Chongqing Changan Automobile
Company Limited
2023 Semi-Annual Report
August 2023
Chapter 1 Important Notice, Contents, and Definitions
1. The Board of Directors (or the “Board”), the Supervisory Board as well as the directors, supervisors
and senior managers of Chongqing Changan Automobile Co., Ltd. hereby guarantee the factuality,accuracy and completeness of the contents of this Report and its summary, and shall be jointly andseverally liable for any misrepresentations, misleading statements or material omissions therein.
2. Zhu Huarong, the Company’s legal representative, Zhang Deyong, the Company’s Chief Financial
Officer and Chen Jianfeng, the person-in-charge of the accounting organ hereby guarantee that thefinancial statements carried in this Report are factual, accurate and complete.
3. All the directors have attended the board meeting for reviewing this Report.
4. Any prospective description such as future business plans and development strategies in this Report
shall not be considered as the Company’s commitment to investors. Investors and relevant personsshall be sufficiently mindful of risks, and undertake the difference in plans, predictions andcommitment.
5. Chapter III “Management Discussion and Analysis” of this Report describes the possible risks and
countermeasures of the Company, and investors shall pay attention to the relevant content.
6. For the first half of 2023, the Company has no plans of cash dividend, no bonus shares and no share
converted from capital reserve.This Report has been prepared in both Chinese and English. Should there be any discrepancies ormisunderstandings between the two versions, the Chinese version shall prevail.
CONTENTS
Chapter 1 Important Notice, Contents, and Definitions ...... 1
Chapter 2 Company Profile and Main Financial Indexes ...... 4
Chapter 3 Management Discussion and Analysis ...... 8
Chapter 4 Corporate Governance ...... 26
Chapter 5 Environment and Social Responsibility ...... 29
Chapter 6 Important Matters ...... 42
Chapter 7 Changes in the Shareholding of the Company and Shareholders ...... 47
Chapter 8 Preferred Shares ...... 53
Chapter 9 Bonds ...... 54
Chapter 10 The Financial Statements ...... 56
Documents Available for ReferenceI. Financial statements carrying the signatures and seals of the Company’s legal representative, the Chief FinancialOfficer, and the person-in-charge of the accounting organ.Ⅱ. During the reporting period, the original copies of all company documents and announcements publicly disclosedby the Company in China Securities Journal, Securities Times, Securities Daily, Shanghai Securities News, andHong Kong Commercial Daily.
DefinitionsItems DefinitionsChangan Auto, ChanganAutomobile, the Company
Refers to Chongqing Changan Automobile Co., Ltd.CSG Refers to China South Industries Group Corporation, the Company’s actual controllerChina Changan Refers to
China Changan Automobile Group Co., Ltd., formerly known as China SouthIndustries Automobile Co., Ltd., a subsidiary company of CSGChangan Industry Refers to
Chongqing Changan Industry (Group) Co., Ltd., formerly known as
Automobile (Group) Co., Ltd., a subsidiary company of CSGNanjing Changan Refers to Nanjing Changan Automobile Co., Ltd., a subsidiary company of the CompanyHebei Changan Refers to Hebei Changan Automobile Co., Ltd., a subsidiary company of the CompanyHefei Changan Refers to Hefei Changan Automobile Co., Ltd., a subsidiary company of the CompanyChangan Bus Refers to Baoding Changan Bus Co., Ltd., a subsidiary company of the CompanyKaicheng Automobile Refers to Kaicheng Automobile Technology Co., Ltd., a subsidiary company of the CompanyCIC Refers to
ChanganChongqing Changan Automobile International Sale Service Co., Ltd., a subsidiary
company of the CompanyChangan Ford Refers to Changan Ford Automobile Co., Ltd., a JV of the CompanyChangan Mazda Refers to Changan Mazda Automobile Co., Ltd., a JV of the CompanyCME Refers to Changan Mazda Engine Co., Ltd., a JV of the CompanyJiangling Holding Refers to Jiangling Holding Co., Ltd., an associate of the CompanyChangan Finance Refers to Changan Automobile Financing Co., Ltd., an associate of the CompanyCSG Finance Refers to
Chongqing Changan Automobile International Sale Service Co., Ltd., a subsidiaryChina South Industries Group Finance Co., Ltd., a subsidiary company of South
IndustriesUPI Refers to United Prosperity Investment Co., Ltd., a subsidiary company of China ChanganChangan Technology Refers to Chongqing Changan Technology Co., Ltd., a subsidiary company of the CompanyDeepal Auto Refers to Deepal Automobile Technology Co., Ltd., a subsidiary company of the CompanyAvatr Refers to Avatr Technology (Chongqing) Co., Ltd., an associate of the Company
Chapter 2 Company Profile and Main Financial Indexes
I. Basic Information
Stock abbreviationChangan Automobile, Changan BStock Code000625、200625Listed onShenzhen Stock Exchange
Company in Chinesename
重庆长安汽车股份有限公司
Company abbreviation inChinese name
长安汽车Company name inEnglish
Chongqing Changan Automobile Co., Ltd.
Legal representativeZhu HuarongII. Contact Information
Secretary of the Board of Directors Securities Affairs RepresentativeName Zhang Deyong, Li Jun Jie ZhonghuaContact address
Chongqing
| Building T2, No. 2, Financial City, No. 61 Dongshengmen Road, Jiangbei District, | Building T2, No. 2, Financial City, No. |
61 Dongshengmen Road, JiangbeiDistrict, ChongqingTEL 023-67594008 023-67594008FAX 023-67870261 023-67870261E-mail address cazqc@changan.com.cn jiezh@changan.com.cn
III. Others
1. Contact information
Whether registration address, office address and its post code as well as website and email of the Company changed in the reportingperiod or not
□ Applicable √ Not applicable
The registration address, office address and post code as well as website and email of the Company did not change in the reportingperiod. See more details in Annual Report 2022.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable √ Not applicable
The newspaper appointed for information disclosure, the website for the publishment of the semi-annual report appointed byCSRC and the preparation place for semi-annual report did not change in the reporting period. See more details in Annual Report 2022.
3. Other relevant information
Whether other relevant information changed in the reporting period or not
□ Applicable √ Not applicable
IV. Key Accounting Data and Financial IndexesDoes the Company need to retrospectively adjust or restate the accounting data of previous years?
□Yes √ No
The reporting period The same period of last year YoY change (%)Operating revenue (RMB) 65,492,098,869.01
56,573,568,393.71
15.76%
Net profit attributable to shareholders ofthe Company (RMB)
| 7,652,979,346.80 |
5,857,626,135.78
30.65%
Net profit after deduction of non-recurringgains or losses attributable to shareholdersof the Company(RMB)
3,100,113,819.34
| 1,509,058,024.00 |
-51.32%
Net cash flow from operating activities(RMB)
| 6,955,456,713.59 |
5,852,236,420.20
18.85%
Basic earnings per share (RMB/share)
0.78
0.60
30.00%
Diluted earnings per share (RMB/share) 0.76
0.59
28.81%
Weighted average ROE (%) 11.70%
10.06%
1.64%
30 June 2023 31 December 2022 YoY change (%)Total assets (RMB) 174,992,803,677.92
146,048,555,951.92
19.82%
Net assets attributable to shareholders ofthe Company (RMB)
| 67,951,132,340.73 | 62,858,105,705.70 |
8.10%
V. The Differences between Chinese Accounting Standards and International FinancialReporting Standards
1. Differences in net profit and net asset attributable to shareholders in financial report disclosed in
accordance with International Financial Reporting Standards and Chinese Accounting Standards.
□ Applicable √ Not applicable
No difference during the reporting period.
2. Differences of net profit and net assets disclosed in financial reports prepared under Overseas Financial
Reporting Standards and Chinese Accounting Standards.
□ Applicable √ Not applicable
No difference during the reporting period.
3. Reasons for differences in accounting data under Chinese Accounting Standards and International
Financial Reporting Standards.
□ Applicable √ Not applicable
VI. Items and Amounts of Non-Recurring Gains and Losses
√ Applicable □ Not applicable
Unit: RMBItem Amount IllustrationNon-
reversal assets impairment part)
366,667,730.28
| recurring items and amounts (including accrued |
government subsidies)
856,008,089.78
| Government subsidies included in the profit and loss of the current period (Except closely related to business operations, in accordance with the national unified standard quota or quantitative enjoyment of |
Capital occupation fees charged to non-
enterprises included in the current profit and loss
17,949,915.40
| financial |
assets, trading financial liabiliti
| es, derivative financial liabilities, and disposal of transactional financial assets, derivative finance Investment income from assets, trading financial liabilities, derivative financial |
liabilities and other debt investments
-23,334,661.15
Income from
| business combinations not under |
common control
5,021,482,128.74
The company formed a business merger undernon common control through additionalinvestment in the original joint venture DeepalAutomobile Technology Co., Ltd. (hereinafterreferred to as "Deepal Automobile", formerlyChongqing Changan New Energy AutomobileTechnology Co., Ltd.), as detailed in the"Announcement on the Acquisition of PartialEquity of Changan New Energy" (AnnouncementNo. 2022-78). The transaction completed theequity delivery procedures on February 1, 2023.Please refer to the "Progress Announcement onAcquiring Partial Equity of Changan NewEnergy" (Announcement No. 2023-05) for
details. According to Article 48 of EnterpriseAccounting Preparation No. 33- ConsolidatedFinancial Statements, the company recognized aninvestment income of 5.021 billion yuan in thefirst quarter of 2023 based on the financialinformation on the purchase date.Other non-
the above items
79,796,614.79
| operating income and expenses other than |
Subtract: Influenced amount of income tax 171,307,435.24
Influenced amount of minority shareholders’
| equity |
(after tax)
3,341,059.80
Total 6,143,921,322.80
--Explanation of why the Company reclassifies recurrent gain/loss as an Extraordinary gain/loss item listed in the ExplanatoryAnnouncement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Extraordinary Gain/LossItems
□ Applicable √ Not applicable
No such cases for the reporting period.
Chapter 3 Management Discussion and Analysis
I. The main business of the Company in the reporting period
1. Business overview
As an automobile manufacturer, Changan Automobile’s businesses cover the R&D, manufacturing, and sales of vehicles, as wellas the R&D and production of engines. At the same time, we proactively develop new businesses such as mobility, car services, newmarketing and sales, and battery swapping, and steps up efforts in exploring finance, used cars and other fields to build a comprehensiveindustrial ecology and become an intelligent low-carbon mobility technology company.Changan always adheres to the mission of “Leading Auto Culture for a Better Life”, to the concept of “energy saving,environmental protection, scientific and technological intelligence”. At the same time, Changan vigorously develops new energy andintelligent vehicles, is committed to leading automobile civilization with science and technology innovation, and strives to providecustomers with high-quality products and services. The company now owns homegrown brands including Changan Automobile andKaicheng Automobile, and has innovatively built three NEV brands, i.e., Avatr, Deepal, and Changan Qiyuan, to promote its own brandto move upward. In addition, Changan also produces and sells joint-venture models through Sino-foreign joint ventures Changan Fordand Changan Mazda. Changan has launched a series of iconic models including CS series, EADO series and UNI series. Joint ventureshave launched Edge L, Explorer, New Generation Nautilus, Corsair, Aviator, Zephyr, CX-50, CX-5, Axela and other well-receivedproducts. In the field of new energy vehicles, Deepal SL03, Deepal S7, Avatr E11, UNI-V iDD, Lumin have been launched. Manymodels of the company are welcomed by consumers.Our operation attaches “equal importance to homegrown and joint venture brands”. We make determined efforts in developingiconic homegrown brands, with Changan Auto, Deepal Auto, and Kaicheng Automobile brands as independent entities. For ChanganFord, Changan Mazda and other joint ventures, we adopt investment management and continue to deepen mutual trust and cooperationwith partners.
