FAW JIEFANG GROUP CO., LTD
Annual Report 2024
March 2025
| Chairman and CPC Secretary of FAW Jiefang Li Sheng | 2024 marks the 75th anniversary of the founding of the People's Republic of China and represents a critical year in the implementation of the 14th Five-Year Plan. FAW Jiefang has thoroughly implemented the guiding principles from the 20th National Congress of the CPC and the Second and Third Plenary Sessions of the 20th Central Committee. Despite facing multiple challenges including weak demand in the commercial truck industry and profound market restructuring, our entire workforce has confronted these difficulties head-on, persevered through hardships, performed under pressure, and continued to forge ahead. We have overcome numerous obstacles, achieved remarkable results, and made breakthrough progress despite adverse market conditions. |
Boldly confronting markets, winning in retail sectors, and reinforcing our industry-leadingposition. With extraordinary determination, exceptional measures, and remarkable effort, weachieved annual vehicle sales of 251.1 thousand units, representing a 3.90% year-on-year increase.Our medium and heavy truck sales reached 214 thousand units with a market share of 26.60%,maintaining our position as China's market leader for nine consecutive years. In overseas markets,despite downturns in key regions, we exported 57 thousand vehicles - a 27.40% year-on-year increase- achieving record-high sales with the industry's fastest growth rate. Our new energy vehicle segmentcapitalized on market opportunities with sales of 15.9 thousand units, growing by 121% and settinga new record with the highest growth rate among premium brands. Our brand value has reached
131.845 billion yuan, ranking first in the industry for 13 consecutive years. We've also earned thehonorary title of "National Responsibility Bearer," showcasing Jiefang's leadership as the flagship ofChina's automotive industry.
Accelerating transformation, driving reform, and building lasting business strength. We
Chairman’s Address
have diligently promoted and implemented the principles from the Third Plenary Session of the 20thCPC Central Committee and conducted thorough Party discipline education. Our efforts earnedrecognition from China FAW as a "Pioneer Party Building Red List Unit" and "Merit CompetitionOutstanding Unit." We have deeply implemented state-owned enterprise reform initiatives, completedthe integration of manufacturing and operations, officially established Jiefang International, andlaunched our "SPRINT2030" internationalization strategy. We've also revitalized our aftermarketservices and UNID operations. Our quality management systems have matured significantly, supplychain capabilities have substantially improved, and incentive mechanisms have been furtheroptimized. In 2024, FAW Jiefang completed a 2-billion-yuan targeted share issuance whilemaintaining an industry-leading market capitalization. We were invited to share our reformachievements with the State-owned Assets Supervision and Administration Commission, with ourpractices highlighted in the Commission's official briefings. Additionally, we received an A-levelevaluation for information disclosure from the Shenzhen Stock Exchange for the fourth consecutiveyear.
Self-reliance and innovation: building core competitive advantages. We have strengthenedour technological research and development with several innovative breakthroughs: completing theQingdao Commercial Vehicle R&D Center on schedule; establishing the Pioneering and LeadingLantu Joint Research Center with Shell China; unveiling the industry-first "Xingyi" hydrogen engineand liquid hydrogen fuel cell tractor; launching production at our 6DV engine super factory;introducing China's first in-cylinder direct injection hydrogen engine for heavy commercial vehicles;achieving new milestones in digital transformation; receiving national awards for our V2X cloudplatform; having our J7 intelligent factory recognized among the first "Excellence-level IntelligentFactories" by the Ministry of Industry and Information Technology; launching over 150 new productsincluding the J7 Pioneering and Leading Version Edition; and achieving breakthroughs in more than100 key technologies.
Reducing logistics costs and carbon emissions: setting new standards in greenmanufacturing. Guided by green development principles, we have firmly implemented our "15333"new energy strategy and accelerated upgrades to our new energy products. We've continuouslyimproved fuel efficiency technologies, reducing average fuel consumption by 1.50 liters per 100kilometers. This has helped users save over 300 million liters of fuel annually, substantially reducing
societal logistics costs and saving users over 50 thousand yuan per vehicle annually. We'veaggressively pursued carbon reduction throughout our operations, implementing 31 megawatts ofphotovoltaic power generation and trading 50.8 million kilowatt-hours of green electricity, reducingcarbon emissions by 50 thousand tons.
Unified efforts and strategic collaboration: achieving mutual benefits with partners. We'veestablished cooperative agreements with Jiuzhou Hengchang Logistics Co., Ltd., Mahle, FarasisEnergy, Dalian New Energy Industry and other partners. Through our global partner conference,we've continued to build momentum around "co-creation, co-progress, co-winning, and co-sharing."We've actively implemented our "double care" culture, effectively executing our "7+100" keyinitiatives, and resolving 173 urgent employee concerns. In 2024, FAW Jiefang was recognized as a"National Advanced Collective in Creating Harmonious Labor Relations.
Fulfilling our responsibilities, leading with compassion, and deepening our commitment topublic service. We have consistently upheld our principle of "Harmonious Development of People,Vehicles, and Society." Through our "Jiefang Cares" public welfare initiative, we have focused ontrucker support programs, educational advancement, environmental protection, and ruralrevitalization. Partnering with 20 suppliers, we launched the "Truck Driver Support Project,"providing assistance to 189 truckers in need and recognizing five exemplary drivers this year. Theseefforts continue to strengthen our reputation as a national brand characterized by compassion andsocial responsibility. In 2024, FAW Jiefang was listed in CCTV's "China ESG Listed CompanyPioneer 100" for the second consecutive year, selected for the State-owned Assets Supervision andAdministration Commission's "Top Ten ESG Cases among Central Enterprise Listed Companies,"included in the "2024 Outstanding ESG Cases of Chinese Enterprises," named "2023 China EmployeePublic Welfare Enterprise of the Year," and our "Jiefang Cares Truck Driver Support Project" wasrecognized as the Public Welfare Project of the Year by the "Warm Journey Truck Driver CareerDevelopment and Security Initiative."
Like gold that emerges only after countless refinements, excellence requires persistent effort. In2025, FAW Jiefang will continue to be guided by Xi Jinping Thought on Socialism with ChineseCharacteristics for a New Era, maintaining our strategic focus and leadership confidence. Workingtogether with unwavering determination, we will achieve new breakthroughs, growth, and milestones.We remain firmly committed to our strategic goal of being "China's First, World-Class" to
technological and product leadership that drives market dominance, to deepening reforms, tocommercial success, and to cultural and talent development. We will dedicate our full efforts towinning the final phase of the 14th Five-Year Plan, advancing powerfully toward our goal ofbecoming a world-class enterprise, and striving to write a new chapter in our century-long journey ofexcellence!
Section I Important Notes, Contents and DefinitionsThe Board of Directors and Board of Supervisors, as well as directors,supervisors and senior executives of the Company, guarantee that the contents ofthe annual report are true, accurate and complete. There is no false record,misleading statement or major omission, and shall bear individual and joint legalresponsibilities.
Li Sheng, the person in charge of the Company, Yu Changxin, the person incharge of accounting, and Fan Chao, the person in charge of the accountingorganization (chief accountant), declare that they guarantee the authenticity,accuracy and completeness of the financial report in this annual report.
All directors were present at the meeting of the Board of Directors at whichthis report was considered.
This annual report includes prospective statements, such as future plans,and does not constitute a substantial commitment of the Company to investors.Investors and relevant persons should maintain sufficient risk awareness of thisand understand the differences between plans, forecasts, and commitments.
The Company has described in detail the possible risks andcountermeasures for its future development in the section of ManagementDiscussion and Analysis. Investors are kindly requested to pay attention torelevant content. China Securities Journal, Securities Times and CNINFO(http://www.cninfo.com.cn) are the information disclosure media selected by theCompany. All information about the Company is subject to being published in
the above-selected media. Investors are kindly requested to pay attention toinvestment risks.
The profit distribution plan approved by the Board of Directors of theCompany is as follows: Based on the 4,922,371,176 shares of the Company, a cashdividend of 0.5 yuan (tax inclusive) will be distributed to all shareholders for every10 shares they hold. Additionally, no bonus shares (tax inclusive) will bedistributed. The Company does not convert reserves into share capital.
Table of Contents
Section I Important Notes, Contents and Definitions ...... 6
Section II Company Profile and Main Financial Indicators ...... 12
Section III Management Discussion and Analysis ...... 22
Section IV Corporate Governance ...... 77
Section V Environmental and Social Responsibilities ...... 132
Section VI Important Matters ...... 146
Section VII Changes in Shares and Shareholders ...... 175
Section VIII Preferred Shares ...... 195
Section IX Bonds ...... 196
Section X Financial Report ...... 197
List of Documents for Future Reference
1. Financial statements signed and sealed by the person in charge of theCompany, the person in charge of accounting and the person in charge of theaccounting organization (chief accountant).
2. The original Auditor's Report sealed by Certified Public Accountants LLP andsealed and signed by CPAs.
3. Originals of all company documents and announcements publicly disclosed onthe website designated by China Securities Regulatory Commission in the reportingperiod.
Interpretation
| Item | Refers to | Definition |
| Company, the Company, FAW Jiefang | Refers to | FAW JIEFANG GROUP CO., LTD |
| Jiefang Limited | Refers to | FAW Jiefang Automotive Co., Ltd. |
| Jiefang Group International | Refers to | FAW Jiefang Group International Automobile Co., Ltd. |
| Tanzania Ltd. | Refers to | Jiefang Motors Tanzania Ltd. |
| FAW, FAW Group | Refers to | China FAW Group Co., Ltd. |
| FAW | Refers to | China FAW Co., Ltd. |
| FAW Car | Refers to | FAW Car Co., Ltd. |
| FAW Bestune | Refers to | FAW Bestune Auto Co., Ltd. |
| Finance company | Refers to | First Automobile Finance Co., Ltd. |
| Harbin Light Company | Refers to | FAW Harbin Light-Automobile Co., Ltd. |
| FAW-HONGTA | Refers to | FAW-HONGTA Yunnan Automobile Co., Ltd. |
| Board of Directors | Refers to | Board of Directors of FAW JIEFANG GROUP CO., LTD. |
| Shareholders' meeting | Refers to | Shareholders' Meeting of FAW JIEFANG GROUP CO., LTD. |
| Board of Supervisors | Refers to | Board of Supervisors of FAW JIEFANG GROUP CO., LTD. |
| SASAC | Refers to | State-owned Assets Supervision and Administration Commission of the State Council |
| Ministry of Finance | Refers to | Ministry of Finance of the People's Republic of China |
| China Securities Regulatory Commission | Refers to | China Securities Regulatory Commission (CSRC) |
| SZSE | Refers to | Shenzhen Stock Exchange |
| China Securities Depository and Clearing | Refers to | Shenzhen Branch, China Securities Depository and Clearing Corporation Limited |
| Corporation Limited (CSDC) | ||
| Company Law | Refers to | Company Law of the People's Republic of China |
| Securities Law | Refers to | Securities Law of the People's Republic of China |
| Articles of Association | Refers to | Articles of Association of FAW JIEFANG GROUP CO., LTD. |
| Reporting Period | Refers to | January 1, 2024-December 31, 2024 |
| CNY, CNY 10 thousand, CNY 100 million | Refers to | CNY, CNY 10 thousand, CNY 100 million |
Section II Company Profile and Main Financial IndicatorsI. Company Information
| Stock abbreviation | FAW Jiefang | Stock code | 000800 |
| Stock exchanges on which shares are listed | Shenzhen Stock Exchange | ||
| Chinese name of the Company | FAW JIEFANG GROUP CO., LTD | ||
| Chinese abbreviation of the Company | FAW Jiefang | ||
| English name of the Company | FAW Jiefang Group Co., Ltd. | ||
| English abbreviation of the Company | FAW Jiefang | ||
| Legal representative of the Company | Li Sheng | ||
| Registered address | No.2259, Dongfeng Street, Changchun Automobile Development Zone, Jilin Province | ||
| Zip code of the registered address | 130011 | ||
| History of changes in the registered address of the Company | In 2020, the Company carried out major asset restructuring, and the registered address was changed from No.4888 Weishan Road, High-tech Industrial Development Zone, Changchun City, Jilin Province to No.2259 Dongfeng Street, Automobile Development Zone, Changchun City, Jilin Province. | ||
| Office address | No.2259, Dongfeng Street, Changchun Automobile Development Zone, Jilin Province | ||
| Postal code of office address of the Company | 130011 | ||
| Company Website | www.fawjiefang.com.cn | ||
| faw0800@fawjiefang.com.cn | |||
II. Contact Person and Contact Information
| Secretary of the Board of Directors | Securities Affairs Representative | |
| Name | Wang Jianxun | Yang Yuxin |
| Address | No.2259, Dongfeng Street, Changchun Automobile Development Zone, Jilin Province | No.2259, Dongfeng Street, Changchun Automobile Development Zone, Jilin Province |
| Tel. | 0431-80918881 0431-80918882 | 0431-80918881 0431-80918882 |
| Fax | 0431-80918883 | 0431-80918883 |
| faw0800@fawjiefang.com.cn | faw0800@fawjiefang.com.cn |
III. Information Disclosure and Keeping Location
| Website of the stock exchange disclosing the annual report of the Company | http://www.szse.cn |
| Name and website of the media disclosing the annual report of the Company | Securities Times, China Securities Journal and CNINFO (http://www.cninfo.com.cn) |
| Keeping the location of the Annual Report of the Company | FAW Capital Operation Department |
IV. Changes in Registration
| Unified Social Credit Code | 91220101244976413E |
| Changes in main business since the Company went public | In 2020, the Company completed major asset restructuring and changed its main business from research, development, production, and sales of passenger cars to research, development, production, and sales of commercial vehicles. |
| Changes in controlling shareholders in the past | 1. In June 2011, FAW, the original controlling shareholder of the Company, carried out major business restructuring and founded China FAW Co., Ltd. as the main sponsor in order to improve the corporate governance structure and establish a modern enterprise system. FAW transferred all its shares from the Company into FAW, and the two parties completed the equity registration and transfer procedures in April 2012. After the equity transfer, the total share capital of the Company did not change and remained at 1,627,500,000 shares. FAW Car Co., Ltd. holds 862,983,689 shares of the Company, accounting for 53.03% of the total shares, and is the controlling shareholder of the Company. The actual controller does not change and is still the SASAC. 2. In March 2020, the China Securities Regulatory Commission approved a major asset restructuring project of the Company. The Company issued 2,982,166,212 shares directly to FAW to pay the price difference for the major asset restructuring. After the issuance, the total share capital of the Company increased to |
4,609,666,212 shares. FAW Car Co., Ltd. holds 3,845,149,901shares of the Company, accounting for 83.41% of the total shares,and is the controlling shareholder of the Company. The Company'sactual controller is still SASAC.
V. Other relevant dataAccounting firm hired by the Company
| Name of Accounting Firm | Grant Thornton Certified Public Accountants (Special General Partnership) |
| Office address of the accounting firm | Scitech Place, No.22 Jianguomenwai Avenue, Chaoyang District, Beijing, China |
| Name of the accountants | Wu Songlin, Yang Dongmin |
Sponsor institution employed by the Company to perform continuous supervision duties in thereporting period?Applicable □Not applicable
| Name of Sponsor Institution | Office Address of Sponsor Institution | Name of Sponsor Representative | Continuous Supervision Period |
| China International Capital Corporation Limited | 27th and 28th Floor, China World Office 2, No.1 Jianguomenwai Avenue, Chaoyang District, Beijing, P.R. China | Chen Yiliang, Luo Wei | October 21, 2024 - December 31, 2025 |
Financial consultant employed by the Company to perform continuous supervision duties in thereporting period
□Applicable ?Not applicable
VI. Main Accounting Data and Financial IndicatorsWhether the Company needs to retroactively adjust or restate the accounting data of previous years?Yes □NoReasons for the retroactive adjustment or restatement: Business combination under common control
| 2024 | 2023 | Increase or decrease compared to that of last year | 2022 | |||
| Before adjustment | After adjustment | After adjustment | Before adjustment | After adjustment | ||
| Operating income (Yuan) | 58,581,106,258.53 | 63,904,532,477.03 | 64,324,640,770.64 | -8.93% | 38,331,747,083.88 | 38,331,747,083.88 |
| Net profit attributable to shareholders of the listed company (Yuan) | 622,427,699.65 | 763,024,957.14 | 806,096,685.30 | -22.78% | 367,745,445.34 | 384,380,109.64 |
| Net profit attributable to shareholders of the listed company after deducting non-recurring profits and losses (Yuan) | -570,328,153.34 | -83,315,836.30 | -83,315,836.30 | -584.54% | -1,714,242,885.11 | -1,714,242,885.11 |
| Net cash flows from operating activities (Yuan) | -5,850,286,307.05 | 4,201,717,721.52 | 4,089,673,393.78 | -243.05% | -5,135,243,969.35 | -4,860,506,373.42 |
| Basic earnings per share (Yuan/share) | 0.1266 | 0.1651 | 0.1805 | -29.86% | 0.0735 | 0.0804 |
| Diluted earnings per share (Yuan/share) | 0.1266 | 0.1651 | 0.1805 | -29.86% | 0.0735 | 0.0804 |
| Weighted average return on equity | 2.45% | 3.16% | 3.44% | Reduced by 0.99% | 1.50% | 1.60% |
| End of 2024 | End of 2023 | Increase or decrease compared with that at the end of last year | End of 2022 | |||
| Before adjustment | After adjustment | After adjustment | Before adjustment | After adjustment | ||
| Total assets (Yuan) | 72,749,219,016.61 | 65,873,387,927.31 | 68,085,842,451.70 | 6.85% | 56,772,860,616.12 | 58,747,700,876.72 |
| Net assets attributable to shareholders of the listed company (Yuan) | 26,317,926,062.66 | 24,486,759,369.40 | 24,801,954,142.49 | 6.11% | 23,719,427,082.48 | 24,211,027,324.01 |
The lower net profit of the Company before or after the deduction of non-recurring profits andlosses in the last three fiscal years is negative, and the audit report of the most recent year showsthat the going-concern ability of the Company is uncertain
□Yes ?No
The lower net profit before or after the deduction of non-recurring gains and losses is negative.?Yes □No
| Item | 2024 | 2023 | Remarks |
| Operating income (Yuan) | 58,581,106,258.53 | 64,324,640,770.64 | Sales revenue of complete vehicles, parts and components, materials, purchased semi-finished products, etc. |
| Deducted amount of operating income (Yuan) | 356,109,842.75 | 431,418,385.07 | Lease income and revenue of subsidiaries from the beginning of the period to the combination date in business combinations under common control |
| Amount after the deduction of operating income (Yuan) | 58,224,996,415.78 | 63,893,222,385.57 | Excluding lease income and revenue of subsidiaries from the beginning of the period to the combination date in business combinations under common control |
VII. Differences in Accounting Data under Domestic and Foreign Accounting Standards
1. Differences in net profits and net assets in the financial report disclosed simultaneouslyaccording to the international accounting standards and Chinese accounting standards
□Applicable ?Not applicable
In the reporting period of the Company, there is no difference in net profits and net assets in thefinancial report disclosed according to international accounting standards and Chinese accounting
standards.
2. Differences in net profits and net assets in the financial report disclosed simultaneouslyaccording to foreign accounting standards and Chinese accounting standards
□Applicable ?Not applicable
In the reporting period of the Company, there is no difference in net profits and net assets in thefinancial report disclosed according to foreign accounting standards and Chinese accountingstandards.VIII. Seasonal Main Financial Indicators
Unit: Yuan
| Q1 | Q2 | Q3 | Q4 | |
| Operating income | 18,980,934,940.55 | 16,621,357,698.91 | 9,533,068,473.71 | 13,445,745,145.36 |
| Net profit attributable to shareholders of the listed company | 169,293,702.32 | 308,958,168.18 | -114,603,071.01 | 258,778,900.16 |
| Net profit attributable to shareholders of the listed company after deducting non-recurring profits and losses | 103,572,008.08 | 180,303,815.87 | -218,358,844.24 | -635,845,133.05 |
| Net cash flows from operating activities | 969,975,500.48 | 3,270,954,555.14 | -6,206,332,605.40 | -3,884,883,757.27 |
Is there any significant difference between the above financial indicators or the sum and thefinancial indicators in the quarterly and semi-annual financial reports disclosed by the Company?
□Yes ?No
IX. Items and Amounts of Non-recurring Profit and Loss?Applicable □Not applicable
Unit: Yuan
| Item | Amount in 2024 | Amount in 2023 | Amount in 2022 | Description |
| Profits or losses on disposal of non-current assets (including the write-off part of the provision for impairment of assets made) | -2,556,987.30 | 192,669,498.68 | 871,031,108.06 | It refers to the net gain on disposal of non-current assets. |
| Government subsidies included in the current profit or loss (except those closely related to the Company's normal operations, conforming to the State policies and regulations and enjoyed in line with the specified standards, and having a continuous impact on the profit or loss of the Company) | 618,258,791.46 | 546,340,041.28 | 1,635,846,930.83 | |
| Reversal of impairment provision for receivables subject to separate impairment test | 65,749,100.00 | 9,205,923.40 | 15,110,580.89 | The reversal of impairment provision for receivables is subject to a separate impairment test. |
| Net current profit | 132,844,483.67 | 65,274,736.52 | 37,296,410.99 | The current net profit |
| and loss of the subsidiary acquired in business combination involving entities under common control from the beginning of the period to the combination date | and loss of the subsidiary were acquired in a business combination involving entities under common control from the beginning of the period to the combination date. | |||
| Trustee fee earned from entrusted management | 864,779.87 | |||
| Non-operating income and expenses other than the above | 76,695,007.35 | 173,374,447.46 | 127,429,456.42 | The net non-operating income and expenses. |
| Other losses and profits conforming to the definition of non-recurring profit and loss | 469,265,324.69 | 100,996,378.33 | Other non-recurring profits and losses. | |
| Less: amount affected by income tax | 130,656,414.24 | 176,245,495.71 | 568,294,525.62 | |
| Amount affected by minority shareholder's equity (after-tax) | 36,843,452.64 | 22,203,008.36 | 20,661,746.69 | |
| Total | 1,192,755,852.99 | 889,412,521.60 | 2,098,622,994.75 | -- |
Specific conditions of other profit and loss items meeting the definition of non-recurring profit andloss:
□Applicable ?Not applicable
There is no specific conditions of profit and loss items meeting the definition of non-recurring profitand loss for the Company.Explanation on defining the non-recurring profit and loss items listed in the Explanatory
Announcement No.1 on Information Disclosure by Companies Issuing Securities Publicly - Non-recurring Profit and Loss as recurring profit and loss items
□Applicable ?Not applicable
The Company does not define the non-recurring profit and loss items listed in the ExplanatoryAnnouncement No.1 on Information Disclosure by Companies Issuing Securities Publicly - Non-recurring Profit and Loss as recurring profit and loss items.
Section III Management Discussion and AnalysisThe Company strictly complies with the information disclosure requirements for listedcompanies and discloses information in accordance with the automotive manufacturing industrydisclosure requirements specified in the "No.3 Guideline of Shenzhen Stock Exchange on Self-Regulatory Supervision of Listed Companies - Industry Information Disclosure."I. Industry of the Company in the Reporting PeriodIn 2024, the macroeconomic environment remained in a recovery period, with annual GDPgrowth reaching 5.0%, meeting the expected target. However, domestic demand remained weak,consumption lacked sufficient support, and investment continued at low levels. While exports showedgrowth, the economy displayed a clear pattern of external strength and internal weakness, operatingat subdued levels with limited market stimulus. Highway freight and construction demand continuedto decline, with the logistics industry downturn further negatively impacting the commercial vehiclemarket. Effects from previously front-loaded demand led to persistent transport capacity surplus,while freight rates remained depressed, further squeezing vehicle owners' profit margins. Overall,market conditions showed no significant improvement.According to statistics from the China Association of Automobile Manufacturers (CAAM), theproduction output and sales volume of commercial vehicles in 2024 were 3.805 million and 3.873million units, representing year-on-year decreases of 5.8% and 3.9%, respectively. Annual demandfor medium and heavy-duty trucks reached 1.03 million units, up by 1.1% year on year. FAW Jiefang'smedium and heavy-duty truck sales reached 214 thousand units, increasing 4.3% year-on-year, whilemarket share rose to 20.9%, a gain of 0.7 percentage points. Despite overall market demand fallingbelow expectations, the Company achieved steady growth in both sales volume and market share.
Monthly Sales Volume of Commercial Vehicles
(10 thousand vehicles)
Monthly commercial vehicle sales and growth rate
Note: Industry data sourced from the China Association of Automobile ManufacturersIn 2024, the introduction of vehicle trade-in policies and subsidies for retiring National III and
JanFebMarAprMayJunJulAugSepOctNovDec
202220232024
-100%
-50%
0%
50%
100%
IV emission standard vehicles stimulated replacement demand. Additionally, continued growth in thenatural gas market, strong export performance, and accelerating new energy adoption all contributedto increased sales in these key market segments. FAW Jiefang's natural gas heavy truck retail salesreached 57 thousand units, growing 11.8% year-on-year, with market share exceeding 30%,maintaining its industry-leading position. New energy vehicle sales reached 15.9 thousand units,achieving exponential growth. Overseas exports totaled 57 thousand units, showing steadyimprovement. Premium products such as the J7 and Yingtu series gained widespread marketrecognition with significant sales growth.In 2024, the government implemented several policies to support commercial vehicle industrydevelopment: March 13: The State Council issued the "Action Plan for Promoting Large-scaleEquipment Renewal and Consumer Goods Trade-in," advocating for accelerated retirement of dieselfreight vehicles meeting National III or lower emission standards. May 31: The Ministry of Transport,along with twelve other departments, issued the "Action Plan for Large-scale Equipment Renewal inTransportation," further specifying the detailed measures for transportation equipment renewalinitiatives, including implementing trade-in programs with subsidies in the commercial vehicle sector;July 31: The Ministry of Transport and Ministry of Finance issued the "Notice on Implementing theScrapping and Renewal of Aging Commercial Freight Vehicles," specifying subsidy rules to supportimplementation. These policies collectively stimulated market demand, establishing a foundation forindustry sales recovery. FAW Jiefang achieved annual sales of 251 thousand units, representing a 3.9%year-on-year increase.Beyond the positive impact of vehicle replacement policies, the gradual implementation of tieredenvironmental management standards also accelerated the industry's transition toward new energyvehicles. The Ministry of Ecology and Environment together with four other departments, issued the"Opinions on Promoting Ultra-low Emissions in the Cement Industry" and "Opinions on PromotingUltra-low Emissions in the Coking Industry." These regulations require that companies in bothindustries maintain a clean transportation ratio of no less than 80%. Enterprises failing to meet thisrequirement must use only new energy vehicles or those meeting National VI emission standards forall automotive transport, which has helped drive sales growth in the new energy commercial vehiclesector. Building on these favorable policies, FAW Jiefang achieved substantial growth in new energyproduct sales, reaching 15.9 thousand vehicles for the year.
II. Main Businesses of the Company in the Reporting Period
The Company is a commercial vehicle manufacturer that produces heavy, medium and lighttrucks, and buses, as well as core components such as engines, transmissions and axles, and has acomplete manufacturing system covering raw materials, core components, key large assemblies andcomplete vehicles. The products of the Company are mainly used in market segments such as traction,cargo carrying, dumping, special purposes, highway passenger transport, bus passenger transport, etc.,and the Company also provides standardized and customized commercial vehicle products. TheCompany is committed to becoming "China's first and world-class" provider of green and intelligenttransportation solutions, focusing on the main production lines, insisting on innovation-driven andreform-driven, and creating a leading trend. The main business, products, and business model of theCompany did not change significantly during the reporting period.As of 2024, FAW Jiefang has strategically established five major vehicle production basesacross China in Changchun, Qingdao, Guanghan, Liuzhou, and Foshan. This carefully designedproduction network creates a "primary-secondary, flexibly complementary" capacity model, reachinga total annual production capacity of 418 thousand vehicles. The annual production capacities of eachbase are: Changchun (153 thousand vehicles), Qingdao (200 thousand vehicles), Guanghan (40thousand vehicles), Liuzhou (20 thousand vehicles), and Foshan (5 thousand vehicles). In recent years,the Company has consistently prioritized technological leadership and business innovation as keystrategic development directions, continually increasing its investments in these areas.Simultaneously, the Company has proactively accelerated the optimization and restructuring of itsproduction capacity, focusing closely on critical development trends such as high-end productdevelopment and new energy transformation, while continuously optimizing resource allocation andimplementing smart manufacturing upgrades. Through these comprehensive initiatives, the Companyhas successfully established multiple industry-leading advanced manufacturing bases, demonstratingnot only exceptional production and manufacturing capabilities but also securing significanttechnological and operational advantages in the commercial vehicle sector. This has established asolid foundation for maintaining the Company's sustained market leadership position.Manufacturing, production and operation of complete vehicle in the reporting period?Applicable □Not applicableProduction and sales of complete vehicles
Unit: Vehicle
| Production | Sales Qty | |||||
| This Reporting Period | Same Period of Last Year | Year-on-year Increase and Decrease | This Reporting Period | Same Period of Last Year | Year-on-year Increase and Decrease | |
| By vehicle type | ||||||
| Medium/Heavy truck | 209,830 | 214,256 | -2.07% | 214,037 | 205,162 | 4.33% |
| Light-duty truck | 38,227 | 35,101 | 8.91% | 36,462 | 35,199 | 3.59% |
| Bus | 614 | 1,283 | -52.14% | 579 | 1,301 | -55.50% |
| Total | 248,671 | 250,640 | -0.79% | 251,078 | 241,662 | 3.90% |
Reasons for year-on-year change of more than 30%?Applicable □Not applicableBus production and sales volumes decreased year-on-year, primarily due to public transit marketconditions, with target transit companies postponing vehicle renewals. The core bus market remainslimited, and significant challenges are faced when developing new markets. To mitigate operationalrisks, while steadily developing our customer base, the Company deliberately declined orders withpotential accounts receivable risks.Construction of parts and components supporting the systemRegarding the parts and components supply system, the Company continues to build "world-class procurement competitiveness" for FAW Jiefang, focusing on market customers and variousindustry needs while continuously improving the resource platform. Currently, the three major coreassemblies - engines, transmissions, and axles - for the company's main vehicle models are primarilyself-produced. Resource allocation for core components has been arranged in medium and heavytrucks, new energy vehicles, light and micro trucks, and overseas markets, expanding the resourcenetwork and fully participating in market competition. Additionally, the Company has strengthenedtiered supplier management, developed cooperation strategies for suppliers at different levels, andenhanced coordination with outstanding domestic and international suppliers. The Company strictlycontrols quality through rigorous evaluation of new suppliers, strengthens performance assessmentand capability reviews for existing suppliers, and effectively monitors supplier processes based onprinciples of leading product technology quality and scientific process management, ensuring thequality reputation of complete vehicles.Production and operation of automobile parts and components in the reporting period
□Applicable ?Not applicable
Automobile finance business performed by the Company
□Applicable ?Not applicable
Business related to new energy vehicles performed by the Company?Applicable □Not applicableProduction and operation of complete new energy vehicles and parts & components
Unit: Yuan
| Product category | Production Capacity | Production | Sales volume | Sales revenue |
| Commercial vehicles | 61 thousand vehicles | 18,860 | 15,907 | 5,016,488,634.52 |
III. Analysis of Core CompetitivenessThe Company adheres to the corporate vision of "being the most proud commercial vehicleenterprise and the most trustworthy commercial vehicle brand", and the mission of "becoming China'sfirst and world-class provider of green and intelligent transportation solutions and building a moreprosperous society", and the brand concept of "being trustworthy, intelligent and courageous, andbenefiting the world"; takes products and services as the main task, customers and employees as thefoundation, innovation and reform as the driving force; focuses on industry trends and customer needs,and improves product competitiveness and service level rapidly.
1. Product research and development: Four major fields, heavy, medium, and light trucks andpassenger vehicles, are covered. The heavy truck sector includes eight major product platforms: J7,J6P, J6V, J6E, Yingtu, JH6, Han V, and JH5; the medium truck sector includes four major productplatforms: J6G, J6L, JK6, and Dragon V; The light truck sector includes four major product platforms:
Lingtu, Tiger 6G, J6F, and Tiger V; The bus sector includes highway coaches, new energy publicbuses, recreational vehicles, etc., with new energy products achieving comprehensive coverage acrossmainstream scenarios in segmented markets. With the "Jiefang Pioneering and Leading" technologybrand as the flagship, and "Jiefang Zhitu," "Jiefang Lantu," and "Jiefang Yitu" as three independentinnovation technology routes, the company targets "world-class" R&D capabilities. The company hasestablished four core competencies in lean design, performance development, prototype verification,and testing validation. Five major technology platforms have been created focusing on low-carbonsolutions, electrification, intelligence, connectivity, and high quality - referred to as the "four
transformations and one high" approach. This forms a comprehensive development chain of styling-design-simulation-prototyping-testing that spans all levels from "complete vehicle-system-assembly-component-material," covering all R&D phases and application scenarios, fully supporting FAWJiefang's technological leadership and product pioneering position. The Company possesses anefficient collaborative R&D team of over 3,000 personnel and is one of the commercial vehicleenterprises mastering world-class complete vehicles and three major powertrain core technologies.The company has obtained ISO9001 and IATF16949 quality system certifications and serves as anational-level independent automotive product R&D and test certification base.
2. Marketing and procurement: Adhering to customer value orientation, the Company hastaken the lead in establishing a comprehensive marketing service system. The three sales companies- Changchun Medium and Heavy-duty Vehicle, Qingdao Medium and Heavy-duty Vehicle and LightTrucks - are supported by a nationwide marketing service network comprising nearly 1,000 dealers,over 1,800 service providers, and more than 200 parts suppliers (parts centers). This network coversover 260 prefecture-level cities, with a 99% coverage rate in cities with more than 1,000 vehiclecapacity, and an average national service radius of 48.5 kilometers, representing an industry-leadinglevel and providing customers with 24-hour all-weather efficient and high-quality services. TheCompany is committed to integrating high-quality global resources to provide a strong guarantee ofthe high reliability of Jiefang trucks. In recent years, the Company has become strategic partners withtop enterprises at home and abroad successively, including Huawei, Knorr-Bremse, ZF, Shell,BOSCH, CATL, VOSS, China Unicom, and CATARC.
3. Production and manufacturing: The Company has the most complete manufacturing systemin China, from raw materials to core components, from key assemblies to complete vehicles, and itsprocessing and manufacturing depth ranks at the top of the industry. The Company operates fivemajor vehicle manufacturing bases in Changchun, Qingdao, Guanghan, Liuzhou, and Foshan, with acurrent planned production capacity of 418 thousand vehicles. The Company maintains three majorpowertrain component manufacturing bases in Changchun, Wuxi, and Dalian, independentlycontrolling the core technologies and production capabilities for engines, transmissions, and axleswithin the smart powertrain domain. The product competitiveness ranks at an advanced global level.Among these facilities, the Wuxi Diesel Engine Factory features three major product series: Aowei,Bowei, and Jinwei, achieving world-class manufacturing standards. The Company has deeplydeveloped four key areas: intelligent vehicles, new energy, V2X, and aftermarket services,
establishing six new business model bases in Suzhou, Nanjing, Tianjin, Shijiazhuang, Foshan, andWuxi.
4. Overseas export: The Company actively responds to the "Belt and Road" initiative,accelerates its presence in overseas markets, and creates new avenues of growth for its business. In2024, the Company comprehensively accelerated its commercial vehicle overseas business expansionby establishing FAW Jiefang Group International Automobile Co., Ltd. and acquiring FAW AfricaInvestment Co., Ltd. These strategic moves expedite the development of overseas industrialcapabilities and enhance both product competitiveness and brand influence in international markets.Jiefang's products are exported to over 80 countries and regions, such as Southeast Asia, the MiddleEast, Latin America, Africa and Eastern Europe, and the Company has more than 100 core dealersand nearly 190 distributors in nearly 40 countries and regions around the world. Export productsinclude models such as J7, J6P, JH6, and Tiger V. Additionally, the Company leverages its systemadvantages based on reality, and, through system collaboration, strives to build an overseas marketingplatform of "talent+ service+ automotive+ finance".
5. New energy: Its product portfolio covers five major lines: tractors, dump trucks, cargo trucks,SPVs and passenger cars. These product lines encompass three major technological routes: EVs,FCVs and hybrid vehicles, achieving full coverage of key segment markets for new energycommercial vehicles, such as steel mills, coal and slag. The goal of product development is to meetmarket demand and alleviate user pain points. It focuses on achieving the "three-low and one-high"core competitiveness, which refers to low cost, low self-weight, low energy consumption and highreliability. Additionally, the Company strives to differentiate its products through the attributes oflong endurance, low-temperature resistance, high intelligence, and high comfort. To achieve thesegoals, the Company undertakes continual iteration and upgrading of its products and technologies. Interms of core technology, the Company has achieved integration across three critical areas: vehiclearchitecture, vehicle control software, and assembly interface. This integration significantly improvesdevelopment efficiency. The Company harnesses technologies such as efficient energy recovery andscenario-based calibration to significantly reduce energy consumption. Moreover, the application ofassembly technology incorporates a dual-wheel drive system that combines independent coreassemblies with external high-quality social resources, enabling complementary advantages. Bycontinuously exploring and applying new products, technologies and processes, the Company aimsto maintain a leading position in both new energy technology and new energy products in the market.
IV. Analysis of Main Business
1. Overview
2024 marks a significant milestone as FAW Jiefang builds upon its 70-year foundation,representing the first year in its determined journey toward becoming a revitalized century-oldnational brand. Throughout the year, despite challenges including sluggish demand in the commercialvehicle industry and profound structural adjustments, the Company decisively implemented variousstrategic initiatives. The entire Jiefang workforce confronted difficulties, overcame obstacles, andpersevered under pressure, effectively advancing all operational tasks and achieving commendablebusiness results. As of December 31, 2024, the Company's total assets reached 72.749 billion yuan,increasing by 6.85% year-on-year, while net assets attributable to shareholders of the listed companytotaled 26.318 billion yuan, rising by 6.11% year-on-year. For January-December 2024, the Companyrecorded operating revenue of 58.581 billion yuan, representing an 8.93% year-on-year decrease. Netprofit attributable to shareholders of the parent company amounted to 622 million yuan, decreasingby 22.78% year-on-year. Vehicle sales totaled 251.1 thousand units, increasing by 3.90% year-on-year, including 214 thousand medium and heavy trucks, a 4.33% year-on-year increase (excludingFAW-HONGTA Yunnan Automobile Co., Ltd. and FAW Harbin Light-Automobile Co., Ltd. figures).New energy vehicle sales reached 15.9 thousand units, surging by 120.8% year-on-year. Overseasexports totaled 57 thousand units, growing by 27.4% year-on-year.
Unit: 100 million yuan
In 2024, the project "Key Technologies and Industrialization of Digital Development forAutomotive Driving Experience," jointly conducted by the Company and the AutomotiveEngineering College of Jilin University, received the first prize in the China Society of Automotive
| 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 |
Equity Attributable
to Owners
Equity Attributable
to Owners
Total Assets
Total AssetsNet Profit Attributable
to Owners
Net Profit Attributable
to Owners
Revenue
Engineers Science and Technology Award. The Company's independently developed project,"Commercial Vehicle V2X Big Data Cloud Platform Construction and Industrial Application", wonthe "Business Value Award" jointly sponsored by the National Data Administration and 14 otherdepartments, making it the only vehicle manufacturer nationwide to be nominated and receive thisaward. The Jiefang JH6 high-powered natural gas truck won the "Most Reputable and Profitable GasHeavy Truck" award, the JH6 560 horsepower natural gas tractor received the "2024 Most ReliableExpress Transport Vehicle" award, and the Aowei 13L engine model won the "2024 Most ReliableFuel-Efficient Heavy-Duty Engine" award. Additionally, the Company has been included in the"China ESG Listed Company Pioneer 100" list for two consecutive years and has received an A-levelevaluation for information disclosure from the Shenzhen Stock Exchange for four consecutive years.The Jiefang brand value has led the commercial vehicle industry for 13 consecutive years, whiletractor sales have maintained the industry's top position for nineteen consecutive years.
In 2024, the Company's priorities are as follows:
(1) Taking the brand as the leader, refreshing the brand core, and creating the leadingbrand strength.
Strengthened brand strategy leadership, improved vehicle product brand architecture, upgradedcustomer service brand, and launched the "Jiefang Yitu" aftermarket brand. Reinforcedcomprehensive brand management, established brand asset protection mechanisms includingcopyright protection, building a solid foundation for brand development. Cultivated a pioneeringbrand image through activities including the 9 million vehicle milestone celebration, J7 Pioneeringand Leading Version Edition launch, and Xingyu Truck delivery events, generating significantattention through multi-channel communication. Made prominent appearances at internationalexhibitions including the Russian Machinery Industry Exhibition, and held a 30th anniversary
celebration in South Africa, continuously enhancing international influence. The "Jiefang" brandvalue reached 131.845 billion yuan, maintaining the industry's top position for 13 consecutive years.
(2) Successfully implemented product leadership strategy with comprehensivecompetitiveness improvements
Traditional vehicles: Successfully launched the Jiefang J7 Pioneering and Leading VersionEdition, introducing five breakthrough technologies that pioneer a new era in efficient logistics. Theheadquarters' medium and heavy-duty division prepared over 50 new products for natural gas/dieseltractors, comprehensively covering various market segments. The cargo division introduced over 30specialized products for different market segments, incorporating more than 20 new technologies,achieving absolute industry leadership. Qingdao medium and heavy-duty division accelerateddevelopment of medium and long-term product portfolio, with JH6 upgraded models achievingindustry-leading fuel efficiency and weight reduction, while the Han V upgrade project reachedproduction readiness. Accelerated powertrain product upgrades, enhancing overall powertraincompetitiveness.
New energy products: Expanded medium and heavy-duty product portfolio, acceleratedproprietary component and model development verification, achieving coverage across ten majormarket segments. Launched over 40 products across tractor, cargo, dump truck, and special-purposeseries. In small trucks, 12 new products were introduced, further enhancing competitiveness. Forbuses, new public transport products, including 8-meter pure electric low-floor buses, were added,meeting Changchun's public transport order requirements. Developed over 10 hybrid fuel-electricmodels. For powertrain components, planned and developed multiple battery products supportingnew energy sales growth.
V2X products: Created high-value services, implemented predictive diagnostics and expandedproactive service functions, covering over 90 service stations nationwide. Enhanced new energy userinterfaces, completing differentiated energy management, digital key, and other functionalcapabilities. Achieved full coverage across conventional, new energy, and intelligent vehicle models,with over-the-air updates for more than 40 thousand vehicles. Conducted preliminary research onV2X communication terminals, effectively positioning vehicle-road-cloud integrated advancedtechnologies.
Intelligent vehicle products: Launched L2-level intelligent vehicle platform for high-speed
logistics scenarios. Thoroughly addressed labor reduction requirements, completing relevant projectplanning and approvals. Completed L3 pilot certification project approval, improving advancedautonomous driving product development processes. For low-speed freight scenarios, completedplanning and project approval for factory logistics tractors, enabling L4-level autonomous driving.
(3) Adhering to innovation and transformation as driving forces, continuouslystrengthening core capabilities
①Innovation drive
Technological innovation: Made breakthroughs in three major areas - traditional vehicles, newenergy, and intelligent connectivity - achieving over 90 core technological advancements. Filed morethan 1,500 patent applications, with invention patents accounting for 82%. The "Automotive DrivingExperience Digitalization Project" won the first prize in the China Society of Automotive Engineers'Science and Technology Progress Awards. Established the "Pioneering and Leading Lantu JointResearch Center" with Shell, pioneering the industry's first "Xingyue" hydrogen engine tractor andliquid hydrogen fuel-electric tractor. Launched five major technical features of the J7 Pioneering andLeading Technology Platform, setting industry standards and deeply integrating innovation with theapplication, injecting new momentum and vitality into the "Jiefang Pioneering and Leading"technology brand.
②Transformation drive
Management transformation: Established a new energy vehicle product line, significantlyreallocating resources toward the new energy sector. Integrated vehicle manufacturing operationsacross five locations, transitioning to a "capability center + operational units" business model.Transformed the marketing system to focus on new energy, incorporating the new energy vehiclesales company into marketing headquarters. Established FAW Jiefang Group InternationalAutomobile Co., Ltd. to achieve end-to-end operations for overseas business. Deployed key personnelacross various levels, building a multi-tiered operational organization that efficiently supportscompany performance improvement.
Personnel system transformation: Optimized and strengthened the management team,reconfigured personnel in the manufacturing sector, and continuously enhanced the talent pool.Transferred 350 personnel to key areas, reduced outsourced staff by 1,300, and recruited over 600professional talents, systematically improving capabilities. Implemented a "two meetings + two
reports" work review mechanism and assessment system, achieving a 100% task completion rate.Optimized incentive and accountability mechanisms, eliminating hierarchical limitations to ensuregreater rewards for higher performance contributions.
(4) Four major strategic initiatives advancing effectively, achieving significant operationalprogressTraditional vehicle market leadership initiative: Firmly maintained traditional vehicle marketposition. Changchun and Qingdao facilities leveraged complementary advantages and productdifferentiation, intensified market efforts, addressed product gaps in high-horsepower models andnatural gas vehicles, accelerated adoption of automated manual transmission (AMT) products,targeted high-potential markets and regions with precise marketing strategies, achievingimprovements in both domestic medium and heavy truck sales volume and market share. In the lightvehicle sector, focused on express logistics, resource transportation and other key markets, capitalizedon regional opportunities, implemented strategies to enhance strengths while addressing weaknesses,and strengthened distribution channels, networks and service capabilities, achieving dualimprovements in sales volume and market share.New energy vehicle growth acceleration initiative: Implemented company-wide marketingefforts, focused on key scenarios, regions, and customers, strengthened market breakthroughcapabilities, and enhanced marketing system effectiveness. Strengthened new energy brandpromotion through the "Energy Efficiency Championship" campaign, highlighted large-capacitybattery products, improved customer engagement, and enhanced Jiefang's reputation for energyefficiency. Developed a comprehensive communication strategy featuring leadership team productpresentations and influencer video competitions, increasing Jiefang's new energy market presence.Throughout the year, new energy vehicle sales reached 15.9 thousand units, increasing by 120.8%year-on-year, achieving doubled growth for two consecutive years.Overseas market expansion initiative: Advanced leadership in key markets, competed foremerging and potential markets, achieved breakthroughs in export partnerships, and accelerated lighttruck market penetration across four major strategic fronts, reaching annual sales of 57 thousand units,a 27.4% year-on-year increase, achieving transformative export growth.
Cost reduction and profitability enhancement initiative: Used annual business objectives asguidance, implemented comprehensive budgeting, conducted "N+X" rolling forecasts, established a
"product line-business unit-functional system" interconnected budget matrix model, and streamlinedbudget coordination processes. Focused on the primary value chain, continuously expanded revenuesources while reducing costs, supporting the company's business development.
(5) Seven key work areas advancing systematically, with continuous improvement incorporate governance effectiveness
Strategic management: Continuously enhanced insight capabilities, producing over 370analytical reports. Advanced the JFSP07 planning cycle, establishing strategic planning unitsorganized across nine industrial sectors and four functional areas for the first time, forming Jiefang's"531" strategic framework. Completed the launch of Jiefang International's "SPRINT2030"globalization strategy, further clarifying Jiefang's development blueprint and pathway.
Quality management: Deepened reliability engineering initiatives, earning positive marketreception and customer satisfaction. Improved quality inspection systems and continuously enhancedprocess capabilities. Accelerated quality assurance capability development and strengthened qualitycontrol measures. Established multi-tiered quality operations organization, completed manufacturingquality operations organizational structure, and further implemented quality accountability systems.
Digital transformation: Following the "1143" transformation framework, focused onimproving efficiency, effectiveness, quality, and customer experience by prioritizing architecturalasset iteration, IT system construction, and data value extraction, accelerating the development ofdigital platform capabilities through strong project management.
Supply chain security: In procurement, continuously optimized competitive sourcingstrategies and implemented comprehensive cost control through nine major cost-reduction initiatives.Strengthened quality control throughout the entire process to build competitive quality advantages.Coordinated resources across multiple locations to ensure supply chain security and stability.Improved procurement resource allocation, onboarded over 120 new suppliers, removed over 100underperforming suppliers, and continuously strengthened the supplier network. In manufacturingand logistics, closely tracked market demand fulfillment, implemented precise production planning,and improved production line utilization rates. Practiced lean manufacturing principles, quicklyadapted to market changes, and implemented production rhythm adjustments across all facilities.Enhanced production cost controls and mobilized company-wide improvement initiatives, reducingcosts by more than 50 million yuan.
Manufacturing technology: Completed new energy production qualification certification forGuanghan and Liuzhou factories. Prioritized over 10 investment projects in new energy and emergingbusiness areas, while systematically advancing medium and heavy engine upgrade projects and otherongoing initiatives. Swiftly completed technology transfer projects including J6V to H-line andJH6/JK6 to Liuzhou factory, achieving localization of over 400 components at Sichuan and Liuzhoufactories, contributing to improved factory profitability and efficiency.Capital operations: Raised 2 billion yuan through private placement, introducing nine investorsincluding the National Manufacturing Industry Transformation and Upgrade Fund, achieving thecompany's first A-share refinancing since its restructuring and listing, and providing financial supportfor transformation, development, and investment. Completed acquisitions of overseas subsidiaries inTanzania, South Africa, and other locations, supporting rapid implementation of international strategyand achieving breakthroughs in global expansion. Divested financial company equity, increasingcompany cash flow by 4.9 billion yuan. Enhanced management of over 10 companies in which theCompany holds equity investments, generating annual investment income of 311 million yuan.Improved information disclosure quality, earning Shenzhen Stock Exchange A-level disclosure ratingfor four consecutive years.
Safety, risk management, and security: In safety and environmental protection, focused on"production safety" and "energy conservation and environmental protection" as dual priorities, fullyimplementing accountability systems, achieving zero production accidents, fires, occupationalillnesses, pollution incidents, and security breaches. In risk management and compliance,continuously strengthened corporate governance, enhanced internal control and compliancemanagement systems, balanced supervision with service, fully integrated "strengthened controls, riskprevention, and compliance promotion" into corporate governance, with zero major risk incidentsthroughout the year. In confidentiality management, reinforced information security responsibilitiesat all levels, developed the "cubic framework" methodology, compiled commercial confidentialitymanagement guidelines, and enhanced security awareness and education, with no confidentialitybreaches occurring.
2. Revenues and costs
(1) Composition of Operating Income
Unit: Yuan
| 2024 | 2023 | Year-on-year Increase and Decrease | |||
| Amount | Proportion in Operating Income | Amount | Proportion in Operating Income | ||
| Total operating income | 58,581,106,258.53 | 100% | 64,324,640,770.64 | 100% | -8.93% |
| By Industries | |||||
| Automobile industry | 58,581,106,258.53 | 100.00% | 64,324,640,770.64 | 100.00% | -8.93% |
| By products | |||||
| Commercial vehicles | 54,019,490,190.05 | 92.21% | 59,103,215,453.22 | 91.88% | -8.60% |
| Spare parts and others | 4,561,616,068.48 | 7.79% | 5,221,425,317.42 | 8.12% | -12.64% |
| By regions | |||||
| Domestic | 56,313,824,960.99 | 96.13% | 62,468,099,421.40 | 97.11% | -9.85% |
| Overseas | 2,267,281,297.54 | 3.87% | 1,856,541,349.24 | 2.89% | 22.12% |
(2) Information about industries, products, regions and sales models accounting for more than10% of the Company's operating income or operating profit?Applicable □Not applicable
Unit: Yuan
| Operating Income | Operating costs | Gross Profit Rate | Increase/Decrease of Operating Income over the Same Period of Last Year | Increase/Decrease of Operating Cost over the Same Period of Last Year | Increase/Decrease of Gross Profit Rate over the Same Period of Last Year | |
| By Industries | ||||||
| Automobile industry | 56,781,606,864.49 | 53,523,342,363.25 | 5.74% | -8.99% | -7.57% | Reduced by 1.45% |
| By products | ||||||
| Commercial | 54,019,490,190.05 | 51,214,832,226.59 | 5.19% | -8.60% | -6.93% | Reduced by 1.70% |
| vehicles | ||||||
| Spare parts and others | 2,762,116,674.44 | 2,308,510,136.66 | 16.42% | -15.91% | -19.69% | Increased by 3.93% |
| By regions | ||||||
| Domestic | 54,514,325,566.95 | 51,507,768,650.57 | 5.52% | -9.94% | -8.49% | Reduced by 1.49% |
| Overseas | 2,267,281,297.54 | 2,015,573,712.68 | 11.10% | 22.12% | 24.66% | Reduced by 1.81% |
(3) Whether the physical sales revenue of the Company is greater than the labor servicerevenue?Yes □No
| Industry Classification | Item | Unit | 2024 | 2023 | Year-on-year Increase and Decrease |
| Automobile industry | Sales Qty | Vehicle | 251,078 | 241,662 | 3.90% |
| Production output | Vehicle | 248,671 | 250,640 | -0.79% | |
| Storage amount | Vehicle | 19,226 | 22,126 | -13.11% |
Reasons for the year-on-year change of relevant data by more than 30%
□Applicable ?Not applicable
(4) Performance of major sales contracts and major procurement contracts signed by theCompany as of the reporting period
□Applicable ?Not applicable
(5) Composition of operating cost
Industry and Product Classification
Unit: Yuan
| Industry Classification | Item | 2024 | 2023 | Year-on-year Increase and Decrease | ||
| Amount | Proportion in Operating Cost | Amount | Proportion in Operating Cost | |||
| Automobile | Material | 48,826,962,758.10 | 88.92% | 53,650,304,272.56 | 90.32% | -8.99% |
| industry | cost | |||||
| Others | 6,081,113,765.33 | 11.08% | 5,751,063,070.93 | 9.68% | 5.74% |
Unit: Yuan
| Product Classification | Item | 2024 | 2023 | Year-on-year Increase and Decrease | ||
| Amount | Proportion in Operating Cost | Amount | Proportion in Operating Cost | |||
| Commercial vehicles | Commercial vehicles | 51,214,832,226.59 | 93.27% | 55,031,133,151.16 | 92.64% | -6.93% |
| Spare parts and others | Spare parts and others | 3,693,244,296.84 | 6.73% | 4,370,234,192.33 | 7.36% | -15.49% |
Note: None
(6) Whether the consolidation scope is changed in the reporting period?Yes □NoOn August 16, 2024, the Company invested in establishing FAW Jiefang Group InternationalAutomobile Co., Ltd. By December 31, 2024, the Company completed the business combination ofJiefang Motors Tanzania Ltd. and FAW (Africa) Investment Co., Ltd. under common control.
(7) Significant changes or adjustments in business, products or services of the Company in thereporting period
□Applicable ?Not applicable
(8) Information about main customers and main suppliers
Information about the main customers of the Company
| Total sales amount of the top five customers (Yuan) | 16,271,900,607.79 |
| Proportion of total sales amount of the top five customers in total annual sales amount | 27.78% |
| Proportion of sales of related parties in total annual sales of the top five customers | 23.17% |
Information about the top five customers of the Company
| S/N | Customer name | Sales (Yuan) | Proportion in Total Annual Sales |
| 1 | China FAW Group Co., Ltd. | 12,501,445,135.06 | 21.34% |
| 2 | Customer 1 | 1,071,050,258.10 | 1.83% |
| 3 | FAW Jiefang Fujie (Tianjin) Technology Industry Co., Ltd. | 1,070,399,702.99 | 1.83% |
| 4 | Customer 2 | 834,076,392.64 | 1.42% |
| 5 | Customer 3 | 794,929,119.00 | 1.36% |
| Total | -- | 16,271,900,607.79 | 27.78% |
Other information about the main customers
□Applicable ?Not applicable
Information about the main suppliers of the Company
| Total purchase amount of the top five suppliers (Yuan) | 12,973,210,730.23 |
| Proportion of total purchase amount of the top five suppliers in total annual purchase amount | 24.62% |
| Proportion of the purchase amount of related parties in the total annual purchase amount of the top five suppliers | 6.78% |
Information about the top five suppliers of the Company
| S/N | Name of Supplier | Purchase Amount (Yuan) | Proportion in Total Annual Purchase Amount |
| 1 | Supplier 1 | 6,348,170,812.79 | 12.05% |
| 2 | Supplier 2 | 2,223,126,027.72 | 4.22% |
| 3 | China FAW Group Co., Ltd. | 2,179,561,798.44 | 4.14% |
| 4 | Fawer Auto Parts Co., Ltd. | 1,393,565,622.28 | 2.64% |
| 5 | Supplier 3 | 828,786,469.00 | 1.57% |
| Total | -- | 12,973,210,730.23 | 24.62% |
Other information about the main suppliers
□Applicable ?Not applicable
3. Cost
Unit: Yuan
| 2024 | 2023 | Year-on-year Increase and Decrease | Description of Major Changes | |
| Sales expenses | 1,273,327,595.92 | 1,103,598,712.10 | 15.38% | |
| Administrative expenses | 1,780,652,477.10 | 1,956,239,032.27 | -8.98% | |
| Financial expenses | -805,971,666.64 | -933,066,859.46 | 13.62% | |
| R&D expenses | 2,409,485,641.76 | 2,982,257,879.16 | -19.21% |
4. R&D investment
?Applicable □Not applicable
| Name of Main R&D Projects | Project purpose | Project progress | Proposed Objectives | Expected Impact on the Company's Future Development |
| J7 series expanded models development project | Follow the "domestic first-class and world-class" enterprise development strategy, and develop domestic high-end benchmark heavy trucks independently to achieve a new level of domestic truck quality. | Verification phase | Maintain the high-end positioning of products, pursue excellent quality, and improve product quality continuously in the efficient long-distance trunk express market, create greater value for users, expand the market capacity of high-end vehicle products year by year, realize double sales volume, and lead the industry development. | Support FAW Jiefang's strategy of developing a "domestic first-class and world-class" enterprise, and contribute hard-core products to the product layout during the 14th Five-Year Plan period. |
| JH6 series expanded models development | In the current situation where JH6 products have been on | Verification phase | Maintain the mid-to-high-end positioning of products in the core markets such as general freight, express | Enhance the competitiveness of FAW Jiefang's medium and heavy vehicle |
| project | the market for eight years, it is urgent to upgrade the JH6 platform to ensure the leading competitiveness of the Jiefang brand. | freight, green transport and urban construction muck, strengthen the advantages of highway vehicles in the mid-to-high-end market and renew the brand image of engineering vehicles by optimizing the complete vehicle reliability, comfort and TCO. | product line and major products, and contribute hard-core products to the product layout in the 14th Five-Year Plan period. | |
| Next-Generation New Energy Light Truck Development Project | Continuously improve the high-end attributes of FAW Jiefang Light Truck and develop a new energy-exclusive platform. | Planning stage | Complete the development of a new energy-exclusive platform in urban logistics, medium and short-distance transportation and other relevant markets, which covers both pure electric and hybrid routes, aiming to create an ultimate driving and riding experience while achieving an industry-leading electricity consumption level. | Lay the foundation for the overall realization of new energy transformation of FAW Jiefang and assist in completing the 14th Five-Year Development Plan. |
| Fuel Cell Product Development Project | Develop fuel cell products, cover all three major technical routes, meet the requirements of demonstration operation subsidies, and support the | Development phase | Cover typical scenarios of the three demonstration city clusters of fuel cells, develop a whole series of products such as fuel-electric traction, fuel-electric dump, special fuel-electric and fuel-electric logistics, and apply for demonstration operation projects together with mainstream fuel-electric | Complete the layout of three major technical routes, reserve the fuel cell products development technology, support the research and development of independent fuel cell products, build a benchmark image for the new energy |
| increase of new energy products. | system partners to realize the batch sales and operation of fuel-electric products. | industry, and support FAW Jiefang to lead the new energy industry continuously. | ||
| Jiefang intelligent driving product development project | Develop aided driving and restricted-region high-level intelligent driving commercial vehicle products based on customer needs, so as to help Jiefang realize the commercialization of the intelligent vehicle industry in a short period. | Development phase | Develop intelligent vehicle series products, realize aided driving in trunk logistics scenarios and high-level intelligent driving in multiple restricted-region scenarios such as ports and plants, and develop full-stack intelligent driving software and hardware core technologies by themselves to create independent core competitiveness. | Through the commercial operation of emerging industries in multiple scenarios, the Company's independent R&D capability and competitiveness in the intelligent driving field are improving continuously. The rapid accumulation of operational experience supports the Company's strategic transformation to become "China's first and world-class" provider of green intelligent transportation solutions. |
| New Energy V2X 2024 Annual Project | Iterative upgrade of the dedicated Lantu app for new energy vehicles, completing the V2X products functionality matrix to meet users' digital | Development phase | Launch of the Jiefang Drive Lantu App 2.0, featuring industry-leading functionality in intelligent driving assistance, remote vehicle control, vehicle purchase and leasing options, charging and battery swap management, and community information services. | Enhancing the company's vehicle product competitiveness and supporting new energy vehicle sales growth initiatives. |
| service needs for vehicle management and maintenance. | ||||
| Intelligent Diagnosis and Repair System Upgrade Project in 2024 | The intelligent diagnosis and repair platform establishes end-to-end digitalization of the complete vehicle maintenance process. This upgrade project focuses on three core values - economy, efficiency, and usability - to enhance onboard diagnostic capabilities and improve service center repair management efficiency. | Development phase | Completed development of 12 primary functions and 29 secondary functions. Achieved 100% coverage for controllers in remote diagnostic capabilities. | The intelligent diagnosis and repair platform focuses on vehicle maintenance processes, delivering end-to-end digitalized integrated service throughout the repair workflow. The platform serves as a data center, algorithm center, capability aggregation platform, and digital solution carrier for fault-related events, effectively enhancing diagnostic design capabilities and improving management efficiency. |
| Network Security Management System Consulting | Address compliance requirements of domestic and | Construction stage | By the end of 2025, the corresponding management system should be established according to national | Ensure that beginning January 1, 2026, all new platform vehicle models submitted for type approval will meet |
| Project | international regulations regarding vehicle information security and software update management systems. | standards while meeting domestic and international certification requirements. | vehicle certification requirements. | |
| Vehicle Infotainment System Standardization Project | Standardize the vehicle infotainment system to reduce redundant adaptation costs and improve product update efficiency. | Planning stage | Develop premium infotainment system platforms targeting high-end retail customers to enhance the vehicle's intelligent experience features. Create a unified family-style human-machine interface (HMI), integrated application software suite, and standardized interfaces that can be extended to mid and entry-level product platforms. | Establish user engagement touchpoints through the infotainment system, support premium vehicle value proposition metrics, reinforce FAW Jiefang's intelligent experience brand image, and improve customer brand loyalty. |
| AI Large Language Model Voice Assistant Development Project | Develop an AI voice assistant for premium infotainment systems, focus on customized scenarios for high-end retail customers, provide proactive | Planning stage | Target a 90% user intent comprehension rate, focus on user satisfaction, and ensure efficient interaction to create an industry-leading product. | Position FAW Jiefang to create an industry benchmark AI voice assistant product, rapidly transforming existing connected products into AI-powered intelligent voice interaction systems. |
| interaction services, and enhance the intelligent user experience and interaction efficiency. | ||||
| Vehicle-Road-Cloud Integration Pilot Project | Respond to national vehicle-road-cloud integration pilot initiatives by actively participating in pilot city implementation plans and developing FAW Jiefang's vehicle-road-cloud integration product portfolio. | Development phase | Complete vehicle-road-cloud integration V2X (Vehicle-to-Everything) terminal verification, demonstrate intelligent cleaning vehicles within factory areas, and deploy operational vehicles in environmental maintenance scenarios. | Enhance FAW Jiefang's intelligent connected product competitiveness and brand influence. |
| Upgraded transmission product development project | Develop transmission products complying with noise regulations and fuel consumption regulations to improve the competitivenes | Development phase | Complete the development of drive axle and AMT products. Improve the comprehensive competitiveness of assembly products to make sure that the comprehensive index is higher than that of main competitive products at home and abroad. | Provide competitive drive axle and AMT transmission products for FAW Jiefang's vehicle platform, improve the competitiveness of vehicle products, and support Jiefang in leading the industry continuously. |
| s of complete vehicles. | ||||
| Research on 55% thermal efficiency power system technology of diesel engine | Break through 55% thermal efficiency technology of diesel engine. | Closed | Break through high compression ratio fast dual-zone combustion system and other technologies to challenge the 55% thermal efficiency of commercial vehicle diesel engines. | Improve the effective thermal efficiency of diesel engines, achieve the goal of producing low carbon emissions, and reserve technologies to comply with the fuel consumption regulations in the next stage. |
| Fuel cell system integration technology development | Break through the integration and control technology of commercial vehicle fuel cell systems. | Closed | Reach the system power of 100 kW. | Build the technical competitiveness of the Company's first-class fuel cell products and fill the technical gap of the independent fuel cell system. |
Information about R&D personnel of the Company
| 2024 | 2023 | Change ratio | |
| Number of R&D personnel (person) | 3,318 | 3,151 | 5.30% |
| Proportion of R&D personnel | 16.74% | 15.75% | Increased by 0.99% |
| Educational background structure of R&D personnel | |||
| Doctor's degree | 48 | 49 | -2.04% |
| Master's degree | 1,075 | 1,027 | 4.67% |
| Bachelor's degree | 2,183 | 2,059 | 6.02% |
| Junior college degree | 12 | 16 | -25.00% |
| Age structure of R&D personnel | |||
| Under 30 years old | 1,316 | 1,171 | 12.38% |
| 30-40 years old | 1,284 | 1,299 | -1.15% |
| 41-50 years old | 524 | 483 | 8.49% |
| 51~60 years old | 194 | 198 | -2.02% |
Information about the R&D investment of the Company
| 2024 | 2023 | Change ratio | |
| Amount of R&D Investment (Yuan) | 2,800,223,762.41 | 3,104,963,079.11 | -9.81% |
| Proportion of R&D Investment in Operation Income | 4.78% | 4.83% | Reduced by 0.05% |
| Capitalization amount of R&D investment (Yuan) | 390,738,120.65 | 122,705,199.95 | 218.44% |
| Proportion of capitalized R&D investment in total R&D investment | 13.95% | 3.95% | 10.00% |
Reasons and influence of major changes in the composition of the R&D personnel
□Applicable ?Not applicable
Reasons for significant changes in the proportion of total R&D investment in operating incomecompared with the previous year
□Applicable ?Not applicable
Reasons for and the rationality of great change in the capitalization rate of R&D investment?Applicable □Not applicablePrimarily due to the addition of new vehicle and powertrain development projects during thecurrent period, as well as the ongoing development costs of R&D projects carried over from theprevious period.
5. Cash flow
Unit: Yuan
| Item | 2024 | 2023 | Year-on-year Increase and Decrease |
| Subtotal of cash inflows from operating activities | 56,111,632,136.74 | 64,574,069,556.14 | -13.11% |
| Subtotal of cash outflows from operating activities | 61,961,918,443.79 | 60,484,396,162.36 | 2.44% |
| Net cash flows from operating activities | -5,850,286,307.05 | 4,089,673,393.78 | -243.05% |
| Subtotal of cash inflows from investment activities | 5,099,293,082.54 | 404,942,904.89 | 1,159.26% |
| Subtotal of cash outflows from investment activities | 4,139,412,784.68 | 2,799,009,918.96 | 47.89% |
| Net cash flows from investment activities | 959,880,297.86 | -2,394,067,014.07 | 140.09% |
| Subtotal of cash inflows from financing activities | 1,999,915,089.75 | 16,400,000.00 | 12,094.60% |
| Subtotal of cash outflows from financing activities | 830,253,558.33 | 28,987,570.03 | 2,764.17% |
| Net cash flows from financing activities | 1,169,661,531.42 | -12,587,570.03 | 9,392.19% |
| Net increase in cash and cash equivalents | -3,717,512,950.18 | 1,679,972,445.98 | -321.28% |
Description of main factors influencing major changes in relevant data on a year-on-year basis?Applicable □Not applicable
(1) "Net cash flow from operating activities" decreased by 243.05% compared to the previous year,primarily due to an increase in trade receivables.
(2) "Total cash inflows from investing activities" increased by 1,159.26% compared to the previousyear, mainly attributable to increased cash recovered from investments.
(3) "Total cash outflows from investing activities" increased by 47.89% compared to the previousyear, primarily due to increased payments for other investment-related activities during the currentperiod.
(4) "Net cash flow from investing activities" increased by 140.09% compared to the previous year,mainly resulting from increased cash recovered from investments.
(5) "Total cash inflows from financing activities" increased by 12,094.60% compared to the previousyear, primarily attributable to raised funds from the issuance of shares during the current period.
(6) "Total cash outflows from financing activities" increased by 2,764.17% compared to the previousyear, mainly due to cash dividend distributions during the current period.
(7) "Net cash flow from financing activities" increased by 9,392.19% compared to the previous year,primarily resulting from raised funds from the issuance of shares during the current period.
(8) "Net increase in cash and cash equivalents" decreased by 321.28% compared to the previous year,mainly attributable to the reduction in net cash from operating activities.Description of reasons for the significant difference between the net cash flows generated from theoperating activities in the reporting period and the net profit of this year?Applicable □Not applicableRefer to Section X - "Financial Report VII", Notes to Items in Consolidated Financial Statementsand Section 60 "Supplementary Information to Cash Flow Statement" for details.V. Analysis of Non-main Business
□Applicable ?Not applicable
VI. Analysis of Assets and Liabilities
1. Major changes in asset composition
Unit: Yuan
| End of 2024 | Early 2024 | Increase/Decrease in Proportion | Description of Major Changes | |||
| Amount | Proportion in Total Assets | Amount | Proportion in Total Assets | |||
| Monetary capital | 19,852,961,021.66 | 27.29% | 23,545,580,404.39 | 34.58% | -7.29% | |
| Accounts receivable | 7,067,296,142.54 | 9.71% | 2,343,108,649.14 | 3.44% | 6.27% | |
| Contract assets | 14,455,542.05 | 0.02% | 17,582,856.82 | 0.03% | -0.01% | |
| Inventories | 10,117,213,109.97 | 13.91% | 10,056,641,462.05 | 14.77% | -0.86% | |
| Investment properties | 52,835,976.31 | 0.07% | 47,049,995.53 | 0.07% | 0.00% | |
| Long-term | 1,176,288,461.09 | 1.62% | 5,469,591,970.26 | 8.03% | -6.41% | |
| equity investments | ||||||
| Fixed assets | 11,198,300,572.20 | 15.39% | 11,480,849,245.90 | 16.86% | -1.47% | |
| Project under construction | 688,181,815.22 | 0.95% | 816,484,299.18 | 1.20% | -0.25% | |
| Right-of-use assets | 104,360,320.57 | 0.14% | 150,436,856.00 | 0.22% | -0.08% | |
| Contract liabilities | 2,430,554,164.50 | 3.34% | 2,320,672,076.22 | 3.41% | -0.07% | |
| Lease liabilities | 27,431,600.64 | 0.04% | 37,973,873.14 | 0.06% | -0.02% |
High proportion of overseas assets
□Applicable ?Not applicable
2. Assets and liabilities measured at fair value
?Applicable □Not applicable
Unit: Yuan
| Item | Beginning balance | Profits and losses from changes in fair value for the current period | Accumulated changes in fair value through equity | Provision for impairment in the current period | Purchase amount in the current period | Sales amount in the current period | Other changes | Closing balance |
| Financial assets | ||||||||
| 1. Investment in other equity instruments | 480,780,000.00 | 59,286,528.00 | 540,066,528.00 | |||||
| Total | 480,780,000.00 | 59,286,528.00 | 540,066,528.00 | |||||
| Financial liabilities | 0.00 | 0.00 | ||||||
Content of other changesWhether the measurement attribution of the Company's main assets within the Reporting Period was significantly changed or not
□Yes ?No
3. Restrictions on asset rights as of the end of the reporting periodFor details, please refer to Note 22"Assets with restricted ownership or use right" in Part VII "Notes to Items in Consolidated FinancialStatements" of Section X - Financial Report.
VII. Investment Analysis
1. Overall situation
?Applicable □Not applicable
| Investment Amount in the Reporting Period (Yuan) | Investment Amount in the Same Period of Previous Year (Yuan) | Variation range |
| 790,649,224.63 | 725,139,697.94 | 9.03% |
2. Major equity investments acquired in the reporting period
?Applicable □Not applicable
Unit: Yuan
| Name of Investee Company | Main business | Investment method | Investment amount | Share proportion | Capital source | Partners | Investment horizon | Product type | Progress as of Balance Sheet Date | Estimated Revenue | Profit and Loss of Investment in the Current Period | Involved in Litigation or not | Date of Disclosure | Disclosure Index |
| FAW (Africa) Investment Co., Ltd. | Vehicle sales | Purchase | 327,948,795.48 | 55.00% | Own Funds | China-Africa Development Fund Co., Ltd. | Long-term | Vehicle sales | Equity transfer finalized | 0.00 | 0.00 | No | December 21, 2024 | http://www.cninfo.com.cn/new/disclosure/stock?stockCode=000800&orgId=gssz0000800&sjstsBond=false#latestAnnouncement |
| Total | -- | -- | 327,948,795.48 | -- | -- | -- | -- | -- | -- | 0.00 | 0.00 | -- | -- | -- |
3. Major non-equity investments in progress in the reporting period
□Applicable ?Not applicable
4. Financial assets investment
(1) Securities investment
□Applicable ?Not applicable
The Company has no securities investment in the reporting period.
(2) Derivatives investment
□Applicable ?Not applicable
The Company has no derivative investment in the reporting period.
5. Use of raised funds
?Applicable □Not applicable
(1) Use of raised funds
?Applicable □Not applicable
Unit: 10 thousand yuan
| Fundraising year | Fundraising method | Securities listing date | Gross of raised funds | Net of raised funds (1) | Gross of raised funds utilized during the current reporting period | Cumulative raised funds utilized (2) | Utilization rate as of the end of the reporting period (3) = (2)/(1) | Gross raised funds repurposed during the reporting period | Cumulative gross of raised funds repurposed | Percentage of the cumulative gross of raised funds repurposed | Total unused gross raised funds | Allocation and intended use of unused raised funds | Amount of raised funds unutilized for over two years |
| 2024 | Private placement of shares | October 21, 2024 | 200,000 | 199,781.34 | 185,561.55 | 185,561.55 | 92.88% | 0 | 0 | 0.00% | 14,376.71 | The funds are held in a dedicated fundraising account, with a segment currently allocated for cash management. | 0 |
| Total | -- | -- | 200,000 | 199,781.34 | 185,561.55 | 185,561.55 | 92.88% | 0 | 0 | 0.00% | 14,376.71 | -- | 0 |
| Description of use of raised funds | |||||||||||||
| As approved by the China Securities Regulatory Commission in its "Reply on Approving FAW Jiefang Group Co., Ltd.'s Private Placement of Shares Registration" (CSRC Permit [2024] No.972) and with consent from the Shenzhen Stock Exchange, the Company issued 298,507,462 ordinary shares (A shares) to specific investors through the Shenzhen Stock Exchange system via the lead underwriter China International Capital Corporation Limited (hereinafter "CICC"), at an issue price of 6.7 yuan per share. The gross raised funds totaled 1,999,999,995.40 yuan, and after deducting issuance expenses of 2,186,599.36 yuan | |||||||||||||
(2) Raised fund allocation to committed projects
□Applicable ?Not applicable
(3) Changes to raised funds-funded projects
□Applicable ?Not applicable
The Company had no changes to raised funds-funded projects during the reporting period.VIII. Sale of Major Assets and Equity
1. Sale of major assets
□Applicable ?Not applicable
The Company did not sell major assets during the reporting period.
2. Sale of major equity
?Applicable □Not applicable
| Counterparty | Saled Equity Interest | Date of Sale | Transaction Price (10 thousand yuan) | Net Profit Contributed by the Equity to the Listed Company from the Beginning of the Current Period to the Date of Sale (10 thousand yuan) | Effect of Sale on the Company | Proportion of Net Profit Contributed by Equity Sales to the Listed Company in the Total Net Profit | Pricing Principle of Equity Sale | Related Party Transaction or Not | Relationship with the Counterparty | Whether All Property Rights of the Equity Involved Have been Transferred | Whether Implemented as Scheduled. If Not, Provide the Reasons and the Measures Taken by the Company | Date of Disclosure | Disclosure Index |
| China FAW Co., Ltd. | 21.8393% Equity of the First Automobile | December 24, 2024 | 492,388.61 | 74,309.15 | The Company remains committed to its core | 71.18% | Asset appraisal pricing | Yes | Parent company of the Company | Yes | Yes | October 29, 2024 | http://www.cninfo.com.cn/new/disclosure/stock?stockCode=000800&orgld=gssz00008 |
| Finance Co., Ltd. | business, which will see ongoing development of its flagship products. | 00&sjstsBond=false#latestAnnouncement |
IX. Analysis of main holding and joint-stock companies?Applicable □Not applicableMajor Subsidiaries and Joint-stock Companies Affecting over 10% Net Profit of the Company
Unit: Yuan
| Company Name | Company Type | Main Business | Registered Capital | Total Assets | Net Assets | Operating Income | Operating Profit | Net Profit |
| FAW Jiefang Automotive Co., Ltd. | Subsidiaries | Development, manufacturing and sales of vehicles and parts | 10,803,012,510.01 | 69,849,115,809.69 | 19,342,373,738.77 | 58,139,826,718.18 | -589,042,231.10 | -155,382,966.44 |
Acquisition and disposal of subsidiaries in the reporting period?Applicable □Not applicable
| Company Name | Methods of acquisition and disposal of subsidiaries in the reporting period | Impact on overall production, operation and performance |
| FAW (Africa) Investment Co., Ltd. | Business merger under common control | Expand avenues for overseas capital operations to boost the growth of export sales to Africa |
| Jiefang Motors Tanzania Ltd. | Business merger under common control | Enhance Tanzania's local export sales and expand market reach in neighboring regions. |
| FAW Jiefang Group International Automobile Co., Ltd. | Establishment by investment | Boost overseas export sales growth |
Description of main holding and joint-stock companies: none
X. Structured Entities Controlled by the Company
□Applicable ?Not applicable
XI. Outlook for Future Development of the Company
1. Competition pattern and development trend of the Company's industryOver the next three years, the commercial vehicle industry will continue to undergo a profoundtransformation.
