| Provision for bad debts on the individual basis (i) | 2,294,478,118 | 41% | 66,796,993 | 2.91% | ||
| Provision for bad debts on the grouping basis (ii) | 3,300,592,671 | 59% | 7,226,223 | 0.22% | ||
| 5,595,070,789 | 100% | 74,023,216 | 1.32% | |||
| 31 December 2023 |
| Book balance | Provision for bad debts | |||||
| Amount | % of total balance | Amount | Provision ratio | |||
| Provision for bad debts on the individual basis (i) | 1,722,220,010 | 37% | 72,230,000 | 4.19% | ||
| Provision for bad debts on the grouping basis (ii) | 2,952,057,582 | 63% | 7,671,432 | 0.26% | ||
| 4,674,277,592 | 100% | 79,901,432 | 1.71% | |||
| (i) | Accounts receivable for which the provision for bad debts was provided on the individual basis were analysed follows: |
| 31 December 2024 | |||||||
| Book balance | Provision for bad debts | ||||||
| Amount | Lifetime ECL (%) | Provision for bad debts | |||||
| Receivables from related parties within the Group i) | 2,227,681,125 | - | - | ||||
| Receivables for automobiles ii) | 66,796,993 | 100% | 66,796,993 | ||||
| 2,294,478,118 | 66,796,993 | ||||||
| 31 December 2023 |
| Book balance | Provision for bad debts | ||||||||
| Amount | Lifetime ECL (%) | Provision for bad debts | |||||||
| Receivables from related parties within the Group i) | 1,649,990,010 | - | - | ||||||
| Receivables for automobiles ii) | 72,230,000 | 100% | 72,230,000 | ||||||
| 1,722,220,010 | 72,230,000 | ||||||||
| i) As at 31 December 2024, the Company’s accounts receivable from subsidiary Jiangling Ford (Shanghai), SZFJ, GZFJ and JMCS were RMB1,453,456,415, RMB767,264,410, RMB6,960,300 and Nil (31 December 2023: RMB1,393,390,720, RMB148,630,266, nil and RMB107,969,024). The Company assessed the receivables from subsidiaries individually and based on the judgment of credit risk, the receivables from subsidiaries were not subject to significant credit risk and were not overdue and impaired. | |||||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 15 | Notes to the Company’s financial statements (Cont’d) |
| (1) | Accounts receivable (Cont’d) |
| (c) | Provision for bad debts (Cont’d) |
| (i) | Accounts receivable for which the provision for bad debts was provided on the individual basis were analysed follows (Cont’d): |
| ii) As at 31 December 2024, the Company assessed the expected credit losses of the relevant accounts receivable, which were expected to be unrecoverable, and therefore made a provision for bad debts in full amounting to RMB66,796,993 (31 December 2023: RMB72,230,000), which was included in the reversal of profit or loss of RMB5,433,007 (2023: no impact on profit or loss for the current period). | |
| (ii) | Accounts receivable for which provision for bad debts was made on the grouping basis were analysed as follows: |
| Grouping – Domestic sales of general automobiles: | |||||||||||||
| 31 December 2024 | |||||||||||||
| Book balance | Provision for bad debts | ||||||||||||
| Amount | Lifetime ECL (%) | Amount | |||||||||||
| Not overdue | 136,590,607 | 0.03% | 40,628 | ||||||||||
| Overdue for 1 to 30 days | 840,000 | 0.55% | 4,605 | ||||||||||
| Overdue for 31 to 60 days | - | - | - | ||||||||||
| Overdue for 61 to 90 days | - | - | - | ||||||||||
| Overdue over 90 days | 1,074,500 | 9.00% | 96,705 | ||||||||||
| 138,505,107 | 141,938 | ||||||||||||
| 31 December 2023 | |||||||||||||
| Book balance | Provision for bad debts | ||||||||||||
| Amount | Lifetime ECL (%) | Amount | |||||||||||
| Not overdue | 107,010,139 | 0.14% | 154,326 | ||||||||||
| Overdue for 1 to 30 days | 14,613,810 | 0.29% | 42,323 | ||||||||||
| Overdue for 31 to 60 days | - | - | - | ||||||||||