2. Industry situation
In the first half of 2023, China’s economy continued to recover, and the “triple pressure” has been alleviated to a certain extentand all industries have shown varying degrees of recovery momentum. But constrained by weak consumption and other factors, theinternal impetus for economic growth is not strong, and the foundation for economic recovery is not yet solid. In the face of subsidywithdrawal, insufficient demand and other headwind factors, the auto industry in the first half of the year to increase promotioncampaigns, increase the supply of new models, together with the national and local policies for automobile consumption, and thegradual recovery of automobile market demand. At the same time, new energy vehicles, automobile exports and Chinese brandscontinued to maintain a good momentum, which helped the industry achieve positive growth in the first half of the year. The specificsituation of the industry during the reporting period is as follows:
In the first half of 2023, the domestic automobile industry achieved a cumulative sales volume of 13.239 million units, had a 9.8%year-over-year growth, and the overall sales volume showed a low trend before and then a high trend. By model, the cumulative salesvolume of passenger vehicles in the first half of the year was 11.268 million units, had an 8.8% year-over-year growth, which was lessthan the industry. Due to the favorable factors such as macroeconomic recovery and strengthening of infrastructure investment, thecommercial vehicles market achieved double-digit rapid growth year-over-year, and achieved 1.971 million sales in the first half of theyear, had a 15.8% year-over-year growth, and had an obvious recovery momentum.
New energy vehicles and automobile exports, as the two major growth highlights of the current automobile market, continue toeffectively drive the overall market growth with good performance. Although the new energy subsidy policy has been withdrawn atthe end of 2022, the new energy vehicles market in the first half of 2023 still maintained a sustained growth trend, and the productionand sales reached a new high in the same period, respectively completed 3.788 million units and 3.747 million units, with year-over-year growth of more than 40%, continuing to show a prosperous trend of production and sales. From the market segment, EV and XEVhave a different performance, affected by battery cost, convenience of use and other factors, XEV model growth rate is significantly
higher than EV model. Chinese automobile brands continue to be the main source of growth of the new energy passenger automobilemarket, contributing more than 75% sales of the new energy passenger cars. The market share of Chinese automobile brands in thenew energy passenger cars raised to 53.5%, nearing a record high.Automobile exports grew rapidly, exceeding 2 million units in the first half of 2023, contributing significantly to the overallgrowth of the market, of which the export of new energy vehicles reached 534,000 units, had a year-over-year growth more than 150%.In recent years, with a more complete industrial chain, continuous and rapid iteration of intelligent technology, scale advantages andabundant product matrix, Chinese automobile brands have promoted the continuous development and growth of China's automobileexport scale.(The above data/information is collected from “China Automotive Industry Production and Sales Express” published by ChinaAssociation of Automobile Manufacturers and its industry information release)
3. Enterprise market performance
In the first half of 2023, in the context of complex and severe internal and external situations, Changan adheres to the guidance ofXi Jinping Thought on Socialism with Chinese Characteristics for a New Era, further promotes the Third Business Venture —Innovation & Entrepreneurship Program, and firmly transform into an intelligent low-carbon mobility technology company. In the faceof changes in the market competition environment exceeding expectations, Changan actively and decisively took effective measuresto cope with the impact of market changes on the production and operation of the enterprise, and maintained the overall stability of theproduction and operation of the enterprise. In the first half of 2023, the sales volume reached 1.216 million units, had an 8.0% year-over-year growth, and the group's sales volume ranked fourth in the industry, one place higher than that of the same period last year.Among them, exported 116,218 units overseas; self-owned brand of new energy vehicles sold 176,057 units, had a 107.2% year-over-year growth, better than the industry growth rate of 63.1 percentage points.
During the reporting period, Changan Automobile focused on the Third Business Venture — Innovation & EntrepreneurshipProgram, and paid close attention to the implementation of the strategy, and released the overseas strategy Vast Ocean Plan, making itclear that the overseas market would realize the development goal of “Four Ones” by 2030. By establishing the Southeast Asia Divisionand the European regional headquarters, overseas development will get into a new era. Faced with the challenges of subsidy withdrawal,insufficient demand, and unexpected market fluctuations, we made every effort to increase the stock and seize the incremental volume,and took the initiative to formulate and implement the “Ten Billion Yuan Benefits for Vehicle Purchase” and “Equal Price for ICE andEV”, which effectively responded to the impact of competitors’ price drop on the market segments where Changan Automobile’sproducts are located, and the Company’s sales volume and market share have been significantly increased. Terminal retail data showedthat in the first half of 2023, Changan’s passenger brand (ICE) sales ranked first among China’s homegrown brands. CS75 series salesranked first in the compact SUV segment. The sales of EADO PLUS remained first among China’s homegrown branded compact sedan(ICE) for three consecutive months, and sales of DEEPAL SL03 ranked second among new energy medium-sized sedan, and the marketactions have achieved certain results. The Company strengthened technology leadership and unswervingly promoted core technologyresearch and development for product development acceleration. In the first half of year, the UNI-V iDD, the third generation of CS75PLUS, Lamore, DEEPAL S7, Ford Edge L, the new generation of the Lincoln Nautilus, Mazda CX-50 and other new or updatedproducts were launched. Product innovations have yielded fruitful results. Adhering to the user-centered, product-oriented philosophy,Changan vigorously promoted the new marketing and sales transformation and achieved the direct data connection management ofthousands of stores of Changan Passenger Vehicles, Lumin, and Kaicheng, and the new marketing and sales network model landed inan orderly manner.
II. Core Competence Analysis
1. Science and technology R&D capability. The company adheres to innovation-driven development and promotes the
implementation of technological development plan at full speed. Driven by sci-tech innovation and ecosystem building and led by auser-centric approach, Changan strengthens investment in science and technology innovation and delivers first-in-the-industry
technologies. New breakthroughs have been made in product development and technological innovation. In the intelligent field,Changan continues to build intelligence core capabilities of “chips, control units, mapping, components, cloud, network andalgorithms”. The development of the main functions of the SDA-S platform have been completed. UNI-V won Smart Star of 2022 atInternational Automotive Test and Assessment Summit. In the field of NEV technologies, the trial production of semi-solid batterieshas been completed, and the batteries have been tested on prototypes. Changan’s second-generation hydrogen FCEVs ran successfully.The Force ultra-integrated e-drive won the 2
ndWorld Top10 Electric Drive System and “China Heart” 2022 top 10 NEV power system.As of June 2023, the company owns 9,869 patents globally including 2,658 invention patents.
2. Product definition. With the philosophy of “being user-centric, innovation-driven and building world-class product definition
capabilities”, the company aims to build an industry-leading product definition system to make the process more efficient, moreaccurate and more competitive. Changan improves product definition capability, defines use scenarios with an experience-driven EMDscenario definition approach. Also, the company keeps building a Software as a Service platform which is unified, upgradable andprofitable. The company’s key products are well-received in the market. The CS75 series, UNI-V, Eado series, Deepal SL03 and S7are selling well. The company will continue to be user-centric, focus on core use cases, and improve Deepal, Avatr and Changan Qiyuan,product lineup to speed up electrification.
3. Brand power. The company keeps strengthening brand value management and innovative brand promotion, refreshing brand
structure and strategy, and improving brand customer satisfaction. In terms of brand value management, Changan builds the brandstructure with the goal of “a larger scale, higher value and fresher image”. The company launched the overseas business strategy VastOcean Plan to build Changan Auto’s international brand image. Deepal Automobile was recognized as the 2023 China Media GroupBrand Power Project and was awarded the “Leading Homegrown NEV Brand”, which greatly enhanced the customer perception ofDeepal’s NEV products. In terms of brand promotion, in the first half of 2023, the company launched four models including Deepal’sfirst SUV product S7, and the third-generation CS75PLUS, with a total of more than 1 billion brand reaches cumulatively. This yearmarks the tenth anniversary of the Belt and Road Initiative, the company cooperated with Xinhua News Agency's "Along the Belt andRoad" program to promote the implementation of Changan's overseas strategic plan and enhance the brand's international influence. Inaddition, the company won the first place among Chinese homegrown brands in J.D. Power’s 2023 Sales Satisfaction Index.
4. Intelligent manufacturing. With the intelligent manufacturing strategy of “Cloud, Network, Platform and Scenarios”, the
company is exploring the digital transformation in all use cases in new plants. Based on IIOT platform, Changan adopts unifiedplatforms and technologies to build IoT platforms, data mid-end, and business mid-end to improve the capability of business iteration.With the production capability of electric drive, ECUs and batteries, Changan has completed an initial layout of the production capacityof NEV components. The new plant in Nanjing and Chongqing Yubei have applied technologies including 5G, digital twin and AImachine vision and built more than 40 intelligent manufacturing scenarios to build 5G+ plants with intelligent and green manufacturingcapabilities.
5. Leading culture. Changan continues to build a leading company culture with various measures to promote the entrepreneurial
culture inside the company. Education campaigns and investigation and research have been carried out in a solid manner to solvedevelopment problems. The company organized a speech contest on the theme of leading culture and “oral history” interviews to createa number of high-quality cultural promotion programs, which were included in the 2023 Changan Automobile Leading Culture StoryAnnual. Changan cares for employees and promotes employee mental health services, and updates Employee Health Care Program 2.0to enhance employees' sense of gain and happiness. We shoulder corporate social responsibilities, continue to engage in ruralrevitalization and poverty alleviation and promote the targeted assistance programs in Luxi and Yanshan counties in Yunnan andYouyang in Chongqing. Changan has offered RMB 10.6 million of assistance funds for the two counties in Yunnan.
6. Mechanism and efficiency. The company continues to build a strong talent team and actively restructures organization to
stimulate talent vitality. In terms of talent building, the company continues to attract top talent globally in design, global marketing,NEV technologies, software, etc. Also, Changan keeps nurturing talent in operational management strategy to optimize humanresources. In terms of incentives, we optimize the company’s incentive plan, adopt restricted stock and improve the program co-
investment to further stimulate the vitality of the organization. In terms of efficiency enhancement, the company has accelerated digitaltransformation, improved top-level planning, carried out in-depth digital transformation training and promoted digital transformationin all business units.
III. Analysis of Main BusinessOverviewWhether it is the same as the company’s main business disclosure during the reporting period
√ Yes □ No
Please refer to the relevant content of "I. The main business of the Company in the reporting period" in chapter 3 of this report.