With the progression of economic restructuring and upgrading, GDP growth is expected togradually decelerate, weakening support for medium and heavy-duty truck market demand, withindustry demand generally maintaining low operational levels. However, consumer spending isprojected to increase under the stimulus of trade-in policies for consumer goods, boosting freightturnover volumes and benefiting highway long-haul transport vehicles. Additionally, the continuedissuance of ultra-long-term special treasury bonds will improve investments in new infrastructureprojects, somewhat stimulating demand for construction transport vehicles.The medium and heavy-duty truck market structure has entered a period of deep realignment.Natural gas vehicles have entered a phase of sustainable development as product offerings continueto diversify and infrastructure gradually improves, with demand remaining robust. With multi-policysupport, new energy products continue to gain momentum, with market scale and penetration ratesexpected to increase further. Export growth will moderate in the future, but overseas markets willcontinue to perform strongly as the global economy and trade recover and acceptance of Chineseproducts increases.In the near term, market competition will primarily revolve around existing market share.Competition among traditional manufacturers remains intense. Emerging companies are entering thenew energy segment, employing innovative technologies and business models to rapidly narrow thegap with established industry leaders. Intensified competition will drive further market consolidation.
2. Development strategy and business plan of the Company
In 2025, the Company will thoroughly implement the spirit of the 20th Party Congress and itsSecond and Third Plenary Sessions, continue to fulfill General Secretary Xi Jinping's importantdirectives during his inspection of FAW, uphold comprehensive Party leadership, and executestrategic and annual priorities. Following our "12149" framework (customer-centric approach,
product and technological leadership as foundations, quality as the cornerstone, commitment towinning four major challenges, and strengthening nine key support areas), the Company will advanceall operational tasks with a pragmatic, hands-on management style. The Company will accelerate thestrategic transformation and pioneer new directions, striving to achieve final-year success in our "14thFive-Year Plan" while progressing toward our goal of becoming a "world-class enterprise andcentury-old national brand"!
(1) Maintain customer-centricity, enhance customer relationship capabilities, andaccelerate marketing transformationFirst, strengthen customer operations. Implement "customer engineering" key projects toestablish an effective domestic customer base exceeding one million. Second, transform and enhancedistribution channels. Revitalize distribution channels, implement end-to-end management, achievedata visualization, and mitigate channel risks; Optimize management strategies, improveempowerment effectiveness, and explore direct logistics capacity and direct sales models.
(2) Support market leadership through product and technological excellence, reinforcingcore competitive advantages and growth momentum
Regarding product leadership: Deeply embrace the "product is king" philosophy, dynamicallyoptimize our product portfolio, capture business opportunities promptly, create strategic advantagesproactively, and develop product leadership where "we offer what competitors don't and excel wherethey compete."
Regarding technological leadership: Strengthen innovation-driven development, acceleratecore technology breakthroughs, focus on technology application, and enhance product advantages.Addressing user needs, we will develop key technologies around three value propositions: fuelefficiency, intelligent user experience, and reliability/durability, building differentiated productcompetitiveness.
(3) Firmly establish quality as our foundation, vigorously implement quality improvementinitiatives and comprehensively rebuild the Jiefang brand's market reputation for excellence
Uphold "quality as our winning strategy," systematically deploy and implement our "Three-YearQuality Enhancement Initiative," and establish major project clusters to address key challenges.
Deeply embed the principle that "quality is our lifeblood," ensuring that quality improvements drivebrand enhancement and sales growth.
(4) Decisively win our four major strategic initiatives, focusing on increasing both volumeand profitability to achieve market leadership and operational excellenceDomestic traditional vehicle leadership initiative. Secure our traditional vehicle marketposition by leveraging the geographical, resource, and product positioning advantages of eachproduction base, precisely targeting market opportunities with focused marketing strategies to ensureannual targets are met.
Overseas market expansion initiative. Accelerate implementation of the "SPRINT 2030"internationalization strategy, enhance Jiefang International's operational capabilities, rapidly narrowthe gap with leading competitors in sales volume and capabilities, and ensure achievement of annualtargets.
New energy growth acceleration initiative. Develop highly adaptable products focusing oncore applications in steel plants, coal mining, and sanitation sectors; Achieve breakthroughs in dumptrucks, specialized vehicles, and sanitation vehicles to complete our product portfolio and drive salesgrowth; Optimize marketing and service strategies, strengthen strategic account developmentcapabilities, and transform traditional channels for new energy products; Continuously innovatethrough vehicle leasing, transportation capacity services and other business models to create industry-leading solutions.
Profitability enhancement initiative. Strengthen comprehensive budget management,implementing interlocking budgets and rolling forecast models for proactive control and riskprevention. Pursue margin improvement, cost reduction, and revenue enhancement by strengtheningproject management and operational quality, improving resource efficiency, and enhancingprofitability.
(5) Execute nine key priority areas to comprehensively strengthen our foundation, systems,and capabilities, providing robust support for the company's high-quality development.
3. Possible risks to the Company's operation
(1) Market competition risk
Currently, the commercial vehicle market features simultaneous competition for domesticmarket share and expansion in overseas markets. Industry leaders have established comprehensivecompetitive frameworks in retail sales, encompassing product pricing strategies, differentiatedmarketing systems, and financing solutions, intensifying competition across multiple dimensions.While domestic policy incentives and development in certain international regions have generatedsome replacement demand, the commercial vehicle market can only maintain a modest recovery inthe short term due to domestic and international political and economic constraints coupled withcyclical industry pressures. The combined effects of policy direction and market pressures areaccelerating industry consolidation and intensifying competition among manufacturers.
(2) Market structure change risk
Market penetration of new energy commercial vehicles continues to increase, with emergingtechnological pathways constantly developing. Diversifying market demands and shifting policydirections require companies to adapt to new market structures. As the new energy commercialvehicle market rapidly expands, competition is intensifying, with traditional commercial vehiclemanufacturers accelerating transformation, emerging companies entering the market, andbusinesses from adjacent industries diversifying into this sector. Simultaneously, consumerexpectations for new energy products are rising, with more stringent requirements regarding brandreputation, performance capabilities, pricing, and service quality. Coupled with national policyinitiatives, competitive pressures are further intensifying, making structural market changesinevitable and resulting in unavoidable market share competition, price wars, and margincompression.
(3) Policy change risk
The commercial vehicle industry is experiencing multifaceted regulatory changes. At thenational level, these include: promoting compliance upgrades, implementing new regulations fortruck body installation management, enforcing stricter quality control and production consistencystandards, and accelerating the elimination of non-compliant manufacturers; Stimulating marketdemand through expanded vehicle trade-in incentives, increasing scrapping subsidies for National IVemission standard and older commercial trucks, and enhancing subsidies for new energy vehicles;Strengthening safety protocols through new national standards for hazardous materials transportvehicle markings, with clear classification labels and maintenance requirements. Local policies are
also undergoing various adjustments, with increasingly significant industry impacts, introducinggreater uncertainty to the commercial vehicle market.Based on the above risks, the Company has prepared the following solutions:
(1) Accurately assess market conditions and adapt flexibly. Conduct thorough research ondomestic and international political and economic conditions, comprehensively analyzing marketdynamics and potential risks. Continuously monitor policy developments and industry trends toenable rapid strategic adjustments. Establish comprehensive market intelligence and environmentalmonitoring systems to ensure timely access to complete information. Address market changes byenhancing brand visibility through comprehensive marketing initiatives, optimizing cost structures,advancing product technology, and leveraging quality products and advanced technologies tocapture growth opportunities.
(2) Strengthen product and service foundations to build core competitive advantages.Closely track emerging technologies in new energy and intelligent systems, identifying marketneeds and developing innovative, competitive products. Thoroughly analyze customer servicerequirements while enhancing service professionalism, efficiency, and customization to deliversuperior customer experiences and improve satisfaction and loyalty. Establish brand excellencethrough technological innovation, forward-thinking concepts, and service enhancements tostrengthen the competitive position, maintain market standing, and avoid destructive price wars anddisorderly competition.
(3) Expand into key markets and capture global opportunities. Actively participate in theglobal economy through systematic international strategic planning to establish a solid foundation forexport diversification. Leverage growing international recognition and leading new energytechnologies to develop customized products tailored to specific regional markets and individualcustomer requirements, enhancing product adaptability across diverse regions. Simultaneouslyexpand international distribution networks, streamline overseas service operations, improve responsetimes and service quality, increase global market share, and demonstrate international capabilities.XII. Reception, Investigation, Communication, Interview and Other Activities in theReporting Period?Applicable □Not applicable
| Reception Time | Reception | Reception Mode | Type of Receptio | Reception Object | Main Content | Index of Basic |
| Location | n Object | s of Discussion and Information Provided | Information of Investigation | |||
| January 24, 2024 | Meeting room of the company | Telephone communication | Organization | Century Securities Proprietary Trading, Changjiang Securities (Shanghai) Asset Management Co., Ltd., Huatai Securities Asset Management (Equity), Jinnian Invest, Beijing Jiufu Investment Management, Zhengyuan Investment, Chaos Investment, China Post Life Insurance, Dacheng Fund Management Co., Ltd., Mingya Funds, Point72, Hel Ved Capital, Goldstate Capital Fund Management, Dongxing Asset Management, CITIC Securities Proprietary Trading, Taikang Pension & Insurance, Huajin Proprietary Trading, Shanghai Stock Exchange Proprietary Trading, Bosc Asset Management, Dongxing Proprietary Trading, Yuanfeng Fund, Sequoia PIPE, Agricultural Bank of China Fund Management, ICBC Wealth Management, Huarong Proprietary Trading, Gaoyi Asset Management, Rosefinchfund, Aspex, Shanghai Trend Investment, Zhonggen Funds, Bosera Asset Management, ICBC-AXA, River Fund, Caitong Fund Management, Zheshang Securities Proprietary Trading, Huafu Fund Management, | Operation and development planning of the Company, no relevant information is provided | http://www.cninfo.com.cn/new/disclosure/stock?stockCode=000800&orgld=gssz0000800&sjstsBond=false#research |
| CITIC Prudential, China Resources Yuanda Fund Management, Guorong Proprietary Trading, Zheshang Asset Management, Neuberger Berman Public Fund, Shanghai Tinnyinvest, Taikang Asset Management, Cathay Life Insurance, SINO PARTNERS FUND, Jiutai Fund Management, High-Flyer, Invesco Great Wall Fund Management, Huashang Fund Management, Bosera Asset Management, Guohua Xingyi Asset Management, Allianz, SHEN ZHEN QIAN HAI HUA SHAN CAPITAL, Dunhe Fund, Zinggofund, China Reform Securities, Origin Asset Management, Vanward Proprietary Trading, Shenzhen Hongchou Investment. | ||||
| January 26, 2024 | Meeting room of the company | Field Research | Organization | ICBC Credit Suisse Asset Management, China Life Asset Management, Qianhai United Asset Management, Gaoyi Asset Management, CICC Asset Management, PICC Pension, Bosera Asset Management, Huachuang Securities. |
| February 01, 2024 | Meeting room of the company | Telephone communication | Organization | TruValue Asset Management, Purekind Fund Management, Bleadfund, Huatai-Pinebridge Fund Management, Everbright Pramerica Fund Management, Industrial Bank Proprietary Trading, China Nature Asset Management, Harvest Fund Management, LONGRISING, Biyun Yinxia Investment, Pinpoint, Zhengyuan |
| Investment Research, Changjiang Securities (Shanghai) Asset Management Co., Ltd., HuaAn Funds, Bosera Asset Management, BlackRock, Shanghai Tourmaline Asset Management, Intewisecapital, Hwabao WP Fund, Penghua Fund, Rosefinchfund, Trivest Advisors, Heyong Invest, Zheshang Asset Management, FRANCHISE CAPITAL, Invesco Great Wall Fund Management. | ||||
| April 02, 2024 | Beijing meeting room | Field Research | Organization | Jt Asset Management Co., Ltd., China Reform Securities Co., Ltd., Shenzhen Commando Capital Management Co., Ltd., Golden Nest Capital Management Co., Ltd., Western Securities Co., Ltd., Zhongke Richland Asset Management Co., Ltd., ICBC Wealth Management, Jilin Province Yandong State-Owned Capital Investment Co., Ltd., Shenzhen Yingda Securities Co., Ltd., Shanghai Longlife Investment Co., Ltd., Topsperity Securities, Southwest Securities Co., Ltd., Huachuang Securities Co., Ltd., Dongxing Securities Corporation Limited, Minsheng Securities Co., Ltd., CITIC Securities, Soochow Securities Co., Ltd., Guosheng Securities Co., Ltd., Haitong Securities Co., Ltd., Cinda Securities Co., Ltd., China International Capital Corporation Limited (CICC), Shanxi Securities Company Limited, GF Securities Co., Ltd., Shanghai Guotai Junan Securities Asset Ma |
| nagement Co., Ltd., China Life Pension Company Limited. | ||||
| April 17, 2024 | Meeting room of the company | Network platform online communication | Others | Investors participating in FAW Jiefang 2023 Annual Performance Presentation |
| April 30, 2024 | Meeting room of the company | Telephone communication | Organization | Sinolink Securities Co., Ltd., Zheshang Securities Asset Management Co., Ltd., Langfang HuaAn Automotive Equipment Co., Ltd., Western Securities Proprietary Trading, China UnionPay, Shanghai Heqing Investment Management Co., Ltd., Shanghai Tinnyinvestment Co., Ltd., Zheshang Securities Co., Ltd., HAWTAI Motor Group Co., Ltd., Shanghai Guotai Junan Securities Asset Management Co., Ltd., Tianfeng Securities Co., Ltd., Grace Chan Wealth Management (Shanghai), Wanjia Asset Management Co., Ltd., White Stream Fund Management Co., Ltd., Shenzhen Hongchou Investment Co., Ltd., China Post & Capital Fund Management Co., Ltd., Minsheng Securities Co., Ltd., Haitong Securities Co., Ltd., Beijing Congluan Investment Management Co., Ltd., Mingshi Partners Fund Management (Zhuhai) Co., Ltd., Changjiang Securities Company Limited, Huachuang Securities Co.,Ltd., Zhongke Richland Asset Management Co., Ltd., Nanjing Guohai Auto Parts Co., Ltd., Southwest Securities Co., Ltd., Shanghai Minhang Financial Investment Development Co., Ltd. |
| May 29, | Meeting | Network | Others | Investors participating in the |
| 2024 | room of the company | platform online communication | Online Collective Performance Presentation of Listed Companies within the Jurisdiction of Jilin | |
| June 25, 2024 | Meeting room of the company | Field Research | Organization | China Securities Co., Ltd., Yinhua Fund Management Co., Ltd., Shibei Investment Management (Beijing) Co., Ltd., Zhejiang Jingan Private Fund Co., Ltd. |
| June 28, 2024 | Meeting room of the company | Field Research | Organization | Guotai Leasing Limited Company, Jilin State-owned Capital Operation Group Co., Ltd., Shandong Guohui Investment Holding Group Co., Ltd., Cinda Securities Co., Ltd., Jilin Yadong State-owned Capital Investment Co., Ltd., Changchun Changxing Fund, China Logistics Group Co., Ltd., China COSCO Shipping Group Co., Ltd., Eastmoney Securities Co., Ltd., Soochow Securities Co., Ltd., Dongxing Securities Corporation Limited, Perseverance Asset Management, Sinolink Securities Co., Ltd., Shanghai Guotai Junan Securities Asset Management Co., Ltd., Huatai Securities Co., Ltd., CCB Trust Co., Ltd., Zhejiang Jingan Private Fund Co., Ltd., Lianchu Securities Co., Ltd., China Galaxy Securities Co., Ltd. Proprietary Trading, CITIC Securities Co., Ltd. |
| September 02, 2024 | Meeting room of the company | Telephone communication | Organization | TruValue Asset Management, HGNH International Asset Management (SG) PTE.LTD, ICBC AXA Life Insurance Co., Ltd., China International Capital Corporation Limited (CICC), China Re, Hongyun Private Equity Fund |
| Dacheng Fund Management Co., Ltd., HOTEON Capital Limited, Shenzhen Zhongtian Fortune Fund Management Co., Ltd. | ||||
| October 29, 2024 | Meeting room of the company | Telephone communication | Organization | China Merchants Fund Management Co., Ltd., The Goldman Sachs Group, Inc., Caitong Securities Co., Ltd., China Great Wall Securities Co., Ltd., China International Capital Corporation Limited (CICC), Shanxi Securities Company Limited, Zhongke Richland Asset Management Co., Ltd., GF Securities Co., Ltd., Jilin Province Private Equity Co., Ltd., Chasing Securities Co., Ltd., Shenzhen Qianhai Luojia Fangyuan Asset Management Co., Ltd., Topsperity Securities, Haitong Securities Co., Ltd., Huaan Securities Co., Ltd., Sealand Securities Co., Ltd., Everbright Securities Company Limited, Soochow Securities Co., Ltd., Sinolink Securities Co., Ltd., Minsheng Securities Co., Ltd., Gfund Management Co., Ltd., CITIC Securities Company Limited, UBS Securities Co., Ltd., Goldstate Capital Fund Management, Jt Asset Management Co., Ltd., Springs (Beijing) Investment Management Co., Ltd., Industrial Securities Co., Ltd., Eastmoney Securities Co., Ltd., Huatai Securities Co., Ltd., Shanghai Chaos Investment, Lianchu Securities Co., Ltd., Wanjia Asset Management Co., Ltd., Southwest Securities Co., Ltd., Knight Investment Management (Shanghai) C |
o., Ltd., INSIGHTSH (SHANGHAI) EQUITY INVESTMENT MANAGEMENT CO., LTD., China Life AMP Asset Management Co., Ltd., JYAH AssetManagement Co., Ltd., HengDe Investment Management Co., Ltd., Huachuang SecuritiesCo.,Ltd., Cigna & CMB AssetManagement Company Limited, Sino Life Asset Management Co., Ltd., China Pacific Insurance (Group) Co., Ltd., Minsheng Securities Co., Ltd., SHENZHEN KWT CO.,LTD., Shanghai Chen Xiang Investment Management Co., Ltd., Shenzhen Qianhai Changle Hui Investment Co., Ltd., National Manufacturing Transformation and Upgrading Fund Co., Ltd., Hunan Wantai Huarui Investment Management Co., Ltd., Taiping Pension Company Limited, Shenzhen Hongchou Investment Co., Ltd., Tianfeng Securities Co., Ltd., Industrial Securities Co., Ltd., Everbright Securities Company Limited, Cinda SecuritiesCo., Ltd., Founder Securities Co., Ltd.
XIII. Implementation Status of Market Capitalization Management System and ValuationEnhancement PlanWhether the Company established a market capitalization management system.?Yes □NoWhether the Company disclosed a valuation enhancement plan.
□Yes ?No
In accordance with Article 8 of the "Regulatory Guidelines for Listed Companies No.10 -Market
Capitalization Management" issued by the China Securities Regulatory Commission, whichstipulates that "Companies included in major indices shall establish a market capitalizationmanagement system..." As a constituent of the CSI 300 Index, the Company has formulated a"Market Capitalization Management System" in accordance with relevant regulations. The maincontents include: General Provisions, Market Capitalization Management Organizations andPersonnel, Principal Methods of Market Capitalization Management, Monitoring and EarlyWarning Mechanisms and Emergency Measures, and Supplementary Provisions. On December 26,2024, the company's 21st meeting of the 10th Board of Directors reviewed and approved the"Proposal on Establishing the 'Market Capitalization Management System'".XIV. Implementation of the "Improvement of Both Quality and Return" Action PlanWhether the Company disclosed the "Improvement of Both Quality and Return" action plan.?Yes □No
The "Improvement of Both Quality and Return" action plan is prepared in order to implementthe guiding ideologies of "activating the capital market and boosting investors' confidence" asproposed at the meeting of the Political Bureau of the Central Committee of the CPC and of"vigorously improving the quality and investment value of listed companies, taking more powerfuland effective measures, and focusing on market stability and confidence stability" as proposed in theexecutive meeting of the State Council, safeguard the interests of all shareholders, enhance theinvestors' confidence and promote the long-term sound and sustainable development of the Company.For details, please refer to the Announcement on the "Improvement of Both Quality and Return"Action Plan published by the Company in the Securities Times, China Securities Journal andCNINFO (http://www.cninfo.com.cn) on March 2, 2024.The company consistently prioritizes high-quality development as its core theme. It is committedto advancing its main business and aspires to establish itself as a leading brand. The company placesa strong emphasis on product leadership, continuously innovating and driving reforms. It activelypursues the mastery of key core technologies, constantly striving to conquer new frontiers. It isaccelerating towards its goal of becoming "China's first and world-class" green and intelligenttransportation solution provider, as well as a century-old national automobile brand. The Companyconstantly consolidates its corporate governance structure and improves its internal control system.During the reporting period, the Company revised several governance documents including the
"Articles of Association," "Independent Director Guidelines," and "Raised Funds ManagementPolicy." The Company promotes the standardized and efficient operation of the "shareholders'meeting, Board of Directors and Board of Supervisors", and gives full play to the role of variousgovernance subjects, thus ensuring scientific and effective decision-making. The Company strictlyabides by laws, regulations and regulatory agency provisions, continuously improves the informationdisclosure quality, highlights the importance and pertinence of information disclosure, fullydemonstrates the intrinsic value of the Company, and provides investors with an objective decision-making basis. In recognition of these efforts, the Company received an "A" rating for informationdisclosure from the Shenzhen Stock Exchange this year. Through listing announcements, brokeragestrategy meetings, investor exchanges, Interaction Easy, telephone, email and other channels, theCompany ensures good communication with investors and builds an efficient and transparentcommunication platform.The Company strictly implements the shareholder dividend return plan and profit distributionpolicy and prepares the profit distribution plan based on its actual situation. For fiscal year 2023, theCompany distributed a cash dividend of 1.50 yuan (tax inclusive) per 10 shares based on a total of4,623,863,714 shares, amounting to 693,579,557.10 yuan (tax inclusive). The remainingundistributed profits were carried forward to the next fiscal year. The Company does not convert itscapital reserves into share capital. The ex-dividend date for this distribution is set for June 24, 2024.For the fiscal year 2024, the proposed distribution plan is to pay a cash dividend of 0.50 yuan (taxinclusive) per 10 shares based on 4,922,371,176 shares, totaling 246,118,558.80 yuan (tax inclusive).The remaining undistributed profits will be carried forward to the next fiscal year. The Company doesnot convert its capital reserves into share capital. For any change to the total share capital of theCompany due to the equity incentive plan before the implementation of the distribution plan, the cashdividend of 0.50 yuan (tax inclusive) will be distributed to all shareholders per 10 shares based on thetotal share capital registered on the date of record when the profit distribution plan is implemented inthe future, and the specific amount will be subject to the actual distribution. The 2024 profitdistribution plan is subject to approval at the upcoming shareholders' meeting.
Section IV Corporate Governance
I. Basic Information about Corporate GovernanceIn 2024, the Company strictly complied with the Company Law, the Securities Law, the Code ofCorporate Governance for Listed Companies, the Rules Governing the Listing of Shares on ShenzhenStock Exchange, and the Self-regulatory Guidelines of Shenzhen Stock Exchange for Listed CompaniesNo.1 - Standardized Operation of Main Board Listed Companies, as well as relevant normativedocuments of the China Securities Regulatory Commission and the Shenzhen Stock Exchange (SZSE),and the Articles of Association. The Company continuously enhanced its corporate governance structure,strengthened its internal control system, improved information disclosure quality, and reinforcedinvestor relations management. The Company has established a governance structure with theShareholders' Meeting as the highest authority, the Board of Directors as the decision-making body, theBoard Committees as decision-support bodies, the Board of Supervisors as the oversight body, and theExecutive Management as the implementation body. Each entity has clearly defined responsibilities andauthorities, fulfills its respective duties, makes scientific decisions, and operates in coordination.During the reporting period, the Company revised and improved its Articles of Association, RaisedFunds Management Policy, Independent Director Guidelines, and Rules of Procedure for the StrategicCommittee of the Board, further enhancing the Company's regulatory compliance and operationalstandards. At present, the actual governance situation of the Company meets the requirements of theChina Securities Regulatory Commission's normative documents for the governance of listed companies.
1. Shareholders and shareholders' meeting
The Company strictly complies with the regulations and requirements of the Rules for Shareholders'Meeting of Listed Companies, the Self-regulatory Guidelines of Shenzhen Stock Exchange for ListedCompanies No.1 - Standardized Operation of Main Board Listed Companies and the Articles ofAssociation, etc., and other relevant regulations to standardize the procedures for convening, conducting,and voting at shareholders' meetings. All meetings incorporate both in-person and online voting optionsto ensure that all shareholders, particularly minority shareholders, enjoy equal status and can fullyexercise their shareholder rights. When reviewing related party transactions at shareholders' meetings,the Company strictly enforces recusal procedures for related shareholders, ensuring that suchtransactions adhere to principles of fairness, justice, and transparency. The Company engages qualified
legal counsel to witness proceedings and issue legal opinions, ensuring the regulatory compliance of allshareholders' meetings.
2. Directors and the Board of Directors
The Company elects directors in strict accordance with the selection procedures stipulated in theCompany Law, the Articles of Association and the Rules of Procedure for the Board of Directors. Thecomposition and qualifications of the Board members comply with relevant laws and regulations. Duringthe reporting period, the Board of Directors convened and held meetings in accordance with its legallymandated responsibilities. All directors performed their duties in compliance with applicable laws,faithfully fulfilled their responsibilities, actively participated in Board and Shareholders' meetings,attended relevant training programs, promoted standardized operations and sound decision-makingprocesses of the Board, and protected the interests of the company and all shareholders. The Board ofDirectors has established three committees: the Strategic Committee, the Audit and Risk ControlCommittee, and the Compensation and Evaluation Committee. These Board committees provide expertand professional recommendations to support Board decisions, ensuring the soundness of the Board'sdecision-making process.
3. Supervisors and the Board of Supervisors
The Company elects supervisors in strict accordance with the selection procedures stipulated in theCompany Law, the Articles of Association and the Rules of Procedure for the Board of Supervisors. Thecomposition and qualifications of the members of the Board of Supervisors of the Company complywith relevant laws and regulations. During the reporting period, the Board of Supervisors convened andheld meetings in accordance with its legally mandated responsibilities. All supervisors attended thesupervisory board meetings as required, diligently performed their duties, and provided oversight andopinions on the Company's periodic reports, related-party transactions, major asset restructuring, othersignificant matters, and the performance of directors and senior management, thereby protecting thelegitimate interests of the Company and its shareholders.
4. Relationship between controlling shareholders and listed companies
The Company maintains independence from its controlling shareholder in all aspects, includingbusiness, personnel, assets, organization, and finance, and it possesses independent and comprehensivebusiness operations and autonomous management capabilities. Controlling shareholders of the Companycan regularize their own behaviors according to the Code of Corporate Governance for Listed Companies,the No.1 Guidelines for Self-discipline Supervision of Listed Companies - Standardized Operation of
Listed Companies on the Main Board and the Articles of Association, and do not interfere with theoperation and decision-making activities of the Company directly or indirectly without obtaining thepermission of the shareholders' meeting, or occupy non-operational funds of the Company, or obtainguarantee from the Company.
5. Information disclosure and transparency
The Company strictly adheres to the "Administrative Measures for Information Disclosure of ListedCompanies," "Shenzhen Stock Exchange Stock Listing Rules," "No.1 Guidelines for Self-disciplineSupervision of Listed Companies - Standardized Operation of Listed Companies on the Main Board,"the "Articles of Association" and other regulations, diligently fulfilling its information disclosureobligations by releasing relevant information in a truthful, accurate, complete, timely, and fair manner;The Company effectively manages the registration of insiders with access to non-public information,protecting investors' legitimate rights and interests; The Company assigns dedicated personnel to handleinvestor relations management, enhancing communication with investors through multiple channels,ensuring all shareholders have equal access to Company information.
6. Stakeholders
The Company actively fulfills its social responsibilities as a central state-owned enterprise,respecting and protecting stakeholders' legitimate rights and interests, working to balance the interestsof shareholders, employees, society, and other parties, strengthening communication with all parties,legally safeguarding stakeholders' rights, and jointly promoting the Company's sustainable, stable, andhealthy development.Whether there is a significant difference between the actual situation of corporate governance andlaws, administrative regulations and the regulations on the governance of listed companies issued bythe China Securities Regulatory Commission
□Yes ?No
There is no significant difference between the actual situation of corporate governance and laws,administrative regulations and the regulations on the governance of listed companies issued by theChina Securities Regulatory Commission.
II. Independence of the Company from Controlling Shareholders and Actual Controllers inTerms of Guaranteeing the Company's Assets, Personnel, Finance, Organizations and BusinessThe Company has independent and complete business and operation capacity and is completelyindependent of controlling shareholders in terms of business, personnel, assets, organizations, finance,etc. Specific steps are as follows:
1. Business: The Company has independent business operation systems for procurement,production and sales, possesses independent operation capacity, and can organize and undertakeproduction and operation activities independently.
2. Personnel: The Company has an independent personnel management organization and system,and establishes an independent and complete salary management system. The senior executives of theCompany are full-time employees and receive salary from the Company.
3. Assets: The ownership of the Company's assets is clear and complete, and no controllingshareholders' assets are relied on for production and operation. The Company has rights to own, control,dispose of, and obtain earnings from its assets. No Company asset is occupied by controllingshareholders.
4. Organization: The Company has an independent and complete organizational structure andproduction and business premises. The Board of Directors, the Board of Supervisors and other internalorganizations operate independently and do not work together with controlling shareholders.
5. Finance: The Company has an independent and complete financial department, possesses aperfect financial management system and accounting system, opens an independent bank account, andpays taxes independently according to law.III. Horizontal Competition?Applicable □Not applicable
| Problem type | Type of Relationship with Listed Company | Company Name | Nature of Company | Causes | Solutions | Work Progress and Follow-up Plan |
| Horizontal competition | Controlling shareholder | China FAW Group Co., Ltd. | Others | In 2020, the listed company completed a major asset | Harbin Light Automobile and FAW Hongta are in a state of discontinuation or loss currently, with | Perform as promised |
| restructuring, and its main business was changed to the R&D, production and sales of commercial vehicles. FAW Harbin Light Automobile Co., Ltd. and FAW Hongta Yunnan Automobile Manufacturing Co., Ltd., which are members of FAW Light Commercial Vehicle Co., Ltd., a subsidiary of FAW, are engaged in some light truck businesses. There is a horizontal competition or potential horizontal competition between them and the listed company. | heavy burden and unstable profitability. FAW promises that it will entrust all shares of Harbin Light Automobile and FAW Hongta under its actual control to Jiefang Limited for management, and inject the equities of Harbin Light Automobile and FAW Hongta under its actual control to listed companies in batches or at one time in an appropriate way, or transfer them to other unrelated third parties at a reasonable price and in a reasonable way, or prevent the light truck company from engaging in light truck-related businesses by exercising shareholders' rights, and perform relevant internal approval procedures as soon as possible after the above procedures are initiated within 12 months after meeting the requirements that the return on net assets of Harbin Light Automobile and FAW Hongta is not lower than that of listed companies in the same period and increasing the |
| earnings per share of listed companies after restructuring. | ||||||
| Horizontal competition | Controlling shareholder | China FAW Co., Ltd. | Others | In 2020, the listed company completed a major asset restructuring, and its main business was changed to the R&D, production and sales of commercial vehicles. FAW Harbin Light Automobile Co., Ltd. and FAW Hongta Yunnan Automobile Manufacturing Co., Ltd., which are members of FAW Light Commercial Vehicle Co., Ltd., a subsidiary of FAW Car Co., Ltd., are engaged in some light truck businesses. There is a horizontal competition or potential horizontal competition between them and | Harbin Light Automobile and FAW Hongta are in a state of discontinuation or loss currently, with heavy burden and unstable profitability. FAW Car Co., Ltd. promises that it will urge to entrust all shares of Harbin Light Automobile and FAW Hongta under its actual control to Jiefang Limited for management, and inject the equities of Harbin Light Automobile and FAW Hongta under its actual control to listed companies in batches or at one time in an appropriate way, or transfer them to other unrelated third parties at a reasonable price and in a reasonable way, or prevent the light truck company from engaging in light truck-related businesses by exercising shareholders' rights, and perform relevant internal approval procedures as soon as possible after the above procedures are initiated within 12 | Perform as promised |
| the listed company. | months after meeting the requirements that the return on net assets of Harbin Light Automobile and FAW Hongta is not lower than that of listed companies in the same period and increasing the earnings per share of listed companies after restructuring. |
IV. Information on Annual Shareholders' Meeting and Extraordinary Shareholders' MeetingHeld in the Reporting Period
1. Shareholders' meeting in the reporting period
| Session | Meeting Type | Participation Ratio of Investors | Date | Date of Disclosure | Meeting Resolution |
| First extraordinary shareholders' meeting of 2024 | Extraordinary shareholders' meeting | 85.00% | February 21, 2024 | February 22, 2024 | Reviewed and approved "The Proposal on Estimated Amount of Daily Related Transactions in 2024," "The Proposal on Estimated Amount of Financial Business with First Automobile Finance Co., Ltd. in 2024," "The Proposal on Electing Deng Weigong as a Non-independent Director of the Company," and "The Proposal on Electing Li Ying as a Supervisor of the Company." |
| 2023 Annual shareholders' meeting | Annual shareholders' meeting | 84.45% | April 25, 2024 | April 26, 2024 | Reviewed and approved "The 2023 Work Report of the Board of Directors," "The 2023 Work Report of the |
| Board of Supervisors," "The 2023 Financial Statements," "The 2023 Annual Report and Summary Thereof," "The 2023 Profit Distribution Plan," "The Proposal on Unsuccessful Lifting of Conditions of the Third Release Period First Granted by the Phase I Restricted Share Incentive Plan for Releasing the Restricted Sales and of Conditions of the Second Release Period Reserved by the Phase I Restricted Share Incentive Plan for Releasing the Restricted Sales and Repurchase and Cancellation of Some Restricted Shares," "Proposal on Change of Registered Capital of the Company," "Proposal on Amending the 'Articles of Association'," and "Proposal on Electing Wang Hao as a Non-independent Director of the Company." | |||||
| Second extraordinary shareholders' meeting of 2024 | Extraordinary shareholders' meeting | 84.11% | June 19, 2024 | June 20, 2024 | Reviewed and approved "Proposal on Extending the Validity Period of the Resolution Regarding 'The Company's 2023 Non-public Offering of A Shares,'" "Proposal on Extending the Authorization Period for 'Requesting the Shareholders' Meeting to Authorize the |
| Board of Directors to Handle Specific Matters Related to this Non-public Offering of A Shares,'" and "Proposal on Electing Chen Hua as a Non-independent Director of the Company." | |||||
| Third extraordinary shareholders' meeting of 2024 | Extraordinary shareholders' meeting | 7.08% | November 21, 2024 | November 22, 2024 | Reviewed and approved "Proposal on the Company Meeting the Conditions for Major Asset Disposal and Related-Party Transaction," "Proposal on the Company's Major Asset Disposal and Related-Party Transaction Plan" (voted item by item, comprising 8 sub-proposals), "Proposal on This Restructuring Constituting a Related-Party Transaction," "Proposal on 'FAW Jiefang Group Co., Ltd. Major Asset Disposal and Related-Party Transaction Report (Draft)' and its Summary," "Proposal on Signing the Relevant Agreements for This Restructuring," "Proposal on the Company's Restructuring Complying with Article 11 of the 'Administrative Measures for Major Asset Restructuring of Listed Companies'," "Proposal on the Company's Restructuring Complying with Article 4 of the 'Regulatory Guidelines for Listed Companies No.9 - |
| Immediate Returns from This Restructuring and the Company's Remedial Measures," "Proposal on the Relevant Parties of the Company's Restructuring Not Having the Circumstances Specified in Article 12 of the 'Regulatory Guidelines for Listed Companies No.7 - Regulation of Abnormal Stock Trading Related to Major Asset Restructuring of Listed Companies'," "Proposal on the Explanation of Confidentiality Measures and Confidentiality System Adopted for This Restructuring," and "Proposal on Requesting the Shareholders' Meeting to Authorize the Board of Directors and its Authorized Representatives to Handle Matters Related to This Restructuring." | |||||
| Fourth extraordinary shareholders' meeting of 2024 | Extraordinary shareholders' meeting | 17.01% | November 29, 2024 | November 30, 2024 | Reviewed and approved the Proposal on Renewal of Employment of Financial Audit Institutions, the Proposal on Renewal of Employment of Internal Control Audit Institutions, the Proposal on Change of Registered Capital of the Company and the Proposal on Amending the Articles of Association |
2. Preferred shareholders with resumed voting rights request to convene an extraordinaryshareholders' meeting
□Applicable ?Not applicable
V. Directors, Supervisors and Senior Executives
1. Basic Information
| Name | Gender | Age | Position | Employment Status | Start Date of Tenure | Ending Date of Tenure | Number of Shares Held at the Beginning of the Period (share) | Number of Shares Increased in the Current Period (share) | Number of Shares Reduced in the Current Period (share) | Other Increase/Decrease (share) | Number of Shares Held at the End of the Period (share) | Reasons for the Increase or Decrease of Shares |
| Wu Bilei | Male | 54 | Chairman of the Board | Departure from office | October 30, 2023 | December 26, 2024 | 153,130 | -77,708 | 75,422 | Cancellation through repurchase | ||
| Li Sheng | Male | 48 | Chairman of the Board | In-service | December 26, 2024 | April 23, 2026 | 129,161 | -65,544 | 63,617 | Cancellation through repurchase | ||
| Wang Hao | Male | 54 | Director | In-service | April 25, 2024 | April 23, 2026 | ||||||
| Zhang Guohua | Male | 52 | Director | Departure from office | June 23, 2020 | March 08, 2024 | 153,090 | 18,851 | -77,687 | 56,552 | Cancellation through repurchase and transfer | |
| Bi Wenquan | Male | 52 | Director | Departure from office | September 15, 2021 | May 09, 2024 | ||||||
| Liu Yanchang | Male | 61 | Director | In-service | September 16, 2022 | April 23, 2026 | ||||||
| Deng | Male | 58 | Director | In- | February 21, | April 23, |
| Weigong | service | 2024 | 2026 | |||||||||
| Chen Hua | Female | 56 | Director | In-service | June 19, 2024 | April 23, 2026 | ||||||
| Han Fangming | Male | 58 | Independent director | In-service | April 22, 2020 | April 23, 2026 | ||||||
| Mao Zhihong | Male | 63 | Independent director | In-service | April 22, 2020 | April 23, 2026 | ||||||
| Dong Zhonglang | Male | 60 | Independent director | In-service | April 22, 2020 | April 23, 2026 | ||||||
| Li Ying | Female | 51 | Chairman of Board of Supervisors | In-service | March 28, 2024 | April 23, 2026 | ||||||
| Yan Feng | Male | 58 | Chairman of Board of Supervisors | Departure from office | December 29, 2023 | January 17, 2024 | ||||||
| Xu Haigen | Male | 60 | Employee Supervisor | In-service | April 22, 2020 | March 17, 2025 | ||||||
| Wang Lijun | Male | 56 | Employee Supervisor | In-service | April 22, 2020 | April 23, 2026 | ||||||
| Duan Yinghui | Male | 54 | Employee Supervisor | In-service | April 22, 2020 | April 23, 2026 | ||||||
| Ren Ruijie | Male | 41 | Employee Supervisor | Departure from office | April 22, 2020 | March 08, 2024 | ||||||
| Li | Male | 48 | General | Depart | October 30, | December |
| Sheng | Manager | ure from office | 2023 | 26, 2024 | ||||||||
| Yu Changxin | Male | 52 | General Manager | In-service | December 26, 2024 | April 23, 2026 | ||||||
| Yu Changxin | Male | 52 | Executive Deputy General Manager | Departure from office | November 28, 2022 | December 26, 2024 | ||||||
| Ji Yizhi | Male | 55 | Deputy General Manager | Departure from office | October 19, 2022 | December 26, 2024 | 129,161 | -65,544 | 63,617 | Cancellation through repurchase | ||
| Wang Jianyu | Male | 45 | Deputy General Manager | In-service | March 28, 2024 | April 23, 2026 | 129,161 | -65,544 | 63,617 | Cancellation through repurchase | ||
| Tian Haifeng | Male | 52 | Deputy General Manager | Departure from office | October 19, 2022 | March 08, 2024 | 129,161 | -65,544 | 63,617 | Cancellation through repurchase | ||
| Wang Jianxun | Male | 41 | Secretary of the Board of Directors | In-service | July 23, 2020 | April 23, 2026 | 129,161 | -65,544 | 63,617 | Cancellation through repurchase | ||
| Total | -- | -- | -- | -- | -- | -- | 952,025 | 0 | 18,851 | -483,115 | 450,059 | -- |
Whether any director or supervisor during the term of office leaves office or any senior executive is dismissed in the reporting period?Yes □NoOn January 18, 2024, the Company disclosed the Announcement of Changing the Supervisor of the Company. Mr. Yan Feng applied to resignfrom his posts as the Chairman and the Supervisor of the 10th Board of Supervisors of the Company due to personal reasons. On March 11, 2024,the Company separately disclosed the Announcement on Resignation of Directors and Senior Executives and the Announcement on Resignationof Supervisors. Mr. Zhang Guohua applied to resign from his post as a Director of the Company due to job changes. Mr. Ren Ruijie has submittedhis resignation as the Company's supervisor due to job reassignment; Mr. Tian Haifeng has submitted his resignation as the Company's Deputy
General Manager due to job reassignment. On May 10, 2024, the Company disclosed the "Announcement on the Resignation of a CompanyDirector," stating that Mr. Bi Wenquan has submitted his resignation as a Company director due to work reassignment. On December 27, 2024,the Company disclosed the "Announcement on Changes to the Company's Chairman and Senior Management," stating that Mr. Wu Bilei hassubmitted his resignation as Chairman of the Tenth Board of Directors, director, and member of the Board specialized committees due to workarrangements; Mr. Li Sheng will assume the position of Company Chairman and has submitted his resignation as General Manager; Mr. YuChangxin will assume the position of General Manager and has submitted his resignation as Executive Deputy General Manager; Mr. Ji Yizhi hassubmitted his resignation as Deputy General Manager due to job reassignment. On March 18, 2025, the Company disclosed the "Announcementon Resignation of Supervisors," stating that Mr. Xu Haigen has submitted his resignation as Company supervisor due to statutory retirement.For details, please refer to the announcements by the Company in the Securities Times, China Securities Journal and CNINFO(http://www.cninfo.com.cn).
Changes in Directors, Supervisors and Senior Management of the Company?Applicable □Not applicable
| Name | Position | Type | Date | Reason |
| Wu Bilei | Chairman of the Board | Departure from office | December 26, 2024 | Job transfer |
| Zhang Guohua | Director | Departure from office | March 08, 2024 | Job transfer |
| Bi Wenquan | Director | Departure from office | May 09, 2024 | Job transfer |
| Yan Feng | Chairman of Board of Supervisors | Departure from office | January 17, 2024 | Personal reasons |
| Ren Ruijie | Supervisor | Departure from office | March 08, 2024 | Job transfer |
| Li Sheng | General Manager | Dismissal | December 26, 2024 | Job transfer |
| Yu Changxin | Executive Deputy General Manager | Dismissal | December 26, 2024 | Job transfer |
| Ji Yizhi | Deputy General Manager | Dismissal | December 26, 2024 | Job transfer |
| Tian Haifeng | Deputy General Manager | Dismissal | March 08, 2024 | Job transfer |
2. Employment status
Professional background, main work experience and main responsibilities of current directors,supervisors and senior executives of the CompanyDirector:
Mr. Li Sheng is currently the Chairman and Secretary of the Party Committee of the Company,as well as the Executive Director and Secretary of the Party Committee of Jiefang Co., Ltd. He hasserved successively as Assistant Director of Commercial Vehicle Development Institute of JiefangLimited and Senior Manager and R&D Department of Qingdao Vehicle Division (FAW JiefangQingdao Automobile Plant); Deputy General Manager of Jiefang Limited Qingdao Vehicle Division
(Qingdao Company) and Assistant Director of Commercial Vehicle Development Institute; DeputyDirector of Commercial Vehicle Development Institute of Jiefang Limited and Deputy GeneralManager and R&D Department Director of Qingdao Vehicle Division (FAW Jiefang QingdaoAutomobile Plant); Executive Deputy General Manager and R&D Department Director of QingdaoVehicle Division (FAW Jiefang Qingdao Automobile Plant); Deputy General Manager of theCompany and Deputy General Manager of Jiefang Limited, General Manager and Party CommitteeSecretary of Qingdao Vehicle Division (FAW Jiefang Qingdao Automobile Plant), General Managerof the Medium and Heavy Vehicle Product Line of the Qingdao Vehicle Division and GeneralManager of the Light Vehicle Product Line; General Manager and Deputy Party Committee Secretaryof the Company, and General Manager and Deputy Party Committee Secretary of Jiefang Limited.Mr. Wang Hao is currently the Deputy Secretary of the Party Committee and Chairman of theLabor Union of the Company and the Deputy Secretary of the Party Committee and Chairman of theLabor Union of Jiefang Limited. He has served successively as Deputy Party Committee Secretary,Discipline Committee Secretary, and Labor Union Chairman of FAW Toyota Changchun Engine Co.,Ltd.; Deputy Party Committee Secretary, Discipline Committee Secretary, and Labor UnionChairman of FAW Toyota Automobile Sales Co., Ltd.; Deputy Director of China FAW SupervisionDepartment; Standing Committee Member of China FAW Discipline Committee; and Director ofChina FAW Party Committee Inspection Office.Mr. Liu Yanchang is currently a full-time external director and convener/team leader of thesubsidiary of FAW Financial Management Department (Office of the Board of Directors). He hasserved successively as the Deputy Secretary of the Party Committee, Secretary of the Commissionfor Discipline Inspection and Chairman of the Labor Union of Jiefang Limited, Deputy Secretary ofthe Party Committee and Chairman of the Labor Union of FAW Jiefang, Deputy Secretary of theParty Committee, Head of the Labor Union and Chairman of the Labor Union of FAW-VolkswagenAutomobile Co., Ltd.Mr. Deng Weigong is currently a full-time external director of the subsidiary of the FinancialManagement Department (Office of the Board of Directors) of FAW Group. He has servedsuccessively as the General Manager and Secretary of the Party Committee of FAW ToyotaChangchun Engine Co., Ltd., Deputy Secretary of the Party Committee, Secretary of the DisciplineInspection Commission and Chairman of the Labor Union of Tianjin FAW Toyota Motor Co., Ltd.,Chairman and Secretary of the Party committee of FAW Foundry Co., Ltd.
Ms. Chen Hua is currently a part-time external director of the subsidiary of the FinancialManagement Department (Office of the Board of Directors) of FAW Group. She has servedsuccessively as the Manager of the Product Control Section of FAW-Volkswagen Automobile Co.,Ltd., the Director of the Product Control Department of FAW-Volkswagen Automobile Co., Ltd. andthe Director of Control of FAW-Volkswagen Automobile Co., Ltd.Mr. Han Fangming is currently the President of the Chahar Institute and a senior consultant tothe Board of Directors of TCL Technology Group Co., Ltd. He is also the Vice Chairman of ChinaOverseas-educated Scholars Development Foundation, the Deputy Editor-in-Chief of PublicDiplomacy Quarterly of CICG, the Vice Chairman of China National Association For InternationalStudies, the Vice Chairman of China Southeast Asian Research Association, the Director of theNational Council of the Chinese People's Association for Friendship with Foreign Countries, and theDirector of Chinese People's Institute of Foreign Affairs. He has served successively as a member ofthe 10th, 11th, 12th and 13th CPPCC and served as the deputy director of the Foreign AffairsCommittee of the National Committee of the CPPCC for three consecutive terms from 2008 to March2023.
Mr. Mao Zhihong is currently the Professor and Doctoral Supervisor of the Department ofAccounting, School of Business and Management, Jilin University. He has served successively as theAssociate Professor of Jilin University of Finance and Trade (which was renamed ChangchunUniversity of Taxation, i.e. the current Jilin University of Finance and Economics).
Mr. Dong Zhonglang is currently the managing partner of Zhuhai Yinshan Capital EquityInvestment Management Co., Ltd. He has served successively as the Director of Linde (Xiamen)Forklift Co., Ltd., the General Manager of Shanghai Oulin Logistics Co., Ltd., the Logistics Directorof Weichai Power Group, and the partner of Eastern Bell Capital (Shanghai).Supervisor:
Ms. Li Ying is currently the Deputy General Manager of the Audit and Legal AffairsDepartment and the Chief Auditor of FAW Group. She has served successively as the Senior Expertof the Audit Department of FAW Group, the Senior Director of the Audit and Legal AffairsDepartment of FAW Group and the Director of the Management Audit Department of the Audit andLegal Affairs Department of FAW Group.
Mr. Xu Haigen has served successively as the Deputy General Manager of the Wuxi DieselEngine Branch of Jiefang Limited, the Deputy Secretary of the Party Committee, Secretary of the
Commission for Discipline Inspection and Chairman of the Labor Union of Wuxi Diesel EngineFactory of Jiefang Limited, the Deputy Secretary of the Party Committee, Secretary of theCommission for Discipline Inspection and Chairman of the Labor Union of Engine Division ofJiefang Business Headquarters, and the Deputy Secretary of the Party Committee, Secretary of theCommission for Discipline Inspection and Chairman of the Labor Union of Engine Division ofJiefang Limited.
Mr. Wang Lijun is currently the General Manager and Secretary of the Party Committee ofFAW Jiefang Intelligent Logistics Co., Ltd. He has served successively as the Deputy Secretary ofthe Party Committee (who is responsible for presiding over the work), the Secretary of theCommission for Discipline Inspection and the Chairman of the Labor Union of the DistributionCenter of FAW Car, the Manager of the Distribution Plant of FAW-Volkswagen Automobile Co.,Ltd., the Director of the Powertrain Division of FAW-Volkswagen Automobile Co., Ltd. and theManager of the Changchun Distribution Plant, the Director of the Distribution Center and Secretaryof the Party Committee of FAW Car, and the Deputy Secretary of the Party Committee, Secretary ofthe Discipline Inspection Commission and Chairman of the Labor Union of the TransmissionDivision of Jiefang Limited, and the Deputy Secretary of the Party Committee, Secretary of theCommission for Discipline Inspection and Head of the Labor Union of Qingdao Vehicle Division(FAW Jiefang Qingdao Automobile Plant), as well as the Deputy Secretary of the Party Committee,Secretary of the Commission for Discipline Inspection and President of the Labor Union of QingdaoVehicle Division (FAW Jiefang Qingdao Automobile Plant).Mr. Duan Yinghui is currently the Deputy General Manager of Qingdao Vehicle Division(FAW Jiefang Qingdao Automobile Plant) of Jiefang Limited, the Manager of Qingdao Factory andthe Safety Director of FAW Jiefang (Qingdao) Automotive Co., Ltd.. He has served successively asthe Deputy General Manager of FAW Jiefang (Qingdao) Automotive Co., Ltd., the Deputy Directorof FAW Jiefang Product Management Department, the Deputy Secretary of the Party Committee,Secretary of the Discipline Inspection Commission and Head of the Labor Union of Qingdao VehicleDivision (FAW Jiefang (Qingdao) Automotive Co., Ltd.) of FAW Jiefang Business Headquarters,and the Deputy Secretary of the Party Committee, Secretary of the Discipline Inspection Commissionand Chairman of the Labor Union of FAW Jiefang Qingdao Vehicle Division (FAW Jiefang (Qingdao)Automotive Co., Ltd.), and the Manager and Secretary of the Party Committee of the Truck Factoryof Jiefang Limited.
Senior executives other than directors and supervisors:
Mr. Yu Changxin is currently the General Manager and Deputy Secretary of the PartyCommittee of the Company, as well as the General Manager and Deputy Secretary of the PartyCommittee of Jiefang Limited. He has successively served as the Deputy Director of MarketingHeadquarters (Deputy General Manager of FAW Jiefang Automobile Sales Company) of JiefangLimited. and the Deputy General Manager of Qingdao Vehicle Division (FAW Jiefang QingdaoAutomobile Plant), the General Manager of the Commercial Vehicle Overseas Marketing Departmentof Jiefang Limited. and Deputy General Manager of China FAW Group Import & Export Co., Ltd.,the General Manager and Deputy Secretary of the Party Committee of China FAW Group Import &Export Co., Ltd., the Executive Deputy General Manager of FAW Jiefang, the Deputy GeneralManager of the Company and the General Manager of the Overseas Product Line, Executive DeputyGeneral Manager of the Company and Executive Deputy General Manager of Jiefang Limited.
Mr. Wang Jianyu is currently the Deputy General Manager of the Company and, the DeputyGeneral Manager of Jiefang Limited, the President and Secretary of the Party Committee of theCommercial Vehicle Development Institute. He has successively served as the Chief SteeringDevelopment Officer of the Commercial Vehicle Development Institute of Jiefang Limited, theDirector of the Chassis Development Department of the Commercial Vehicle Development Institute,and the Vice President of the Commercial Vehicle Development Institute.Mr. Wang Jianxun is currently the Secretary of the Board of Directors and Director of theCapital Operation Department of the Company. He has served successively as the Deputy OfficeDirector and Office Director of the Board of Directors of TCL Group Co., Ltd., the Deputy GeneralManager of Shenzhen Create Century Machinery Co., Ltd., etc.Status of the post held in the form of shareholders?Applicable □Not applicable
| Name of Employees | Name of Shareholder | Position in the Shareholder | Start Date of Tenure | Ending Date of Tenure | Whether Remuneration and Allowance are Received from the |
| Shareholder | |||||
| Liu Yanchang | China FAW Group Co., Ltd. | Full-time external director, convener/team leader of a subsidiary of the Financial Management Department (Office of the Board of Directors) | July 01, 2022 | Yes | |
| Deng Weigong | China FAW Group Co., Ltd. | Full-time external director of a subsidiary of the Financial Management Department (Office of the Board of Directors) | October 01, 2023 | Yes | |
| Chen Hua | China FAW Group Co., Ltd. | Part-time external director of a subsidiary of the Financial Management Department (Office of the Board of Directors) | May 01, 2024 | Yes | |
| Li Ying | China FAW Group Co., Ltd. | Deputy General Manager of the Audit and Legal Affairs Department and the Chief Auditor of FAW Group | September 01, 2022 | Yes |
Position in other organizations?Applicable □Not applicable
| Name of Employees | Name of Other Organizations | Position in Other Organizations | Start Date of Tenure | Ending Date of Tenure | Whether Remuneration and Allowance are Received |
| from Other Organizations | |||||
| Han Fangming | Chahar Institute | President | October 01, 2009 | Yes | |
| Mao Zhihong | Jilin University | Professor and Doctoral Supervisor of the Department of Accounting, School of Business and Management | November 01, 2000 | Yes | |
| Dong Zhonglang | Zhuhai Yinshan Capital Equity Investment Management Co., Ltd. | Managing Partner | May 01, 2017 | Yes |
Penalties imposed by securities regulatory authorities in the past three years on directors,supervisors and senior executives currently in office or leaving office in the reporting period
□Applicable ?Not applicable
3. Remuneration of Company's Directors, Supervisors and Senior ExecutivesDecision-making procedure, determination basis and actual payment of remuneration for directors,supervisors and senior executives
| Decision-Making Process of Compensation of Directors, Supervisors and Senior Management | Only the remuneration for directors (excluding independent directors) and supervisors currently in office shall be paid, and the remuneration for directors and supervisors who have left the office shall be paid by their employers. The remuneration paid by the Company to relevant directors, supervisors and senior executives shall be determined by the Board of Directors. |
| Decision Basis of Compensation of Directors, Supervisors and Senior Management | Directors (excluding independent directors), supervisors and senior management who receive compensation from the Company follow an annual compensation system that consists of three main components: base salary, performance-based bonus, and tenure incentive. The performance-based bonus is determined according to indicators including the Company's operating results, performance evaluation, and fulfillment of duties during the reporting period. The tenure incentive is determined according to indicators including operating results, performance evaluation, and fulfillment of duties during the term of office. |
| Remuneration Paid to Directors, Supervisors and Senior Management | During the reporting period, the total compensation paid to directors (excluding independent directors), supervisors, and senior management amounted to 11.8691 million yuan (including tax); a total of 450 thousand yuan (tax inclusive) of allowances was paid to independent directors, and reasonable expenses (including travel expenses, office expenses, training expenses, etc.) required to attend the Company's Board of Directors, shareholders' meeting and exercise their functions and powers in accordance with relevant regulations can be reimbursed by the Company on actual circumstances. |
Compensations of Directors, Supervisors and Senior Executives of the Company in the ReportingPeriod
Unit: 10 thousand yuan
| Name | Gender | Age | Position | Employment Status | Number of months of receiving salary | Total Pre-tax Compensation Received from the Company | Whether remuneration is obtained from related parties of the Company |
| Wu Bilei | Male | 54 | Chairman of the Board | Departure from office | 6 | 79.16 | Yes |
| Li Sheng | Male | 48 | Chairman of | In- | 150.28 | No |
| the Board | service | 12 | |||||
| Wang Hao | Male | 54 | Director | In-service | 10 | 102.37 | No |
| Zhang Guohua | Male | 52 | Director | Departure from office | 2 | 23.35 | No |
| Bi Wenquan | Male | 52 | Director | Departure from office | Yes | ||
| Liu Yanchang | Male | 61 | Director | In-service | Yes | ||
| Deng Weigong | Male | 58 | Director | In-service | Yes | ||
| Chen Hua | Female | 56 | Director | In-service | Yes | ||
| Han Fangming | Male | 58 | Independent director | In-service | 15 | No | |
| Mao Zhihong | Male | 63 | Independent director | In-service | 15 | No | |
| Dong Zhonglang | Male | 60 | Independent director | In-service | 15 | No | |
| Li Ying | Female | 51 | Chairman of Board of Supervisors | In-service | Yes | ||
| Yan Feng | Male | 58 | Chairman of Board of Supervisors | Departure from office | Yes | ||
| Xu Haigen | Male | 60 | Employee Supervisor | In-servic | 12 | 81.87 | No |
| e | |||||||
| Wang Lijun | Male | 56 | Employee Supervisor | In-service | 12 | 88.60 | No |
| Duan Yinghui | Male | 54 | Employee Supervisor | In-service | 12 | 105.36 | No |
| Ren Ruijie | Male | 41 | Employee Supervisor | Departure from office | 2 | 17.24 | No |
| Yu Changxin | Male | 52 | General Manager | In-service | 12 | 142.45 | No |
| Ji Yizhi | Male | 55 | Deputy General Manager | Departure from office | 12 | 133.43 | No |
| Wang Jianyu | Male | 45 | Deputy General Manager | In-service | 12 | 113.73 | No |
| Tian Haifeng | Male | 52 | Deputy General Manager | Departure from office | 1 | 12.13 | No |
| Wang Jianxun | Male | 41 | Secretary of the Board of Directors | In-service | 12 | 136.94 | No |
| Total | -- | -- | -- | -- | 1,231.91 | -- |
Other situations
□Applicable ?Not applicable
VI. Performance of Duties by Directors in the Reporting Period
1. Information of the Board of Directors during the reporting period
| Session | Date | Date of Disclosure | Meeting Resolution |
| The 9th Meeting of the 10th Board | January 17, 2024 | January 18, 2024 | Reviewed and approved 'The Proposal on Electing Deng Weigong as a Non-independent Director of the |
| of Directors | Company' | ||
| The 10th Meeting of the 10th Board of Directors | January 30, 2024 | January 31, 2024 | Reviewed and approved the "The Proposal on Estimated Amount of Daily Related Transactions in 2024," "The Proposal on Estimated Amount of Financial Business with First Automobile Finance Co., Ltd. in 2024," "Proposal on the Company's Establishment of Designated Accounts for Raised Funds and Authorization to Sign Raised Funds Supervision Agreement," "2024 Equity Investment Plan," "2024 Fixed Asset Investment Plan," "Proposal on By-election of Members to the Board's Strategy Committee," and "Proposal on Convening the First Extraordinary Shareholders' Meeting of 2024." |
| The 11th Meeting of the 10th Board of Directors | March 28, 2024 | March 30, 2024 | Reviewed and approved the "2023 Annual Operations Summary and 2024 Annual Operations Plan," "The 2023 Work Report of the Board of Directors," "The 2023 Financial Statements and The 2024 Financial Statements," "The 2023 Annual Report and Summary Thereof," "Proposal on Asset Impairment Provisions for the Second Half of 2023," "Proposal on Risk Assessment Report of First Automobile Finance Co., Ltd.," "2023 Annual Profit Distribution Plan," "2023 Environmental, Social and Governance (ESG) Report," "Proposal on Adjusting Members of the Board's Audit and Risk Control Committee," "Proposal on By-election of Members to the Board's Strategy Committee," "Proposal on Electing Wang Hao as a Non-independent Director of the Company," "Proposal on Appointing Company Deputy General Manager," "2023 Annual Internal Control Evaluation Report," "2023 Annual Rule of Law Implementation and Compliance Management Report," "2023 Annual Internal Audit Report," "2023 Annual Internal Control Development Report," "The Proposal on Unsuccessful Lifting of Conditions of the Third Release Period First Granted by the Phase I |
| Restricted Share Incentive Plan for Releasing the Restricted Sales and of Conditions of the Second Release Period Reserved by the Phase I Restricted Share Incentive Plan for Releasing the Restricted Sales and Repurchase and Cancellation of Some Restricted Shares," "Proposal on Change of Registered Capital of the Company," "Proposal on Amending the 'Articles of Association'," "Proposal on Amending the 'Raised Funds Management System'," "Proposal on Amending the 'Independent Director Working Rules'," "Proposal on Convening the 2023 Annual Shareholders' Meeting," "Communicating Key Policy Directives and Important Meeting Guidance from the CPC Central Committee, State Council, and State-owned Assets Supervision and Administration Commission"; Received briefings on: "Report on Implementation of Board Resolutions," "Report on Implementation of Board Authorizations," "Quarterly Feedback on Full-time External Directors' Opinions," "Report on Implementation of Company Strategic Planning," "Report on the Accounting Firm's 2023 Annual Audit," and "2023 Annual Independent Directors' Performance Report." | |||
| The 12th Meeting of the 10th Board of Directors | April 29, 2024 | April 30, 2024 | Reviewed and approved the "Report on the First Quarter of 2024" and "Proposal on Establishing FAW Jiefang International Trade Co., Ltd."; Received: "Communicating Key Policy Directives and Important Meeting Guidance from the CPC Central Committee, State Council, and State-owned Assets Supervision and Administration Commission"; Heard briefings on: "Report on Business Operations for the First Quarter of 2024" and "Report on Implementation of Board Resolutions for the First Quarter of 2024." |
| The 13th Meeting of the 10th Board of Directors | May 27, 2024 | - | Reviewed and approved the "2023 Performance Evaluation Results of Senior Executives," "2023 Performance Assessment and Remuneration |
| Encashment Plan for Senior Executives," "2024 Total Salary and Labor Cost Plan," "2024 Performance Appraisal Indicator Plan," "2024 Performance Assessment Indicator Plan for Senior Executives," and "2024 Base Salary Plan for Senior Executives." | |||
| The 14th Meeting of the 10th Board of Directors | June 03, 2024 | June 04, 2024 | Reviewed and approved the "Proposal on Extending the Validity Period of the Resolution Regarding 'The Company's 2023 Non-public Offering of A Shares,'" "Proposal on Extending the Authorization Period for 'Requesting the Shareholders' Meeting to Authorize the Board of Directors to Handle Specific Matters Related to this Non-public Offering of A Shares,'" and "Proposal on Electing Chen Hua as a Non-independent Director of the Company", and 'Proposal on Convening the 2024 Second Extraordinary General Meeting'. |
| The 15th Meeting of the 10th Board of Directors | August 29, 2024 | August 31, 2024 | Reviewed and approved the "2024 First Half Operations Summary and Second Half Operations Plan," "2024 Semi-annual Report and its Summary," "Proposal on Risk Assessment Report of First Automobile Finance Co., Ltd.," "Proposal on Asset Impairment Provisions for the First Half of 2024," "Plan for Company Organizational Structure Adjustment," "Mid-year Adjustment to the 2024 Fixed Assets Investment Plan," "Mid-year Adjustment to the 2024 Equity Investment Plan," and "2024 Internal Audit Semi-annual Report"; Received: "Communicating Key Policy Directives and Important Meeting Guidance from the CPC Central Committee, State Council, and State-owned Assets Supervision and Administration Commission"; Heard briefings on: "Report on Implementation of Company Strategic Planning," "Report on Implementation of Board Authorizations for the First Half of 2024," and "Report on Implementation of Board Resolutions for the First Half of 2024." |
| The 16th Meeting of the 10th Board of Directors | October 17, 2024 | October 18, 2024 | Reviewed and approved the 'Proposal on Adjusting the Amount of Raised Funds to be Invested in Fundraising Projects' and 'Proposal on Adding Implementation Entities for Fundraising Projects' |
| The 17th Meeting of the 10th Board of Directors | October 25, 2024 | October 29, 2024 | Reviewed and approved the "Company Medium and Long-term Development Plan," "2024 Third Quarter Report," "Amendment to the 'Rules of Procedure for the Board's Strategy Committee'," "Proposal on Using Raised Funds to Replace Previously Invested Self-raised Funds," "Proposal on Using Bank Acceptance Bills to Pay for Fundraising Project Expenses and Equivalent Replacement with Raised Funds," "Proposal on Using Temporarily Idle Raised Funds for Cash Management and Depositing Raised Funds as Agreement Deposits," "Proposal on the Company Meeting the Conditions for Major Asset Disposal and Related-Party Transaction," "Proposal on the Company's Major Asset Disposal and Related-Party Transaction Plan," "Proposal on This Restructuring Constituting a Related-Party Transaction," "Proposal on 'Major Asset Disposal and Related-party Transaction Report (Draft) of FAW Jiefang Group Co., Ltd.' and its Summary," "Proposal on Signing the Relevant Agreements for This Restructuring," "Proposal on the Company's Restructuring Complying with Article 11 of the 'Administrative Measures for Major Asset Restructuring of Listed Companies," "Proposal on the Company's Restructuring Complying with Article 4 of the 'Regulatory Guidelines for Listed Companies No.9 - Regulatory Requirements for Listed Companies Planning and Implementing Major Asset Restructuring'," "Proposal on the Company's Restructuring Not Constituting a Restructuring Listing under Article 13 of the 'Administrative Measures for Major Asset Restructuring of Listed Companies'," "Proposal on the Completeness and Compliance of Legal |
| Procedures Performed for This Restructuring and the Validity of Legal Documents Submitted," "Proposal on the Company's Purchase and Sale of Assets in the 12 Months Prior to This Restructuring," "Proposal on Approving Related Audit Reports, Pro Forma Review Reports and Valuation Reports for this Restructuring," "Proposal on the Pricing Basis and Fair Reasonableness of This Restructuring," "Proposal on the Independence of the Valuation Institution, the Reasonableness of Valuation Assumptions, the Relevance of Valuation Methods to Valuation Objectives, and the Fairness of Valuation Pricing," "Proposal on the Dilution of Immediate Returns from This Restructuring and the Company's Remedial Measures," "Proposal on the Relevant Parties of the Company's Restructuring Not Having the Circumstances Specified in Article 12 of the 'Regulatory Guidelines for Listed Companies No.7 - Regulation of Abnormal Stock Trading Related to Major Asset Restructuring of Listed Companies'," "Proposal on the Explanation of Confidentiality Measures and Confidentiality System Adopted for This Restructuring," "Proposal on Requesting the Shareholders' Meeting to Authorize the Board of Directors and its Authorized Representatives to Handle Matters Related to This Restructuring," and "Proposal on Temporarily Not Convening a Shareholders' Meeting"; Received: "Communicating Key Policy Directives and Important Meeting Guidance from the CPC Central Committee, State Council, and State-owned Assets Supervision and Administration Commission"; Heard briefings on: "Report on Business Operations for the Third Quarter of 2024" and "Report on Implementation of Board Resolutions for the Third Quarter of 2024." | |||
| The 18th meeting of the 10th Board of Directors | November 10, 2024 | November 11, 2024 | Reviewed and approved the "Proposal on Confirming the Audit Reports, Valuation Reports and Revised Pro Forma Review Reports Related to |
| This Major Asset Disposal", "Proposal on the Cancellation of Certain Resolutions of the Third Extraordinary General Meeting of Shareholders in 2024", and "Proposal on Postponing the Third Extraordinary General Meeting of Shareholders in 2024" | |||
| The 19th meeting of the 10th Board of Directors | November 13, 2024 | November 14, 2024 | Reviewed and approved the "Proposal on Renewal of Employment of Financial Audit Institutions", "Proposal on Renewal of Employment of Internal Control Audit Institutions", "Proposal on Change of Registered Capital of the Company", "Proposal on Amending the 'Articles of Association'", and "Proposal on Convening the Fourth Extraordinary General Meeting of Shareholders in 2024" |
| The 20th Meeting of the 10th Board of Directors | December 20, 2024 | December 21, 2024 | Reviewed and approved the "Proposal on Organizational Structure Adjustment" and the "Proposal on the Acquisition of Equity in FAW (Africa) Investment Co., Ltd." |
| The 21st Meeting of the 10th Board of Directors | December 26, 2024 | December 27, 2024 | Reviewed and approved the "Proposal on the Election of the Company's Chairman", the "Proposal on the Appointment of the General Manager", and the "Proposal on Establishing a Market Value Management System" |
2. Attendance of Directors at the Meeting of the Board of Directors and Shareholders'Meeting
| Attendance of Directors at the Meeting of the Board of Directors and the Shareholders' Meeting | |||||||
| Name of Director | Number of Meetings of the Board of Directors to be Attended in the Reporting Period | Number of Meetings of the Board of Directors Attended in Person | Number of Meetings of the Board of Directors Attended via Communication | Number of Meetings of the Board of Directors Attended by Entrustment | Number of Absences from the Meeting of the Board of Directors | Failure to Attend the Meeting of the Board of Directors in Person for Two Consecutive Times or Not | Number of Shareholders' Meetings Attended |
| Wu Bilei | 13 | 4 | 5 | 4 | 0 | No | 1 |
| Li Sheng | 13 | 6 | 7 | 0 | 0 | No | 4 |
| Wang Hao | 10 | 4 | 5 | 1 | 0 | No | 1 |
| Zhang Guohua | 2 | 0 | 2 | 0 | 0 | No | 1 |
| Liu Yanchang | 13 | 6 | 7 | 0 | 0 | No | 4 |
| Deng Weigong | 11 | 6 | 5 | 0 | 0 | No | 5 |
| Chen Hua | 7 | 4 | 3 | 0 | 0 | No | 3 |
| Bi Wenquan | 4 | 1 | 2 | 1 | 0 | No | 1 |
| Han Fangming | 13 | 5 | 7 | 1 | 0 | No | 3 |
| Mao Zhihong | 13 | 6 | 7 | 0 | 0 | No | 5 |
| Dong Zhonglang | 13 | 6 | 7 | 0 | 0 | No | 4 |
Explanation on two consecutive absences from the Meeting of the Board of Directors in person:
none
3. Objections Raised by Directors on Relevant Matters of the CompanyWhether the directors raise objections to relevant matters of the Company
□Yes ?No
In the reporting period, the directors did not raise any objection to the Company's relevant matters.
4. Additional Description of Performance of Duties by Directors
Whether the directors' relevant suggestions to the Company have been adopted?Yes □NoExplanation of Directors on Adoption or Failure to Adopt Relevant Suggestions to the Company
In 2024, all directors of the Company worked in strict accordance with the Company Law,Securities Law, the Rules Governing the Listing of Shares on the Shenzhen Stock Exchange and theArticles of Association and other laws and regulations, and performed their duties faithfully and
diligently in a responsible attitude towards all shareholders. Actively attended the meetings of theBoard of Directors and the Shareholders' Meeting, carefully reviewed proposals, and put forwardprofessional opinions and suggestions on the development strategy, regular reports, relatedtransactions and other matters during the reporting period, so as to safeguard the legitimate rights andinterests of the Company and shareholders and ensure the standard operation and sustainabledevelopment of the Company.VII. Conditions of Special Committees under the Board of Directors in the Reporting Period
| Name of Committee | Members | Number of Meetings Held | Date | Contents | Important Comments and Suggestions Put Forward | Other Performance of Duties | Details of Objections |
| Audit and Risk Control Committee | Mao Zhihong, Han Fangming, Liu Yanchang. | 1 | March 22, 2024 | Reviewed the 2023 Financial Audit Report of the Company, the 2023 Annual Internal Control Evaluation Report, the 2023 Annual Rule of Law Implementation and Compliance Management Report, the 2023 Internal Audit Report and the 2023 Annual Internal Control Development Report. | All proposals were agreed. | N/A | |
| Mao Zhihong, Han Fangming, Deng Weigong | 4 | April 29, 2024 | Reviewed the "Report on the First Quarter of 2024" and "First Quarter Report on Internal Audit of 2024" | All proposals were agreed. | N/A | ||
| August 28, 2024 | Reviewed the "2024 Semi-annual Report and its Summary", | All proposals were | N/A |
| "Proposal on Asset Impairment Provisions for the First Half of 2024" and "2024 Internal Audit Semi-annual Report" | agreed. | ||||||
| October 25, 2024 | Reviewed the "2024 Third Quarter Report" and "Third Quarter Report on Internal Audit" | All proposals were agreed. | N/A | ||||
| November 13, 2024 | Reviewed the Proposal on Renewing the Engagement of the Financial Audit Institution and the Proposal on Renewing the Engagement of Internal Control Audit Institutions | All proposals were agreed. | N/A | ||||
| Remuneration and Appraisal Committee | Dong Zhonglang, Mao Zhihong, Liu Yanchang. | 2 | March 22, 2024 | Reviewed the Proposal on Unfulfilling Conditions for Releasing Restricted Sales in the Third Period of Releasing Restricted Shares Firstly Granted and Conditions for the Second Period of Releasing Restricted Shares Reserved for Granting in Phase I Restricted Share Incentive Plan and Repurchase and Cancellation of Some Restricted Shares | The proposal was approved. | N/A | |
| May 27, | The performance | All | N/A |
| 2024 | evaluation results of senior executives, performance assessment indicators of senior executives, and other topics were deliberated on. | proposals were agreed. | |||||
| Strategy Committee | Wu Bilei, Han Fangming, Dong Zhonglang | 1 | January 30, 2024 | Reviewed the "2024 Equity Investment Plan" and "2024 Fixed Asset Investment Plan" | All proposals were agreed. | N/A | |
| Li Sheng, Dong Zhonglang, Liu Yanchang Wu Bilei and Han Fangming respectively authorized Li Sheng and Dong Zhonglang to exercise voting rights on their behalf for work reasons. | 1 | April 29, 2024 | Reviewed the "Proposal on the Establishment of FAW Jiefang International Trade Co., Ltd." | The proposal was approved. | N/A | ||
| Wu Bilei, Li Sheng, Han Fangming, Dong Zhonglang, Liu | 3 | August 28, 2024 | Reviewed the "Mid-year Adjustment to the 2024 Equity Investment Plan" and "Mid-year Adjustment to the 2024 Fixed Assets Investment Plan", | All proposals were agreed. | N/A |
| Yanchang | and received the "Implementation of the Company's Strategic Plan" | |||||
| October 25, 2024 | Reviewed the "Company Medium and Long-term Development Plan," "Proposal on the Company Meeting the Conditions for Major Asset Disposal and Related-Party Transaction," "Proposal on the Company's Major Asset Disposal and Related-Party Transaction Plan," "Proposal on This Restructuring Constituting a Related-Party Transaction," "Proposal on 'FAW Jiefang Group Co., Ltd. Major Asset Disposal and Related-Party Transaction Report (Draft)' and its Summary," "Proposal on Signing the Relevant Agreements for This Restructuring," "Proposal on the Company's Restructuring Complying with Article 11 of the 'Administrative Measures for Major | All proposals were agreed. | N/A |
| Trading Related to Major Asset Restructuring of Listed Companies'," "Proposal on the Explanation of Confidentiality Measures and Confidentiality System Adopted for This Restructuring," and "Proposal on Requesting the Shareholders' Meeting to Authorize the Board of Directors and its Authorized Representatives to Handle Matters Related to This Restructuring." | ||||
| December 20, 2024 | Reviewed the "Proposal on the Acquisition of Equity in FAW (Africa) Investment Co., Ltd." | The proposal was approved. | N/A |
VIII. Working Conditions of the Board of SupervisorsWhether the Board of Supervisors has found any risks in the Company's supervision activities in thereporting period
□Yes ?No
The Board of Supervisors has no objection to the supervision matters in the reporting period.IX. Employees of the Company
1. Number, specialty composition and education level of employees
| Number of on-the-job employees of the parent company at the end of the reporting period (person) | 189 |
| Number of on-the-job employees of main subsidiaries at the | 19,627 |
| end of the reporting period (person) | |
| Total number of on-the-job employees at the end of the reporting period (person) | 19,816 |
| Total number of employees receiving compensation in the current period (person) | 20,803 |
| Number of retired employees whose expenses shall be borne by the parent company and major subsidiaries (person) | 12 |
| Specialty composition | |
| Category | Number (person) |
| Production personnel | 11,230 |
| Sales personnel | 1,237 |
| Technicians | 6,044 |
| Financial personnel | 347 |
| Administrative personnel | 958 |
| Total | 19,816 |
| Education background | |
| Category | Number (person) |
| Doctor's degree | 62 |
| Master's degree | 1,756 |
| Bachelor's degree | 8,357 |
| Junior college degree | 4,338 |
| High school and below | 5,303 |
| Total | 19,816 |
2. Compensation policy
In 2024, the Company remains committed to prioritizing value creators, continuously enhancingincentive mechanisms, emphasizing value orientation, further stimulating organizational andemployee vitality, and supporting the Company's business development.First, improving compensation incentive mechanisms to energize employees: Emphasizingvalue orientation based on role responsibilities across different domains, implementing customizedstrategies for each business unit, establishing a total compensation management mechanism withclear direction, explicit adjustments, and appropriate delegation, fully leveraging compensation as amotivational tool; Implementing annual bonuses that favor value creators; Offering special rewards
for cost efficiency initiatives and technological innovation, encouraging employees to reduce costs,increase efficiency, and drive innovation; Implementing annual salary adjustments based onperformance and completion of training requirements, motivating high-performing and highlycapable employees to create greater value for the Company; Employing multiple approaches toachieve mutual growth of employees and the Company.Second, standardizing employee benefits management, delivering benefit entitlements, andensuring protection: The Company legally signs labor contracts with employees, processes and paysvarious social insurance contributions including basic pension, basic medical insurance, work injuryinsurance, unemployment insurance, and housing provident fund, while actively promotingsupplementary pension and medical insurance systems; Establishing comprehensive welfare systems,providing holiday allowances, heating subsidies, living allowances for single employees, heat-reliefallowances and other welfare benefits according to established standards, protecting employees'legitimate rights and interests across multiple dimensions. The expenses for the Company's regularretirees are incorporated into the social security system, eliminating the need for the Company to bearpension expenses for regular retirees, though it continues to bear expenses for senior retired cadres.