| Overdue for 61 to 90 days | 2,949,660 | 0.60% | 17,698 | ||||||||||
| Overdue over 90 days | 6,048,500 | 5.64% | 341,368 | ||||||||||
| 130,622,109 | 555,715 | ||||||||||||
Grouping – Export sales of general automobiles:
| 31 December 2024 | |||||||||
| Book balance | Provision for bad debts | ||||||||
| Amount | Lifetime ECL (%) | Amount | |||||||
| Not overdue | 2,933,133,292 | 0.20% | 5,866,267 | ||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 15 | Notes to the Company’s financial statements (Cont’d) | |||||||||||||||
| (1) | Accounts receivable (Cont’d) | |||||||||||||||
| (c) | Provision for bad debts (Cont’d) | |||||||||||||||
| (ii) | Accounts receivable for which provision for bad debts is made on the grouping basis are analysed as follows (Cont’d): | |||||||||||||||
| Grouping – Export sales of general automobiles(Cont’d): | ||||||||||||||||
| 31 December 2023 | ||||||||||||||||
| Book balance | Provision for bad debts | |||||||||||||||
| Amount | Lifetime ECL (%) | Amount | ||||||||||||||
| Not overdue | 2,647,787,903 | 0.20% | 5,295,576 | |||||||||||||
| Grouping - Sales of new energy automobiles: | |||||||
| 31 December 2024 | |||||||
| Book balance | Provision for bad debts | ||||||
| Amount | Lifetime ECL (%) | Amount | |||||
| Overdue over 90 days | 563,760 | 80.00% | 451,008 | ||||
| 31 December 2023 | |||||||
| Book balance | Provision for bad debts | ||||||
| Amount | Lifetime ECL (%) | Amount | |||||
| Overdue over 90 days | 1,563,760 | 80.00% | 1,251,008 | ||||
| Grouping – Automobile parts: |
| 31 December 2024 | |||||||
| Book balance | Provision for bad debts | ||||||
| Amount | Lifetime ECL (%) | Amount | |||||
| Not overdue | 202,384,142 | 0.30% | 607,153 | ||||
| Overdue for 1 to 30 days | 10,256,078 | 0.30% | 30,768 | ||||
| Overdue for 31 to 60 days | 8,788,453 | 0.50% | 43,942 | ||||
| Overdue for 61 to 90 days | 5,976,016 | 0.60% | 35,856 | ||||
| Overdue over 90 days | 985,823 | 5.00% | 49,291 | ||||
| 228,390,512 | 767,010 | ||||||
| 31 December 2023 | |||||||
| Book balance | Provision for bad debts | ||||||
| Amount | Lifetime ECL (%) | Amount | |||||
| Not overdue | 168,672,852 | 0.30% | 506,019 | ||||
| Overdue for 1 to 30 days | 1,575,377 | 0.30% | 4,726 | ||||
| Overdue for 31 to 60 days | 190,620 | 0.50% | 953 | ||||
| Overdue for 61 to 90 days | 563,937 | 0.53% | 3,384 | ||||
| Overdue over 90 days | 1,081,024 | 5.00% | 54,051 | ||||
| 172,083,810 | 569,133 | ||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 15 | Notes to the Company’s financial statements (Cont’d) |
| (1) | Accounts receivable (Cont’d) |
| (c) | Provision for bad debts (Cont’d) |
| (iii) | The provision for bad debts reversed was RMB5,878,216 this year. |
| (d) | There was no provision for bad debts actually written off during the year. |
| (e) | As at 31 December 2024 and 31 December 2023, there were no accounts receivable pledged. |
| (2) | Other receivables |
| 31 December 2024 | 31 December 2023 | |||
| Receivables from Jiangling Ford (Shanghai) | 89,250,000 | - | ||
| Receivables from JMCH | 14,542,410 | 9,679,410 | ||
| Gas and electricity bills | 18,531,901 | 12,769,141 | ||
| Import working capital | 3,900,523 | 7,000,000 | ||
| Receivables from refund of social insurance | 1,297,367 | 23,958,000 | ||
| Others | 17,315,330 | 18,770,714 | ||
| 144,837,531 | 72,177,265 | |||
| Less: Provision for bad debts | (220,324) | (363,359) | ||
| 144,617,207 | 71,813,906 |
| The Company did not have any fund deposited at other parties under the centralised fund management and represented in other receivables. | ||||
| (a) | The aging of other receivables was analysed as follows: | |||
| 31 December 2024 | 31 December 2023 | |||