Y-o-y changes in key financial data
Unit: RMB The reporting period
The same period of last year
YoY change (%) Reasons for changesOperating revenue 65,492,098,869.01
| 56,573,568,393.71 |
15.76%
Operating cost 54,001,999,268.58
| 45,360,090,482.20 |
19.05%
Sales expense
| 3,068,434,621.37 | 2,285,329,821.77 |
34.27%
Mainly due to the acquisitionof Deepal Auto, its salesexpenses
| were included in the |
merger and increasedGeneral and administrativeexpenses
2,271,960,408.55
| 2,184,034,305.10 |
4.03%
R&D expenses 2,964,604,104.48
| 1,932,294,144.67 |
53.42%
Mainly due to an increase in
research and development
investmentFinancial expenses -453,268,104.89
-437,998,348.99
-3.49%
Impairment loss -397,274,160.99
-241,827,585.46
-64.28%
Mainly due to an increase in
impairment of contract assets
and intangible assetsInvestment income 5,023,108,819.32
| 2,354,040,073.27 |
113.38%
Mainly due to the merger and
acquisition of Deepal Auto,
which resulted in the original
equity being remeasured at
fair valueAsset disposal income
| 366,667,730.28 | 68,244,082.28 |
437.29%
Mainly due to the disposal of
Tea Garden Factory Three in
this periodOther income
| 657,988,649.18 | 186,910,289.65 |
252.03%
Mainly due to an increase in
government subsidies
received in the current period
Income tax expense
-103,280,125.74
| 176,620,825.19 |
271.01%
Subtotal of cash inflow fromoperating activities
6,955,456,713.59
| 5,852,236,420.20 |
18.85%
Mainly due to the year-on-year increase in due receiptsof bills
Subtotal of cash inflow frominvestment activities
| 5,259,673,991.67 |
-2,383,212,310.03
320.70%
| Mainly due to the fact that the |
balance of cash and cash
the purchase date exceeds thecash offer of the company topurchase its equity, which isincluded in the projectNet cash flow from financingactivities
-566,158,268.81
| equivalents of Deepal auto on | ||
-2,013,951,932.20
71.89%
Mainly due to the fact
equity distribution in 2022has not been paid in thecurrent period and the equitydistribution in the sameperiod has been paidNet increase in cash and cashequivalents
| that the | |||
| 11,662,231,001.80 | 1,514,350,653.16 |
670.11%
Mainly due to the acquisitionof Deepal Auto and the year-on-year increase in billmaturityMajor changes on profit composition or profit resources in reporting period
√ Applicable □ Not applicable
During the reporting period, the company's profit was greatly affected by non-recurring gains and losses. For details, please refer to"VI. Items and Amounts of Non-Recurring Gains and Losses " in Chapter 2 of this report.Composition of the operating revenue
The reporting period The same period of last year
YoYincrease/decrease
(%)Amount (RMB)
Proportion ofoperating revenue
（%）
Amount (RMB)
Proportion ofoperating revenue
(%)Operating revenue65,492,098,869.01
100%
56,573,568,393.71
100%
15.76%
By industry
Automotive business
65,492,098,869.01
100%
56,573,568,393.71
100%
15.76%
By product
Vehicles 61,803,014,700.65
94.37%
53,462,409,290.12
94.50%
15.60%
Services andothers
3,689,084,168.36
5.63%
3,111,159,103.59
5.50%
18.58%
By region
China 57,602,185,093.44
87.95%
49,995,769,261.71
88.37%
15.21%
Overseas 7,889,913,775.57
12.05%
6,577,799,132.00
11.63%
19.95%
The business, products and regions accounting for over 10% of the Company’s operating revenue oroperating profit
√ Applicable □ Not applicable
OperatingRevenue (RMB)
Operating Cost
(RMB)
Gross margin(%)
YoY
increase/decrease
of operatingincome (%)
YoYincrease/decreaseof operating cost(%)
YoY
| increase/decrease | increase/decrease |
of gross margin
(%)By businessAutomotivebusiness
| 65,492,098,869.01 | 54,001,999,268.58 |
17.54%
15.76%
19.05%
-2.28%
By productVehicles
| 61,803,014,700.65 | 50,899,747,867.52 |
17.64%
15.60%
18.56%
-2.06%
By regionChina
| 57,602,185,093.44 | 46,823,857,913.11 |
18.71%
15.21%
19.84%
-3.14%
Overseas 7,889,913,775.57
7,178,141,355.47
9.02%
19.95%
14.14%
4.62%
Where the statistical caliber of the main business data of the Company is adjusted, the data is subject to the main business dataafter adjustment according to the caliber of the end of the report period in the latest year.
□ Applicable √ Not applicable
IV. Analysis of Non-Main Business
√ Applicable □ Not applicable
Amount (RMB) Proportion of profits (%) Explanation Whether it is sustainable or not
Investment income
70.32%
| 5,023,108,819.32 |
Please refer to the Item 54,Note 7 “Investmentincome ” in the In Chapter10 of this report.
Except for the income of 5.021billion yuan generated by the
not under the same control asDeepal Auto, other sustainableassetsProfits or losses of fairvalue change
-
| company's merger of enterprises | ||
| 23,334,661.15 |
-0.33%
NoImpairment losses onassets
-
| 397,274,160.99 |
-5.56%
Please refer to the Item 57,
Note 7 “Impairment losses
on assets” in the In Chapter
10 of this report.
NoNon-operating income
| 93,295,575.81 |
1.31%
No
Non-operating expenses
0.19%
| 13,498,961.02 |
No
V. Analysis of Assets and Liabilities
1. Major Changes in Asset Composition
30 June 2023 31 December 2022
Increase/Decrease in
(%)
Description of significant changes
| Proportion |
Amount (RMB)
Proportion of totalassets (%)
Amount (RMB)
| Proportion |
of totalassets (%)Monetary fund
37.71%
| 65,985,946,564.21 | 53,530,183,827.34 |
36.65%
1.06%
Receivables
1.42%
| 2,477,017,799.35 | 3,068,414,415.29 |
2.10%
-0.68%
Contract assets
1.27%
| 2,227,324,510.17 | 458,389,187.10 |
0.31%
0.96%
| Mainly due to the acquisition of Deepal Auto, the receivable new energy subsidies have been included in the consolidated financial statements, resulting in |
an increaseInventories
5.86%
| 10,252,940,583.44 | 5,823,307,512.90 |
3.99%
1.87%
| Mainly due to the increase in exported cars and the acquisition of Deepal Motors, which included |
their inventory in the mergerInvestmentproperty
0.00%
| 6,309,359.26 | 6,422,715.04 |
0.00%
0.00%
Long-term equityinvestment
7.88%
| 13,788,910,316.27 | 14,406,662,456.28 |
9.86%
-1.98%
Fixed assets
10.78%
| 18,869,352,705.47 | 19,346,764,691.44 |
13.25%
-2.47%
Construction inprogress
1.27%
| 2,225,500,468.09 | 1,387,898,218.64 |
0.95%
0.32%
| Mainly due to the acquisition of Deepal Auto, the inclusion of its ongoing construction projects in the merger, and an increase in the company's replacement and |
upgrading projectsRight-of-useassets
0.11%
| 186,760,454.06 | 100,813,386.01 |
0.07%
0.04%
Intangible assets
8.61%
| 15,068,479,509.60 | 4,446,385,255.68 |
3.04%
5.57%
| Mainly due to the acquisition of Deepal Auto and the increase in |
intangible assetsDevelopmentexpenditure
0.80%
| 1,393,772,255.65 | 723,211,177.47 |
0.50%
0.30%
| Mainly due to the acquisition of Deepal Auto, its development |
and increasedGoodwill
| expenses have been included in the consolidated financial statements | ||
| 1,809,337,918.87 |
1.03%
| 9,804,394.00 |
0.01%
1.02%
| Goodwill mainly formed due to the |
acquisition of Deepal AutoShort-term loans
0.03%
| 50,000,000.00 | 29,000,000.00 |
0.02%
0.01%
Notes payable
19.26%
| 33,712,072,409.02 | 22,072,793,864.83 |
15.11%
4.15%
| Mainly due to the merger and acquisition of Deepal Auto, the increase in notes payable was |
included in the mergerContract liabilities
| 7,116,078,624.58 |
4.07%
| 5,655,256,792.66 |
3.87%
0.20%
Payable employeecompensation
2.29%
| 4,002,974,882.87 | 2,807,158,489.85 |
1.92%
0.37%
| Mainly due to the increase in the |
balance of short-
compensation payable and
| the merger of Deepal Auto, which included employee compensation |
payable in the mergerOther payables
4.84%
| 8,462,527,432.79 | 6,082,766,424.67 |
4.16%
0.68%
| Mainly due to provision for equity |
distribution in 2022Long-term loans
0.04%
| 76,000,000.00 | 36,000,000.00 |
0.02%
0.02%
Lease liabilities
0.07%
| 120,870,028.21 | 60,205,397.98 |
0.04%
0.03%
Deferred TaxLiability
0.94%
| 1,641,744,451.94 | 237,036,741.16 |
0.16%
0.78%
| Temporary taxable differences mainly arising from the acquisition |
of Deepal AutoMinorityshareholders'equity
2.27%
| 3,979,214,485.66 | 90,698,855.79 |
0.06%
2.21%
| Minority shareholders' equity mainly arising from the non |
wholly-
Deepal Auto
2. Major overseas assets
□ applicable √ not applicable
3. Assets and liabilities measured at fair value
√ Applicable □ Not applicable
Unit: RMBItem
OpeningBalance
Changes in Fair
owned acquisition ofValue Gains and
Losses in
AccumulatedFair ValueChangesIncluded in
Provision
forImpairmentin Current
| Value Gains and | Amount |
ofPurchas
e in
Amount of
Sales inCurrent Period
Other Changes
Closing Balance
Current Period Equity Period Current
PeriodFinancial assets
for trading (excludingderivative financialassets)
280,315,571.09
| 1.Financial assets held |
14,575,284.30
21,823,463.97
10,827,945.05
262,239,446.37
2.Investments in other
equity instruments
489,950,000.00
489,950,000.00
Subtotal financialassets
770,265,571.09
14,575,284.30
21,823,463.97
10,827,945.05
752,189,446.37
Total770,265,571.09
14,575,284.30
21,823,463.97
10,827,945.05
752,189,446.37
Financial liabilities-
-37,909,945.45
-
96,425.05
37,813,520.40
Note: The trading financial assets and investments in other equity instruments in the table above are detailed in “2. Trading FinancialAssets” and “12. Investments in Other Equity Instruments” in Note 7 of the Financial Statements.Whether there are major changes on measurement attributes for main assets of the Company in reporting period
□ Yes √ No
4. Property rights limits by the end of report period
Unit: RMBItem Book Value at the End of This Year Limited ReasonMonetary fund1,832,280,514.67Deposit of acceptance billNotes receivable 6,379,455,146.47 Pledge for issuing bills payableIntangible assets28,900,540.24Processing release proceduresFixed assets 16,614,436.08 Processing release procedures
Total 8,257,250,637.46VI. Analysis of Investment
1. Overall situation
√ Applicable □ Not applicable
Item
Investment amount for thereporting period (RMB)
Investment amount for theprevious reporting period (RMB)
YoY Change (%)Equity investments 102,000,000.00
1,860,368,900.00
-94.52%
Fixed assets 12,498,803.34
52,569,218.29
-76.22%
Construction in progress 1,542,862,623.35
787,512,886.09
95.92%
Intangible assets 17,122,312.97
95,564,437.69
-82.08%
Total 1,674,483,739.66
2,796,015,442.07
-40.11%
2. The major equity investment obtained in reporting period
□ Applicable √ Not applicable
3. The ongoing major non-equity investment in reporting period
□ Applicable √ Not applicable
4. Investment of Financial Assets
(1) Security investments
√ Applicable □ Not applicable
SecuritytypeStockcode
Abbreviatio
n
cost（RMB）
Accountingmeasurement
model
| Initial investment | Book value at the |
beginning of thereporting period（RMB）
Gains and lossesfrom changes infair value during
the period（RMB）
Accumulate
changesincluded inequity（RMB）
Purchaseamountduring thereporting
period（RMB）
Sales amountduring thereporting
period（RMB）
Gains andlosses of the
reportingperiod（RMB）
| d fair value | Book value at the |
end of thereporting period
（RMB）
Accounting
subject
offunds
Stock
| Source | ||
301215
CPGSecurities
98,999,997.80
Fair valuemeasurement
125,052,628.80
38,297,367.57
0.00
0.00
0.00
39,704,209.64
163,349,996.37
Tradingfinancial assets
Self-ownedfundsStock
600369SouthwestSecurities
50,000,000.00
Fair valuemeasurement
126,112,500.00
-5,399,586.03
0.00
0.00
21,823,463.97
-5,399,586.03
98,889,450.00
Tradingfinancial assets
Self-ownedfundsTotal148,999,997.80
-- 251,165,128.80
32,897,781.54
0.00
0.00
21,823,463.97
34,304,623.61
262,239,446.37
-- --
(2) Derivative investments
√ Applicable □ Not applicable
（1） Derivative investments for hedging purposes during the reporting period
√ Applicable □ Not applicable
Unit: 10,000 RMB
Investment type of derivatives
Initialderivativesinvestmentamount
Profit and lossfrom changes infair value in the
current period
Accumulated
| Profit and loss from changes in fair value in the | changes in fair value included |
in equity
purchase
| in the reporting |
period
reportingperiod
Investment
| Amount of sales in the | amount at the end of the |
reportingperiod
assets of the CompanyForward Exchange 85,419
| Proportion of investment amount at the end of the reporting period to net | ||
-5,623
153,
70,291
| 162 |
168,290
2.48%
Total 85,419
-5,623
153,
| 162 |
70,
168,290
| 291 |
2.48%
Explanation of changes of theaccounting policies and accountingprinciples of the Company’s hedgingduring the reporting period comparedwith the previous reporting period
Not applicable
Description of actual gains/lossesduring the reporting period
During the reporting period, 702.91 million yuan was sold, and the actual profit and loss amount was 10.73 million yuan.