3. Training plan
In 2024, employee training and development work aims to support the Company'stransformation and development, achievement of annual business objectives, and resolution ofbusiness pain points and challenges, implementing targeted and systematic talent developmentprograms. In terms of leadership, conducting Navigator Program, Summit Achievers Program,Dragon Gate Program and other training initiatives; In terms of professional capabilities, providingtraining on digital transformation, IPD (Integrated Product Development) transformation, new energy,overseas market expansion, etc.; In terms of general capabilities, delivering training on componentproduct knowledge and automotive structure, etc.; In terms of technical skills, conducting training onstandardized operations, on-site problem solving, etc. A total of more than 8,100 various trainingsessions were conducted throughout the year.
4. Labor outsourcing
□Applicable ?Not applicable
X. Profit Distribution and Transfer from Capital Reserve to Share Capital of the CompanyProfit distribution policies in the reporting period, especially the formulation, implementation oradjustment of cash dividend policy?Applicable □Not applicable
The Company's 2023 Profit Distribution Plan was reviewed and approved by the 11th Meetingof the 10th Board of Directors and the 2023 Annual Shareholders' Meeting, and the "Announcementon the Implementation of 2023 Annual Equity Distribution" was disclosed on June 15, 2024. The ex-rights and ex-dividend date for this profit distribution is: June 24, 2024.
| Special Description of Cash Dividend Policy | |
| Whether the provisions of the Articles of Association or the requirements of resolutions of the Shareholders' Meeting are met: | Yes |
| Whether the dividend standard and proportion are definite and clear: | Yes |
| Whether the relevant decision-making procedures and mechanisms are complete: | Yes |
| Whether the independent directors have fulfilled their duties and played their due roles: | Yes |
| In case no cash dividends are distributed, we shall disclose the specific reasons and the subsequent actions to be taken to improve the investor's return level: | Yes |
| Whether the minority shareholders have the opportunity to fully express their opinions and demands, and whether their legitimate rights and interests are fully protected: | Yes |
| Whether the conditions and procedures are compliant and transparent when the cash dividend policy is adjusted or changed: | N/A |
The Company made profits in the reporting period, and the parent company had a positive profitavailable for shareholders, but no cash dividend distribution plan was proposed
□Applicable ?Not applicable
Profit Distribution and Transfer from Capital Reserve to Share Capital in the Reporting Period?Applicable □Not applicable
| Number of bonus shares given per 10 shares (share) | 0 |
| Number of distributed dividends per 10 shares (Yuan) (tax inclusive) | 0.50 |
| Share capital base for distribution plan (share) | 4,922,371,176 |
| Amount of cash dividends (Yuan) (tax inclusive) | 246,118,558.80 |
| Amount of cash dividends paid by other means (such as share repurchase) (Yuan) | 0.00 |
| Total amount of cash dividends (including by other means) (Yuan) | 246,118,558.80 |
| Distributable profits (Yuan) | 7,370,940,980.89 |
| Proportion of total amount of cash dividends (including by other means) in the total amount for profit distribution | 100% |
| Cash dividends | |
| Others | |
| Note on details of schedule of profit distribution or transfer of capital reserve to equity | |
| Grant Thornton Certified Public Accountants (Special General Partnership) confirmed after audit that the Company's parent company realized a net profit of 1,090,353,013.63 yuan in 2024, plus the undistributed profit of 7,083,209,394.76 yuan in the previous year, and less the provision for statutory surplus reserve of 109,035,301.36 yuan and distributed profits of 693,579,557.10 yuan accrued in the current year, the actual profit available for distribution for shareholders this year is 7,370,940,980.89 yuan. The 2024 annual profit distribution plan of the Company is as follows: Based on the 4,922,371,176 shares of the Company, a cash dividend of 0.5 yuan (tax inclusive) will be distributed to all shareholders for every 10 shares they hold; the cash dividends to be distributed will reach 246,118,558.80 yuan (tax inclusive), and the remaining undistributed profits will be carried forward to the next accounting year. The Company does not convert its capital reserves into share capital. For any change to the total share capital of the Company due to the equity incentive plan before the implementation of the distribution plan, the cash dividend of 0.50 yuan (tax inclusive) will be distributed to all shareholders per 10 shares based on the total share capital registered on the date of record when the profit distribution plan is implemented in the future, and the specific amount will be subject to the actual distribution. This distribution plan is subject to the review and approval of the 2024 annual shareholders' meeting before implementation. | |
XI. Implementation of the Company's Equity Incentive Plan, Employee Stock OwnershipPlan or Other Employee Incentive Measures?Applicable □Not applicable
1. Equity incentive
(1) On November 13, 2020, the Company held the 9th meeting of the 9th Board of Directors andthe 8th meeting of the 9th Board of Supervisors, respectively, to deliberate and adopt the RestrictedShare Incentive Plan of FAW JIEFANG GROUP CO., LTD. (Draft) and Its Abstract and otherproposals. The relevant proposals were deliberated and adopted at the First ExtraordinaryShareholders' Meeting of 2021 held by the Company on January 11, 2021.
(2) On January 15, 2021, the Company held the 12th Session of the 9th Meeting of the Board ofDirectors and the 11th Session of the 9th Meeting of the Board of Supervisors, respectively, andreviewed and approved the Proposal on Adjusting the List of the First Batch of Incentive Objects andthe Number of Grants of the First Restricted Share Incentive Plan and the Proposal on GrantingRestricted Shares to the Incentive Objects of the First Restricted Share Incentive Plan for the FirstTime. On February 1, 2021, the Company disclosed the Announcement on the Completion of theFirst Grant Registration of the Phase I Restricted Share Incentive Plan, in which the restricted sharesin the incentive plan were first granted to 319 persons, totaling 40.9877 million shares, with a grantprice of 7.54 yuan per share. The restricted shares granted were listed on February 5, 2021.
(3) On December 9, 2021, the Company held the 20th meeting of the 9th Board of Directors andthe 19th meeting of the 9th Board of Supervisors, respectively, to deliberate and adopt the Proposalon Granting Reserved Part of Restricted Shares in the Phase I Restricted Share Incentive Plan toIncentive Objects, Proposal on Adjusting the Repurchase Price of Restricted Shares in the Phase IRestricted Share Incentive Plan, Proposal on Repurchase and Cancellation of Partial RestrictedShares in the Phase I Restricted Share Incentive Plan and other relevant proposals. On January 6,2022, the Company disclosed the Announcement on the Completion of Registration of the Grant ofReserved Part of Restricted Shares in Phase I Restricted Share Incentive Plan, in which reserved partof restricted shares in the incentive plan was granted to 33 persons, totaling 3.7216 million shares,with a grant price of 6.38 yuan per share. The restricted shares granted were listed on January 10,2022. On January 17, 2022, the Company disclosed the Announcement on the Completion of theRepurchase and Cancellation of Some Restricted Shares, in which all restricted shares were granted
to 2 incentive objects but not yet released, totaling 260,857 shares, with a repurchase price of 7.04yuan per share.
(4) On August 29, 2022, the Company held the 26th meeting of the 9th Board of Directors andthe 23rd meeting of the 9th Board of Supervisors, respectively, to deliberate and adopt the Proposalon Adjusting the Repurchase Price of Restricted Shares in the Phase I Restricted Share Incentive Planand Proposal on Repurchase and Cancellation of Partial Restricted Shares in the Phase I RestrictedShare Incentive Plan. On September 16, 2022, the relevant repurchase and cancellation proposalswere deliberated and adopted at the Second Extraordinary Shareholders' Meeting of 2022 held by theCompany. On November 14, 2022, the Company disclosed the Announcement on the Completion ofthe Repurchase and Cancellation of Some Restricted Shares, in which all or some restricted sharesgranted to 6 incentive objects but not yet released were repurchased and canceled, totaling 789,711shares, with a repurchase price of 6.39 yuan/share.
(5) On October 28, 2022, the Company held the 28th Meeting of the 9th Board of Directors andthe 24th Meeting of the 9th Board of Supervisors, respectively, to deliberate and approve the Proposalon Repurchase and Cancellation of Partial Restricted Shares in the Phase I Restricted Share IncentivePlan. The Proposal was subsequently deliberated and approved at the 3rd Extraordinary Shareholders'Meeting of the Company in 2022. It was agreed to repurchase and cancel a total of 1,359,247restricted stocks, either in full or in part, that was granted but not yet released from restrictions to theoriginal 11 incentive recipients. On January 17, 2023, The Company issued the Announcement onCompletion of Repurchase and Cancellation of Some Restricted Shares on CNINFO(http://www.cninfo.com.cn).
(6) On December 15, 2022, the Company held the 30th meeting of the 9th Board of Directorsand the 26th meeting of the 9th Board of Supervisors, respectively, to deliberate and approve theProposal on the Achievement of Unlocking Conditions in the First Release Period of the RestrictedShares Firstly Granted in the Phase I Restricted Incentive Plan, agreeing that the Company handledthe unlocking of 13,042,347 shares of 311 incentive objects meeting the unlocking conditions duringthe first release period of restricted shares granted for the first time in accordance with the relevantprovisions of the restricted share incentive plan. On February 3, 2023, the Company disclosed theIndicative Announcement on the Listing and Circulation of Unlocked Shares in the First ReleasePeriod of the Restricted Shares Firstly Granted in the Phase I Restricted Share Incentive Plan onCNINFO (http://www.cninfo.com.cn), and the unlocked restricted shares will be listed and circulated
on February 6, 2023. At the 30th Meeting of the 9th Board of Directors and the 26th Meeting of the9th Board of Supervisors, the Company reviewed and approved the Proposal on the Repurchase andCancellation of Partial Restricted Shares in the Phase I Restricted Share Incentive Plan and agreed torepurchase and cancel all or part of 723,435 restricted stock that had been granted to the original sixincentive targets but not lifted the restriction for sales. On April 28, 2023, the Company issued theAnnouncement on Completion of Repurchase and Cancellation of Some Restricted Shares onCNINFO (http://www.cninfo.com.cn).
(7) On March 31, 2023, the Company held the 32nd meeting of the 9th Board of Directors andthe 28th meeting of the 9th Board of Supervisors respectively, deliberated and approved the Proposalon Unsuccessful Lifting of Conditions of the Second Release Period First Granted by the Phase IRestricted Share Incentive Plan for Releasing the Restricted Sales and of Conditions of the FirstRelease Period Reserved by the Phase I Restricted Share Incentive Plan for Releasing the RestrictedSales and Repurchase and Cancellation of Some Restricted Shares, agreeing to repurchase and cancel327 restricted shares of incentive objects that do not meet the release conditions. The total number ofshares repurchased was 13,909,890. The Proposal was deliberated and approved at the Company's2022 Annual Shareholders' Meeting held on April 24, 2023. On June 30, 2023, the Company issuedthe Announcement on Completion of Repurchase and Cancellation of Some Restricted Shares onCNINFO (http://www.cninfo.com.cn).
(8) On April 27, 2023, the Company held the 2nd meeting of the 10th Board of Directors andthe 2nd meeting of the 10th Board of Supervisors, respectively, to deliberate and approve the Proposalon Lifting the Trading Restrictions of Partial Restricted Shares. A total of 4 incentive objects met theconditions for lifting the trading restrictions this time, and 64,954 shares were lifted. On May 15,2023, the Company issued the Prompt Announcement on Lifting Sales Restrictions and ListingCirculation of Partial Restricted Shares on CNINFO (http://www.cninfo.com.cn), and the unlockedrestricted shares were listed and circulated on May 16, 2023.
(9) On August 29, 2023, the Company held the 5th Meeting of the 10th Board of Directors andthe 4th Meeting of the 10th Board of Supervisors, respectively, and deliberated and adopted theProposal on the Repurchase and Cancellation of Partial Restricted Shares in the Phase I RestrictedShare Incentive Plan, which was reviewed and approved at the Third Extraordinary Shareholders'Meeting in 2023, and agreed to repurchase and cancel all or part of 333,855 restricted stocks that hadbeen granted to the original eight incentive targets but had not been lifted the restriction for sales. On
November 29, 2023, the Company issued the Announcement on Completion of Repurchase andCancellation of Some Restricted Shares on CNINFO (http://www.cninfo.com.cn).
(10) On November 20, 2023, the Company held the 7th Meeting of the 10th Board of Directorsand the 6th Meeting of the 10th Board of Supervisors respectively, and deliberated and adopted theProposal on the Repurchase and Cancellation of Partial Restricted Shares in the Phase I RestrictedShare Incentive Plan, which was reviewed and approved at the Fourth Extraordinary Shareholders'Meeting in 2023, and agreed to repurchase and cancel all or part of 512,807 restricted stocks thathave been granted to 10 incentive targets but have not been lifted the restriction for sales. On March28, 2024, the Company issued the Announcement on Completion of Repurchase and Cancellation ofSome Restricted Shares on CNINFO (http://www.cninfo.com.cn).
(11) On March 28, 2024, the Company held the 11th Meeting of the 10th Board of Directors andthe 10th Meeting of the 10th Board of Supervisors, respectively, and reviewed and approved theProposal on Unfulfilling Conditions for Releasing Restricted Share for the Third Release Period ofRestricted Shares Firstly Granted and the Second Release Period of Restricted Shares Reserved forGranting in Phase I Restricted Share Incentive Plan and Repurchase and Cancellation of SomeRestricted Shares, and agreed to buy back and cancel the restricted stocks of 299 objects failing tofulfill the conditions for lifting the restriction for sales, 12,621,954 shares in total. On June 15, 2024,the Company issued the Announcement on Completion of Repurchase and Cancellation of SomeRestricted Shares on CNINFO (http://www.cninfo.com.cn).
(12) On March 28, 2025, the Company held the 24th Meeting of the 10th Board of Directors andthe 20th Meeting of the 10th Board of Supervisors, respectively, which reviewed and approved the"Proposal on Unfulfilling Conditions for Releasing Restricted Share for the Third Release Period ofRestricted Shares Reserved for Granting in Phase I Restricted Share Incentive Plan and Repurchaseand Cancellation of Some Restricted Shares and Adjustment of Repurchase Price," agreeing torepurchase and cancel the restricted stocks of 30 incentive participants who did not satisfy the releaseconditions, totaling 1,090,201 shares.For details of the above proposals, please refer to the relevant announcements published by the Company inSecurities Times, China Securities Journal and CNINFO (http://www.cninfo.com.cn).
Equity Incentives Obtained by Directors and Senior Executives of the Company?Applicable □Not applicable
Unit: share
| Name | Position | Number of Stock Options Held at the Beginning of the Year | Number of Newly Granted Stock Options in the Reporting Period | Number of Exercisable Shares in the Reporting Period | Number of Exercised Shares in the Reporting Period | Exercise Price of Exercised Shares in the Reporting Period (Yuan/share) | Number of Stock Options Held at the End of the Period | Market Price at the End of the Reporting Period (Yuan/share) | Number of Restricted Shares Held at the Beginning of the Period | Number of Unlocked Shares in the Current Period | Number of Newly Granted Restricted Shares in the Reporting Period | Grant Price of Restricted Shares (Yuan/share) | Number of Restricted Shares Held at the End of the Period |
| Li Sheng | Chairman of the Board | 8.20 | 129,161 | 65,544 | 7.54 | 63,617 | |||||||
| Wang Jianyu | Deputy General Manager | 8.20 | 129,161 | 65,544 | 7.54 | 63,617 | |||||||
| Wang Jianxun | Secretary of the Board of Directors | 8.20 | 129,161 | 65,544 | 7.54 | 63,617 | |||||||
| Total | -- | 0 | 0 | 0 | 0 | -- | 0 | -- | 387,483 | 196,632 | 0 | -- | 190,851 |
| Remarks | In view of the unfulfilled performance assessment targets set for the Third Release Period of the First Grants and the Second Release Period of the Reserved Grants under the Company's Phase I Restricted Share Incentive Plan, the restricted shares that do not satisfy the release conditions for relevant incentive participants, including the | ||||||||||||
aforementioned personnel, would be repurchased and cancelled. The relevant proposals have been reviewed andapproved by the 11th Meeting of the 10th Board of Directors and the 2023 Annual Shareholders' Meeting, and the"Announcement on Completion of Repurchase and Cancellation of Some Restricted Shares" was disclosed on June 15,2024.
Evaluation mechanism and incentives of senior executivesThe Company has formulated corresponding plans for the evaluation and incentive mechanism of senior executives, and implemented a fairand transparent performance management system and an incentive mechanism that links compensation levels with both Company performanceand individual performance. The Compensation and Evaluation Committee of the Board of Directors diligently fulfills its responsibilities byconducting comprehensive assessments of the evaluation results.
2. Implementation of employee stock ownership plan
□Applicable ?Not applicable
3. Other employee incentives
□Applicable ?Not applicable
XII. Establishment and Implementation of Internal Control System in the Reporting Period
1. Construction and implementation of internal control
Strengthen architecture guidance and optimize top-level design. Based on marketingtransformation, major manufacturing organizational transformation, and process construction andoperations in various business areas, the Company completed the refresh and release of 15 L1-levelprocess architectures, including 15 L1-process domains, nearly 120 L2-process groups, and more than400 L3-processes, guiding the Company to continuously advance process-oriented organizationalconstruction and digital intelligent transformation.Promote process construction and review updates according to the architecture. Combined withactual business needs, prioritizing urgent requirements, supplemented more than 240 process, system,and operational guidance documents; Improved business rules, updated and optimized more than 470documents, abolished 280 documents, and enhanced document applicability; Conducted more than40 company-level documents reviews to improve document quality.Conduct process KCP (Key Control Point) monitoring. Combined with industry practices,established a risk-oriented and KCP-centered internal control system, based on internal controlguidelines, focused on high-risk businesses and key processes, organized monitoring through processOwner self-inspection and process management department audits, timely identified key issuesaffecting the Company's operations, completed more than 90 KCP monitoring items in 2024,identified and planned to address more than 20 issues requiring rectification, ensuring effective riskcontrol and improving business operational efficiency.
2. Specific information on major internal control deficiencies found during the reportingperiod
□Yes ?No
XIII. Management and Control of Subsidiaries by the Company in the Reporting Period
| Company Name | Integration Plan | Integration Progress | Problems in Integration | Solutions Taken | Resolution Progress | Follow-up Resolution Plan |
| FAW (Africa) Investment Co., Ltd. | The Company holds 55% of its equity; No change to the original company's business operations and personnel scale | Completed | N/A | N/A | N/A | N/A |
| Jiefang Motors Tanzania Ltd. | The Company holds 90.91% of its equity, and the Company's subsidiary, Jiefang Group International, holds 9.09% of its equity; no change to the original company's business operations and personnel scale | Completed | N/A | N/A | N/A | N/A |
XIV. Internal Control Evaluation Report or Internal Control Audit Report
1. Internal Control Evaluation Report
| Disclosure Date of Full Text of Internal Control Evaluation Report | March 29, 2025 |
| Disclosure Index of Full Text of Internal Control Evaluation Report | http://www.cninfo.com.cn/new/disclosure/stock?stockCode=000800&orgld=gssz0000800&sjstsBond=false#latestAnnouncement |
| Proportion of the Total Assets of the Unit Included in the Evaluation Scope to the Total Assets in the Company's Consolidated Financial Statements | 100.00% |
Proportion of the UnitOperating IncomeIncluded in the EvaluationScope to the OperatingIncome in the Company'sConsolidated Financial
| Statements | |||
| Deficiency Identification Standard | |||
| Category | Financial report | Non-financial Report | |
| Qualitative Criteria | Major deficiencies: The accounting firm issues the audit report with a disclaimer of opinion or an adverse opinion of the Company. Significant deficiencies: The accounting firm issues the audit report with a qualified opinion of the Company; the accounting firm issues the audit report with a disclaimer of opinion or an adverse opinion of the Company. General deficiencies: The accounting firm issues the audit report with a qualified opinion to the Company. | Major deficiencies: fraudulent behaviors of directors, supervisors or corporate leaders of the Company; serious violation of national laws, regulations or normative documents by the Company; violation of decision-making procedures by the Company, resulting in major decision-making errors. Significant deficiencies: Principal responsible persons of various units within the Company engage in fraudulent activities; Affiliated companies seriously violate national laws, regulations or normative documents; Affiliated companies violate decision-making procedures, resulting in decision-making errors. General deficiencies: fraudulent behaviors of other personnel of the Company; other control deficiencies that do not constitute major or significant deficiencies. | |
| Quantitative Criteria | Identification criteria for internal control deficiencies related to assets and liabilities Major deficiencies: misstated (including potential) amount ≥ 5‰ of the total assets at the end of the consolidated balance sheet of the previous year; Significant deficiencies: 3‰ of the total assets | It is determined based on the amount of asset losses caused by internal control failure, and the standards are as follows: Major deficiencies: causing asset losses of 10 million yuan and more; | |
| at the end of the consolidated balance sheet of the previous year ≤ misstated (including potential) amount < 5‰ of the total assets at the end of the consolidated balance sheet of the previous year; General deficiencies: other control deficiencies except for major and significant deficiencies. Identification criteria for internal control deficiencies related to profits Major deficiencies: misstated (including potential) amount ≥ 5‰ of the absolute value of the pre-tax profit in the consolidated income statement of the previous year of the Company; Significant deficiencies: 3‰ of the absolute value of the pre-tax profit in the consolidated income statement of the previous year of the Company ≤ misstated (including potential) amount < 5‰ of the absolute value of the pre-tax profit in the consolidated income statement of the previous year of the Company; General deficiencies: Other control deficiencies except for major and significant deficiencies. | Significant deficiencies: causing asset losses of less than 10 million yuan and greater than or equal to 5 million yuan; Minor deficiencies: causing asset losses of less than 5 million yuan. | ||
| Number of Major Deficiencies in Financial Report (Nr.) | 0 | ||
| Number of Major Deficiencies in Non-financial Report (Nr.) | 0 | ||
| Number of Significant Deficiencies in Financial Report (Nr.) | 0 | ||
| Number of Significant Deficiencies in Non-financial Report (Nr.) | 0 | ||
2. Internal Control Audit Report
?Applicable □Not applicable
| Deliberations Paragraph in Internal Control Audit Report |
| In our opinion, FAW Jiefang maintained effective internal control over financial reporting in all material aspects as of December 31, 2024 in accordance with the Basic Specification for |
| Enterprise Internal Control and relevant regulations. | |
| Disclosure of Internal Control Audit Report | Disclosure |
| Disclosure Date of Full Text of Internal Control Audit Report | March 29, 2025 |
| Disclosure Index of Full Text of Internal Control Audit Report | http://www.cninfo.com.cn/new/disclosure/stock?stockCode=000800&orgld=gssz0000800&sjstsBond=false#latestAnnouncement |
| Opinion Type of Internal Control Audit Report | Standard unqualified opinion |
| Whether there are major deficiencies in the non-financial report | No |
Whether the accounting firm issues the internal control audit report with a non-standard opinion
□Yes ?No
Whether the internal control audit report issued by the accounting firm is consistent with the self-evaluation report of the Board of Directors?Yes □NoXV. Rectification of Problems Found in the Self-inspection of the Special Action forGovernance of Listed Companies: none
Section V Environmental and Social Responsibilities
I. Major Environmental Protection IssuesWhether the listed company and its subsidiaries are key pollutant-discharging entities announced bythe environmental protection authority?Yes □NoEnvironmental protection-related policies and industry standardsThe Company has always emphasized environmental protection throughout its production andoperation processes, strictly complying with the Environmental Protection Law of the People'sRepublic of China, the Law of the People's Republic of China on Environmental Impact Assessment,the Regulations on Environmental Protection Management of Construction Projects, the Law of thePeople's Republic of China on the Prevention and Control of Atmospheric Pollution, the Law of thePeople's Republic of China on the Prevention and Control of Water Pollution, the Law of the People'sRepublic of China on the Prevention and Control of Noise Pollution, the Law of the People's Republicof China on the Prevention and Control of Environmental Pollution by Solid Wastes, the Law of thePeople's Republic of China on the Prevention and Control of Soil Pollution, the Law of the People'sRepublic of China on the Promotion of Clean Production, the Measures for the Administration ofPollutant Discharge Permits, the Regulations on Pollutant Discharge Permit Management, theEnvironmental Protection Tax Law of the People's Republic of China, the Measures for theAdministration of the List of Key Units of Environmental Supervision, the Measures for theAdministration of Legal Disclosure of Environmental Information of Enterprises, the Measures forthe Administration of Hazardous Waste Transfer and other relevant laws and regulations; and theIntegrated Emission Standard of Air Pollutants (GB16297-1996), the Integrated WastewaterDischarge Standard (GB8978-1996), the Emission Standard of Industrial Enterprises Noise atBoundary (GB12348-2008), the Standard for Pollution Control on Hazardous Waste Storage(GB18597-2023), the Technical Guidelines for Deriving Hazardous Waste Management Plans andRecords (HJ1259-2022), the Technical Specifications for Acceptance of Environmental ProtectionFacilities for Completed Construction Projects - Automobile Manufacturing Industry (HJ 407-2021),National Hazardous Waste Inventory, National Pollution Prevention and Control Technical GuidanceDirectory and other national and industry standards.
Administrative licensing for environmental protection
The Company and all its branches and subsidiaries have fulfilled the environmental impactassessment and other environmental protection administrative licensing procedures as required forconstruction projects and have strictly implemented the "Three Simultaneities" requirement -ensuring environmental protection facilities are simultaneously designed, constructed, and put intooperation with the main project. All key pollutant discharge units have obtained pollutant dischargepermits in accordance with legal requirements and strictly implement the pollutant discharge permitmanagement system.
| S/N | Name of Unit | Pollutant Discharge Permit No. | Validity Period of Pollution Discharge Permit |
| 1 | Truck Factory of FAW Jiefang Automotive Co., Ltd | 91220101743028725R001R | December 30, 2022 to December 29, 2027 |
| 2 | Chengdu Branch of FAW Jiefang Automotive Co., Ltd. | 91510114746407720B001V | July 16, 2022 to July 15, 2027 |
| 3 | Sichuan Branch of FAW Jiefang Automotive Co., Ltd. | 91510681MABQ7AKG4Y001V | July 21, 2023 to July 20, 2028 |
| 4 | Transmission Branch (Transformation Factory) of FAW Jiefang Automotive Co., Ltd. | 91220101571131661N001Q | September 18, 2024 to September 17, 2029 |
| 5 | Transmission Branch (Axle New Factory) of FAW Jiefang Automotive Co., Ltd. | 91220101571131661N003V | May 21, 2024 to May 20, 2029 |
| 6 | Changchun Intelligent Bus Branch of FAW Jiefang Automotive Co., Ltd. | 91220108MA170MRB74001V | January 9, 2023 to January 8, 2028 |
| 7 | FAW Jiefang (Qingdao) Automotive Co., Ltd. | 91370200163567343M001V | December 29, 2023 to December 28, 2028 |
| 8 | Engine Branch of FAW Jiefang Automotive Co., Ltd. | 912201017561635719001Q | December 27, 2022 to December 26, 2027 |
| 9 | Wuxi Diesel Engine Works of FAW Jiefang Automotive Co., Ltd. | 91320200748159222H001Q | August 30, 2024 to August 29, 2029 |
| 10 | Wuxi Diesel Engine Huishan Factory of FAW Jiefang Automotive Co., Ltd. | 91320206330969017N001C | Junuary 19, 2023 to Junuary 18, 2028 |
| 11 | FAW Jiefang Dalian Diesel Engine Co., Ltd. | 91210213717880308K001U | March 14, 2024 to March 13, 2029 |
Industry Emission Standards and Specific Conditions of Pollutant Discharge Involved in Production and Operation Activities
| Name of Company or Subsidiary | Types of Main Pollutants and Specific Pollutants | Names of Main Pollutants and Specific Pollutants | Discharge Mode | Number of Discharge Outlets | Distribution of Discharge Outlets | Discharge concentration/intensity | Enforced pollutant discharge standard | Total Discharge | Total Approved Discharge | Excessive Discharge |
| Truck Factory of FAW Jiefang Automotive Co., Ltd | Wastewater | COD | Continuous or intermittent discharge | 4 | One for the frame, cab and non-metal coating, respectively, and one for general domestic sewage outlet | 183.51mg/L | 800mg/L | 28.2281 t | 630.104 t | No excessive discharge |
| Exhaust gas | Non-methane hydrocarbon | Continuous discharge during production | 71 | Frame, cab, roof of non-metallic coating workshop | 3.8941mg/m? | 120mg/m? | 69.8924 t | 346.1955 t | No excessive discharge | |
| Chengdu Branch of FAW Jiefang Automotive Co., Ltd. | Wastewater | COD | Intermittent discharge | 1 | Southeast of the Company | 19.469mg/L | 500mg/L | 0.002 t | 21.3 t | No excessive discharge |
| Exhaust gas | Non-methane hydrocarbon | Continuous discharge during production | 1 | Roof of coating workshop | 2.262mg/m? | 60mg/m? | 12.527 t | 75.91 t | No excessive discharge | |
| Sichuan Branch of FAW Jiefang Automotive Co., Ltd. | Wastewater | COD | Intermittent discharge | 1 | Northwest corner of the Company | 55.148mg/L | 500mg/L | 0.6103 t | 40.8469 t | No excessive discharge |
| Exhaust gas | Non-methane hydrocarbon | Continuous discharge during production | 15 | Roof of Painting Workshop and General Assembly Workshop | 7.419mg/m? | 60mg/m? | 10.576 t | 16.5208 t | No excessive discharge | |
| Transmission Branch (Transformation Factory) of FAW | Wastewater | COD | Intermittent discharge | 3 | One at the northwest corner of workshop No.5, one at the | 19mg/L | 500mg/L | 1.1778 t | 10 t | No excessive discharge |
| Jiefang Automotive Co., Ltd. | southwest corner of workshop No.4, and one at the effluent outlet of the wastewater treatment station | |||||||||
| Exhaust gas | Non-methane hydrocarbon | Continuous discharge during production | 7 | 7 for workshop No.5 | 1.6mg/m? | 120mg/m? | 0.5833 t | -- | No excessive discharge | |
| Transmission Branch (Axle Factory) of FAW Jiefang Automotive Co., Ltd. | Wastewater | COD | Intermittent discharge | 3 | One each for No.1, No.2 and No.3 workshops | 21mg/L | 500mg/L | 1.2089 t | -- | No excessive discharge |
| Exhaust gas | Non-methane hydrocarbon | Continuous discharge during production | 2 | One each for No.1 and No.3 workshops | 1.61mg/m? | 120mg/m? | 10.5369 t | -- | No excessive discharge | |
| Changchun Intelligent Bus Branch of FAW Jiefang Automotive Co., Ltd. | Wastewater | COD | Intermittent discharge | 1 | South gate of sewage treatment station | 54.89mg/L | 500mg/L | 1.7492 t | 4.575 t | No excessive discharge |
| Exhaust gas | Non-methane hydrocarbon | Continuous discharge during production | 12 | Roof of coating and welding workshop of the Company | 34.36mg/m? | 120mg/m? | 11.2608 t | 49.5 t | No excessive discharge | |
| FAW Jiefang (Qingdao) Automotive Co., Ltd. | Wastewater | COD, ammonia nitrogen | Continuous or intermittent discharge | 6 | Outside the sewage treatment station of the Company | COD：47.1mg/L Ammonia nitrogen: 1.04 mg/L | COD：500mg/L； Ammonia nitrogen: 45mg/L | COD： 14.9 t; Ammonia nitrogen: 0.2988 t | COD： 88.79 t; Ammonia nitrogen: 5.11 t | No excessive discharge |
| Exhaust gas | Non-methane hydrocarbon | Continuous discharge during production | 87 | Roof of each workshop of the Company | 5.09 mg/m? | 30mg/m? | 62.19 t | 164.98 t | No excessive discharge | |
| Engine Branch of FAW Jiefang Automotive Co., Ltd. | Exhaust gas | Non-methane hydrocarbon | Intermittent discharge | 3 | Workshop roof | 0.67mg/m? | 120mg/m? | 0.0351 t | -- | No excessive discharge |
| Wuxi Diesel Engine Works of FAW | Wastewater | COD | Continuous discharge | 3 | One for the west gate and two for | 23mg/L | 500mg/L | 8.13 t | 243 t | No excessive |
| Jiefang Automotive Co., Ltd. | the south gate | discharge | ||||||||
| Exhaust gas | Nitrogen oxide, non-methane hydrocarbon | Continuous discharge during production | 13 | Three for the assembly workshop, five for the R&D Department, two for the QA Department, two for the processing workshop and one for the hazardous waste warehouse | NOx, 76mg/m? Non-methane hydrocarbons, 2.46mg/m? | NOx, 200mg/m? Non-methane hydrocarbons, 60 mg/m3 | NOx, 22.59 t VOCs 0.08 t | NOx, 26.08 t VOCs 1.77 t | No excessive discharge | |
| Wuxi Diesel Engine Huishan Factory of FAW Jiefang Automotive Co., Ltd. | Wastewater | COD | Continuous discharge | 1 | North Gate 1 | 46mg/m? | 500mg/m? | 4.17 t | 79.15 t | No excessive discharge |
| Exhaust gas | Nitrogen oxide, non-methane hydrocarbon | Continuous discharge during production | 6 | Joint workshop | NOx, 39mg/m? Non-methane hydrocarbons, 1.07mg/m? | NOx, 200mg/m? Non-methane hydrocarbons, 60 mg/m3 | NOx, 10.70 t VOCs 0.7 t | NOx, 26.137 t VOCs 4.546 t | No excessive discharge | |
| FAW Jiefang Dalian Diesel Engine Co., Ltd. | Wastewater | COD, ammonia nitrogen | Continuous or intermittent discharge | 1 | Outside the sewage treatment station of the Company | COD: 43.9mg/L Ammonia nitrogen: 8.04mg/L | COD: 300mg/L Ammonia nitrogen: 30mg/L | COD: 3.634 t Ammonia nitrogen: 0.6416 t | COD: 18.398 t; Ammonia nitrogen: 2.984 t | No excessive discharge |
| Exhaust gas | Nitrogen oxide, non-methane hydrocarbon | Continuous discharge during production | 5 | Roof of the Company's workshop | NOx, 98mg/m? Volatile organic, 4.911 mg/m3 | NOx, 240mg/m? Volatile organic compounds, 60 mg/m3; | Nitrogen oxides: 2.881 t Volatile organic compounds, 2.772 t | Nitrogen oxides: 15.143 t Volatile organic compounds, 7.547 t | No excessive discharge |
Disposal of pollutants
(I) Wastewater treatment:
1. The Truck Factory of FAW Jiefang Automotive Co., Ltd. has three sewage treatment stationscurrently, namely, a frame workshop sewage treatment station, a coating workshop sewage treatmentstation and a non-metallic coating sewage treatment station. ① The frame sewage treatment stationhas a treatment capacity of 300 tons/day, and mainly treats the wastewater before it enters the frameworkshop. ② The cab coating workshop sewage treatment station has a treatment capacity of 400tons/day, and mainly treats the wastewater and painting wastewater before they enter the workshop.
③ The non-metallic line sewage treatment station has a treatment capacity of 240 tons/day, andmainly treats the painting wastewater before it enters the production line. The wastewater anddomestic sewage pretreated by the above three sewage stations are discharged into the FAWIntegrated Sewage Treatment Plant, and then into the Changchun Western Suburbs Sewage TreatmentPlant after being treated to meet the standards.
2. One sewage treatment station has been built in the Chengdu Branch of FAW JiefangAutomotive Co., Ltd. for the treatment of production and domestic wastewater of the Company, witha total treatment capacity of 300 tons/day. The main treatment method is the SBR process. All sewagestations can operate continuously and stably, and the sewage discharged up to standard enters theurban sewage treatment plant through the municipal pipe network for further treatment.
3. The Sichuan Branch of FAW Jiefang Automotive Co., Ltd. has a wastewater treatment stationthat is used to treat the Company's production and domestic wastewater, has a total treatment capacityof 50 tons/hour, and adopts the physicochemical and biochemical treatment process. The sewagestation can operate continuously and stably. The industrial wastewater discharged after meeting thestandard enters the urban sewage treatment plant through the municipal pipeline network for furthertreatment.
4. The transmission branch (transmission factory) of FAW Jiefang Automotive Co., Ltd. usesthe sewage treatment station in the shaft gear park to treat the Company's production wastewater. Thetotal treatment capacity of the sewage treatment station is 50 tons/day, and it operates stably. Afterbeing treated by the sewage station and reaching the standard, the industrial wastewater is dischargedinto the Changchun Western Suburbs Sewage Treatment Plant for further treatment.
5. There is a sewage storage tank in each of the three workshops in the Transmission Branch(Axle Factory) of FAW Jiefang Automotive Co., Ltd., and the industrial wastewater of the threeworkshops is transferred to the sewage treatment station in Shaft Gear Park for treatment.
6. The Changchun Intelligent Bus Branch of FAW Jiefang Automotive Co., Ltd. has an internalsewage treatment station which is used to treat the company's production and domestic wastewater,has a treatment capacity of 300 tons/day, and adopts the physicochemical + biochemical treatmentprocess. The station can operate continuously and stably and realize real-time up-to-standarddischarge. The sewage is discharged to the urban sewage treatment plant through the municipal pipenetwork for further treatment after reaching the standard.
7. Two sewage treatment stations are built in FAW Jiefang Qingdao Automotive Co., Ltd. Theycombine the physicochemical process with the biochemical process and are mainly used to treat thephosphating wastewater, electrophoresis wastewater and degreasing wastewater discharged from thedaily production of the coating workshop, as well as the daily domestic sewage of the Company. Thedesigned maximum daily treatment capacity of the station is 2160 tons/day. The treated wastewatermeets the index requirements of the Wastewater Quality Standards for Discharge to Municipal Sewers(GB/T31962-2015), and reaches the Reuse of Urban Recycling Water - Water Quality Standard forUrban Miscellaneous Use (GB/T18920-2020) after being further treated by the MBR improvementequipment, thus reducing the sewage concentration significantly, increasing the reuse amount ofrecycled water, and saving water. The up-to-standard treated wastewater is discharged to Jimo NorthSewage Treatment Plant for advanced treatment through the sewage outlet.
8. The industrial wastewater produced by the Engine Branch of FAW Jiefang Automotive Co.,Ltd. is transferred to the sewage treatment station of the Shaft Gear Park for treatment.
9. One sewage treatment station is built in Wuxi Diesel Engine Works of FAW JiefangAutomotive Co., Ltd. for the treatment of production and domestic wastewater of the Company, witha total treatment capacity of 3 thousand tons/day and 24-hour operation. The main treatment processis physicochemical + biochemical treatment. The sewage station can operate continuously and stablyand realize real-time up-to-standard discharge. Up-to-standard discharged sewage enters the urbansewage treatment plant through the municipal pipe network for further treatment.
10. One sewage treatment station is built in the Wuxi Diesel Engine Huishan Factory of FAWJiefang Automotive Co., Ltd. for the treatment of production and domestic wastewater of theCompany, with a total treatment capacity of 1 thousand tons/day and 24-hour operation. The main
treatment process is physicochemical + biochemical treatment. The sewage station can operatecontinuously and stably and realize real-time up-to-standard discharge. Up-to-standard dischargedsewage enters the urban sewage treatment plant through the municipal pipe network for furthertreatment.
11. One sewage treatment station is built in FAW Jiefang Dalian Diesel Engine Co., Ltd. for thetreatment of production and domestic wastewater, with a total treatment capacity of 816 tons/day and24-hour operation. The main treatment processes are distillation pretreatment of productionwastewater and biochemical treatment of comprehensive wastewater. The sewage station can operatecontinuously and stably and realize real-time up-to-standard discharge. Up-to-standard dischargedsewage enters the urban sewage treatment plant through the municipal pipe network for furthertreatment.
(II) Waste gas treatment:
1. All waste gas treatment facilities in the Truck Factory of FAW Jiefang Automotive Co., Ltd.can operate continuously and stably. The dust generated by the plasma cutting machine in thestamping workshop is collected and filtered and then discharged through a 15m exhaust pipe. TheCO2 welding machine adopts a single-machine dust removal system, and the waste gas is dischargedlocally in the workshop after being treated by a single-machine dust collector. The waste gasgenerated by the treatment and drying process before entering the frame workshop is dischargedthrough a 15m exhaust pipe after being treated by a direct combustion device. The exhaust gas ofVOCs from cab coating and non-metallic coating is discharged after reaching the standard throughhydrocyclone + zeolite runner adsorption concentration + RTO (regenerative incineration).
2. All waste gas treatment facilities of the Chengdu Branch of FAW Jiefang Automotive Co.,Ltd. can operate continuously and stably. The painting waste gas of the coated body is dischargedafter reaching the standard through hydro cyclone + dry filtration + zeolite runner adsorption andconcentration + RTO (regenerative incineration). All welding fumes are discharged after beingtreated by centralized and mobile dust removal systems and reaching the standard.
3. All waste gas treatment facilities of the Sichuan Branch of FAW Jiefang Automotive Co., Ltd.can operate continuously and stably. The painting waste gas of the coated body is discharged afterreaching the standard through dry paper box + zeolite runner adsorption and concentration + RTO(regenerative incineration). All welding fumes are discharged after being treated by centralized andmobile dust removal systems and reaching the standard.
4. All waste gas treatment facilities of the Transmission Branch (Transformation Factory) ofFAW Jiefang Automotive Co., Ltd. can operate continuously and stably. The painting waste gasgenerated from the coating line is discharged after reaching the standard and being treated byactivated carbon adsorption devices. All kinds of shot-blasting dust are discharged after reaching thestandard and being treated by centralized and mobile dust removal systems.
5. All waste gas treatment facilities of the Transmission Branch (Axle Factory) of FAW JiefangAutomotive Co., Ltd. can operate continuously and stably, and all welding fumes are discharged afterreaching the standard and being treated by centralized and mobile dust removal systems. The wastegas from the painting line of workshop No.3 is treated by a zeolite runner +RCO device anddischarged after meeting the standard. The paint exhaust gas from the painting line of workshop No.1is treated by a multi-stage zeolite + RTO device and discharged after meeting the standard.
6. All waste gas treatment facilities of the Changchun Intelligent Bus Branch of FAW JiefangAutomotive Co., Ltd. can operate continuously and stably, and all welding fumes are discharged afterreaching the standard and being treated by centralized and mobile dust removal systems. The wastegas from the painting process is treated by the pretreatment filtration system + zeolite concentrationrunner + RTO incineration treatment system and then discharged after reaching the standard.
7. All waste gas treatment facilities of FAW Jiefang (Qingdao) Automotive Co., Ltd. can operatecontinuously and stably. The painting waste gas generated by Painting Workshops 1 and 2, Non-metallic Painting Workshop and Assembly Workshops 1 and 2 is discharged after reaching thestandard and being purified by paint mist, adsorbed by zeolite concentration runner and treated by anRTO incineration device in the three workshops. The drying waste gas generated by the assemblyworkshop is burned with low nitrogen and discharged after reaching the standard. It is then treatedby the quaternary combustion device and TNV combustion treatment. The drying waste gas generatedby the Painting Workshop is burned with low nitrogen and discharged after reaching the standard andreceiving TNV thermal incineration. All welding fumes are discharged after reaching the standardand being treated by a filter cartridge dust collector.
8. The engine branch of FAW Jiefang Automotive Co., Ltd. has three quenching machines thatgenerate waste gas and are equipped with adsorption purification devices. After treatment, the wastegas is discharged to the standard.
9. All waste gas treatment facilities of Wuxi Diesel Engine Works of FAW Jiefang AutomotiveCo., Ltd. can operate continuously and stably. The painting waste gas generated from the coating is
discharged after reaching the standard and receiving activated carbon adsorption and desorption +catalysis, and the waste gas generated from the test run is discharged after reaching the standard andbeing treated by the SCR treatment device.
10. All waste gas treatment facilities of Wuxi Diesel Engine Huishan Factory of FAW JiefangAutomotive Co., Ltd. can operate continuously and stably. The painting waste gas generated from thecoating is discharged after reaching the standard and receiving activated carbon adsorption anddesorption + catalysis, and the waste gas generated from the test run is discharged after reaching thestandard and being treated by the SCR treatment device.
11. All waste gas treatment facilities of FAW Jiefang Dalian Diesel Engine Co., Ltd. can operatecontinuously and stably. The painting waste gas generated from the coating is discharged afterreaching the standard and being treated by water curtain paint mist treatment device + activatedcarbon adsorption, and the waste gas generated from the test run is discharged after being treated bySCR post-treatment + alkali liquor washing exhaust gas treatment device and reaching the standard.
(III) Noise control:
All noise reduction and vibration reduction measures of branches and subsidiaries of theCompany can meet the requirements of national laws and regulations, and the noise within the plantboundary meets the requirements of national emission standards.
(IV) Hazardous waste disposal:
All branches and subsidiaries of the Company deliver 100% of hazardous wastes toorganizations with hazardous waste transportation and disposal qualifications for compliant transferand disposal in strict accordance with the requirements of national laws, regulations and standards.Emergency plan for environmental emergencies
The Company has established an environmental risk management mechanism, refinedenvironmental risk assessment standards, identified risk points related to wastewater, waste gas, noise,hazardous waste, construction projects, hazardous chemicals, and pollutant discharge permits, andimplemented risk classification based on scoring. Specific personnel are assigned responsibility foreach type of risk, implementing a "one diagram, one table, one strategy" approach, with controlmeasures developed for 100% of identified risks.
We organized relevant departments to revise and improve the comprehensive plan, specialemergency plan and on-site disposal plan of the Emergency Response Plan for Environmental
Emergencies, conducted a detailed risk assessment on each risk point, clearly defined the workresponsibilities of each department, refined the emergency disposal procedures for unexpectedenvironmental events, supplemented and provided all kinds of emergency response materials, andtrained relevant personnel on the contents of the plan as required.The Company organized relevant departments to formulate the emergency response drill planand carried out the drills on the integrated emergency plan, special emergency plan and on-sitedisposal plan for key areas such as sewage treatment stations, hazardous waste stations and waste gastreatment facilities on schedule. The drills improved the awareness of relevant personnel for theemergency procedures and their emergency response ability and coordination ability for emergencies,providing the actual practice to the environmental emergency team and effectively improving theemergency response-ability.Environmental self-monitoring planThe Company and all branches and subsidiaries have prepared their monitoring plans according tothe requirements of pollutant discharge permits and regulations and organized qualified monitoringorganizations to monitor wastewater, waste gas, noise and others in accordance with the requirementsof the plans. The test report for 2024 shows that all monitoring indicators meet the requirements ofall national emission regulations and standards.Investment in environmental governance and protection and payment of environmental protectiontaxes
In 2024, the Company paid a total of nearly 30 million yuan including various environmentalgovernance and protection expenses and environmental protection taxes.Measures taken to reduce carbon emissions in the reporting period and their effects?Applicable □Not applicableThe Company pays close attention to energy conservation and carbon reduction and activelydocks with the government's preferential energy policies. In 2024, the amount of the green electricitytransaction was 50.8 million kWh, and the PV clean energy project implemented by FAW Jiefang(Qingdao) Automotive Co., Ltd. was connected to the grid to generate electricity, further reducingcarbon emissions. In 2024, a total of 221 energy-saving and cost-reduction projects were establishedand implemented, achieving cumulative cost savings of 94.75 million yuan.Administrative Penalties due to Environmental Problems in the Reporting Period
| Name of | Cause for | Violations | Results of | Impact on | Rectification |
| Company or Subsidiary | Penalties | Penalties | Production and Operation of the Listed Company | Measures of the Company | |
| N/A | N/A | N/A | N/A | N/A | N/A |
Other environmental information that shall be disclosedThe Company and all branches and subsidiaries have disclosed environmental information as requiredand carried out cleaner production audits in strict accordance with the requirements. As a responsiblecentral enterprise, the Company strictly abides by the national requirements, has been practicing theconcept of scientific development, builds a clean and green enterprise, and is committed to becomingan ecological civilization benchmarking environment-friendly enterprise of "energy conservation,consumption reduction, emission reduction and efficiency improvement".Other information related to environmental protectionTo build an integrated large manufacturing platform featuring timely, accurate, high-quality,low-cost, and flexible delivery, in 2024, the Company restructured its manufacturing-relatedorganizational structure, established a Safety and Environmental Protection Department, increasedpersonnel allocation, enhanced the professional capabilities of the environmental management team,and clarified environmental responsibilities for each department to ensure effective implementationand supervision of environmental work.
In 2024, the Company organized a series of "June 5th Environment Day" activities, thoroughlyimplementing Chairman Xi Jinping's ecological civilization thought, fulfilling the Ministry ofEcology and Environment's "Notice on Properly Conducting 2024 June 5th Environment DayPublicity Work" and the Group's requirements for "Carrying Out 2024 Group EnvironmentalProtection Publicity and Training Activities." The Company independently designed a"Comprehensively Advancing the Construction of Beautiful China" themed poster, mobilizing allunits and employees through various formats to conduct organization-wide publicity, promoteEnvironment Day knowledge, advocate for universal environmental protection, and spread the greendevelopment concept of comprehensively advancing the construction of Beautiful China.Regarding the evaluation of energy conservation and environmental protection management, theCompany improved assessment standards from two dimensions: foundational work and specializedenvironmental protection. The Company identified 56 management points across 18 dimensionsincluding system management, water, air, noise, and waste, and conducted systematic training for
energy conservation and environmental protection management personnel at all levels, ensuring clearwork standards and defined responsibilities. The Company further solidified the responsibilities ofleaders and management personnel at all levels to ensure environmental protection managementmeasures are thoroughly implemented and executed.II. Social ResponsibilityFor details of our performance of corporate social responsibilities, please refer to the 2024Environment, Society and Governance (ESG) Report published on CNINFO(http://www.cninfo.com.cn) on the same day.III. Consolidation and Expansion of Achievements in Poverty Alleviation and RuralRevitalization
In 2024, FAW Jiefang actively responded to the national Rural Revitalization Strategy,thoroughly implemented designated assistance work, leveraged its resource advantages, and focusedon supporting Fengshan County in Guangxi and Zhenlai County in Jilin. The company fully utilizedParty-building leadership to focus on industrial development, livelihood infrastructure, culturalconstruction, education, and employment. Through dispatching personnel, partnership building,consumption-based assistance, rural infrastructure improvement, and rural employment promotion,FAW Jiefang promoted economic development in assisted areas according to local conditions andcircumstances, advanced rural revitalization efforts, and created a new rhythm of rural prosperity.
Section VI Important Matters
I. Performance of Commitments
1. Commitments Made by the Company's Actual Controllers, Shareholders, Related Parties, Purchasers and the Company to InterestedParties that will be Fulfilled in the Reporting Period and Commitments not Fulfilled by the End of the Reporting Period?Applicable □Not applicable
| Reasons for Commitment | Committed by | Commitment Type | Commitments | Date | Commitment Period | Performance |
| Commitments made during asset restructuring | China FAW Co., Ltd. | Commitment to regulating and reducing related transactions | 1. We will exercise shareholders' rights in strict accordance with the Company Law and other laws, administrative regulations, rules and normative documents (hereinafter referred to as "laws and regulations") as well as the Articles of Association of FAW Car Co., Ltd. (hereinafter referred to as "Articles of Association"), and when the Board of Directors and the shareholders' meeting vote on related transactions involving FAW Car Co., Ltd. matters, we will fulfill the obligation of avoiding voting. 2. We will commit to putting an end to all illegal occupation of the funds and assets of the listed company, and guarantee not to illegally transfer the funds and assets of the listed company or harm the interests of the listed company and other shareholders of the listed company by making use of relevant transactions. 3. We will try our best to avoid or reduce related transactions with listed companies and enterprises controlled by them. For related transactions that cannot be avoided or exist with reasonable reasons, we will strictly follow the principles of fairness, impartiality and openness in the market, sign standardized related transaction | April 08, 2020 | Long-term validity | The matter is now in the normal process. |
| agreements with listed companies according to law, and perform related transaction decision-making procedures in accordance with relevant laws and regulations and the Articles of Association. The price of related transactions shall be determined based on the market-oriented pricing principle to ensure its fairness, and to perform the information disclosure obligation of related transactions in accordance with relevant laws and regulations and the Articles of Association, and to ensure that the legitimate rights and interests of the listed company and other shareholders of the listed company will not be harmed through related transactions. 4. The above commitments on regulating related transactions will also apply to enterprises actually controlled by FAW Car Co., Ltd., and within the scope of legal shareholders' rights, FAW Car Co., Ltd. will urge its actually controlled enterprises to fulfill the obligations of regulating existing or possible related transactions with listed companies. We will make every effort to urge joint ventures or associated enterprises other than those actually controlled by FAW Car Co., Ltd. to fulfill the obligations to regulate related transactions that have occurred or may occur with listed companies. | |||||
| China FAW Group Co., Ltd. | Commitment to avoiding horizontal competition | 1. Upon completion of the restructuring, the main business of the listed company will be changed to the R&D, production and sales of commercial vehicles. 2. Upon completion of the restructuring, FAW and its holding enterprises other than listed companies (hereinafter referred to as "holding enterprises") shall not directly or indirectly engage in any business or activity that constitutes or may constitute substantial competition with the main business engaged in by listed companies and their holding enterprises in any form. 3. Upon completion of the restructuring, if FAW or its holding enterprises find any new business opportunities that constitute or may constitute a direct or indirect competition with the main business of the listed | April 08, 2020 | Long-term validity | The commitment is being fulfilled normally. |
| them to other unrelated third parties at a reasonable price and in a reasonable way, or prevent the light truck company from engaging in light truck-related businesses by exercising shareholders' rights, and perform relevant internal approval procedures as soon as possible after the above procedures are initiated within 12 months after meeting the requirements that the return on net assets of Harbin Light Automobile and FAW Hongta is not lower than that of listed companies in the same period and increasing the earnings per share of listed companies after restructuring. 6. From the date of issuance of the commitment letter, if FAW violates any of the above commitments, it will take positive measures in favor of the listed company to eliminate horizontal competition, including but not limited to injecting assets related to horizontal competition business into the listed company, terminating horizontal competition business or selling assets related to horizontal competition business to an unrelated third party. 7. The above commitments shall come into effect from the date of completion of the restructuring and shall remain valid and irrevocable during the period when FAW serves as the controlling shareholder or actual controller of the listed company. | |||||
| China FAW Co., Ltd. | Commitment to avoiding horizontal competition | 1. Upon completion of the restructuring, the main business of the listed company will be changed to the R&D, production and sales of commercial vehicles. 2. Upon completion of the restructuring, FAW Car Co., Ltd. and its holding enterprises other than listed companies (hereinafter referred to as "holding enterprises") shall not directly or indirectly engage in any business or activity that constitutes or may constitute substantial competition with the main business engaged in by listed companies and their holding enterprises in any form. 3. Upon completion of the restructuring, if FAW or its holding enterprises find any new business opportunities that constitute or may constitute a | April 08, 2020 | Long-term validity | The commitment is being fulfilled normally. |
| companies in batches or at one time in an appropriate way, or transfer them to other unrelated third parties at a reasonable price and in a reasonable way, or prevent the light truck company from engaging in light truck-related businesses by exercising shareholders' rights, and perform relevant internal approval procedures as soon as possible after the above procedures are initiated within 12 months after meeting the requirements that the return on net assets of Harbin Light Automobile and FAW Hongta is not lower than that of listed companies in the same period and increasing the earnings per share of listed companies after restructuring. 6. From the date of issuance of the commitment letter, if China FAW Co., Ltd. violates any of the above commitments, it will take positive measures in favor of the listed company to eliminate horizontal competition, including but not limited to injecting assets related to horizontal competition business into the listed company, terminating horizontal competition business or selling assets related to horizontal competition business to an unrelated third party. 7. The above commitments shall take effect from the date of completion of this restructuring and shall remain valid and irrevocable during the period when China FAW Co., Ltd. serves as the controlling shareholder or actual controller of the listed company. | |||||
| China FAW Co., Ltd. | Commitment to maintaining the independence of | (I) Ensure the personnel independence of the listed company: 1. Maintain personnel independence with the listed company, and ensure that the General Manager, Deputy General Manager, Financial Director, Secretary of the Board of Directors and other senior executives of the listed company do not hold positions other than directors and supervisors in FAW Car Co., Ltd. and its wholly-owned, holding or other enterprises and public institutions under actual control (hereinafter referred to as "subordinate units"), and do not receive salary from FAW Car Co., Ltd. and its subordinate units. 2. Ensure that | April 08, 2020 | Long-term validity | The commitment is being fulfilled normally. |
| listed companies | the listed company has a complete and independent labor, human resources and salary management system, which is completely independent of FAW Car Co., Ltd. and its subordinate units. (II) Ensure the independence and integrity of the assets of the listed company: 1. Ensure that the listed company has independent and complete assets, all of which are under the control of the listed company, and are independently owned and operated by the listed company. 2. Ensure that FAW Car Co., Ltd. and its subordinate units currently do not and will not illegally occupy the funds and assets of the listed company. 3. China FAW Co., Ltd. will not use the assets of the listed company to guarantee its debts. (III) Ensure the financial independence of the listed company: 1. Ensure that the listed company continues to maintain an independent financial department and an independent financial accounting system. 2. Ensure that the listed company has a standardized and independent financial and accounting system. 3. Ensure that the listed company opens a bank account independently and does not share a bank account with FAW Car Co., Ltd. 4. Ensure that the financial personnel of the listed company do not take part-time jobs in FAW Car Co., Ltd. and its subordinate units. 5. Ensure that the listed company can make financial decisions independently and that FAW Car Co., Ltd. does not interfere with the use of funds by the listed company. 6. Ensure that the listed company pays taxes independently according to law. (IV) Ensure the institutional independence of the listed company: 1. Ensure that the listed company has an independent and complete organizational institution and can operate it independently. 2. Ensure that the office and production and business premises of the listed company are separated from FAW Car Co., Ltd. 3. Ensure that the Board of Directors, Board of Supervisors and all functional departments of the listed company operate and exercise their |
| functions and powers independently, without any affiliation or confusion with the functional departments of FAW Car Co., Ltd. (V) Ensure the business independence of the listed company: 1. Maintain business independence with the listed company after the restructuring, and ensure substantial horizontal competition or obviously unfair related transactions do not exist or occur. 2. Ensure that the listed company has the assets, personnel, qualifications and capabilities to independently carry out business activities, and has the ability to independently operate in the market. 3. Ensure that FAW Car Co., Ltd. does not interfere with the normal business activities of the listed company except for participating in the operation and management of the listed company by exercising shareholders' rights. | |||||
| China FAW Co., Ltd. | Commitment to measures to fill diluted spot returns | 1. We will not interfere with the operation and management activities of the listed company beyond our authority and will not encroach on the interests of the listed company; 2. In this major asset restructuring, the listed company issued shares to FAW Car Co., Ltd. to purchase assets, and signed the Profit Forecast Compensation Agreement attached with effective conditions with FAW Car Co., Ltd., providing legally binding safeguard measures to avoid diluted spot returns in this transaction. | April 08, 2020 | Long-term validity | The commitment is being fulfilled normally. |
| China FAW Group Co., Ltd. | Description of vehicle production qualification | The production qualification and product announcement of Jiefang Limited will be under the group management of FAW, that is, Jiefang Limited will use the production qualification of FAW vehicles, and its production qualification and product announcement declaration will be under the unified management of FAW. Upon completion of the restructuring, FAW will continue to maintain group management based on the actual needs of Jiefang Limited. Jiefang Limited can continue to use relevant production qualifications and keep the announcement | April 08, 2020 | Long-term validity | The commitment is being fulfilled normally. |
| of existing models unchanged. FAW will not hinder the continuous use of relevant qualifications by Jiefang Limited, and will cooperate with Jiefang Limited to maintain the validity of relevant qualifications. | ||||||
| China FAW Co., Ltd. | Commitment to defects of underlying assets | Jiefang Limited and its holding subsidiaries cannot obtain the house ownership certificate for some properties due to historical reasons such as government planning and adjustment, land expropriation, incomplete construction application procedures, and construction beyond the red line. The above properties account for 0.6% of the total area of house ownership of Jiefang Limited and its holding subsidiaries, which is relatively small and will not have a significant adverse impact on the normal production and operation of Jiefang Limited. As the counterparty of the restructuring, the Company promises that the failure to obtain the corresponding ownership certificate of the above properties will not adversely affect the normal production and operation of Jiefang Limited, and will not constitute a substantial obstacle to the restructuring. If the listed company or Jiefang Limited suffers any punishment or loss due to the failure to obtain the corresponding ownership certificate of the above properties, the Company promises to make full compensation to the listed company or Jiefang Limited in cash timely. | November 27, 2019 | Long-term validity | The commitment is being fulfilled normally. | |
| Commitments made during asset restructuring | Relevant directors, supervisors and senior officers of listed companies (Wu Bilei, Li Sheng, Wang Hao, Liu Yanchang, Deng Weigong, Chen Hua, Han Fangming, Mao Zhihong, Dong Zhonglang, Li Ying, Xu Haigen, Wang | Other commitments | If I hold shares in FAW Jiefang prior to this restructuring, I will not reduce my FAW Jiefang shareholdings through direct or indirect means from the date of the first disclosure of this transaction by FAW Jiefang until its completion, nor do I have any plans to reduce FAW Jiefang shares. During this period, if I receive additional shares due to FAW Jiefang's issuance of bonus shares, conversion of capital reserves into share capital, or other such events, I will also abide by the aforementioned arrangements. If the China Securities Regulatory Commission and the Shenzhen Stock Exchange implement new regulations regarding share reduction, I will also strictly comply with such relevant regulations. | October 22, 2024 | To the completion of implementation | The commitment is being fulfilled normally. |
| Lijun, Duan Yinghui, Yu Changxin, Ji Yizhi, Wang Jianyu, Wang Jianxun) | |||||
| Relevant directors, supervisors and senior officers of listed companies (Wu Bilei, Li Sheng, Wang Hao, Liu Yanchang, Deng Weigong, Chen Hua, Han Fangming, Mao Zhihong, Dong Zhonglang, Li Ying, Xu Haigen, Wang Lijun, Duan Yinghui, Yu Changxin, Ji Yizhi, Wang Jianyu, Wang Jianxun) | Other commitments | 1. Not to transfer benefits to other units or individuals without compensation or on unfair terms, nor to adopt other methods that harm the interests of the listed company; 2. To restrict my position-related consumption behavior; 3. Not to use the listed company's assets for investment or consumption activities unrelated to my duties; 4. To ensure the remuneration system established by the Board of Directors or the Compensation and Evaluation Committee is linked to the implementation of the listed company's measures to compensate for diluted immediate returns; 5. To ensure the exercise conditions of any proposed equity incentive plans (if any) are linked to the implementation of the listed company's measures to compensate for diluted immediate returns. I commit to strictly fulfilling the above commitments to ensure the company's return compensation measures can be effectively implemented. If I violate or refuse to fulfill the above commitments, resulting in losses to the listed company, I will bear legal responsibility for compensation, and agree to accept relevant penalties or management measures in accordance with regulations and rules established or issued by the China Securities Regulatory Commission, the Shenzhen Stock Exchange, and other securities regulatory authorities. | October 29, 2024 | Long-term validity | The commitment is being fulfilled normally. |
| China FAW Group Co., Ltd. | Commitments regarding horizontal | 1. Following the completion of this restructuring, the Company will strictly exercise shareholder rights in accordance with the relevant provisions of the "Company Law" and other laws, administrative regulations, rules, and normative documents (hereinafter referred to as "laws and regulations") and the "Articles of Association of the Listed Company." The Company will fulfill its obligation to abstain from | October 29, 2024 | Long-term validity | The commitment is being fulfilled normally. |
| competition, related party transactions, and fund appropriation | voting when the Board of Directors and shareholders' meetings vote on related party transactions involving the Company. 2. We will commit to putting an end to all illegal occupation of the funds and assets of the listed company, and guarantee not to illegally transfer the funds and assets of the listed company or harm the interests of the listed company and other shareholders of the listed company by making use of relevant transactions. 3. We will try our best to avoid or reduce related transactions with listed companies and enterprises controlled by them. For related transactions that cannot be avoided or exist with reasonable reasons, we will strictly follow the principles of fairness, impartiality and openness in the market, sign standardized related transaction agreements with listed companies according to law, and perform related transaction decision-making procedures in accordance with relevant laws and regulations and the Articles of Association of the Listed Company. The price of related transactions shall be determined based on the market-oriented pricing principle to ensure its fairness, and to perform the information disclosure obligation of related transactions in accordance with relevant laws and regulations and the Articles of Association, and to ensure that the legitimate rights and interests of the listed company and other shareholders of the listed company will not be harmed through related transactions. 4. The above commitments on regulating related transactions will also apply to enterprises actually controlled by the Company, and within the scope of legal shareholders' rights, the Company will urge its actually controlled enterprises to fulfill the obligations of regulating existing or possible related transactions with listed companies. We will make every effort to urge joint ventures or associated enterprises other than those actually controlled by the Company to fulfill the obligations to regulate related transactions that have occurred or may occur with |
| listed companies. | |||||
| China FAW Group Co., Ltd. | Other commitments | (I) Ensure the personnel independence of the listed company: 1. Maintain personnel independence with the listed company, and ensure that General Manager, Deputy General Manager, Financial Director, Secretary of the Board of Directors and other senior executives of the listed company do not hold positions other than directors and supervisors in the Company and its wholly-owned, holding or other enterprises and public institutions under actual control (hereinafter referred to as "subordinate units"), and do not receive salary from the Company and its subordinate units. 2. Ensure that the listed company has a complete and independent labor, human resources and salary management system, which is completely independent of the Company and its subordinate units. (II) Ensure the independence and integrity of the assets of the listed company: 1. Ensure that the listed company has independent and complete assets, all of which are under the control of the listed company, and are independently owned and operated by the listed company. 2. Ensure that the Company and its subordinate units currently do not and will not illegally occupy the funds and assets of the listed company. 3. The Company will not use the assets of the listed company to guarantee its debts. (III) Ensure the financial independence of the listed company: 1. Ensure that the listed company continues to maintain an independent financial department and an independent financial accounting system. 2. Ensure that the listed company has a standardized and independent financial and accounting system. 3. Ensure that the listed company opens a bank account independently and does not share a bank account with the Company. 4. Ensure that the financial personnel of the listed company do not take part-time jobs in the Company and its subordinate units. 5. Ensure that the listed company can make financial decisions independently, and the | October 29, 2024 | Long-term validity | The commitment is being fulfilled normally. |
| Company does not interfere with the use of funds by the listed company. 6. Ensure that the listed company pays taxes independently according to law. (IV) Ensure the institutional independence of the listed company: 1. Ensure that the listed company has an independent and complete organizational institution and can operate it independently. 2. Ensure that the office and production and business premises of the listed company are separated from the Company. 3. Ensure that the Board of Directors, Board of Supervisors and all functional departments of the listed company operate and exercise their functions and powers independently, without any affiliation or confusion with the functional departments of the Company. (V) Ensure the business independence of the listed company: 1. Maintain business independence with the listed company after the transaction and ensure substantial horizontal competition or obviously unfair related transactions do not exist or occur. 2. Ensure that the listed company has the assets, personnel, qualifications and capabilities to independently carry out business activities, and has the ability to independently operate in the market. 3. Ensure that the Company does not interfere with the normal business activities of the listed company except for participating in the operation and management of the listed company by exercising shareholders' rights. | |||||
| China FAW Co., Ltd. | Commitment to share reduction | From the date of the first disclosure of FAW Jiefang's restructuring until its completion, the Company will not reduce its FAW Jiefang shareholdings, nor does it have any plans to reduce FAW Jiefang shares. During this period, if the Company receive additional shares due to FAW Jiefang's issuance of bonus shares, conversion of capital reserves into share capital, or other such events, I will also abide by the aforementioned arrangements. If the China Securities Regulatory Commission and the Shenzhen Stock Exchange implement new | October 29, 2024 | To the completion of implementation | The commitment is being fulfilled normally. |
| regulations regarding share reduction, the Company will also strictly comply with such relevant regulations. | |||||
| China FAW Co., Ltd. | Other commitments | 1. Exercise shareholder rights in accordance with relevant laws, regulations and the "Articles of Association" of the listed company; not interfere with the business management activities of the listed company beyond authorized powers, and not misappropriate the interests of the listed company; 2. After the issuance date of this commitment and before the completion of this restructuring of the listed company, if the Shenzhen Stock Exchange issues other new regulatory requirements regarding return compensation measures and related commitments, and the above commitments cannot satisfy these requirements, the Company commits to issue supplementary commitments in accordance with the exchange's latest requirements; 3. If the Company violates or refuses to fulfill the above commitments, resulting in losses to the listed company, the Company will bear legal responsibility for compensation, and agree to accept relevant penalties or management measures in accordance with regulations and rules established or issued by the China Securities Regulatory Commission, the Shenzhen Stock Exchange, and other securities regulatory authorities. | October 29, 2024 | To the completion of implementation | The commitment is being fulfilled normally. |
| FAW Bestune Auto Co., Ltd. | Commitment to share reduction | From the date of the first disclosure of FAW Jiefang's restructuring until its completion, the Company will not reduce its FAW Jiefang shareholdings, nor does it have any plans to reduce FAW Jiefang shares. During this period, if the Company receive additional shares due to FAW Jiefang's issuance of bonus shares, conversion of capital reserves into share capital, or other such events, I will also abide by the aforementioned arrangements. If the China Securities Regulatory Commission and the Shenzhen Stock Exchange implement new regulations regarding share reduction, the Company will also strictly | October 22, 2024 | To the completion of implementation | The commitment is being fulfilled normally. |
| comply with such relevant regulations. | ||||||
| Commitment made upon initial public offering or refinancing | Relevant directors, supervisors and senior officers of listed companies (Hu Hanjie, Wu Bilei, Li Sheng, Yu Changxin, Liu Yanchang, Han Fangming, Mao Zhihong, Dong Zhonglang, Wang Jianxun, Zhang Guohua, Bi Wenquan, Li Hongjian, Tian Haifeng, Ji Yizhi) | Commitment to measures to fill diluted spot returns | 1. I commit not to transfer benefits to other units or individuals without compensation or on unfair terms and not to use other methods that harm the Company's interests; 2. I commit to restricting my position-related consumption behavior; 3. I commit not to use Company assets for investment or consumption activities unrelated to my duties; 4. I commit that the remuneration system established by the Board of Directors or the Compensation and Evaluation Committee will be linked to the implementation of the Company's return compensation measures; 5. I commit that the exercise conditions for equity incentives will be linked to the implementation of the Company's return compensation measures; 6. After the issuance date of this commitment and before the completion of this issuance, if the China Securities Regulatory Commission (CSRC) issues other new regulatory requirements regarding return compensation measures and related commitments, and the above commitments cannot satisfy these CSRC requirements, I commit to issuing supplementary commitments in accordance with the CSRC's latest requirements; 7. I commit to effectively fulfill all commitments made. If I violate or refuse to fulfill these commitments, I will publicly provide explanations and apologize at the shareholders' meeting and in CSRC-designated publications, and accept relevant regulatory measures; if violations of these commitments cause losses to the Company or investors, I will bear legal responsibility in accordance with the law. | June 19, 2023 | Long-term validity | The commitment is being fulfilled normally. |
| China FAW Co., Ltd., FAW Bestune Auto | Commitment | In accordance with relevant regulations, the Company's controlling shareholder FAW Bestune Auto Co., Ltd. and its party acting in | June 19, 2023 | Long-term | The commitme |
| Co., Ltd. | to measures to fill diluted spot returns | concert, FAW Bestune Auto Co., Ltd., make the following commitments to ensure the Company's return compensation measures can be effectively implemented: 1. Not to interfere with the Company's business management activities beyond authorized powers and not to misappropriate the Company's interests; 2. After the issuance date of this commitment and before the completion of this issuance, if the China Securities Regulatory Commission and Shenzhen Stock Exchange issue other new regulatory requirements regarding return compensation measures and related commitments, and this commitment cannot satisfy these requirements, the Company commits to issue supplementary commitments in accordance with the latest requirements issued by the China Securities Regulatory Commission and Shenzhen Stock Exchange. | validity | nt is being fulfilled normally. | ||
| Equity incentive commitment | N/A | N/A | ||||
| Other commitments to minority shareholders of the Company | N/A | N/A | ||||
| Other commitments | China FAW Co., Ltd. | Other commitments | Based on confidence in your company's future development and recognition of its intrinsic value, and to enhance investor confidence, maintain capital market stability and protect investor interests, China FAW Co., Ltd. commits not to reduce its shareholding in your | January 17, 2025 | In 2025 | The commitment is being fulfilled |
| company through any means during 2025. During this commitment period, China FAW Co., Ltd. will also apply this commitment to any new shares acquired through your company's conversion of capital reserves into share capital, distribution of stock dividends, rights issues, additional share issuances, or other similar corporate actions. | normally. | |||
| Whether the commitment is fulfilled on time | Yes | |||
| If the commitment is not fulfilled within the time limit, the specific reasons for the failure and the next work plan shall be explained in detail | N/A | |||
2. If there is a profit forecast for the Company's assets or projects, and the reporting period isstill in the profit forecast period, the Company shall explain that the assets or projectsreaching the original profit forecast and the reasons
□Applicable ?Not applicable
II. Non-operating Occupation of Funds by Controlling Shareholders and Other RelatedParties to the Listed Company
□Applicable ?Not applicable
During the reporting period, there was no non-operating occupation of funds by controllingshareholders and other related parties.III. Illegal External Guarantee
□Applicable ?Not applicable
The Company has no illegal external guarantee in the reporting period.IV. Description of the Board of Directors on the latest "Non-standard Audit Report"
□Applicable ?Not applicable
V. Description of the Board of Directors, the Board of Supervisors and Independent Directors(if any) on the "Non-standard Audit Report" of the Accounting Firm in the Reporting Period
□Applicable ?Not applicable
VI. Description of Changes in Accounting Policies and Accounting Estimates or Correction ofSignificant Accounting Errors Compared with the Financial Report of the Previous Year?Applicable □Not applicableThe Ministry of Finance issued "Interpretation No.18 of Accounting Standards for BusinessEnterprises" (CK [2024] No.24, Interpretation No.18) on December 31, 2024.Accounting treatment of warranty-type quality assurance does not constitute a separate performanceobligationInterpretation No.18 stipulates that when accounting for provisions arising from warranty-typequality assurance that does not constitute a separate performance obligation, enterprises should, inaccordance with the relevant provisions of "No.13 of Accounting Standards for Business Enterprises-
Contingencies", debit "Main Operating Costs", "Other Operating Costs" or other relevant accountsbased on the determined provision amount, and credit the "Provisions" account. These should becorrespondingly presented in the "Operating Costs" item in the income statement and in the "OtherCurrent Liabilities", "Non-current Liabilities Due Within One Year", "Provisions" or other relevantitems in the balance sheet.The Company has implemented this provision from the date of issuance of Interpretation No.18 andhas made retrospective adjustments.The impact of implementing the above accounting policies on the consolidated income statement for2024 is as follows:
| Consolidated income statement items (2024) | Impact amount (Yuan) |
| Sales expenses | -649,934,273.23 |
| Operating costs | 649,934,273.23 |
The impact of implementing the above accounting policies on the consolidated income statementfor 2023 is as follows:
| Consolidated income statement items (2023) | Before adjustment (Yuan) | Adjustment amount (Yuan) | After adjustment (Yuan) |
| Sales expenses | 1,677,186,816.57 | -573,588,104.47 | 1,103,598,712.10 |
| Operating costs | 58,827,779,239.02 | 573,588,104.47 | 59,401,367,343.49 |
VII. Description of Changes in the Scope of Consolidated Statements Compared with theFinancial Report of the Previous Year?Applicable □Not applicable
1. On August 16, 2024, the Company invested in establishing FAW Jiefang Group InternationalAutomobile Co., Ltd.
2. In December 2024, the Company acquired 100% equity in Jiefang Motors Tanzania Ltd. fromChina Faw Group Import & Export Corp, a subsidiary of FAW Group, for 57,800,429.15 yuan incash. Since both parties involved in the merger were under the control of FAW Group before andafter the transaction, and this control was not temporary, this transaction constitutes a businesscombination under common control, with the merger date established as December 31, 2024.