| Within 1 year | 131,654,349 | 54,408,692 | ||
| Over 1 year | 13,183,182 | 17,768,573 | ||
| 144,837,531 | 72,177,265 | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 15 | Notes to the Company’s financial statements (Cont’d) |
| (2) | Other receivables (Cont’d) |
| (b) | Provision for losses and changes in book balance statements |
| The provision for bad debts of other receivables were analysed by category as follows: | ||||||
| 31 December 2024 | ||||||
| Book balance | Provision for bad debts | |||||
| Amount | % of total balance | Amount | Provision ratio | |||
| Provision for bad debts on the individual basis (i) | 105,089,777 | 73% | - | - | ||
| Provision for bad debts on the grouping basis (ii) | 39,747,754 | 27% | 220,324 | 0.55% | ||
| 144,837,531 | 100% | 220,324 | 0.15% | |||
| 31 December 2023 | ||||||
| Book balance | Provision for bad debts | |||||
| Amount | % of total balance | Amount | Provision ratio | |||
| Provision for bad debts on the individual basis (i) | 33,637,410 | 47% | - | - | ||
| Provision for bad debts on the grouping basis (ii) | 38,539,855 | 53% | 363,359 | 0.94% | ||
| 72,177,265 | 100% | 363,359 | 0.50% | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 15 | Notes to the Company’s financial statements (Cont’d) |
| (2) | Other receivables (Cont’d) |
| (b) | Provision for losses and changes in book balance statements (Cont’d): |
| Stage 1 |
| 12-month ECL (grouping) | 12-month ECL (individual) | Total | |||||||
| Book balance | Provision for bad debts | Book balance | Provision for bad debts | Provision for bad debts | |||||
| 31 December 2023 | 38,539,855 | 363,359 | 33,637,410 | - | 363,359 | ||||
| Increase in the current year | 1,207,899 | - | 71,452,367 | - | - | ||||
| Bad debt provision increased in the current year | - | (143,035) | - | - | (143,035) | ||||
| 31 December 2024 | 39,747,754 | 220,324 | 105,089,777 | - | 220,324 | ||||
| As at 31 December 2024 and 31 December 2023, the Company did not have any other receivables at Stage 2 or Stage 3. Other receivables at Stage 1 were analysed below: | |||||||
| (i) | As at 31 December 2024 and 31 December 2023, the Company’s other receivables with provision for bad debts on the individual basis were analysed below: | ||||||
| 31 December 2024 | |||||||
| Stage 1 | Book balance | 12-month ECL rates | Provision for bad debts | Reason | |||
| Receivables from Jiangling Ford (Shanghai) | 89,250,000 | - | - | i) | |||
| Receivables from JMCH | 14,542,410 | - | - | ii) | |||
| Receivables from refund of social insurance | 1,297,367 | - | - | ||||
| 105,089,777 | - | - | |||||
| 31 December 2023 | |||||||
| Stage 1 | Book balance | 12-month ECL rates | Provision for bad debts | Reason | |||
| Receivables from refund of social insurance | 23,958,000 | - | - | ii) | |||
| Receivables from JMCH | 9,679,410 | - | - | ii) | |||
| 33,637,410 | - | ||||||
| The Company assessed the receivables from refund of social insurance individually and based on the judgment of credit risk, the receivables were not subject to significant credit risk and were not overdue and impaired. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 15 | Notes to the Company’s financial statements (Cont’d) |
| (2) | Other receivables (Cont’d) |
| (b) | Provision for losses and changes in book balance statements (Cont’d): |
| (ii) | As at 31 December 2024 and 31 December 2023, the Company’s other receivables with provision for bad debts on the grouping basis were analysed below: |
| Other receivables with provision on the grouping basis at Stage 1: |
| As at 31 December 2024, the Company’s other receivables with provision for bad debts on the grouping basis were analysed below: |