Description of hedging effect
Changan Automobile adheres to
| the principle of risk neutrality in carrying out forward foreign exchange settlement and sales business, based on normal production and operation, locks in income and cost through forward foreign exchange |
transactions, avoids the risk of exchange rate flu
realization of annual operating objectives.Source of funds Self-owned funds
Risk analysis and control measures forderivatives investment during thereporting period (including but notlimited to market risk, liquidity risk,credit risk, operational risk, legal risk,etc.)
Risk analysis
ctuations, reduces the uncertainty of operating profits, and ensures the
1. Market risk: In the case of large changes in the exchange rate, the difference between the exchange rate of the forward
exchange contract and the actual exchange rate on the expiration date may cause the Company to lose money.
2. Liquidity risk: The foreign exchange hedging business is based on the Company’
| s foreign exchange assets and liabilities, and matches the actual foreign exchange receipts and expenditures to ensure that there are sufficient funds for |
liquidation at the time of delivery, so as to reduce the cash flow demand on the maturity date.
with the actual delivery period, resulting in the delayed delivery risk caused by
| the failure of the forward exchange |
transaction to be delivered at the agreed time.
and unprofessional operators.
5. Legal risks: If the terms of the transaction contract are not clear, the Company may face legal risks.
Risk control measures
| 1. The Company and its subsidiaries will pay attention to the changes in the exchange rate market, strengthen the study |
of exchange rates, study the
the impact of exchange rate fluctuations on the Company.
2. In order to prevent delayed transaction settlement of forward exchange, the business management departmen
| ts of the Company and its subsidiaries will track the progress of payment and collection, avoid overdue payments, and try to |
reduce the risk to the minimum.
3. The Company and its subsidiaries will strengthen business knowledge training, improve the compre
quality of relevant personnel, and improve the ability to identify and prevent exchange rate risks.
4. The Company has formulated the “Measures for the Administration of Forward Exchange Trading Business (Trial)
| ”, |
which clearly stipulates
the operation must be handled in strict accordance with the requirements of the measurements.Changes in market price or fair valueof invested derivatives during the
| the management principles, management systems, operational processes, risk control, etc., and | |
| reporting period (the specific methods, |
relevant assumptions and parametersused in the analysis of the fair value
The Company’s measurement of Financial Instruments follows the “
Article 22 - Recognition and Measurement of Financial Instruments”,
| and the fair value is basically measured and recognized with reference to bank pricing. During the reporting period, the loss on the change in fair value of forward |
exchange contracts was RMB 56.23 million.
should be disclosed)Whether it is involved in a lawsuit Not applicableDisclosure date of derivativesinvestment approval boardannouncement
May 16, 2023Disclosure date of derivativesinvestment approval shareholdersmeeting announcement
June 29, 2023
Opinions of independent directors onthe Company’s derivatives investmentand risk control
and operation, with the principle of stability, with
| the purpose of currency hedging and avoiding exchange rate risks. By locking in exchange rates to reduce exchange rate fluctuation risks, it will not affect the normal development of the main |
business. The company has formulated the "Management Measures for Forward Foreign E
(Trial)
| " and improved relevant internal control processes. The targeted risk control measures taken by the company are |
feasible, and there are no situations that harm the interests of the company, shareholders, especially small and medium-
provisions of the Company’s relevant rules.
（2） Derivative investment for the purpose of speculation during the reporting period
□ Applicable √ Not applicable
During the reporting period, there was no derivative investment for the purpose of speculation.
5. Use of raised funds
√ Applicable □ Not applicable
(1) Overall use of raised funds
√ Applicable □ Not applicable
Unit: 10,000 RMB
Year
Types ofraised funds
sized shareholders. The review process of this proposal complies with relevant laws and regulations as well as the
Total fundsraised
The usedamount oftotal funds
| raised in the |
currentperiod
Total
raised
The totalamount ofr
| accumulated use of funds | aised funds |
withpurposechanged inreporting
period
Cumulative
of raisedfunds withpurposechanged
Proportion
of totalraisedfunds with
purposechanged
The total
| total amount | amount of |
unusedfunds
The purposeand placementof the unused
funds
Amount of
idle formore thantwo years
2020
Non-public
| funds raised | ||
| offering of |
shares
603,929.76
61,735.01
530,995.08
160,545.86
26.58%
| 2,934.38 | Deposited in a |
dedicated
raised funds
| account for |
Total --603,929.76
61,735.01
530,995.08
160,545.86
26.58%
-- 0
| 2,934.38 |
Description of the overall use of raised funds
1. The board of directors of the Company believes that the Company has disclosed the storage and actual use of the Company’
true, accurate and complete manner in accordance with the “
| Guidelines for the Standardized Operation of Listed Companies on the Shenzhen Stock |
Exchange” and relevant format guidelines. There are no violations in the management of raised funds. The Company has faithfully fulfill
obligation to disclose the investment direction and progress of the raised funds.
2. The net amount of raised funds after deducting other issuance expenses is RMB 5,986.08 million, the actual net amount of r
| aised funds after |
adjustment is RMB 6,039.30 million. The
respectively in 2020, 2021 and 2022, In the half year of 2023, RMB 617.35 million of raised funds were used. As of June 30, 2
| 023, the Company has |
used a total of RMB 5,309.95 million of the raised funds.
(2) Use of the raised funds in committed projects
√ Applicable □ Not applicable
Unit: 10,000 RMBCommitted projects andplacement of extra funds
raised
changed
Totalcommittedinvestment ofraised funds
Adjusted
totalinvestment
(1)
Amountinvestedthis year
Cumulativeinvestmentamount as ofthe end of the
period (2)
Investment
(2)/(1)
| progress as of the end of the period% (3) = | Whether the |
project hasreached theintendedusable state
Benefits
year
Whether itmeets theexpected
return
Whether thefeasibility of
| realized this | the project has |
changedsignificantlyCommitted projectsH series fifth phase, NE1series first phase engineproduction capacityconstruction project
Yes141,568.38 103,313.68 865.59 101,696.60 98.43%Yes 159,608.00
Notapplicable
No
Upgrade Project
Yes 11,505.75 8,251.85 300.61 8,342.63 101.10%Yes
| Crash Laboratory Capacity | Not |
applicable
applicable
NoCD569 production lineconstruction project
Yes 15,576.22 9,418.59 183.36 9,616.63 102.10%Yes 2,284.00
Notapplicable
NoHefei Changan AutomobileCo., Ltd. adjustment andupgrade project
Yes 249,958.06 142,399.78 343.51 133,552.26 93.79%Yes 49,098.00
Notapplicable
NoSupplementary workingcapital
No180,000.00 180,000.00 - 180,000.00 100.00%No
Notapplicable
Notapplicable
NoA new generation ofenergy-saving productstransformation andupgrading projects
No- 160,545.86 60,041.94
Not
97,786.96 60.91%No
Notapplicable
Notapplicable
NoTotal
598,608.41 603,929.76 61,735.01
530,995.08 87.92%-
-
-
-
The reasons for notreaching the plannedprogress or expectedbenefits (by specificprojects)
N/A
Description of major
the project
N/A
| changes in the feasibility of |
| The amount, use and |
progress
funds
Not applicable
Change in implementationlocation of the committedprojects
N/AAdjustment toimplementation method ofcommitted project
N/A
Upfront investment andreplacement of committedprojects
On November 18, 2020, the Ninth Meeting of the Eighth Session of the Board of Directors of the Company reviewed and approved
“Proposal on the Use of Raised Funds to Replace Early Investment in Self-Own Funds”,
| and agreed to use raised funds of RMB |
1,378,818,553.05 to replace pre-invested sell-
Accountants (special general partnership).Use of idle raised funds fortemporary supplement ofworking capital
N/A
raised funds for the project. The replacement of the raised funds has been verified by theErnst & Young Hua Ming (2020) Special Zi No. 60662431_D05 special report issued by Ernst & Young Hua Ming Certified Public
Amount and cause ofsurplus of funds raised for
project implementation
The company originally planned to invest in four fundraising
| Amount and cause of surplus of funds raised for | projects, including the H series phase five, the NE1 series phase I engine |
production capacity construction project, the collision test room capacity upgrade construction project, the CD569 production
construction project, and the adjustment and upgra
| ding project of Hefei Changan Automobile Co., Ltd. Compared with the planning, there |
is some unused founds, mainly because the company has reduced the actual investment amount by means of localized substitution
imported equipment in the process of proje
| ct implementation in order to reduce the impact of the overseas epidemic on the project |
construction cycle.
management has realized the control of the investment scale. According to the company's long-
| term strategic planning and development |
needs at the current stage, after comprehensive research and judgment by the company, in order to further improve the use eff
raised funds, the c
| ompany plans to adjust the investment scale of the original raised funds investment projects, and use the estimated |
surplus funds of RMB 1,605,458,600 for the company's new generation of energy conservation Product transformation and upgradi
project.Th
| ng | |
| e purpose and placement |
of the unused raised funds
Deposited in a dedicated account by the Company for raised funds
of the raised funds
N/A
(3) Changes of projects supported by raised funds
√ Applicable □ Not applicable
Unit: 10,000 RMB
Changed project
Defects and other problemsin utilization and disclosure
The commitment ofthe original project
Totalamount offunds to beinvested inthe project
after thechange (1)
| The amount |
actuallyinvestedduring thereporting
period
Actualcumulativeinvestmentamount asof the end
of theperiod (2)
Investmentprogress as ofthe end of the
period (%)
(3)=(2)/(1)
The date when
the projectreached the
intendedavailability
status
Benefitsachievedduring thereporting
period
Whether the
expectedbenefits havebeen achieved
Significantchanges in thefeasibility of theproject after the
change
A newgeneration ofenergy-savingproductstransformationand upgrading
projects
1. H series fifth phas
e, NE1 series first phase engine production capacity construction project
2. Crash Laboratory
Capacity Upgrade Construction Project
3. CD569 production
line construction project
4. Hefei Changan Au
tomobile Co., Ltd. adjustment and upgrade project
160,545.86
60,041.94
97,786.96
60.91%
In the year of2023
Notapplicable
Not applicable No
合计-- 160,545.86
60,041.94
97,786.96
-- -- --
-- --
Reasons for change, decision-making proceduresand information disclosure (by specific project)
has reduced the actual investment am
| ount through the localization of imported equipment in the project implementation process in order to reduce the investment in the project construction cycle, and at the same |
time, the company has continuously optimized the program in the project construct
control of the scale and rhythm of investment. According to the company’s long-
| term strategic planning and |
the current development needs, after the company’
raised funds investment projects, and the expected balance of RMB 1,605.46 million for the company’
| s new |
generation of energy-saving product transformation and upgrading projects.
2. Decision-
2022, and approved the proposal of “Adjusting and Changing the Use of Part of the Raised Funds”.
| The |
proposal has yet to be submitted to the Company’s General Meeting of Shareholders for consideration.
3. Information disclosure: Please refer to the announcement of “
Raised Funds” (Announcement No.: 2022-23) on http://www.cninfo.com.cn.Reasons for failure to meet the planned schedule orprojected benefits (by project)
Not applicableDescription of significant changes in the feasibilityof the project after the change
Not applicable
VII. Sale of significant Assets and Equity
1. Sale of significant assets
□ Applicable √ Not applicable
2. Sale of significant equity
□ Applicable √ Not applicable
VIII. Analysis of Major Shareholding and Joint Stock Companies
√ Applicable □ Not applicable
Major subsidiaries and joint stock companies that affect the company’s net profit by more than 10%
Unit: 10,000 RMBName Type
Mainbusinesses
Registeredcapital
Totalassets
Net assets
Operatingrevenue
Operatingprofit
NetprofitChangan Ford Automobile Co., Ltd.
Joint StockCompany
Produce and sellauto and parts
24,100USD 3,157,448 233,516 2,176,063 139,605 79,923
Avatr Technology (Chongqing)Co. Ltd.