3. In December 2024, the Company acquired 55% equity in FAW (Africa) Investment Co., Ltd. fromChina Faw Group Import & Export Corp, a subsidiary of FAW Group, for 327,948,795.48 yuan incash. Since both parties involved in the merger were under the control of FAW Group before andafter the transaction, and this control was not temporary, this transaction constitutes a businesscombination under common control, with the merger date established as December 31, 2024.VIII. Appointment and Dismissal of Accounting FirmAccounting Firm Currently Hired
| Name of Domestic Accounting Firm | Grant Thornton Certified Public Accountants (Special General Partnership) |
| Remuneration of Domestic Accounting Firm (10 thousand yuan) | 95 |
| Consecutive Years of Audit Service Provided by Domestic Accounting Firm | 8 years |
| Name of Certified Public Accountant of Domestic Accounting Firm | Wu Songlin, Yang Dongmin |
| Consecutive Years of Audit Service Provided by a Certified Public Accountant of a Domestic Accounting Firm | Wu Songlin (2 years), Yang Dongmin (3 years) |
Whether to change to hire a new accounting firm in the current period
□Yes ?No
Employment of accounting firm, financial consultant or sponsor for internal control audit?Applicable □Not applicable
1. After deliberation and adoption at the 19th meeting of the 10th Board of Directors and theFourth Extraordinary Shareholders' Meeting of 2024, Grant Thornton Accounting Firm (specialgeneral partnership) was appointed as the internal control audit institution of the Company in 2024,with an internal control audit fee of 600 thousand yuan.
2. The Company engaged China International Capital Corporation Limited as the sponsor andunderwriter for its private placement of A-shares to specific targets, with total sponsorship,underwriting and continuous supervision fees amounting to 90 thousand yuan.
3. The Company engaged China Securities Co., Ltd. as an independent financial advisor for itsmajor asset restructuring, with a financial advisory fee of 200 thousand yuan.
IX. Delisting after Disclosure of Annual Report
□Applicable ?Not applicable
X. Matters Related to Bankruptcy Reorganization
□Applicable ?Not applicable
The Company has no matter related to bankruptcy reorganization in the reporting period.XI. Major Litigation and Arbitration Matters?Applicable □Not applicable
| Basic Information about Litigation (Arbitration) | Amount Involved (10 thousand yuan) | Estimated liabilities formed or not | Progress of Litigation (Arbitration) | Litigation (Arbitration) Results and Impact | Implementation of Litigation (Arbitration) Judgment | Date of Disclosure | Disclosure Index |
| Summary of other litigation not reaching the major disclosure standard | 4,844.17 | Including estimated liabilities of 23.9748 million yuan | Case not closed | No significant impact | Case not closed by the end of the reporting period | ||
| 5,288.99 | No | Case closed | No significant impact | Judgment has been made or the execution has been completed |
XII. Punishment and Rectification
□Applicable ?Not applicable
The company has no punishment or rectification in the reporting period.XIII. Integrity of the Company and Its Controlling Shareholders and Actual Controllers
□Applicable ?Not applicable
XIV. Major Related Transactions
1. Related transactions related to daily operations
?Applicable □Not applicable
| Related Transaction Party | Correlation | Type of Related Transaction | Content of Related Transaction | Pricing Principle of Related Transaction | Price of Related Transaction | Amount of Related Transaction (10 thousand yuan) | Proportion to the Amount of Similar Transactions | Approved Transaction Amount (10 thousand yuan) | Whether it Exceeds the Approved Amount | Settlement Method of Related Transaction | Available Market Value of Similar Transactions | Date of Disclosure | Disclosure Index |
| Fawer Auto Parts Co., Ltd. | Other related parties | Goods purchase and reception of labor services | Goods purchase and reception of labor services | Market price | Market price | 139,356.56 | 2.64% | 197,238 | No | Cash + bill settlement | 139,356.56 | January 31, 2024 | http://www.cninfo.com.cn/new/disclosure/stock?stockCode=000800&orgId=gssz0000800&sjstsBond=false#latestAnnouncement |
| China FAW Group Import & Export Co., Ltd. | The same ultimate controlling party | Sales of goods | Sales of goods | Market price | Market price | 1,220,820.37 | 20.84% | 1,475,014 | No | Cash + bill settlement | 1,220,820.37 | ||
| Total | -- | -- | 1,360,176.93 | -- | 1,672,252 | -- | -- | -- | -- | -- | |||
| Details of large sales returns | N/A |
| Actual performance in the reporting period, if the total amount of daily related transactions to be incurred in the current period is estimated by category | For details about the actual performance of related transactions in the reporting period, please see Item XIV, "Related Parties and Related Transactions," in Section X of this report. |
| Reasons for the large difference between transaction price and market reference price | N/A |
2. Related transactions arising from the acquisition and sale of assets or equity?Applicable □Not applicable
| Related Parties | Correlation | Type of Related Transaction | Content of Related Transaction | Pricing Principle of Related Transaction | Book value of transferred assets (10 thousand yuan) | Appraisal value of the transferred assets (10 thousand yuan) | Transfer price (10 thousand yuan) | Settlement Method of Related Transaction | Transaction profit and loss (10 thousand yuan) | Date of Disclosure | Disclosure Index |
| China FAW Co., Ltd. | Parent company of the Company | Equity sale | 21.8393% Equity of the First Automobile Finance Co., Ltd. | Asset appraisal pricing | 445,920.62 | 492,388.61 | 492,388.61 | Cash settlement | 46,926.53 | October 29, 2024 | http://www.cninfo.com.cn/new/disclosure/stock?stockCode=000800&orgld=gssz0000800&sjstsBond=false#latestAnnouncement |
| China FAW Group Import & Export Co., Ltd. | The same ultimate controlling party | Equity acquisition | 55% equity of FAW (Africa) Investment Co., Ltd. | Asset appraisal pricing | 72,753.54 | 61,627.05 | 32,794.88 | Cash settlement | 0 | December 21, 2024 | http://www.cninfo.com.cn/new/disclosure/stock?stockCode=000800&orgld=gssz0000800&sjstsBond=false#latestAnnouncement |
| Reasons for the large difference between the transfer price and the book value or appraisal value | N/A | ||||||||||
| Impact on the Company's operating results and financial position | Sale of 21.8393% equity in First Automobile Finance Co., Ltd., with no change to the Company's main business operations, which will continue to develop core product lines; Acquisition of 55% equity in FAW (Africa) Investment Co., Ltd. will expand the Company's overseas capital operation channels, promote growth in overseas export volumes, while also extending influence to increase sales volumes in surrounding countries and regions | ||||||||||
| Performance achievement during the reporting period, if the relevant transactions involve | N/A | ||||||||||
3. Related transactions of joint foreign investment
□Applicable ?Not applicable
4. Related credit and debt transactions
?Applicable □Not applicableWhether there are non-operating related credit and debt transactions
□Yes ?No
The Company has had no non-operating related credit and debt transactions during the reportingperiod.
5. Transaction with related finance companies
?Applicable □Not applicableDeposit Business
| Related Parties | Correlation | Maximum Daily Deposit Limit (10 thousand yuan) | Deposit Interest Rate Range | Opening Balance (10 thousand yuan) | Amount Incurred in Current Period | Ending Balance (10 thousand yuan) | |
| Total Deposit Amount in the Current Period (10 thousand yuan) | Total Withdrawal Amount in the Current Period (10 thousand yuan) | ||||||
| First Automobile Finance Co., Ltd. | The same ultimate controlling party | 3,000,000 | 0.455%-2.3% | 1,434,091.03 | 28,349,931.94 | 28,896,885.46 | 887,137.51 |
Credit Granting or Other Financial Businesses
| Related Parties | Correlation | Business Type | Total Amount (10 thousand yuan) | Actual Amount Incurred (10 thousand yuan) |
| First Automobile Finance Co., Ltd. | The same ultimate controlling party | Other financial businesses | 900,000 | 191,125.56 |
6. Transactions between finance companies controlled by the Company and related parties
□Applicable ?Not applicable
There is no deposit, loan, credit granting or other financial businesses between the financecompanies controlled by the Company and related parties.
7. Other major related transactions
?Applicable □Not applicable
On January 30, 2024, the 10th meeting of the 10th Board of Directors of the Company reviewedand approved the Proposal on Estimated Amount of Daily Related Transactions in 2024 and theProposal on Estimated Amount of Financial Business with First Automobile Finance Co., Ltd. in2024, which were reviewed and approved by the first extraordinary shareholders' meeting of theCompany in 2024.Relevant Inquiries on Disclosure Website of Interim Report of Major Related Transactions
| Name of Temporary Announcement | Disclosure Date of Temporary Announcement | Name of Temporary Announcement Disclosure Website |
| Announcement on the estimated amount of daily related transactions in 2024 | January 31, 2024 | CNINFO (http://www.cninfo.com.cn) |
| Announcement on the estimated amount of financial business with First Automobile Finance Co., Ltd. in 2024 | January 31, 2024 | CNINFO (http://www.cninfo.com.cn) |
XV. Major Contracts and Their Performance
1. Trusteeship, contracting and lease
(1) Trusteeship
□Applicable ?Not applicable
There is no trusteeship made by the Company in the reporting period.
(2) Contracting
□Applicable ?Not applicable
There is no contract made by the Company during the reporting period.
(3) Lease
?Applicable □Not applicableDescription of leaseFor details of the Company's operating lease, please refer to Note 14 "Investment real estate", Note
15 "Fixed assets", and Note 19 "Right-of-use assets" in Notes to Items in VII "ConsolidatedFinancial Statements" of Section X "Financial Report", and Note 5 "Information of relatedtransactions" in XIV "Related parties and related transactions".Projects that bring about profits and losses exceeding 10% of the total profit of the Company in thereporting period
□Applicable ?Not applicable
The Company has no leasing project that brings about profits and losses exceeding 10% of the totalprofit of the Company in the reporting period.
2. Major guarantees
□Applicable ?Not applicable
The Company has no major guarantee in the reporting period.
3. Cash Assets Management Entrusted to Others
(1) Entrusted financial management
□Applicable ?Not applicable
The Company has no entrusted financial management in the reporting period.
(2) Entrusted loans
□Applicable ?Not applicable
The Company has no entrusted loans in the reporting period.
4. Other major contracts
□Applicable ?Not applicable
The Company has no other major contracts in the reporting period.XVI. Other Major Matters to be Explained?Applicable □Not applicable
On June 19, 2023, the Company held the 4th Meeting of the 10th Board of Directors and the 3rdMeeting of the 10th Board of Supervisors, respectively, to deliberate and approve relevant proposalssuch as the Proposal on the Company's Eligibility for Issuing A-shares to Specific Objects and theProposal on the Company's Plan for Issuing A-shares to Specific Objects in 2023. These Proposalswere deliberated and approved at the 2nd Extraordinary Shareholders' Meeting of the Company held
on July 18, 2023. On July 18, 2023, the Company disclosed the Announcement of Approval fromChina FAW Group Co., Ltd. Regarding the Matters of Issuing A-Share Stocks to Specific Objects inthe Company in 2023. On August 3, 2023, the Company disclosed the Announcement on theApplication for the Issuance of A-shares to Specific Objects in 2023 Accepted by the Shenzhen StockExchange. On October 13, 2023, the Company disclosed the Announcement on the Issuance of A-shares to Specific Objects in 2023, Accepted by the Listing Review Center of the Shenzhen StockExchange. On June 25, 2024, the Company disclosed the Announcement of Obtaining the Approvalof the China Securities Regulatory Commission (CSRC) for the Application for Issuing Shares toSpecific Objects and the Prospectus for Issuing A-shares to Specific Objects in 2023 (RegistrationDraft). On October 15, 2024, the Company disclosed the Prompt Announcement on the Disclosureof the Report on the Issuance of A-Shares Stocks to Specific Objects, the Report on the Issue of A-shares to Specific Objects in 2023 and other relevant announcements. On October 17, 2024, theCompany held the 16th meeting of the 10th Board of Directors and the 13th meeting of the 10thBoard of Supervisors, respectively, and reviewed and approved the Proposal on Adjusting theAmount of Raised Funds to be Invested in Fundraising Projects, Proposal on Adding ImplementationEntities for Fundraising Projects and other related proposals. On October 18, 2024, the Companydisclosed the Announcement on the Listing of A-shares Stocks Issued to Specific Objects in 2023and other relevant announcements. The listing date of the new shares is October 21, 2025.For details of the above matters, please refer to the Company's relevant announcementspublished in Securities Times, China Securities Journal and CNINFO (http://www.cninfo.com.cn).XVII. Major Events of Subsidiaries
□Applicable ?Not applicable
Section VII Changes in Shares and ShareholdersI. Changes in Shares
1. Changes in shares
Unit: share
| Before the Change | Increase/Decrease Made by the Change (+, -) | After the Change | |||||||
| Qty. | Scale | Issue of New Shares | Bonus shares | Share Transferred from Accumulation Fund | Others | Subtotal | Qty. | Scale | |
| I. Restricted shares | 14,433,543 | 0.31% | 298,507,462 | - | - | -12,923,310 | 285,584,152 | 300,017,695 | 6.09% |
| 1. Shares held by the state | - | ||||||||
| 2. Shares held by the state-owned legal person | 135,820,894 | 135,820,894 | 135,820,894 | 2.76% | |||||
| 3. Shares held by other domestic enterprises | 14,433,543 | 0.31% | 145,970,151 | -12,923,310 | 133,046,841 | 147,480,384 | 3.00% | ||
| Including: shares held by a domestic legal person | 145,970,151 | 145,970,151 | 145,970,151 | 2.97% | |||||
| Shares held by a domestic natural person | 14,433,543 | 0.31% | -12,923,310 | -12,923,310 | 1,510,233 | 0.03% | |||
| 4. Shares held by foreign enterprises | 16,716,417 | 16,716,417 | 16,716,417 | 0.34% | |||||
| Including: shares held by an overseas legal person | 16,716,417 | 16,716,417 | 16,716,417 | 0.34% | |||||
| Shares held by overseas natural person | - | - | |||||||
| II. Unrestricted shares | 4,622,564,932 | 99.69% | -211,451 | -211,451 | 4,622,353,481 | 93.91% | |||
| 1. CNY ordinary shares | 4,622,564,932 | 99.69% | -211,451 | -211,451 | 4,622,353,481 | 93.91% | |||
| 2. Foreign shares listed in China | - | ||||||||
| 3. Foreign shares listed overseas | - | ||||||||
| 4. Others | - | ||||||||
| III. Total number of shares | 4,636,998,475 | 100.00% | 298,507,462 | -13,134,761 | 285,372,701 | 4,922,371,176 | 100.00% |
Reasons for changes in shares?Applicable □Not applicable
1. During the reporting period, the Company failed to achieve the performance assessmentobjectives set for the third release period first granted and the second release period reserved by theCompany's Phase I restricted share incentive plan, and a total of 13,134,761 shares were repurchasedand canceled due to organizational transfer, statutory retirement and personal reasons.
2. During the reporting period, the Company completed the issue of A-shares to specific objects,and the number of shares issued was 298,507,462.
To sum up, the total equity of the Company was changed to 4,922,371,176 shares.Approval of share changes?Applicable □Not applicable
(1) The Proposal on the Repurchase and Cancellation of Partial Restricted Shares in the Phase IRestricted Share Incentive Plan was reviewed and approved at the 7th Meeting of the 10th Board ofDirectors and the 6th Meeting of the 10th Board of Supervisors on November 20, 2023. A total of512,807 restricted shares were repurchased and canceled. On December 6, 2023, the Proposal wasdeliberated and approved at the Company's fourth Extraordinary Shareholders' Meeting in 2023.
(2) On March 28, 2024, the 11th meeting of the 10th Board of Directors and the 10th meetingof the 20th Board of Supervisors of the Company deliberated and approved the Proposal onUnsuccessful Lifting of Conditions of the Third Release Period First Granted by the Phase I RestrictedShare Incentive Plan for Releasing the Restricted Sales and of Conditions of the Second ReleasePeriod Reserved by the Phase I Restricted Share Incentive Plan for Releasing the Restricted Sales andRepurchase and Cancellation of Some Restricted Shares, with a total number of 12,621,954 restrictedshares repurchased and canceled. On April 25, 2024, the proposal was reviewed and approved at theCompany's 2023 Annual Shareholders' Meeting.
(3) On June 19, 2023, the Company held the 4th Meeting of the 10th Board of Directors and the3rd Meeting of the 10th Board of Supervisors, respectively, to deliberate and approve relevantproposals such as the Proposal on the Company's Eligibility for Issuing A-shares to Specific Objectsand the Proposal on the Company's Plan for Issuing A-shares to Specific Objects in 2023. On July13, 2023, FAW Group, the entity responsible for state-owned assets supervision and management,issued the "Reply on Matters Concerning FAW Jiefang Group Co., Ltd.'s 2023 Private Placement ofA-shares to Specific Investors," approving the issuer's private placement. On July 18, 2023, the
aforementioned resolutions were reviewed and approved at the Company's second ExtraordinaryShareholders' Meeting in 2023. On October 12, 2023, the Shenzhen Stock Exchange approved theCompany's private placement of shares to specific investors. On June 21, 2024, the China SecuritiesRegulatory Commission issued the "Reply on Approving the Registration of FAW Jiefang Group Co.,Ltd.'s Private Placement of Shares to Specific Investors," approving the Company's registrationapplication for the private placement of shares.Transfer of share changes?Applicable □Not applicable
(1) On March 15, 2024, the Company submitted relevant registration materials to CDSC for512,807 shares involved in equity incentive repurchase and cancellation. On March 27, 2024, CSDCissued the Confirmation of Securities Transfer Registration to the Company, and the total share capitalof the Company was reduced to 4,636,485,668 shares.
(2) On June 11, 2024, the Company submitted relevant registration materials to CDSC for12,621,954 shares involved in equity incentive repurchase and cancellation. On June 13, 2024, CSDCissued the Confirmation of Securities Transfer Registration to the Company, and the total share capitalof the Company was reduced to 4,623,863,714 shares.
(3) On October 12, 2024, the Company submitted relevant registration materials to the CDSCfor the private placement of 298,507,462 shares. On November 16, 2024, CSDC issued theConfirmation of Acceptance of Application for Share Registration to the Company. The new shareswere listed on the Shenzhen Stock Exchange on October 21, 2024, with the Company's total sharecapital decreasing to 4,922,371,176 shares.Impact of changes in shares on financial indicators such as basic earnings per share and dilutedearnings per share in the latest year and the latest period, and net assets per share attributable toshareholders with ordinary shares of the Company?Applicable □Not applicable
In the reporting period, the increase in share capital of the Company was 285,372,701 shares,which had little impact on the Company's financial indicators such as basic earnings per share,diluted earnings per share and net assets per share attributable to common shareholders of theCompany.
Other information disclosed as deemed necessary by the Company or required by the securitiesregulatory authority
□Applicable ?Not applicable
2. Changes in restricted shares
?Applicable □Not applicable
Unit: share
| Name of Shareholder | Number of Restricted Shares at the Beginning of the Period | Number of Restricted Shares Increased in the Current Period | Number of Restricted Shares Released in the Current Period | Number of Restricted Shares at the End of the Period | Reason for Restriction | Release Date |
| National Manufacturing Transformation and Upgrading Fund Co., Ltd. | 67,164,179 | 67,164,179 | Non-public offering | April 21, 2025 | ||
| Lord Abbett China Asset Management Co., Ltd. | 57,611,940 | 57,611,940 | Non-public offering | April 21, 2025 | ||
| Jilin Province Private Equity Co., Ltd. | 46,268,656 | 46,268,656 | Non-public offering | April 21, 2025 | ||
| Caitong Fund Management Co., Ltd. | 30,447,765 | 30,447,765 | Non-public offering | April 21, 2025 | ||
| AEGON-INDUSTRIAL Fund Management Co., Ltd. | 25,074,626 | 25,074,626 | Non-public offering | April 21, 2025 | ||
| Jilin Province Yandong State-Owned Capital Investment Co., Ltd. | 22,388,059 | 22,388,059 | Non-public offering | April 21, 2025 | ||
| UBS AG | 16,716,417 | 16,716,417 | Non-public offering | April 21, 2025 | ||
| Jilin Changbai Mountain Private Fund Management Co., Ltd. - Jilin Province Qianheng Investment Partnership (Limited Partnership) | 16,417,910 | 16,417,910 | Non-public offering | April 21, 2025 | ||
| Changchun Equity Investment Fund Management Co., Ltd. - Changchun Changxing Equity Investment Fund Partnership (Limited Partnership) | 16,417,910 | 16,417,910 | Non-public offering | April 21, 2025 | ||
| Wu Bilei | 95,992 | 58,853 | 37,139 | Post-departure lockup | Lifting of restrictions in accordance with regulations after the post-departure lockup |
| period expires | ||||||
| Li Sheng | 80,966 | 49,639 | 31,327 | Executive lockup | Each year, 25% of the total shares held are released from restriction | |
| Zhang Guohua | 95,967 | 39,415 | 56,552 | Executive lockup | Each year, 25% of the total shares held are released from restriction | |
| Ji Yizhi | 80,966 | 17,349 | 63,617 | Post-departure lockup | Lifting of restrictions in accordance with regulations after the post-departure lockup period expires | |
| Wang Jianyu | 65,544 | 34,217 | 31,327 | Executive lockup | Each year, 25% of the total shares held are released from restriction | |
| Tian Haifeng | 80,966 | 33,253 | 47,713 | Executive lockup | Each year, 25% of the total shares held are released from restriction | |
| Wang Jianxun | 80,966 | 49,639 | 31,327 | Executive lockup | Each year, 25% of the total shares held are released from restriction | |
| Other core employees of senior director and above | 13,852,176 | 12,640,945 | 1,211,231 | Equity incentive, etc. | The restrictions on sales are lifted in accordance with the restricted stock incentive plan and assessment objectives, etc. |
| Total | 14,433,543 | 298,507,462 | 12,923,310 | 300,017,695 | -- | -- |
II. Issuance and Listing of Securities
1. Issuance of Securities (Excluding Preferred Share) in the Reporting Period
√ Applicable □ Not applicable
| Name of Shares and Derivative Securities | Issue Date | Issue Price (or Interest Rate) | Quantity Issued | Date of Listing | Quantity Approved for Listing | Transaction Termination Date | Disclosure Index | Date of Disclosure |
| Stocks | ||||||||
| A share | September 27, 2024 | 6.70 yuan/share | 298,507,462 | October 21, 2024 | 298,507,462 | http://www.cninfo.com.cn/new/disclosure/stock?stockCode=000800&orgld=gssz0000800&sjstsBond=false#latestAnnouncement | October 18, 2024 | |
Description of issuance of securities (excluding preferred shares) in the reporting period
On June 21, 2024, the China Securities Regulatory Commission issued the "Reply on Approvingthe Registration of FAW Jiefang Group Co., Ltd.'s Private Placement of Shares to Specific Investors,"approving the Company's registration application for the private placement of shares. The Companycompleted the issuance and listing of the relevant shares in October 2024.
2. Changes in the Total Number of Shares and Shareholder Structure, as well as Changes inthe Structure of the Company's Assets and Liabilities?Applicable □Not applicable
During the reporting period, according to the restricted share incentive plan, the Companyrepurchased and canceled a total of 13,134,761 granted shares of incentive objects that failed toconform to the restricted share incentive plan. In addition, the Company completed the issuance of atotal of 298,507,462 shares to specific objects. The aforementioned transactions increased theCompany's share capital by 285,372,701 shares in total, changing the Company's total number ofshares from 4,636,998,475 to 4,922,371,176.
3. Existing Internal Employee Shares
□Applicable ?Not applicable
III. Shareholders and Actual Controllers
1. Number of Shareholders and Shareholdings of the Company
Unit: share
| Total Number of Shareholders with Ordinary Shares at the End of the Reporting Period | 71,949 | Total Number of Ordinary Shareholders at the End of the Last Month before the Disclosure Date of the Annual Report | 70,219 | Total Number of Shareholders with Preferred Share with Restored Voting Rights at the End of the Reporting Period | 0 | Total Number of Preferred Shareholders with Resumed Voting Rights at the End of the Last Month before the Disclosure Date | 0 | |
| Shareholdings of Shareholders Holding More than 5% of the Shares or Top 10 Shareholders (Excluding Shares Lent through Securities Refinancing). | ||||||||
| Name of Shareholder | Nature of Shareholders | Share proportion | Number of Shares Held at the End of the Reporting Period | Increase and Decrease in the Reporting Period | Number of Restricted Shares Held | Number of Unrestricted Shares Held | Pledge, Marking or Freezing | |
| Status of Shares | Qty. | |||||||
| China FAW Co., Ltd. | State-owned legal person | 62.18% | 3,060,649,901 | 0 | 0 | 3,060,649,901 | N/A | 0 |
| FAW Bestune Auto Co., Ltd. | State-owned legal person | 15.94% | 784,500,000 | 0 | 0 | 784,500,000 | N/A | 0 |
| National Manufacturing Transformation and Upgrading Fund Co., Ltd. | State-owned legal person | 1.36% | 67,164,179 | 67,164,179 | 67,164,179 | N/A | 0 | |
| Hong Kong Securities Clearing Company Ltd. | Overseas legal person | 1.23% | 60,473,693 | -2,341,266 | 0 | 60,473,693 | N/A | 0 |
| Jilin Province Private Equity Co., Ltd. | State-owned legal person | 0.94% | 46,268,656 | 46,268,656 | 46,268,656 | N/A | 0 | |
| Qu Hongzhen | Overseas natural person | 0.73% | 36,096,590 | 36,096,590 | 0 | 36,096,590 | N/A | 0 |
| Agricultural Bank of China Co., Ltd. – Xingquan CSI 300 Index Enhanced Securities Investment Fund (LOF) | Others | 0.47% | 23,340,134 | 23,340,134 | 22,373,134 | 967,000 | N/A | 0 |
| Jilin Province Yandong State-Owned Capital Investment Co., Ltd. | State-owned legal person | 0.45% | 22,388,059 | 22,388,059 | 22,388,059 | 0 | N/A | 0 |
| UBS AG | Overseas legal person | 0.34% | 16,917,541 | 16,254,800 | 16,716,417 | 201,124 | N/A | 0 |
| Industrial and Commercial Bank | Others | 0.34% | 16,786,600 | 1,034,660 | 0 | 16,786,600 | N/A | 0 |
| of China Co., Ltd.-Huatai-PineBridge CSI 300 Trading Open Index Securities Investment Fund | |||||
| Strategic investors or general legal persons who become the top 10 shareholders due to the issuance of new shares | Among the aforementioned shareholders, the National Manufacturing Transformation and Upgrading Fund Co., Ltd., Jilin Province Private Equity Co., Ltd., Agricultural Bank of China Co., Ltd. – Xingquan CSI 300 Index Enhanced Securities Investment Fund (LOF), Jilin Province Yandong State-Owned Capital Investment Co., Ltd., UBS AG and other investors have become the Company's top ten shareholders through the Company's private placement of shares. The listing date for their subscribed shares is October 21, 2024, with a 6-month lock-up period. | ||||
| Description of correlation or concerted action of the above shareholders | Among the above shareholders, FAW Bestune is a holding subsidiary of FAW, and is a person acting in concert as specified in the Regulations for the Takeover of Listed Companies. The public disclosure data indicates that the Company does not know whether there is a correlation between other shareholders of outstanding shares, nor whether other shareholders of outstanding shares are persons acting in concert as specified in the Regulations for the Takeover of Listed Companies. | ||||
| Description of involvement of the above shareholders in entrusting/entrusted voting rights and waiving voting rights | N/A | ||||
| Special description of the existence of repurchase special accounts among the top 10 shareholders | N/A | ||||
| Shareholding of Top 10 Shareholders with Unrestricted Ordinary Shares | |||||
| Name of Shareholder | Number of Unrestricted Shares Held at the End of the Reporting Period | Type of Shares | |||
| Type of Shares | Qty. | ||||
| China FAW Co., Ltd. | 3,060,649,901 | CNY ordinary shares | 3,060,649,901 | ||
| FAW Bestune Auto Co., Ltd. | 784,500,000 | CNY ordinary shares | 784,500,000 | ||
| Hong Kong Securities Clearing Company Ltd. | 60,473,693 | CNY ordinary shares | 60,473,693 |
| Qu Hongzhen | 36,096,590 | CNY ordinary shares | 36,096,590 |
| Industrial and Commercial Bank of China Co., Ltd.-Huatai-PineBridge CSI 300 Trading Open Index Securities Investment Fund | 16,786,600 | CNY ordinary shares | 16,786,600 |
| China Construction Bank Corporation Co., Ltd. – E Fund CSI 300 Exchange-Traded Open-End Index Initiated Fund (ETF) | 11,717,100 | CNY ordinary shares | 11,717,100 |
| Liang Jianhui | 10,011,500 | CNY ordinary shares | 10,011,500 |
| Chao Guo | 8,460,758 | CNY ordinary shares | 8,460,758 |
| Industrial and Commercial Bank of China Co., Ltd. – ChinaAMC CSI 300 Exchange-Traded Open-End Index Fund | 7,795,100 | CNY ordinary shares | 7,795,100 |
| Bank of China Limited – Harvest CSI 300 Exchange-Traded Open-End Index Fund | 7,383,401 | CNY ordinary shares | 7,383,401 |
| Description of correlation or concerted action between the top 10 shareholders of unrestricted shares, and between the top 10 shareholders of unrestricted shares and the top 10 shareholders | Among the above shareholders, FAW Bestune is a holding subsidiary of FAW, and is a person acting in concert as specified in the Regulations for the Takeover of Listed Companies. The public disclosure data indicates that the Company does not know whether there is a correlation between other shareholders of outstanding shares, nor whether other shareholders of outstanding shares are persons acting in concert as specified in the Regulations for the Takeover of Listed Companies. | ||
| Description of participation in financing bonds business of top 10 shareholders with ordinary shares | The overseas natural person Qu Hongzhen holds 36,096,590 shares of the Company through the customer credit trading securities account of CITIC Securities Company Limited. | ||
Participation in securities lending business by shareholders holding more than 5%, top 10shareholders, and top 10 shareholders of unrestricted tradable shares?Applicable □Not applicable
| Participation in securities lending business by shareholders holding more than 5%, top 10 shareholders, and top 10 shareholders of unrestricted tradable shares | ||||
| Name of Shareholder (Full Name) | Initial ordinary account, credit account shareholding | Initial refinancing lending shares and not yet returned | Ending ordinary account, credit account shareholding | Shares lent at the end of the period of refinancing and not yet returned |
| Total Quantity | Proportion to Total Share Capital | Total Quantity | Proportion to Total Share Capital | Total Quantity | Proportion to Total Share Capital | Total Quantity | Proportion to Total Share Capital | |
| Industrial and Commercial Bank of China Co., Ltd.-Huatai-PineBridge CSI 300 Trading Open Index Securities Investment Fund | 6,440,000 | 0.14% | 568,300 | 0.01% | 16,786,600 | 0.34% | 0 | 0.00% |
| China Construction Bank Corporation Co., Ltd. – E Fund CSI 300 Exchange-Traded Open-End Index Initiated Fund (ETF) | 2,295,300 | 0.05% | 315,400 | 0.01% | 11,717,100 | 0.24% | 0 | 0.00% |
| Industrial and Commercial Bank of China Co., Ltd. – ChinaAMC CSI 300 Exchange-Traded Open-End Index Fund | 1,636,600 | 0.04% | 379,500 | 0.01% | 7,795,100 | 0.16% | 0 | 0.00% |
| Bank of China Limited – Harvest CSI 300 Exchange-Traded Open-End Index Fund | 2,014,201 | 0.04% | 183,700 | 0.00% | 7,383,401 | 0.15% | 0 | 0.00% |
Changes in the top 10 shareholders and top 10 shareholders of unrestricted tradable sharescompared to the previous period due to securities lending/return activities
□Applicable ?Not applicable
Do the top 10 shareholders with ordinary shares and the top 10 shareholders with unrestrictedordinary shares of the Company conduct agreed repurchase transactions in the reporting period
□Yes ?No
The top 10 shareholders with ordinary shares and the top 10 shareholders with unrestricted ordinaryshares of the Company do not conduct agreed repurchase transactions in the reporting period
2. Information on Controlling Shareholders of the Company
Nature of controlling shareholder: central state-owned holdingType of controlling shareholder: legal person
| Name of Controlling Shareholder | Legal Representative/Person in Charge | Date of Establishment | Organization code | Main Business |
| China FAW Co., Ltd. | Qiu Xiandong | June 28, 2011 | 91220101571145270J | Automobile manufacturing and remanufacturing, new energy vehicle manufacturing; Design, development, manufacturing, and sales of automobile parts including engines and transmissions; Metal casting and forging, mold processing; Engineering technology research and testing; Professional technical services; Computer and software services; Thermal power generation and electricity supply; Heat production and supply; Water and gas supply; |
| Road freight transport; Warehousing; Sales of mechanical equipment, hardware and electrical appliances, electronic products and automotive materials; Machinery equipment leasing; Advertising design, production and publishing; Business services; Labor services; Automobile and used car sales (activities prohibited by laws, regulations and State Council decisions are not permitted; projects requiring approval by law may only be conducted after approval by relevant departments)** | ||
| Equity of Other Domestic and Foreign Listed Companies Controlled and Participated by Controlling Shareholders in the Reporting Period | N/A | |
Changes in controlling shareholders in the reporting period
□Applicable ?Not applicable
There was no change in the controlling shareholders of the Company during the reporting period.
3. Company's Actual Controllers and Persons Acting in Concert
Nature of actual controller: central state-owned assets management organizationType of actual controller: legal person
| Name of Actual Controller | Legal Representative/Person in Charge | Date of Establishment | Organization code | Main Business |
| State-owned Assets Supervision and Administration Commission of the State Council | N/A | N/A | N/A | |
| Equity of Other Domestic and Foreign Listed Companies Controlled by Actual Controllers in the Reporting Period | N/A | |||
Change of actual controller in the reporting period
□Applicable ?Not applicable
There was no change in the actual controller of the Company during the reporting period.Block Diagram of Property Right and Control Relationship between the Company and the ActualControllers
The actual controllers control the Company by trust or other asset management methods
□Applicable ?Not applicable
Ownership and Control Structure Between the Company and its Ultimate Controlling
ShareholderSASAC of the State Council
SASAC of the State CouncilChina FAW Group Co., Ltd.
China FAW Group Co., Ltd.China FAW Co., Ltd.
China FAW Co., Ltd.FAW Equity Investment (Tianjin) Co., Ltd.
FAW Equity Investment (Tianjin) Co., Ltd.FAW Besturn Automobile Co., Ltd.
FAW Besturn Automobile Co., Ltd.FAW Jiefang Group Co., Ltd.
4. The cumulative number of pledged shares of the Company's controlling shareholder or thelargest shareholder and persons acting in concert accounts for 80% of the Company's sharesheld by them.
□Applicable ?Not applicable
5. Other Corporate Shareholders Holding More Than 10% of the Shares?Applicable □Not applicable
| Name of Corporate Shareholder | Legal Representative/Person in Charge | Date of Establishment | Registered Capital | Main Business or Management Activities |
| FAW Bestune Auto Co., Ltd. | Yang Xiao | June 28, 2019 | 2.5 billion yuan | Development, manufacturing, and sales of automobiles and parts (including new energy vehicles and their related batteries, motors, electronic controls, excluding flammable and explosive hazardous chemicals), travel vehicles and accessories, intelligent products and equipment; Automobile repair; Processing of non-standard equipment; Sales of mechanical parts and electromechanical products (excluding small cars);Used car sales; Used car sales; Car rental; Building and workshop rental; Ordinary road freight transport; Modern trade logistics services; Technical services and consulting in the automotive field; Internet-based automobile business; Import and export of goods and technologies (excluding publishing materials; excluding state-restricted or prohibited goods and technologies); Used car brokerage; Ancillary insurance agency services; Motor vehicle repair and maintenance; Recycling of scrapped motor vehicles; Dismantling of scrapped motor vehicles; |
Business training (excluding educationtraining, vocational skills training andother training requiring licenses); Retailand wholesale of stationery items; Salesof automobile decoration products;Lubricating oil sales; Internet of Thingstechnology development and services;Manufacturing of power transmission andcontrol equipment; Advertising designand agency; Advertising production;Advertising publishing (excluding radiostations, television stations, newspaperpublishers); Labor services (excludinglabor dispatch); Motor vehicle safetyinspection services; Artificial intelligencepublic data platform; Data processing andstorage support services; Internet dataservices; Inspection and testing services;General cargo warehousing (excludinghazardous chemicals and other projectsrequiring approval); Marketing planning;Computer and communication equipmentleasing; Conference and exhibitionservices; Mechanical equipment leasing;Type 1 value-added telecommunicationsbusiness; Type 2 value-addedtelecommunications business; Intellectualproperty services (projects requiringapproval by law may only be conductedafter approval by relevant departments).
6. Restricted Reduction of Shares Held by Controlling Shareholders, Actual Controllers,Restructuring Parties and Other Commitment Subjects
□Applicable ?Not applicable
IV. Specific Implementation of Share Repurchase in the Reporting PeriodImplementation progress of share repurchase
□Applicable ?Not applicable
Implementation Progress of Reducing Shareholding in Repurchased Shares by Centralized Bidding
□Applicable ?Not applicable
Section VIII Preferred Shares
□Applicable ?Not applicable
The Company has no preferred shares in the reporting period.
Section IX Bonds
□Applicable ?Not applicable
Section X Financial ReportI. Audit Report
| Type of Audit Opinion | Standard unqualified opinion |
| Signing Date of Audit Report | March 28, 2025 |
| Name of Audit Institution | Grant Thornton Certified Public Accountants (Special General Partnership) |
| Audit Report No. | ZTSZ (2025) No.110A005445 |
| Name of Certified Public Accountant | Wu Songlin, Yang Dongmin |
Text of Audit ReportAll shareholders of FAW JIEFANG GROUP CO., LTD.:
I. Audit OpinionWe have audited the financial statements of FAW Jiefang Group Co., Ltd. (hereinafter referredto as "FAW Jiefang"), including the Consolidated and the Company's Balance Sheets on December31, 2024, the Consolidated and the Company's Income Statements, the Consolidated and theCompany's Cash Flow Statements, and the Consolidated and the Company's Statements of Changesin Shareholders' Equity in 2024, and the Notes to Financial Statements for the year then ended.In our opinion, the attached financial statements were compiled as per the provisions ofAccounting Standards for Business Enterprises (ASBE) in all major aspects and can fairly present theconsolidated and FAW Jiefang's financial status as of December 31, 2024, as well as their businessperformance and cash flows for the year then ended.II. Basis for OpinionWe have conducted our audit in accordance with the Auditing Standards for Certified PublicAccountants of China. The section in the Auditor's Report titled "CPAs' Responsibilities for theAudit of the Financial Statements" further describes our responsibilities under these standards.We are independent of FAW Jiefang in accordance with the China Code of Ethics for CertifiedPublic Accountants, and we have fulfilled our other ethical responsibilities. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide a basis for our audit.
III. Key Audit MattersKey audit matters are those matters that, in our professional judgment, we consider to bemost significant to the audit of the financial statements for the period. These matters were
addressed in the context of our audit for the entire financial statements and the formation of ouropinions thereon. We do not declare a separate opinion on these matters.(I) Income RecognitionFor details of relevant information disclosure, refer to 26 in Note III and 44 in Note V to thefinancial statements.
1. Description
The sales revenue of FAW Jiefang mainly comes from the vehicle sales business. In 2024,FAW Jiefang realized an operating revenue of 58.5811063 billion yuan, with vehicle salesrevenue accounting for 54.0194902 billion yuan or 92.21% of the total. According to the specificmethod of income recognition of FAW Jiefang, the income is recognized when the completevehicle and its accessories have been delivered to the delivery location as agreed in the contract,and the customer has accepted the goods and obtained control of the goods. The vehicle salesincome has a significant impact on the financial statements of FAW Jiefang, so we identifiedincome recognition as a key audit matter.
2. Audit response
Our audit procedures mainly include:
(1) Understand the effectiveness of internal control design related to income recognition andtest the effectiveness of key control implementation;
(2) Analyze the income and gross profit rate in combination with the product type andcompare them with the data of the same industry to judge whether the income and gross profitrate in the current period are abnormal;
(3) Interview with the management, check the terms of the sales contract, analyze and judgethe time point of the control the right transfer of vehicle sales, and evaluate the rationality of theincome recognition policy;
(4) Conduct the spot check on the supporting documents related to income recognition,including sales contracts, orders, sales invoices, product transportation documents, customerreceipts, etc.;
(5) Execute transaction and correspondence confirmation for the sales business of major andnew customers;
(6) For the sales revenue recognized before and after the balance sheet date, check the basisfor customer receipt confirmation and evaluate whether the sales revenue is recorded in theappropriate period.
(II) Provision for Decline in Value of InventoriesFor details of relevant information disclosure, refer to 13 in Note III and 7 in Note V to thefinancial statements.
1. Description
As of December 31, 2024, the book balance of inventory of FAW Jiefang was 10,559.2658million yuan, and the balance of inventory depreciation reserves was 442.0526 million yuan, ofwhich 352.6635 million yuan was provided in the current period. The provision amount for thedecline in the value of inventories is significant and requires a significant judgment of themanagement, so we identified the provision for the decline in the value of inventories as a keyaudit matter.
2. Audit response
Our audit procedures mainly include:
(1) Test and evaluate the design and operational effectiveness of key internal controls relatedto the provision for inventory depreciation reserves by the management;
(2) Obtain the Calculation Sheet of Inventory Depreciation Reserves of FAW Jiefang,conduct inventory depreciation tests, analyze the changes in the provision for inventorydepreciation reserves made in previous years and analyze whether the provision for inventorydepreciation reserves in the current period is sufficient;
(3) Check the quantity and status of inventories in combination with the inventorysupervision procedures, focus on checking long-aged inventories, and analyze the adequacy ofprovision for depreciation reserves of inventories with signs of impairment;
(4) Check the changes in the provision for inventory depreciation reserves made in previousyears in the current period and analyze the rationality of the changes in the inventory depreciationreserves.
(III) Provision for Product Quality Guarantee Deposit
For details of relevant information disclosure, refer to 24 in Note III and 35 in Note V to thefinancial statements.
1. Description
As of December 31, 2024, FAW Jiefang has provided a product quality deposit of 649.9343million yuan in the current year, and the balance of a product quality deposit in the estimatedliabilities is 951.5131 million yuan. Based on the vehicle sales contract and relevant national laws
and regulations, customers can obtain warranty services provided by FAW Jiefang within thewarranty period. The management of FAW Jiefang calculates the product quality deposit basedon the relevant provisions in the product type, warranty period and warranty obligation clauses.The provision amount of product quality guarantee deposit is relatively large and involvessignificant estimation and judgment of the management, so we identified the provision for productquality guarantee deposit as a key audit matter.
2. Audit response
Our audit procedures mainly include:
(1) Test and evaluate the effectiveness of key internal control design and operation of keyinternal controls related to the provision for product quality deposit;
(2) Understand and evaluate whether the accounting policies related to the provision forproduct quality deposit are appropriate and consistently applied;
(3) Understand and evaluate the rationality of the method and calculation model adopted byFAW Jiefang for the provision of the product quality deposit according to laws, regulations andcontract terms;
(4) Perform recalculation procedures to verify the accuracy of the management's provisionfor product quality deposit.
IV. Other Information
The management of FAW Jiefang is responsible for other information. Other information isincluded in the Annual Report of Year 2024 of FAW Jiefang but does not include the financialstatements and our auditor's report thereon.
Our audit opinion on the financial statements does not cover other information, and we donot express an assurance conclusion of any kind on other information.
Based on our audit of the financial statements, our responsibility is to consider whether otherinformation has material inconsistency or seems to have material misstatement with the financialstatements or circumstances that we know during the audit while reading other information.
Based on the work we have performed, if we determine that other information is materiallymisstated, we should report that fact. In this regard, we have nothing to report.
V. Responsibilities of Management and Governance for the Financial Statements
The management of FAW Jiefang shall be responsible for preparing financial statements thatpresent fairly the data in accordance with the Accounting Standards for Business Enterprises, and
for designing, implementing and maintaining the internal controls as the management deemsnecessary to enable the preparation of financial statements free from material misstatement,whether due to fraud or error.
In preparation of the financial statement, the management is responsible for assessing FAWJiefang's sustainable operation ability, disclosing the sustainable operation-related items (ifapplicable) and applying sustainable operation assumptions, unless otherwise the managementplans to liquidate FAW Jiefang, stop operation or it has no other practical choice.The governance is responsible for supervising the financial reporting process of FAWJiefang.VI. CPAs' Responsibilities for the Audit of the Financial StatementsOur objective is to obtain reasonable assurance as to whether the financial statements as awhole are free from material misstatement caused by fraud or error, and to issue an Auditor'sReport containing our opinions. Reasonable assurance is a high level of assurance, but it does notguarantee that an audit conducted in accordance with auditing standards can always detect amaterial misstatement when it exists. Misstatements can arise from fraud or error and areconsidered material if, individually or in the aggregate, and they could reasonably be expected toinfluence the economic decisions users would take on the basis of these financial statements.We exercise professional judgment and maintain professional skepticism in carrying out ouraudit in accordance with the Auditing Standards. At the same time, we also:
(1) Identify and assess the risks of material misstatement of the financial statements, whetherdue to fraud or error, design and perform audit procedures responsive to those risks, and obtainaudit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk offailing to detect a material misstatement due to fraud is higher than that due to error, as fraud mayinvolve collusion, forgery, intentional omissions, misrepresentations, or overriding internalcontrols.
(2) Understand the internal controls related to the audit to design appropriate auditprocedures.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the Management.
(4) Conclude on the appropriateness of the Management's use of the going-concernassumption. Based on the audit evidence obtained, whether material uncertainty exists related toevents or conditions that may cast significant doubt on FAW Jiefang's ability to continue as agoing concern. If we conclude that a material uncertainty exists, we are required to draw attention
in 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 information available as ofthe date of the Auditor's Report. However, future events or conditions may cause FAW Jiefangto cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements andwhether the financial statements can fairly reflect the transactions and items.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of theentity or business activities within FAW Jiefang to express an opinion on the financial statements.We are responsible for guiding, supervising, and performing the group audit and assume allresponsibilities for our opinion.
We communicate with the Governance regarding, among other matters, the planned scopeand timing of the audit and significant audit findings, including any significant deficiencies ininternal control that we identify during our audit.
We also provide the governance with a statement regarding compliance with ethicalrequirements related to independence and communicate with the governance about allrelationships and other matters that could reasonably be considered to affect our independence,as well as related precautions (if applicable).
From the matters communicated with the governance, we determine those matters that wereof most significance in the audit of the financial statements of the current period and are, therefore,key audit matters. We have described these matters in the Auditor's Report, except that they areprohibited from being publicly disclosed as per the laws and regulations, or in rare cases, if anegative result may be caused by communicating some matter in the auditor's report as reasonablyexpected exceeds the benefit generated by the public interest, we determine not to communicatesuch matter in the auditor's report.II. Financial StatementsThe unit in the notes to the financial statement is Yuan
1. Consolidated balance sheet
Prepared by: FAW JIEFANG GROUP CO., LTD.
December 31, 2024
Unit: Yuan
| Item | Ending balance | Opening balance |
| Current assets: | ||
| Monetary capital | 19,852,961,021.66 | 23,545,580,404.39 |
| Settlement reserve fund | ||
| Loans to banks and other financial institutions | ||
| Financial assets held for trading | ||
| Derivative financial assets | ||
| Notes receivable | 2,641,582.80 | 44,626,048.13 |
| Accounts receivable | 7,067,296,142.54 | 2,343,108,649.14 |
| Accounts receivable financing | 10,019,816,248.98 | 4,878,126,972.73 |
| Prepayments | 128,639,159.47 | 690,905,098.74 |
| Premiums receivable | ||
| Reinsurance accounts receivable | ||
| Reinsurance contract reserves receivable | ||
| Other receivables | 1,340,633,312.48 | 1,320,113,974.68 |
| Including: interests receivable | ||
| Dividends receivable | 157,707,661.77 | |
| Financial assets purchased under agreements to resell | ||
| Inventories | 10,117,213,109.97 | 10,056,641,462.05 |
| Including: Data resources | ||
| Contract assets | 14,455,542.05 | 17,582,856.82 |
| Held-for-sale assets | ||
| Current portion of non-current assets | 377,668,442.06 | 386,692,620.64 |
| Other current assets | 1,413,638,174.22 | 1,044,189,313.04 |
| Total current assets | 50,334,962,736.23 | 44,327,567,400.36 |
| Non-current assets: | ||
| Loans and advances | ||
| Debt investment | ||
| Other debt investments | ||
| Long-term receivables | 110,911,235.61 | 132,031,253.27 |
| Long-term equity investments | 1,176,288,461.09 | 5,469,591,970.26 |
| Other equity instruments investments | 540,066,528.00 | 480,780,000.00 |
| Other non-current financial assets | ||
| Investment properties | 52,835,976.31 | 47,049,995.53 |
| Fixed assets | 11,198,300,572.20 | 11,480,849,245.90 |
| Project under construction | 688,181,815.22 | 816,484,299.18 |
| Productive biological assets | ||
| Oil and gas assets | ||
| Right-of-use assets | 104,360,320.57 | 150,436,856.00 |
| Intangible assets | 2,337,101,200.98 | 2,456,799,533.62 |
| Including: Data resources | ||
| Development expenditures | 500,611,951.24 | 109,873,830.59 |
| Including: Data resources | ||
| Goodwill | ||
| Long-term deferred expenses | ||
| Deferred income tax assets | 3,061,404,632.44 | 2,612,089,167.19 |
| Other non-current assets | 2,644,193,586.72 | 2,288,899.80 |
| Total non-current assets | 22,414,256,280.38 | 23,758,275,051.34 |
| Total assets | 72,749,219,016.61 | 68,085,842,451.70 |
| Current liabilities: | ||
| Short-term loans | ||
| Borrowing from the central bank | ||
| Placements from banks and other financial institutions | ||
| Financial liabilities held for trading | ||
| Derivative financial liabilities | ||
| Notes payable | 15,370,906,363.16 | 11,769,864,678.11 |
| Accounts payable | 17,246,353,969.05 | 17,717,604,892.29 |
| Advance receipts | 674,009.56 | 641,221.46 |
| Contract liabilities | 2,430,554,164.50 | 2,320,672,076.22 |
| Financial assets sold under agreement to repurchase | ||
| Deposits taking and interbank deposits | ||
| Acting trading securities | ||
| Acting underwriting securities | ||
| Employee compensation payable | 1,043,554,896.06 | 405,282,727.48 |
| Taxes payable | 215,532,903.02 | 181,964,139.60 |
| Other payables | 4,526,208,921.23 | 5,312,303,775.91 |
| Including: interests payable | ||
| Dividends payable | 171,500.02 | 171,500.02 |
| Handling charges and commissions payable | ||
| Reinsurance accounts payable |
| Held-for-sale liabilities | ||
| Current portion of non-current liabilities | 29,941,701.02 | 131,610,199.37 |
| Other current liabilities | 217,767,924.33 | 215,994,896.62 |
| Total current liabilities | 41,081,494,851.93 | 38,055,938,607.06 |
| Non-current liabilities: | ||
| Insurance contract reserve | ||
| Long-term loans | ||
| Bonds payable | ||
| Including: preferred shares | ||
| Perpetual Bond | ||
| Lease liabilities | 27,431,600.64 | 37,973,873.14 |
| Long-term payables | ||
| Long-term employee compensation payable | 692,790,054.95 | 672,957,633.25 |
| Estimated liabilities | 992,714,878.02 | 852,994,560.56 |
| Deferred income | 2,936,362,847.77 | 2,983,678,367.53 |
| Deferred income tax liabilities | 423,775,650.57 | 434,889,825.54 |
| Other non-current liabilities | ||
| Total non-current liabilities | 5,073,075,031.95 | 4,982,494,260.02 |
| Total liabilities | 46,154,569,883.88 | 43,038,432,867.08 |
| Owner's equities: | ||
| Share capital | 4,922,371,176.00 | 4,636,485,668.00 |
| Other equity instruments | ||
| Including: preferred shares | ||
| Perpetual Bond | ||
| Capital reserves | 11,961,480,047.74 | 10,717,437,551.72 |
| Less: treasury shares | 6,246,851.73 | 86,131,497.27 |
| Other comprehensive incomes | -96,912,346.71 | -127,199,418.40 |
| Special reserves | 277,345,883.15 | 319,314,527.85 |
| Surplus reserves | 3,204,548,247.40 | 3,095,513,675.93 |
| General risk provision | ||
| Undistributed profits | 6,055,339,906.81 | 6,246,533,634.66 |
| Total equity attributable to owners of the parent company | 26,317,926,062.66 | 24,801,954,142.49 |
| Minority equity | 276,723,070.07 | 245,455,442.13 |
| Total owners' equity | 26,594,649,132.73 | 25,047,409,584.62 |
| Total liabilities and owner's equities | 72,749,219,016.61 | 68,085,842,451.70 |
Legal representative: Li Sheng Person in charge of accounting: Yu Changxin Person in charge of the accountingorganization: Fan Chao
2. Balance sheet of parent company
Unit: Yuan
| Item | Ending balance | Opening balance |
| Current assets: | ||
| Monetary capital | 152,222,868.42 | 165,157,237.21 |
| Financial assets held for trading | ||
| Derivative financial assets | ||
| Notes receivable | ||
| Accounts receivable | ||
| Accounts receivable financing | ||
| Prepayments | 84,000.00 | |
| Other receivables | 6,470,963,348.86 | 219,864.00 |
| Including: interests receivable | ||
| Dividends receivable | 156,960,226.90 | |
| Inventories | ||
| Including: Data resources | ||
| Contract assets | ||
| Held-for-sale assets | ||
| Current portion of non-current assets | ||
| Other current assets | 653,349.48 | 261,636.19 |
| Total current assets | 6,623,839,566.76 | 165,722,737.40 |
| Non-current assets: | ||
| Debt investment | ||
| Other debt investments | ||
| Long-term receivables | ||
| Long-term equity investments | 21,795,117,325.10 | 25,594,049,970.19 |
| Other equity instruments investments | ||
| Other non-current financial assets | ||
| Investment properties | ||
| Fixed assets | ||
| Project under construction | ||
| Productive biological assets | ||
| Oil and gas assets | ||
| Right-of-use assets | ||
| Intangible assets |
| Including: Data resources | ||
| Development expenditures | ||
| Including: Data resources | ||
| Goodwill | ||
| Long-term deferred expenses | ||
| Deferred income tax assets | ||
| Other non-current assets | ||
| Total non-current assets | 21,795,117,325.10 | 25,594,049,970.19 |
| Total assets | 28,418,956,891.86 | 25,759,772,707.59 |
| Current liabilities: | ||
| Short-term loans | ||
| Financial liabilities held for trading | ||
| Derivative financial liabilities | ||
| Notes payable | ||
| Accounts payable | 2,727,107.71 | 250,327.84 |
| Advance receipts | ||
| Contract liabilities | ||
| Employee compensation payable | ||
| Taxes payable | 3,164,670.01 | 3,368,528.10 |
| Other payables | 342,246,068.80 | 90,343,250.16 |
| Including: interests payable | ||
| Dividends payable | 171,500.02 | 171,500.02 |
| Held-for-sale liabilities | ||
| Current portion of non-current liabilities | ||
| Other current liabilities | ||
| Total current liabilities | 348,137,846.52 | 93,962,106.10 |
| Non-current liabilities: | ||
| Long-term loans | ||
| Bonds payable | ||
| Including: preferred shares | ||
| Perpetual Bond | ||
| Lease liabilities | ||
| Long-term payables | ||
| Long-term employee compensation payable | ||
| Estimated liabilities |
| Deferred income | ||
| Deferred income tax liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | ||
| Total liabilities | 348,137,846.52 | 93,962,106.10 |
| Owner's equities: | ||
| Share capital | 4,922,371,176.00 | 4,636,485,668.00 |
| Other equity instruments | ||
| Including: preferred shares | ||
| Perpetual Bond | ||
| Capital reserves | 13,802,357,345.82 | 12,171,693,342.10 |
| Less: treasury shares | 6,246,851.73 | 86,131,497.27 |
| Other comprehensive incomes | 12,671,266.92 | 863,137.93 |
| Special reserves | ||
| Surplus reserves | 1,968,725,127.44 | 1,859,690,555.97 |
| Undistributed profits | 7,370,940,980.89 | 7,083,209,394.76 |
| Total owners' equity | 28,070,819,045.34 | 25,665,810,601.49 |
| Total liabilities and owner's equities | 28,418,956,891.86 | 25,759,772,707.59 |
3. Consolidated profit statement
Unit: Yuan
| Item | 2024 | 2023 |
| I. Total operating income | 58,581,106,258.53 | 64,324,640,770.64 |
| Including: operating income | 58,581,106,258.53 | 64,324,640,770.64 |
| Interest income | ||
| Premium earned | ||
| Handling charges and commission income | ||
| II. Total operating cost | 59,785,978,592.21 | 64,774,277,946.69 |
| Including: operating cost | 54,908,076,523.43 | 59,401,367,343.49 |
| Interest expense | ||
| Handling charges and commission expense | ||
| Surrender value | ||
| Net payments for insurance claims | ||
| Net allotment of reserves for insurance liabilities | ||
| Policy dividend expenditure | ||
| Reinsurance expenses | ||
| Taxes and surcharges | 220,408,020.64 | 263,881,839.13 |
| Sales expenses | 1,273,327,595.92 | 1,103,598,712.10 |
| Administrative expenses | 1,780,652,477.10 | 1,956,239,032.27 |
| R&D expenses | 2,409,485,641.76 | 2,982,257,879.16 |
| Financial expenses | -805,971,666.64 | -933,066,859.46 |
| Including: interest expenses | 2,594,098.03 | 4,228,160.85 |
| Interest income | 619,382,020.15 | 810,531,561.26 |
| Add: Other income | 1,129,409,077.07 | 613,391,651.76 |
| Investment income (loss to be listed with "-") | 629,692,626.51 | 282,328,848.08 |
| Including: income from investment in associates and joint ventures | 310,581,812.67 | 347,980,074.28 |
| Gains on derecognition of financial assets at amortized cost | ||
| Foreign exchange gains (loss to be listed with "-") | ||
| Net exposure hedging income (loss to be listed with "-") | ||
| Profit arising from changes in fair value (loss to be listed with "-") | ||
| Credit impairment loss (loss to be listed with "-") | 54,491,805.98 | -95,384,424.83 |
| Asset impairment loss (loss to be listed with "-") | -352,823,109.54 | -192,267,861.91 |
| Income from assets disposal (loss to be listed with "-") | -2,556,989.65 | 192,668,373.15 |
| III. Operating profit (loss to be listed with "-") | 253,341,076.69 | 351,099,410.20 |
| Add: non-operating income | 101,492,545.66 | 197,837,768.23 |
| Less: non-operating expenses | 28,784,917.57 | 27,525,146.98 |
| IV. Total profit (loss to be listed with "-") | 326,048,704.78 | 521,412,031.45 |
| Less: Income tax expenses | -333,222,447.51 | -306,887,662.21 |
| V. Net profit (net loss to be listed with "-") | 659,271,152.29 | 828,299,693.66 |
| (I) Classified by continuity of operation | ||
| 1. Net profit from continuing operations (net loss to be listed with "-") | 659,271,152.29 | 828,299,693.66 |
| 2. Net profit from discontinuing operations (net loss to be listed with "-") | ||
| (II) Classified by attribution of the ownership | ||
| 1. Net profit attributable to the parent company's shareholders | 622,427,699.65 | 806,096,685.30 |
| 2. Minority interests | 36,843,452.64 | 22,203,008.36 |
| VI. Net after-tax amount of other comprehensive income | 33,703,948.06 | -10,185,931.92 |
| Net after-tax amount of other comprehensive income attributable to the owners of the parent company | 30,279,772.76 | -7,777,554.53 |
| (I) Other comprehensive incomes that cannot be reclassified into profits or losses | 27,627,126.17 | -4,710,588.55 |
| 1. Changes arising from re-measurement of the defined benefit plan | -49,140,000.00 | -5,170,000.00 |
| 2. Other comprehensive incomes that cannot be transferred to profits or losses under the equity method | 17,480,598.17 | 459,411.45 |
| 3. Changes in fair value of investment in other equity instruments | 59,286,528.00 |
| 4. Changes in the fair value of the Company's credit risk | ||
| 5. Others | ||
| (II) Other comprehensive incomes that will be reclassified into profits or losses | 2,652,646.59 | -3,066,965.98 |
| 1. Other comprehensive incomes that can be transferred to profits or losses under the equity method | -5,729,510.11 | 871,354.25 |
| 2. Changes in the fair value of other debt investments | ||
| 3. Amount of financial assets reclassified into other comprehensive incomes | ||
| 4. Other debt investment credit impairment provisions | ||
| 5. Cash flow hedging reserve | ||
| 6. Translation difference in foreign currency financial statements | 8,382,156.70 | -3,938,320.23 |
| 7. Others | ||
| Net after-tax amount of other comprehensive income attributable to minority shareholders | 3,424,175.30 | -2,408,377.39 |
| VII. Total comprehensive income | 692,975,100.35 | 818,113,761.74 |
| Total comprehensive income attributable to the owners of the parent company | 652,707,472.41 | 798,319,130.77 |
| Total comprehensive income attributable to minority shareholders | 40,267,627.94 | 19,794,630.97 |
| VIII. Earnings per share: | ||
| (I) Basic income per share | 0.1266 | 0.1805 |
| (II) Diluted income per share | 0.1266 | 0.1805 |
In the case of a business merger under common control in the current period, the net profit realized by the combinedparty before the merger and that in the previous period are 132,844,483.67 yuan and 68,387,521.68 yuan.Legal representative: Li Sheng Person in charge of accounting: Yu Changxin Person in charge of the accountingorganization: Fan Chao
4. Profit statement of parent company
Unit: Yuan
| Item | 2024 | 2023 |
| I. Operating income | 0.00 | 0.00 |
| Less: operating costs | 0.00 | 0.00 |
| Taxes and surcharges | 3,166,349.56 | 93,606.12 |
| Sales expenses | ||
| Administrative expenses | 6,547,907.38 | 3,496,572.38 |
| R&D expenses | ||
| Financial expenses | -2,851,411.56 | 465,699.73 |
| Including: interest expenses | 319,616.24 | 644,156.98 |
| Interest income | 3,172,289.49 | 184,637.25 |
| Add: Other incomes | 57,741.82 | 344,768.40 |
| Investment income (loss to be listed with "-") | 1,097,043,292.58 | 325,302,522.88 |
| Including: income from investment in associates and joint ventures | 274,277,967.89 | 325,302,522.88 |
| Gains on derecognition of financial assets at amortized cost (loss to be listed with "-") | ||
| Net exposure hedging income (loss to be listed with "-") | ||
| Profit arising from changes in fair value (loss to be listed with "-") | ||
| Credit impairment loss (loss to be listed with "-") | 114,430.26 | -4,268.76 |
| Asset impairment loss (loss to be listed with "-") | ||
| Income from assets disposal (loss to be listed with "-") | ||
| II. Operating profit (loss to be listed with "-") | 1,090,352,619.28 | 321,587,144.29 |
| Add: non-operating income | 394.35 | |
| Less: non-operating expenses | ||
| III. Total profit (total loss to be listed with "-") | 1,090,353,013.63 | 321,587,144.29 |
| Less: Income tax expenses | ||
| IV. Net profit (net loss to be listed with "-") | 1,090,353,013.63 | 321,587,144.29 |
| (I) Net profit from continuing operations (net loss to be listed with "-") | 1,090,353,013.63 | 321,587,144.29 |
| (II) Net profit from discontinuing operations (net loss to be listed with "-") | ||
| V. Net after-tax amount of other comprehensive incomes | 11,800,830.06 | 1,343,932.70 |
| (I) Other comprehensive incomes that cannot be reclassified into profits or losses | 17,530,340.17 | 472,578.45 |
| 1. Changes arising from re-measurement of the defined benefit plan | ||
| 2. Other comprehensive incomes that cannot be transferred to profits or losses under the equity method | 17,530,340.17 | 472,578.45 |
| 3. Changes in fair value of investment in other equity instruments | ||
| 4. Changes in the fair value of the Company's credit risk | ||
| 5. Others | ||
| (II) Other comprehensive incomes that will be reclassified into profits or losses | -5,729,510.11 | 871,354.25 |
| 1. Other comprehensive incomes that can be transferred to profits or losses under the equity method | -5,729,510.11 | 871,354.25 |
| 2. Changes in the fair value of other debt investments | ||
| 3. Amount of financial assets reclassified into other comprehensive incomes | ||
| 4. Other debt investment credit impairment provisions | ||
| 5. Cash flow hedging reserve | ||
| 6. Translation difference in foreign currency financial statements | ||
| 7. Others | ||
| VI. Total comprehensive income | 1,102,153,843.69 | 322,931,076.99 |
| VII. Income per share: |
| (I) Basic income per share | ||
| (II) Diluted income per share |
5. Consolidated cash flow statement
Unit: Yuan
| Item | 2024 | 2023 |
| I. Cash flows from operating activities: | ||
| Cash received from sales of goods and provision of services | 54,819,630,825.44 | 61,772,979,886.03 |
| Net increase in customer bank deposits due to banks and other financial institutions | ||
| Net increase in borrowings from the central bank | ||
| Net increase in placements from other financial institutions | ||
| Cash from a premium of the original insurance contract | ||
| Net cash received from reinsurance business | ||
| Net increase in deposits and investments from policyholders | ||
| Cash received from interests, handling charges and commissions | ||
| Net increase in placements from banks and other financial institutions | ||
| Net increase in repurchase business capital | ||
| Net cash received from securities brokerage | ||
| Tax refunds received | 145,692,795.01 | 887,649,958.36 |
| Other cash received relating to operating activities | 1,146,308,516.29 | 1,913,439,711.75 |
| Subtotal of cash inflows from operating activities | 56,111,632,136.74 | 64,574,069,556.14 |
| Cash paid for goods and services | 54,675,385,707.83 | 51,372,475,533.60 |
| Net increase in loans and advances to customers | ||
| Net increase in deposits with the central bank and other financial institutions | ||
| Cash paid for original insurance contract claims | ||
| Net increase in loans to banks and other financial institutions | ||
| Cash paid for interests, handling charges and commissions | ||
| Cash paid for policyholder dividend | ||
| Cash paid to and on behalf of employees | 4,710,884,428.17 | 5,340,718,511.51 |
| Taxes paid | 1,151,234,164.25 | 2,001,039,146.79 |
| Cash paid for other operating activities | 1,424,414,143.54 | 1,770,162,970.46 |
| Subtotal of cash outflows from operating activities | 61,961,918,443.79 | 60,484,396,162.36 |
| Net cash flows from operating activities | -5,850,286,307.05 | 4,089,673,393.78 |
| II. Cash flows from investment activities: | ||
| Cash received from the return on investment | 4,357,068,905.33 | |
| Cash received from the acquirement of investment income | 574,641,722.82 | 299,242,143.02 |
| Net cash received from the disposal of fixed assets, intangible assets and other long-term assets | 167,582,454.39 | 105,700,761.87 |
| Net cash received from the disposal of subsidiaries and other business entities | ||
| Cash received from other investment activities | ||
| Subtotal of cash inflows from investment activities | 5,099,293,082.54 | 404,942,904.89 |
| Cash paid to acquire fixed assets, intangible assets and other long-term assets | 1,513,680,646.75 | 2,252,066,814.63 |
| Cash paid to for investment | 4,900,000.00 | 529,266,800.00 |
| Net increase in pledged loans | ||
| Net cash paid to acquire subsidiaries and other business units | 220,832,137.93 | |
| Other cash paid relating to investment activities | 2,400,000,000.00 | 17,676,304.33 |
| Subtotal of cash outflows from investment activities | 4,139,412,784.68 | 2,799,009,918.96 |
| Net cash flows from investment activities | 959,880,297.86 | -2,394,067,014.07 |
| III. Cash flows from financing activities: | ||
| Cash received from absorbing investment | 1,999,915,089.75 | |
| Including: Cash received by subsidiaries absorbing minority shareholders' investments | ||
| Cash received from borrowings | ||
| Cash received relating to other financing activities | 16,400,000.00 | |
| Subtotal of cash inflows from financing activities | 1,999,915,089.75 | 16,400,000.00 |
| Cash paid for repayment of debts | 99,890,000.00 | |
| Cash paid for distribution of dividends, profits or interest repayment | 713,696,364.17 | |
| Including: dividends and profits paid to minority shareholders by subsidiaries | 20,000,000.00 | |
| Other cash paid relating to financing activities | 16,667,194.16 | 28,987,570.03 |
| Subtotal of cash outflows from financing activities | 830,253,558.33 | 28,987,570.03 |
| Net cash flows from financing activities | 1,169,661,531.42 | -12,587,570.03 |
| IV. Effects from change of exchange rate on cash and cash equivalents | 3,231,527.59 | -3,046,363.70 |
| V. Net increase in cash and cash equivalents | -3,717,512,950.18 | 1,679,972,445.98 |
| Add: opening balance of cash and cash equivalents | 23,108,714,054.86 | 21,428,741,608.88 |
| VI. Ending balance of cash and cash equivalents | 19,391,201,104.68 | 23,108,714,054.86 |
6. Cash flow statement of parent company
Unit: Yuan
| Item | 2024 | 2023 |
| I. Cash flows from operating activities: | ||
| Cash received from sales of goods and provision of services | ||
| Tax refunds received | ||
| Other cash received relating to operating activities | 884,438,956.93 | 100,021,565.10 |
| Subtotal of cash inflows from operating activities | 884,438,956.93 | 100,021,565.10 |
| Cash paid for goods and services | ||
| Cash paid to and on behalf of employees | 378,000.00 | 378,000.00 |
| Taxes paid | 99,071.82 | |
| Cash paid for other operating activities | 7,100,228,311.31 | 226,723,494.82 |
| Subtotal of cash outflows from operating activities | 7,100,606,311.31 | 227,200,566.64 |
| Net cash flows from operating activities | -6,216,167,354.38 | -127,179,001.54 |
| II. Cash flows from investment activities: | ||
| Cash received from the return on investment | 4,357,068,905.33 | |
| Cash received from the acquirement of investment income | 920,317,192.20 | 288,101,230.25 |
| Net cash received from the disposal of fixed assets, intangible assets and other long-term assets | ||
| Net cash received from the disposal of subsidiaries and other business entities | ||
| Cash received from other investment activities | ||
| Subtotal of cash inflows from investment activities | 5,277,386,097.53 | 288,101,230.25 |
| Cash paid to acquire fixed assets, intangible assets and other long-term assets | ||
| Cash paid to for investment | 380,371,837.52 | |
| Net cash paid to acquire subsidiaries and other business units | ||
| Other cash paid relating to investment activities | ||
| Subtotal of cash outflows from investment activities | 380,371,837.52 | |
| Net cash flows from investment activities | 4,897,014,260.01 | 288,101,230.25 |
| III. Cash flows from financing activities: | ||
| Cash received from absorbing investment | 1,999,915,089.75 | |
| Cash received from borrowings | ||
| Cash received relating to other financing activities | ||
| Subtotal of cash inflows from financing activities | 1,999,915,089.75 | |
| Cash paid for repayment of debts | ||
| Cash paid for distribution of dividends, profits or interest repayment | 693,696,364.17 | |
| Other cash paid relating to financing activities | ||
| Subtotal of cash outflows from financing activities | 693,696,364.17 | |
| Net cash flows from financing activities | 1,306,218,725.58 | |
| IV. Effects from change of exchange rate on cash and cash equivalents | ||
| V. Net increase in cash and cash equivalents | -12,934,368.79 | 160,922,228.71 |
| Add: opening balance of cash and cash equivalents | 165,157,237.21 | 4,235,008.50 |
| VI. Ending balance of cash and cash equivalents | 152,222,868.42 | 165,157,237.21 |
7. Consolidated statement of changes in owners' equity
Amount in the current period
Unit: Yuan
| Item | 2024 | ||||||||||||||
| Equity Attributable To Owners of the Parent Company | Minority equity | Total owners' equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: treasury shares | Other comprehensive incomes | Special reserves | Surplus reserves | General risk provision | Undistributed profits | Others | Subtotal | |||||
| Preferred Shares | Perpetual Bond | Others | |||||||||||||
| I. Ending balance of the previous year | 4,636,485,668 | 10,343,418,951.73 | 86,131,497.27 | -8,514,110.10 | 319,314,527.85 | 3,090,408,316.87 | 6,191,777,512.32 | 24,486,759,369.40 | 24,486,759,369.40 | ||||||
| Add: changes in accountin | |||||||||||||||
| g policies | |||||||||||||||
| Correction of prior period errors | |||||||||||||||
| Others | 374,018,599.99 | -118,685,308.30 | 5,105,359.06 | 54,756,122.34 | 315,194,773.09 | 245,455,442.13 | 560,650,215.22 | ||||||||
| II. Opening balance of the current year | 4,636,485,668 | 10,717,437,551.72 | 86,131,497.27 | -127,199,418.40 | 319,314,527.85 | 3,095,513,675.93 | 6,246,533,634.66 | 24,801,954,142.49 | 245,455,442.13 | 25,047,409,584.62 | |||||
| III. Increase/decrease in the amount of the current period (decrease to be | 285,885,508 | 1,244,042,496.02 | -79,884,645.54 | 30,287,071.69 | -41,968,644.70 | 109,034,571.47 | -191,193,727.85 | 1,515,971,920.17 | 31,267,627.94 | 1,547,239,548.11 |
| listed with "-") | |||||||||||||||
| (I) Total comprehensive income | 30,279,772.76 | 622,427,699.65 | 652,707,472.41 | 40,267,627.94 | 692,975,100.35 | ||||||||||
| (II) Invested and decreased capital of owners | 285,885,508 | 1,244,042,496.02 | -79,884,645.54 | 1,609,812,649.56 | 1,609,812,649.56 | ||||||||||
| 1. Ordinary shares invested by owners | 285,885,508 | 1,632,043,242.50 | 1,917,928,750.50 | 1,917,928,750.50 | |||||||||||
| 2. Capital contributed by holders of |
| other equity instruments | |||||||||||||||
| 3. Amounts of share-based payments recorded in owner's equity | -2,522,576.52 | -2,522,576.52 | -2,522,576.52 | ||||||||||||
| 4. Others | -385,478,169.96 | -79,884,645.54 | -305,593,524.42 | -305,593,524.42 | |||||||||||
| (III) Profit distribution | 109,035,301.36 | -813,614,858.46 | -704,579,557.10 | -9,000,000.00 | -713,579,557.10 | ||||||||||
| 1. Appropriation to surplus reser | 109,035,301.36 | -109,035,301.36 |
| ves | |||||||||||||||
| 2. Appropriation to general risk reserves | |||||||||||||||
| 3. Distribution to owners (or shareholders) | -693,579,557.10 | -693,579,557.10 | -9,000,000.00 | -702,579,557.10 | |||||||||||
| 4. Others | -11,000,000.00 | -11,000,000.00 | -11,000,000.00 | ||||||||||||
| (IV) Internal carryover of owners' equity | 7,298.93 | -729.89 | -6,569.04 | ||||||||||||
| 1. Transfer from |
| capital reserve to paid-in capital (or share capital) | |||||||||||||||
| 2. Transfer from surplus reserves to paid-in capital (or share capital) | |||||||||||||||
| 3. Recovery of losses by surplus reserves | |||||||||||||||
| 4. |
| Retained earnings carried forward from changes in defined benefit plans | |||||||||||||||
| 5. Retained earnings carried forward from other comprehensive income | 7,298.93 | -729.89 | -6,569.04 | ||||||||||||
| 6. Others | |||||||||||||||
| (V) Speci | -41,968,644.70 | -41,968,644.70 | -41,968,644.70 |
| al reserves | |||||||||||||||
| 1. Appropriation in the current period | 28,475,434.87 | 28,475,434.87 | 28,475,434.87 | ||||||||||||
| 2. Use in the current period | -70,444,079.57 | -70,444,079.57 | -70,444,079.57 | ||||||||||||
| (VI) Others | |||||||||||||||
| IV. Ending balance of the current period | 4,922,371,176 | 11,961,480,047.74 | 6,246,851.73 | -96,912,346.71 | 277,345,883.15 | 3,204,548,247.40 | 6,055,339,906.81 | 26,317,926,062.66 | 276,723,070.07 | 26,594,649,132.73 |
Amount of the Previous Period
Unit: Yuan
| Item | 2023 | ||
| Equity Attributable To Owners of the Parent Company | Minority equity | Total owners' equity | |
| Share capital | Other equity instruments | Capital reserves | Less: treasury shares | Other comprehensive incomes | Special reserves | Surplus reserves | General risk provision | Undistributed profits | Others | Subtotal | |||||
| Preferred Shares | Perpetual Bond | Others | |||||||||||||
| I. Ending balance of the previous year | 4,651,965,655 | 10,451,088,236.74 | 267,837,184.11 | -5,399,120.81 | 370,420,291.86 | 3,058,249,602.44 | 5,460,939,601.36 | 23,719,427,082.48 | 23,719,427,082.48 | ||||||
| Add: changes in accounting policies | -28,331.75 | -28,331.75 | -28,331.75 | ||||||||||||
| Correction of prior period errors | |||||||||||||||
| Others | 374,018,599.99 | -114,022,743.06 | 4,546,767.65 | 3,222,985.59 | 267,765,610.17 | 218,280,811.16 | 486,046,421.33 | ||||||||
| II. Opening balance of the current year | 4,651,965,655 | 10,825,106,836.73 | 267,837,184.11 | -119,421,863.87 | 370,420,291.86 | 3,062,796,370.09 | 5,464,134,255.20 | 23,987,164,360.90 | 218,280,811.16 | 24,205,445,172.06 | |||||
| III. Increase/decrease in the amount of the current period (decrease to be listed with "-") | -15,479,987 | -107,669,285.01 | -181,705,686.84 | -7,777,554.53 | -51,105,764.01 | 32,717,305.84 | 782,399,379.46 | 814,789,781.59 | 27,174,630.97 | 841,964,412.56 | |||||
| (I) Total comprehensive income | -7,777,554.53 | 806,096,685.30 | 798,319,130.77 | 19,794,630.97 | 818,113,761.74 | ||||||||||
| (II) Invested and decreased capital of owners | -15,479,987 | -107,669,285.01 | -181,705,686.84 | 58,556,414.83 | 58,556,414.83 | ||||||||||
| 1. Ordinary shares | -15,479,987 | -82,470,046.45 | -97,950,033.45 | -97,950,033.45 | |||||||||||
| invested by owners | |||||||||||||||
| 2. Capital contributed by holders of other equity instruments | |||||||||||||||
| 3. Amounts of share-based payments recorded in owner's equity | -24,775,825.33 | -24,775,825.33 | -24,775,825.33 | ||||||||||||
| 4. Others | -423,413.23 | -181,705,686.84 | 181,282,273.61 | 181,282,273.61 | |||||||||||
| (III) Profit distribution | 32,717,305.84 | -23,697,305.84 | 9,020,000.00 | 7,380,000.00 | 16,400,000.00 | ||||||||||
| 1. Appropriation to surplus reserves | 32,717,305.84 | -32,717,305.84 | |||||||||||||
| 2. Appropriation to general risk reserves | |||||||||||||||
| 3. Distribution to owners (or shareholders) | |||||||||||||||
| 4. Others | 9,020,000.00 | 9,020,000.00 | 7,380,000.00 | 16,400,000.00 | |||||||||||
| (IV) Internal carryover of owners' equity | |||||||||||||||
| 1. Transfer from capital reserve to paid-in capital |
| (or share capital) | |||||||||||||||
| 2. Transfer from surplus reserves to paid-in capital (or share capital) | |||||||||||||||
| 3. Recovery of losses by surplus reserves | |||||||||||||||
| 4. Retained earnings carried forward from changes in defined benefit plans | |||||||||||||||
| 5. Retained earnings carried forward from other comprehensive income | |||||||||||||||
| 6. Others | |||||||||||||||
| (V) Special reserves | -51,105,764.01 | -51,105,764.01 | -51,105,764.01 | ||||||||||||
| 1. Appropriation in the current period | 37,672,287.45 | 37,672,287.45 | 37,672,287.45 | ||||||||||||
| 2. Use in the current period | -88,778,051.46 | -88,778,051.46 | -88,778,051.46 |
| (VI) Others | |||||||||||||||
| IV. Ending balance of the current period | 4,636,485,668 | 10,717,437,551.72 | 86,131,497.27 | -127,199,418.40 | 319,314,527.85 | 3,095,513,675.93 | 6,246,533,634.66 | 24,801,954,142.49 | 245,455,442.13 | 25,047,409,584.62 |
8. Statement of Changes in Owners' Equity of Parent Company
Amount in the current period
Unit: Yuan
| Item | 2024 | |||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: treasury shares | Other comprehensive incomes | Special reserves | Surplus reserves | Undistributed profits | Others | Total owners' equity | |||
| Preferred Shares | Perpetual Bond | Others | ||||||||||
| I. Ending balance of the previous year | 4,636,485,668 | 12,171,693,342.10 | 86,131,497.27 | 863,137.93 | 1,859,690,555.97 | 7,083,209,394.76 | 25,665,810,601.49 | |||||
| Add: changes in accounting policies | ||||||||||||
| Correction of prior period errors | ||||||||||||
| Others | ||||||||||||
| II. Opening balance of the current year | 4,636,485,668 | 12,171,693,342.10 | 86,131,497.27 | 863,137.93 | 1,859,690,555.97 | 7,083,209,394.76 | 25,665,810,601.49 | |||||
| III. Increase/decre | 285,885,508 | 1,630,664,003.72 | -79,884,645.54 | 11,808,128.99 | 109,034,571.47 | 287,731,586.13 | 2,405,008,443.85 | |||||
| ase in the amount of the current period (decrease to be listed with "-") | ||||||||||||
| (I) Total comprehensive income | 11,800,830.06 | 1,090,353,013.63 | 1,102,153,843.69 | |||||||||
| (II) Invested and decreased capital of owners | 285,885,508 | 1,630,664,003.72 | -79,884,645.54 | 1,996,434,157.26 | ||||||||
| 1. Ordinary shares invested by owners | 285,885,508 | 1,632,043,242.50 | 1,917,928,750.50 | |||||||||
| 2. Capital contributed by holders of other equity instruments | ||||||||||||
| 3. Amounts of share-based payments recorded in owner's equity | -2,522,576.52 | -2,522,576.52 | ||||||||||
| 4. Others | 1,143,337.74 | -79,884,645.54 | 81,027,983.28 | |||||||||
| (III) Profit distribution | 109,035,301.36 | -802,614,858.46 | -693,579,557.10 | |||||||||
| 1. Appropriation to surplus reserves | 109,035,301.36 | -109,035,301.36 | ||||||||||
| 2. Distribution to owners (or | -693,579,557.10 | -693,579,557.10 |
| shareholders) | ||||||||||||
| 3. Others | ||||||||||||
| (IV) Internal carryover of owners' equity | 7,298.93 | -729.89 | -6,569.04 | |||||||||
| 1. Transfer from capital reserve to paid-in capital (or share capital) | ||||||||||||
| 2. Transfer from surplus reserves to paid-in capital (or share capital) | ||||||||||||
| 3. Recovery of losses by surplus reserves | ||||||||||||
| 4. Retained earnings carried forward from changes in defined benefit plans | ||||||||||||
| 5. Retained earnings carried forward from other comprehensive income | 7,298.93 | -729.89 | -6,569.04 | |||||||||
| 6. Others |
| (V) Special reserves | ||||||||||||
| 1. Appropriation in the current period | ||||||||||||
| 2. Use in the current period | ||||||||||||
| (VI) Others | ||||||||||||
| IV. Ending balance of the current period | 4,922,371,176 | 13,802,357,345.82 | 6,246,851.73 | 12,671,266.92 | 1,968,725,127.44 | 7,370,940,980.89 | 28,070,819,045.34 |
Amount of the Previous Period
Unit: Yuan
| Item | 2023 | |||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: treasury shares | Other comprehensive incomes | Special reserves | Surplus reserves | Undistributed profits | Others | Total owners' equity | |||
| Preferred Shares | Perpetual Bond | Others | ||||||||||
| I. Ending balance of the previous year | 4,651,965,655 | 12,278,939,213.88 | 267,837,184.11 | -480,794.77 | 1,827,531,841.54 | 6,793,780,964.90 | 25,283,899,696.44 | |||||
| Add: changes in accounting policies | ||||||||||||
| Correction of prior | ||||||||||||
| period errors | ||||||||||||
| Others | ||||||||||||
| II. Opening balance of the current year | 4,651,965,655 | 12,278,939,213.88 | 267,837,184.11 | -480,794.77 | 1,827,531,841.54 | 6,793,780,964.90 | 25,283,899,696.44 | |||||
| III. Increase/decrease in the amount of the current period (decrease to be listed with "-") | -15,479,987 | -107,245,871.78 | -181,705,686.84 | 1,343,932.70 | 32,158,714.43 | 289,428,429.86 | 381,910,905.05 | |||||
| (I) Total comprehensive income | 1,343,932.70 | 321,587,144.29 | 322,931,076.99 | |||||||||
| (II) Invested and decreased capital of owners | -15,479,987 | -107,245,871.78 | -181,705,686.84 | 58,979,828.06 | ||||||||
| 1. Ordinary shares invested by owners | -15,479,987 | -82,470,046.45 | -97,950,033.45 | |||||||||
| 2. Capital contributed by holders of other equity instruments | ||||||||||||
| 3. Amounts of share-based payments recorded in owner's equity | -24,775,825.33 | -24,775,825.33 | ||||||||||
| 4. Others | -181,705,686.84 | 181,705,686.84 | ||||||||||
| (III) Profit distribution | 32,158,714.43 | -32,158,714.43 |
| 1. Appropriation to surplus reserves | 32,158,714.43 | -32,158,714.43 | ||||||||||
| 2. Distribution to owners (or shareholders) | ||||||||||||
| 3. Others | ||||||||||||
| (IV) Internal carryover of owners' equity | ||||||||||||
| 1. Transfer from capital reserve to paid-in capital (or share capital) | ||||||||||||
| 2. Transfer from surplus reserves to paid-in capital (or share capital) | ||||||||||||
| 3. Recovery of losses by surplus reserves | ||||||||||||
| 4. Retained earnings carried forward from changes in defined benefit plans | ||||||||||||
| 5. Retained earnings carried forward from other comprehensive income | ||||||||||||
| 6. Others |
| (V) Special reserves | ||||||||||||
| 1. Appropriation in the current period | ||||||||||||
| 2. Use in the current period | ||||||||||||
| (VI) Others | ||||||||||||
| IV. Ending balance of the current period | 4,636,485,668 | 12,171,693,342.10 | 86,131,497.27 | 863,137.93 | 1,859,690,555.97 | 7,083,209,394.76 | 25,665,810,601.49 |