| Book balance | 12-month ECL rates | Provision for bad debts | Reason | |||||
| Provision on the grouping basis: | ||||||||
| Gas and electricity bills | 18,531,901 | 0.49% | 91,314 | ECL | ||||
| Import working capital | 3,900,523 | 0.49% | 19,219 | ECL | ||||
| Others | 17,315,330 | 0.63% | 109,791 | ECL | ||||
| 39,747,754 | 220,324 |
| As at 31 December 2023, the Company’s other receivables with provision for bad debts on the grouping basis were analysed below: |
| Book balance | 12-month ECL rates | Provision for bad debts | Reason | |||||
| Provision on the grouping basis: | ||||||||
| Gas bills | 12,769,141 | 0.78% | 99,406 | ECL | ||||
| Import working capital | 7,000,000 | 0.78% | 54,494 | ECL | ||||
| Others | 18,770,714 | 1.23% | 209,459 | ECL | ||||
| 38,539,855 | 363,359 |
| (c) | The reversed provision for bad debts in the current year amounted to RMB143,035. |
| (d) | There was no provision for bad debts written off during the year. |
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 15 | Notes to the Company’s financial statements (Cont’d) |
| (2) | Other receivables (Cont’d) |
| (e) | As at 31 December 2023, the top five other receivables ranked by remaining balances were analysed as follows: |
| Nature | Balance | Aging | % of total balance | Provision for bad debts | ||||||
| Company 1 | Receivables from subsidiaries | 89,250,000 | within 1 year | 62% | - | |||||
| Company 2 | Receivables from subsidiaries | 14,542,410 | Over 1 year | 10% | - | |||||
| Company 3 | Gas bills | 11,116,201 | within 1 year | 8% | 54,774 | |||||
| Company 4 | Electricity bills | 7,415,700 | within 1 year | 5% | 36,540 | |||||
| Company 5 | Import working capital | 4,959,843 | within 1 year | 3% | 24,439 | |||||
| 127,284,154 | 88% | 115,753 |
| (3) | Long-term equity investments | |||
| 31 December 2024 | 31 December 2023 | |||
| Subsidiaries (a) | 2,858,943,493 | 2,858,943,493 | ||
| Associates (b) | 214,449,021 | 228,949,338 | ||
| 3,073,392,514 | 3,087,892,831 | |||
| Less: Provision for impairment of long-term equity investments for subsidiaries | (2,301,440,553) | (2,301,440,553) | ||
| Provision for impairment of long-term equity investments for associates | - | - | ||
| (2,301,440,553) | (2,301,440,553) | |||
| 771,951,961 | 786,452,278 | |||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 15 | Notes to the Company’s financial statements (Cont’d) |
| (3) | Long-term equity investments (Cont’d) |
| (a) | Subsidiaries |
| Movements for the current year | |||||||||||||
| 31 December 2023 | Additional investments | 31 December 2024 | Ending balance of provision for impairment | Cash dividends declared this year | 31 December 2024 | ||||||||
| Gross amount | Gross amount | Carrying amount | |||||||||||
| JMCH | 2,686,943,493 | - | 2,686,943,493 | (2,301,440,553) | - | 385,502,940 | |||||||
| JMCS | 50,000,000 | - | 50,000,000 | - | - | 50,000,000 | |||||||
| SZFJ | 10,000,000 | - | 10,000,000 | - | - | 10,000,000 | |||||||
| GZFJ | 10,000,000 | - | 10,000,000 | - | - | 10,000,000 | |||||||
| Jiangling Ford (Shanghai) | 102,000,000 | - | 102,000,000 | - | - | 102,000,000 | |||||||
| 2,858,943,493 | - | 2,858,943,493 | (2,301,440,553) | - | 557,502,940 |
| (b) | Associates |
| Movements for the current year | Impairment provision | |||||||||||||||||||
| 31 December 2023 | Increase in the current year | Share of net profit/(loss) under equity method | Cash dividends declared | Provision for impairment | 31 December 2024 | Shareholding (%) | Voting rights (%) | 31 December 2024 | 31 December 2023 | |||||||||||
| The Power Company | 197,478,595 | - | (7,934,359) | - | - | 189,544,236 | 40% | 40% | - | - | ||||||||||