Joint StockCompany
Produce and sell
auto and parts
164,466 857,468 102,639 224,465 -175,643 -175,646
Deepal Automobile TechnologyCo., Ltd.
Subsidiary
Produce and sell
auto and parts
32,811 1,759,834 -3,805 882,840 -105,900 -105,852
Subsidiaries acquired and sold in the reporting period
√ Applicable □ Not applicable
During the reporting period, Changan Automobile acquired the equity of Deepal Automobile Technology Co., Ltd. fromChongqing Changxin Equity Investment Fund Partnership (Limited Partnership) and Chongqing Liangjiang New Area ChengchengEquity Investment Fund Partnership (Limited Partnership), with a shareholding ratio of 51.00%. It was transferred from a joint ventureto a subsidiary for accounting and included in the consolidation scope.
Name
Acquisition and disposal of subsidiariesduring the reporting period
Impact on overall production,
operation and performanceDeepal Automobile Technology Co., Ltd.
control
Significant impactDescription of major holding and participating companiesAvatr Technology (Chongqing) Co., Ltd., due to the initial introduction of the first high-end product in 2023 and the impact ofindustry price wars, sales did not meet expectations, and it is still in the strategic investment period, with significant resource investment,resulting in increased year-on-year losses in profits. Changan Ford Automobile Co., Ltd. was affected by the contraction of the ICEmarket and the lower-than-expected development of new energy vehicles, resulting in a year-on-year decrease in sales and a decreasein net profit.IX. Structural main business under the company control
□ Applicable √ Not applicable
X. Possible risks and corresponding measuresAt present, the foundation of domestic economy is not stable yet with weak demand. The consumer confidence is yet to be boosted,
especially in major purchases. The recovery of the automobile market still faces pressure.
As for international landscape, the great power and industrial chain competition has intensified with geopolitical conflicts andfrictions, leading to higher risks of local decoupling of the industrial chain and disturbance in the global automotive supply chain.In terms of overseas markets, inflation in advanced economies remains high, the monetary tightening cycle is still ongoing, andeconomic downside risks remain, which may lead to volatility in overseas automobile markets. On the other hand, changes in themonetary policy of major economies increase the risk of fluctuations in RMB exchange rate, which may lead to foreign exchangelosses in product exports.
Under the Third Business Venture — Innovation & Entrepreneurship Program, Changan is committed to promoting the buildingof a new shared community of business and supply ecosystem to integrate the entire industrial chain and reduce supply chain risks. Inoverseas markets, we will accelerate the Vast Ocean Plan to build a new international image and enhance competitiveness through thecomprehensive upgrading of brand power, product power, service level and corporate image.
XI. Reception Research, Communication, Interviews and Other Activities during the ReportingPeriod
Date Reception place Research Type
Type ofResearch
Object
Index
On February 1st, 2023 Chongqing Field research Institution
For details, see the February 2nd, 2023 Shenzhen stockexchange interactive (http://irm.cninfo.com.cn) on theChangan Automobile: February 1st, 2023 investorrelations activities record sheetOn March 3rd, 2023 Chongqing Field research Institution
For details, see the March 7th, 2023 Shenzhen stockexchange interactive (http://irm.cninfo.com.cn) on theChangan Automobile: March 3rd, 2023 investorrelations activities record sheetOn March 16th, 2023 Chongqing Field research Institution
For details, see the March 20th, 2023 Shenzhen stockexchange interactive (http://irm.cninfo.com.cn) on theChangan Automobile: March 16th, 2023 investorrelations activities record sheetOn May 8th, 2023 Oneline
“Panorama RoadShow World” webcast
All investors
For details, see the May 10th, 2023 Shenzhen stockexchange interactive (http://irm.cninfo.com.cn) on theChangan Automobile: May 8th, 2023 investor relationsactivities record sheetOn May 12th, 2023 Chongqing Field research Institution
For details, see the May 16th, 2023 Shenzhen stockexchange interactive (http://irm.cninfo.com.cn) on theChangan Automobile: May 12th, 2023 investorrelations activities record sheetOn May 17th, 2023 Chongqing Field research Institution
For details, see the May 19th, 2023 Shenzhen stockexchange interactive (http://irm.cninfo.com.cn) on theChangan Automobile: May 17th, 2023 investorrelations activities record sheet
On May 30th, 2023 Chongqing Field research Institution
For details, see the June 1st, 2023 Shenzhen stockexchange interactive (http://irm.cninfo.com.cn) on theChangan Automobile: May 30th, 2023 investorrelations activities record sheetOn June 14th, 2023 Chongqing Field research Institution
For details, see the June 17th, 2023 Shenzhen stockexchange interactive (http://irm.cninfo.com.cn) on theChangan Automobile: June 14th, 2023 investorrelations activities record sheetOn June 28th, 2023 Chongqing Field research Institution
For details, see the June 29th, 2023 Shenzhen stockexchange interactive (http://irm.cninfo.com.cn) on theChangan Automobile: June 28th, 2023 investorrelations activities record sheetOn June 29th, 2023 Chongqing Field research Institution
For details, see the June 29th, 2023 Shenzhen stockexchange interactive (http://irm.cninfo.com.cn) on theChangan Automobile: June 29th, 2023 investorrelations activities record sheet
Chapter 4 Corporate Governance
I. Annual Shareholders Meeting and Extraordinary General Meeting during the ReportingPeriod
1. Shareholders meeting during the reporting period
Meeting Session Type
Investors’
Ratio
Opening Time Disclosure TimeMeeting Decision2022 AnnualShareholdersMeeting
Annual 50.620% June 28th, 2023 June 29th, 2023
http//www.cninfo.com.cn2022 Annual Shareholders Meeting ResolutionAnnouncement (Announcement Number: 2023-36)
2. The shareholders of preferred shares with voting right restored request to convene an extraordinary
general meeting
□ Applicable √ Non-applicable
II. Departure and Hiring information of the directors, supervisors and senior manager
√ Available □ Not-available
Name Position Type Date ReasonZhang Fatao Vice President Appointed January 5th, 2023 AppointmentPu Xingchuan
Secretary of Discipline
participationInspection Commission
(Senior ManagementPersonnel)
Appointed March 3rd, 2023 AppointmentJia Lishan Director Elected July 27th, 2023 AppointmentZhao Fei Director Elected July 27th, 2023 AppointmentWen Hong
Chairman of theSupervisory Board,
Supervisor
Elected July 27th, 2023 Appointment
Hua Zhanbiao
Secretary of Discipline
Inspection CommissionInspection Commission
(Senior ManagementPersonnel)
Dismissal from
Employment
March 3rd, 2023 Job changeZhou Kaiquan Director Outgoing May 30th, 2023 Job change
Lian JianChairman of theOutgoing May 31st, 2023 Retirement
Supervisory Board,
SupervisorXian Zhigang Director Outgoing July 27th, 2023 General election
Liu Gang Director Outgoing July 27th, 2023 General electionRen Xiaochang Independent Director
Leave office uponexpiration of term
July 27th, 2023 Leaving office after 6 years of tenureWei Xinjiang Independent Director
Leave office uponexpiration of term
July 27th, 2023 Leaving office after 6 years of tenure
III. Preplan for Company common stock profit distribution and capital reserves convertinginto share capital in the reporting period
□ Applicable √ Non-applicable
The company plans not to distribute cash dividends, not to send bonus shares, not to increase equity by provident fund in the first halfof the year.
IV. Implementation of company equity incentive plans, employee stock incentive plans or otherincentive measures
√ Applicable □ Not-applicable
1. Equity incentive
On July 13th, 2020, the 2nd meeting of the 8
thSession of Board of Directors and the 2nd meeting of the 8th Session of Board ofSupervisors reviewed and approved proposals such as “Proposal on <The Company’s A-Share Restricted Stock Incentive Plan (Draft)>and its Summary” and “Proposal on <The Company's A-Share Restricted Stock Incentive Plan Implementation AssessmentManagement Measures>”. The independent directors expressed their independent agreement on the incentive plan.On February 1st, 2021, the 11th meeting of the 8th Session of Board of Directors and the 7th meeting of the 8th Session of Boardof Supervisors reviewed and approved proposals such as “Proposal on <The Company's A-Share Restricted Stock Incentive Plan(Revised Draft) > and its Summary” and “Proposal on <The Company's A-Share Restricted Stock Incentive Plan ImplementationAssessment Management Measures> (Revision)”. The independent directors expressed their independent agreement on the incentiveplan revision.
On February 18th, 2021, the Company held the first extraordinary general meeting in 2021, and reviewed and approved proposalssuch as “Proposal on <The Company's A-Share Restricted Stock Incentive Plan (Revised Draft) > and its Summary”, “Proposal on<The Company's A-Share Restricted Stock Incentive Plan Implementation Assessment Management Measures (Revision) >” and“Proposal on General Meeting Granting Full Authority to the Board of Directors to Handle Matters Related to Equity Incentives”.On February 22nd, 2021, the Company held the twelfth meeting of the Session of Board of Directors and the 8th meeting of theSession of Board of Supervisors, which reviewed and approved proposals such as “Proposal on Adjusting the List of Incentive Objectsand Incentive Quantity of the A-Share Restricted Stock Incentive Plan under Initial Granting” and "”Proposal on Granting RestrictedStocks for the First Time to Incentive Objects of A-Share Restricted Stock Incentive Plan”. The independent directors expressed theirindependent agreement.
On March 3rd, 2021, the Company completed the registration of restricted stocks and disclosed the “Announcement on theCompletion of the Registration of the Initial Granting of the A-Share Restricted Stock Incentive Plan”. 1,247 people were actuallygranted with 76,195,400 restricted shares. The listing date of restricted shares was March 5, 2021.On August 30th, 2021, the Company held the 25th meeting of the 8th Session of Board of Directors and the 12th meeting of the8th Session of Board of Supervisors, which reviewed and approved the “Proposal on Adjusting the Repurchase Price of A-ShareRestricted Stock Incentive Plan” and “Proposal on Repurchase and Cancellation of Certain Restricted Shares Granted to IncentiveObjects but still with Sales Restriction”. The independent directors expressed independent agreement.
On September 17th, 2021, the Company held the second extraordinary general meeting in 2021, and reviewed and approved the“Proposal on Repurchase and Cancellation of Certain Restricted Shares Granted to Incentive Objects but still with Sales Restriction”.
On November 19th, 2021, the Company held the 29th meeting of the 8th Session of Board of Directors and the 15th meeting ofthe 8th Session of Board of Supervisors, and reviewed and approved the “Proposal on Adjusting the Amount of Reserved A-ShareRestricted Stock Incentive Plan” and “Proposal on Granting Reserved Restricted Stocks to the Incentive Objects of the A-ShareRestricted Stock Incentive Plan”. The independent expressed independent agreement.
On December 21th, 2021, the Company completed the repurchase and cancellation of all 1.036 million restricted shares that hadbeen granted to the original 11 incentive objects but still had sales restrictions.
On December 30th, 2021, the Company completed the registration of the reserved restricted stock and disclosed the“Announcement on the Completion of the Grant of the Reserved A-Share Restricted Stock of the Incentive Plan”; 356 people weregranted with 17,761,200 reserved restricted stocks. The listing date of reserved restricted stocks was December 31th, 2021.
On August 2nd, 2022, the company held the 43rd meeting of the 8th Board of Directors and the 18th meeting of the 8th Board ofSupervisors, and reviewed and approved the Proposal on Adjusting the Repurchase Price of A-share Restricted Stock Incentive Planand Repurchasing and Cancelling Some Restricted Stocks. The independent directors of the company have expressed independentopinions that they agree with.
On August 18th, 2022, the company held the third extraordinary general meeting of shareholders in 2022, and reviewed andapproved the Proposal on Adjusting the Repurchase Price of the A-share Restricted Stock Incentive Plan and Repurchase andCancellation of Some Restricted Stocks.