III. Company ProfileFAW JIEFANG GROUP CO., LTD., formerly known as FAW Car Co., Ltd., is a limited liability companyregistered in Changchun City, Jilin Province.FAW Car was approved by TGS [1997] No.55 Document of the State Commission for Restructuring the EconomicSystems in 1997 and established exclusively by CHINA FAW GROUP CO., LTD. On June 18, 1997, FAW Carwas approved by the China Securities Regulatory Commission to issue shares publicly and listed on the ShenzhenStock Exchange for circulation.On April 9, 2012, FAW Group invested 862,983,689 shares of FAW Car into China FAW Co., Ltd. as its capitalcontribution to FAW, and received the Confirmation of Securities Transfer Registration issued by China SecuritiesDepository & Clearing Co., Ltd. Shenzhen Branch on the same day.On November 28, 2019, FAW Car held the 10th meeting of the 8th Board of Directors, and reviewed and approvedthe adjustment plan for major asset restructuring. After the adjustment, FAW Car transferred all its assets andliabilities except the equity and some reserved assets of First Automobile Finance Co., Ltd. and SanguardAutomobile Insurance Co., Ltd. to FAW Besturn (now renamed FAW Bestune Auto Co., Ltd.). Subsequently, FAWCar used its 100% equity in FAW Besturn as divested assets to exchange for an equivalent part of 100% equity ofFAW Jiefang Automotive Co., Ltd. held by FAW. At the same time, FAW Car purchased the difference betweenthe purchased assets and the sold assets from FAW by issuing shares and paying cash.On March 12, 2020, FAW Car received the Reply on Approving the Major Asset Restructuring of FAW Car Co.,Ltd. and Issuing Shares to China FAW Co., Ltd. for Asset Purchase (ZJXK [2020] No.352) issued by the ChinaSecurities Regulatory Commission, and China Securities Regulatory Commission reviewed and approved the majorasset replacement, share issuance and cash payment for assets purchase and related transactions of FAW Car.The Capital Verification Report (XYZH/2020BJA100417) issued by ShineWing Accounting Firm (special generalpartnership) indicates that, as of March 19, 2020, all proposed purchased assets, i.e. 100% equity of Jiefang Limited,to be replaced by FAW Car to FAW by issuing shares had been transferred to FAW Car. The industrial andcommercial change registration procedures of Jiefang Limited had been completed, all proposed assets, i.e. 100%equity of FAW Bestune, had been transferred to FAW, and the industrial and commercial change registrationprocedures of FAW Bestune had been completed. The registered capital of FAW Car is 4,609,666,212.00 yuan afterthis change.In May 2020, the name of FAW Car was changed to "FAW JIEFANG GROUP CO., LTD." and the stockabbreviation was changed to "FAW Jiefang".On January 11, 2021, the Company held the first 2021 extraordinary shareholders' meeting, and reviewed andapproved the Proposal on the Restricted Share Incentive Plan of FAW Jiefang Group Co., Ltd. (Draft) and ItsAbstract, the Proposal on the Regulations for the Implementation Assessment of Restricted Share Incentive Plan ofFAW Jiefang Group Co., Ltd., the Proposal on the Regulations for Restricted Share Incentive of FAW JiefangGroup Co., Ltd., and the Proposal on Requesting the Shareholders Meeting to Authorize the Board of Directors toHandle Matters Related to the Company's Restricted Share Incentive Plan. On January 15, 2021, the Company heldthe 12th meeting of the 9th Board of Directors, and reviewed and approved the Proposal on Adjusting the List ofthe First Batch of Incentive Objects and the Number of Grants in the Phase I Restricted Share Incentive Plan andthe Proposal on Granting Restricted Shares to the Incentive Objects of the Phase I Restricted Share Incentive Plan
for the First Time. Nine directors and senior executives, including Hu Hanjie, Zhu Qixin, Zhang Guohua, WangRuijian, Shang Xingwu, Ou Aimin, Kong Dejun, Wu Bilei and Wang Jianxun, and 310 other core employees withthe title of senior director and above were granted to subscribe for 40,987,657 new shares of the Company at anissue price of 7.54 yuan per share, and the registered capital of the Company was changed to 4,650,653,869.00 yuan.This change was verified by the Capital Verification Report (ZTYZ (2021) No.110C000033) issued by GrantThornton Certified Public Accountants (Special General Partnership). On February 1, 2021, the Company disclosedthe Announcement on the Completion of the First Grant Registration of the Phase I Restricted Share Incentive Plan.On December 9, 2021, the Company held the 20th meeting of the 9th Board of Directors and the 19th meeting ofthe 9th Board of Supervisors, and reviewed and approved the Proposal on Granting Reserved Part of RestrictedShares in the Phase I Restricted Share Incentive Plan to Incentive Objects and the Proposal on Repurchase andCancellation of Partial Restricted Shares in the Phase I Restricted Share Incentive Plan respectively. Thirty-threecore technicians and management backbones, including Wang Manhong, Zhang Yu and Qu Yi, subscribed for3,721,601 new shares at an issue price of 6.38 yuan/share, and 260,857 shares were repurchased at a price of 7.04yuan/share from 2 employees who were no longer eligible for incentive objects. The registered capital of theCompany was changed to 4,654,114,613.00 yuan. This change was verified by the Capital Verification Report(ZTYZ (2021) No.110C000927) issued by Grant Thornton Accounting Firm (special general partnership). OnJanuary 6, 2022, the Company disclosed the Announcement on the Completion of Registration of the Grant ofReserved Part of Restricted Shares in the Phase I Restricted Share Incentive Plan. On January 17, 2022, theCompany disclosed the Announcement on the Completion of the Repurchase and Cancellation of Some RestrictedShares.On August 29, 2022, the Company held the 26th meeting of the 9th Board of Directors and the 23rd meeting of the9th Board of Supervisors, and reviewed and approved the Proposal on the Repurchase and Cancellation of PartialRestricted Shares in the Phase I Restricted Share Incentive Plan. It was agreed to repurchase 789,711 shares at aprice of 6.39 yuan/share from 6 employees who are no longer qualified as incentive objects, and the registeredcapital of the Company was changed to 4,653,324,902.00 yuan. This change was verified according to the CapitalVerification Report (XYZH/2022CCAA2B0016) issued by ShineWing Accounting Firm (special generalpartnership). On November 14, 2022, the Company disclosed the Announcement on the Completion of theRepurchase and Cancellation of Some Restricted Shares.On October 28, 2022, the Company held the 28th meeting of the 9th Board of Directors and the 24th meeting of the9th Board of Supervisors, and reviewed and approved the Proposal on the Repurchase and Cancellation of PartialRestricted Shares in the Phase I Restricted Share Incentive Plan, and agreed to repurchase 1,359,247 shares at aprice of 6.39 yuan/share from 11 employees who are no longer qualified as incentive objects. The registered capitalof the Company was changed to 4,651,965,655.00 yuan. This change was verified according to the CapitalVerification Report (XYZH/2023CCAA2B0001) issued by ShineWing Accounting Firm (special generalpartnership). On January 17, 2023, the Company disclosed the Announcement of the Completion of the Repurchaseand Cancellation of Some Restricted Shares.On December 15, 2022, the Company held the 30th Meeting of the 9th Board of Directors and the 26th Meeting ofthe 9th Board of Supervisors, and reviewed and approved the Proposal on the Achievement of Unlocking Conditionsin the First Release Period of the Restricted Shares Firstly Granted in the Phase I Restricted Incentive Plan. Theunlocking conditions in the first release period of the restricted shares first granted in the phase I restricted incentiveplan had been fulfilled. The unlocking matters of the first restriction releasing period for restricted shares firstgranted were handled in accordance with the restricted share incentive plan. There were a total of 311 incentive
objects eligible for unlocking, and the number of restricted stocks unlocked this time was 13,042,347; these shareswere listed on May 16, 2023. On February 3, 2024, the Company disclosed the Indicative Announcement on theListing and Circulation of Unlocked Shares in the First Release Period of the Restricted Shares Firstly Granted inthe Phase I Restricted Share Incentive Plan.The Proposal on the Repurchase and Cancellation of Partial Restricted Shares in the Phase I Restricted ShareIncentive Plan was reviewed and approved at the 30th Meeting of the 9th Board of Directors and the 26th Meetingof the 9th Board of Supervisors on December 15, 2022. The participant at the meeting agreed to repurchase andcancel all or some restricted shares granted to 6 incentive objects but not yet released, totaling 723,435 shares, andthe registered capital of the Company was changed to 4,651,242,220 yuan. This change was verified according tothe Capital Verification Report (XYZH/2023CCAA2B0103) issued by ShineWing Accounting Firm (specialgeneral partnership). On April 28, 2023, the Company disclosed the Announcement of the Completion of theRepurchase and Cancellation of Some Restricted Shares.On March 31, 2023, the Proposal on Unfulfilling Conditions for Releasing Restricted Sales in the Second Period ofReleasing Restricted Shares Firstly Granted and Conditions for the First Period of Releasing Restricted SharesReserved for Granting in Phase I Restricted Share Incentive Plan and Repurchase and Cancellation of SomeRestricted Shares was reviewed and approved at the 32nd Meeting of the 9th Board of Directors and the 28thMeeting of the 9th Board of Supervisors. The participants at the meeting agreed to repurchase and cancel all orsome restricted shares granted to 327 incentive objects but not yet released, totaling 13,909,890 shares, and theregistered capital of the Company was changed to 4,637,332,330 yuan. This change was verified according to theCapital Verification Report (XYZH/2023CCAA2B017) issued by ShineWing Accounting Firm (special generalpartnership). On June 30, 2023, the Company disclosed the Announcement of the Completion of the Repurchaseand Cancellation of Some Restricted Shares.On April 27, 2023, the Company held the 2nd Meeting of the 10th Board of Directors and the 2nd Meeting of the10th Board of Supervisors, respectively, and reviewed and approved the Proposal on Releasing Restriction on Salesof Part of Restricted Shares. The Board of Directors believed that conditions for releasing restricted sales ofrestricted shares in the first restriction releasing period for incentive objects Hu Hanjie, Wu Bilei, Zhang Guohuaand Wang Jianxun had been fulfilled, and agreed to release restricted sales of restricted shares in the first restrictionreleasing period for them, totaling 64,954 shares, and these shares were listed on May 16, 2023. On May 15, 2023,the Company disclosed the Indicative Announcement on Sales Restriction Releasing and Listing and Circulation ofPart of Restricted Shares.The Proposal on the Repurchase and Cancellation of Partial Restricted Shares in the Phase I Restricted ShareIncentive Plan was reviewed and approved at the 5th Meeting of the 10th Board of Directors and the 4th Meetingof the 10th Board of Supervisors on August 29, 2023. The participants at the meeting agreed to repurchase andcancel all or some restricted shares granted to 8 incentive objects but not yet released, totaling 333,855 shares, andthe registered capital of the Company was changed to 4,636,998,475.00 yuan. This change was verified accordingto the Capital Verification Report (XYZH/2023CCAA2B0188) issued by ShineWing Accounting Firm (specialgeneral partnership). On November 29, 2023, the Company disclosed the Announcement of the Completion of theRepurchase and Cancellation of Some Restricted Shares.The Proposal on the Repurchase and Cancellation of Partial Restricted Shares in the Phase I Restricted ShareIncentive Plan was reviewed and approved at the 7th Meeting of the 10th Board of Directors and the 6th Meetingof the 10th Board of Supervisors on November 20, 2023. The participants at the meeting agreed to repurchase and
cancel all or some restricted shares granted to some incentive objects but not yet released, totaling 512,807 shares,and the registered capital of the Company was changed to 4,636,485,668 yuan. This change was verified accordingto the Capital Verification Report (XYZH/2024CCAA2B0020) issued by ShineWing Accounting Firm (specialgeneral partnership). On March 28, 2024, the Company disclosed the Announcement on the Completion of theRepurchase and Cancellation of Some Restricted Shares.On March 28, 2024, the Company held the 11th meeting of the 10th Board of Directors and the 10th meeting of the10th Board of Supervisors. Subsequently, on April 25, 2024, the Company held its 2023 Annual General Meetingof Shareholders. These meetings reviewed and approved "Proposal on Unfulfilling Conditions for ReleasingRestricted Sales in the Third Period of Releasing Restricted Shares Firstly Granted and Conditions for the SecondPeriod of Releasing Restricted Shares Reserved for Granting in Phase I Restricted Share Incentive Plan andRepurchase and Cancellation of Some Restricted Shares." The meetings approved the repurchase and cancellationof 12,621,954 restricted shares that had been granted to plan participants but had not yet vested. As a result, theCompany's registered capital will be changed to 4,623,863,714 yuan. This change was verified according to theCapital Verification Report (XYZH/2024CCAA2B0173) issued by ShineWing Accounting Firm (special generalpartnership). On June 15, 2024, the Company disclosed the Announcement on the Completion of the Repurchaseand Cancellation of Some Restricted Shares.According to the resolutions passed at the Company's Second Extraordinary General Meeting of Shareholders in2023 and the Second Extraordinary General Meeting of Shareholders in 2024, and as approved by the CSRC'sdocument "Reply on Approving the Registration of FAW Jiefang Group Co., Ltd.'s Non-public Issuance of Shares"(CSRC [2024] No.972) issued on June 21, 2024, the Company conducted a non-public issuance of 298,507,462.00A-shares, increasing the registered capital by 298,507,462.00 yuan. Consequently, the Company's registered capitalhas changed to 4,922,371,176.00 yuan. This non-public issuance of shares has been verified by the CapitalVerification Report (ZTYZ [2024] No.110C000357) issued by Grant Thornton Accounting Firm (special generalpartnership).The Company has established a corporate governance structure consisting of a Shareholders' Meeting, a Board ofDirectors, and a Board of Supervisors. It owns two wholly-owned subsidiaries - Jiefang Limited and FAW JiefangGroup International Automobile Co., Ltd. - and one non-wholly-owned subsidiary, FAW Africa Investment Co.,Ltd. Jiefang Limited has six wholly-owned subsidiaries, namely FAW Jiefang (Qingdao) Automotive Co., Ltd.,Wuxi Dahao Power Co., Ltd., FAW Jiefang Dalian Diesel Engine Co., Ltd., FAW Jiefang Austria R&D Co., Ltd.,FAW Jiefang Automobile Sales Co., Ltd., and FAW Jiefang Younida Transportation Technology (Tianjin) Co.,Ltd., as well as one non-wholly-owned subsidiary, Jiefang Motors Tanzania Ltd. It also has 10 associated companies,namely, Sanguard Automobile Insurance Co., Ltd., FAW Changchun Baoyou Jiefang Steel Processing andDistribution Co., Ltd., FAW Changchun Ansteel Steel Processing and Distribution Co., Ltd., Changchun WabcoAutomotive Control System Co., Ltd., Suzhou Zhito Technology Co., Ltd., FAW Jiefang Fujie (Tianjin)Technology Industry Co., Ltd., Smartlink Intelligent Technology (Nanjing) Co., Ltd., Foshan Diyiyuansu NewEnergy Technology Co., Ltd., Changchun Automotive Test Center Co., Ltd. and Diyi AESC New Energy PowerTechnology (Wuxi) Co., Ltd. Additionally, it owns one joint venture company, Jiefang Times New EnergyTechnology Co., Ltd., while FAW (Africa) Investment Co., Ltd. has one non-wholly-owned subsidiary, FAWVehicle Manufacturing South Africa Co., Ltd.Business scope of the Company: R&D, production and sales of medium and heavy trucks, vehicles, buses, buschassis, medium truck deformation vehicles, automobile assemblies and parts, machining, diesel engines andaccessories (non-vehicle), mechanical equipment and accessories, instruments, technical services, technical
consultation, installation and maintenance of mechanical equipment, lease of mechanical equipment and facilities,lease of houses and workshops, labor services (excluding foreign labor cooperation and domestic labor dispatch),sales of steel, automobile trunks, hardware & electrical equipment and electronic products, testing of internalcombustion engine, engineering technology research and testing, advertising design, production and release, importand export of goods and technologies (excluding publication import business and commodities and technologiesrestricted or prohibited for import and export by the state); (the following items are operated by the branch company)Chinese food production and sales, warehousing and logistics (excluding flammable, explosive and precursordangerous chemicals), automobile repair, tank manufacturing of chemical liquid tanker, automobile trunkmanufacturing (items subject to approval according to law can be operated only after being approved by relevantauthorities).Registered address of the Company: No.2259, Dongfeng Street, Changchun Automobile Development Zone, JilinProvince.The legal representative of the Company is Li Sheng.The financial statements and notes to the financial statements were approved for issue by the Board of Directors ofthe Company on March 28, 2025.IV. Basis of Preparation for Financial Statements
1. Preparation basis
The financial statements are prepared according to the Accounting Standards for Business Enterprises issued by theMinistry of Finance and their application guidelines, interpretations, and other relevant provisions (hereinaftercollectively referred to as "ASBE"). In addition, the Company also discloses relevant financial informationaccording to Rules No.15 for Preparing Information Disclosure by Companies Offering Securities to the Public -General Provisions on Financial Reporting (2023 Revision) issued by China Securities Regulatory Commission.
2. Continuing operations
The financial statements on continuing operations are presented.The financial accounting of the Company is based on accrual. The financial statements are prepared on a historicalcost basis except for certain financial instruments. If the assets are impaired, the corresponding provision forimpairment shall be made as specified.V. Significant Accounting Policies and Accounting EstimatesTips for specific accounting policies and accounting estimates:
The Company determines the depreciation of fixed assets, amortization of intangible assets, capitalizationconditions of R&D expenses and income recognition policies according to its own production and operationcharacteristics. For specific accounting policies, please see 21, 24 and 31 in V "Significant Accounting Policies andAccounting Estimates" in Section X - Financial Report.
1. Statement of compliance with accounting standards for business enterprisesThe financial statements prepared by the Company met the requirements of ASBE and truly and fully reflected theconsolidated and company's financial position as of December 31, 2024 of the Company and its information suchas consolidated and company's financial performance and consolidated and company's cash flow for the year thenended.
2. Accounting period
The accounting period of the Company is a calendar year, namely, from January 1 to December 31 every year.
3. Operating cycle
The operating cycle of the Company is 12 months.
4. Recording currency
The Company and its domestic subsidiaries use CNY as their recording currency. The Company's overseassubsidiaries determine their functional currency based on the currency of the main economic environment in whichthey operate. The Company uses CNY to prepare the financial statements.
5. Methods for determining materiality criteria and selection basis
?Applicable □Not applicable
| Item | Materiality Criteria |
| Receivables with significant provision for bad debts by individual item | 10% of the absolute value of net profit or 10% of similar business |
| Write-off of significant receivables in the current period | 10% of the absolute value of net profit or 10% of similar business |
| Significant changes in the book value of contractual assets | 10% of the absolute value of net profit or 10% of similar business |
| Major projects under construction | 10% of the absolute value of net profit or 10% of similar business |
| Significant capitalized R&D projects | 10% of the absolute value of net profit or 10% of similar business |
6. Accounting treatment method for business merger under common control and different control
(1) Business merger under common control
As to the business merger under common control, the assets and liabilities of the combined party obtained by thecombined party are calculated in the book value in the consolidated financial statements of the ultimate controllerby the combined party on the combination date. The capital reserve (stock premium) is adjusted based on thedifference between the book value of the combination consideration and the book value of the net assets obtainedin the combination. The retained earnings are adjusted if the capital reserve (stock premium) is insufficient for offset.
Business merger under common control realized step-by-step through multiple transactionsThe assets and liabilities of the combined party obtained by the combined party are calculated in the book value inthe consolidated financial statements of the ultimate controller on the combination date. The difference between thesum of the book value of investment held prior to the business combination plus the book value of new considerationpaid on the combination date, and the book value of net assets acquired in the combination, shall be used to adjustcapital reserve (share premium). If the capital reserve is insufficient for this adjustment, the retained earnings shallbe adjusted accordingly. The long-term equity investment held before the acquisition of the combined party's controlby the combining party and the profit or loss, other comprehensive incomes and changes in other owners' equitiesthat have been recognized during the period from the date of acquisition of the original equity, or the date of commoncontrol of the combining party and the combined entity (which is later) to the combination date shall offset againstthe retained opening earnings or current profit or loss respectively during the period of the comparative statement.
(2) Business merger under different control
In the case of business merger under different control, the combination cost is the fair value of assets paid, liabilitiesincurred or assumed and equity securities issued on the acquisition date for acquiring the control over the acquiree.The assets, liabilities and contingent liabilities of the acquiree obtained are recognized as per the fair value on theacquisition date.Where the combination cost is greater than the fair value of identifiable net assets obtained from the acquiree, thedifference shall be recognized as goodwill and subsequently measured by deducting the accumulated depreciationprovision by cost. Where the combination cost is less than the fair value of identifiable net assets obtained from theacquiree, the difference shall be included in current profits and losses after review.Business merger not under common control realized step-by-step through multiple transactionsThe combination cost is the sum of the consideration paid on the acquisition date and the fair value of the acquiree'sequity already held before the acquisition date on the acquisition date. The acquiree's equity held before theacquisition date shall be remeasured at the fair value of the equity on the acquisition date. The difference betweenthe fair value and its book value shall be included in the investment income for the current period. If the acquiree'sequity held before the acquisition date involves other comprehensive income, changes in other owner's equities shallbe transformed into the current profit on the acquisition date, except other comprehensive income generated due toremeasuring the change in net liabilities or net assets of the defined benefit plan (DBP) by the investee, and othercomprehensive income related to a non-trading equity instrument investment originally measured at fair value withits changes included in other comprehensive income.
(3) Disposal of related handling charges for business merger
The overhead for the business merger of the combining party, including the expenses for audit, legal services,assessment, and other administrative expenses, shall be recorded in current profits and losses when they occur. Thetransaction expenses of the equity securities or liability securities issued as the consideration for the combinationshall be recorded as the initial recognition amount of the equity securities or liability securities.
7. Criteria for control and preparation method of consolidated financial statements
(1) Criteria for control
The scope of consolidated financial statements is determined on the basis of control. Control refers to the power ofthe Company over the investee, with which the Company enjoys variable returns through participating in relatedactivities of the investee and is able to influence its amount of return with the power over the investee. The Companywill carry out re-assessment when changes in relevant facts and circumstances result in changes in elements involvedin the definition of control.When determining whether to include structured entities in the consolidation scope, the Company assesses whetherto control the structured entity by comprehensively taking all facts and circumstances into consideration, includingassessing the purpose and design of the structured entity, identifying the types of variable returns, and assessingwhether it assumes part or all of the variability of the returns through its participation in related activities of theentity.
(2) Preparation methods of consolidated financial statements
The consolidated financial statements are prepared by the Company based on the financial statements of theCompany and its subsidiaries and with other relevant data. The major accounting policies and accounting periodsadopted by the subsidiaries are defined in the same way as those of the Company during the preparation of theconsolidated financial statements. The significant transactions and balances between companies are offset.Where a subsidiary or business has been acquired through a business merger involving enterprises under commoncontrol in the reporting period, the subsidiary or business is deemed to be included in the consolidated financialstatements from the date they are controlled by the ultimate controlling party. Their operating results and cash flowsare respectively included in the consolidated income statement and consolidated cash flow statement from the datethey are controlled by the ultimate controlling party.For the subsidiaries and businesses that increased in the reporting period due to business merger under differentcontrol, their earnings, expenses and profits from the acquisition date to the end of the reporting period are includedin the consolidated profit statement, and their cash flows are included in the consolidated cash flow statement.The portion of shareholders' equity of subsidiaries not belonging to the Company shall be listed separately underthe item "Shareholders' Equity" in the consolidated balance sheet as minority shareholders' equity. The portion ofnet profit or loss of subsidiaries in the current period belonging to minority shareholders' equity shall be listedseparately under the item "Minority Shareholders' Profit or Loss" in the consolidated income statement. If the lossof a subsidiary borne by minority shareholders exceeds the amount of their shares of owners' equity in the subsidiaryat the beginning, the balance shall offset the minority equity.
(3) Purchase of minority shareholders' equity in subsidiaries
The capital reserve (stock premium) in the consolidated balance sheet is adjusted based on the difference betweenthe newly acquired long-term equity investment cost from the purchase of minority equity and the share of net assetsin the subsidiary calculated constantly from the purchase date or combination date as per the newly increasedshareholding proportion, and the difference between the disposal price obtained from the partial disposal of equity
investment in the subsidiary without losing the right of control and the share of net assets in the subsidiary calculatedcontinuously from the purchase date or combination date corresponding to the disposed long-term equity investment.The retained earnings are adjusted if the capital reserve is insufficient for offset.
(4) Disposal of the loss of control over subsidiaries
If the control power on the original subsidiaries is lost due to the disposal of part of an equity investment or otherreasons, the remaining equity shall be recalculated at fair value on the day when the control power is lost. Thebalance from the sum of consideration obtained from the disposal of equity and the fair value of the remainingequity minus the sum of the share of net assets book value and the goodwill of original subsidiaries calculatedcontinuously starting from the purchase date as per the original shareholding ratio shall be included in currentinvestment income at the loss of control.Other comprehensive income in connection with equity investment of the original subsidiaries shall be subject toaccounting method on the same basis as the original subsidiary's direct disposal of relevant assets or liabilities uponthe loss of control. Other changes in owners' equity related to the original subsidiary that are accounted for by theequity method shall be transferred to the current profits and losses upon the loss of control.
8. Classification of Joint Venture Arrangement and Accounting Treatment Methods for Joint OperationsJoint arrangement refers to an arrangement jointly controlled by two or more participants. Joint arrangements of theCompany include joint operations and joint ventures.
(1) Joint operation
Joint operation refers to the joint arrangement in which the Company enjoys related assets and bears relatedliabilities.The Company recognizes the following items related to the interest share in the joint operation and carries outaccounting according to the ASBE:
A. Recognizing the assets held separately and the assets held jointly as per its shares;B. Recognizing the liabilities borne separately and the liabilities borne jointly according to its shares;C. Recognizing the income generated from the sale of shares enjoyed in the joint operation;D. Recognizing the income generated from the sale of shares enjoyed in the joint operation as per its shares;E. Recognizing the expenses incurred separately and the expenses arising from joint operation as per its shares.
(2) Joint ventures
Joint venture refers to a joint arrangement in which the Company only has power over the net assets of thearrangement.The Company conducts accounting for the investment of joint ventures according to provisions of the equity methodaccounting for long-term equity investments.
9. Standards for recognition of cash and cash equivalents
Cash refers to the cash on hand and the deposits that are readily available for payment. Cash equivalents refer to theshort-term and highly liquid investments held by the Company that are readily convertible into known amounts ofcash and with low risk in value change.
10. Foreign currency transaction and foreign currency statement translation
(1) Foreign currency transaction
Foreign currency transactions of the Company are converted into the amount in recording currency at the exchangerate determined by systematic and reasonable methods.On the balance sheet date, the foreign currency monetary items are converted at the spot exchange rate on thebalance sheet date. The exchange difference arising from the difference between the spot exchange rate on thebalance sheet date and the spot exchange rate at the time of initial recognition or on the previous balance sheet dateis included in current profits and losses. Foreign currency non-monetary items measured at historical cost are stillconverted at the spot exchange rate on the transaction date. Foreign currency non-monetary items measured at fairvalue are converted at the spot exchange rate on the date when the fair value is determined. The difference betweenthe converted recording currency amount and the original recording currency amount is included in current profitsand losses or other comprehensive income according to the nature of the non-monetary items.
(2) Translation of foreign currency financial statements
At the balance sheet date, when the foreign currency financial statements of overseas subsidiaries are translated, theassets and liabilities of the balance sheet are translated to CNY using the spot exchange rate at the balance sheetdate. Items of the shareholders' equity, except for "undistributed profits", are translated at the spot exchange rate atthe dates on which such items arose.The income and expense items in the profit statement are translated at the exchange rate determined by systematicand reasonable methods.All items in the cash flow statement are translated at the exchange rate determined by systematic and reasonablemethods. As an adjustment item for the influence amount of cash, exchange rate movement is independentlypresented as "Influence of exchange rate movement to cash and cash equivalent" in the cash flow statement.Differences arising from the translation of financial statements are separately presented as "other comprehensiveincome" in the shareholders' equity of the balance sheet.During the disposal of overseas operation and upon the loss of the right of control, the conversion difference offoreign currency statements listed under the shareholders' equity items in the balance sheet and related to theoverseas operation is transferred to the current profits and losses of disposal in full or as per the disposal proportionof the overseas operation.
11. Financial instruments
Financial instruments refer to contracts that form the financial assets of a party, and form financial liabilities orequity instruments of other parties.
(1) Recognition and derecognition of the financial instruments
The Company recognizes a financial asset or financial liability when it becomes a party to the contract of thefinancial instrument.If one of the following conditions is met, the financial assets are terminated:
① The contractual right to receive the cash flow of the financial asset is terminated.
② The financial asset has been transferred and is in accordance with the following conditions for derecognition.If the current obligations of financial liability have been discharged in total or in part, derecognize all or part of it.The Company (the Debtor) signs an agreement with the Creditor to replace the existing financial liabilities withnew financial liabilities; the existing financial liabilities are derecognized, and the new financial liabilities arerecognized when the contractual terms of the new financial liabilities and those of the existing financial liabilitiesare different in essence.Financial assets transacted in a conventional way are subject to accounting recognition and derecognition on thetransaction date.
(2) Classification and measurement of financial assets
The Company classifies financial assets into the following three categories according to the business mode offinancial assets management and the contractual cash flow characteristics of financial assets at the time of initialrecognition: financial assets measured at amortized cost, financial assets at fair value through other comprehensiveincome, and financial assets measured at fair value with their changes included in the current profits or losses.Financial assets are measured at fair value upon initial recognition. For financial assets at fair value through profitor loss, relevant transaction costs are directly included in current profits and losses; for other types of financialassets, relevant transaction costs are included in the initially recognized amount. For receivables arising from thesale of products or the provision of services that do not include or take into account significant financing components,the Company takes into consideration the amount entitled to receive in expectation as the initially recognizedamount.Financial assets measured at amortized costThe Company classifies the financial assets that meet the following conditions but are not designated to be measuredat fair value and with the changes included in current profits or losses as the financial assets measured at amortizedcost:
? The Company manages the financial assets in order to collect contractual cash flows;? The contract terms of the financial assets stipulate that the cash flow generated on a specific date is only
the payment of the principal and the interest based on the outstanding principal amount.
After initial recognition, such financial assets are measured at amortized cost using the effective interest method.Any gains or losses on financial assets at amortized cost that are not part of the hedging relationship are charged tothe current profit or loss at derecognition, amortization using the effective interest method, or recognition ofimpairment.Financial assets at fair value through other comprehensive incomeThe Company classifies financial assets that meet the following conditions and are not designated to be financialassets at fair value with their changes included in current profit or loss as financial assets at fair value with theirchanges included in other comprehensive incomes:
? The Company manages the financial assets in order not only to collect contractual cash flows but also tosell the financial assets;
? The contract terms of the financial assets stipulate that the cash flow generated on a specific date is onlythe payment of the principal and the interest based on the outstanding principal amount.After initial recognition, such financial assets are subsequently measured at fair value. Interests, impairment lossesor gains and exchange gains and losses calculated with the effective interest method are included in the currentprofits and losses, and other gains or losses are included in other comprehensive income. When the financial assetsare derecognized, the accumulated profits or losses previously included in other comprehensive income aretransferred out and included in the current profits and losses.Financial assets at fair value through profit or lossExcept for the above-mentioned financial assets measured at amortized cost and fair value through othercomprehensive income, the Company classifies all remaining financial assets as financial assets measured at fairvalue through profit or loss. At the time of initial recognition, in order to eliminate or significantly reduce accountingmismatch, the Company irrevocably designates some financial assets that should be measured at amortized cost orfair value through other comprehensive income as financial assets measured at fair value through current profitsand losses.After initial recognition, such financial assets are subsequently measured at fair value, and the gains or losses(including interest and dividend income) incurred are included in current profits and losses unless they are part of ahedging relationship.The business model of managing financial assets refers to how the Company manages financial assets to generatecash flows. The business model determines whether the cash flow of financial assets managed by the Companycomes from collecting contractual cash flows, selling financial assets, or both. The Company determines thebusiness model for managing financial assets on the basis of objective facts and specific business objectives formanaging financial assets decided by key management personnel.The Company evaluates the contractual cash flow characteristics of financial assets to determine whether thecontractual cash flow generated by relevant financial assets on a specific date is only the payment of principal andinterest based on the outstanding principal amount. Principal refers to the fair value of financial assets at initialrecognition; interest includes consideration for the time value of money, credit risk associated with the amount ofprincipal outstanding over a specific period, and other underlying borrowing risks, costs and profits. In addition, theCompany evaluates the contract terms that may cause changes in the time distribution or amount of contractual cash
flows of financial assets to determine whether they meet the requirements for the above-mentioned contractual cashflow characteristics.Only when the Company changes its business model for managing financial assets can all affected related financialassets be reclassified on the first day of the first reporting period after the change in business model; otherwise,financial assets shall not be reclassified after initial recognition.
(3) Classification and measurement of financial liabilities
The financial liabilities of the Company are classified into financial liabilities at fair value through profit or loss,and financial liabilities are measured at amortized cost upon initial recognition. For financial liabilities not classifiedas those measured at fair value through profit or loss, relevant transaction costs are included in their initiallyrecognized amounts.Financial liabilities at fair value through profit or lossFinancial liabilities at fair value through profit or loss include financial liabilities held for trading and thosedesignated upon initial recognition to be measured at fair value through profit or loss. Such financial liabilities aresubsequently measured at fair value, and the gains or losses arising from changes in fair value, as well as dividendsand interest expenses related to such financial liabilities, are included in current profits and losses.Financial liabilities measured at amortized costOther financial liabilities are subsequently measured at amortized cost using the effective interest method, and gainsor losses arising from derecognition or amortization are included in current profits and losses.Distinction between financial liabilities and equity instrumentsFinancial liabilities refer to those that meet one of the following conditions:
① Contractual obligations to deliver cash or other financial assets to other parties.
② Contractual obligations to exchange financial assets or financial liabilities with other parties under potentiallyadverse conditions.
③ A non-derivative instrument contract that must or can be settled with the enterprise's own equity instruments inthe future and according to which the enterprise will deliver a variable number of its own equity instruments.
④ A derivative contract that must or can be settled with the enterprise's own equity instruments in the future, exceptfor derivative contracts where a fixed amount of its own equity instruments is exchanged for a fixed amount of cashor other financial assets.An equity instrument refers to a contract that can prove the residual equity in the assets of an enterprise after allliabilities are deducted.If the Company cannot unconditionally avoid performing a contractual obligation by delivering cash or otherfinancial assets, the contractual obligation meets the definition of financial liabilities.If a financial instrument must or can be settled with the Company's own equity instruments, it is necessary toconsider whether the Company's own equity instruments used for settlement of such instruments are used assubstitutes for cash or other financial assets or to enable the instrument holder to enjoy residual equity in the assetsof the issuer after deduction of all liabilities. If it meets the former condition, the financial instrument should be
recognized as financial liabilities; If it meets the latter condition, the financial instrument is recognized as an equityinstrument.
(4) Fair value of financial instruments
For the determination methods for the fair value of financial assets and liabilities, refer to 38 "Others" in V"Significant Accounting Policies and Accounting Estimates" of Section X - Financial Report.
(5) Impairment of financial assets
The Company accounts for impairment and recognizes the loss provision for the following items on the basis ofexpected credit losses:
? Financial assets measured at amortized cost;? Receivables and debt instrument investments measured at fair value through other comprehensiveincome;
? Contract assets as defined in ASBE NO.14 - Revenue;? Lease receivables;? Financial guarantee contracts (except for those measured at fair value through profit and loss, where the
transfer of financial assets does not meet derecognition conditions or is continuously involved in thetransferred financial assets).Measurement of expected credit lossesExpected credit loss refers to the weighted average of the credit losses of financial instruments that are weighted bythe risk of default. Credit loss refers to the difference between all contractual cash flows receivable according to thecontract and discounted by the Company at the original effective interest rate and all cash flows expected to becollected, that is, the present value of all cash shortages.The Company considers reasonable and reliable information about past events, current situation and forecast of thefuture economic situation, weighs the risk of default, calculates the probability-weighted amount of the presentvalue of the difference between the cash flow receivable from the contract and the cash flow expected to be received,and recognizes the expected credit loss.The Company measures the expected credit losses of financial instruments at different stages, respectively. Forfinancial instruments whose credit risk has not significantly increased since initial recognition, they are in Stage I,and the Company measures the loss allowance based on expected credit losses for the next 12 months; for financialinstruments whose credit risk has significantly increased since initial recognition but have not incurred creditimpairment, they are in Stage II, and the Company measures the loss allowance based on lifetime expected creditlosses of the instrument; For financial instruments that have incurred credit impairment since initial recognition,they are in Stage III, and the Company measures the loss allowance based on lifetime expected credit losses of theinstrument.The Company assumes that the credit risk of the financial instruments with a low credit risk on the balance sheetdate has not increased significantly since the initial recognition and measures the provision for loss based on theexpected credit loss in the next 12 months.
The expected credit loss during the whole duration refers to the expected credit loss caused by all default eventsthat may occur during the whole expected duration of financial instruments. The expected credit loss in the next 12months refers to that caused by the possible default events of the financial instruments within 12 months after thebalance sheet date (or the expected duration if the expected duration of financial instruments is less than 12 months),which is a part of the expected credit loss in the whole duration.During the measurement of expected credit losses, the maximum term to be considered by the Company is themaximum contract term of the enterprise facing credit risk (including the option to renew the contract).For financial instruments in the first and second stages and with low credit risk, the Company calculates interestincome according to the book balance before deducting impairment provision and the actual interest rate. Forfinancial instruments in the third stage, interest income is calculated according to their book balance minus theamortized cost after impairment provision and the effective interest rate.Notes receivable, accounts receivable and contract assetsFor notes receivable, accounts receivable, and contract assets, the Company always measures their loss provisionaccording to the amount equivalent to the expected credit loss for the whole duration, no matter whether there isany significant financing component.If the expected credit loss of a single financial or contractual asset cannot be evaluated at a reasonable cost, theCompany divides the notes receivable, accounts receivable and contractual assets into portfolios according to thecredit risk characteristics based on the following and calculates the expected credit loss on the basis of the portfolios:
A. Notes Receivable? Notes receivable portfolio 1: bank acceptance bills? Notes receivable portfolio 2: commercial acceptance bills
B. Accounts Receivable? Aging portfolioC. Contract assets? Aging portfolioThe Company calculates the expected credit loss of the notes receivable and contract assets divided into portfoliosby referring to the historical credit loss experience, combining the current situation and the forecast of the futureeconomic situation, and based on the default risk exposure and the expected credit loss rate for the whole duration.For accounts receivable divided into portfolios, the Company prepares a comparison table of account receivableaging/overdue days and expected credit loss rate for the whole duration with reference to historical credit lossexperience and in combination with the current situation and forecast of the future economic situation, so as tocalculate the expected credit loss. The aging of accounts receivable is calculated from the date of recognition andthe number of days overdue from the credit expiration date.
Other receivablesThe Company divides other receivables into several portfolios according to the credit risk characteristics based onthe following and calculates the expected credit loss according to the portfolios:
? Portfolio 1 of other receivables: portfolio of margin, deposit and reserve fund? Portfolio 2 of other receivables: aging portfolioFor other receivables divided into portfolios, the Company calculates the expected credit loss through default riskexposure and expected credit loss rate in the next 12 months or the whole duration. The aging of other receivablesdivided into portfolios by aging is calculated from the date of recognition.Long-term receivablesThe Company's long-term receivables include the receivables from sales of goods by installments.The Company divides the long-term receivables into several portfolios according to the credit risk characteristicsbased on the following and calculates the expected credit loss on the basis of the portfolios:
? Long-term receivables portfolio 1: receivables from sales of goods by installments? Long-term receivables portfolio 2: other receivablesThe Company calculates the expected credit loss of the receivables from sales of goods by installments based onthe default risk exposure and the expected credit loss rate for the whole duration with reference to the historicalcredit loss experience, the current situation and the forecast of the future economic situation.The Company calculates the expected credit loss of other receivables and long-term receivables divided intoportfolios other than receivables from sales of goods by installments according to the default risk exposure and theexpected credit loss rate in the next 12 months or the whole duration.Debt investment and other debt investmentsFor debt investments and other debt investments, the Company calculates expected credit losses according to thenature of the investment, various types of counterparties and risk exposures, default risk exposures and expectedcredit loss rates in the next 12 months or throughout the duration.Assessment of significant increase in credit riskThe Company compares the risk of default of financial instruments on the balance sheet date with the risk of defaulton the initial recognition date so as to determine the relative change in the default risk of financial instruments inthe expected duration and evaluate whether the credit risk of financial instruments has increased significantly sincethe initial recognition.In determining whether the credit risk has increased significantly since initial recognition, the Company considersreasonable and well-founded information (including forward-looking information) that can be obtained withoutunnecessary additional costs or efforts. The information to be considered by the Company is as follows:
? Failure of the debtor to pay the principal and interest on the due date of the contract;
? Serious deterioration in the external or internal credit rating (if any) of the financial instrument that hasoccurred or is expected;? Serious deterioration of the debtor's operating results that has occurred or is expected;? Changes in the technical, market, economic or legal environment that has occurred or is expected andtheir potential material adverse effect on the repayment ability of the debtor to the Company.According to the nature of financial instruments, the Company evaluates whether the credit risk has increasedsignificantly on the basis of individual financial instruments or portfolios of financial instruments. When evaluatingfinancial instruments on the basis of portfolios, the Company may classify the financial instruments based oncommon credit risk characteristics, such as overdue information and credit risk rating.If it is overdue for more than 30 days, the Company determines that the credit risk of financial instruments hasincreased significantly.Credit-impaired financial assetsThe Company evaluates on the balance sheet date whether credit impairment has occurred on the financial assetsmeasured at amortized cost and on the creditor's debt investment measured at fair value through othercomprehensive income. A financial asset becomes credit-impaired when one or more events that have an adverseimpact on its expected future cash flows occur. Evidence of credit impairment of financial assets includes thefollowing observable information:
? The issuer or the debtor is involved in serious financial difficulties;? The debtor breaches the contract, such as default on or overdue repayment of interest or principal;? The Company, for economic or contractual reasons relating to the debtor's financial difficulty, grants the
debtor concessions that would not have been made in any other circumstances.? There is a great possibility of bankruptcy or other financial restructuring of the debtor;? The financial difficulties of the issuer or debtor result in the disappearance of the active market of such
financial assets.Presentation of provision for expected credit lossIn order to reflect the changes in the credit risk of financial instruments since the initial recognition, the Companyremeasures the expected credit loss on each balance sheet date; the increased or reversed amount of the lossprovision arising therefrom shall be included in the current profits and losses as impairment losses or gains. Theloss provision of the financial assets measured at amortized cost is used to offset their book value presented in thebalance sheet. For the debt investment measured at fair value with its changes included in other comprehensiveincome, the Company recognizes its loss provision in other comprehensive income, which will not offset the bookvalue of the financial assets.Write-offThe Company writes down the book balance of the financial assets when it no longer reasonably expects that thecontractual cash flow of the financial asset can be recovered in whole or in part. Such write-down constitutes thederecognition of related financial assets. This usually occurs when the Company determines that the debtor has noassets or sources of income that can generate sufficient cash flows to repay the amount to be written down. However,
the written-down financial assets may still be affected by the execution activities according to the Company'sprocedures for recovering due amounts.Any financial assets that have been previously written off and subsequently recovered are recognized as a reversalof impairment loss and recorded in the current period's income statement.
(6) Transfer of financial assets
Transfer of financial assets refers to the assignment or delivery of financial assets to the party (transferee) other thanthe issuer of such financial assets.The financial asset is derecognized if the Company has transferred substantially all the risks and rewards ofownership of a financial asset to the transferee. The financial asset is not derecognized if the Company has retainedsubstantially all the risks and rewards of ownership of a financial asset.If the Company neither transfers nor retains almost all risks and rewards of ownership of a financial asset, it shalldeal with them as follows: if the control over the financial asset is waived, the financial asset shall be derecognizedand the assets and liabilities incurred shall be recognized; if the control over the financial asset is not waived, therelevant financial asset shall be recognized to the extent that it continues to be involved in the transferred financialasset, and the relevant liabilities shall be recognized accordingly.
(7) Offset of financial assets and financial liabilities
Financial assets and financial liabilities are presented in the balance sheet with the amount after offsetting each otherwhen the Company has a legal right to offset the recognized financial assets and financial liabilities and the legalright can be exercised currently, and when the Company intends either to settle on a net basis, or to realize thefinancial assets and pay off the financial liabilities simultaneously. In other cases, financial assets and financialliabilities are presented separately in the balance sheet and are not offset against each other.12 Notes receivableRefer to 11 "Financial instruments" in V "Significant Accounting Policies and Accounting Estimates" of SectionX - Financial Report.13 Accounts receivableRefer to 11 "Financial instruments" in V "Significant Accounting Policies and Accounting Estimates" of SectionX - Financial Report.14 Receivables financingRefer to 11 "Financial instruments" in V "Significant Accounting Policies and Accounting Estimates" of SectionX - Financial Report.
15 Other receivablesRefer to 11 "Financial instruments" in V "Significant Accounting Policies and Accounting Estimates" of SectionX - Financial Report.16 Contract assetsRefer to 11 "Financial instruments" in V "Significant Accounting Policies and Accounting Estimates" of SectionX - Financial Report.
17. Inventories
(1) Classification of inventories
The inventories of the Company are divided into raw materials, self-made semi-finished products and goods inprocess, goods in stock, revolving materials, etc.
(2) Valuation method for inventories sent out
The Company's inventories are accounted for at the planned cost when acquired. The difference between the plannedcost and the actual cost is accounted for through the cost variance account, and the cost variance that should beborne by the inventories sent out is carried forward on schedule to adjust the planned cost to the actual cost.
(3) Basis and method for provision of inventory depreciation reserves
On the balance sheet date, inventories are measured at a lower cost and net realizable value. When the net realizablevalue of the inventories is lower than their cost, a provision for inventory depreciation reserves is made.Net realizable value refers to the difference between the estimated sale price of inventory minus the cost to beincurred until completion, estimated sales expenses and related taxes. The net realizable value of inventories isdetermined based on the unambiguous evidence obtained as well as the consideration of the purpose of holdinginventories and the impact of events after the balance sheet date.The Company makes provision for inventory depreciation reserves on an individual inventory item basis. Provisionfor inventory depreciation reserves is made by inventory category for inventories with large quantities and low unitprices.On the balance sheet date, if the factors affecting the previous write-down of inventory value have disappeared, theinventory falling price reserves shall be reversed within the amount originally provided for.
(4) Inventory system
The Company adopts the perpetual inventory system.The Company expenses low-value consumables in full when issued using the one-time write-off method; Packagingmaterials are expensed in full when issued using the one-time write-off method.
18. Long-term receivables
Refer to 11 "Financial instruments" in V "Significant Accounting Policies and Accounting Estimates" of SectionX - Financial Report.
19. Long-term equity investments
Long-term equity investments include equity investments in subsidiaries, joint ventures, and associated enterprises.The investee, which may be subject to significant influence of the Company, is an associated enterprise of theCompany.
(1) Recognition of initial investment cost
Long-term equity investments acquired from the business combination: For the long-term equity investmentacquired from the business combination under common control, the investment cost refers to the share of the bookvalue of the owner's equity of the combined party in the consolidated financial statements of the ultimate controllingparty on the combination date; for the long-term equity investment acquired from the business combination underdifferent control, the investment cost refers to the combination cost.For long-term equity investments acquired by other methods: For those acquired with cash payment, the actualpurchase price shall be recognized as the initial investment cost; for those acquired through the issuance of equitysecurities, the fair value of issued equity securities shall be recognized as the initial investment cost.
(2) Subsequent measurement and recognition of profit or loss
Investments to subsidiaries are accounted for using the cost method unless the investment meets the conditions forheld-for-sale; investments to associated enterprises and joint ventures are accounted for using the equity method.For long-term equity investments calculated by cost method, except for the declared but not yet released cashdividends or profits included in the actual price or consideration paid when the investment is acquired, thedistributed cash dividends or profits declared by the investee shall be recognized as investment income and includedin current profits and losses.For the long-term equity investments accounted for with the equity method, the investment cost is not adjusted ifthe initial investment cost exceeds the share of the fair value of the investee's identifiable net assets at the time ofthe investment; the book value of the long-term equity investment is adjusted, and the difference is included in thecurrent profits and losses if the initial investment cost is less than the share of the fair value of the investee'sidentifiable net assets at the time of the investment.For accounts with the equity method, the investment income and other comprehensive income shall be recognizedrespectively according to the share of the net profits and losses and other comprehensive income realized by theinvestee that shall be enjoyed or shared. Meanwhile, the book value of the long-term equity investments shall beadjusted. The part of the due share shall be calculated according to the distributed profit or cash dividend declaredby the investee, and the book value of the long-term equity investment shall be reduced accordingly. For otherchanges in the owners' equity of the investee except net profit and loss, as well as other comprehensive income andprofit distribution, the book value of long-term equity investment shall be adjusted and included in the capitalreserve (other capital reserve). The Company recognizes its share of the investee's net profits or losses based on the
fair values of the investee's individual separately identifiable assets at the time of acquisition after makingappropriate adjustments thereto in conformity with the accounting policies and accounting periods of the Company.The sum of the fair value of the original equity and the new investment cost is taken as the initial investment costcalculated with the equity method on the date of conversion if it is possible to exert significant influence on orimplement joint control but not constitute control over the investee due to additional investment or other reasons.The cumulative changes in fair value originally included in other comprehensive income related to the originalequity are transferred to retained earnings when the equity method is adopted if the original equity is classified as anon-trading equity instrument measured at fair value through other comprehensive income.In case the Company loses joint control of or the significant influence on the investee due to the disposal of part ofthe equity investment, the residual equity after the disposal is accounted for in accordance with the AccountingStandards for Business Enterprises No.22 - Recognition and Measurement of Financial Instruments on the date oflosing the joint control or significant influence, and the difference between the fair value and the book value isincluded in the current profits and losses. Other comprehensive income recognized from the original equityinvestment accounted with the equity method shall be accounted for on the same basis as the direct disposal ofrelevant assets or liabilities of the investee when the equity method is terminated. Other changes in owner's equityrelated to the original equity investment shall be transferred into current profit and loss.In case the Company loses the right of control over the investee due to the disposal of partial equity investment orother reasons, the equity method is applied, and it is deemed that the residual equity is adjusted with the equitymethod from the time of acquisition; if the residual equity after disposal can exert joint control over or significantinfluence on the investee; the accounting is carried out according to the Accounting Standards for BusinessEnterprises No.22 - Recognition and Measurement of Financial Instruments, and the difference between the fairvalue and the book value on the date of losing control is included in the current profits and losses if the residualequity after disposal cannot exert joint control over or significant influence on the investee.If the shareholding ratio of the Company decreases due to capital increase by other investors, resulting in loss ofcontrol but joint control over or significant influence on the investee, the Company's share of net assets increasesdue to capital increase and share expansion of the investee shall be recognized according to the new shareholdingratio, and the difference from the original book value of long-term equity investment corresponding to the decreasein shareholding ratio that shall be carried forward shall be included in current profits and losses. Then, adjustmentsare made based on the new shareholding ratio with the equity method as if it had been used since the acquisition ofthe investment.Unrealized gains and losses from internal transactions between the Company and its associated enterprises and jointventures that are attributable to the Company are calculated based on the shareholding ratio, and investment profitsand losses are recognized based on the offsetting of that portion. However, the unrealized loss from internaltransactions incurred between the Company and its investee is not offset if it belongs to impairment loss from assetstransferred.
(3) Basis for determining joint control and significant influence on the investeeJoint control refers to the control over certain arrangements under related agreements, and related activities of thearrangement can only be determined with the unanimous consent of the parties sharing the control. During thejudgment of joint control, it is required to determine whether the arrangement is controlled collectively by allparticipants or combinations of participants and then determine whether decisions on activities related to the
arrangement must be made with the unanimous consent of those participants who collectively control thearrangement. It is deemed that all participants or a group of participants collectively control the arrangement ifrelated activities of an arrangement can be decided only with the concerted action of all participants or a group ofparticipants. If there are two or more combinations of parties that can collectively control an arrangement, thissituation does not constitute joint control. Protective rights are not taken into account when determining whetherthere is joint control.Significant influence refers to the power of the investor to participate in making decisions on the financial andoperating policies of the investee, but cannot control or jointly control with other parties over the preparation ofthese policies. The possibility of exerting significant influence on the investee is determined by considering theinfluence of the voting shares of the investee directly or indirectly held by the investor and the influence when it isassumed that the potential voting rights executable for the current period held by the investor and other parties areconverted into the equity of the investee, including the influence of the warrants, stock options and corporate bondswhich can be converted in the current period issued by the investee.It is generally considered that the Company has significant influence on the investee when the Company directlyholds more than 20% (inclusive) but less than 50% of the voting shares of the investee or holds indirectly throughsubsidiaries, unless there is clear evidence indicating that it cannot participate in the production and operationdecisions of the investee under such circumstances, in which case it has no significant influence. It is generally notconsidered that the Company has significant influence on the investee when the Company owns less than 20%(exclusive) of the voting shares of the investee, unless there is clear evidence indicating that it can participate in theproduction and operation decisions of the investee under such circumstances, in which case it has significantinfluence.
(4) Impairment test method and impairment provision methods
For investments to subsidiaries, associated enterprises and joint ventures, the method of provision for assetimpairment is described in 38 "Others" in V "Significant Accounting Policies and Accounting Estimates" of SectionX - Financial Report.20 Investment propertiesMeasurement mode of investment properties: cost methodDepreciation or amortization methodInvestment properties refer to the properties held for earning rent or, capital appreciation, or both. Investmentproperties of the Company include the land use rights that have already been rented, the land use rights held fortransfer after appreciation, and the buildings that have been rented.Investment properties of the Company are initially measured as per the price upon acquisition and depreciated oramortized on schedule as per relevant provisions on fixed assets or intangible assets.For the investment real estate, which is subsequently measured with the cost mode, the method of drawing assetimpairment is described in 38 "Others" in V "Significant Accounting Policies and Accounting Estimates" of SectionX - Financial Report.The disposal income from the sale, transfer, retirement or damage of investment properties shall be included in
current profits and losses after deducting its book value and relevant taxes.
21. Fixed assets
(1) Recognition conditions
Fixed assets of the Company refer to the tangible assets held for the production of goods, rendering of services,renting or operating, and managing, with an useful life exceeding one accounting year.The fixed assets can be recognized only when the economic benefits related to such fixed assets are likely to flowinto the enterprise, and the cost of such fixed assets can be measured reliably.Fixed assets of the Company are initially measured at the actual cost upon acquisition.Subsequent expenditures related to fixed assets are included in the cost of fixed assets when the related economicbenefits are likely to flow into the Company, and the costs can be reliably measured. The daily repair costs offixed assets that do not meet the conditions for the subsequent expenditure of fixed assets capitalization areincluded in the current profits and losses or the costs of relevant assets based on the beneficiaries at the time ofoccurrence. For the replaced part, its book value is derecognized.
(2) Depreciation method
| Category | Depreciation Method | Depreciation Period | Residual Rate | Annual Depreciation Rate |
| Houses and Buildings | Straight-line method | 2020 years | 3-5 | 4.85-4.75 |
| Machinery equipment | Straight-line method | 10 years | 0-3 | 10.00-9.70 |
| Transportation equipment | Straight-line method | 4-10 years | 0-5 | 25.00-9.50 |
| Electronic equipment | Straight-line method | 3 years | 0-5 | 33.33-31.67 |
| Office equipment | Straight-line method | 5 years | 3-5 | 19.40-19.00 |
| Others | Straight-line method | 5 years | 0-5 | 20.00-19.00 |
The Company uses the straight-line method for depreciation. The depreciation of fixed assets starts when they reachthe expected serviceable condition and stops when they are derecognized or classified as non-current assets held for
sale. Depreciation rates are determined based on fixed asset categories, expected useful life, and estimated residualvalues without considering impairment provisions. However, for fixed assets with provision for impairment, theaccumulated amount of provision for impairment shall also be deducted to calculate and determine the depreciationrate.
(3) For the impairment test methods and impairment provision methods of fixed assets, please refer to 38"Others" in V "Significant Accounting Policies and Accounting Estimates" of Section X - Financial Report.
(4) The Company reviews the useful life, expected net residual value and depreciation method of fixed assetsat the end of each year.The useful life of fixed assets shall be adjusted if the expected useful life is different from the original estimate, andthe estimated net residual value shall be adjusted if the estimated net residual value is different from the originalestimate.
(5) Disposal of fixed assets
If a fixed asset is disposed of or if no economic benefit will be obtained from the use or disposal, the recognition ofsuch fixed asset is terminated. The disposal income from the sale, transfer, retirement or damage of fixed assetsshall be included in current profits and losses after deducting its book value and relevant taxes.22 Construction in progressThe cost of construction in progress of the Company is recognized according to the actual construction expenditures,including various necessary construction expenditures incurred during the construction period, borrowing costs thatshall be capitalized before the construction reaches the expected condition for its intended use, and other relevantexpenses.Construction in progress is transferred to fixed assets when it is ready for its intended use.For the method of provision for asset impairment of construction in progress, refer to 38 "Others" in V "SignificantAccounting Policies and Accounting Estimates" of Section X - Financial Report.
23. Borrowing costs
(1) Recognition principles for capitalization of borrowing costs
Borrowing costs incurred by the Company that are directly attributable to the acquisition, construction or productionof qualifying assets are capitalized and included in the cost of related assets; other borrowing costs are recognizedas expenses based on their incurred amounts and included in current profit or loss when incurred. Borrowing costsbegin to be capitalized when all of the following conditions are met:
① Asset expenditures have been incurred, including cash payments, transfers of non-cash assets, or assumptionsof interest-bearing debts for the acquisition, construction or production of qualifying assets;
② Borrowing costs have been incurred;
③ Activities necessary to prepare the asset for its intended use or sale have commenced.
(2) Capitalization period of borrowing costs
The Company ceases capitalizing borrowing costs when qualifying assets have reached their intended usable orsaleable condition. Borrowing costs incurred after qualifying assets have reached their intended usable or saleablecondition are recognized as expenses based on amounts incurred and included in current profit or loss.Capitalization of borrowing costs is suspended during periods in which the acquisition, construction or productionof qualifying assets is abnormally interrupted for more than three consecutive months; Borrowing costs duringnormal interruption periods continue to be capitalized.
(3) Calculation methods for the capitalization rate and amount of borrowing costsFor specific borrowings, the capitalized amount is determined by deducting interest income earned from depositingunused borrowing funds in banks or investment income from temporary investments from the actual interestexpenses incurred during the current period; for general borrowings, the capitalized amount is determined bymultiplying the weighted average of asset expenditures exceeding the specific borrowings by the capitalization rateof general borrowings. The capitalization rate is calculated based on the weighted average interest rate of generalborrowings.During the capitalization period, all exchange differences on specific foreign currency borrowings are capitalized;Exchange differences on general foreign currency borrowings are included in the current profit or loss.
24. Intangible assets
(1) Useful life and its determination basis, estimate, amortization method or review procedureIntangible assets of the Company include land use rights, software, non-patented technologies, etc.Intangible assets are initially measured at cost, and their useful life is analyzed and judged at the time of acquisition.Where the useful life is limited, the intangible asset is amortized over its expected useful life, from the time it isavailable, with an amortization method that reflects the expected realization of the economic benefits associatedwith the asset. The straight-line method is adopted for amortization if the expected realization mode cannot bedetermined reliably. Intangible assets with uncertain useful life are not amortized.The amortization method for intangible assets with limited useful life is as follows:
| Category | Useful Life | Amortization Method | Remarks |
| Land use right | 50 years | Straight-line method | |
| Software | 2-10 years | Straight-line method | |
| Non-patented technology | 5-10 years | Straight-line method |
The Company reviews the useful life and amortization method of intangible assets with limited useful life at theend of each year. If it is different from the previous estimate, the original estimate shall be adjusted and treated as achange in accounting estimates.
The book value of an intangible asset is transferred into the current profits and losses in full if it is expected that theasset cannot bring economic benefits to the enterprise in the future on the balance sheet date.For the method of provision for asset impairment of the intangible assets, refer to 38 "Others" in V "SignificantAccounting Policies and Accounting Estimates" of Section X - Financial Report.
(2) Scope of aggregation of expenditures on research and development and related accounting treatmentmethodsThe Company's research and development expenditures are directly related to the Company's research anddevelopment activities, including research and development labor costs, test expenses, depreciation costs, designfees, and trial production fees.The Company divides the expenditures of internal research and development projects into expenditures at theresearch stage and expenditures at the development stage.The expenditures at the research stage are included in current profits and losses when incurred.Expenditures in the development phase can be capitalized only when all the following conditions are met:
completion of the intangible asset to enable its use or sale is technically feasible; There is an intention to completeand use or sell the intangible asset; The manner in which the intangible asset will generate economic benefits canbe demonstrated, including proving that a market exists for the products produced using the intangible asset or forthe intangible asset itself, or if the intangible asset will be used internally, proving its usefulness; Adequate technical,financial and other resources are available to complete the development and to use or sell the intangible asset; Theexpenditure attributable to the development phase of the intangible asset can be measured reliably. The developmentexpenditures failing to meet the above conditions are included in current profits and losses when they occur.The R&D projects of the Company enter the development stage after project approval by meeting the aboveconditions and passing the technical feasibility and economic feasibility study.The capitalized expenditures at the development stage are presented as development expenditures on the balancesheet and are transferred into intangible assets from the date when the project realizes its intended use.The capitalization conditions of specific research and development projects are as follows: The Company's researchand development project ends with product planning, and the division point of the research and development stageslies in the fact that the overall plan of the development project is prepared and adopted through deliberation anddecision-making on the product project review meeting (that is, project initiation). The expenses incurred in theplanning stage before the project initiation are directly included in the current profits and losses, and those incurredafter the project initiation are included in expenditures in the development stage.
25. Impairment of long-term assets
The asset impairment of long-term equity investment to subsidiaries, associated enterprises and joint ventures,investment real estate subsequently measured by cost model, fixed assets, projects under construction, right-of-useassets, intangible assets, etc. (except for inventories, deferred income tax assets and financial assets) is recognizedwith the following methods:
The Company judges whether there is a sign of impairment to assets on the balance sheet date. If such a sign exists,the Company estimates the recoverable amount and conducts the impairment test. Impairment tests shall be carriedout every year on goodwill resulting from business mergers, intangible assets with uncertain useful life andintangible assets that have not yet reached their intended use, no matter whether there is any sign of impairment.The recoverable amount is the net amount of the fair value of the assets after deducting the disposal expenses or thepresent value of the expected future cash flow of the assets, whichever is higher. The Company estimates therecoverable amount based on a single asset. If it is difficult to estimate the recoverable amount of a single asset, therecoverable amount of the asset group shall be determined based on the asset group to which the asset belongs. Anasset group is determined based on the fact that the main cash inflows generated by the asset group are independentof the cash inflows of other assets or asset groups.When the recoverable amount of an asset or asset group is lower than its book value, the Company writes down itsbook value to the recoverable amount, and the write-down amount is included in current profits and losses, and thecorresponding impairment provision of assets is made at the same time.For the impairment test of goodwill, the book value of goodwill resulting from a business merger is amortized torelevant asset groups with reasonable methods from the acquisition date, or amortized to relevant asset groupportfolio if it is difficult to amortize it to relevant asset groups. Relevant asset groups or portfolios of asset groupsare those that can benefit from the synergies of business merger and are not greater than the reporting segmentdetermined by the Company.If there is any sign of impairment in the asset group or portfolio of asset groups related to goodwill during theimpairment test, the impairment test shall be carried out on the asset group or portfolio of asset groups not includinggoodwill, and the recoverable amount shall be calculated to determine the corresponding impairment loss. Then, animpairment test is carried out on the asset group or portfolio of asset groups including goodwill to compare its bookvalue and recoverable amount, and determine the impairment loss of goodwill if the recoverable amount is lowerthan the book value.Once the impairment loss of assets is determined, it will never be reversed in subsequent accounting periods.
26. Long-term deferred expenses
Long-term unamortized expenses of the Company shall be valued as per actual cost and averagely amortized as perthe expected benefit period. The amortized value of the long-term deferred expenses that cannot benefit the futureaccounting period is included in the current profits and losses.
27. Contract liabilities
The Company presents the contract assets or contract liabilities in the balance sheet according to the relationshipbetween the performance obligations and the customer's payment. The Company presents the contract assets andliabilities under the same contract on a net basis after offsetting each other.
Contractual liability refers to an obligation to transfer goods or services to a customer for which customerconsideration has been received or receivable, such as payments received by an enterprise prior to the transfer ofpromised goods or services.
28. Employee compensation
(1) Accounting method of short-term compensation
Employee compensation refers to various forms of remuneration or compensation given by enterprises to obtainservices provided by employees or to terminate labor relations. Employee compensation includes short-termcompensation, post-employment benefits, dismissal benefits and other long-term employee benefits. The benefitsprovided by the enterprise to employees' spouses, children, dependents, survivors of deceased employees andother beneficiaries also belong to employee compensation.According to liquidity, employee compensation is listed in the "employee compensation payable" and "long-termemployee compensation payable" items of the balance sheet.Short-term compensationIn the accounting period when employees provide services, the Company recognizes the employee wages, bonuses,and social security contributions according to regulations such as medical insurance, work injury insurance andmaternity insurance, as well as housing funds as liability, and includes them in current profits and losses or relevantasset costs.
(2) Accounting method of post-employment benefits
The post-employment benefit plan includes a defined contribution plan and a defined benefit plan. The definedcontribution plan refers to the post-employment benefit plan in which the enterprise will no longer bear the paymentobligation after paying fixed fees to independent funds. The defined benefit plan refers to the post-employmentbenefit plan other than the defined contribution plan.Defined contribution planThe defined contribution plan includes basic pension insurance, unemployment insurance and an enterprise annuityplan.In the accounting period when employees provide services, the Company recognizes the amount payable to adefined contribution plan as a liability, and includes it in the current profit or loss or relevant asset cost.Defined benefit planThe defined benefit plan shows that an actuarial valuation is performed by an independent actuary on the annualbalance sheet date, and the benefit-cost is determined with the expected cumulative benefit unit method. TheCompany recognizes the following components of employee benefits cost arising from defined benefit plans:
① Service costs include current service costs, past service costs and settlement gains or losses. Among them, thecurrent service cost refers to the increase in the present value of the defined benefit plan obligations due to theprovision of services by employees in the current period; the past service cost refers to the increase or decrease inthe present value of the defined benefit plan obligations related to the employee services in the previous period dueto the modification of the defined benefit plan.