| Hanon Systems | 31,470,743 | - | (2,429,558) | (4,136,400) | - | 24,904,785 | 19.15% | 33.33% | - | - | ||||||||||
| Total | 228,949,338 | - | (10,363,917) | (4,136,400) | - | 214,449,021 | - | - | ||||||||||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 15 | Notes to the Company’s financial statements (Cont’d) | |||
| (4) | Revenue and cost of sales | |||
| 2024 | 2023 | |||
| Revenue from main operations | 36,161,828,891 | 31,312,349,157 | ||
| Revenue from other operations | 1,775,252,124 | 1,261,348,664 | ||
| 37,937,081,015 | 32,573,697,821 | |||
| 2024 | 2023 | |||
| (Restated) | ||||
| Cost of sales from main operations | 31,639,833,312 | 27,134,648,221 | ||
| Cost of sales from other operations | 826,412,561 | 399,770,964 | ||
| 32,466,245,873 | 27,534,419,185 |
| (a) | Revenue and cost of sales from main operations | |||||
| 2024 | 2023 | |||||
| Revenue from main operations | Cost of sales from main operations | Revenue from main operations | Cost of sales from main operations | |||
| (Restated) | ||||||
| Sales of automobiles | 34,499,542,516 | 30,387,053,997 | 29,654,470,683 | 25,880,865,976 | ||
| Sales of automobile parts | 1,582,877,952 | 1,173,438,528 | 1,647,789,284 | 1,244,446,197 | ||
| Automobile maintenance services and others | 79,408,423 | 79,340,787 | 10,089,190 | 9,336,048 | ||
| 36,161,828,891 | 31,639,833,312 | 31,312,349,157 | 27,134,648,221 | |||
| (b) | Revenue and cost of sales from other operations | ||||||
| 2024 | 2023 | ||||||
| Revenue from other operations | Cost of sales from other operations | Revenue from other operations | Cost of sales from other operations | ||||
| Sales of materials | 704,431,744 | 683,124,675 | 331,212,485 | 297,451,314 | |||
| Others | 1,070,820,380 | 143,287,886 | 930,136,179 | 102,319,650 | |||
| 1,775,252,124 | 826,412,561 | 1,261,348,664 | 399,770,964 | ||||
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 15 | Notes to the Company’s financial statements (Cont’d) | |||||
| (4) | Revenue and cost of sales (Cont’d) | |||||
| (c) | The breakdown of the Company’s revenue by product and service transfer time was as follows: | |||||
| 2024 | ||||||
| Automobiles | Automobile parts | Automobile maintenance services, etc. | Materials and others | Total | ||
| Revenue from main operations | 34,499,542,516 | 1,582,877,952 | 79,408,423 | - | 36,161,828,891 | |
| Including: Recognised at a time point | 34,499,542,516 | 1,582,877,952 | - | - | 36,082,420,468 | |
| Recognised within a certain period | - | - | 79,408,423 | - | 79,408,423 | |
| Revenue from other operations (i) | - | - | - | 1,775,252,124 | 1,775,252,124 | |
| 34,499,542,516 | 1,582,877,952 | 79,408,423 | 1,775,252,124 | 37,937,081,015 | ||
| 2023 | ||||||
| Automobiles | Automobile parts | Automobile maintenance services | Materials and others | Total | ||
| Revenue from main operations | 29,654,470,683 | 1,647,789,284 | 10,089,190 | - | 31,312,349,157 | |
| Including: Recognised at a time point | 29,654,470,683 | 1,647,789,284 | - | - | 31,302,259,967 | |
| Recognised within a certain period | - | - | 10,089,190 | - | 10,089,190 | |
| Revenue from other operations (i) | - | - | - | 1,261,348,664 | 1,261,348,664 | |
| 29,654,470,683 | 1,647,789,284 | 10,089,190 | 1,261,348,664 | 32,573,697,821 | ||
| (i) | The Company’s revenue from other operations includes sales of materials and technical service provided. Revenue from sales of materials is recognised at a certain time point, and revenue from technical service provided is recognised within a certain period. | |||