On February 17th, 2023, the company held the 52nd meeting of the 8th Board of Directors and the 21st meeting of the 8th Boardof Supervisors, and reviewed and approved the Proposal on the Achievements of the First Release of Restriction Conditions during theFirst Grant Period of the A-share Restricted Stock Incentive Plan. The independent directors of the company have expressedindependent opinions that they agree with.
On March 3rd, 2023, the company disclosed the "Indicative Announcement on the Release of Restricted Shares from Listing andCirculation during the First Release Period of the First Grant Part of the A-share Restricted Stock Incentive Plan", and the date ofrelease of restricted shares from listing and circulation was March 6th, 2023.
On June 20th, 2023, the Company completed the repurchase and cancellation of all 2.476 million restricted shares that had beengranted to the original 23 incentive objects but still had sales restrictions.
2. Implementation of employee stock ownership plans
□ Applicable √ Not applicable
3. Other employee incentives
□ Applicable √ Not applicable
Chapter 5 Environment and Social ResponsibilityⅠ. Major Environment ConcernsWhether the listed company and its subsidiaries are reckoned as major pollutant discharging units by environment protectiondepartment or not
√Yes □No
Environmental protection-related policies and industry standards
The company strictly implements the laws, regulations, standards and requirements for environmental protection in its productionand operation. The regulatory standards include Environmental Protection Law of the People’s Republic of China, Law on Air PollutionPrevention and Control, Law of the People’s Republic of China on Prevention and Control of Water Pollution, Law of the People’sRepublic of China on Prevention and Control of Environmental Pollution by Solid Waste, Law of People’s Republic of China onEnvironmental Impact Assessment, etc.
Administrative regulations or rules include Measures for the Administration of Environmental Monitoring, Measures for theAdministration of the List of Key Units of Environmental Supervision, Measures for Enterprise Environmental Credit Evaluation,Administrative Measures for the Legal Disclosure of Enterprise Environmental Information, Contingency Plan for EnvironmentalEmergencies, etc.
National standards include Integrated Wastewater Discharge Standard, Integrated Emission Standard of Air Pollutants, EmissionStandard of Air Pollutants for Foundry Industry, Standard for Fugitive Emission of Volatile Organic Compounds, TechnicalRequirement for Low-Volatile-Organic-Compound-Content Coatings Product, etc. Industry standards include Technical Specificationfor Application and Issuance of Pollutant Permit Automotive Industry, Self-Monitoring Technology Guidelines for Pollution Sources,Technical specification for operation of wastewater online monitoring system (CODCr, NH3-N et al.), Technical guide for leakdetection and repair of volatile organic compounds in industries, etc.
Local standards include Emission standard of Air Pollutants for Surface Coating of Automobile Manufacturing Industry, EmissionStandard of Air Pollutants for Catering Industry, Emission Standard of Air Pollutants for Boilers, etc. The company collects andinterprets the newly released and implemented regulations and standards quarterly and conducts compliance evaluations to ensure thatthe company’s production and operation are always legally compliant.Environmental Protection Administrative License——Administrative License Information for Construction Projects
In the first half of 2023, there will be a total of 4 EIA approval documents for construction projects, as follows:
Name of construction project
Name and document number ofenvironmental impact assessment approval
document
Approval Authority
Approvalacquisition time
Passenger Vehicle Production LineTechnical Transformation Project
| Hefei Changan Automobile Co., Ltd. A158 Series Pure Electric | Approval Opinions on the Environmental |
Impact Report of “
Electric Passenger Vehicle Production Line
| Hefei Changan Automobile Co., Ltd. A158 Series Pure | Hefei Ecology and |
EnvironmentBureau
March 27th, 2023
Technical Transformation Project”(HJS [2023] No. 10020)Sino German Industrial Park OfficeR&D Base Reconstruction Project
Document Approval Letter(YLJHZ [2023] No. 021)
Chongqing Ecology
| Chongqing Construction Project Environmental Impact Assessment | and Environment Bureau (Liangjiang |
New Area Branch)
March 3rd, 2023
Project
| Yubei Factory Replacement and Green Upgrade Construction | Chongqing Construction Project Environmental Impact Assessment |
Document Approval Letter(YSHZ [2023] No. 025)
Chongqing Ecology
Bureau
May 6th, 2023
| and Environment | ||
| Technical Transformation Project of C318 Series New Energy |
Passenger Vehicle Production Lineat Liangjiang Three Factories
Document Approval Letter(YLJHZ [2023] No. 065)
Chongqing Ecology
| Chongqing Construction Project Environmental Impact Assessment | and Environment Bureau (Liangjiang |
New Area Branch)
June 26th, 2023——Information on administrative permission for pollutant discharge
In the first half of 2023, each base involved a total of 3 pollution discharge license documents, including 1 reapplications, 2changes, and no extensions. For details, see the National Pollution Discharge License Management Information Platform athttp://permit.mee.gov.cn.——Other administrative licensing information
None.Industry emission standards and specific conditions of pollutant emissions involved in production and business activities
Name of thecompany orsubsidiary
Main pollutants and specific
pollutants
Discharge
means
Number ofdischargeoutlets
Distributionof discharge
outlets
Dischargeconcentration(mg/L)
Pollutant discharge standards
Totaldischarge(Tons/year)
Totalapproveddischarge(Tons/year)
Excessiveemissions
ChongqingChanganAutomobile
Co., Ltd.Yubei Plant
Wastewater
COD
Intermittentemissions
Two outlets
forworkshopfacilities,and onemain outletfor the Plant
41.78
Integrated Wastewater DischargeStandard（GB8978-1996); TheInfluent Water QualityRequirements set by the YubeiDistrict Sewage Treatment Plant inChongqing
10.27 347.9 —
Ammonianitrogen
2.23 0.46 31.31 —Total nickel 0.09 0.01 0.17 —Total zinc 0.03 0.01 3.48 —Phosphate 0.49 0.04 0.70 —
Exhaust gas
Sulfurdioxide
Organizedemissions
Outletsaround the
Plant
2.92
Emission Standard of Air Pollutantsfor Surface Coating ofAutomobile Manufacturing Industry（DB 50/577-2015);Emission Standards of AirPollutants for Industrial Kiln and
0.82 16.95 —
Nitrogen
oxides
46.49 6.27 75.40 —Particulatematter
0.16 0.29 94.33 —
Volatileorganiccompounds
0.85
Furnace（DB 50/659-2016);Integrated Emission Standards ofAir Pollutants（DB 50/418-2016);Emission Standards of AirPollutants for Boiler（DB 50/658-2016)
1.02 221.21 —
Toluene +Xylene
0.07 0.08 50.00 —
Soil
During the reporting period, the Yubei Plant of Chongqing Changan Automobile Co., Ltd. was included in the List of Key Pollutant DischargeUnits of Chongqing in 2023 with a total of 1,094.97 tons of hazardous waste generated in this period. The 1,094.97 tons have been legally utilizedand disposed of by manufacturers with hazardous waste operation permits, produced 11,641.34 tons of general industrial solid waste and11,271.09 tons of utilization and disposal.
—
ChongqingChanganAutomobile
Co., Ltd.(Liangjiang
Plant,Campus No.
1)
Wastewater
COD
Intermittentemissions
An outlet for
workshopfacilities,and onemain outletfor the Plant
Integrated Wastewater DischargeStandard（GB8978-1996); TheInfluent Water QualityRequirements set by GuoyuangangSewage Treatment Plant inChongqing
4.12 14.02 —
Ammonianitrogen
4.35 0.41 1.40 —Total nickel 0.08 0 0.04 —Total zinc 0 0.08 0.28 —
Exhaust gas
Sulfurdioxide
Organizedemissions
Outletsaround the
Plant
Emission standard of Air Pollutantsfor Surface Coating ofAutomobile Manufacturing Industry（DB 50/577-2015);Emission Standards of AirPollutants for Industrial Kiln andFurnace（DB 50/659-2016);Integrated Emission Standards ofAir Pollutants（DB 50/418-2016);Emission Standards of AirPollutants for Boiler（DB 50/658-2016)
0 1.23 —Nitrogen
oxides
0.16 0 18.23 —Particulatematter
0.17 3.16 36.14 —Volatileorganiccompounds
0.19 5.23 63.06 —Toluene +
xylene
0.01 0.17 2.68 —
Soil
During the reporting period, Liangjiang Plant, Campus No. 1 of Changan Automobile was included in the List of Key Pollutant DischargeUnits of Chongqing in 2023 with a total of 506.73 tons of hazardous waste in this period. A total of 509.90 tons were legally utilized anddisposed of by manufacturers with hazardous waste operation permits, produced 4,386.17 tons of general industrial solid waste and 4,227.98tons of utilization and disposal.
—
ChongqingChanganAutomobile
Co., Ltd.(Liangjiang
Plant,Campus No.
2)
Wastewater
COD
Intermittentemissions
An outlet for
workshopfacilities,and onemain outletfor the Plant
66.56
Integrated Wastewater DischargeStandard（GB8978-1996); TheInfluent Water QualityRequirements set by theGuoyuangang Sewage TreatmentPlant in Chongqing
20.91 46 —
Ammonianitrogen
1.98 0.58 4.6 —Total nickel 0.07 0 0.14 —Total zinc 0.03 0.01 1.38 —Exhaust gas
Sulfurdioxide
Organizedemissions
Outletsaround the
Plant
0.91
Emission standard of Air Pollutantsfor Surface Coating ofAutomobile Manufacturing Industry（DB 50/577-2015);
0.06 4.12 —
Nitrogen
oxides
86.7 15.32 34.72 —
Particulate
matter
7.23
Emission Standards of AirPollutants for Industrial Kiln andFurnace（DB 50/659-2016);Integrated Emission Standards ofAir Pollutants（DB 50/418-2016);Emission Standards of AirPollutants for Boiler（DB 50/658-2016)
14.19 50.61 —
Volatileorganiccompounds
6.67 18.88 543.23 —Toluene +
xylene
0.69 0.40 1.54 —Soil
During the reporting period, Liangjiang Plant, Campus NO. 2 was included in the List of Key Pollutant Discharge Units of Chongqing in 2023with a total of 2,005.66 tons of hazardous waste. The 2,033.62 tons were legally utilized and disposed of by manufacturers with hazardouswaste operation permits, produced 16,699.71 tons of general industrial solid waste and 16,699.71 tons of utilization and disposal.
—
ChongqingChanganAutomobile
Co., Ltd.(Liangjiang
Plant,Campus No.
3)
Wastewater
COD
Intermittentemissions
An outlet for
workshopfacilities,and onemain outletfor the Plant
72.3
Integrated Wastewater DischargeStandard（GB8978-1996); TheInfluent Water QualityRequirements set by theGuoyuangang Sewage TreatmentPlant in Chongqing
13.92 45 —
Total nickel 0.11 0.01 0.1 —Ammonianitrogen
2.38 0.65 4.5 —Total zinc 0 0.02 0.81 —
Exhaust gas
Particulate
matter
Organizedemissions
Outletsaround the
Plant
9.8
Emission standard of Air Pollutantsfor Surface Coating ofAutomobile Manufacturing Industry（DB 50/577-2015);Emission Standards of AirPollutants for Industrial Kiln andFurnace（DB 50/659-2016);Integrated Emission Standards ofAir Pollutants（DB 50/418-2016);Emission Standards of AirPollutants for Boiler（DB 50/658-2016)
5.15 64.24 —
VOCs 7.2 3.59 244.36 —SO2 0 0 5.34 —Toluene +
xylene
0.71 0.51 0.95 —
NOx 64 3.17 24.78 —
Soil
During the reporting period, Liangjiang Plant, Campus NO. 3 was included in the List of Key Pollutant Discharge Units in Chongqing in 2023with a total of 1,036.90 tons of hazardous waste generated in this period. 1,021.50 tons were legally utilized and disposed of by manufacturerswith hazardous waste operation permits, produced 7,486.78 tons of general industrial solid waste and 7,486.78 tons of utilization and disposal.