② Net interest on net liabilities or assets of defined benefit plans, including interest income of plan assets, interestexpense of defined benefit plan obligations and interest affected by asset ceiling.
③ Changes arising from remeasurement of net liabilities or net assets of defined benefit plans.The Company includes the above items ① and ② in the current profits and losses, unless other accountingstandards require or allow the cost of employee benefits to be included in the cost of assets; item ③ is included inother comprehensive income and will not be reversed back to profit or loss in subsequent accounting periods, andthe part originally included in other comprehensive income within the equity scope is carried forward toundistributed profit when the original defined benefit plan terminates.
(3) Accounting method of dismissal welfare
When the Company provides dismissal welfare to employees, the liabilities of the employee compensation arisingfrom dismissal welfare are recognized at the earlier of the following two dates and included in the current profit orloss: the Company cannot unilaterally provide the dismissal welfare provided due to the labor relation terminationplan or the layoff suggestions; the Company recognizes the costs or expenses related to the restructuring oftermination benefits payment.If the early retirement plan is implemented, the economic compensation before the official retirement date belongsto dismissal welfare. The wages proposed to be paid to the early retired employee and the social insurance premiumsto be paid are included in the current profits and losses in a lump sum from the date when the employee stopsproviding services to the normal retirement date. Economic compensation after the official retirement date (such asa normal pension) belongs to post-employment benefits.
(4) Accounting method of other long-term employee benefits
Other long-term employee benefits provided by the Company to the employees satisfying the conditions forclassifying as a defined contributions plan are accounted for in accordance with the above requirements relating toa defined contribution plan. The benefits that meet the requirements of the defined benefit plan are treated inaccordance with the provisions of the plan. However, the "changes caused by remeasurement of net liabilities or netassets of the defined benefit plan" in relevant employee compensation costs are included in current profits and lossesor relevant asset costs.
29. Estimated liabilities
The Company recognizes the obligations related to contingencies as estimated liabilities if they meet all of thefollowing conditions:
(1) The obligation is the current obligation of the Company;
(2) Performance of this obligation will probably cause an outflow of economic interest of the Company;
(3) The amount of such obligation can be measured reliably.
Expected liabilities are initially measured at the optimal estimate required to perform the relevant current obligation,in careful consideration of the risks, uncertainty, time value of money, and other factors pertinent to theContingencies. The best estimate is determined by discounting the relevant future cash outflow if the time value of
money has a significant impact. At the balance sheet date, the book value of the estimated liabilities is reviewed andadjusted by the Company to reflect the current best estimate.If all or part of the expenditures necessary for clearing off the recognized provisions are expected to be compensatedby a third party or any other party, the amount of compensation shall be recognized as assets separately only whenit is basically sure that the amount can be obtained. The recognized amount of compensation shall not exceed thebook value of recognized liabilities.
30. Share-based payment
(1) Types of share-based payment
The share-based payments of the Company are divided into equity-settled share-based payments and cash-settledshare-based payments.
(2) Determination methods for fair value of equity instruments
The Company recognizes the fair value of equity instruments such as granted options with an active marketaccording to the quotation of the active market. The Company recognizes the fair value of equity instruments suchas granted options without active market by using the option pricing model. The selected option pricing modelconsiders the following factors: A. The exercise price of the option; B. The term of the option; C. The current priceof the underlying shares; D. The expected volatility of the share price; E. The expected dividends on the shares; F.The risk-free interest rate during the term of the option.
(3) Basis for determining the optimal estimate of vested equity instruments
The Company makes the optimal estimate based on the latest follow-up information such as changes in the numberof vesting employees, and corrects the expected number of vested equity instruments on each balance sheet datewithin the vesting period. On the vesting date, the final estimated number of vested equity instruments shall beconsistent with the number of actual vested equity instruments.
(4) Accounting treatment related to implementation, modification and termination of share-based paymentplanShare-based payments settled by equity are measured at the fair value of the equity instruments granted to employees.Where the equity instrument can be vested immediately upon being granted, the share-based payment is includedin relevant costs or expenses at the fair value of the equity instrument on the granting date, and the capital reserveshall be increased accordingly. Where the equity instrument can not be vested until the vesting period comes to anend or until the specified performance conditions are met, at each balance sheet date within the vesting period, theservices obtained in the current period are, based on the optimal estimate of the number of vested equity instruments,including in relevant costs or expenses and capital reserve at the fair value specified on the granting date of equityinstruments. After the vesting date, no adjustment shall be made to the relevant costs or expenses, as well as thetotal amount of the owner's equities that have been confirmed.
Share-based payments settled by cash are measured at the fair value of liabilities recognized based on shares orother equity instruments assumed by the Company. Where the equity instrument can be vested immediately uponbeing granted, the payment shall be included in the relevant costs or expenses at the fair value of the liabilitiesassumed by the Company on the granting date, and the liabilities shall be increased accordingly. Where the share-based payment settled by cash cannot be vested until the vesting period comes to an end or until the specifiedperformance conditions are met, on each balance sheet date within the vesting period, the services acquired in thecurrent period are, based on the optimal estimation of the vesting right, included in costs or expenses andcorresponding liabilities at the fair value of the liabilities assumed by the Company. On each balance sheet date andthe settlement date prior to the settlement of the relevant liabilities, the fair value of the liabilities shall be re-measured, with its changes included in the current profits and losses.When the Company modifies the share-based payment plan, the increase in services obtained shall be recognizedbased on the increase (if any) in the fair value of equity instruments; if the quantity of granted equity instruments isincreased, the fair value of the increased equity instruments shall be recognized accordingly as the increase in theservices obtained. The increase in the fair value of equity instruments refers to the difference between the fair valuesof equity instruments before and after modification on the modification date. If the total fair value of the share-based payment is reduced in the modification or the terms and conditions of the share-based payment plan aremodified in other ways unfavorable to employees, the accounting treatment on acquired services shall continue asif the change has never occurred, unless the Company has canceled part or all of the granted equity instruments.If, during the vesting period, the granted instruments are canceled (except for those canceled because of failure tomeet the non-market conditions of the vesting conditions), the Company shall accelerate the vesting of the grantedequity instruments, and immediately include the amount to be recognized in the remaining vesting period in thecurrent profit and loss, and determine the capital reserve in the meantime. In the event that the employees or otherparties can choose to meet the non-vesting conditions but fail to meet such conditions during the vesting period, theCompany shall treat it as the cancellation of granted equity instruments.
(5) Restricted shares
The Company grants restricted shares to the incentive objects in the equity incentive plan, and the incentive objectssubscribe to the shares preferentially. If the unlocking conditions stipulated in the equity incentive plan are not metsubsequently, the Company will repurchase the shares at the price agreed in advance. If the restricted shares issuedto employees have completed capital increase procedures such as registration as specified, the Company shalldetermine the share capital and capital reserve (share premium) according to the share subscription money receivedfrom employees on the granting date and determine the treasury shares and other payables in terms of the repurchaseobligation.
31. Income
Accounting policies adopted for recognition and measurement of income disclosed by business type
(1) General principles
The Company recognizes its income when it has fulfilled its performance obligations of the contract, i.e., thecustomer has obtained the control rights of the relevant goods or services.If the contract contains two or more performance obligations, the Company shall, at the beginning date of thecontract, apportion the transaction price to each performance obligation according to the relative proportion of theindividual selling price of the goods or services promised by each performance obligation, and measure the incomeaccording to the transaction price apportioned to each performance obligation.In case one of the following conditions is met, the Company will perform the performance obligations within aperiod of time. Otherwise, it will perform the performance obligations at a time point:
① The customer obtains and consumes the economic benefits brought by the performance of the contract by theCompany at the same time.
② The customer can control the goods under construction during the Company's performance;
③ The goods produced during the performance of the Company are irreplaceable, and the Company has beenentitled to receive payment for the performance accumulated so far throughout the term of the contract.For the performance obligations performed within a certain period of time, the Company shall determine the incomewithin that period according to the performance progress. If the performance progress cannot be reasonablyconfirmed, and the costs incurred by the Company can be expected to be compensated, the incomes shall berecognized according to the amount of costs incurred until the performance progress can be reasonably confirmed.For performance obligations performed at a certain time point, the Company shall confirm the income at the timepoint when the customer gains control rights of the relevant goods or services. In determining whether a customerhas obtained the control rights of the goods or services, the Company shall take the following signs intoconsideration:
① The Company enjoys the right to the current collection, i.e., the customer has an obligation to pay immediatelywith respect to the goods;
② The Company has transferred the legal ownership of the goods to the customer, i.e., The customer owns thelegal ownership of the goods;
③ The Company has transferred the goods to the customer in kind, i.e., The customer has possessed the goods;
④ The Company has transferred the major risks and remuneration on the ownership of the goods to the customer,i.e., The customer has obtained the major risks and remuneration on the ownership of the goods.
⑤ The customer has accepted such goods or services.
⑥ Other signs indicate that the customer has obtained the right to control the goods.
(2) Specific methods
The Company's specific method for recognizing revenue from sales of vehicles and their accessories is as follows:
When vehicles and their accessories are transported to the agreed delivery location as specified in the contract, andthe customer has accepted the goods and obtained control of the goods, the Company recognizes revenue.Situations where different operating models for similar businesses involve different revenue recognition methodsand measurement approaches: None
32. Contract cost
The contract cost includes the incremental cost incurred for obtaining a contract and the contract performance cost.Incremental costs incurred for obtaining a contract refer to the costs (such as sales commissions) that would nothave occurred if the Company had not obtained the contract. If the cost is expected to be recovered, the Companyrecognizes it as a contract acquisition cost and an asset. Other expenditures incurred by the Company for obtainingcontracts other than incremental costs that are expected to be recovered are included in current profits and losseswhen incurred.If the cost incurred for contract performance is not within the scope of other accounting standards for businessenterprises such as inventories and meets the following conditions at the same time, the Company recognizes it asan asset for the contract performance cost:
① The cost is directly related to a current or expected contract, including direct labor, direct materials,manufacturing costs (or similar costs), the costs clearly borne by the customer, and other costs incurred only by theContract;
② This cost increases the Company's resources for performing the performance obligations in the future;
③ This cost is expected to be recovered.
Assets recognized as contract acquisition costs and that recognized as contract performance costs (hereinafterreferred to as "assets related to contract costs") are amortized on the same basis as revenue recognition of goods orservices related to the assets and are included in current profits and losses.When the book value of the assets related to the contract cost is higher than the difference between the followingtwo items, the Company will make provision for the impairment of the excess and recognize it as the assetimpairment loss:
① The residual consideration expected to be obtained by the Company from the transfer of goods or services relatedto the asset;
② The estimated costs to be incurred for the transfer of relevant goods or services.
33. Government subsidies
The government subsidies shall be recognized when all the attached conditions are satisfied, and the governmentsubsidies are received.The government subsidies considered as monetary assets are measured at the amount received or receivable. Thegovernment subsidies considered as non-monetary assets are measured based on the fair value, or the nominalamount of 1 yuan if the fair value cannot be acquired reliably.Asset-related government subsidies refer to those obtained by the Company and used for acquiring or forming long-term assets in other ways; otherwise, they are regarded as income-related government subsidies.For the government subsidies with the grant objects not expressly stipulated in the government documents, if theycan be used to form long-term assets, the government subsidies corresponding to the asset value are deemed as thegovernment subsidies related to assets, while the rest is deemed as the one related to income; for the government
subsidies that are difficult to differentiate, the government subsidies as a whole are deemed as income-relatedgovernment subsidies.Asset-related government subsidies are recognized as deferred income and included in profits or losses by stageswith a reasonable and systematic method within the useful life of related assets. For the income-related governmentsubsidies, they shall be included in the current profit and loss if used to compensate for the incurred related costs orlosses; if used to compensate for the related costs or losses during future periods, they shall be included in thedeferred income and included in the current profit and loss during the period when the related costs or losses arerecognized. Government subsidies measured at the nominal amount are directly included in the current profit andloss. The Company adopts the same treatment for transactions with similar government subsidies.The government subsidies related to daily activities shall be included in other incomes based on the substance ofbusiness transactions. Government subsidies irrelevant to daily activities are included in non-business income.If it is necessary to refund the government subsidies that have been recognized, the book value of the assets whichhas been offset at the time of initial recognition is adjusted; the book balance of the deferred income concerned (ifany) is offset, and the excess is included in the current profits and losses; others are directly included in the currentprofits and losses.
34. Deferred income tax assets and deferred income tax liabilities
Income tax includes current income tax and deferred income tax. The income tax shall be included in the currentprofit and loss as income tax expenses, except that the deferred income taxes related to the adjustment of goodwilldue to a business merger or the transactions or matters directly included in the owner's equity are included in theowner's equity.The Company recognizes deferred income tax by the balance sheet liability method according to the temporarydifference between the book value of assets and liabilities on the balance sheet date and the tax base.Relevant deferred tax liabilities shall be recognized for each taxable temporary difference, unless the taxabletemporary difference arises from the following transactions:
(1) The initial recognition of goodwill or the initial recognition of assets or liabilities incurred in a transaction thatis neither a business combination nor affects the accounting profit or taxable income at the time of the transaction(except for individual transactions where the assets and liabilities initially recognized result in equal amounts oftaxable temporary differences and deductible temporary differences);
(2) Concerning the taxable temporary difference related to the investment of subsidiaries, joint ventures andassociated enterprises, the time of reversal of the temporary difference can be controlled, and the temporarydifference is unlikely to be reversed in the foreseeable future.The Company recognizes a deferred tax asset for the carry-forward of deductible temporary differences, deductiblelosses and tax credits to subsequent periods, to the extent that it is probable that future taxable profits will beavailable against which the deductible temporary differences, deductible losses and tax credits can be utilized,except for those incurred in the following transactions:
(1) The transaction is neither a business combination nor affects the accounting profit or taxable income at the timeof the transaction (except for individual transactions where the assets and liabilities initially recognized result inequal amounts of taxable temporary differences and deductible temporary differences);
(2) Corresponding deferred income tax assets are recognized if the deductible temporary difference associated withinvestments in subsidiaries, associated enterprises and joint ventures meets all of the following conditions: Thetemporary difference is likely to be reversed in the foreseeable future, and the taxable income which is used todeduct the deductible temporary difference is likely to be obtained in the future.The Company measures the deferred income tax assets and deferred income tax liabilities at the applicable tax rateduring the expected period for recovering the assets or paying off the liabilities on the balance sheet date and reflectsthe impact on income tax from assets recovery or liability settlement on the balance sheet date.At the balance sheet date, the Company reviews the book value of a deferred income tax asset. If it is likely thatsufficient taxable profits will not be available in future periods to deduct the benefit of the deferred tax assets, thebook value of the deferred tax assets is reduced. Any such write-down shall be subsequently reversed where itbecomes probable that sufficient taxable income will be available.At the balance sheet date, deferred income tax assets and deferred income tax liabilities are presented by net amountafter set-off when both of the following conditions are satisfied:
(1) The taxpayer within the Company has the legal rights to settle the income tax assets and income tax liabilitiesin the current period by net amount;
(2) Deferred income tax assets and deferred tax liabilities are associated with the income taxes imposed by the sametaxation authority on the same taxpayer within the Company.
35. Lease
(1) Accounting treatment methods of the lease with the Company as the lesseeIdentification of leaseOn the commencement date of the contract, the Company, as the lessee or lessor, evaluates whether the customerin the contract is entitled to obtain almost all economic benefits arising from the use of the identified assets duringthe use period and is entitled to dominate the use of the identified assets during the use period. If one party to thecontract abalienates the right to control the use of one or more identified assets within a certain period of time inexchange for consideration, the Company determines that the contract is a lease or includes a lease.The Company acting as the lesseeAt the commencement of the lease term, the Company recognizes right-of-use assets and lease liabilities for allleases, except for simplified short-term leases and low-value asset leases.For the accounting policies of the right-of-use assets, see 38 "Others" in V "Significant Accounting Policies andAccounting Estimates" of Section X - Financial Report.
Lease liabilities shall be initially measured at the present value calculated by the interest rate implicit in the leaseaccording to the unpaid lease payment on the commencement date of the lease term. If the interest rate implicit inthe lease cannot be determined, the incremental borrowing rate shall be used as the discount rate. Lease paymentsinclude fixed payments and in-substance fixed payments, less any lease incentives; Variable lease payments thatdepend on an index or rate; The exercise price of a purchase option if the lessee is reasonably certain to exercisethat option; Payments for terminating the lease if the lease term reflects the lessee exercising an option to terminatethe lease; And amounts expected to be payable under residual value guarantees provided by the lessee. The interestexpenses of the lease liabilities within each lease term shall be calculated subsequently according to the fixedperiodic rate and included in the current profits and losses. Variable lease payments not included in the measurementof lease liabilities are included in the current profits and losses when they actually occur.Short-term leaseShort-term lease refers to a lease with a lease term of not more than 12 months on the commencement date of thelease term, except for the lease containing the purchase option.The Company includes the lease payment for short-term lease into relevant asset costs or current profits and lossesby the straight-line method at each period within the lease term.For short-term leases, the Company selects the aforementioned simplified treatment method for items that meetshort-term lease conditions by category of leased assets.Low-value asset leaseLow-value asset lease refers to the lease in which the value of a single new leased asset is less than 40 thousandyuan.The Company includes the payment of low-value asset leases into relevant asset costs or current profits and losseswith the straight-line method in each period within the lease term.For low-value asset leases, the Company selects the above-simplified treatment method according to the specificconditions of each lease.Lease changeIf the lease changes and meets the following conditions at the same time, the Company takes the lease change as aseparate lease for the accounting treatment: ① The lease change expands the lease scope by increasing the right touse one or more leased assets; and ② the increased consideration is equivalent to the amount by adjusting theseparate price of the expanded lease scope according to the contract.If the lease change is not taken as a separate lease for accounting treatment, the Company will, on the effective dateof the lease change, reallocate the consideration of the changed contract, redetermine the lease term, and remeasurethe lease liabilities according to the changed lease payment and the present value calculated by the revised discountrate.If the lease scope is reduced or the lease term is shortened due to the lease change, the Company will correspondinglyreduce the book value of right-of-use assets and include relevant profits or losses of partial or complete terminationof leasing in current profits and losses.
If the lease liabilities are remeasured due to the other lease changes, the Company shall adjust the book value of theright-of-use asset accordingly.
(2) Accounting methods of lease with the Company as the lessor
When the Company is the lessor, the lease that substantially transfers all risks and rewards related to the ownershipof the assets is recognized as a finance lease, and other leases than finance leases are recognized as operating leases.Finance leaseIn the financial lease, at the commencement of the lease term, the Company takes the net investment in a lease asthe entry value of the finance lease receivables, and the net investment in a lease is the sum of the unguaranteedresidual value and the present value of the lease receipts not yet received at the commencement of the lease termdiscounted at the interest rate implicit in the lease. The Company, as the lessor, calculates and recognizes interestincome in each lease term at a fixed periodic rate. The variable lease payment obtained by the Company as thelessor and not included in the measurement of net lease investment is included in the current profits and losses whenit actually occurs.Derecognition and impairment of finance lease receivables are accounted for according to the ASBE No.22 -Recognition and Measurement of Financial Instruments and the ASBE No.23 - Transfer of Financial Assets.Operating leaseLease income from operating leases is included in current profits or losses by the Company as per the straight-linemethod over the lease term. The initial direct cost related to the operating lease shall be capitalized and amortizedwithin the lease term according to the same base with the recognition of rental income and included in the currentprofits and losses by stages. The variable lease receipts obtained by the Company related to operating leases andnot charged to the lease receipts shall be charged to the current profit and loss when they actually occur.Lease changeIn case of any change in an operating lease, the Company carries out accounting treatment as it is a new lease sincethe effective date of the change, and the advance receipts and receivables related to the lease before the change aredeemed as the receipts of the new lease.If the financial lease changes and meets the following conditions, the Company takes the change as a separate leasefor accounting treatment: ① The change expands the lease scope by increasing the right to use one or more leasedassets; and ② the increased consideration is equivalent to the amount by adjusting the separate price of theexpanded lease scope according to the contract.If the change of finance lease is not taken as a separate lease for accounting treatment, the Company treats thechanged lease under the following circumstances respectively: ① If the change takes effect on the commencementdate of the lease and the lease is classified as an operating lease, the Company takes it as a new lease for accountingtreatment from the effective date of the lease change, and takes the net investment in the lease before the effectivedate of the lease change as the book value of the leased asset; ② If the change takes effect on the commencementdate of the lease and the lease will be classified as a finance lease, the Company shall carry out accounting treatment
in accordance with the provisions of the Accounting Standards for Business Enterprises No.22 - Recognition andMeasurement of Financial Instruments on modifying or renegotiating the contract.
36. Other significant accounting policies and accounting estimates
The Company continuously evaluates the significant accounting estimates and key assumptions adopted based onhistorical experience and other factors, including reasonable expectations for future events. Significant accountingestimates and key assumptions that may lead to significant adjustment risk to the book value of assets and liabilitiesin the next accounting year are presented as follows:
Classification of financial assetsMajor judgments involved in determining the classification of financial assets include the analysis of businessmodels and contractual cash flow characteristics.The Company determines the business model of managing financial assets at the level of the financial asset portfolio,considering the way of evaluating and reporting financial asset performance to key management personnel, the risksaffecting the financial asset performance and their management methods, and the way for the relevant businessmanagement personnel to obtain the remuneration.When evaluating whether the contractual cash flow of financial assets is consistent with the basic loan arrangement,the Company has the following main judgments: May the principal change in the time distribution or amount in theduration due to prepayment and other reasons? Does the interest include only the time value of money, credit risk,other basic borrowing risks, and consideration for costs and profits? For example, does the amount of prepaymentonly reflect the unpaid principal and interest based on the outstanding principal, as well as reasonable compensationpaid due to early termination of the contract?Measurement of expected credit losses on accounts receivableThe Company calculates the expected credit loss of accounts receivable through default risk exposure and theexpected credit loss rate of accounts receivable, and it determines the expected credit loss rate based on defaultprobability and loss given by default. In determining the expected credit loss rate, the Company uses the internalhistorical credit loss experience and other data, and adjusts the historical data according to the current situation andforward-looking information. When the forward-looking information is considered, the indicators used by theCompany include risks of economic downturn, changes in the external market environment, technologicalenvironment and customer conditions. The Company regularly monitors and reviews the assumptions related to thecalculation of expected credit losses.Development expendituresIn determining the capitalization amounts, the management must make assumptions on the expected future cashflow generation of assets, discount rate to be adopted and expected benefit period.Deferred income tax assetsThe deferred tax assets shall be recognized with respect to all unused tax losses to the extent it is highly probablethat there will be sufficient taxable profits available to offset the losses. This requires the management to estimate
the timing and amount of future taxable profit using large amounts of judgment and to determine the recognizedamount of deferred tax assets by referring to the tax planning strategy.Estimated liabilitiesExpected liabilities are initially measured at the optimal estimate required to perform the relevant current obligation,in careful consideration of the risks, uncertainty, time value of money, and other factors pertinent to theContingencies. The best estimate is determined by discounting the relevant future cash outflow if the time value ofmoney has a significant impact. At the balance sheet date, the book value of the estimated liabilities is reviewed andadjusted by the Company to reflect the current best estimate.If all or part of the expenditures necessary for clearing off the recognized provisions are expected to be compensatedby a third party or any other party, the amount of compensation shall be recognized as assets separately only whenit is basically sure that the amount can be obtained. The recognized amount of compensation shall not exceed thebook value of recognized liabilities.
37. Changes in significant accounting policies and accounting estimates
(1) Change in significant accounting policies
?Applicable □Not applicableInterpretation No.18 of Accounting Standards for Business EnterprisesThe Ministry of Finance issued "Interpretation No.18 of Accounting Standards for Business Enterprises" (CK [2024]No.24, Interpretation No.18) on December 31, 2024.Accounting treatment of warranty-type quality assurance does not constitute a separate performance obligationInterpretation No.18 stipulates that when accounting for provisions arising from warranty-type quality assurancethat does not constitute a separate performance obligation, enterprises should, in accordance with the relevantprovisions of "No.13 of Accounting Standards for Business Enterprises- Contingencies", debit "Main OperatingCosts", "Other Operating Costs" or other relevant accounts based on the determined provision amount, and creditthe "Provisions" account. These should be correspondingly presented in the "Operating Costs" item in the incomestatement and in the "Other Current Liabilities", "Non-current Liabilities Due Within One Year", "Provisions" orother relevant items in the balance sheet.The Company has implemented this provision from the date of issuance of Interpretation No.18 and has maderetrospective adjustments.The impact of implementing the above accounting policies on the consolidated income statement for 2024 is asfollows:
| Consolidated income statement items (2024) | Impact amount (Yuan) |
| Sales expenses | -649,934,273.23 |
| Operating costs | 649,934,273.23 |
The impact of implementing the above accounting policies on the consolidated income statement for 2023 is asfollows:
| Consolidated income statement items (2023) | Before adjustment (Yuan) | Adjustment amount (Yuan) | After adjustment (Yuan) |
| Sales expenses | 1,677,186,816.57 | -573,588,104.47 | 1,103,598,712.10 |
| Operating costs | 58,827,779,239.02 | 573,588,104.47 | 59,401,367,343.49 |
(2) Change in significant accounting estimates
□Applicable ?Not applicable
(3) Adjustment of relevant items in the financial statements at the beginning of the year after the firstimplementation of the new accounting standards since 2024
□Applicable ?Not applicable
38. Others
(1) Fair value measurement
Fair value refers to the price to be received for the sale of an asset or to be paid for the transfer of liability by marketparticipants in the orderly transaction on the measurement date.The Company measures related assets or liabilities at fair value, assuming that the sale of an asset or the transfer ofliability is conducted in major markets for relevant assets or liabilities in an orderly transaction. If the major marketis not provided, the transaction shall be assumed to be performed in the most favorable market for relevant assetsor liabilities. Major markets (or most favorable markets) are the markets where the Company can enter on themeasurement date. The Company uses the assumptions used by market participants to maximize their economicbenefits when they price the asset or liability.The fair value of financial assets or financial liabilities with the active market is determined based on quotations inthe active market by the Company. The fair value of a financial instrument without an active market is determinedthrough valuation techniques.When non-financial assets are measured at fair value, it is required to consider the ability of market participants touse the asset for optimal purposes to produce economic benefits, or to sell the asset to other market participants thatcan use such assets for optimal purposes to produce economic benefits.The Company shall adopt the estimation technique that is applicable in the current conditions and is supportedsufficiently by available data and other information. The relevant observable input values shall be used in priorityduring the application of the estimation technique. Only when relevant observable value cannot be obtained or canbe obtained but is not feasible can the unobservable input value be used.For assets and liabilities measured or disclosed at fair value in the financial statements, the level to which the fairvalue belongs is determined according to the lowest level input value that is of significance for the whole fair valuemeasurement: The input value for the first level refers to the unadjusted quotation of the same assets or liabilities inthe active market that can be obtained on the measurement date; the input value for the second level refers to theinput value that can be directly or indirectly observed for relevant assets or liabilities other than that for the firstlevel; and the input value for the third level refers to the input value that cannot be observed for relevant assets orliabilities.
The Company reassesses the assets and liabilities successively measured at fair value recognized in financialstatements on each balance sheet date to determine the transition among fair value measurement levels.
(2) Right-of-use assets
1) Recognition conditions for right-of-use assets
Right-of-use assets refer to the right of the Company, as the lessee, to use the leasing assets within the lease term.At the commencement date of the lease term, the right-of-use assets are initially measured at cost. This cost includesthe initial measurement amount of lease liabilities, lease payments made on or before the lease commencement date,from which any lease incentives enjoyed (if any) needed to be deducted, initial direct costs incurred by the Companyas a lessee, and the estimated costs expected to be incurred by the Company as a lessee for dismantling and removingthe leased asset, restoring the leased asset's site, or restoring the leased asset to the contractual conditions asstipulated in the lease agreement. The Company, as the lessee, recognizes and measures the cost of demolition andrestoration in accordance with the Accounting Standards for Business Enterprises No.13 - Contingencies.Subsequent adjustments are made for any remeasurement of the lease liabilities.
2) Depreciation method of right-of-use assets
The Company uses the straight-line method for depreciation. If the Company, as the lessee, can reasonably confirmthat it obtains the ownership of the leasing assets at the expiration of the lease term, the depreciation shall be drawnwithin the remaining useful life of the leasing assets. In case of a failure to reasonably determine the ownership ofthe leased assets at the end of the lease period, the depreciation shall be drawn within the lease term or the remaininguseful life of leasing assets, whichever is shorter.
3) The impairment test method and drawing method for impairment provision of right-of-use assets aredescribed in 38 "Others" in V "Significant Accounting Policies and Accounting Estimates" of Section X- Financial Report.
(3) Work safety cost and maintenance & renovation cost
The Company withdraws the work safety cost month by month in an average manner by taking the method of excessregression based on the actual operating income of the previous year according to the provisions of CZ [2022]No.136 document. The specific standards are as follows:
For mechanical manufacturing enterprises with operating revenue not exceeding 10 million yuan, the accrual rateis 2.35%; For the portion of operating revenue exceeding 10 million yuan up to 100 million yuan, the accrual rateis 1.25%; For the portion of operating revenue exceeding 100 million yuan up to 1 billion yuan, the accrual rate is
0.25%; For the portion of operating revenue exceeding 1 billion yuan up to 5 billion yuan, the accrual rate is 0.1%;For the portion of operating revenue exceeding 5 billion yuan, the accrual rate is 0.05%.For transportation enterprises, the work safety cost is withdrawn month by month in an average manner accordingto the following standards based on the actual operating income in the previous year: 1% for ordinary freightbusiness, 1.5% for passenger transportation, pipeline transportation, dangerous goods transportation and otherspecial freight businesses. Work safety costs and maintenance & renovation costs are included in the cost of relevantproducts or the current profit and loss when withdrawn, and are also included in the "special reserve" account.
For the withdrawn work safety cost and maintenance & renovation cost used within the specified scope, thosebelong to expense expenditures are directly offset by specific reserves; those costs incurred via collection under theitem of "construction in progress" are recognized when the safety project completes and is ready for the intendeduse. At the same time, the Company will offset the specific reserves according to the cost that formed fixed assetsand determine the accumulated depreciation of the same amount. The fixed assets will no longer be depreciated insubsequent periods.
(4) Repurchase of shares
Shares repurchased by the Company are managed as treasury shares before being canceled or transferred, and allexpenditures on repurchased shares are transferred to treasury share costs. Considerations in the payment for sharesrepurchase and reduced owner's equity in transaction expenses are not recognized as profits or losses duringrepurchase, assignment and write-off of the Company's shares.The transferred treasury shares are included in the capital reserve based on the difference between the amountactually received and the book value of the treasury shares. The surplus reserve and undistributed profits shall beoffset if the capital reserve is insufficient to offset. The canceled treasury shares are used to offset the capital reservebased on the difference between the book balance and the face value of the canceled treasury shares by reducing theshare capital according to the face value of the shares and the number of canceled shares. The surplus reserve andundistributed profits shall be offset if the capital reserve is insufficient to offset.
(5) Asset impairment
The asset impairment of long-term equity investment to subsidiaries, associated enterprises and joint ventures,investment real estate subsequently measured by cost model, fixed assets, projects under construction, right-of-useassets, intangible assets, etc. (except for inventories, deferred income tax assets and financial assets) is recognizedwith the following methods:
The Company judges whether there is a sign of impairment to assets on the balance sheet date. If such a sign exists,the Company estimates the recoverable amount and conducts the impairment test. Impairment tests shall be carriedout every year on goodwill resulting from business mergers, intangible assets with uncertain useful life andintangible assets that have not yet reached their intended use, no matter whether there is any sign of impairment.The recoverable amount is the net amount of the fair value of the assets after deducting the disposal expenses or thepresent value of the expected future cash flow of the assets, whichever is higher. The Company estimates therecoverable amount based on a single asset. If it is difficult to estimate the recoverable amount of a single asset, therecoverable amount of the asset group shall be determined based on the asset group to which the asset belongs. Anasset group is determined based on the fact that the main cash inflows generated by the asset group are independentof the cash inflows of other assets or asset groups.When the recoverable amount of an asset or asset group is lower than its book value, the Company writes down itsbook value to the recoverable amount, and the write-down amount is included in current profits and losses, and thecorresponding impairment provision of assets is made at the same time.For the impairment test of goodwill, the book value of goodwill resulting from a business merger is amortized torelevant asset groups with reasonable methods from the acquisition date, or amortized to relevant asset groupportfolio if it is difficult to amortize it to relevant asset groups. Relevant asset groups or portfolios of asset groups
are those that can benefit from the synergies of business merger and are not greater than the reporting segmentdetermined by the Company.If there is any sign of impairment in the asset group or portfolio of asset groups related to goodwill during theimpairment test, the impairment test shall be carried out on the asset group or portfolio of asset groups not includinggoodwill, and the recoverable amount shall be calculated to determine the corresponding impairment loss. Then, animpairment test is carried out on the asset group or portfolio of asset groups including goodwill, to compare its bookvalue and recoverable amount, and determine the impairment loss of goodwill if the recoverable amount is lowerthan the book value.Once the impairment loss of assets is determined, it will never be reversed in subsequent accounting periods.
VI. Taxes
1. Main taxes and tax rates
| Tax Category | Tax Basis | Tax Rate |
| VAT | Taxable value-added tax (the tax payable is calculated by multiplying taxable sales by the applicable tax rate and then deducting input tax allowed to be deducted for the current period) | 18%, 15%, 13%, 9%, 6%, 5% |
| Urban maintenance and construction tax | Turnover tax actually paid | 7%, 5%, 3% |
| Corporate income tax | Taxable income | 25% |
| Education surcharges | Turnover tax actually paid | 3% |
| Local educational surcharges | Turnover tax actually paid | 2% |
| Land use tax | Land use area | 9 yuan/m2, 14 yuan/m2, etc. |
| Property tax | Property residual value and rental income | 1.2%, 12% |
Disclosure of different corporate income tax rates for taxable entities
| Name of Taxpayer | Income tax rate |
| The Company | 25% |
| Jiefang Limited | 15% |
| Wuxi Dahao Power Co., Ltd. | 25% |
| FAW Jiefang (Qingdao) Automotive Co., Ltd. | 25% |
| FAW Jiefang Dalian Diesel Engine Co., Ltd. | 15% |
| FAW Jiefang Austria R&D Co., Ltd. | 23% |
| FAW Jiefang Automotive Sales Co., Ltd. | 25% |
| FAW Jiefang Uni-D Transportation Technology (Tianjin) Co., Ltd. | 25% |
| Jiefang Motors Tanzania Ltd. | 30% |
| FAW Vehicle Manufacturing South Africa Co., Ltd. | 27% |
| FAW (Africa) Investment Co., Ltd. | 25% |
| FAW Jiefang Group International Automobile Co., Ltd. | 25% |
2. Tax preference
(1) Income tax
Jiefang Limited, a subsidiary of the Company, is recognized as a high-tech enterprise, with a validity period of threeyears and an income tax rate of 15% within the validity period according to the High-tech Enterprise Certificate(issued on October 16, 2023, with a certificate number of GR202322000922) jointly issued by the Science andTechnology Department of Jilin Province, the Department of Finance of Jilin Province and the Jilin Provincial TaxService of State Taxation Administration.FAW Jiefang Dalian Diesel Engine Co., Ltd., a subsidiary of the Company, is recognized as a high-tech enterprisewith a validity period of three years and an income tax rate of 15% within the validity period according to the listof the second batch of high-tech enterprises in 2024 (with a certificate number of GR202421200987) issued byDalian on December 24, 2024.
(2) VAT
FAW Jiefang Automotive Co., Ltd. and FAW Jiefang Dalian Diesel Engine Co., Ltd. satisfy the conditions foradvanced manufacturing enterprises and are allowed to add 5% of the current deductible input tax to offset theamount of VAT payable from January 1, 2023 according to the Document No.43 issued by the Ministry of Financeand the State Taxation Administration in 2023, Announcement on VAT Additional Tax Credit Policy for AdvancedManufacturing Enterprises.VII. Notes to Items in Consolidated Financial Statements
1. Monetary capital
Unit: Yuan
| Item | Ending balance | Opening balance |
| Cash on hand | 300,158.23 | 38,698.84 |
| Bank deposit | 10,959,276,854.87 | 9,181,802,999.73 |
| Other monetary capital | 22,157,571.16 | 24,815,735.14 |
| Deposit in finance companies | 8,871,226,437.40 | 14,338,922,970.68 |
| Total | 19,852,961,021.66 | 23,545,580,404.39 |
| Including: total amount deposited abroad | 442,153,591.03 | 336,307,985.27 |
Other description:
Details of restricted cash are as follows: Unit: Yuan
| Item | Ending balance | Ending balance of the previous year |
| Security deposit for three types of personnel | 28,438,604.73 | 27,839,503.40 |
| Housing maintenance fund | 22,157,571.16 | 22,103,193.44 |
| Court freezing | 214,000.00 | 725,230.81 |
| Total | 50,810,175.89 | 50,667,927.65 |
2. Notes receivable
(1) Classified presentation of notes receivable
Unit: Yuan
| Item | Ending balance | Opening balance |
| Commercial acceptance notes | 2,641,582.80 | 44,626,048.13 |
| Total | 2,641,582.80 | 44,626,048.13 |
(2) Disclosure by the method of provision for bad debts
Unit: Yuan
| Category | Ending balance | Opening balance | ||||||||
| Book balance | Provision for Bad Debts | Book Value | Book balance | Provision for Bad Debts | Book Value | |||||
| Amount | Scale | Amount | Provision proportion | Amount | Scale | Amount | Provision proportion | |||
| Including: | ||||||||||
| Notes receivable with provision for bad debts by portfolio | 2,649,000.00 | 100.00% | 7,417.20 | 0.28% | 2,641,582.80 | 44,841,286.30 | 100.00% | 215,238.17 | 0.48% | 44,626,048.13 |
| Including: | ||||||||||
| Commercial acceptance bill | 2,649,000.00 | 100.00% | 7,417.20 | 0.28% | 2,641,582.80 | 44,841,286.30 | 100.00% | 215,238.17 | 0.48% | 44,626,048.13 |
| Total | 2,649,000.00 | 100.00% | 7,417.20 | 0.28% | 2,641,582.80 | 44,841,286.30 | 100.00% | 215,238.17 | 0.48% | 44,626,048.13 |
Provision for bad debts by portfolio: commercial acceptance bill
Unit: Yuan
| Name | Ending balance | ||
| Book balance | Provision for Bad Debts | Provision proportion | |
| Within 1 year | 2,649,000.00 | 7,417.20 | 0.28% |
| Total | 2,649,000.00 | 7,417.20 | |
Description of the basis for determining this portfolio:
If the provision for bad debts of notes receivable is withdrawn based on the general model of expected creditlosses:
?Applicable □Not applicable
Unit: Yuan
| Provision for Bad Debts | Stage I | Stage II | Stage III | Total |
| Expected Credit Losses for the Next 12 Months | Expected credit loss in the duration (credit impairment not occurred) | Expected credit loss for the entire duration (with credit impairment) | ||
| Balance as of January 1, 2024 | 215,238.17 | 215,238.17 | ||
| Balance on January 1, 2024 in the current period | ||||
| Provision in the current period | -207,820.97 | -207,820.97 | ||
| Balance as of December 31, 2024 | 7,417.20 | 7,417.20 |
Basis for stage classification and bad debt provision rates: Stage I provisions are based on aging, with a rate of
0.28% for receivables within 1 year.
Explanation of significant changes in the carrying amount of notes receivable for which loss allowances changedduring the current period: None
(3) Provision for bad debts provided, recovered or reversed in the current periodProvision for bad debts in the current period:
Unit: Yuan
| Category | Opening balance | Change in the Current Period | Ending balance | |||
| Provision | Recovery or reversal | Write-off | Others | |||
| Commercial acceptance bill | 215,238.17 | -207,820.97 | 7,417.20 | |||
| Total | 215,238.17 | -207,820.97 | 7,417.20 | |||
Important provision for bad debts recovered or reversed in the current period:
□Applicable ?Not applicable
3. Accounts receivable
(1) Disclosure by aging
Unit: Yuan
| Aging | Ending book balance | Beginning Book Balance |
| Within 1 year (including 1 year) | 6,872,611,350.77 | 2,149,306,339.50 |
| Including: 0-6 months | 6,651,660,144.83 | 2,000,561,741.56 |
| 7-12 months | 220,951,205.94 | 148,744,597.94 |
| 1-2 years | 157,505,139.84 | 105,577,172.64 |
| 2-3 years | 75,249,438.78 | 124,209,251.51 |
| Over 3 years | 217,725,478.29 | 206,012,308.00 |
| 3-4 years | 23,161,532.86 | 46,216,240.91 |
| 4-5 years | 38,071,959.47 | 5,578,090.58 |
| Over 5 years | 156,491,985.96 | 154,217,976.51 |
| Total | 7,323,091,407.68 | 2,585,105,071.65 |
(2) Disclosure by the method of provision for bad debts
Unit: Yuan
| Category | Ending balance | Opening balance | ||||||||
| Book balance | Provision for Bad Debts | Book Value | Book balance | Provision for Bad Debts | Book Value | |||||
| Amount | Scale | Amount | Provision proportion | Amount | Scale | Amount | Provision proportion | |||
| Accounts receivable with provision for bad debts on an individual basis | 178,969,510.25 | 2.44% | 156,416,729.05 | 87.40% | 22,552,781.20 | 185,971,701.17 | 7.19% | 152,713,675.53 | 82.12% | 33,258,025.64 |
| Including: | ||||||||||
| Accounts receivable with provision for bad debts by portfolio | 7,144,121,897.43 | 97.56% | 99,378,536.09 | 1.39% | 7,044,743,361.34 | 2,399,133,370.48 | 92.81% | 89,282,746.98 | 3.72% | 2,309,850,623.50 |
| Including: | ||||||||||
| Including: Aging portfolio | 7,144,121,897.43 | 97.56% | 99,378,536.09 | 1.39% | 7,044,743,361.34 | 2,399,133,370.48 | 92.81% | 89,282,746.98 | 3.72% | 2,309,850,623.50 |
| Total | 7,323,091,407.68 | 100.00% | 255,795,265.14 | 3.49% | 7,067,296,142.54 | 2,585,105,071.65 | 100.00% | 241,996,422.51 | 9.36% | 2,343,108,649.14 |
Provision for bad debts on an individual basis
Unit: Yuan
| Name | Opening balance | Ending balance | ||||
| Book balance | Provision for Bad Debts | Book balance | Provision for Bad Debts | Provision proportion | Reasons for provision | |
| Jiangsu Xinrui New Energy Vehicle Technology Co., Ltd. | 37,612,001.70 | 37,612,001.70 | 37,612,001.70 | 37,612,001.70 | 100.00% | It is highly probable that the amounts will not be recovered |
| MOHAMMED ENTERPRISES (T) LTD, | 11,772,391.81 | 11,772,391.81 | 11,948,079.30 | 11,948,079.30 | 100.00% | It is highly probable that the amounts will not be recovered |
| AFRICA LOGISTICS SOLUTIONS LIMITED | 11,061,236.75 | 11,061,236.75 | 11,226,311.19 | 11,226,311.19 | 100.00% | It is highly probable that the amounts will not be recovered |
| THOSMA LOGISTICS LIMITED | 10,659,505.50 | 3,209,585.42 | 10,820,948.89 | 3,246,284.67 | 30.00% | It is highly probable that the amounts will not be recovered |
| FUHUA MOTORS | 9,918,717.47 | 2,904,817.47 | 10,066,741.31 | 3,052,841.31 | 30.33% | It is highly probable that the amounts will not be recovered |
| MO GREEN INTERNATIONAL CO.LTD | 9,575,810.40 | 2,903,460.94 | 9,720,879.01 | 2,916,263.70 | 30.00% | It is highly probable that the amounts will not be recovered |
| Zhejiang Hanglun Ligang Trading Co., Ltd. | 8,581,536.83 | 8,581,536.83 | 8,581,536.83 | 8,581,536.83 | 100.00% | It is highly probable that the amounts will not be recovered |
| Putian New Energy Automotive (Shandong) Co., Ltd. | 8,156,900.00 | 8,156,900.00 | 727,900.00 | 727,900.00 | 100.00% | It is highly probable that the amounts will not be recovered |
| Dalian Qingfeng | 8,043,264.87 | 8,043,264.87 | 8,043,264.87 | 8,043,264.87 | 100.00% | It is highly probable |
| Bus Co., Ltd. | that the amounts will not be recovered | |||||
| REDDYFARMSLIMITE | 7,732,179.52 | 7,732,179.52 | 100.00% | It is highly probable that the amounts will not be recovered | ||
| Beijing Hotan Automobile Modification Co., Ltd. | 7,436,520.00 | 7,436,520.00 | 7,436,520.00 | 7,436,520.00 | 100.00% | It is highly probable that the amounts will not be recovered |
| Changchun Xiongtu New Energy Vehicle Co., Ltd. | 6,230,500.00 | 6,230,500.00 | 6,230,500.00 | 6,230,500.00 | 100.00% | It is highly probable that the amounts will not be recovered |
| Zhonghe Shunyang Supply Chain Management (Jilin) Co., Ltd. | 5,643,600.00 | 5,643,600.00 | 5,643,600.00 | 5,643,600.00 | 100.00% | It is highly probable that the amounts will not be recovered |
| Others | 51,279,715.84 | 39,157,859.74 | 43,179,047.63 | 42,019,445.96 | 97.31% | It is highly probable that the amounts will not be recovered |
| Total | 185,971,701.17 | 152,713,675.53 | 178,969,510.25 | 156,416,729.05 |
Bad debt provision made as per portfolio:
Unit: Yuan
| Name | Ending balance | ||
| Book balance | Provision for Bad Debts | Provision proportion | |
| Within 1 year | 6,871,181,268.41 | 14,976,650.57 | 0.22% |
| 1-2 years | 139,485,746.96 | 11,293,705.62 | 8.10% |
| 2-3 years | 60,589,030.29 | 9,518,353.46 | 15.71% |
| 3-4 years | 23,161,532.86 | 13,885,507.53 | 59.95% |
| Over 4 years | 49,704,318.91 | 49,704,318.91 | 100.00% |
| Total | 7,144,121,897.43 | 99,378,536.09 | |
Description of the basis for determining this portfolio:
If the provision for bad debts of accounts receivable is withdrawn based on the general model of expected creditlosses:
?Applicable □Not applicable
Unit: Yuan
| Provision for Bad Debts | Stage I | Stage II | Stage III | Total |
| Expected Credit Losses for the Next 12 Months | Expected credit loss in the duration (credit impairment not occurred) | Expected credit loss for the entire duration (with credit impairment) | ||
| Balance as of January 1, 2024 | 6,510,874.43 | 82,771,872.55 | 152,713,675.53 | 241,996,422.51 |
| Balance on January 1, 2024 in the current period | ||||
| -- Transfer to stage II | -432,405.82 | 432,405.82 | ||
| Provision in the current period | 8,730,475.36 | 177,745.51 | 10,629,465.24 | 19,537,686.11 |
| Reversal in the current period | 7,429,000.00 | 7,429,000.00 | ||
| Other changes | -167,706.60 | -1,019,861.64 | -502,588.28 | -1,690,156.52 |
| Balance as of December 31, 2024 | 14,976,650.57 | 84,401,885.52 | 156,416,729.05 | 255,795,265.14 |
Basis for stage classification and bad debt provision rates: For Stage I and Stage II, provisions are based on aging,with rates of 0.22% for within 1 year, 8.10% for 1-2 years, 15.71% for 2-3 years, 59.95% for 3-4 years, and 100%for over 4 years. For Stage III, the Company measures the loss allowance based on lifetime expected credit lossesfor such accounts receivable.Description of significant changes in the book balance of accounts receivable with changes in provision for loss inthe current period: None
(3) Provision for bad debts provided, recovered or reversed in the current periodProvision for bad debts in the current period:
Unit: Yuan
| Category | Opening balance | Change in the Current Period | Ending balance | |||
| Provision | Recovery or reversal | Write-off | Others | |||
| Accounts receivable | 241,996,422.51 | 19,537,686.11 | 7,429,000.00 | -1,690,156.52 | 255,795,265.14 | |
| Total | 241,996,422.51 | 19,537,686.11 | 7,429,000.00 | -1,690,156.52 | 255,795,265.14 | |
Important provision for bad debts recovered or reversed in the current period:
Unit: Yuan
| Name of Unit | Amount recovered or reversed | Reason for reversal | Recovery method | Basis of determining the proportion of provision for original bad debts and its rationality |
| Putian New Energy Automotive (Shandong) Co., Ltd. | 7,429,000.00 | Recovered | Notes, cash | Litigation has been initiated; the counterparty faces financial difficulties, making recovery |
| unlikely | ||||
| Total | 7,429,000.00 |
(4) Other accounts receivable and contractual assets from the top five borrowers classified based on theending balance
Unit: Yuan
| Name of Unit | Ending balance of accounts receivable | Ending balance of contractual assets | Ending balance of accounts receivable and contractual assets | Proportion in total ending balance of accounts receivable and contractual assets | Ending balance of bad debt provision for accounts receivable and impairment provision for contractual assets |
| China FAW Group Import & Export Co., Ltd. | 5,859,058,467.14 | 5,859,058,467.14 | 79.84% | 7,201,938.50 | |
| Customer 1 | 96,904,000.00 | 96,904,000.00 | 1.32% | 271,331.20 | |
| Customer 2 | 58,184,000.00 | 58,184,000.00 | 0.79% | 162,915.20 | |
| Customer 3 | 57,462,872.71 | 57,462,872.71 | 0.78% | 804,480.22 | |
| FAW-HONGTA Yunnan Automobile Co., Ltd. | 43,170,001.84 | 43,170,001.84 | 0.59% | 16,226,515.53 | |
| Total | 6,114,779,341.69 | 6,114,779,341.69 | 83.32% | 24,667,180.65 |
4. Contract assets
(1) Contractual assets
Unit: Yuan
| Item | Ending balance | Opening balance | ||||
| Book balance | Provision for Bad Debts | Book Value | Book balance | Provision for Bad Debts | Book Value | |
| Contract assets | 15,055,893.05 | 600,351.00 | 14,455,542.05 | 18,023,563.08 | 440,706.26 | 17,582,856.82 |
| Total | 15,055,893.05 | 600,351.00 | 14,455,542.05 | 18,023,563.08 | 440,706.26 | 17,582,856.82 |
(2) Disclosure by the method of provision for bad debts
Unit: Yuan
| Category | Ending balance | Opening balance | ||||||||
| Book balance | Provision for Bad Debts | Book Value | Book balance | Provision for Bad Debts | Book Value | |||||
| Amount | Scale | Amount | Provision proportion | Amount | Scale | Amount | Provision proportion | |||
| Including: | ||||||||||
| Provision for bad debts made by portfolio | 15,055,893.05 | 100.00% | 600,351.00 | 3.99% | 14,455,542.05 | 18,023,563.08 | 100.00% | 440,706.26 | 2.45% | 17,582,856.82 |
| Including: | ||||||||||
| Total | 15,055,893.05 | 100.00% | 600,351.00 | 3.99% | 14,455,542.05 | 18,023,563.08 | 100.00% | 440,706.26 | 2.45% | 17,582,856.82 |
Bad debt provision made as per portfolio:
Unit: Yuan
| Name | Ending balance | ||
| Book balance | Provision for Bad Debts | Provision proportion | |
| Within 1 year | 13,802,561.97 | 32,721.57 | 0.24% |
| 1-2 years | 403,404.08 | 49,938.77 | 12.38% |
| 2-3 years | 469,927.00 | 137,690.66 | 29.30% |
| Over 3 years | 380,000.00 | 380,000.00 | 100.00% |
| Total | 15,055,893.05 | 600,351.00 | |
Description of the basis for determining this portfolio:
Provision for bad debts based on the general model of expected credit losses?Applicable □Not applicable
Unit: Yuan
| Provision for Bad Debts | Stage I | Stage II | Stage III | Total |
| Expected Credit Losses for the Next 12 Months | Expected credit loss in the duration (credit impairment not occurred) | Expected credit loss for the entire duration (with credit impairment) | ||
| Balance as of January 1, 2024 | 60,935.81 | 379,770.45 | 440,706.26 | |
| Balance on January 1, 2024 in the current period | ||||
| Provision in the current period | -28,214.24 | 187,858.98 | 159,644.74 | |
| Balance as of December 31, 2024 | 32,721.57 | 567,629.43 | 600,351.00 |
Basis for stage classification and bad debt provision rates: For Stage I and Stage II, provisions are based on aging,with rates of 0.24% for within 1 year, 12.38% for 1-2 years, 29.30% for 2-3 years, and 100% for over 3 years.Description of significant changes in the book balance of contractual assets with changes in provision for loss in thecurrent period: None
(3) Provision for bad debts provided, recovered or reversed in the current period
Unit: Yuan
| Item | Provision in the current period | Recovery or reversal in the current period | Charge-off/Write-off in the Current Period | Reason |
| Impairment provision of contract assets | 159,644.74 | Risks in payment collection | ||
| Total | 159,644.74 | —— |
Important provision for bad debts recovered or reversed in the current period:
5. Receivables financing
(1) Presentation of receivables financing by category
Unit: Yuan
| Item | Ending balance | Opening balance |
| Notes receivable | 10,019,816,248.98 | 4,878,126,972.73 |
| Total | 10,019,816,248.98 | 4,878,126,972.73 |
(2) Financing of receivables endorsed or discounted by the Company at the end of the period and not yetdue on the balance sheet date
Unit: Yuan
| Item | Derecognized amount at the end of the period | Amount not derecognized at the end of the period |
| Bank acceptance bill | 28,875,448,786.42 | |
| Total | 28,875,448,786.42 |
Certain subsidiaries of the Company discount and endorse some bank acceptance bills based on their daily cashmanagement requirements; therefore, these subsidiaries' bank acceptance bills are classified as financial assetsmeasured at fair value through other comprehensive income.The Company has no bank acceptance bills with impairment provisions for individual items. At the end of theperiod, the Company believes that the bank acceptance bills held have no material credit risk and do not bringmaterial losses as a result of a bank default.
6. Other receivables
Unit: Yuan
| Item | Ending balance | Opening balance |
| Dividends receivable | 157,707,661.77 | |
| Other receivables | 1,182,925,650.71 | 1,320,113,974.68 |
| Total | 1,340,633,312.48 | 1,320,113,974.68 |
(1) Dividends receivable
1) Classification of dividends receivable
Unit: Yuan
| Item (or Investee) | Ending balance | Opening balance |
| First Automobile Finance Co., Ltd. | 156,960,226.90 | |
| FAW Jiefang Fujie (Tianjin) Technology Industry Co., Ltd. | 747,434.87 | |
| Total | 157,707,661.77 |
(2) Other receivables
1) Classification of other receivables by nature
Unit: Yuan
| Nature | Ending book balance | Beginning Book Balance |
| Current account | 916,206,955.43 | 1,202,191,858.30 |
| Claim payment | 262,619,355.01 | 192,151,504.78 |
| Margin, deposit | 30,382,472.86 | 41,880,669.47 |
| Reserve fund | 9,876,260.52 | 621,409.08 |
| Total | 1,219,085,043.82 | 1,436,845,441.63 |
2) Disclosure by aging
Unit: Yuan
| Aging | Ending book balance | Beginning book balance |
| Within 1 year (including 1 year) | 348,766,762.84 | 582,287,476.30 |
| Including: 0-6 months | 347,605,932.37 | 566,702,655.95 |
| 6-12 months | 1,160,830.47 | 15,584,820.35 |
| 1-2 years | 164,029,838.32 | 764,998,219.89 |
| 2-3 years | 688,094,494.92 | 1,331,719.31 |
| Over 3 years | 18,193,947.74 | 88,228,026.13 |
| 3-4 years | 726,113.75 | 3,745,596.19 |
| 4-5 years | 3,701,471.89 | 149,607.62 |
| Over 5 years | 13,766,362.10 | 84,332,822.32 |
| Total | 1,219,085,043.82 | 1,436,845,441.63 |
3) Disclosure by the method of provision for bad debts
?Applicable □Not applicable
Unit: Yuan
| Category | Ending balance | Opening balance | ||||||||
| Book balance | Provision for Bad Debts | Book value | Book balance | Provision for Bad Debts | Book value | |||||
| Amount | Scale | Amount | Provision proportion | Amount | Scale | Amount | Provision proportion | |||
| Provision for bad debts made by individual item | 2,097,739.41 | 0.17% | 2,097,739.41 | 100.00% | 0.00 | 60,417,839.41 | 4.20% | 60,417,839.41 | 100.00% | 0.00 |
| Including: | ||||||||||
| Provision for bad debts made by portfolio | 1,216,987,304.41 | 99.83% | 34,061,653.70 | 2.80% | 1,182,925,650.71 | 1,376,427,602.22 | 95.80% | 56,313,627.54 | 4.09% | 1,320,113,974.68 |
| Including: | ||||||||||
| Total | 1,219,085,043.82 | 100.00% | 36,159,393.11 | 2.97% | 1,182,925,650.71 | 1,436,845,441.63 | 100.00% | 116,731,466.95 | 8.12% | 1,320,113,974.68 |
Provision for bad debts on an individual basis
Unit: Yuan
| Name | Opening balance | Ending balance | ||||
| Book balance | Provision for Bad Debts | Book balance | Provision for Bad Debts | Provision proportion | Reasons for provision | |
| Changchun Finance Bureau | 37,820,100.00 | 37,820,100.00 | ||||
| The People's Government of Dalian Municipality | 20,500,000.00 | 20,500,000.00 | ||||
| Wuxi Large Cargo Port Lifting and Transportation Co., Ltd. | 542,293.00 | 542,293.00 | 542,293.00 | 542,293.00 | 100.00% | It is highly probable that the amounts will not be recovered |
| FAW Jilin Automobile Co., Ltd. | 538,200.00 | 538,200.00 | 538,200.00 | 538,200.00 | 100.00% | It is highly probable that the amounts will not be recovered |
| FAW Jingye Automobile Co., Ltd. | 199,194.30 | 199,194.30 | 199,194.30 | 199,194.30 | 100.00% | It is highly probable that the amounts will not be recovered |
| Beijing Torchstar Automation Technology Co., Ltd. | 198,000.00 | 198,000.00 | 198,000.00 | 198,000.00 | 100.00% | It is highly probable that the amounts will not be recovered |
| Chongqing Jinhua Automobile Brake Corporation | 154,539.47 | 154,539.47 | 154,539.47 | 154,539.47 | 100.00% | It is highly probable that the amounts will not be recovered |
| Nanjing Xinpu Electromechani | 135,000.00 | 135,000.00 | 135,000.00 | 135,000.00 | 100.00% | It is highly probable |
| cal Equipment Manufacturing Co., Ltd. | that the amounts will not be recovered | |||||
| Hunan Changji Technology Development Co., Ltd. | 119,600.00 | 119,600.00 | 119,600.00 | 119,600.00 | 100.00% | It is highly probable that the amounts will not be recovered |
| Other 9 items | 210,912.64 | 210,912.64 | 210,912.64 | 210,912.64 | 100.00% | It is highly probable that the amounts will not be recovered |
| Total | 60,417,839.41 | 60,417,839.41 | 2,097,739.41 | 2,097,739.41 |
Bad debt provision made as per portfolio:
Unit: Yuan
| Name | Ending balance | ||
| Book balance | Provision for Bad Debts | Provision proportion | |
| Aging portfolio | 1,219,085,043.82 | 36,159,393.11 | 2.97% |
| Total | 1,219,085,043.82 | 36,159,393.11 | |
Description of the basis for determining this portfolio:
Provision for bad debts based on the general model of expected credit losses:
Unit: Yuan
| Provision for Bad Debts | Stage I | Stage II | Stage III | Total |
| Expected Credit Losses for the Next 12 Months | Expected credit loss in the duration (credit impairment not occurred) | Expected credit loss for the entire duration (with credit impairment) | ||
| Balance as of January 1, 2024 | 12,948,199.25 | 43,365,428.29 | 60,417,839.41 | 116,731,466.95 |
| Balance on January 1, 2024 in the current period | ||||
| -- Transfer to stage II | -1,623,715.16 | 1,623,715.16 | ||
| Provision in the current period | -8,353,485.47 | -13,898,488.37 | -22,251,973.84 | |
| Reversal in the current period | 58,320,100.00 | 58,320,100.00 | ||
| Balance as of December 31, 2024 | 2,970,998.62 | 31,090,655.08 | 2,097,739.41 | 36,159,393.11 |
Basis for stage classification and bad debt provision rates: For Stage I and Stage II, provisions are based on aging,with rates of 0.79% for Stage I and 3.70% for Stage II. For receivables in Stage III, the Company measures the loss
allowance based on lifetime expected credit losses for such accounts receivable.Significant book balance changes occurred in the provision for losses in the current period
□Applicable ?Not applicable
4) Provision, recovery, or reversal of bad debts in the current period
Provision for bad debts in the current period:
Unit: Yuan
| Category | Opening balance | Change in the Current Period | Ending balance | |||
| Provision | Recovery or reversal | Charge-off or write-off | Others | |||
| Other receivables | 116,731,466.95 | -22,251,973.84 | 58,320,100.00 | 36,159,393.11 | ||
| Total | 116,731,466.95 | -22,251,973.84 | 58,320,100.00 | 36,159,393.11 | ||
Important provision for bad debts recovered or reversed in the current period:
Unit: Yuan
| Name of Unit | Amount recovered or reversed | Reason for reversal | Recovery method | Basis of determining the proportion of provision for original bad debts and its rationality |
| The People's Government of Dalian Municipality | 20,500,000.00 | Recovered | Cash recovery | Expected that the amounts will not be recovered |
| Total | 20,500,000.00 |
5) Top five ending balances of other receivables classified by debtors
Unit: Yuan
| Name of Unit | Nature of Payment | Ending balance | Aging | Proportion in total ending balance of other receivables | Ending Balance of Provision for Bad Debts |
| Customer 1 | Funds for land purchase and reserve | 660,862,800.00 | 2-3 years | 54.21% | 7,269,490.80 |
| Customer 2 | New energy subsidy | 58,955,300.00 | Less than 1 year, 1-2 years | 4.84% | 4,106,396.08 |
| Customer 3 | New energy subsidy | 48,318,584.07 | 1-2 years | 3.96% | 3,952,460.18 |
| Customer 4 | New energy | 48,010,000.00 | 1-2 years | 3.94% | 528,110.00 |
| subsidy | |||||
| Customer 5 | New energy subsidy | 29,982,300.88 | Within 1 year | 2.46% | 479,716.81 |
| Total | 846,128,984.95 | 69.41% | 16,336,173.87 |
7. Advance payment
(1) Presentation of advance payment by aging
Unit: Yuan
| Aging | Ending balance | Opening balance | ||
| Amount | Scale | Amount | Scale | |
| Within 1 year | 118,197,236.62 | 91.88% | 439,795,208.40 | 63.65% |
| 1-2 years | 1,609,861.97 | 1.25% | 155,859,251.52 | 22.56% |
| 2-3 years | 8,541,250.38 | 6.64% | 75,025,163.59 | 10.86% |
| Over 3 years | 290,810.50 | 0.23% | 20,225,475.23 | 2.93% |
| Total | 128,639,159.47 | 690,905,098.74 | ||
Reasons for delay in settlement of advance payment with important amounts and aging over 1 year: Unit: Yuan
| Name of Debtor | Book balance | Proportion in Total Advance Payment (%) | Provision for Bad Debts |
| RiseSun MGL | 7,245,030.70 | 5.63% |
(2) Top five ending balances of advance payments classified by advance payment objectsThe advance payments with the top five closing balances classified by the prepaid parties in the current period is53,167,717.55 yuan, accounting for 41.33% of the total closing balance of advance payments.Other description: none
8. Inventories
Does the Company need to comply with the disclosure requirements of the real estate industry: No
(1) Classification of inventories
Unit: Yuan
| Item | Ending balance | Opening balance | ||||
| Book balance | Impairment Provision of Inventories or Contract Performance Costs | Book Value | Book balance | Impairment Provision of Inventories or Contract Performance Costs | Book Value | |
| Raw material | 314,311,378.76 | 38,992,671.09 | 275,318,707.67 | 346,085,168.15 | 33,387,013.66 | 312,698,154.49 |
| Goods in process | 445,006,311.26 | 11,526,023.10 | 433,480,288.16 | 449,087,779.38 | 14,783,370.86 | 434,304,408.52 |
| Goods in | 7,452,128,355.61 | 253,655,992.67 | 7,198,472,362.94 | 7,066,822,539.59 | 178,277,353.30 | 6,888,545,186.29 |
| stock | ||||||
| Revolving material | 77,088,960.57 | 2,406,972.14 | 74,681,988.43 | 96,527,196.36 | 1,940,234.71 | 94,586,961.65 |
| Outsourced semi-finished products | 2,270,730,746.00 | 135,470,983.23 | 2,135,259,762.77 | 2,488,739,701.04 | 162,232,949.94 | 2,326,506,751.10 |
| Total | 10,559,265,752.20 | 442,052,642.23 | 10,117,213,109.97 | 10,447,262,384.52 | 390,620,922.47 | 10,056,641,462.05 |
(2) Impairment provision of inventories and contract performance costs
Unit: Yuan
| Item | Opening balance | Increase in the Current Period | Decrease in the Current Period | Ending balance | ||
| Provision | Others | Reverse or charge-off | Others | |||
| Raw material | 33,387,013.66 | 7,508,863.72 | 1,903,206.29 | 38,992,671.09 | ||
| Goods in process | 14,783,370.86 | 1,984,039.85 | 5,241,387.61 | 11,526,023.10 | ||
| Goods in stock | 178,277,353.30 | 321,251,498.24 | 1,513,798.78 | 247,386,657.65 | 253,655,992.67 | |
| Revolving material | 1,940,234.71 | 5,030,079.41 | 4,563,341.98 | 2,406,972.14 | ||
| Outsourced semi-finished products | 162,232,949.94 | 16,888,983.58 | 43,650,950.29 | 135,470,983.23 | ||
| Total | 390,620,922.47 | 352,663,464.80 | 1,513,798.78 | 302,745,543.82 | 442,052,642.23 | |
| Item | Specific basis for determining the net realizable value | Reversal or write-off in the current period Reasons for inventory provision for depreciation |
| Raw material | Estimated selling price of products minus costs, related expenses and taxes to completion | Increase in net realizable value, sale or use |
| Goods in process | Estimated selling price of products minus costs, related expenses and taxes to completion | Increase in net realizable value, sale or use |
| Goods in stock | Estimated selling price of products minus costs, related expenses and taxes to completion | Increase in net realizable value, sale or use |
| Revolving material | Estimated selling price of products minus costs, related expenses and taxes to completion | Increase in net realizable value, sale or use |
| Outsourced semi-finished products | Estimated selling price of products minus costs, related expenses and taxes to completion | Increase in net realizable value, sale or use |
Provision for inventory depreciation reserve on a portfolio basis
9. Long-term receivables due within 1 year
Unit: Yuan
| Item | Ending balance | Opening balance |
| Long-term receivables due within 1 year | 377,668,442.06 | 386,692,620.64 |
| Total | 377,668,442.06 | 386,692,620.64 |
10. Other current assets
Unit: Yuan
| Item | Ending balance | Opening balance |
| Input VAT | 802,923,987.38 | 410,162,184.87 |
| Input VAT to be certified | 610,578,724.24 | 625,978,432.77 |
| Prepaid income tax | 8,048,695.40 | |
| Others | 135,462.60 | |
| Total | 1,413,638,174.22 | 1,044,189,313.04 |
Other description:
11. Investment in other equity instruments
Unit: Yuan
| Project name | Ending balance | Opening balance | Gains included in other comprehensive incomes in the current period | Losses included in other comprehensive incomes in the current period | Cumulative gains included in other comprehensive incomes at the end of the current period | Cumulative losses included in other comprehensive incomes at the end of the current period | Dividend income recognized in the current period | Reason for being designated as being measured at fair value and changes included in other comprehensive incomes |
| REFIRE | 540,066,528.00 | 480,780,000.00 | 59,286,528.00 | 59,286,528.00 | Changes in fair value | |||
| Total | 540,066,528.00 | 480,780,000.00 | 59,286,528.00 | 59,286,528.00 |
Other notes: The equity of Shanghai Refire Group Limited is an investment that the Company plans to hold for a long time for strategic purposes, so the Companydesignates it as a financial asset measured at fair value and whose changes are included in other comprehensive incomes.