| As at 31 December 2024, the amount of revenue corresponding to the performance obligations that the Company had contracted but had not commenced or completed was RMB536,871,795, which the Company expected that would be recognised as revenue in 2025. | ||||
| (5) | Investment income | |||
| 2024 | 2023 | |||
| Investment gain from forward exchange settlement | 5,237,734 | 6,757,648 | ||
| Losses on discount of financing receivables eligible for derecognition | (110,250) | (14,484,240) | ||
| Losses on long-term equity investments under equity method | (10,363,917) | (9,591,118) | ||
| (5,236,433) | (17,317,710) | |||
| There is no significant restriction on the remittance of investment income to the Company. | ||||
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024
(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 1 | Statement of non-recurring profit or loss | |||
| 2024 | 2023 | |||
| Government grants recognised in profit or loss for the current period, except those that are closely related to ordinary activities and conform to the national policies and regulations, and are granted in accordance with certain standards and have a continuous impact on the Company’s profit or loss | 184,409,745 | 565,157,410 | ||
| Gains or losses on disposal of non-current assets | 665,549 | (7,453,268) | ||
| Fund occupation fees received from non-financial institutions | 4,766,151 | 11,289,415 | ||
| Gains or losses arising from changes in fair value of financial assets and liabilities held, and gains or losses on disposal of related financial assets and liabilities, except for the effective hedging business related to the normal operation | 22,603,584 | 6,052,713 | ||
| Net amount of other non-operating income and expenses | (2,284,867) | 6,379,649 | ||
| Reversal of impairment charges for receivables that are tested separately for impairment | 5,433,007 | - | ||
| One-off expenses incurred due to discontinuation of related business activities | (2,060,316) | (11,097,866) | ||
| 213,532,853 | 570,328,053 | |||
| Effect of income tax | (33,377,674) | (89,195,274) | ||
| Effect of gains or losses on minority interests (net of tax) | 654,760 | (772,350) | ||
| 180,809,939 | 480,360,429 | |||
| (1) | Basis for preparation of statement of non-recurring profit or loss for 2024 | |||
| In 2023, the CSRC issued the Explanatory Announcement No. 1 on Information Disclosure by Companies Offering Securities to the Public - Non-recurring Profit or Loss (Revised in 2023) (hereinafter “2023 Explanatory Announcement No. 1 ”), which came into effect from the date of promulgation. Under the requirements in the 2023 Explanatory Announcement No. 1, non-recurring profit or loss refers to those arises from transactions and events that are not directly relevant to ordinary activities, or that are relevant to ordinary activities, but are extraordinary and not expected to happen frequently that would have an influence on the financial statements users’ making economic decisions based on the financial performance and profitability of an enterprise. | ||||
SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2024(All amounts in RMB Yuan unless otherwise stated)[English translation for reference only]
| 2 | Return on net assets and earnings per share | ||||||
| Weighted average return on net assets (%) | Earnings per share | ||||||
| Basic earnings per share | Diluted earnings per share | ||||||
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||
| Net profit attributable to ordinary shareholders of the Company | 14.20% | 15.06% | 1.78 | 1.71 | 1.78 | 1.71 | |
| Net profit attributable to ordinary shareholders of the Company, net of non-recurring profit or loss | 12.53% | 10.16% | 1.57 | 1.15 | 1.57 | 1.15 | |