—ChongqingChanganAutomobileCo., Ltd.(JiangbeiEnginePlant, Plant
No.1）
Wastewater
COD
Intermittentemissions
Main outletfor the Plant
100.61
Integrated Wastewater DischargeStandard（GB8978-1996); TheInfluent Water QualityRequirements set by theGuoyuangang Sewage TreatmentPlant in Chongqing
6.04 22.5 —
Ammonianitrogen（NH3-N）
4.16 0.60 2.25 —
Exhaust gas
Particulate
matter
Organizedemissions
Outletsaround the
Plant
12.43
Emission Standards of AirPollutants for Industrial Kiln andFurnace（DB 50/659-2016);
8.54 — —
SO2 14.47 2.80 — —
VOCs 5.99
Integrated Emission Standards ofAir Pollutants（DB 50/418-2016)
0.62 — —
NOx 23.52 4.70 — —Soil
During the reporting period, Jiangbei Engine Plant, Plant NO. 1 was included in the List of Key Pollutant Discharge Units in Chongqing in2023, and a total of 1,834.49 tons of hazardous waste was generated in this period. 1,834.49 tons were legally utilized and disposed of bymanufacturers with hazardous waste operation permits or exemption certificates, produced 1,390.54 tons of general industrial solid waste and1,390.54 tons of utilization and disposal.
—
ChongqingChanganAutomobile
Co., Ltd.(JiangbeiEnginePlant, Plant
No. 2）
Wastewater
COD
Intermittentemissions
Main outletfor the Plant
88.23
Integrated Wastewater DischargeStandard（GB8978-1996); TheInfluent Water QualityRequirements set by GuoyuangangSewage Treatment Plant inChongqing
4.80 11.08 —
Ammonianitrogen（NH3-N）
0.54 0.48 1.11 —
Exhaust gas
Non-methane
totalhydrocarbons
Organizedemissions
Outletsaround the
factory
1.91
Emission Standards of AirPollutants for Industrial Kiln andFurnace（DB 50/659-2016);Integrated Emission Standards ofAir Pollutants（DB 50/418-2016)
1.95 — —
Nitrogen
oxides
8.18 1.56 — —Particulatematter
10.14 7.87 — —Sulfurdioxide
4.71 0.96 — —
Soil
During the reporting period, Jiangbei Engine Plant, Plant NO. 2 was included in the List of Key Pollutant Discharge units in Chongqing in2023, and a total of 3,995.92 tons of hazardous waste was generated in this period. 3,995.92 tons were legally utilized and disposed of bymanufacturers with hazardous waste operation permits or exemption certificates, produced 323.08 tons of general industrial solid waste and
323.08 tons of utilization and disposal.
—
ChongqingLingyaoAutomobile
Co., Ltd.
Wastewater
COD
Intermittentemissions
An outlet for
workshopfacilities,and twomain outletsfor the Plant
26.58
Integrated Wastewater DischargeStandard（GB8978-1996); TheInlet Water Quality Requirementsset by Guoyuangang SewageTreatment Plant in Chongqing
3.48 25.76 —
Ammonianitrogen
3.34 0.28 3.48 —Total nickel 0 0 — —Total zinc 0.04 0 — —Phosphate 0.09 0.01 0.13 —
Exhaust gas
Particulate
matter
Organizedemissions
Outletsaround thePlant
3.8
Emission standard of Air Pollutantsfor Surface Coating ofAutomobile Manufacturing Industry（DB 50/577-2015);Integrated Emission Standards of
4.08 38.03 —
Volatileorganiccompounds
3.17 3.22 111.4 —
Toluene +
xylene
1.44
Air Pollutants（DB 50/418-2016);Emission Standards of AirPollutants for Boiler（DB 50/658-2016)
0.48 6.46 —
Sulfurdioxide
3L 0 7.12Nitrogen
oxides
10.67 0.29 16.26
Soil
During the reporting period, Chongqing Lingyao Automobile Co., Ltd. (Changan Suzuki) was included in the List of Key Pollutant DischargeUnits in Chongqing in 2023, and a total of 852.04 tons of hazardous waste was generated in this period, 852.04 tons were legally utilized anddisposed of by manufacturers with hazardous waste operation permits or exemption certificates, produced 7,187.50 tons of general industrialsolid waste and 7,187.50 tons of utilization and disposal.
—
ChongqingChanganAutomobile
Co., Ltd.BeijingChanganAutomobileCompany
Wastewater
COD
Intermittentemissions
An outlet for
workshopfacilities,and a mainoutlet for the
Plant
51.2
Integrated Discharge Standard ofWater Pollutants (DB11/307-2013)
9.18 63.68 —
Ammonianitrogen
4.69 1 3.81 —Total nickel 0.0531 0 0.01 —Phosphate 1.368 0.23 / —
Exhaust gas
Nitrogen
oxides
Organizedemissions
Outletsaround the
Plant
9.33
Emission standard of Air Pollutantsfor Surface Coating ofAutomobile Manufacturing Industry(DB11/1227-2015);Integrated Emission Standards ofAir Pollutants（DB11/501-2017）
0.15 3.18 —
Volatileorganiccompounds
2.42 3.25 458.76 —
Soil
During the reporting period, Chongqing Changan Automobile Co., Ltd. Beijing Changan Automobile Company was included in the List of KeyPollutant Discharge units in Beijing in 2023, and a total of 288.34 tons of hazardous waste was generated in this period, 288.34 tons werelegally utilized and disposed of by manufacturers with hazardous waste operation permits or exemption certificates, produced 4,280.03 tons ofgeneral industrial solid waste and 4,280.03 tons of utilization and disposal.
—
HefeiChanganAutomobile
Co., Ltd
Wastewater
COD
Intermittentemissions
Two outlets
forworkshopfacilities,and a mainoutlet for the
Plant
44.38
Integrated Wastewater DischargeStandard（GB8978-1996);The Pipe Standards set by HefeiWest Group Sewage TreatmentPlant
12.17 144.13 —
Totalnitrogen
11.24 3.08 39.44 —Total nickel 0.01 0 0.09 —
Totalphosphorus
0.18 0.05 4.73Ammonianitrogen
0.72 0.198 14.41 —
Exhaust gas
VOCs
Organizedemissions
Outletsaround the
Plant
Emission Control Standard forIndustrial Enterprises VolatileOrganic Compounds of Tianjin（DB12/524-2020）
6.435 1139.6 —
Soil
During the reporting period, Hefei Changan Automobile Co., Ltd. was included in the List of Key Pollutant Discharge Units in Hefei in 2023,and a total of 910.39 tons of hazardous waste was generated in this period, 911.8 tons were legally utilized and disposed of by manufacturerswith hazardous waste operation permits or exemption certificates, produced 13,062.06 tons of general industrial solid waste and 13,062.06 tonsof utilization and disposal.
—
NanjingChanganAutomobile
Co., Ltd.
Wastewater
COD
Intermittentemissions
An outlet for
workshopfacilities,and a mainoutlet for thePlant
37.55
Integrated Wastewater DischargeStandard（GB8978-1996);The Pipe Standards set by NanjingLishui Qinyuan Sewage TreatmentCo., Ltd.
1.47 13.34 —
Totalnitrogen
2.83 0.08 14.24 —Total nickel 0.19 0 0.06
Totalphosphorus
0.19 0.01 0.08 —Ammonianitrogen（NH3-N）
0.94 0.03 0.26 —
Exhaust gas
NOx
Organizedemissions
Outletsaround the
Plant
9.67
Emission standard of Air Pollutantsfor Surface Coating ofAutomobile Manufacturing Industry(DB32/2862 – 2016);Integrated Emission Standards ofAir Pollutants (GB 16297 - 1996);Emission Standards of AirPollutants for Boiler (GB13271-2014)
0.66 8.79 —
Particulatematter
0.6 0.94 10.24 —VOCs 4.3 3.95 38.48 —SO2 3 0.08 53.4 —
Soil
During the reporting period, Nanjing Changan Automobile Co., Ltd. was included in the List of Key Pollutant Discharge Units in Nanjing in2023, and a total of 617 tons of hazardous waste was generated in this period, 642 tons were legally utilized and disposed of by manufacturerswith hazardous waste operation permits or exemption certificates, produced 780 tons of general industrial solid waste and 760 tons ofutilization and disposal.
—
HebeiChanganAutomobile
Co., Ltd
Campus
NO.1
Wastewater
Ammonianitrogen
Intermittentemissions
An outlet for
workshopfacilities,and a mainoutlet for the
Plant
3.1
Integrated wastewater dischargestandard（GB8978-1996);The Influent Water QualityRequirements Set by GezhoubaWater Dingzhou Branch
0.11 4.8 —
COD 115 3.84 63.71 —Totalnitrogen
4.57 0.25 7.32 —Totalphosphorus
0.84 0.04 0.92Total nickel 0 0 0.03 —
Exhaust gas
Sulfurdioxide
Organizedemissions
Outletsaround the
plant
Integrated Emission Standards ofAir Pollutants GB16297-1996;Emission Standards of AirPollutants for Industrial Kiln andFurnace DB1640-2012;
0.18 30.01 —
Non-methane
total
11.61 11.43 570.34 —
hydrocarbon
s
Emission Control Standards forVolatile Organic Compounds byIndustrial Enterprises DB13/2322-2016;Emission Standards of AirPollutants for Boiler（DB13/5161-2020)
Particulatematter
3.53 2.83 53.4 —Nitrogenoxides
14 0.69 31.47 —
Soil
During the reporting period, Hebei Changan Automobile Co., Ltd Campus NO.1 was included in the List of Key Pollutant Discharge Units inDingzhou In 2023, with a total of 325.14 tons of hazardous waste generated in this period, of which 315.18 tons have been legally utilized anddisposed of by suppliers with hazardous waste operation permits, produced 4,147.56 tons of general industrial solid waste and 4,147.56 tons ofutilization and disposal.
—
HebeiChanganAutomobile
Co., Ltd
Campus
NO.2(BaodingChangan
BusManufacturing Co., Ltd)
Wastewater
COD
Intermittentemissions
A workshop
facilitydischargeoutlet, andone factory
totaldischarge
outlet
104.43
Integrated Wastewater DischargeStandard（GB8978-1996);The Influent Water QualityRequirements Set by GezhoubaWater Dingzhou Branch
7.09 72.71 —
Ammonianitrogen
1.36 0.28 4.14 —Totalnitrogen
15.6 0.60 5.51 —Totalphosphorus
1.1 0.18 1Nickel 0.16 0 0.06 —
Exhaust gas
Sulfurdioxide
Organizedemissions
Outletsaround the
plant
Integrated Emission Standards ofAir Pollutants GB16297-1996;Emission Standards of AirPollutants for Industrial Kiln andFurnace DB1640-2012;Emission Control Standards forVolatile Organic Compounds byIndustrial Enterprises DB13/2322-2016;Emission Standards of AirPollutants for Boiler（DB13/5161-2020)
3.94 88.23 —
Nitrogen
oxides
3 4.05 33.75 —Particulatematter
5 8.75 850.8 —Volatileorganiccompounds
6.7 20.88 880.62 —
Soil
During the reporting period, Hebei Changan Automobile Co., Ltd Campus NO.2 (Baoding Changan Bus Manufacturing Co., Ltd) was includedin the List of Key Pollutant Discharge Units in Dingzhou in 2023. A total of 473.79 tons of hazardous waste were generated in this period, and
456.78 tons were legally utilized and disposed of by suppliers with hazardous waste operation permits , produced 5,528.87 tons of general
industrial solid waste and 5,528.87 tons of utilization and disposal.
—
All pollutants are discharged to the standard, and there is no discharge exceeding the standard and the total amount. For details ofthe name, distribution and pollutant discharge of each discharge outlet, please refer to the "National Pollutant Discharge CertificateManagement Information Platform" (Website: http: //permit mee. gov.cn), and "Changan Automobile Brand Official Website" fordetails (Website: https://www.changan.com.cn/sociology?index=2).