12. Long-term receivables
(1) Long-term receivables
Unit: Yuan
| Item | Ending balance | Opening balance | Discount rate range | ||||
| Book balance | Provision for Bad Debts | Book Value | Book balance | Provision for Bad Debts | Book Value | ||
| Sales of goods by installment | 542,060,036.98 | 53,480,359.31 | 488,579,677.67 | 557,610,217.25 | 38,886,343.34 | 518,723,873.91 | |
| Long-term receivables due within 1 year | -430,595,782.49 | -52,927,340.43 | -377,668,442.06 | -424,889,783.15 | -38,197,162.51 | -386,692,620.64 | |
| Total | 111,464,254.49 | 553,018.88 | 110,911,235.61 | 132,720,434.10 | 689,180.83 | 132,031,253.27 | |
(2) Provision for bad debts provided, recovered or reversed in the current period
Unit: Yuan
| Category | Opening balance | Change in the Current Period | Ending balance | |||
| Provision | Recovery or reversal | Charge-off or write-off | Others | |||
| Long-term receivables | 38,886,343.34 | 14,179,402.72 | -414,613.25 | 53,480,359.31 | ||
| Total | 38,886,343.34 | 14,179,402.72 | -414,613.25 | 53,480,359.31 | ||
13. Long-term equity investments
Unit: Yuan
| Investee | Opening balance (book value) | Opening balance of impairment provision | Increase/Decrease in the current period | Ending balance (book value) | Ending balance of impairment provision | |||||||
| Additional Investment | Reduced Investment | Investment gains or losses recognized under the equity method | Adjustment to other comprehensive income | Changes in other equity | Cash dividends and profits declared to pay | Impairment Provision | Others | |||||
| I. Joint ventures | ||||||||||||
| Jiefang Times New Energy Technology Co., Ltd. | 41,528,982.67 | 64,994.00 | -610,747.85 | 40,983,228.82 | ||||||||
| Subtotal | 41,528,982.67 | 64,994.00 | -610,747.85 | 40,983,228.82 | ||||||||
| II. Associated enterprises | ||||||||||||
| First | 4,337,808,758.45 | 3,887,756,356.82 | 273,826,162.32 | -101,144.85 | 723,777,419.10 | |||||||
| Automobile Finance Co., Ltd. | ||||||||||||
| Changchun Automotive Test Center Co., Ltd. | 700,656,627.27 | 34,460,055.90 | -49,742.00 | 735,066,941.17 | ||||||||
| Sanguard Automobile Insurance Co., Ltd. | 171,795,598.71 | 451,805.57 | 11,854,751.09 | 184,102,155.37 | ||||||||
| FAW Changchun Ansteel Steel Processing and Distribution Co., Ltd. | 87,942,751.83 | 1,376,872.48 | -81,112.81 | 1,324,000.00 | 87,914,511.50 | |||||||
| FAW Changchun Baoyou Jiefang | 43,464,086.43 | 6,902,383.03 | 6,500,530.62 | 43,865,938.84 |
| Steel Processing and Distribution Co., Ltd. | ||||||||||||
| FAW Jiefang Fujie (Tianjin) Technology Industry Co., Ltd. | 36,982,856.24 | 553,066.08 | 352,167.48 | 747,434.87 | -43,751.49 | 37,096,903.44 | ||||||
| Foshan Diyiyuan New Energy Technology Co., Ltd. | 33,214,745.08 | -4,730,665.10 | 28,484,079.98 | |||||||||
| Changchun Wabco Automotive Control System Co., Ltd. | 16,197,563.58 | -1,463,642.82 | 14,733,920.76 | |||||||||
| Diyi AESC | 4,900,000.00 | -859,218.79 | 4,040,781.21 |
| New Energy Power Technology (Wuxi) Co., Ltd. | ||||||||||||
| SmartLink | ||||||||||||
| Suzhou Zhito Technology Co., Ltd. | ||||||||||||
| Subtotal | 5,428,062,987.59 | 4,900,000.00 | 3,887,756,356.82 | 310,516,818.67 | 11,703,864.24 | 271,054.67 | 732,349,384.59 | -43,751.49 | 1,135,305,232.27 | |||
| Total | 5,469,591,970.26 | 4,900,000.00 | 3,887,756,356.82 | 310,581,812.67 | 11,703,864.24 | 271,054.67 | 732,349,384.59 | -654,499.34 | 1,176,288,461.09 |
The recoverable amount is the net amount of the fair value after deducting the disposal expenses
□Applicable ?Not applicable
The recoverable amount is the present value of the expected future cash flow
□Applicable ?Not applicable
Reason for apparent discrepancies between the foregoing information and the information used in the impairment test or external information in the previous year:
NoneReason for apparent discrepancies between the information used in the Company's impairment test of the previous year and the actual situation in the current year:
NoneOther description: none
14. Investment properties
(1) Investment properties measured at cost
?Applicable □Not applicable
Unit: Yuan
| Item | Houses and Buildings | Land use right | Project under construction | Total |
| I. Original book value | ||||
| 1. Opening balance | 72,815,332.95 | 7,474,052.82 | 80,289,385.77 | |
| 2. Increase in the current period | 38,648,741.45 | 24,710.62 | 38,673,452.07 | |
| (1) Purchase | ||||
| (2) Transfer from inventories/fixed assets/construction in progress | ||||
| (3) Increase due to business combination | ||||
| (4) Transfer of fixed assets and intangible assets | 38,648,741.45 | 24,710.62 | 38,673,452.07 | |
| 3. Decrease in the current period | 2,835,927.00 | 2,835,927.00 | ||
| (1) Disposal | ||||
| (2) Other transfer-out | ||||
| (3) Transferred back to construction in progress | 2,835,927.00 | 2,835,927.00 | ||
| 4. Ending balance | 108,628,147.40 | 7,498,763.44 | 116,126,910.84 | |
| II. Accumulated depreciation and accumulated amortization | ||||
| 1. Opening balance | 31,844,973.90 | 1,394,416.34 | 33,239,390.24 | |
| 2. Increase in the current period | 32,637,904.17 | 164,489.31 | 32,802,393.48 | |
| (1) Provision or amortization | 3,314,733.84 | 151,641.96 | 3,466,375.80 | |
| (2) Transfer of fixed assets and intangible assets | 29,323,170.33 | 12,847.35 | 29,336,017.68 | |
| 3. Decrease in the current period | 2,750,849.19 | 2,750,849.19 | ||
| (1) Disposal | ||||
| (2) Other transfer-out | ||||
| (3) Transferred back to construction in progress | 2,750,849.19 | 2,750,849.19 | ||
| 4. Ending balance | 61,732,028.88 | 1,558,905.65 | 63,290,934.53 | |
| III. Impairment provision | ||||
| 1. Opening balance | ||||
| 2. Increase in the current |
| period | ||||
| (1) Provision | ||||
| 3. Decrease in the current period | ||||
| (1) Disposal | ||||
| (2) Other transfer-out | ||||
| 4. Ending balance | ||||
| IV. Book value | ||||
| 1. Ending book value | 46,896,118.52 | 5,939,857.79 | 52,835,976.31 | |
| 2. Beginning book value | 40,970,359.05 | 6,079,636.48 | 47,049,995.53 |
The recoverable amount is the net amount of the fair value after deducting the disposal expenses
□Applicable ?Not applicable
The recoverable amount is the present value of the expected future cash flow
□Applicable ?Not applicable
Reason for apparent discrepancies between the foregoing information and the information used in the impairmenttest or external information in the previous year: NoneReason for apparent discrepancies between the information used in the Company's impairment test of the previousyear and the actual situation in the current year: NoneOther description: none
(2) Investment properties measured at fair value
□Applicable? Not applicable
(3) Investment real estate without property ownership certificates
Unit: Yuan
| Item | Book Value | Reasons for failure to obtain the certificate |
| Property, No.949, Chongqing Middle Road, Licang District | 640,927.41 | This plot has been included in the government renovation project, and cannot be handled at present |
Other description: none
15. Fixed assets
Unit: Yuan
| Item | Ending balance | Opening balance |
| Fixed assets | 11,192,711,830.63 | 11,473,133,567.13 |
| Disposal of fixed assets | 5,588,741.57 | 7,715,678.77 |
| Total | 11,198,300,572.20 | 11,480,849,245.90 |
(1) Details of fixed assets
Unit: Yuan
| Item | Houses and Buildings | Machinery equipment | Transportation equipment | Electronic equipment | Office equipment | Others | Total |
| I. Original book value | |||||||
| 1. Opening balance | 6,370,670,101.71 | 17,976,807,890.25 | 170,729,445.73 | 730,816,759.24 | 66,124,082.78 | 1,375,794,704.45 | 26,690,942,984.16 |
| 2. Increase in the current period | 235,575,991.03 | 1,298,979,452.36 | 27,160,845.08 | 45,672,204.60 | 6,403,178.05 | 40,455,511.78 | 1,654,247,182.90 |
| (1) Purchase | 122,567,033.28 | 224,821,861.12 | 3,778,202.86 | 29,210,479.03 | 2,185,080.10 | 23,181,454.47 | 405,744,110.86 |
| (2) Transfer from construction in progress | 111,704,975.31 | 1,071,457,113.05 | 23,220,247.77 | 15,997,825.96 | 3,595,109.65 | 17,272,644.83 | 1,243,247,916.57 |
| (3) Increase due to business combination | |||||||
| (4) Other increases | 1,303,982.44 | 2,700,478.19 | 162,394.45 | 463,899.61 | 622,988.30 | 1,412.48 | 5,255,155.47 |
| 3. Decrease in the current period | 260,616,290.92 | 368,511,018.64 | 7,469,280.06 | 24,691,794.76 | 5,732,613.49 | 14,189,415.98 | 681,210,413.85 |
| (1) Disposal or retirement | 840,042.28 | 283,241,413.05 | 7,433,881.81 | 23,748,719.34 | 5,588,823.72 | 5,042,068.18 | 325,894,948.38 |
| (2) Other decreases | 259,776,248.64 | 85,269,605.59 | 35,398.25 | 943,075.42 | 143,789.77 | 9,147,347.80 | 355,315,465.47 |
| 4. Ending balance | 6,345,629,801.82 | 18,907,276,323.97 | 190,421,010.75 | 751,797,169.08 | 66,794,647.34 | 1,402,060,800.25 | 27,663,979,753.21 |
| II. Accumulated depreciation | |||||||
| 1. Opening balance | 2,498,421,526.38 | 10,813,134,009.79 | 128,577,837.53 | 574,696,629.61 | 46,966,988.31 | 1,130,727,557.84 | 15,192,524,549.46 |
| 2. Increase in the current period | 314,037,532.94 | 1,261,247,456.75 | 20,844,626.67 | 101,221,636.65 | 6,560,343.42 | 74,738,938.66 | 1,778,650,535.09 |
| (1) Provision | 313,747,732.97 | 1,260,814,918.06 | 20,717,556.70 | 101,032,278.34 | 6,189,366.04 | 74,737,661.81 | 1,777,239,513.92 |
| (2) Other increases | 289,799.97 | 432,538.69 | 127,069.97 | 189,358.31 | 370,977.38 | 1,276.85 | 1,411,021.17 |
| 3. Decrease in the current period | 164,638,121.63 | 309,305,058.05 | 7,120,658.57 | 24,620,768.27 | 5,537,748.17 | 12,131,608.71 | 523,353,963.40 |
| (1) Disposal or retirement | 814,841.01 | 270,833,621.64 | 7,120,658.57 | 23,677,692.85 | 5,430,818.48 | 4,887,216.04 | 312,764,848.59 |
| (2) Other decreases | 163,823,280.62 | 38,471,436.41 | 943,075.42 | 106,929.69 | 7,244,392.67 | 210,589,114.81 | |
| 4. Ending balance | 2,647,820,937.69 | 11,765,076,408.49 | 142,301,805.63 | 651,297,497.99 | 47,989,583.56 | 1,193,334,887.79 | 16,447,821,121.15 |
| III. Impairment provision | |||||||
| 1. Opening balance | 12,344.37 | 22,288,724.08 | 43,047.04 | 2,940,752.08 | 25,284,867.57 | ||
| 2. Increase in the current period | |||||||
| (1) Provision | |||||||
| 3. Decrease in the current period | 1,837,369.50 | 696.64 | 1,838,066.14 | ||||
| (1) Disposal or retirement | 1,837,369.50 | 696.64 | 1,838,066.14 | ||||
| 4. Ending balance | 12,344.37 | 20,451,354.58 | 42,350.40 | 2,940,752.08 | 23,446,801.43 | ||
| IV. Book value | |||||||
| 1. Ending book value | 3,697,796,519.76 | 7,121,748,560.90 | 48,119,205.12 | 100,499,671.09 | 18,762,713.38 | 205,785,160.38 | 11,192,711,830.63 |
| 2. Beginning book value | 3,872,236,230.96 | 7,141,385,156.38 | 42,151,608.20 | 156,120,129.63 | 19,114,047.43 | 242,126,394.53 | 11,473,133,567.13 |
(2) Temporary idle fixed assets
Unit: Yuan
| Item | Original book value | Accumulated depreciation | Impairment Provision | Book Value | Remarks |
| Houses and Buildings | 43,559,517.61 | 26,164,891.28 | 12,344.37 | 17,382,281.96 | |
| Machinery equipment | 287,081,728.01 | 249,774,969.99 | 9,987,575.23 | 27,319,182.79 | |
| Transportation equipment | 255,116.40 | 255,116.40 | |||
| Electronic equipment | 2,535,332.71 | 2,535,332.71 | |||
| Office equipment | 2,806,415.11 | 2,646,088.07 | 42,142.85 | 118,184.19 | |
| Others | 14,140,537.80 | 12,950,129.95 | 803,978.77 | 386,429.08 | |
| Total | 350,378,647.64 | 294,326,528.40 | 10,846,041.22 | 45,206,078.02 |
(3) Fixed assets without property ownership certificates
Unit: Yuan
| Item | Book Value | Reasons for failure to obtain the certificate |
| Guanghan base project | 345,977,710.81 | The property ownership certificate will be applied for after the final account audit upon completion of the project |
| Project of exiting the city and entering the industrial park | 39,718,005.70 | It is a new plant, and the information is incomplete and currently being processed. |
| Equipment and plant project | 93,370,032.35 | The property ownership certificate has not yet been applied for |
| Total | 479,065,748.86 |
Other description:
(4) Disposal of fixed assets
Unit: Yuan
| Item | Ending balance | Opening balance |
| Houses and Buildings | 44,184.97 | 44,864.97 |
| Machinery equipment | 3,066,994.74 | 5,776,946.67 |
| Means of transport | 357,163.02 | 125,020.45 |
| Electronic equipment | 23,158.49 | 12,316.70 |
| Office equipment | 1,004,714.07 | 132,249.55 |
| Others | 1,092,526.28 | 1,624,280.43 |
| Total | 5,588,741.57 | 7,715,678.77 |
Other description:
16. Construction in progress
Unit: Yuan
| Item | Ending balance | Opening balance |
| Project under construction | 688,181,815.22 | 816,484,299.18 |
| Total | 688,181,815.22 | 816,484,299.18 |
(1) Construction in progress
Unit: Yuan
| Item | Ending balance | Opening balance | ||||
| Book balance | Impairment provision | Book Value | Book balance | Impairment provision | Book Value | |
| New and reconstructed investment project | 30,573,415.10 | 1,945,416.12 | 28,627,998.98 | 109,030,761.94 | 1,945,416.12 | 107,085,345.82 |
| Technical transformation investment project | 659,609,313.43 | 55,497.19 | 659,553,816.24 | 709,454,450.55 | 55,497.19 | 709,398,953.36 |
| Total | 690,182,728.53 | 2,000,913.31 | 688,181,815.22 | 818,485,212.49 | 2,000,913.31 | 816,484,299.18 |
(2) Changes in important construction in progress in the current period
Unit: Yuan
| Project name | Budget | Opening balance | Increase in the Current Period | Amount transferred to fixed assets in the current period | Other Decreases in the Current Period | Ending balance | Proportion of accumulated investment in constructions to budget | Project Progress | Cumulative amount of capitalized interest | Including: Capitalized interest amount during the current period | Capitalization rate of interest in current period | Capital source |
| R&D capacity improvement project of FAW Jiefang Qingdao Base | 691,362,100.00 | 216,719,303.35 | 196,374,831.91 | 413,094,135.26 | 59.75% | 87.55% | Raised funds + others | |||||
| FAW Jiefang Wuxi R&D Center Construction Project | 423,550,000.00 | 12,690,733.03 | 121,070,052.75 | 7,176,830.96 | 126,583,954.82 | 31.58% | 55.41% | Raised funds + others | ||||
| Project of | 936,068,800.00 | 19,204,724.39 | 19,204,724.39 | 71.43% | 96.00% | Others |
| exiting the city and entering the industrial park | ||||||||||||
| Second-generation E/E architecture commercial vehicle HIL simulator | 32,000,000.00 | 16,401,117.40 | 16,401,117.40 | 51.25% | 51.00% | Others | ||||||
| Heavy-duty vehicle transmission life test bed | 20,250,000.00 | 9,875,983.28 | 1,432,729.20 | 11,308,712.48 | 55.85% | 55.85% | Others | |||||
| Business integration and technology upgrading project of light | 227,508,500.00 | 13,655,092.51 | 166,199,720.89 | 171,103,259.18 | 8,751,554.22 | 75.21% | 87.78% | Raised funds + others |
| vehicle frame of Qingdao Vehicle Division of Jiefang Limited | ||||||||||||
| Environmental protection technology upgrade project of cab coating line of Qingdao Vehicle Division of Jiefang Limited | 79,800,000.00 | 177,811.32 | 14,957,522.12 | 8,074,690.27 | 7,060,643.17 | 10.12% | 62.78% | Raised funds + others | ||||
| Axle base construction project and heavy | 989,859,950.93 | 115,204,550.24 | 95,078,910.70 | 204,579,228.66 | 5,704,232.28 | 75.96% | 92.17% | Raised funds + others |
| replacement axle technology upgrade (phase I) | ||||||||||||
| FAW Jiefang South New Energy Base project | 413,800,000.00 | 48,893,985.90 | 39,280,944.24 | 82,931,775.45 | 5,243,154.69 | 57.98% | 92.00% | Others | ||||
| Technical transformation project of integrated heavy-duty AMT gearbox | 898,000,000.00 | 232,307,221.17 | 403,095,254.16 | 630,935,482.18 | 4,466,993.15 | 71.09% | 80.86% | Raised funds + others | ||||
| Total | 4,712,199,350.93 | 668,729,405.19 | 1,053,891,083.37 | 1,104,801,266.70 | 617,819,221.86 |
(3) Impairment testing of projects under construction
□Applicable ?Not applicable
17 Productive biological assets
(1) Productive biological assets measured at cost
□Applicable ?Not applicable
(2) Impairment test of productive biological assets measured at cost
□Applicable ?Not applicable
(3) Productive biological assets measured at fair value
□Applicable ?Not applicable
18 Oil and gas assets
□Applicable ?Not applicable
19. Right-of-use assets
(1) Right-of-use assets
Unit: Yuan
| Item | Houses and Buildings | Machinery equipment | Land | Total |
| I. Original book value | ||||
| 1. Opening balance | 200,044,437.59 | 54,778,761.06 | 17,683,197.66 | 272,506,396.31 |
| 2. Increase in the current period | 3,538,091.51 | 3,533,351.98 | 354,361.41 | 7,425,804.90 |
| (1) Lease-in | 3,019,057.93 | 3,533,351.98 | 345,429.87 | 6,897,839.78 |
| (2) Other increases | 519,033.58 | 8,931.54 | 527,965.12 | |
| 3. Decrease in the current period | 20,454,136.66 | 235,270.13 | 20,689,406.79 | |
| (1) Lease expiration | 14,880,855.90 | 235,270.13 | 15,116,126.03 | |
| (2) Other decreases | 5,573,280.76 | 5,573,280.76 | ||
| 4. Ending balance | 183,128,392.44 | 58,312,113.04 | 17,802,288.94 | 259,242,794.42 |
| II. Accumulated depreciation | ||||
| 1. Opening balance | 99,398,182.59 | 10,955,752.21 | 11,715,605.51 | 122,069,540.31 |
| 2. Increase in the current period | 36,502,331.95 | 11,668,624.99 | 4,017,370.54 | 52,188,327.48 |
| (1) Provision | 36,201,260.82 | 11,668,624.99 | 4,013,152.85 | 51,883,038.66 |
| (2) Other increases | 301,071.13 | 4,217.69 | 305,288.82 | |
| 3. Decrease in the current period | 19,140,123.81 | 235,270.13 | 19,375,393.94 | |
| (1) Disposal | ||||
| (2) Lease expiration | 14,880,855.90 | 235,270.13 | 15,116,126.03 | |
| (3) Other decreases | 4,259,267.91 | 4,259,267.91 | ||
| 4. Ending balance | 116,760,390.73 | 22,624,377.20 | 15,497,705.92 | 154,882,473.85 |
| III. Impairment provision | ||||
| 1. Opening balance | ||||
| 2. Increase in the current period | ||||
| (1) Provision | ||||
| 3. Decrease in the current period | ||||
| (1) Disposal | ||||
| 4. Ending balance | ||||
| IV. Book value | ||||
| 1. Ending book value | 66,368,001.71 | 35,687,735.84 | 2,304,583.02 | 104,360,320.57 |
| 2. Beginning book value | 100,646,255.00 | 43,823,008.85 | 5,967,592.15 | 150,436,856.00 |
(2) Impairment test of right-of-use assets
□Applicable ?Not applicable
Other description: none
20. Intangible assets
(1) Details of intangible assets
Unit: Yuan
| Item | Land use right | Patent rights | Non-patented technology | Software | Total |
| I. Original book value |
| 1. Opening balance | 2,613,441,659.36 | 507,713,333.30 | 565,897,350.18 | 3,687,052,342.84 | |
| 2. Increase in the current period | 502,930.16 | 10,637,280.64 | 79,704,650.81 | 90,844,861.61 | |
| (1) Purchase | 5,898,959.15 | 56,213,481.89 | 62,112,441.04 | ||
| (2) Internal R&D | |||||
| (3) Increase due to business combination | |||||
| (4) Other increases | 502,930.16 | 4,738,321.49 | 23,491,168.92 | 28,732,420.57 | |
| 3. Decrease in the current period | 24,710.62 | 12,557,581.42 | 12,582,292.04 | ||
| (1) Disposal | 7,819,259.93 | 7,819,259.93 | |||
| (2) Other decreases | 24,710.62 | 4,738,321.49 | 4,763,032.11 | ||
| 4. Ending balance | 2,613,919,878.90 | 518,350,613.94 | 633,044,419.57 | 3,765,314,912.41 | |
| II. Accumulated amortization | |||||
| 1. Opening balance | 597,486,572.38 | 338,000,836.46 | 294,647,182.19 | 1,230,134,591.03 | |
| 2. Increase in the current period | 64,678,551.56 | 37,746,505.52 | 103,787,970.29 | 206,213,027.37 | |
| (1) Provision | 64,627,729.20 | 37,312,176.79 | 103,750,159.44 | 205,690,065.43 | |
| (2) Other increases | 50,822.36 | 434,328.73 | 37,810.85 | 522,961.94 | |
| 3. Decrease in the current period | 12,847.35 | 8,247,823.03 | 8,260,670.38 | ||
| (1) Disposal | 7,813,494.30 | 7,813,494.30 | |||
| (2) Other decreases | 12,847.35 | 434,328.73 | 447,176.08 | ||
| 4. Ending balance | 662,152,276.59 | 375,747,341.98 | 390,187,329.45 | 1,428,086,948.02 | |
| III. Impairment provision | |||||
| 1. Opening balance | 118,218.19 | 118,218.19 | |||
| 2. Increase in the current period | 8,545.22 | 8,545.22 | |||
| (1) Provision | |||||
| (2) Other increases | 8,545.22 | 8,545.22 | |||
| 3. Decrease in the current period | |||||
| (1) Disposal |
| 4. Ending balance | 126,763.41 | 126,763.41 | |||
| IV. Book value | |||||
| 1. Ending book value | 1,951,640,838.90 | 142,603,271.96 | 242,857,090.12 | 2,337,101,200.98 | |
| 2. Beginning book value | 2,015,836,868.79 | 169,712,496.84 | 271,250,167.99 | 2,456,799,533.62 |
The intangible assets that did not result from internal research and development of the Company account for
0.00% of the balance of intangible assets at the end of the current period.
(2) Data resources recognized as intangible assets
□Applicable ?Not applicable
(3) Impairment testing of intangible assets
□Applicable ?Not applicable
21. Deferred income tax assets and deferred income tax liabilities
(1) Deferred income tax assets not offset
Unit: Yuan
| Item | Ending balance | Opening balance | ||
| Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
| Impairment provision of assets | 797,768,103.97 | 148,751,169.98 | 801,447,775.98 | 151,139,383.30 |
| Unrealized profits of internal transactions | 153,881,436.39 | 38,470,359.10 | 173,759,629.21 | 43,439,907.30 |
| Deductible losses | 10,589,766,314.64 | 1,765,089,314.84 | 8,023,847,062.56 | 1,401,699,212.71 |
| Accrued expenses | 3,227,055,244.11 | 769,751,687.24 | 2,939,042,487.84 | 699,976,188.17 |
| Estimated liabilities | 697,556,880.11 | 115,586,665.72 | 643,639,504.01 | 105,676,319.80 |
| Contract liabilities | 553,633,245.41 | 85,386,658.52 | 477,559,638.17 | 73,059,220.04 |
| Deferred income | 512,685,762.47 | 109,012,100.36 | 498,058,268.35 | 105,908,875.92 |
| Employee compensation payable | 94,430,202.39 | 15,390,464.58 | 89,862,914.88 | 15,035,569.66 |
| Lease liabilities | 58,263,018.99 | 13,770,069.13 | 70,122,314.73 | 15,971,569.46 |
| Assets | 653,809.89 | 196,142.97 | 609,736.10 | 182,920.83 |
| depreciation differences | ||||
| Total | 16,685,694,018.37 | 3,061,404,632.44 | 13,717,949,331.83 | 2,612,089,167.19 |
(2) Deferred income tax liabilities not offset
Unit: Yuan
| Item | Ending balance | Opening balance | ||
| Taxable temporary difference | Deferred income tax liabilities | Taxable temporary difference | Deferred income tax liabilities | |
| Depreciation of fixed assets with an amortization period longer than the tax preference period | 1,833,126,166.73 | 337,124,836.34 | 1,968,635,320.15 | 361,356,664.66 |
| Accrued interest income | 476,710,852.22 | 76,467,601.95 | 386,198,421.88 | 58,128,494.37 |
| Right-of-use assets | 43,191,229.17 | 10,183,212.28 | 67,966,004.09 | 15,404,666.51 |
| Total | 2,353,028,248.12 | 423,775,650.57 | 2,422,799,746.12 | 434,889,825.54 |
(3) Deferred tax assets or liabilities presented in net amount after offset
Unit: Yuan
| Item | Ending Mutual Offset Amount of Deferred Tax Assets and Liabilities | Ending balance of deferred tax assets or liabilities after offset | Opening mutual offset amount of deferred tax assets and liabilities | Opening balance of deferred tax assets or liabilities after offset |
| Deferred income tax assets | 3,061,404,632.44 | 2,612,089,167.19 | ||
| Deferred income tax liabilities | 423,775,650.57 | 434,889,825.54 |
(4) Details of unrecognized deferred tax assets
Unit: Yuan
| Item | Ending balance | Opening balance |
| Deductible temporary difference | 572,093,879.05 | 577,137,993.79 |
| Deductible losses | 225,388,600.72 | 433,079,936.50 |
| Total | 797,482,479.77 | 1,010,217,930.29 |
(5) Deductible losses of unrecognized deferred tax assets will be due in the following years
Unit: Yuan
| Year | Ending amount | Beginning balance | Remarks |
| 2026 | 1,441,940.00 | 1,441,940.00 | |
| 2027 | 3,524,136.57 | 3,524,136.57 | |
| 2028 | 6,764,901.92 | 201,247,514.48 | |
| 2029 | 15,796,963.90 | 28,041,132.70 | |
| 2032 | 197,860,658.33 | 198,825,212.75 |
| Total | 225,388,600.72 | 433,079,936.50 |
Other description: none
22. Assets with restricted ownership or use right
Unit: Yuan
| Item | Ending | Beginning | ||||||
| Book balance | Book Value | Restriction type | Restriction | Book balance | Book Value | Restriction type | Restriction | |
| Monetary capital | 50,810,175.89 | 50,810,175.89 | Housing maintenance fund, security deposit for three types of personnel and frozen funds | 50,667,927.65 | 50,667,927.65 | Housing maintenance fund, security deposit for three types of personnel and frozen funds | ||
| Intangible assets | 2,059,491.56 | 1,150,344.99 | Due to the Tanzanian government's central railway reconstruction project, approximately 2000 square meters of land belonging to the Company's Tanzanian subsidiary was expropriated in March 2017. To date, no official documentation or notification has | 1,920,659.75 | 1,099,342.90 | Due to the Tanzanian government's central railway reconstruction project, approximately 2000 square meters of land belonging to the Company's Tanzanian subsidiary was expropriated in March 2017. To date, no official documentation or notification has been received from the Tanzanian | ||
| been received from the Tanzanian authorities. | authorities. | |||||||
| Total | 52,869,667.45 | 51,960,520.88 | 52,588,587.40 | 51,767,270.55 |
Other description:
23. Notes payable
Unit: Yuan
| Category | Ending balance | Opening balance |
| Bank acceptance bill | 15,370,906,363.16 | 11,769,864,678.11 |
| Total | 15,370,906,363.16 | 11,769,864,678.11 |
The total amount of notes payable due but unpaid at the end of the current period is 0.00 yuan.
24. Accounts payable
(1) Presentation of accounts payable
Unit: Yuan
| Item | Ending balance | Opening balance |
| Payment for goods | 16,650,985,030.88 | 16,968,149,222.10 |
| Project payment | 71,355,989.71 | |
| Expenses and others | 595,368,938.17 | 678,099,680.48 |
| Total | 17,246,353,969.05 | 17,717,604,892.29 |
(2) Significant accounts payable with aging over one year or overdue
Unit: Yuan
| Item | Ending balance | Reasons for not being repaid or carried over |
| Beijing SinoHytec Co., Ltd. | 38,925,592.27 | Undue settlement period |
| Tangshan Qianchen New Energy Development Co., Ltd. | 28,659,999.04 | Undue settlement period |
| Total | 67,585,591.31 |
Other description:
25. Other payables
Unit: Yuan
| Item | Ending balance | Opening balance |
| Dividends payable | 171,500.02 | 171,500.02 |
| Other payables | 4,526,037,421.21 | 5,312,132,275.89 |
| Total | 4,526,208,921.23 | 5,312,303,775.91 |
(1) Dividends payable
Unit: Yuan
| Item | Ending balance | Opening balance |
| Ordinary stock dividends | 171,500.02 | 171,500.02 |
| Total | 171,500.02 | 171,500.02 |
Other description, including the disclosure of the reasons for not paying the important dividends payable for morethan 1 year:
(2) Other payables
1) Presentation of other payables by payment nature
Unit: Yuan
| Item | Ending balance | Opening balance |
| Expenses payable | 2,665,746,970.54 | 3,421,638,209.55 |
| Margin, deposit | 235,940,482.07 | 310,785,014.96 |
| Project funds payable | 1,188,958,861.78 | 1,296,325,132.82 |
| Repurchase obligations of restricted shares | 6,246,851.73 | 86,131,497.27 |
| Current accounts payable and others | 429,144,255.09 | 197,252,421.29 |
| Total | 4,526,037,421.21 | 5,312,132,275.89 |
2) Other significant payables with aging over 1 year or overdue
Unit: Yuan
| Item | Ending balance | Reasons for not being repaid or carried over |
| Fawer Auto Parts Co., Ltd. | 9,670,000.00 | Undue settlement period |
| Wuhan Liao Automation Co., Ltd. | 8,670,040.00 | Undue settlement period |
| China FAW Group Import & Export Co., Ltd. | 6,579,161.93 | Undue settlement period |
| Hangzhou Hikrobot Co., Ltd. | 6,374,071.10 | Project not completed |
| Bock (China) Testing Equipment Co., Ltd. | 5,567,800.00 | Project not completed |
| SIASUN Robot & Automation Co., Ltd. | 5,453,060.00 | Project not completed |
| The Ninth Institute of Project Planning & Research of China Machinery Industry (FIPPR) | 5,407,655.40 | Project not completed |
| Shanghai Machine Tool Works Ltd. | 5,068,000.00 | Project not completed |
| Total | 52,789,788.43 |
26. Advance receipts
Presentation of advance receipts
Unit: Yuan
| Item | Ending balance | Opening balance |
| Rental fee | 674,009.56 | 641,221.46 |
| Total | 674,009.56 | 641,221.46 |
27. Contract liabilities
Unit: Yuan
| Item | Ending balance | Opening balance |
| Payment for goods | 2,015,193,856.18 | 1,980,963,703.80 |
| Others | 633,128,232.65 | 555,703,269.04 |
| Contract liabilities included in other current liabilities | -217,767,924.33 | -215,994,896.62 |
| Total | 2,430,554,164.50 | 2,320,672,076.22 |
Significant contractual liabilities with aging over 1 year
28. Employee compensation payable
(1) Presentation of employee compensation payable
Unit: Yuan
| Item | Opening balance | Increase in the Current Period | Decrease in the Current Period | Ending balance |
| I. Short-term compensation | 299,038,713.67 | 4,613,134,851.20 | 3,957,931,961.91 | 954,241,602.96 |
| II. Post-employment benefits - defined contribution plan | 17,213,124.02 | 661,854,373.57 | 678,295,945.93 | 771,551.66 |
| III. Dismissal welfare | 38,420,889.80 | 47,219,824.80 | 46,208,973.16 | 39,431,741.44 |
| IV. Other benefits due within one year | 50,609,999.99 | 52,054,076.10 | 53,554,076.09 | 49,110,000.00 |
| Total | 405,282,727.48 | 5,374,263,125.67 | 4,735,990,957.09 | 1,043,554,896.06 |
(2) Presentation of short-term compensation
Unit: Yuan
| Item | Opening balance | Increase in the Current Period | Decrease in the Current Period | Ending balance |
| 1. Wages, bonuses, allowances and subsidies | 227,776.65 | 3,199,338,185.61 | 2,573,228,938.66 | 626,337,023.60 |
| 2. Employee welfare expenses | 264,221,634.02 | 264,221,634.02 | ||
| 3. Social insurance premiums | 3,953,212.23 | 359,300,959.15 | 362,017,631.13 | 1,236,540.25 |
| Including: medical insurance premiums | 3,953,212.23 | 338,242,095.12 | 340,958,767.10 | 1,236,540.25 |
| Work-related injury insurance premiums | 21,058,864.03 | 21,058,864.03 |
| 4. Housing provident fund | 488,964,042.43 | 488,964,042.43 | ||
| 5. Labor union funds and employee education funds | 293,055,697.93 | 110,739,260.52 | 79,059,202.82 | 324,735,755.63 |
| 6. Other short-term compensations | 1,802,026.86 | 190,570,769.47 | 190,440,512.85 | 1,932,283.48 |
| Total | 299,038,713.67 | 4,613,134,851.20 | 3,957,931,961.91 | 954,241,602.96 |
(3) Presentation of defined contribution plan
Unit: Yuan
| Item | Opening balance | Increase in the Current Period | Decrease in the Current Period | Ending balance |
| 1. Basic endowment insurance | 14,357,638.13 | 450,111,399.70 | 464,160,323.27 | 308,714.56 |
| 2. Unemployment insurance premiums | 2,855,485.89 | 17,391,135.37 | 19,783,784.16 | 462,837.10 |
| 3. Payment of enterprise annuity | 194,351,838.50 | 194,351,838.50 | ||
| Total | 17,213,124.02 | 661,854,373.57 | 678,295,945.93 | 771,551.66 |
Other description:
29. Taxes payable
Unit: Yuan
| Item | Ending balance | Opening balance |
| VAT | 34,237,788.67 | 33,868,153.98 |
| Corporate income tax | 136,470,856.41 | 63,956,600.70 |
| Individual income tax | 7,020,253.06 | 45,447,179.02 |
| Urban maintenance and construction tax | 3,308,379.91 | 1,886,871.46 |
| Property tax | 7,843,917.34 | 12,070,417.66 |
| Education surcharges | 4,430,820.03 | 3,588,461.26 |
| Land use tax | 3,902,829.10 | 4,302,440.45 |
| Other taxes | 18,318,058.50 | 16,844,015.07 |
| Total | 215,532,903.02 | 181,964,139.60 |
Other description:
30. Non-current liabilities due within one year
Unit: Yuan
| Item | Ending balance | Opening balance |
| Lease liabilities due within one year | 29,941,701.02 | 31,720,199.37 |
| Long-term debts due within one year | 99,890,000.00 | |
| Total | 29,941,701.02 | 131,610,199.37 |
Other description:
Including: long-term loans due within one year Unit: Yuan
| Item | Ending balance | Ending balance of the previous year |
| Credit loans | 99,890,000.00 |
31. Other current liabilities
Unit: Yuan
| Item | Ending balance | Opening balance |
| Taxes to be written off | 217,767,924.33 | 215,994,896.62 |
| Total | 217,767,924.33 | 215,994,896.62 |
Other description:
32. Long-term debts
Classification of long-term debts
Unit: Yuan
| Item | Ending balance | Opening balance |
| Credit loans | 99,890,000.00 | |
| Long-term debts due within one year | -99,890,000.00 |
Notes to the classification of long-term debts:
Other notes, including interest rate range:
33. Lease liabilities
Unit: Yuan
| Item | Ending balance | Opening balance |
| Lease payment | 59,490,077.98 | 73,609,360.61 |
| Unrecognized financing charges | -2,116,776.32 | -3,915,288.10 |
| Lease liabilities due within one year | -29,941,701.02 | -31,720,199.37 |
| Total | 27,431,600.64 | 37,973,873.14 |
Other description:
34. Long-term employee compensation payable
Table of long-term payroll payable
Unit: Yuan
| Item | Ending balance | Opening balance |
| I. Post-employment welfare - net liabilities of defined benefit plan | 682,430,000.00 | 667,280,000.00 |
| II. Dismissal welfare | 98,901,796.39 | 94,708,523.04 |
| Long-term employee compensation payable due within one year | -88,541,741.44 | -89,030,889.79 |
| Total | 692,790,054.95 | 672,957,633.25 |
35. Provisions
Unit: Yuan
| Item | Ending balance | Opening balance | Reason |
| Pending litigation | 23,974,831.93 | 7,321,618.04 | |
| Product quality assurance | 951,513,050.80 | 825,489,785.23 | |
| Others | 17,226,995.29 | 20,183,157.29 | Labor social security, etc. |
| Total | 992,714,878.02 | 852,994,560.56 |
Other description, including important assumptions and estimation descriptions related to important estimatedliabilities:
36. Deferred income
Unit: Yuan
| Item | Opening balance | Increase in the Current Period | Decrease in the Current Period | Ending balance | Reason |
| Government subsidies | 2,983,678,367.53 | 237,397,704.40 | 284,713,224.16 | 2,936,362,847.77 | |
| Total | 2,983,678,367.53 | 237,397,704.40 | 284,713,224.16 | 2,936,362,847.77 | -- |
Other description:
37. Share capital
Unit: Yuan
| Opening balance | Increase/Decrease (+/-) | Ending balance | |||||
| Issue of New Shares | Bonus shares | Share Transferred from Accu | Others | Subtotal | |||
| mulation Fund | |||||||
| Total shares | 4,636,485,668.00 | 298,507,462.00 | -12,621,954.00 | 285,885,508.00 | 4,922,371,176.00 |
Other description: The Company's new share issuance during this period was verified by Capital Verification ReportNo.110C000357 ZTYZ (2024) issued by Grant Thornton Certified Public Accountants (Special GeneralPartnership). The decrease in share capital of 12,621,954.00 yuan during this period resulted from the repurchaseand cancellation of restricted shares, as verified by Capital Verification Report XYZH/2024CCAA2B0173 issuedby ShineWing Accounting Firm (Special General Partnership). For details, please refer to Section X FinancialReport, III. Company Basic Information.
38. Capital reserves
Unit: Yuan
| Item | Opening balance | Increase in the Current Period | Decrease in the Current Period | Ending balance |
| Capital premium (stock premium) | 9,715,540,999.01 | 1,699,305,934.04 | 453,011,916.17 | 10,961,835,016.88 |
| Other capital reserves | 1,001,896,552.71 | 271,054.67 | 2,522,576.52 | 999,645,030.86 |
| Total | 10,717,437,551.72 | 1,699,576,988.71 | 455,534,492.69 | 11,961,480,047.74 |
Other description, including increase/decrease in the current period and reasons for change:
(1) Reasons for adjustment of capital reserves (equity premium) at the beginning of the year:
During this period, FAW Jiefang acquired 100% equity in Jiefang Motors Tanzania Ltd. and 55.00% equity in FAW(Africa) Investment Co., Ltd. through cash payment. According to accounting standards, these transactions qualifyas business combinations under common control, with a combination date of December 31, 2024. When preparingthe opening balances for the 2024 consolidated financial statements, the owner's equity of Jiefang Motors TanzaniaLtd. and FAW (Africa) Investment Co., Ltd. as of end-2023, after deducting other comprehensive income andretained earnings, was adjusted to capital reserve (share premium) in the amount of 374,018,599.99 yuan.
(2) Reasons for the increase in capital reserves (share premium) in the current period:
The Company's capital reserve (share premium) increased by 1,699,305,934.04 yuan due to the private placementof A shares. For details, refer to Section X Financial Report, III. Company Basic Information.
(3) Reasons for the decrease of 453,011,916.17 yuan in capital reserve (share premium):
① The Company completed the business combination under the common control of Jiefang Limited on December31, 2024, reversing the initial adjustment amount of 374,018,599.99 yuan mentioned in (1) above.
② The Company completed the business combination under the common control of Jiefang Motors Tanzania Ltd.and FAW (Africa) Investment Co., Ltd. on December 31, 2024. The difference between the consideration paid and
the book value of owner's equity attributable to the Company was -34,642,433.92 yuan, which adjusted the capitalreserve (share premium) per accounting standards.
③ The other comprehensive income and retained earnings accumulated by Jiefang Motors Tanzania Ltd. and FAW(Africa) Investment Co., Ltd. before the combination was adjusted to capital reserve (share premium) in the amountof 46,373,058.56 yuan.
④ The capital reserve (share premium) decreased by 67,262,691.54 yuan due to the repurchase and cancellation ofrestricted shares following the failure to achieve the performance assessment objectives set for the third releaseperiod first granted and the second release period reserved by the Company's Phase I restricted share incentive plan
(4) Reason for increase in capital reserve (other capital reserve):
The Company recognized an increase of 271,054.67 yuan based on its proportionate share of changes in investees'equity other than those from net profit, other comprehensive income, and profit distribution.
(5) Reason for a decrease of 2,522,576.52 yuan in capital reserve (other capital reserve):
The failure to achieve the performance assessment objectives set for the third release period first granted and thesecond release period reserved by the Company's Phase I restricted share incentive plan resulted in a decrease of2,522,576.52 yuan.
39. Treasury shares
Unit: Yuan
| Item | Opening balance | Increase in the Current Period | Decrease in the Current Period | Ending balance |
| Treasury shares | 86,131,497.27 | 79,884,645.54 | 6,246,851.73 | |
| Total | 86,131,497.27 | 79,884,645.54 | 6,246,851.73 |
Other descriptions, including the increase/decrease and reasons for changes in the current period: The decrease of79,884,645.54 yuan in treasury share capital in the current period was caused by the repurchase and cancellationby the Company.40 Other comprehensive incomes
Unit: Yuan
| Item | Opening balance | Amount Incurred in Current Period | Ending balance | |||||
| Amount incurred before income tax in the current period | Less: Current Profits or Losses Transferred from Other Comprehensive Income Recorde | Less: Current Retained Earnings Transferred from Other Comprehensive Income Recorded in the Previous | Less: Income tax expenses | After-tax amount attributable to the parent company | After-tax amount attributable to minority shareholders | |||
| d in the Previous Period | Period | |||||||
| I. Other comprehensive incomes that cannot be reclassified into profits or losses | -8,735,366.35 | 27,627,126.17 | -7,298.93 | 27,634,425.10 | 18,899,058.75 | |||
| Including: changes arising from the re-measurement of the defined benefit plan | -9,210,000.00 | -49,140,000.00 | -49,140,000.00 | -58,350,000.00 | ||||
| Other comprehensive incomes that cannot be reclassified into profit or loss under the equity method | 474,633.65 | 17,480,598.17 | -7,298.93 | 17,487,897.10 | 17,962,530.75 | |||
| Changes in fair value of investment in other equity instruments | 59,286,528.00 | 59,286,528.00 | 59,286,528.00 | |||||
| II. Other comprehensive incomes that will be reclassified into profits or losses | -118,464,052.05 | 2,652,646.59 | 2,652,646.59 | -115,811,405.46 | ||||
| Including: other comprehensive incomes that can be reclassified into profits | 375,337.28 | -5,729,510.11 | -5,729,510.11 | -5,354,172.83 |
| or losses under the equity method | ||||||||
| Translation difference in foreign currency financial statements | -118,839,389.33 | 8,382,156.70 | 8,382,156.70 | -110,457,232.63 | ||||
| Total other comprehensive incomes | -127,199,418.40 | 30,279,772.76 | -7,298.93 | 30,287,071.69 | -96,912,346.71 |
Other description, including the adjustment of the effective part of cash flow hedging profit or loss transferred tothe initially recognized amount of the hedged item:
41 Special reserves
Unit: Yuan
| Item | Opening balance | Increase in the Current Period | Decrease in the Current Period | Ending balance |
| Work safety cost | 319,314,527.85 | 28,475,434.87 | 70,444,079.57 | 277,345,883.15 |
| Total | 319,314,527.85 | 28,475,434.87 | 70,444,079.57 | 277,345,883.15 |
Other description, including increase/decrease in the current period and reasons for change:
42. Surplus reserves
Unit: Yuan
| Item | Opening balance | Increase in the Current Period | Decrease in the Current Period | Ending balance |
| Statutory surplus reserve | 2,797,987,184.22 | 109,035,301.36 | 729.89 | 2,907,021,755.69 |
| Discretionary surplus reserves | 297,526,491.71 | 297,526,491.71 | ||
| Total | 3,095,513,675.93 | 109,035,301.36 | 729.89 | 3,204,548,247.40 |
Description of the surplus reserve, including increase/decrease and reasons for change in the current period:
(1) The statutory surplus reserve at the beginning of the current period increased by 5,105,359.06 yuan due toretrospective adjustments from business combinations under common control;
(2) The statutory surplus reserve at the beginning of the previous period increased by 4,546,767.65 yuan due toretrospective adjustments from business combinations under common control;
(3) In accordance with the Company Law and Articles of Association, the Company appropriated 109,035,301.36yuan to the statutory surplus reserve, representing 10% of net profit. If the accumulated amount of statutory surplusreserve is more than 50% of the registered capital of the Company, it may not be withdrawn any more.
(4) The surplus reserve decreased by 729.89 yuan due to the sale of 21.8393% equity in First Automobile FinanceCo., Ltd., previously accounted for using the equity method, whereby the associated non-reclassifiable othercomprehensive income was transferred to retained earnings.
43. Undistributed profits
Unit: Yuan
| Item | Current period | Previous period |
| Undistributed profits at the end of the previous period before adjustment | 6,191,777,512.32 | 5,460,939,601.36 |
| Total amount of opening undistributed profit adjusted ("+" for increase, "-" for decrease) | 54,756,122.34 | 3,194,653.84 |
| Undistributed profits at the beginning of the current period after adjustment | 6,246,533,634.66 | 5,464,134,255.20 |
| Add: net profit attributable to owners of parent company in the current period | 622,427,699.65 | 806,096,685.30 |
| Less: withdrawal of statutory surplus reserve | 109,035,301.36 | 32,717,305.84 |
| Common stock dividends payable | 693,579,557.10 | |
| Others | 11,006,569.04 | -9,020,000.00 |
| Undistributed profits at the end of the period | 6,055,339,906.81 | 6,246,533,634.66 |
Details of adjustment to undistributed profits at the beginning of the period:
1) The retroactive adjustment of the Accounting Standards for Business Enterprises and its relevant newregulations impacts the opening undistributed profit by 0.00 yuan.
2) The undistributed profit at the beginning of the period affected by changes in accounting policies is 0.00 yuan.
3) The correction of major accounting errors impacts the opening undistributed profit by 0.00 yuan.
4) The change in combination scope caused by the same control impacts the opening undistributed profit by54,756,122.34 yuan.
5) Other adjustments affect the opening undistributed profit by 0.00 yuan in total.
44. Operating income and operating cost
Unit: Yuan
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period | ||
| Income | Cost | Income | Cost | |
| Main business | 56,781,606,864.49 | 53,523,342,363.25 | 62,387,958,459.56 | 57,905,561,816.09 |
| Other business | 1,799,499,394.04 | 1,384,734,160.18 | 1,936,682,311.08 | 1,495,805,527.40 |
| Total | 58,581,106,258.53 | 54,908,076,523.43 | 64,324,640,770.64 | 59,401,367,343.49 |
Whether the audited lower net profit before and after the deduction of non-recurring profit or loss is negative
?Yes □No
Unit: Yuan
| Item | Current Year | Specific Deductions | Previous Year | Specific Deductions |
| Amount of operating income | 58,581,106,258.53 | Sales revenue of complete vehicles, parts and components, materials, purchased semi-finished products, etc. | 64,324,640,770.64 | Sales revenue of complete vehicles, parts and components, materials, purchased semi-finished products, etc. |
| Total amount of operating income deduction items | 356,109,842.75 | Lease income and revenue of subsidiaries from the beginning of the period to the combination date in business combinations under common control | 431,418,385.07 | Lease income and revenue of subsidiaries from the beginning of the period to the combination date in business combinations under common control |
| Proportion of total amount of operating income deduction items in operating income | 0.61% | 0.67% | ||
| I. Business income irrelevant to the main business | ||||
| 1. Other business income other than normal operation. Income from the leasing of fixed assets, intangible assets, packaging materials, sales of materials, exchange of non-monetary assets with materials, operation of trusteeship management business, etc., and income that is included in the | 25,222,637.35 | Rental income | 11,310,091.46 | Rental income |
| main business income but belongs to income other than the normal operation of listed companies. | ||||
| 2. Revenue of subsidiaries from the beginning of the period to the combination date in business combinations under common control | 330,887,205.40 | Revenue of subsidiaries from the beginning of the period to the combination date in business combinations under common control | 420,108,293.61 | Revenue of subsidiaries from the beginning of the period to the combination date in business combinations under common control |
| Subtotal of business income irrelevant to the main business | 356,109,842.75 | Lease income and revenue of subsidiaries from the beginning of the period to the combination date in business combinations under common control | 431,418,385.07 | Lease income and revenue of subsidiaries from the beginning of the period to the combination date in business combinations under common control |
| II. Income without commercial substance | ||||
| Subtotal of income without commercial substance | 0.00 | N/A | 0.00 | N/A |
| III. Other incomes irrelevant to the main business or without commercial substance | 0.00 | N/A | 0.00 | N/A |
| Amount of operating income after deduction | 58,224,996,415.78 | Excluding lease income and revenue of subsidiaries from the beginning of the period to the combination date in business combinations under common control | 63,893,222,385.57 | Excluding lease income and revenue of subsidiaries from the beginning of the period to the combination date in business combinations under common control |
Other description
Information related to the transaction price apportioned to the remaining performance obligation: At the end of thereporting period, the income corresponding to the performance obligations that have been signed but have notbeen performed or fulfilled is 633,128,232.65 yuan, of which 633,128,232.65 yuan is expected to be recognized in2025.
45. Taxes and surcharges
Unit: Yuan
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Urban maintenance and construction tax | 24,096,553.91 | 56,747,629.14 |
| Education surcharges | 15,981,804.33 | 36,481,730.95 |
| Property tax | 71,614,904.12 | 70,287,308.66 |
| Land use tax | 44,935,261.58 | 35,743,310.23 |
| Vehicle and vessel use tax | 129,183.90 | 153,731.13 |
| Stamp duty | 61,581,104.85 | 62,913,176.18 |
| Environmental protection tax | 667,407.02 | 284,890.41 |
| Others | 1,401,800.93 | 1,270,062.43 |
| Total | 220,408,020.64 | 263,881,839.13 |
Other description: none
46. Administrative expenses
Unit: Yuan
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Employee compensation | 1,036,574,708.68 | 1,165,957,695.26 |
| Repair cost of fixed assets | 200,223,047.11 | 224,298,550.15 |
| Depreciation cost | 134,953,520.82 | 135,496,348.78 |
| Amortization of intangible assets | 92,882,626.65 | 89,101,204.84 |
| Information system service fee | 40,195,945.27 | 45,902,720.17 |
| Labor outsourcing fee | 38,843,662.53 | 43,793,358.88 |
| Rental fee | 31,039,387.49 | 30,936,892.44 |
| Kinetic energy and workshop heating cost | 28,457,378.32 | 30,230,843.03 |
| Travel expense | 25,567,986.89 | 26,959,825.27 |
| Test and inspection fee | 19,455,221.58 | 16,551,475.16 |
| Publicity fee | 18,704,673.47 | 14,480,896.95 |
| Sewage charge | 16,276,329.49 | 24,116,561.43 |
| Consultation expenses | 14,923,324.98 | 25,168,917.70 |
| Environmental improvement fee | 12,388,194.76 | 13,254,188.88 |
| Security deposit for the disabled | 8,946,720.97 | 7,933,560.44 |
| Property insurance | 6,633,180.44 | 7,057,973.90 |
| Authentication fee | 6,614,996.60 | 5,033,526.02 |
| Office expenses | 6,308,679.04 | 7,404,843.25 |
| Amortization of low-value consumables | 5,847,170.42 | 9,810,114.81 |
| Others | 35,815,721.59 | 32,749,534.91 |
| Total | 1,780,652,477.10 | 1,956,239,032.27 |
Other description: none
47. Sales expenses
Unit: Yuan
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Employee compensation | 606,050,106.71 | 573,571,126.18 |
| Travel expense | 132,924,519.61 | 92,948,369.87 |
| Packing cost | 122,479,099.15 | 98,493,329.64 |
| Storage fee | 120,442,414.18 | 121,382,744.57 |
| Sales service fee | 58,823,277.30 | 24,546,263.54 |
| Rental fee | 56,013,886.40 | 48,965,173.65 |
| Publicity expenses | 54,592,817.18 | 55,127,804.87 |
| Promotion fee | 26,754,452.90 | 9,754,960.71 |
| Depreciation cost | 15,341,686.60 | 5,773,216.23 |
| Labor outsourcing | 14,169,830.66 | 14,007,484.23 |
| Insurance premium | 12,634,504.23 | 2,110,840.38 |
| Office expenses | 6,868,963.20 | 4,587,091.58 |
| Conference expenses | 6,355,536.81 | 5,637,425.69 |
| Consultation expenses | 5,757,883.34 | 8,022,625.48 |
| Customer training fee | 4,854,480.39 | 2,255,558.39 |
| Exhibition fees | 2,716,158.55 | 5,510,100.63 |
| Business entertainment expenses | 1,427,702.24 | 1,210,866.54 |
| Others | 25,120,276.47 | 29,693,729.92 |
| Total | 1,273,327,595.92 | 1,103,598,712.10 |
Other description: none
48. R&D expenses
Unit: Yuan
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Labor cost | 1,484,942,094.42 | 1,636,551,834.14 |
| Material cost | 187,891,190.14 | 466,540,598.59 |
| Test fee | 279,968,389.34 | 316,626,655.94 |
| Depreciation amortization expense | 239,634,685.96 | 254,417,232.35 |
| Water, electricity and gas charges | 58,957,598.67 | 84,675,033.97 |
| Technical development cost | 47,994,217.53 | 58,499,726.43 |
| Others | 110,097,465.70 | 164,946,797.74 |
| Total | 2,409,485,641.76 | 2,982,257,879.16 |
Other description: none49 Financial expenses
Unit: Yuan
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Interest expense | 2,594,098.03 | 4,228,160.85 |
| Interest income | -619,382,020.15 | -810,531,561.26 |
| Exchange gain or loss | -81,571,963.58 | 22,472,253.73 |
| Cash discount | -130,500,808.28 | -173,364,601.86 |
| Net actuarial interest | 17,984,781.72 | 22,534,650.42 |
| Fees and other charges | 4,904,245.62 | 1,594,238.66 |
| Total | -805,971,666.64 | -933,066,859.46 |
Other description: none
50. Other income
Unit: Yuan
| Sources of other income | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Additional deduction of VAT | 509,114,356.63 | 64,529,919.18 |
| Refund of handling fees to individual income tax | 2,035,928.98 | 2,021,691.30 |
| Government subsidies | 618,258,791.46 | 546,840,041.28 |
| Total | 1,129,409,077.07 | 613,391,651.76 |
51. Investment income
Unit: Yuan
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Income from long-term equity investments accounted for using the equity method | 310,581,812.67 | 347,980,074.28 |
| Investment income from the disposal of long-term equity investment | 469,265,324.69 | |
| Others | -150,154,510.85 | -65,651,226.20 |
| Total | 629,692,626.51 | 282,328,848.08 |
Other description: none
52. Credit impairment loss
Unit: Yuan
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Bad debt losses of notes receivable | 207,820.97 | 586,187.61 |
| Bad debt losses of accounts receivable | -12,108,686.11 | -40,506,126.54 |
| Bad debt losses of other receivables | 80,572,073.84 | -19,414,371.16 |
| Bad debt losses of long-term receivables | -14,179,402.72 | -36,050,114.74 |
| Total | 54,491,805.98 | -95,384,424.83 |
Other description: none
53. Asset impairment loss
Unit: Yuan
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| I. Inventory falling price loss and contract performance cost impairment loss | -352,663,464.80 | -185,910,574.96 |
| II. Loss from fixed assets impairment | -6,128,378.48 | |
| III. Loss from contractual asset impairment | -159,644.74 | -228,908.47 |
| Total | -352,823,109.54 | -192,267,861.91 |
Other description: none
54. Income from assets disposal
Unit: Yuan
| Sources of income from assets disposal | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Gains from disposal of fixed assets ("-" for loss) | -2,556,989.65 | 8,226,688.31 |
| Gains from disposal of intangible assets ("-" for losses) | 184,441,684.84 | |
| Total | -2,556,989.65 | 192,668,373.15 |
55. Non-operating income
Unit: Yuan
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period | Amount included in current non-recurring profits and losses |
| Unpayable amounts confirmed | 69,577,213.54 | 110,679,101.87 | 69,577,213.54 |
| Income from compensation, liquidated damages and fines | 22,783,642.56 | 25,287,277.01 | 22,783,642.56 |
| Gains from damage and retirement of non-current assets | 841,253.88 | 891,307.00 | 841,253.88 |
| Others | 8,290,435.68 | 60,980,082.35 | 8,290,435.68 |
| Total | 101,492,545.66 | 197,837,768.23 | 101,492,545.66 |
Other description: none
56. Non-operating expenses
Unit: Yuan
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period | Amount included in current non-recurring profits and losses |
| Donation | 8,988,110.00 | 12,050,000.00 | 8,988,110.00 |
| Losses from damage and retirement of non-current assets | 1,873,692.16 | 4,685,419.26 | 1,873,692.16 |
| Expenditure of liquidated damages and penalties | 17,552,554.47 | 10,494,522.73 | 17,552,554.47 |
| Others | 370,560.94 | 295,204.99 | 370,560.94 |
| Total | 28,784,917.57 | 27,525,146.98 | 28,784,917.57 |
Other description: none
57. Income tax expenses
(1) Statement of income tax expenses
Unit: Yuan
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Current income tax expenses | 126,075,087.26 | 138,928,165.68 |
| Deferred income tax expense | -459,297,534.77 | -445,815,827.89 |
| Total | -333,222,447.51 | -306,887,662.21 |
(2) Adjustment process of accounting profits and income tax expenses
Unit: Yuan
| Item | Amount Incurred in Current Period |
| Total profits | 326,048,704.78 |
| Income tax expense calculated at statutory/applicable tax rate | 81,512,176.20 |
| Effect of different tax rates applied to subsidiaries | 163,745,525.94 |
| Effect of adjustment to income tax of previous periods | -80,960,321.67 |
| Effect of non-taxable income | -664,042.49 |
| Effect of non-deductible costs, expenses and losses | 14,140,005.68 |
| Effect of using the deductible losses of deferred tax assets not recognized in the previous periods | -149,167,006.39 |
| Effects of deductible temporary differences or deductible losses of deferred income tax assets unrecognized in the current period | 9,443,668.44 |
| Profit or loss of joint ventures and associated enterprises calculated by equity method | -74,015,068.69 |
| Tax effect of R&D expenses plus deduction (to be listed with "-") | -296,687,406.45 |
| Others | -569,978.09 |
| Income tax expenses | -333,222,447.51 |
Other description:
58. Other comprehensive incomes
For details, please refer to 40 in VII "Notes to Consolidated Financial Statements" of Section X - FinancialReport.
59. Items of cash flow statement
(1) Cash related to operating activities
Other cash received related to operating activities
Unit: Yuan
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Government subsidies received | 571,544,389.16 | 495,135,671.78 |
| Collection and payment | 391,660,955.82 | 591,395,448.15 |
| Bank interest | 126,285,131.12 | 704,789,225.69 |
| Fines and indemnities received | 13,638,624.11 | 6,771,123.26 |
| Rental fee received | 13,306,512.62 | 20,310,385.96 |
| Recovery of reserve funds | 1,657,105.19 | 3,864,873.02 |
| Refund of handling fees | 952,392.24 | 788,831.31 |
| Deposits received | 753,316.41 | 25,639,855.20 |
| Other current accounts | 26,510,089.62 | 64,744,297.38 |
| Total | 1,146,308,516.29 | 1,913,439,711.75 |
Description of other cash received related to operating activities:
Other cash paid related to operating activities
Unit: Yuan
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Out-of-pocket expenses | 1,137,805,570.04 | 1,343,669,941.85 |
| Current account | 277,620,463.50 | 414,443,028.61 |
| Donations | 8,988,110.00 | 12,050,000.00 |
| Total | 1,424,414,143.54 | 1,770,162,970.46 |
Description of other cash payments related to operating activities:
(2) Cash related to investing activities
Cash received from significant investing activities
Unit: Yuan
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Disposal price of long-term equity investments accounted for using the equity method | 4,357,068,905.33 | |
| Total | 4,357,068,905.33 |
Description of other cash received related to investing activities:
Other cash paid related to investing activities
Unit: Yuan
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Fixed deposits | 2,400,000,000.00 | |
| Cash attached to the invested business | 17,676,304.33 | |
| Total | 2,400,000,000.00 | 17,676,304.33 |
Cash paid for important investing activities
Unit: Yuan
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Cash paid for the purchase of equity in FAW (Africa) Investment | 180,371,837.52 |
| Co., Ltd. | ||
| Cash paid to purchase the equity of Jiefang Motors Tanzania Ltd. | 40,460,300.41 | |
| Total | 220,832,137.93 |
Description of other cash paid related to investing activities:
(3) Cash related to financing activities
Cash received relating to other financing activities
Unit: Yuan
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Dividends returned by the original shareholders of the subsidiary | 16,400,000.00 | |
| Total | 16,400,000.00 |
Cash received from other financing activities:
Other cash paid related to financing activities
Unit: Yuan
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Principal and interest on lease liabilities | 16,667,194.16 | 28,987,570.03 |
| Total | 16,667,194.16 | 28,987,570.03 |
Description of other cash payments related to financing activities:
Changes in liabilities arising from financing activities
□Applicable ?Not applicable
60. Supplementary information to cash flow statement
(1) Supplementary information to cash flow statement
Unit: Yuan
| Supplementary Information | Amount in the current period | Amount of the Previous Period |
| 1. Reconciliation of net profit to cash flows from operating activities | ||
| Net Profit | 659,271,152.29 | 828,299,693.66 |
| Add: impairment provision of assets | 298,331,303.56 | 287,652,286.74 |
| Depreciation of fixed assets, depletion of oil and gas assets and productive biological assets | 1,780,705,889.72 | 1,651,696,628.24 |
| Depreciation of right-of-use asset | 51,883,038.66 | 67,697,072.30 |
| Amortization of intangible assets | 205,690,065.43 | 188,260,081.04 |
| Amortization of long-term deferred expenses | 130,771.72 | |
| Losses from disposal of fixed assets, intangible assets and other long-term assets (incomes to be listed with "-") | 2,556,989.65 | -192,668,373.15 |
| Loss from retirement of fixed assets (incomes to be listed with "-") | 1,873,692.16 | 4,685,419.26 |
| Loss from changes in fair value (incomes to be listed with "-") | ||
| Financial expenses (incomes to be listed with "-") | -474,436,370.43 | -383,221,499.22 |
| Investment losses (incomes to be listed with "-") | -779,847,137.36 | -448,976,452.61 |
| Decrease of deferred income tax assets (increase to be listed with "-") | -449,315,465.25 | -417,012,690.00 |
| Increases of deferred income tax liabilities (decrease to be listed with "-") | 11,114,174.97 | -29,271,199.00 |
| Decrease in inventories (increase to be listed with "-") | -413,235,112.72 | -3,189,313,118.26 |
| Decrease in operating receivables (increase to be listed with "-") | -10,160,069,654.49 | -1,828,364,906.10 |
| Increase in operating items payable (decrease to be listed with "-") | 3,504,475,291.22 | 7,739,492,761.57 |
| Others | -89,284,164.46 | -189,413,082.41 |
| Net cash flows from operating activities | -5,850,286,307.05 | 4,089,673,393.78 |
| 2. Major investment and financing activities not related to cash deposit and withdrawal: | ||
| Conversion of debt into capital | ||
| Convertible corporate bonds within one year | ||
| Fixed assets acquired under financial lease | ||
| 3. Net changes in cash and cash equivalents: | ||
| Ending balance of cash | 19,391,201,104.68 | 23,108,714,054.86 |
| Less: opening balance of cash | 23,108,714,054.86 | 21,428,741,608.88 |
| Add: ending balance of cash equivalents | ||
| Less: opening balance of cash equivalents | ||
| Net increase in cash and cash equivalents | -3,717,512,950.18 | 1,679,972,445.98 |
(2) Net cash paid for the acquisition of subsidiaries in the current period
Unit: Yuan
| Amount | |
| Cash or cash equivalents paid in the current period for business combination occurred in the current period | 220,832,137.93 |
| Including: | |
| FAW (Africa) Investment Co., Ltd. | 180,371,837.52 |
| Jiefang Motors Tanzania Ltd. | 40,460,300.41 |
| Less: cash and cash equivalents held by subsidiaries on the acquisition date | 663,903,958.50 |
| Including: | |
| FAW (Africa) Investment Co., Ltd. | 605,709,893.05 |
| Jiefang Motors Tanzania Ltd. | 58,194,065.45 |
| Including: | |
| Net cash paid to acquire subsidiaries | -443,071,820.57 |
Other description:
(3) Composition of cash and cash equivalents
Unit: Yuan
| Item | Ending balance | Opening balance |
| I. Cash | 19,391,201,104.68 | 23,108,714,054.86 |
| Including: cash on hand | 300,158.23 | 38,698.84 |
| Bank deposits readily available for payment | 19,390,900,946.45 | 23,108,675,356.02 |
| II. Ending balance of cash and cash equivalents | 19,391,201,104.68 | 23,108,714,054.86 |
61. Notes to items of the statement of changes in owners' equity
Description of "Other" items adjusting prior year-end balances and adjustment amounts:
(1) Due to retrospective adjustments from business combinations under common control, capital reserves at thebeginning of the current period increased by 374,018,599.98 yuan, other comprehensive income decreased by118,685,308.30 yuan, surplus reserves and retained earnings increased by 5,105,359.06 yuan and 54,756,122.34yuan respectively, and non-controlling interests increased by 245,455,442.13 yuan;
(2) Due to retrospective adjustments from business combinations under common control, capital reserves at thebeginning of the previous period increased by 374,018,599.99 yuan, other comprehensive income decreased by114,022,743.06 yuan, surplus reserves and retained earnings increased by 4,546,767.65 yuan and 3,222,985.59 yuanrespectively, and non-controlling interests increased by 218,280,811.16 yuan.
62. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: Yuan
| Item | Foreign Currency Balance at the End of the Period | Exchange rate | Ending Balance Converted into CNY |
| Monetary capital | 579,723,964.46 | ||
| Including: USD | 26,404,557.94 | 7.1884 | 189,817,608.35 |
| EUR | 500,030.77 | 7.5257 | 3,763,081.57 |
| HKD | |||
| USD | 32,290,338.08 | 7.3008 | 235,746,559.59 |
| Shilling | 2,792,828,760.38 | 0.0030 | 8,385,110.52 |
| Rand | 364,132,319.04 | 0.3900 | 142,011,604.43 |
| Accounts receivable | 527,513,308.71 | ||
| Including: USD | 41,557,598.18 | 7.1884 | 298,788,820.27 |
| EUR | |||
| HKD | |||
| USD | 12,884,411.01 | 7.3008 | 94,067,010.37 |
| Shilling | 845,789,494.76 | 0.0030 | 2,539,374.59 |
| Rand | 338,764,367.91 | 0.3900 | 132,118,103.48 |
| Long-term loans | |||
| Including: USD | |||
| EUR | |||
| HKD | |||
| Other receivables | 29,126,617.29 | 5,316,727.06 | |
| Including: USD | 660,000.00 | 7.1884 | 4,745,400.00 |
| USD | 66,575.85 | 7.3008 | 486,059.57 |
| Shilling | 28,400,041.44 | 0.0030 | 85,267.49 |
| Accounts payable | 1,292,069,625.04 | 958,899,948.55 | |
| Including: USD | 124,897,104.67 | 7.1884 | 897,810,669.16 |
| Shilling | 1,018,373,175.72 | 0.0030 | 3,057,534.98 |
| Rand | 148,799,344.65 | 0.3900 | 58,031,744.41 |
| Other payables | 33,915,715.95 | 19,501,001.53 | |
| Including: USD | 922,845.42 | 7.1884 | 6,633,782.02 |
| Rand | 32,992,870.53 | 0.3900 | 12,867,219.51 |
Other description:
(2) Description of overseas operating entities, including the disclosure of main overseas business place,recording currency and selection basis, or changes in the recording currency (if any) for important overseasoperating entities.?Applicable □Not applicable
| Unit | Business place | Registered Capital | Recording currency |
| FAW Jiefang Austria R&D Co., Ltd. | Steyr, Austria | EUR 2 million | EUR |
| Jiefang Motors Tanzania Ltd. | Dar es Salaam, Tanzania | 220 thousand shillings | Tanzanian shilling |
| FAW Vehicle Manufacturing South Africa Co., Ltd. | Johannesburg, South Africa | 624.339531 million Rand | South African Rand |
63. Lease
(1) The Company acting as the lessee
?Applicable □Not applicableVariable lease payments not included in the measurement of lease liabilities
□Applicable ?Not applicable
Lease expenses for simplified short-term leases or low-value asset leases?Applicable □Not applicableAs the lessee Unit: Yuan
| Item | Amount Incurred in Current Period |
| Short-term lease expense | 44,499,835.93 |
| Low-value asset lease expense | |
| Variable lease payments not included in the measurement of lease liabilities | |
| Total | 44,499,835.93 |
Circumstances involving sale and leaseback transactions
(2) The Company acting as the lessor
Operating lease with the Company acting as the lessor?Applicable □Not applicable
Unit: Yuan
| Item | Rental income | Including: income related to variable lease payments not included in the lease receipts |
| Rental income | 25,222,637.35 | |
| Total | 25,222,637.35 |
Financing lease with the Company acting as the lessor
□Applicable ?Not applicable
Yearly undiscounted lease receipts for the next five years
□Applicable ?Not applicable
(3) Gains and losses recognized from sales of finance lease as a manufacturer or distributor
□Applicable ?Not applicable
VIII. R&D Expenditures
Unit: Yuan
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Including: Expensed R&D expenditure | 2,409,485,641.76 | 2,982,257,879.16 |
| Capitalized R&D expenditure | 390,738,120.65 | 122,705,199.95 |
1. R&D projects eligible for capitalization
Unit: Yuan
| Item | Opening balance | Increase in the Current Period | Decrease in the Current Period | Ending balance | ||
| Internal development expenditures | Others | Recognized as intangible assets | Transferred to current profits and losses | |||
| A2205 | 5,393,345.15 | 18,154,652.03 | 23,547,997.18 | |||
| A2207 | 9,870,532.29 | 31,664,765.51 | 41,535,297.80 | |||
| A2208 | 12,756,268.51 | 17,768,467.74 | 30,524,736.25 | |||
| A2209 | 26,396,041.18 | 5,651,329.61 | 32,047,370.79 | |||
| A2305 | 12,547,492.73 | 26,952,715.67 | 39,500,208.40 | |||
| A2306 | 16,094,984.19 | 30,976,947.51 | 47,071,931.70 | |||
| A2307 | 2,723,108.10 | 59,728,261.87 | 62,451,369.97 | |||
| A2308 | 12,945,847.92 | 34,002,797.55 | 46,948,645.47 | |||
| L126 | 22,108,818.25 | 22,108,818.25 | ||||
| L2403 | 38,408.37 | 38,408.37 | ||||
| L2405 | 228,815.19 | 228,815.19 | ||||
| T2208 | 8,944,559.08 | 26,172,820.94 | 35,117,380.02 | |||
| T2209 | 2,201,651.44 | 12,356,137.14 | 14,557,788.58 | |||
| T2303 | 1,611,856.86 | 1,611,856.86 | ||||
| T2402 | 778,994.99 | 778,994.99 | ||||
| XC2311120 | 8,011,745.85 | 8,011,745.85 | ||||
| XC2411020 | 7,488,163.90 | 7,488,163.90 | ||||
| XC2411030 | 7,794,198.22 | 7,794,198.22 | ||||
| XC2411098 | 12,152,129.50 | 12,152,129.50 | ||||
| XC2411107 | 2,967,534.05 | 2,967,534.05 | ||||
| Z2407 | 12,299,822.33 | 12,299,822.33 | ||||
| Z2408 | 9,466,942.22 | 9,466,942.22 | ||||
| Z2409 | 9,393,773.35 | 9,393,773.35 | ||||
| Z2442 | 32,424,484.68 | 32,424,484.68 | ||||
| Z2443 | 411,413.51 | 411,413.51 | ||||
| Z2444 | 132,123.81 | 132,123.81 | ||||
| Total | 109,873,830.59 | 390,738,120.65 | 500,611,951.24 | |||
Significant capitalized R&D projects
| Item | R&D progress | Expected completion time | Expected generation method of economic benefits | Time point of capitalization starting | Specific basis for capitalization starting |
| A2207 | Engineering design and verification | November 30, 2026 | Production and sales | January 1, 2023 | Being adopted by consideration and decision-making |
| at the project review meeting | |||||
| A2208 | Engineering design and verification | November 30, 2026 | Production and sales | January 1, 2023 | Being adopted by consideration and decision-making at the project review meeting |
| A2209 | Trial production | June 30, 2025 | Production and sales | January 1, 2023 | Being adopted by consideration and decision-making at the project review meeting |
| A2308 | Engineering design and verification | June 1, 2026 | Production and sales | March 1, 2023 | Being adopted by consideration and decision-making at the project review meeting |
| A2306 | Small batch release | January 1, 2025 | Production and sales | March 1, 2023 | Being adopted by consideration and decision-making at the project review meeting |
| A2307 | Engineering design and verification | February 1, 2026 | Production and sales | March 1, 2023 | Being adopted by consideration and decision-making at the project review meeting |
| A2305 | Engineering design and verification | February 1, 2026 | Production and sales | March 1, 2023 | Being adopted by consideration and decision-making at the project review meeting |
| T2208 | Engineering design and verification | April 30, 2026 | Production and sales | January 1, 2023 | Being adopted by consideration and decision-making at the project review meeting |
| Z2442 | Passed the PDCP node | December 1, 2025 | Production and sales | June 1, 2024 | Being adopted by consideration and decision-making at the project review meeting |
| Z2407 | Completed the loading of the engineering prototype | December 31, 2025 | Production and sales | February 01, 2024 | Being adopted by consideration and decision-making at the project review meeting |
| T2209 | Trial production | January 30, 2025 | Production and sales | January 1, 2023 | Being adopted by consideration and |
| decision-making at the project review meeting | |||||
| L126 | A round of reliability validation/production approval for launching/TR4A stage | May 10, 2026 | Production and sales | April 7, 2024 | Being adopted by consideration and decision-making at the project review meeting |
| A2205 | A round of reliability validation/production approval for launching/TR4A | June 1, 2027 | Production and sales | December 1, 2023 | Being adopted by consideration and decision-making at the project review meeting |
IX. Changes in Consolidation Scope
1. Business merger under common control
(1) Business combination under common control in the current period
Unit: Yuan
| Combined party | Proportion of equity acquired from business combination | Basis for business combination under common control | Merger date | Determination basis of the combination date | Revenue of the combined party from the beginning of the combination period to the combination date | Net profit of the combined party from the beginning of the combination period to the combination date | Revenue of the combined party during the comparison period | Net profit of the combined party during the comparison period |
| Jiefang Motors Tanzania Ltd. | 100.00% | Under common control of FAW Group | December 31, 2024 | Acquisition of control | 523,442,328.24 | 52,510,826.99 | 530,967,163.42 | 19,982,474.73 |
| FAW (Africa) Investment Co., Ltd. | 55.00% | Under common control of FAW Group | December 31, 2024 | Acquisition of control | 1,746,073,985.00 | 80,333,656.68 | 1,505,245,964.57 | 48,405,046.95 |
Other description:
① In December 2024, the Company acquired 100% equity in Jiefang Motors Tanzania Ltd. from China Faw Group Import & Export Corp, a subsidiary of FAWGroup, for 57,800,429.15 yuan in cash. Since both parties involved in the merger were under the control of FAW Group before and after the transaction, and this controlwas not temporary, this transaction constitutes a business combination under common control, with the merger date established as December 31, 2024.
② In December 2024, the Company acquired 55% equity in FAW (Africa) Investment Co., Ltd. from China Faw Group Import & Export Corp, a subsidiary of FAWGroup, for 327,948,795.48 yuan in cash. Since both parties involved in the merger were under the control of FAW Group before and after the transaction, and thiscontrol was not temporary, this transaction constitutes a business combination under common control, with the merger date established as December 31, 2024.
(2) Combination cost
Unit: Yuan
| Combination cost | Jiefang Motors Tanzania Ltd. | FAW (Africa) Investment Co., Ltd. |
| --Cash | 57,800,429.15 | 327,948,795.48 |
| - Book value of non-cash assets | ||
| - Book value of debts issued or assumed | ||
| - Par value of equity securities issued | ||
| - Contingent consideration |
Contingent consideration and its changes:
Other description:
(3) Book value of the combined party's assets and liabilities on the combination date
Unit: Yuan
| Jiefang Motors Tanzania Ltd. | FAW (Africa) Investment Co., Ltd. | |||
| Merger date | End of the previous period | Merger date | End of the previous period | |
| Assets: | ||||
| Monetary capital | 58,194,065.45 | 42,602,811.40 | 605,709,893.05 | 582,266,689.87 |
| Accounts receivable | 216,488,946.64 | 203,701,695.49 | 213,477,432.80 | 150,020,783.88 |
| Inventories | 694,223,632.15 | 257,824,639.82 | 969,723,442.27 | 603,412,376.55 |
| Fixed assets | 182,854.41 | 126,818.59 | 80,367,306.48 | 100,436,261.73 |
| Intangible assets | 1,150,344.99 | 1,140,110.29 | 8,428,418.82 | 17,225,642.68 |
| Prepayments | 2,718,981.87 | 307,172.91 | 2,933,456.35 | 976,828.17 |
| Other receivables | 92,457.97 | 4,757,546.00 | 26,416,058.89 | 10,647,706.41 |
| Current portion of non-current assets | 89,852,372.01 | 164,027,995.75 | ||
| Other current assets | 12,267,535.02 | 3,091,040.17 | 16,655,624.57 | 9,008,457.64 |
| Long-term receivables | 652,158.39 | |||
| Right-of-use assets | 195,598.02 | 912,063.10 | 7,244,798.19 | 10,534,906.20 |
| Deferred income tax assets | 11,054,066.78 | 6,495,150.60 | 80,561,338.54 | 56,991,609.49 |
| Other non-current assets | 2,288,899.80 | |||
| Liabilities: | 12,267,535.02 | 3,091,040.17 | 16,655,624.57 | 9,008,457.64 |
| Loans | ||||
| Accounts payable | 839,310,900.82 | 463,576,037.45 | 1,119,118,441.68 | 763,124,911.69 |
| Contract liabilities | 29,648,129.94 | 8,549,220.06 | 59,333,041.42 | 107,430,253.39 |
| Employee compensation payable | 1,932,283.48 | 1,802,026.86 | 1,977,378.53 | 1,440,815.43 |
| Taxes payable | 29,044,829.30 | 6,915,808.67 | 104,543,611.96 | 45,825,957.61 |
| Other payables | 20,123,901.52 | 7,246,730.73 | ||
| Current portion of non-current liabilities | 214,654.05 | 933,667.70 | 3,649,812.54 | 103,505,336.27 |
| Other current liabilities | 4,516,564.08 | 1,538,859.62 | ||
| Lease liabilities | 4,219,734.42 | 7,479,859.01 | ||
| Estimated liabilities | 542,916.89 | 3,371,864.41 | 170,994,193.87 | 113,912,392.12 |
| Deferred income tax liabilities | 58,679.41 | 12,246,981.14 | 19,818,067.45 | |
| Net assets | 91,299,525.33 | 34,271,563.60 | 605,815,203.28 | 538,053,834.47 |
| Less: Minority equity | 7,465,870.16 | 6,056,757.49 | ||
| Net assets acquired | 91,299,525.33 | 329,092,133.22 |
Contingent liabilities assumed in business combinations:
Other description:
X. Equity in Other Entities
1. Equity in subsidiaries
(1) Composition of the enterprise group
Unit: Yuan
| Name of Subsidiary | Registered Capital | Principal business place | Registered address | Nature of Business | Share proportion | Way of Acquisition | |
| Direct | Indirect | ||||||
| FAW Jiefang Automotive Co., Ltd. | 10,803,012,510.01 | Changchun | Changchun | Vehicle manufacturing | 100.00% | Business merger under common control | |
| FAW Jiefang (Qingdao) Automotive Co., Ltd. | 802,000,000.00 | Qingdao | Qingdao | Vehicle manufacturing and sales | 100.00% | Business merger under common control | |
| FAW Jiefang Dalian Diesel Engine Co., Ltd. | 1,400,000,000.00 | Dalian | Dalian | Automotive engine manufacturing | 100.00% | Business merger under common control | |
| Wuxi Dahao Power Co., Ltd. | 38,094,059.61 | Wuxi | Wuxi | Manufacturing of automotive components and accessories | 100.00% | Business merger under common control | |
| FAW Jiefang Austria R&D Co., Ltd. | 15,765,000.00 | Austria | Austria | Technology research and development | 100.00% | Business merger under common control | |
| FAW Jiefang Automotive Sales Co., Ltd. | 200,000,000.00 | Changchun | Changchun | Vehicle sales | 100.00% | Establishment by investment | |
| FAW Jiefang Uni-D Transportation Technology (Tianjin) Co., Ltd. | 90,000,000.00 | Tianjin | Tianjin | Technical services and other services | 100.00% | Establishment by investment | |
| Jiefang Motors Tanzania Ltd. | 1,654 | Tanzania | Tanzania | Vehicle sales | 100.00% | Business merger under common control | |
| FAW (Africa) Investment Co., Ltd. | 680,000,000.00 | Changchun | Changchun | Vehicle sales | 55.00% | Business merger under common control | |
| FAW Vehicle Manufacturing South Africa Co., Ltd. | 466,105,291.49 | South Africa | South Africa | Vehicle manufacturing and sales | 98.00% | Business merger under common control | |
| FAW Jiefang Group International Automobile Co., Ltd. | 200,000,000.00 | Changchun | Changchun | Vehicle sales | 100.00% | Establishment by investment |
Description of the fact that the shareholding proportion in subsidiaries is different from the proportion of votingrights: noneBasis for holding half or less of the voting rights but still controlling the investee, and for holding more than halfof the voting rights but not controlling the investee: noneBasis for control of important structured entities included in the consolidation scope: noneBasis for determining whether the Company is an agent or a principal: noneOther description: none
(2) Significant non-wholly owned subsidiary
Unit: Yuan
| Name of Subsidiary | Minority shareholder percentage | Current period profit or loss attributable to minority shareholders | Dividends declared to minority shareholders for the period | Ending balance of minority shareholders' equity |
| FAW (Africa) Investment Co., Ltd. | 45.00% | 35,582,894.22 | 9,000,000.00 | 269,257,199.91 |
| FAW Vehicle Manufacturing South Africa Co., Ltd. | 2.00% | 1,260,558.42 | 7,465,870.16 |
Description of differences between the shareholding percentage and voting rights percentage of minorityshareholders in subsidiaries:
Other description:
(3) Key financial information of significant non-wholly owned subsidiaries
Unit: Yuan
| Name of Subsidiary | Ending balance | |||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
| FAW (Africa) Investment Co., Ltd. | 1,924,768,279.94 | 177,254,020.42 | 2,102,022,300.36 | 1,308,746,187.65 | 187,460,909.43 | 1,496,207,097.08 |
| FAW Vehicle Manufacturing South Africa Co., Ltd. | 1,660,758,671.79 | 168,319,044.76 | 1,829,077,716.55 | 1,262,192,399.99 | 187,460,909.43 | 1,449,653,309.42 |
Unit: Yuan
| Name of Subsidiary | Opening balance | |||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
| FAW (Africa) Investment Co., Ltd. | 1,520,360,838.27 | 187,477,319.90 | 1,707,838,158.17 | 1,028,574,005.12 | 141,210,318.58 | 1,169,784,323.70 |
| FAW Vehicle Manufacturing South Africa Co., Ltd. | 1,190,163,654.43 | 178,936,593.43 | 1,369,100,247.86 | 918,921,155.37 | 141,210,318.58 | 1,060,131,473.95 |
Unit: Yuan
| Name of Subsidiary | Amount Incurred in Current Period | Amount Incurred in the Previous Period | ||||||
| Operating Income | Net Profit | Total comprehensive income | Cash flow from operating activities | Operating Income | Net Profit | Total comprehensive income | Cash flow from operating activities | |
| FAW (Africa) Investment Co., Ltd. | 1,746,073,985.00 | 80,333,656.68 | 87,761,368.81 | 146,056,485.80 | 1,505,245,964.57 | 48,405,046.95 | 43,180,800.99 | -126,826,562.67 |
| FAW Vehicle Manufacturing South Africa Co., Ltd. | 1,743,838,969.30 | 63,027,921.09 | 70,455,633.22 | 102,946,177.56 | 1,325,574,185.82 | 38,248,839.50 | 33,024,593.54 | -167,469,638.42 |
Other description:
2. Equities in joint ventures or associated enterprise
(1) Important joint ventures or associated enterprises
| Name of Joint Ventures or Associated Enterprises | Principal business place | Registered address | Nature of Business | Share proportion | Accounting Treatment Method for Investment in Joint Ventures or Associated Enterprises | |
| Direct | Indirect | |||||
| Sanguard Automobile Insurance Co., Ltd. | Changchun | Changchun | Financial insurance | 17.50% | Equity method | |
| FAW Changchun Ansteel Jiefang Steel Processing and Distribution Co., Ltd. | Changchun | Changchun | Industrial manufacturing | 40.00% | Equity method | |
| FAW Changchun Baoyou Jiefang Steel Processing and Distribution Co., Ltd. | Changchun | Changchun | Industrial manufacturing | 21.81% | Equity method | |
| Changchun Wabco Automotive Control System Co., Ltd. | Changchun | Changchun | Manufacturing of automotive components and accessories | 40.00% | Equity method | |
| Suzhou Zhito Technology Co., Ltd. | Suzhou | Suzhou | Research and experimental development | 25.68% | Equity method | |
| FAW Jiefang Fujie (Tianjin) Technology Industry Co., Ltd. | Tianjin | Tianjin | Software and information technology services | 10.00% | Equity method | |
| SmartLink | Nanjing | Nanjing | Software and information technology services | 29.48% | Equity method | |
| Foshan Diyiyuansu New Energy Technology Co., Ltd. | Foshan | Foshan | Manufacturing and technical services | 45.00% | Equity method | |
| Changchun Automotive Test Center Co., Ltd. | Changchun | Changchun | Technical services | 14.63% | Equity method | |
| Jiefang Times New Energy Technology Co., Ltd. | Shijiazhuang | Shijiazhuang | Technical services and other services | 50.00% | Equity method | |
| Diyi AESC New Energy Power Technology (Wuxi) Co., Ltd. | Wuxi | Wuxi | Engineering and technology | 49.00% | Equity method | |
research andexperimentdevelopment
Explanation of the fact that the shareholding proportion in joint ventures or associated enterprises is different fromthe proportion of voting rights: there is no difference between the shareholding proportion and the proportion ofvoting rights.Basis for holding less than 20% of voting rights but with significant influence, or holding 20% or more of votingrights but without significant influence: The Company holds 17.50% of the shares of Sanguard AutomobileInsurance Co., Ltd., but it sends one director to the later according to the Articles of Association of the later, so theCompany can exert significant influence on Sanguard Automobile Insurance Co., Ltd. The Company holds 10.00%of the shares of FAW Jiefang Fujie (Tianjin) Technology Industry Co., Ltd., but it sends three directors to the lateraccording to the Articles of Association of the later, so the Company can exert significant influence on FAW JiefangFujie (Tianjin) Technology Industry Co., Ltd. The Company holds a 14.63% equity interest in ChangchunAutomotive Test Center Co., Ltd. According to the Company's Articles of Association, the Company appoints onedirector to this entity, enabling the Company to exercise significant influence over Changchun Automotive TestCenter Co., Ltd.
(2) Main financial information of important joint ventures
Unit: Yuan
| Ending Balance/Amount Incurred in Current Period | Opening Balance/Amount Incurred in Previous Period | |
| Jiefang Times New Energy Technology Co., Ltd. | Jiefang Times New Energy Technology Co., Ltd. | |
| Current assets | 227,009,344.13 | 106,516,730.29 |
| Including: Cash and cash equivalents | 116,492,002.58 | 23,493,644.57 |
| Non-current assets | 280,467,665.95 | 180,155,847.21 |
| Total assets | 507,477,010.08 | 286,672,577.50 |
| Current liabilities | 188,297,198.16 | 225,396.83 |
| Non-current liabilities | 235,991,858.58 | 203,389,215.33 |
| Total liabilities | 424,289,056.74 | 203,614,612.16 |
| Minority equity | ||
| Equity attributable to shareholders of the parent company | 83,187,953.34 | 83,057,965.34 |
| Shares of net assets calculated as per the shareholding proportion | 41,593,976.67 | 41,528,982.67 |
| Adjustments | -610,747.85 | |
| --Goodwill | ||
| --Unrealized profits from internal transactions | ||
| --Others |
| Book value of equity investment to joint ventures | 40,983,228.82 | 41,528,982.67 |
| The fair value of equity investment in joint ventures with a public offer | ||
| Operating Income | 478,132,676.54 | 23,610,012.53 |
| Financial expenses | ||
| Income tax expenses | ||
| Net Profit | 129,988.00 | -6,942,034.66 |
| Net profit from discontinued operations | ||
| Other comprehensive incomes | ||
| Total comprehensive income | 129,988.00 | -6,942,034.66 |
| Dividends received from joint ventures in the current year |
Other description:
(3) Main financial information on important associated enterprises
Unit: Yuan
| Ending Balance/Amount Incurred in Current Period | |||||||||
| Sanguard Automobile Insurance Co., Ltd. | FAW Changchun Ansteel Jiefang Steel Processing and Distribution Co., Ltd. | Changchun Wabco Automotive Control System Co., Ltd. | FAW Changchun Baoyou Jiefang Steel Processing and Distribution Co., Ltd. | Suzhou Zhito Technology Co., Ltd. | FAW Jiefang Fujie (Tianjin) Technology Industry Co., Ltd. | SmartLink | Foshan Diyiyuansu New Energy Technology Co., Ltd. | Changchun Automotive Test Center Co., Ltd. | |
| Current assets | 1,633,645,315.68 | 225,754,966.29 | 18,709,402.50 | 379,817,350.83 | 437,704,016.91 | 1,652,760,773.79 | 254,019,254.09 | 68,521,099.90 | 1,888,429,711.43 |
| Non-current assets | 728,117,619.35 | 56,379,164.36 | 21,176,837.03 | 52,684,567.98 | 65,076,092.06 | 553,963,942.84 | 205,199,282.03 | 379,084.99 | 2,106,666,455.86 |
| Total assets | 2,361,762,935.03 | 282,134,130.65 | 39,886,239.53 | 432,501,918.81 | 502,780,108.97 | 2,206,724,716.63 | 459,218,536.12 | 68,900,184.89 | 3,995,096,167.29 |
| Current liabilities | 422,757,528.38 | 62,347,851.84 | 3,051,437.70 | 228,746,889.03 | 299,946,243.29 | 1,676,736,398.91 | 336,302,462.02 | 5,602,229.38 | 216,419,291.20 |
| Non-current liabilities | 886,993,090.23 | 2,590,493.30 | 910,425,147.64 | 164,077,695.41 | 189,224,616.83 | 134,984,402.20 | |||
| Total liabilities | 1,309,750,618.61 | 62,347,851.84 | 3,051,437.70 | 231,337,382.33 | 1,210,371,390.93 | 1,840,814,094.32 | 525,527,078.85 | 5,602,229.38 | 351,403,693.40 |
| Net Assets | 1,052,012,316.42 | 219,786,278.81 | 36,834,801.83 | 201,164,536.48 | -707,591,281.96 | 365,910,622.31 | -66,308,542.73 | 63,297,955.51 | 3,643,692,473.89 |
| Minority equity | 7,600.52 | 445,046,483.22 | |||||||
| Equity attributable to shareholders of the parent company | 1,052,012,316.42 | 219,786,278.81 | 36,834,801.83 | 201,164,536.48 | -707,591,281.96 | 365,903,021.79 | -66,308,542.73 | 63,297,955.51 | 3,198,645,990.67 |
| Shares of net assets calculated as per the shareholding | 184,102,155.37 | 87,914,511.52 | 14,733,920.73 | 43,865,938.82 | -181,709,441.21 | 36,590,302.18 | -19,547,758.40 | 28,484,079.98 | 467,961,908.43 |
| proportion | |||||||||
| Adjustments | 506,601.26 | 267,105,032.74 | |||||||
| --Goodwill | |||||||||
| --Unrealized profits from internal transactions | |||||||||
| --Others | |||||||||
| Book value of equity investment in associated enterprises | 184,102,155.37 | 87,914,511.50 | 14,733,920.76 | 43,865,938.84 | 37,096,903.44 | 28,484,079.98 | 735,066,941.17 | ||
| Fair value of equity investment in associated enterprises with a public offer | |||||||||
| Operating Income | 669,419,255.51 | 546,313,343.75 | 1,496,989.12 | 1,113,344,442.48 | 207,656,277.18 | 1,308,411,205.27 | 460,578,255.51 | 50,306,825.24 | 731,748,783.24 |
| Net Profit | 3,092,280.51 | 3,442,181.20 | -1,451,672.89 | 31,653,595.49 | -199,112,260.45 | 12,062,800.59 | -76,034,225.12 | -8,528,017.08 | 231,920,911.69 |
| Net profit from discontinued operations | |||||||||
| Other comprehensive incomes | 67,741,434.81 | -340,000.00 |
| Total comprehensive income | 70,323,180.91 | 3,442,181.20 | -1,451,672.89 | 31,653,595.49 | -199,112,260.45 | 12,062,800.59 | -76,034,225.12 | -8,528,017.08 | 231,580,911.69 |
| Dividends received from associated enterprises in the current year | 1,324,000.00 | 6,500,530.62 | 747,434.87 |
Unit: Yuan
| Opening Balance/Amount Incurred in Previous Period | |||||||||
| FAW Changchun Ansteel Jiefang Steel Processing and Distribution Co., Ltd. | Changchun Wabco Automotive Control System Co., Ltd. | FAW Changchun Baoyou Jiefang Steel Processing and Distribution Co., Ltd. | Suzhou Zhito Technology Co., Ltd. | FAW Jiefang Fujie (Tianjin) Technology Industry Co., Ltd. | SmartLink | Foshan Diyiyuansu New Energy Technology Co., Ltd. | Changchun Automotive Test Center Co., Ltd. | Sanguard Automobile Insurance Co., Ltd. | |
| Current assets | 269,973,515.28 | 34,757,850.89 | 357,052,308.05 | 435,005,995.30 | 2,019,060,250.13 | 175,926,690.46 | 74,360,794.55 | 1,905,889,144.98 | 1,702,254,232.36 |
| Non-current assets | 61,635,140.40 | 24,179,782.51 | 49,442,981.99 | 86,241,055.85 | 845,687,497.81 | 183,160,633.97 | 1,980,391.85 | 1,778,261,365.48 | 876,220,650.46 |
| Total assets | 331,608,655.68 | 58,937,633.40 | 406,495,290.04 | 521,247,051.15 | 2,864,747,747.94 | 359,087,324.43 | 76,341,186.40 | 3,684,150,510.46 | 2,578,474,882.82 |
| Current liabilities | 111,751,776.05 | 18,443,724.53 | 205,065,072.99 | 127,443,900.05 | 2,188,704,666.79 | 286,751,551.15 | 2,530,641.78 | 148,517,574.12 | 409,136,482.45 |
| Non-current liabilities | 2,108,533.06 | 905,831,430.48 | 301,718,046.26 | 90,779,279.56 | 123,521,374.14 | 1,187,649,264.86 | |||
| Total liabilities | 111,751,776.05 | 18,443,724.53 | 207,173,606.05 | 1,033,275,330.53 | 2,490,422,713.05 | 377,530,830.71 | 2,530,641.78 | 272,038,948.26 | 1,596,785,747.31 |
| Net Assets | 219,856,879.63 | 40,493,908.87 | 199,321,683.99 | -512,028,279.38 | 374,325,034.89 | -18,443,506.28 | 73,810,544.62 | 3,412,111,562.20 | 981,689,135.51 |
| Minority equity | -1,056,387.18 | 448,669,357.62 | |||||||
| Equity attributable to shareholders of the parent | 219,856,879.63 | 40,493,908.87 | 199,321,683.99 | -512,028,279.38 | 374,325,034.89 | -17,387,119.10 | 73,810,544.62 | 2,963,442,204.58 | 981,689,135.51 |
| company | |||||||||
| Shares of net assets calculated as per the shareholding proportion | 87,942,751.83 | 16,197,563.58 | 43,464,086.43 | -131,488,862.14 | 37,432,503.49 | -6,085,491.68 | 33,214,745.08 | 433,551,594.53 | 171,795,598.71 |
| Adjustments | -449,647.25 | 267,105,032.74 | |||||||
| --Goodwill | |||||||||
| --Unrealized profits from internal transactions | |||||||||
| --Others | |||||||||
| Book value of equity investment in associated enterprises | 87,942,751.83 | 16,197,563.58 | 43,464,086.43 | 36,982,856.24 | 33,214,745.08 | 700,656,627.27 | 171,795,598.71 | ||
| Fair value of equity investment in associated enterprises with a public offer | |||||||||
| Operating Income | 628,235,851.66 | 58,341,332.83 | 1,648,271,059.88 | 146,454,823.25 | 3,084,484,599.82 | 419,681,174.18 | 669,737,782.82 | 847,730,093.47 | |
| Net Profit | 7,349,839.74 | -2,726,506.37 | 29,810,742.99 | -237,673,409.93 | 23,691,687.78 | 1,271,971.81 | -6,189,455.38 | 220,843,105.36 | -145,922,318.21 |
| Net profit from discontinued operations |
| Other comprehensive incomes | -90,000.00 | 6,641,842.09 | |||||||
| Total comprehensive income | 7,349,839.74 | -2,726,506.37 | 29,810,742.99 | -237,673,409.93 | 23,691,687.78 | 1,271,971.81 | -6,189,455.38 | 220,753,105.36 | -139,280,476.12 |
| Dividends received from associated enterprises in the current year | 1,640,000.00 | 6,892,912.77 | 4,835,877.87 |
Other description:
(4) Excess losses incurred by joint ventures or associated enterprises
Unit: Yuan
| Name of Joint Ventures or Associated Enterprises | Unrecognized Losses Accumulated in Prior Periods | Unrecognized Losses in the Current Period (or Net Profit Shared in the Current Period) | Accumulated Unrecognized Losses at the End of the Current Period |
| Suzhou Zhito Technology Co., Ltd. | 131,488,862.14 | 50,220,579.07 | 181,709,441.21 |
| SmartLink | 6,085,491.68 | 13,462,266.72 | 19,547,758.40 |
Other description:
XI. Government subsidies
1. Government subsidies recognized at the receivable amount at the end of the reporting period
□Applicable ?Not applicable
Reasons for failing to receive the expected amount of government subsidies at the expected time point
□Applicable? Not applicable
2. Liability items with government subsidies
□Applicable ?Not applicable
3. Government subsidies included in the current profit or loss
?Applicable □Not applicable
Unit: Yuan
| Account item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Government subsidies | 618,258,791.46 | 611,369,960.46 |
Other description:
XII. Risks Related to Financial Instruments
1. Various risks arising from financial instruments
(1) Risk management objectives and policies
The main financial instruments of the Company include monetary capital, notes receivable, accounts receivable,receivables financing, other receivables, non-current assets due within one year, other current assets, long-termreceivables, other equity instrument investments, notes payable, accounts payable, other payables, non-currentliabilities due within one year, and lease liabilities. Details of each financial instrument have been disclosed inrelevant notes. The risks related to these financial instruments and the risk management policies adopted by theCompany to reduce these risks are described below. The management of the Company manages and monitors these
risk exposures to ensure that the above risks are controlled within a limited range.The Company carries out risk management to achieve an appropriate balance between risks and benefits, minimizethe negative impact of risks on the Company's business performance, and maximize the interests of shareholdersand other equity investors. The Company, based on the risk management objectives, adopts the basic riskmanagement strategy of determining and analyzing various risks faced by the Company, establishing an appropriatebaseline for risk tolerance and carrying out risk management, and supervising various risks in a timely and reliablemanner to control the risks within a limited range.Main risks caused by the financial instruments of the Company include credit risk, liquidity risk and market risk(including exchange rate risk and interest rate risk).
① Credit risk
Credit risk refers to the risk of financial loss to the Company caused by the counterparty's failure to perform itscontractual obligations.The Company manages credit risks by portfolio classification. Credit risk mainly arises from bank deposits, notesreceivable, accounts receivable, other receivables, long-term receivables, etc.The Company's deposits are mainly deposited in state-owned banks and other large and medium-sized listed banks,as well as First Automobile Finance Co., Ltd., and the Company does not expect significant credit risks in its bankdeposits.The Company makes relevant policies to control the credit risk exposure for notes receivable, accounts receivable,other receivables and long-term receivables. The Company evaluates the credit qualification of customers and setsthe credit period based on their financial conditions, credit records and other factors such as current market situations.The Company monitors the credit records of customers regularly and takes measures such as written reminders,shortening of credit period or cancellation of credit period for customers with poor credit records, so as to ensurethat the overall credit risk is within a controllable range.The debtors of the Company's accounts receivable are customers distributed in different industries and regions. TheCompany carries out continuous credit assessments on the financial condition of accounts receivable and purchasescredit guarantee insurance when appropriate.The maximum credit risk exposure borne by the Company is the book value of each financial asset in the balancesheet. The Company does not provide any other guarantee that may expose the Company to credit risk.The accounts receivable from the Company's five largest customers represent 83.50% of the Company's totalaccounts receivable (2023: 62.80%); The other receivables from the five companies with the largest outstandingamounts represent 69.41% of the Company's total other receivables (2023: 74.79%).
② Liquidity risk
Liquidity risk refers to the risk of capital shortage when the Company performs its obligations of settlement bydelivering cash or other financial assets.The Company maintains and monitors cash and cash equivalents deemed adequate by the management duringliquidity risk management to meet the Company's operating needs and reduce the impact of fluctuations in cash
flows. The management of the Company monitors the use of bank loans and ensures compliance with the loanagreements. Meanwhile, the Company obtains commitments from major financial institutions to provide sufficientreserve funds to meet short-term and long-term funding needs.The sources of the Company's working capital include funds generated from operating activities, bank loans andother loans. As of December 31, 2024, the Company's unused bank credit facilities amounted to 5.643 billion yuan(December 31, 2023: 17.203 billion yuan).
③ Market risk
Market risk of financial instruments refers to the risk of fluctuation in fair value or future cash flow of financialinstruments due to the changes in market price, including interest rate risk, exchange rate risk and other price risks.Interest rate riskInterest rate risk is the risk that the fair value or future cash flows of financial instruments will fluctuate due tochanges in market interest rates. Interest rate risk may arise from both recognized interest-bearing financialinstruments and unrecognized financial instruments.The risk of changes in the cash flow of financial instruments caused by changes in interest rates of the Company ismainly related to bank loans with floating interest rates. It is the policy of the Company to maintain floating interestrates on these loans.Sensitivity analysis of interest rate risk:
The sensitivity analysis of interest rate risk is based on the assumption that changes in market interest rates affectinterest income or expenses on variable-rate financial instruments.The Company had no interest-bearing debts such as bank loans as of December 31, 2024.Exchange rate riskExchange rate risk refers to the risk of fluctuation in fair value or future cash flow of financial instruments due tochanges in foreign exchange rates. Exchange rate risk may come from financial instruments denominated in aforeign currency other than the recording currency.The Company's foreign exchange risk exposure is primarily related to the euro. Except for assets held by subsidiariesestablished in Austria, Tanzania, and South Africa that are denominated in euros, shillings, and rand, respectively,the Company's main business activities are priced and settled in CNY. The balance of Company's assets andliabilities were all in CNY as of December 31, 2024, except a small amount of monetary capital including thebalance in EUR. Therefore, the Company does not believe that the exchange rate risk faced is significant.
(2) Capital management
The Company prepares a capital management policy to ensure the continuous operation of the Company, thusproviding returns to shareholders, benefiting other stakeholders, and maintaining the best capital structure to reducecapital costs.
In order to maintain or adjust the capital structure, the Company may adjust the financing method, adjust the amountof dividends paid to shareholders, return capital to shareholders, issue new shares and other equity instruments, orsell assets to reduce debt.The Company monitors the capital structure based on the asset-liability ratio (i.e. total liabilities divided by totalassets). As at December 31, 2024, the asset-liability ratio of the Company is 63.44% (63.21% at the end of theprevious year).
2. Financial assets
(1) Classification of transfer methods
□Applicable? Not applicable
(2) Financial assets derecognized due to transfer
□Applicable ?Not applicable
(3) Financial assets with continuous involvement in asset transfer
□Applicable ?Not applicable
Other description
XIII. Disclosure of Fair Value
1. Fair value of assets and liabilities measured at fair value at the end of the period
Unit: Yuan
| Item | End-of-period fair value | |||
| Level I fair value measurement | Level II fair value measurement | Level III fair value measurement | Total | |
| I. Ongoing fair value measurement | -- | -- | -- | -- |
| (I) Investment in other equity instruments | 540,066,528.00 | 540,066,528.00 | ||
| Total assets measured at fair value on an ongoing basis | 540,066,528.00 | 540,066,528.00 | ||
| II. Non-ongoing fair value measurement | -- | -- | -- | -- |
2. Basis for determination of market prices for continuous and non-continuous level I measurement items atfair valueQuotations for the same assets or liabilities in active markets (unadjusted).
3. Valuation techniques and qualitative and quantitative information about key parameters of items subjectto continuous and non-continuous level II fair value measurementObservable input values other than market quotations for assets or liabilities in level I are used directly (i.e. price)or indirectly (i.e. derived from price).
4. Valuation techniques and qualitative and quantitative information about key parameters of itemssubject to continuous and non-continuous level III fair value measurementAny input value (non-observable input value) not based on observable market data is used for assets or liabilities.
XIV. Related Parties and Related Party Transactions
1. Parent company of the Company
| Name of Parent Company | Registered address | Nature of Business | Registered Capital | Shareholding Proportion of the Parent Company in the Company | Proportion of Voting Rights of the Parent Company in the Company |
| FAW | Changchun | Production and sales of automobiles and parts | 78 billion yuan | 62.18% | 62.18% |
Description of the parent company of the Company: The ultimate controlling party of the Company is FAWGroup.Other description: The registered capital of the parent company did not change during the reporting period.
2. Subsidiaries of the Company
For details of subsidiaries of the Company, please refer to Article 1 in X "Equity in Other Entities" of Section X"Financial Report".
3. Information on joint ventures and associated enterprises of the CompanyFor details of important joint ventures or associated enterprises of the Company, please refer to Article 2 in X"Equity in Other Entities" of Section X "Financial Report".Other joint ventures or associated enterprises that have related party transactions with the Company in the currentperiod or in the previous period, resulting in balance, are as follows:
| Name of Joint Ventures or Associated Enterprises | Relationship with the Company |
| Sanguard Automobile Insurance Co., Ltd. | Associated enterprise of the Company, the same ultimate controlling party |
| Changchun Automotive Test Center Co., Ltd. | Associated enterprise of the Company, the same ultimate controlling party |
| Changchun Ansteel Jiefang Metal Material Processing & Distribution Co., Ltd. | Associated enterprise of the Company |
| Changchun Wabco Automotive Control System Co., Ltd. | Associated enterprise of the Company |
| Suzhou Zhito Technology Co., Ltd. | Associated enterprise of the Company |
| FAW Changchun Baoyou Jiefang Steel Processing and Distribution Co., Ltd. | Associated enterprise of the Company |
| FAW Jiefang Fujie (Tianjin) Technology Industry Co., Ltd. | Associated enterprise of the Company |
| SmartLink | Associated enterprise of the Company |
| Foshan Diyiyuansu New Energy Technology Co., Ltd. | Associated enterprise of the Company |
| Jiefang Times New Energy Technology Co., Ltd. | Joint venture of the Company |
| Diyi AESC New Energy Power Technology (Wuxi) Co., Ltd. | Associated enterprise of the Company |
Other description:
4. Information on other related parties
| Names Of Other Related Parties | Relationship between Other Related Parties and the Company |
| FAW Bestune Auto Co., Ltd. | The same ultimate controlling party |
| FAW Harbin Light-Automobile Co., Ltd. | The same ultimate controlling party |
| Sanguard Automobile Insurance Co., Ltd. | The same ultimate controlling party |
| FAW Logistics Co., Ltd. | The same ultimate controlling party |
| FAW Logistics (Changchun Lushun) Storage and Transportation Co., Ltd. | The same ultimate controlling party |
| FAW Logistics (Foshan) Co., Ltd. | The same ultimate controlling party |
| FAW Logistics (Qingdao) Co., Ltd. | The same ultimate controlling party |
| FAW (Dalian) International Logistics Co., Ltd. | The same ultimate controlling party |
| FAW Foundry Co., Ltd. | The same ultimate controlling party |
| FAW Forging (Jilin) Co., Ltd. | The same ultimate controlling party |
| FAW Mold Manufacturing Co., Ltd. | The same ultimate controlling party |
| China FAW Group Import & Export Co., Ltd. | The same ultimate controlling party |
| Qiming Information Technology Co., Ltd. | The same ultimate controlling party |
| Dalian Qiming Haitong Information Technology Co., Ltd. | The same ultimate controlling party |
| Jilin Qiming Anxin Information Security Technology Co., Ltd. | The same ultimate controlling party |
| FAW Asset Management Co., Ltd. | The same ultimate controlling party |
| Changchun FAW International Tendering Co., Ltd. | The same ultimate controlling party |
| FAW Zhixing Technology (Nanjing) Co., Ltd. | The same ultimate controlling party |
| Changchun Faw Service Trade Co., Ltd. | The same ultimate controlling party |
| FAW Changchun Automobile Trading Service Co., Ltd. | The same ultimate controlling party |
| Wuxi Sawane Spring Co., Ltd. | The same ultimate controlling party |
| FAW New Energy Vehicle Sales (Shenzhen) Co., Ltd. | The same ultimate controlling party |
| Changchun Automotive Test Center Co., Ltd. | The same ultimate controlling party |
| Hainan Tropical Automobile Test Co., Ltd. | The same ultimate controlling party |
| FAW-Volkswagen Automotive Co., Ltd. | The same ultimate controlling party |
| Changchun FAW Automobile Culture Communication Co., Ltd. | The same ultimate controlling party |
| Changchun FAW International Logistics Co., Ltd. | The same ultimate controlling party |
| FAW Southern (Shenzhen) Technology Development Co., Ltd. | The same ultimate controlling party |
| FAW Equity Investment (Tianjin) Co., Ltd. | The same ultimate controlling party |
| First Automobile Finance Co., Ltd. | The same ultimate controlling party |
| FAW-HONGTA Yunnan Automobile Co., Ltd. | The same ultimate controlling party |
| Cinda FAW Commercial Factoring Co., Ltd. | Other related parties |
| The Ninth Institute of Project Planning & Research of China Machinery Industry (FIPPR) | Other related parties |
| Changchun FAW United Casting Company | Other related parties |
| Changchun Yidong Clutch Co., Ltd. | Other related parties |
| Fawer Auto Parts Co., Ltd. | Other related parties |
| China Unicom Intelligent Network Technology Co., Ltd. | Other related parties |
| Changchun FAWSN Group Co., Ltd. | Other related parties |
| FAW Changchun Communication Technology Co., Ltd. | Other related parties |
| United Fuel Cell System R&D (Beijing) Co., Ltd. | Other related parties |
| Changchun FAWAY Automobile Components Co., Ltd. | Other related parties |
| FAW Jilin Automobile Co., Ltd. | Other related parties |
| Changchun Automotive Economic and Technological Development Zone Environmental Sanitation and Cleaning Co., Ltd. | Other related parties |
| FAW Jingye Engine Co., Ltd. | Other related parties |
| Wuxi CRRC New Energy Automobile Co., Ltd. | Other related parties |
| FAW Changchun Comprehensive Utilization Co., Ltd. | Other related parties |
| FAW Changchun Industrial Shuixing Rubber and Plastic Products Co., Ltd. | Other related parties |
| FAW Changchun Yanfeng Visteon Electronics Co., Ltd. | Other related parties |
| FAW Changchun Industrial Sodis Management Service Co., Ltd. | Other related parties |
| Shandong Pengxiang Automobile Co., Ltd. | Other related parties |
| FAW Changchun Tianqi Process Equipment Engineering Co., Ltd. | Other related parties |
| Hongqi Intelligent Mobility Technology (Beijing) Co., Ltd. | Other related parties |
| Grammer Vehicle Parts (Harbin) Co., Ltd. | Other related parties |
| Grammer Vehicle Parts (Qingdao) Co., Ltd. | Other related parties |
| Jilin Checheng Garden Hotel Co., Ltd. | Other related parties |
| Changchun Sodexo Management Service Co., Ltd. | Other related parties |
Other description:
5. Related transactions
(1) Related transactions of purchasing or selling goods and providing or receiving labor servicesStatement of Goods Purchase/Reception of Labor Services
Unit: Yuan
| Related Parties | Content of Related Transaction | Amount Incurred in Current Period | Approved Transaction Amount | Is the Transaction Amount Exceeded | Amount Incurred in the Previous Period |
| China FAW Group Import & Export Co., Ltd. | Goods purchase and reception of labor services | 48,192,920.53 | 375,350,000.00 | No | 25,285,761.48 |
| Fawer Auto Parts Co., Ltd. | Goods purchase and reception of labor services | 1,393,565,622.28 | 1,972,380,000.00 | No | 1,659,607,907.68 |
| FAW Foundry Co., Ltd. | Goods purchase | 657,358,784.92 | 931,140,000.00 | No | 719,806,260.27 |
| and reception of labor services | |||||
| Changchun FAWSN Group Co., Ltd. | Goods purchase and reception of labor services | 511,097,465.83 | 604,920,000.00 | No | 477,587,989.87 |
| FAW Changchun Baoyou Jiefang Steel Processing and Distribution Co., Ltd. | Goods purchase and reception of labor services | 369,869,782.69 | 502,720,000.00 | No | 369,253,850.87 |
| FAW Forging (Jilin) Co., Ltd. | Goods purchase and reception of labor services | 365,403,123.07 | 557,310,000.00 | No | 457,919,812.83 |
| Changchun Ansteel Jiefang Metal Material Processing & Distribution Co., Ltd. | Goods purchase and reception of labor services | 358,054,094.91 | 516,630,000.00 | No | 377,742,520.02 |
| Changchun FAWAY Automobile Components Co., Ltd. | Goods purchase and reception of labor services | 339,991,796.88 | 585,000,000.00 | No | 468,240,684.46 |
| Shandong Pengxiang Automobile Co., Ltd. | Goods purchase and reception of labor services | 304,925,953.37 | 723,730,000.00 | No | 639,215,809.17 |
| China FAW Co., Ltd. | Goods purchase and reception of services, fuel and power | 252,730,203.20 | 460,000,000.00 | No | 334,754,422.65 |
| FAW Logistics | Goods | 241,776,955.70 | 426,220,000.00 | No | 312,669,087.26 |
| (Qingdao) Co., Ltd. | purchase and reception of labor services | ||||
| SmartLink | Goods purchase and reception of labor services | 220,434,387.96 | 302,560,000.00 | No | 201,735,640.71 |
| FAW Logistics Co., Ltd. | Goods purchase and reception of labor services | 219,212,318.30 | 495,900,000.00 | No | 382,993,131.18 |
| Grammer Vehicle Parts (Harbin) Co., Ltd. | Goods purchase and reception of labor services | 197,447,028.27 | 284,590,000.00 | No | 229,686,526.22 |
| The Ninth Institute of Project Planning & Research of China Machinery Industry (FIPPR) | Goods purchase and reception of labor services | 186,538,068.22 | 235,580,000.00 | No | 204,289,200.11 |
| Changchun Yidong Clutch Co., Ltd. | Goods purchase and reception of labor services | 183,035,565.44 | 250,180,000.00 | No | 200,320,876.60 |
| Changchun Automotive Test Center Co., Ltd. | Goods purchase and reception of labor services | 82,265,371.58 | 119,170,000.00 | No | 120,524,077.09 |
| Qiming Information Technology Co., Ltd. | Goods purchase and reception of labor services | 75,209,697.68 | 194,010,000.00 | No | 157,514,667.25 |
| FAW Harbin Light-Automobile Co., Ltd. | Goods purchase | 66,731,302.84 | 138,020,000.00 | No | 109,010,564.50 |
| and reception of labor services | |||||
| FAW Mold Manufacturing Co., Ltd. | Goods purchase and reception of labor services | 44,109,513.62 | 60,000,000.00 | No | 14,470,053.09 |
| FAW Logistics (Changchun Lushun) Storage and Transportation Co., Ltd. | Goods purchase and reception of labor services | 40,700,350.99 | 50,000,000.00 | No | 75,055,638.23 |
| Changchun Wabco Automotive Control System Co., Ltd. | Goods purchase and reception of labor services | 40,435,106.61 | 50,000,000.00 | No | 50,209,527.83 |
| FAW Jilin Automobile Co., Ltd. | Goods purchase and reception of labor services | 29,630,896.32 | 251,930,000.00 | No | 17,773,899.93 |
| FAW (Dalian) International Logistics Co., Ltd. | Goods purchase and reception of labor services | 25,760,070.64 | 50,000,000.00 | No | 22,123,885.88 |
| Sanguard Automobile Insurance Co., Ltd. | Goods purchase and reception of labor services | 23,231,707.86 | 30,000,000.00 | No | 23,753,449.15 |
| Suzhou Zhito Technology Co., Ltd. | Goods purchase and reception of labor services | 17,926,888.44 | 30,000,000.00 | No | 1,769,496.50 |
| China FAW Group Co., Ltd. | Goods purchase and | 11,667,626.56 | 30,000,000.00 | No | 13,627,907.80 |
| reception of labor services | |||||
| FAW Changchun Automobile Trading Service Co., Ltd. | Goods purchase and reception of labor services | 6,998,968.90 | 8,000,000.00 | No | 9,359,470.16 |
| Wuxi Sawane Spring Co., Ltd. | Goods purchase and reception of labor services | 5,739,515.66 | 8,000,000.00 | No | 5,795,996.05 |
| FAW Changchun Communication Technology Co., Ltd. | Goods purchase and reception of labor services | 5,666,483.91 | 8,000,000.00 | No | 36,244,311.07 |
| FAW Changchun Comprehensive Utilization Co., Ltd. | Goods purchase and reception of labor services | 5,249,146.17 | 8,000,000.00 | No | 6,269,917.66 |
| Hainan Tropical Automobile Test Co., Ltd. | Goods purchase and reception of labor services | 4,609,624.31 | 8,000,000.00 | No | 4,471,020.41 |
| Changchun FAW United Casting Company | Goods purchase and reception of labor services | 4,309,336.49 | 8,000,000.00 | No | 1,561,241.13 |
| Hongqi Intelligent Mobility Technology (Beijing) Co., Ltd. | Goods purchase and reception of labor services | 4,233,166.24 | 6,000,000.00 | No | 1,901,350.79 |
| FAW-HONGTA Yunnan Automobile Co., Ltd. | Goods purchase and reception | 3,385,823.36 | 6,000,000.00 | No | 3,333,481.77 |
| of labor services | |||||
| Wuxi CRRC New Energy Automobile Co., Ltd. | Goods purchase and reception of labor services | 2,216,489.15 | 6,000,000.00 | No | 2,951,329.20 |
| Changchun FAW International Logistics Co., Ltd. | Goods purchase and reception of labor services | 2,042,163.88 | 6,000,000.00 | No | |
| Changchun Sodexo Management Service Co., Ltd. | Goods purchase and reception of labor services | 1,580,391.34 | 3,000,000.00 | No | |
| FAW Asset Management Co., Ltd. | Goods purchase and reception of labor services | 1,445,995.65 | 3,000,000.00 | No | 1,350,856.25 |
| Changchun Automotive Economic and Technological Development Zone Environmental Sanitation and Cleaning Co., Ltd. | Goods purchase and reception of labor services | 1,232,310.68 | 3,000,000.00 | No | 2,480,191.44 |
| Dalian Qiming Haitong Information Technology Co., Ltd. | Goods purchase and reception of labor services | 434,640.55 | 1,900,000.00 | No | 679,245.27 |
| FAW Zhixing Technology (Nanjing) Co., Ltd. | Goods purchase and reception of labor services | 393,773.74 | 1,000,000.00 | No | 157,699.08 |
| FAW Changchun Yanfeng Visteon Electronics Co., Ltd. | Goods purchase and reception | 217,579.40 | 1,000,000.00 | No | 530,977.43 |
| of labor services | |||||
| FAW Southern (Shenzhen) Technology Development Co., Ltd. | Goods purchase and reception of labor services | 149,355.26 | 1,000,000.00 | No | |
| FAW Logistics (Foshan) Co., Ltd. | Goods purchase and reception of labor services | 7,650.00 | 1,000,000.00 | No | 4,050.00 |
| Changchun FAW Automobile Culture Communication Co., Ltd. | Goods purchase and reception of labor services | 1,000,000.00 | No | 82,355.84 | |
| Changchun FAW International Tendering Co., Ltd. | Goods purchase and reception of labor services | 4,339.64 | 1,000,000.00 | No | 352,288.66 |
| Jilin Checheng Garden Hotel Co., Ltd. | Goods purchase and reception of labor services | 2,897.94 | 1,000,000.00 | No | |
| Grammer Vehicle Parts (Qingdao) Co., Ltd. | Goods purchase and reception of labor services | ||||
| FAW Changchun Industrial Sodis Management Service Co., Ltd. | Goods purchase and reception of labor services | 2,981,286.13 | |||
| Changchun Faw Service Trade Co., Ltd. | Goods purchase and reception of labor | 1,646,126.01 |
| services | |||||
| FAW Changchun Tianqi Process Equipment Engineering Co., Ltd. | Goods purchase and reception of labor services | 1,575,945.99 | |||
| Jilin Qiming Anxin Information Security Technology Co., Ltd. | Goods purchase and reception of labor services | 208,000.00 | |||
| China Unicom Intelligent Network Technology Co., Ltd. | Goods purchase and reception of labor services | 65,672.64 |
Statement of Goods Sales/Rendering of Services
Unit: Yuan
| Related Parties | Content of Related Transaction | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| China FAW Group Import & Export Co., Ltd. | Sales of goods | 12,208,203,691.11 | 11,568,030,597.11 |
| FAW Jiefang Fujie (Tianjin) Technology Industry Co., Ltd. | Sales of goods | 1,070,399,702.99 | 2,446,872,744.97 |
| Jiefang Times New Energy Technology Co., Ltd. | Sales of goods | 214,999,831.32 | 298,543,205.58 |
| FAW Changchun Comprehensive Utilization Co., Ltd. | Sales of goods | 181,631,688.30 | 205,149,077.38 |
| Changchun Faw Service Trade Co., Ltd. | Sales of goods | 170,491,057.39 | 17,192,553.61 |
| China FAW Group Co., Ltd. | Sales of goods | 62,262,063.78 | |
| Suzhou Zhito Technology Co., Ltd. | Sales of goods | 32,391,918.11 | 8,676,773.64 |
| FAW Harbin Light-Automobile Co., Ltd. | Sales of goods | 24,481,436.37 | 230,480,872.70 |
| FAW Asset Management Co., Ltd. | Sales of goods | 20,944,655.05 | 8,792,475.43 |
| SmartLink | Sales of goods | 8,196,340.81 | 107,773,406.53 |
| China FAW Co., Ltd. | Sales of goods | 4,753,955.93 | 17,191,730.77 |
| FAW Logistics (Qingdao) Co., Ltd. | Sales of goods | 4,764,279.24 | 141,854.72 |
| FAW Foundry Co., Ltd. | Sales of goods | 4,233,103.98 | 11,614.68 |
| Grammer Vehicle Parts (Harbin) Co., Ltd. | Sales of goods | 2,552,270.00 | 106,470.00 |
| Changchun Yidong Clutch Co., Ltd. | Sales of goods | 1,709,226.48 | 2,620,014.69 |
| Fawer Auto Parts Co., Ltd. | Sales of goods | 1,579,535.98 | 719,960.37 |
| FAW Logistics Co., Ltd. | Sales of goods | 928,362.64 | 218,688.15 |
| United Fuel Cell System R&D (Beijing) Co., Ltd. | Sales of goods | 563,852.74 | 883,287.65 |
| Shandong Pengxiang Automobile Co., Ltd. | Sales of goods | 499,679.96 | 1,310,470.28 |
| Cinda FAW Commercial Factoring Co., Ltd. | Sales of goods | 283,354.40 | 189,390.03 |
| Qiming Information Technology Co., Ltd. | Sales of goods | 181,862.73 | 1,730,374.32 |
| FAW-HONGTA Yunnan Automobile Co., Ltd. | Sales of goods | 122,822.65 | |
| Changchun FAWSN Group Co., Ltd. | Sales of goods | 78,102.10 | 6,086.49 |
| FAW Equity Investment (Tianjin) Co., Ltd. | Sales of goods | 75,670.00 | |
| Foshan Diyiyuansu New Energy Technology Co., Ltd. | Sales of goods | 70,642.95 | 80,254.07 |
| FAW Changchun Communication Technology Co., Ltd. | Sales of goods | 40,366.97 | 93,577.97 |
| FAW Changchun Yanfeng Visteon Electronics Co., Ltd. | Sales of goods | 5,136.78 | 7,562.98 |
| Changchun Automotive Test Center Co., Ltd. | Sales of goods | 2,174.19 | 2,443,809.58 |
| Changchun FAWAY Automobile Components Co., Ltd. | Sales of goods | 7,673.40 | |
| FAW Changchun Baoyou Jiefang Steel Processing and Distribution Co., Ltd. | Sales of goods | 1,056,155.96 | |
| FAW Changchun Automobile Trading Service Co., Ltd. | Sales of goods | 15,048,966.05 | |
| FAW Logistics (Changchun Lushun) Storage and Transportation Co., Ltd. | Sales of goods | 63,448.12 | |
| FAW Forging (Jilin) Co., Ltd. | Sales of goods | 57,933.33 | |
| Wuxi Sawane Spring Co., Ltd. | Sales of goods | 14,150.94 | |
| FAW Bestune Auto Co., Ltd. | Sales of goods | 10,211.32 | |
| FAW Jilin Automobile Co., Ltd. | Sales of goods | 1,938.32 |
Description of related transactions of purchasing or selling goods and providing or receiving labor services:
(2) Related lease
The Company, as the lessor:
Unit: Yuan
| Name of Lessee | Type of Leased Assets | Lease Income Recognized in the Current Period | Lease Income Recognized in the Previous Period |
| Changchun FAWAY Automobile Components Co., Ltd. | Houses and buildings, equipment | 7,779,052.50 | |
| Changchun Automotive Test Center Co., Ltd. | Houses, buildings and land | 6,000,000.00 | 1,288,392.96 |
| FAW Changchun Baoyou Jiefang Steel Processing and Distribution Co., Ltd. | Houses and Buildings | 1,059,049.54 | 1,056,155.96 |
| China FAW Co., Ltd. | Houses and Buildings | 774,875.72 | 1,017,306.92 |
| Shandong Pengxiang Automobile Co., Ltd. | Houses and Buildings | 772,040.36 | 767,705.50 |
| Fawer Auto Parts Co., Ltd. | Houses and Buildings | 395,405.50 | 395,405.52 |
| FAW Changchun Communication Technology Co., Ltd. | Houses, buildings and land | 44,036.69 | 93,577.97 |
| Foshan Diyiyuansu New Energy Technology Co., Ltd. | Houses and Buildings | 48,441.12 | 75,391.68 |
The Company, as the lessee:
Unit: Yuan
| Name of lessor | Type of Leased Assets | Rental expenses for simplified short-term leases or low-value asset leases | Variable lease payments not included in the measurement of lease liabilities | Rent Paid | Interest Expense on Lease Liabilities Incurred | Increased Right-of-use Assets | |||||
| Amount Incurred in Current Period | Amount Incurred in the Previous Period | Amount Incurred in Current Period | Amount Incurred in the Previous Period | Amount Incurred in Current Period | Amount Incurred in the Previous Period | Amount Incurred in Current Period | Amount Incurred in the Previous Period | Amount Incurred in Current Period | Amount Incurred in the Previous Period | ||
| China FAW Co., Ltd. | Houses and Buildings | 5,439,057.94 | 11,954,237.52 | 154,694.08 | 623,377.44 | 629,506.67 | |||||
| China FAW Group Co., Ltd. | Land | 4,265,876.00 | 3,913,647.70 | 114,069.31 | 302,739.30 | ||||||
| Changchun Automotive Test Center Co., Ltd. | Houses and Buildings | 2,335,846.88 | 23,051.33 | 93,731.36 | |||||||
Description of related leases
(3) Remuneration of key management personnel
Unit: Yuan
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Remuneration of key management personnel | 12,319,100.00 | 16,025,900.00 |
(4) Other related transactions
① Interest income and expenses Unit: Yuan
| Related Parties | Transaction content | Amount in the current period | Amount of the Previous Period |
| First Automobile Finance Co., Ltd. | Interest income | 137,754,954.50 | 96,959,146.12 |
② Equity investments Unit: Yuan
| Related Parties | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| China FAW Group Import & Export Co., Ltd. | 385,749,224.63 | |
| Changchun Automotive Test Center Co., Ltd. | 670,872,897.94 |
③ Equity sales Unit: Yuan
| Related Parties | Amount Incurred in Current Period | Description |
| FAW | 4,357,068,905.33 | The Company signed an Equity Transfer Agreement with FAW Co., Ltd. to sell its 21.8393% equity stake in First Automobile Finance Co., Ltd. |
④ Other financial services Unit: Yuan
| Related Parties | Transaction content | Amount in the current period | Amount of the Previous Period |
| First Automobile Finance Co., Ltd. | Interest expense | 494,444.40 |
6. Receivables and payables of related parties
(1) Receivables
Unit: Yuan
| Project name | Related Parties | Ending balance | Opening balance | ||
| Book balance | Provision for Bad Debts | Book balance | Provision for Bad Debts | ||
| Accounts receivable | China FAW Group Import & Export Co., Ltd. | 5,859,058,467.14 | 7,201,938.50 | 565,602,786.91 | 1,438,890.29 |
| Accounts receivable | Jiefang Times New Energy Technology | 48,121,630.43 | 741,664.91 | 193,088,998.31 | 743,368.60 |
| Co., Ltd. | |||||
| Accounts receivable | FAW-HONGTA Yunnan Automobile Co., Ltd. | 43,170,001.84 | 16,226,515.53 | 54,814,238.73 | 11,781,810.57 |
| Accounts receivable | China FAW Group Co., Ltd. | 18,690,000.00 | 52,332.00 | ||
| Accounts receivable | FAW Asset Management Co., Ltd. | 5,535,503.14 | 460,080.44 | 454,999.94 | 454,999.94 |
| Accounts receivable | FAW Harbin Light-Automobile Co., Ltd. | 5,280,362.59 | 14,785.02 | 260,081,914.30 | 261,998.72 |
| Accounts receivable | FAW Jingye Engine Co., Ltd. | 1,820,957.23 | 1,820,958.23 | 1,820,957.23 | 1,820,957.23 |
| Accounts receivable | China FAW Co., Ltd. | 215,088.20 | 64.53 | 2,150,000.00 | 10,320.00 |
| Accounts receivable | Grammer Vehicle Parts (Harbin) Co., Ltd. | 128,609.10 | 360.11 | 116,052.30 | 557.05 |
| Accounts receivable | Shandong Pengxiang Automobile Co., Ltd. | 98,139.49 | 274.79 | 13,086.18 | 62.81 |
| Accounts receivable | Fawer Auto Parts Co., Ltd. | 113,274.44 | 317.17 | ||
| Accounts receivable | FAW Changchun Yanfeng Visteon Electronics Co., Ltd. | 2,722.49 | 7.62 | ||
| Accounts receivable | SmartLink | 5,106,986.20 | 5,106.99 | ||
| Accounts receivable | United Fuel Cell System R&D (Beijing) Co., Ltd. | 210,717.10 | 1,011.44 | ||
| Accounts receivable | Qiming Information Technology Co., Ltd. | 131,897.06 | 633.11 | ||
| Accounts receivable | FAW Changchun Comprehensive Utilization Co., | 24,427.35 | 117.25 |
| Ltd. | |||||
| Accounts receivable | Changchun Yidong Clutch Co., Ltd. | 15,885.93 | 76.25 | ||
| Accounts receivable | Changchun FAWAY Automobile Components Co., Ltd. | 8,670.94 | 41.62 | ||
| Prepayments | FAW Mold Manufacturing Co., Ltd. | 38,487,775.26 | 12,268,345.36 | ||
| Prepayments | China FAW Group Import & Export Co., Ltd. | 10,406,342.22 | 291,602,226.68 | ||
| Prepayments | Qiming Information Technology Co., Ltd. | 266,654.10 | 2,083,957.10 | ||
| Prepayments | The Ninth Institute of Project Planning & Research of China Machinery Industry (FIPPR) | 267,810.00 | 600,000.00 | ||
| Prepayments | FAW Jilin Automobile Co., Ltd. | 12,256,098.84 | |||
| Prepayments | Fawer Auto Parts Co., Ltd. | 1,718.69 | |||
| Prepayments | Changchun Automotive Test Center Co., Ltd. | 26,426,263.51 | |||
| Prepayments | SmartLink | 5,473,400.00 | |||
| Prepayments | FAW Foundry Co., Ltd. | 20,532.03 | |||
| Other receivables | First Automobile Finance Co., Ltd. | 156,960,226.90 | |||
| Other receivables | FAW Jiefang Fujie (Tianjin) Technology Industry Co., | 747,434.87 |
| Ltd. | |||||
| Other receivables | FAW Logistics Co., Ltd. | 719,064.22 | 795.61 | 55,370.79 | 1,688.81 |
| Other receivables | China FAW Group Import & Export Co., Ltd. | 605,190.66 | 60.52 | ||
| Other receivables | FAW Jilin Automobile Co., Ltd. | 538,200.00 | 538,200.00 | 538,200.00 | 538,200.00 |
| Other receivables | Changchun Yidong Clutch Co., Ltd. | 144,919.63 | 144,919.63 | ||
| Other receivables | FAW Forging (Jilin) Co., Ltd. | 25,771.06 | 412.34 | 23,548.67 | 718.23 |
| Other receivables | FAW Logistics (Changchun Lushun) Storage and Transportation Co., Ltd. | 2,115.85 | 33.85 | 1,219.65 | 37.20 |
| Other receivables | SmartLink | 7,597,737.61 | 231,731.00 | ||
| Other receivables | FAW Asset Management Co., Ltd. | 3,124,921.61 | 93,785.11 | ||
| Other receivables | FAW Mold Manufacturing Co., Ltd. | 19,983.53 | 609.50 |
(2) Payables
Unit: Yuan
| Project name | Related Parties | Ending book balance | Beginning Book Balance |
| Accounts payable | China FAW Group Import & Export Co., Ltd. | 1,898,694,473.44 | 1,284,719,375.59 |
| Accounts payable | Fawer Auto Parts Co., Ltd. | 355,988,850.46 | 321,637,528.00 |
| Accounts payable | FAW Foundry Co., Ltd. | 91,061,337.27 | 44,286,964.68 |
| Accounts payable | Changchun FAWAY Automobile Components Co., Ltd. | 88,446,817.25 | 142,502,192.54 |
| Accounts payable | Changchun FAWSN Group Co., Ltd. | 85,321,175.51 | 33,612,267.32 |
| Accounts payable | FAW Forging (Jilin) Co., Ltd. | 52,222,805.16 | 76,891,932.23 |
| Accounts payable | Shandong Pengxiang Automobile Co., Ltd. | 50,367,519.94 | 95,007,782.33 |
| Accounts | Changchun Yidong Clutch Co., Ltd. | 38,821,930.69 | 52,247,878.28 |
| payable | |||
| Accounts payable | Grammer Vehicle Parts (Harbin) Co., Ltd. | 28,653,515.03 | 10,120,909.07 |
| Accounts payable | SmartLink | 28,517,491.67 | 18,624,052.12 |
| Accounts payable | FAW Harbin Light-Automobile Co., Ltd. | 19,881,614.85 | 65,513,752.89 |
| Accounts payable | China FAW Co., Ltd. | 13,917,957.95 | 29,476,172.06 |
| Accounts payable | Changchun Automotive Test Center Co., Ltd. | 13,024,962.13 | 6,851,687.59 |
| Accounts payable | FAW Logistics Co., Ltd. | 12,125,258.95 | 80,290,107.51 |
| Accounts payable | Qiming Information Technology Co., Ltd. | 12,060,584.46 | 32,864,573.86 |
| Accounts payable | FAW Logistics (Changchun Lushun) Storage and Transportation Co., Ltd. | 11,418,896.25 | 8,629,745.71 |
| Accounts payable | Suzhou Zhito Technology Co., Ltd. | 5,359,358.44 | 10,237.07 |
| Accounts payable | FAW (Dalian) International Logistics Co., Ltd. | 2,913,425.11 | 6,942,812.41 |
| Accounts payable | China FAW Group Co., Ltd. | 2,167,054.00 | 2,212,607.00 |
| Accounts payable | Changchun FAW International Logistics Co., Ltd. | 2,164,693.74 | |
| Accounts payable | FAW Changchun Automobile Trading Service Co., Ltd. | 1,730,558.14 | 2,609,565.02 |
| Accounts payable | Wuxi Sawane Spring Co., Ltd. | 1,561,718.65 | 377,207.77 |
| Accounts payable | Hainan Tropical Automobile Test Co., Ltd. | 1,297,348.12 | 1,625,476.03 |
| Accounts payable | Changchun FAW United Casting Company | 925,760.20 | 39,972.52 |
| Accounts payable | FAW Changchun Comprehensive Utilization Co., Ltd. | 793,257.18 | 2,361,868.60 |
| Accounts payable | Sanguard Automobile Insurance Co., Ltd. | 767,333.24 | 2,822,789.08 |
| Accounts payable | FAW Logistics (Qingdao) Co., Ltd. | 767,333.24 | 104,662,732.36 |
| Accounts payable | FAW Changchun Communication Technology Co., Ltd. | 570,673.57 | 61,517.85 |
| Accounts payable | Changchun Sodexo Management Service Co., Ltd. | 364,975.90 | |
| Accounts payable | FAW Mold Manufacturing Co., Ltd. | 265,639.24 | 1,133,423.20 |
| Accounts payable | The Ninth Institute of Project Planning & Research of China Machinery Industry (FIPPR) | 211,295.00 | |
| Accounts payable | FAW Zhixing Technology (Nanjing) Co., Ltd. | 162,764.38 | 16,200.00 |
| Accounts payable | Hongqi Intelligent Mobility Technology (Beijing) Co., Ltd. | 161,683.99 | 326,523.80 |
| Accounts payable | FAW Changchun Baoyou Jiefang Steel Processing and Distribution Co., Ltd. | 117,302.64 | 117,304.27 |
| Accounts payable | FAW Changchun Yanfeng Visteon Electronics Co., Ltd. | 113,757.79 | 51,837.99 |
| Accounts payable | FAW Asset Management Co., Ltd. | 95,370.72 | 226,180.17 |
| Accounts payable | Changchun Automotive Economic and Technological Development Zone Environmental Sanitation and Cleaning Co., Ltd. | 74,164.68 | 451,864.50 |
| Accounts payable | FAW Logistics (Foshan) Co., Ltd. | 8,109.00 | 4,293.00 |
| Accounts payable | Changchun Wabco Automotive Control System Co., Ltd. | 2,394.60 | 5,414,883.93 |
| Accounts payable | Dalian Qiming Haitong Information Technology Co., Ltd. | 240,000.00 | |
| Accounts payable | China Unicom Intelligent Network Technology Co., Ltd. | 30,249.00 | |
| Accounts payable | Changchun FAW International Tendering Co., Ltd. | 26,778.00 | |
| Accounts payable | FAW Changchun Industrial Shuixing Rubber and Plastic Products Co., Ltd. | 15,197.33 | |
| Accounts payable | FAW Changchun Tianqi Process Equipment Engineering Co., Ltd. | 178,081.90 | |
| Accounts received in advance | Shandong Pengxiang Automobile Co., Ltd. | 210,381.00 | 210,381.00 |
| Accounts received in advance | Fawer Auto Parts Co., Ltd. | 107,748.00 | 107,748.00 |
| Accounts received in advance | FAW Changchun Communication Technology Co., Ltd. | 17,431.21 | |
| Contract liabilities | FAW Jiefang Fujie (Tianjin) Technology Industry Co., Ltd. | 534,710,214.15 | 309,314,130.28 |
| Contract liabilities | Changchun Faw Service Trade Co., Ltd. | 37,006,295.80 | 28,117,018.95 |
| Contract liabilities | China FAW Group Import & Export Co., Ltd. | 1,630,202.78 | 4,240,039.72 |
| Contract liabilities | FAW Changchun Comprehensive Utilization Co., Ltd. | 1,060,984.43 | 2,463,687.98 |
| Contract liabilities | Suzhou Zhito Technology Co., Ltd. | 334,399.64 | 334,400.00 |
| Contract liabilities | Shandong Pengxiang Automobile Co., Ltd. | 117,868.88 | 492,721.62 |
| Contract liabilities | FAW Changchun Automobile Trading Service Co., Ltd. | 26,830.00 | 26,830.00 |
| Contract liabilities | FAW Asset Management Co., Ltd. | 26,613.23 | |
| Contract liabilities | FAW New Energy Vehicle Sales (Shenzhen) Co., Ltd. | 8,060.00 | |
| Other payables | The Ninth Institute of Project Planning & Research of China Machinery Industry (FIPPR) | 48,072,993.31 | 94,265,971.56 |
| Other payables | FAW Mold Manufacturing Co., Ltd. | 41,077,996.08 | 17,227,387.87 |
| Other payables | China FAW Group Import & Export Co., Ltd. | 178,714,672.05 | 10,022,320.82 |
| Other payables | Fawer Auto Parts Co., Ltd. | 18,670,420.82 | 10,095,378.21 |
| Other payables | Qiming Information Technology Co., Ltd. | 16,459,597.55 | 21,046,660.22 |
| Other payables | Changchun Automotive Test Center Co., Ltd. | 2,335,846.87 | 26,847,716.00 |
| Other payables | China FAW Co., Ltd. | 3,964,596.49 | 95,802,940.17 |
| Other payables | SmartLink | 2,021,250.49 | 1,876,477.00 |
| Other payables | Shandong Pengxiang Automobile Co., Ltd. | 900,000.00 | 1,040,000.00 |
| Other payables | FAW Changchun Automobile Trading Service Co., Ltd. | 680,077.79 | |
| Other payables | FAW Changchun Communication Technology Co., Ltd. | 407,106.82 | 3,062,361.99 |
| Other payables | Changchun Yidong Clutch Co., Ltd. | 144,919.63 | |
| Other payables | Hongqi Intelligent Mobility Technology (Beijing) Co., Ltd. | 19,498.41 | |
| Other payables | Suzhou Zhito Technology Co., Ltd. | 10,000.00 | 10,000.00 |
| Other payables | FAW-HONGTA Yunnan Automobile Co., Ltd. | 7,841.86 | 134,832,393.40 |
| Other payables | Sanguard Automobile Insurance Co., Ltd. | 77,800.00 | |
| Other payables | Changchun Faw Service Trade Co., Ltd. | 320,000.00 | |
| Other payables | FAW Harbin Light-Automobile Co., Ltd. | 8,241,822.24 | |
| Other payables | FAW Asset Management Co., Ltd. | 3,925.62 |
XV. Share-based Payment
1. General conditions of share-based payments
?Applicable □Not applicable
Unit: Yuan
| Grantee category | Shares granted in the current period | Shares exercised in the current period | Shares unlocked in the current period | Shares invalidated in the current period | ||||
| Qty. | Amount | Qty. | Amount | Qty. | Amount | Qty. | Amount | |
| Manager | 12,621,954.00 | 79,884,645.54 | ||||||
| Total | 12,621,954.00 | 79,884,645.54 | ||||||
Stock options or other equity instruments outstanding at the end of the current period
□Applicable ?Not applicable
Other description:
2. Equity-settled share-based payment
?Applicable □Not applicable
Unit: Yuan
| Measures for determining the fair value of equity instruments on the grant date | Restricted shares are determined according to the closing price on the grant date, and stock options are determined according to the B-S option pricing model. |
| Important parameters of fair value of equity instruments on the grant date | Quoted prices in active markets |
| Basis for determining the number of exercisable equity instruments | The Company determines the number according to the Proposal on the Restricted Share Incentive Plan of FAW JIEFANG GROUP CO., LTD. (Draft) and Its Summary, the Proposal on the Regulations for the Implementation Assessment of Restricted Share Incentive Plan of FAW JIEFANG GROUP CO., LTD., the Proposal on the Regulations for Restricted Share Incentive of FAW JIEFANG GROUP CO., LTD., and the Proposal on Requesting the Shareholders' Meeting to Authorize the Board of Directors to Handle Matters Related to the Company's Restricted Share Incentive Plan. |
| Reasons for significant differences between current estimates and previous estimates | N/A |
| Aggregate amount of equity-settled share-based payment charged to the capital reserve | 50,594,181.86 |
| Total expenses recognized by equity-settled share-based payment in the current period | -2,522,576.58 |
Other description:
3. Cash-settled share-based payment
□Applicable ?Not applicable
4. Share-based payment expenses in the current period
?Applicable □Not applicable
Unit: Yuan
| Grantee category | Equity-settled share-based payment expenses | Cash-settled share-based payment expenses |
| Manager | -2,522,576.58 | |
| Total | -2,522,576.58 |
Other description:
XVI. Commitments and Contingencies
1. Important commitments
Important commitments existing on the balance sheet dateThe Company has no other commitments that should be disclosed as of December 31, 2024.
2. Contingencies
(1) Important contingencies existing on the balance sheet date
Contingent liabilities arising from pending litigation and arbitration and their financial impact
Unit: Yuan
| Plaintiff | Defendant | Cause of Action | Court of Acceptance | Subject Amount | Case Progress |
| Sun Zhongwu | Zaozhuang Jujin Vehicle Co., Ltd., and China FAW Group Co., Ltd. | Product liability cases | Yicheng District People's Court of Zaozhuang City | 1,580,000.00 | First instance |
| Zhao Qianqian, Yu Xiufeng, Li Shunxi, Li Mengyuan | Jilin Anrui Lifting Transportation Co., Ltd., Shandong Yongseng Rubber Group Co., Ltd., and China FAW Group Co., Ltd. | Product liability dispute | Gaobeidian Municipal People's Court of Hebei Province | 1,289,951.00 | First instance |
| Liling Huatong Logistics Transportation Co., Ltd., Feng Xianwei, Liu Mu, Feng Xueren | China FAW Group Co., Ltd., Changsha FAW Automobile Co., Ltd., Asia-Pacific Property Insurance Co., Ltd. Hunan Branch | Product liability dispute | Changsha County People's Court of Hunan Province | 1,033,154.64 | First instance |
| Plaintiff | Defendant | Cause of Action | Court of Acceptance | Subject Amount | Case Progress |
| Dubon Property Insurance Co., Ltd. Qingbaijiang Branch | China FAW Group Co., Ltd. Sichuan Feichi Vehicle Co., Ltd. | Product liability cases | Longmatan District People's Court of Luzhou City | 1,011,245.00 | First instance |
As of December 31, 2024, the Company has no contingencies other than those mentioned above that should bedisclosed.
(2) Explanation is also required when the Company has no important contingencies to be disclosedThe Company has no important contingencies to be disclosed.
(3) Other information required by the industry information disclosure guidelinesThe Company shall meet the disclosure requirements for the automobile manufacturing industry specified in the"No.3 Guideline of Shenzhen Stock Exchange on Self-Regulatory Supervision of Listed Companies - IndustryInformation Disclosure."The sales amount of mortgage sales, financial leases and other modes account for more than 10% of the operatingincome.
□Applicable ?Not applicable
The Company's guarantee to dealer
□Applicable? Not applicable
XVII. Events after the Balance Sheet Date
1. Profit distribution
| Dividends to be distributed per 10 shares (Yuan) | 0.50 |
| Dividends per 10 shares declared upon deliberation and approval (Yuan) | 0.50 |
| Profit distribution scheme | Based on the 4,922,371,176 shares of the Company, a cash dividend of 0.5 yuan (tax inclusive) will be distributed to all shareholders for every 10 shares they hold; the cash dividends to be distributed will reach 246,118,558.80 yuan (tax inclusive), and the remaining undistributed profits will be carried forward to the next accounting year. The Company does not convert its capital reserves into share capital. For any change to the total share capital of the Company due to the equity incentive plan before the implementation of the distribution plan, the cash dividend of |
0.50 yuan (tax inclusive) will be distributed to allshareholders per 10 shares based on the total share capitalregistered on the date of record when the profit distributionplan is implemented in the future, and the specific amountwill be subject to the actual distribution.
This distribution plan is subject to the review andapproval of the 2024 annual shareholders' meeting beforeimplementation.
2. Notes on other events after the balance sheet date
In accordance with the construction requirements of Chengdu's Ecological Ring Zone, the Sanhe Street Officeof Xindu District People's Government in Chengdu plans to expropriate and demolish relevant buildings, land, andattached facilities owned by the Company's subsidiary, Jiefang Limited, located in Xindu District, Chengdu. OnMarch 7, 2025, the Company convened the 23rd meeting of its 10th Board of Directors and approved the "Proposalon the Expropriation of Subsidiary's Land, Buildings and Other Assets." Jiefang Limited intends to sign an"Ecological Ring Zone Construction Project Demolition Compensation Agreement" with the Sanhe Street Officeof Xindu District People's Government in Chengdu. The total compensation for this expropriation is expected to be215 million yuan.
As of March 28, 2025, the Company had no events after the balance sheet date to be disclosed.XVIII. Other Significant Matters
On October 25, 2024 and November 10, 2024, the Company held the 17th and 18th meetings of the 10th Boardof Directors, respectively, and on November 21, 2024, convened the third extraordinary shareholders meeting of2024, approving proposals related to the Company's significant asset disposal. The Company signed an EquityTransfer Agreement with FAW Co., Ltd., agreeing to sell its 21.8393% equity stake in First Automobile FinanceCo., Ltd. to FAW Co., Ltd. for 4,923,886.1 thousand yuan (this price would be adjusted accordingly if FirstAutomobile Finance Co., Ltd. distributes cash dividends for profits earned before the valuation reference date). OnDecember 19, 2024 and December 24, 2024, the Company received dividend payments from First AutomobileFinance Co., Ltd. and equity transfer payments from FAW Co., Ltd., totaling 4,923,886.1 thousand yuan. As ofMarch 28, 2025, First Automobile Finance Co., Ltd. still needs to complete the business registration changeprocedures.
XIX. Notes to Major Items of Parent Company's Financial Statements1 Other receivables
Unit: Yuan
| Item | Ending balance | Opening balance |
| Dividends receivable | 156,960,226.90 | |
| Other receivables | 6,314,003,121.96 | 219,864.00 |
| Total | 6,470,963,348.86 | 219,864.00 |
(1) Dividends receivable
1) Classification of dividends receivable
Unit: Yuan
| Item (or Investee) | Ending balance | Opening balance |
| First Automobile Finance Co., Ltd. | 156,960,226.90 | |
| Total | 156,960,226.90 |
(2) Other receivables
1) Classification of other receivables by nature
Unit: Yuan
| Nature | Ending book balance | Beginning Book Balance |
| Current account | 6,314,127,833.96 | 459,006.26 |
| Total | 6,314,127,833.96 | 459,006.26 |
2) Disclosure by aging
Unit: Yuan
| Aging | Ending book balance | Beginning Book Balance |
| Within 1 year (including 1 year) | 6,313,668,827.70 | |
| Including: 0-6 months | 6,313,668,827.70 | |
| 2-3 years | 459,006.26 | |
| Over 3 years | 459,006.26 | |
| 3-4 years | 459,006.26 | |
| Total | 6,314,127,833.96 | 459,006.26 |
3) Disclosure by the method of provision for bad debts
Unit: Yuan
| Category | Ending balance | Opening balance | ||||||||
| Book balance | Provision for Bad Debts | Book Value | Book balance | Provision for Bad Debts | Book Value | |||||
| Amount | Scale | Amount | Provision proportion | Amount | Scale | Amount | Provision proportion | |||
| Including: | ||||||||||
| Provision for bad debts made by portfolio | 6,314,127,833.96 | 100.00% | 124,712.00 | 0.00% | 6,314,003,121.96 | 459,006.26 | 100.00% | 239,142.26 | 52.10% | 219,864.00 |
| Including: | ||||||||||
| Aging portfolio | 6,314,127,833.96 | 100.00% | 124,712.00 | 0.00% | 6,314,003,121.96 | 459,006.26 | 100.00% | 239,142.26 | 52.10% | 219,864.00 |
| Total | 6,314,127,833.96 | 100.00% | 124,712.00 | 0.00% | 6,314,003,121.96 | 459,006.26 | 100.00% | 239,142.26 | 52.10% | 219,864.00 |
Bad debt provision made as per portfolio:
Unit: Yuan
| Name | Ending balance | ||
| Book balance | Provision for Bad Debts | Provision proportion | |
| Provision for bad debts made by portfolio | 6,314,127,833.96 | 124,712.00 | 0.002% |
| Total | 6,314,127,833.96 | 124,712.00 | |
Description of the basis for determining this portfolio:
Provision for bad debts based on the general model of expected credit losses:
Unit: Yuan
| Provision for Bad Debts | Stage I | Stage II | Stage III | Total |
| Expected Credit Losses for the Next 12 Months | Expected credit loss in the duration (credit impairment not occurred) | Expected credit loss for the entire duration (with credit impairment) | ||
| Balance as of January 1, 2024 | 239,142.26 | 239,142.26 | ||
| Balance on January 1, 2024 in the current period | ||||
| Provision in the current period | -114,430.26 | -114,430.26 | ||
| Balance as of December 31, 2024 | 124,712.00 | 124,712.00 |
Basis for stage classification and bad debt provision rates: Stage II provisions are based on aging, with a provisionratio of 27.17% for 3 to 4 years.Significant book balance changes occurred in the provision for losses in the current period
□Applicable ?Not applicable
4) Top five ending balances of other receivables classified by debtors
Unit: Yuan
| Name of Unit | Nature of Payment | Ending balance | Aging | Proportion in total ending balance of other receivables | Ending Balance of Provision for Bad Debts |
| FAW Jiefang Automotive Co., Ltd. | Current account | 6,313,668,827.70 | Within 1 year | 99.99% | |
| Changchun Committee of Municipal and Rural Construction | Current account | 459,006.26 | 3-4 years | 0.01% | 124,712.00 |
| Total | 6,314,127,833.96 | 100.00% | 124,712.00 |
2. Long-term equity investment
Unit: Yuan
| Item | Ending balance | Opening balance | ||||
| Book balance | Impa | Book Value | Book balance | Impa | Book Value | |
| irment Provision | irment Provision | |||||
| Investment in subsidiaries | 21,611,015,169.73 | 21,611,015,169.73 | 21,084,445,613.03 | 21,084,445,613.03 | ||
| Investment in associated enterprises and joint ventures | 184,102,155.37 | 184,102,155.37 | 4,509,604,357.16 | 4,509,604,357.16 | ||
| Total | 21,795,117,325.10 | 21,795,117,325.10 | 25,594,049,970.19 | 25,594,049,970.19 |
(1) Investment in subsidiaries
Unit: Yuan
| Investee | Opening balance (book value) | Opening balance of impairment provision | Increase/Decrease in the current period | Ending balance (book value) | Ending balance of impairment provision | |||
| Additional Investment | Reduced Investment | Impairment Provision | Others | |||||
| FAW Jiefang Automotive Co., Ltd. | 21,084,445,613.03 | -2,522,576.52 | 21,081,923,036.51 | |||||
| FAW (Africa) Investment Co., Ltd. | 329,092,133.22 | 329,092,133.22 | ||||||
| FAW Jiefang Group International Automobile Co., Ltd. | 200,000,000.00 | 200,000,000.00 | ||||||
| Total | 21,084,445,613.03 | 526,569,556.70 | 21,611,015,169.73 | |||||
(2) Investment in associated enterprises and joint ventures
Unit: Yuan
| Investee | Opening balance (book value) | Opening balance of impairment provision | Increase/Decrease in the current period | Ending balance (book value) | Ending balance of i | |||||||
| Additional Investment | Reduced Investment | Investment gains or losses recognized under the equity method | Adjustment to other comprehensive income | Changes in other equity | Cash dividends and profits declared to pay | Impairment Provision | Others | |||||
| mpairment provision | ||||||||||||
| I. Joint ventures | ||||||||||||
| II. Associated enterprises | ||||||||||||
| First Automobile Finance Co., Ltd. | 4,337,808,758.45 | 3,887,756,356.82 | 273,826,162.32 | -101,144.85 | 723,777,419.10 | |||||||
| Sanguard Automobile Insurance Co., | 171,795,598.71 | 451,805.57 | 11,854,751.09 | 184,102,155.37 | ||||||||
| Ltd. | ||||||||||||
| Subtotal | 4,509,604,357.16 | 3,887,756,356.82 | 274,277,967.89 | 11,753,606.24 | 723,777,419.10 | 184,102,155.37 | ||||||
| Total | 4,509,604,357.16 | 3,887,756,356.82 | 274,277,967.89 | 11,753,606.24 | 723,777,419.10 | 184,102,155.37 |
The recoverable amount is the net amount of the fair value after deducting the disposal expenses
□Applicable ?Not applicable
The recoverable amount is the present value of the expected future cash flow
□Applicable ?Not applicable
Reason for apparent discrepancies between the foregoing information and the information used in the impairment test or external information in the previous year:
NoneReason for apparent discrepancies between the information used in the Company's impairment test of the previous year and the actual situation in the current year:
None
3. Investment income
Unit: Yuan
| Item | Amount Incurred in Current Period | Amount Incurred in the Previous Period |
| Long-term equity investment income calculated with cost method | 353,500,000.00 | |
| Income from long-term equity investments accounted for using the equity method | 274,277,967.89 | 325,302,522.88 |
| Investment income from the disposal of long-term equity investment | 469,265,324.69 | |
| Total | 1,097,043,292.58 | 325,302,522.88 |
XX. Supplementary Information
1. Breakdown of non-recurring profit or loss of the current period
?Applicable □Not applicable
Unit: Yuan
| Item | Amount | Description |
| Profits or losses on disposal of non-current assets | -2,556,987.30 | It refers to the net gain on disposal of non-current assets. |
| Government subsidies included in the current profit or loss (except those closely related to the Company's normal operations, conforming to the State policies and regulations and enjoyed in line with the specified standards, and having a continuous impact on the profit or loss of the Company) | 618,258,791.46 | |
| Reversal of impairment provision for receivables subject to a separate impairment test | 65,749,100.00 | The reversal of impairment provision for receivables is subject to a separate impairment test. |
| Net current profit and loss of the subsidiary acquired in a business combination involving entities under common control from the beginning of the period to the combination date | 132,844,483.67 | The current net profit and loss of the subsidiary were acquired in a business combination involving entities under common control from the beginning of the period to the combination date. |
| Non-operating income and expenses other than the above | 76,695,007.35 | The net non-operating income and expenses. |
| Other losses and profits conforming to the definition of non-recurring profit and loss | 469,265,324.69 | Other non-recurring profits and losses. |
| Less: amount affected by income tax | 130,656,414.24 | |
| Amount affected by minority shareholder's equity (after-tax) | 36,843,452.64 | |
| Total | 1,192,755,852.99 | -- |
Specific conditions of other profit and loss items meeting the definition of non-recurring profit and loss:
□Applicable ?Not applicable
There is no specific conditions of profit and loss items meeting the definition of non-recurring profit and loss forthe Company.Explanation on defining the non-recurring profit and loss items listed in the Explanatory Announcement No.1 onInformation Disclosure by Companies Issuing Securities Publicly - Non-recurring Profit and Loss as recurringprofit and loss items
□Applicable ?Not applicable
2. Return on net assets and earnings per share
| Profit for the Reporting Period | Weighted average return on equity | Earnings per Share | |
| Basic earnings per share (Yuan/share) | Diluted earnings per share (Yuan/share) | ||
| Net profit attributable to ordinary shareholders of the Company | 2.45% | 0.1266 | 0.1266 |
| Net profit attributable to ordinary shareholders of the Company after deduction of non-recurring profit and loss | -2.25% | -0.1160 | -0.1160 |
3. Differences in accounting data under domestic and foreign accounting standards
(1) Differences in net profits and net assets in the financial report disclosed simultaneously according to theinternational accounting standards and Chinese accounting standards
□Applicable ?Not applicable
(2) Differences in net profits and net assets in the financial report disclosed simultaneously according toforeign accounting standards and Chinese accounting standards
□Applicable ?Not applicable
(3) Explanation of the reasons for accounting data differences under domestic and foreign accountingstandards shall be given, and where data audited by an overseas audit authority has been adjusted based onthe differences, the name of the overseas institution shall be indicated.
□Applicable ?Not applicable