Treatment of pollutants
Pollutant type Main processing technology Processing method
Exhaust gas
Spraying VOCs exhaustgas
Venturi wet paint mist treatment+zeolite rotary adsorptionconcentration+TNV incineration; Activated carbonadsorption ; Low temperature plasma
Deal with by oneself orthemselvesDrying VOCs exhaust gas TNV or RTO incineration
Deal with by oneself orthemselvesOther VOCs exhaust gas Activated carbon adsorption
Deal with by oneself orthemselvesTest exhaust gas (nitrogenoxide)
Automotive three-way catalytic converter
Deal with by oneself orthemselvesFoundry dust Bag type dust removal
Deal with by oneself orthemselvesFoundry stench Alkali adsorption or biosorption
Deal with by oneself orthemselvesRefueling mist Mechanical filtration
Deal with by oneself orthemselves
Wastewater
Phosphating waste gas Coagulation sedimentation
Self processing oroutsourcing operationsOily wastewater Oil separation+air flotation
Self processing oroutsourcing operationsComprehensivewastewater
Coagulation sedimentation+aerobic biochemistry
Self processing oroutsourcing operations
Solid waste
Waste solvent Utilization or incineration
Outsourcing utilizationand disposalWet metal chips Utilize
Outsourcing utilizationand disposalAluminum ash, packagingdrum
Utilize
Outsourcing utilizationand disposalWastewater treatmentsludge
Landfill
Outsourcing utilizationand disposalRecyclable generalindustrial solid waste
Utilize
Outsourcing utilizationand disposalOthers Incineration or landfill
Outsourcing utilizationand disposalNoise Mechanical noise Damping and sound insulation
Deal with by oneself orthemselvesIn the first half of 2023, a new set of exhaust gas treatment facilities will be installed in Nanjing Changan and Hefei Changan
respectively. Pollution treatment facilities are included in the preventive maintenance management of equipment like other productionequipment. There are standing books, operating procedures or operation instructions, preventive maintenance procedures, preventivemaintenance plans and implementation records, equipment spot inspection, dosing, slag removal, consumables replacement and otheroperation records. All facilities run normal. Key pollutant discharge units are equipped with automatic monitoring facilities forwastewater and waste gas according to the requirements of the local department of ecological conservation, and entrust a third-partyprofessional company for operation and maintenance. The facilities run normal. There is no abnormal operation of pollution treatmentfacilities in the first half of 2023.Contingency Plan for environmental emergencies
The manufacturing sites, as required, carries out risk assessment of environmental emergencies, emergency resource surveys,formulated or revised contingency plans for environmental emergencies, prepared on-site response plans for units with environmentalrisk, and continuously carried out hidden danger investigation and treatment. In the first half of 2023, Jiangbei Engine Plant (Plot 3)completed the revision and filing of contingency plan for environmental emergencies, as shown in the following table:
Unit Contingency Plan File Code Filing Authority
Plant, Plant No. 2(Plot 3)
| Jiangbei Engine | Chongqing Changan Automobile Co., Ltd. Jiangbei Engine Plant, Plant No. 2 Risk Assessment Report on |
Environmental Emergencies
500128-2023-030-L
Branch)
All bases formulate emergency drill plans in accordance with the requirements of laws and regulations, and carry out emergencydrills as planned, so as to continuously improve the practicality of emergency plans and the emergency handling ability of employees.No environmental emergencies occurred in the first half of 2023.Investment in environmental treatment and protection and payment of environmental protection tax
The company’s environmental protection investment mainly includes: the construction of environmental protection facilities,operation and maintenance of environmental protection facilities, solid waste transportation and disposal (hazardous waste included),sewage treatment, monitoring, revision of contingency plans, purchase of emergency materials, environmental protection tax, etc.
The company paid environmental protection tax of 605,900 yuan in the first half of 2023.Environmental self-monitoring plan
In 2023, key units responsible for pollution discharge of the company prepared self-monitoring plans and carried out self-monitoring in accordance with the requirements of laws and regulations, and disclosed monitoring information on self-monitoring datarelease platforms of various provinces as required by local ecological environment authorities. See the following table for the publicwebsites.
Units
Environmental Self-Monitoring Plan
Disclosure Platform
Website
Chongqing Ecology andEnvironment Bureau(Liangjiang New AreaYubei Plant, Liangjiang Plant, Jiangbei
Engine Plant, Chongqing Lingyao
Key Pollution Source
| Yubei Plant, Liangjiang Plant, Jiangbei | Monitoring Data |
Release Platform
http://119.84.149.34:20003/publish2/dataSearchPub/entList.aspxBeijing Changan Automobile Company
http://xxgk.bevoice.com.cn/monitor-pub/index.do
InstitutionsHefei Changan Automobile Co., Ltd
Anhui Province Discharge Units Self-
Monitoring Information Disclosure Platform
http://39.145.0.253:8081/indexNanjing Changan Automobile Co., Ltd.
Jiangsu Province Discharge Units Self-Monitoring Information Disclosure Platform
http://218.94.78.61:8080/newPub/web/h
ome.htmHebei Changan Automobile Co., Ltd.
National Pollution Source Monitoring
Platform
https://wryjc.cnemc.cn/gkpt/mainZxjc/1
30000Administrative penalties imposed for environmental reasons during the reporting period are shown belowNone.Measures taken to reduce carbon emissions during the reporting period and effects
√ Applicable □Not applicable
Changan’s dual carbon targets: Changan aims to reach carbon peaking by 2027 and carbon neutrality by 2045. By 2025, the carbonintensity per unit of manufacturing will reduce by 30%. By 2030, Changan's supply chain will reduce by 30% compared to 2020.To achieve the carbon peaking and carbon neutrality targets, Changan, in the first half of 2023, has taken solid efforts in energy-saving and carbon-reduction measures in manufacturing, achieving a 7% year-on-year reduction in carbon emission per unit. We carriedout energy mix shifts. The manufacturing bases in Chongqing Yuzui, Hefei and Hebei have built 79 MW of photovoltaic power stations,which generated clean energy for their own use. The total consumption of green electricity throughout the first half of the year stoodat 26 million kWh, with carbon emissions down by 21,000 tons. The planning and construction of photovoltaic plants in ChongqingLingyao and Yubei New Plant, Nanjing New Plant and Beijing Base are carried out in an orderly manner and on schedule, with anexpected new installed capacity of 77MW, 56 million kWh of new green power per year, and 51,000 tons of new carbon reduction peryear. The company will further raise the proportion of green energy use and reduce corporate carbon emissions.The company carries out research on low carbon technology in various areas and has achieved tangible results. In the field ofNEVs, the company focuses on the upgrading of electric drive efficiency, the integration and development of battery systems, and theresearch on energy consumption under all climate and driving conditions to build a new energy power system and provide users witha worry-free mobility experience with low energy consumption in all use scenarios. In terms of new powertrains, the company focuseson multiple energy-saving solutions including high-efficiency engines, high-efficiency e-drives, intelligent plug-in hybrid systems andhydrogen fuel cell engines. We continue to build industry-leading intelligent iDD powertrain and Force Power systems to provide userswith a “high-efficiency, low-carbon and intelligent” driving experience. In the field of new materials, the company has completed 15low-carbon material technology studies, realized the application of various types of low-carbon materials and built the ability tocalculate the carbon footprint of products. The Deepal SL03 was awarded the “2023 China’s leading low-carbon model”.Other environmental protection-related informationIn the first half of 2023, various production bases such as Liangjiang Plant, Jiangbei Engine Plant, Yubei Plant, and ChongqingLingyao carried out environmental credit evaluation work for the year 2022 in accordance with the requirements of the local ecologicaland environmental regulatory authorities.
II. Social Responsibility
Guided by Xi Jinping's Thought of Socialism with Chinese Characteristics for a New Era, Chang An Automobile comprehensivelyimplements the spirit of the 20th CPC National Congress, thoroughly carries out the decision-making and deployment of the CentralCommittee of the Communist Party of China and the State Council on targeted assistance, consolidates the foundation, gives full playto its strengths, adds impetus, pushes forward in a coordinated manner, and adopts multi-measures and concurrent measures tocontinuously improve the quality and effectiveness of its assistance, comprehensively push forward the revitalization of the countryside,carry out the role of the centralized enterprise, and fulfill its political and social responsibilities.
1.Strengthen organizational leadership
1. Held six meetings of the leading group for fixed-point assistance work, studied the annual fixed-point assistance work, and
reviewed the report on the plan of the company's fixed-point assistance in two counties of Yunnan province in 2023.
2. Held the thematic work of fixed-point assistance for rural revitalization six times, determined key assistance projects, studied
programs, formulated measures, and promoted the work.
3. The leaders in charge of the company went to Youyang to carry out thematic education research, and exchanged and discussed
with Chongqing Youzhou Tea Oil Technology Co., Ltd. about the problems and optimization suggestions in the operation of themanagement system.
2.Guarantee assistance funds
A total of 10.6 million yuan of assistance funds were allocated, including 4.6 million yuan in Luxi County and 6 million yuan inYanshan County of Yunnan province, to help rural development, rural construction and rural governance in a solid and orderly manner,making new progress in rural revitalization and taking new steps in agricultural and rural modernization.
3.Promote industrial assistance
Implement the overall plan of the government on the implementation of rural revitalization, continue to do a good job of fixed-point assistance Youyang tea oil project, to improve the management ability as the core, to help build a long-term mechanism ofscientific management system. One is to help marketing and channels. Through the company's sales channels, we helped ChongqingYouzhou Tea Oil Technology Co., Ltd. to achieve sales of 14.54 million yuan, which helped its sales exceed 54.12 million yuan in thefirst half of the year. The second is to enhance the brand and corporate image. “Love has new benefits. Share a Better Life” – ChanganAutomobile cross-border new public welfare activities, held a sustainable development cooperation signing ceremony. CCTV, XinhuaNews Agency, Xinhua net, Global Times, Guangming Daily and other media attended the conference and in print. Changan Automobilewith Chongqing Youzhou Tea Oil Technology Co., Ltd. to the independent zone of high-end national oil brand image respectivelyappeared in Shanghai, Chongqing two international auto show, cross-border new public welfare to expand its influence, to provide helpfor enterprises to bear social responsibility samples. The third is to build a management system, assisting Chongqing Youzhou tea oilTechnology Co., Ltd. to carry out the management system 1.0 publicity and implementation work, promoting the management systemlanding, to promote sustainable development. The fourth is the research of carbon sink methodology. Organize the exchanges of expertsfrom the Ministry of Ecology and Environment, establish the biomass estimation equation and evaluation criteria of Chongqing tea oiltree, establish the carbon sink measurement model, parameter system and measurement standard of tea oil tree, and establish the carbonsink evaluation method system of tea oil trees.
4. Provide consumer assistance
In response to the call of the government, encourage all units of the company and the majority of employees to directly purchaseagricultural products with regional characteristics, and actively participate in the "Central Enterprise Consumption Assistance ActionPlan " activity. Until June 30, complete consumption assistance 1.328,000 yuan, of which 756,000 yuan in two counties in Yunnan and572,000 yuan in other regions, taking concrete actions to promote industrial development in poverty-stricken areas and steadily increasethe incomes of people living out of poverty.
5.Promote skill help
By exploiting the advantages of the automobile industry and taking skills training as the starting point, we conducted 2 expertscampus lectures and 2 social recruitments in Luxi County and Yanshan County of Yunnan Province, recruiting a total of 100 studentsand residents, promoting the employment of rural labor force and helping farmers to increase income and achieve prosperity.
Chapter 6 Important Matters
I. Commitments finished in implementation by the Company, shareholders, actual controller,acquirer, directors, supervisors, senior executives or other related parties in the reportingperiod and commitments unfinished in implementation at the end of the reporting period
√ Applicable □Not applicable
Undertakings Undertaking party
Type ofundertaking
Description Date Duration Performance
Undertakingsmade at the IPOor refinancing
China South Industries GroupCo., Ltd.; China ChanganAutomobile Group Co., Ltd.;Southern Industry AssetManagement Co., Ltd.
Salesrestrictionsfor shares
The shares of ChanganAutomobile subscribed throughthis offering shall not betransferred in any way within 36months after the offering,including but not limited
transfer through the securitiesmarket or by agreement.
October, 2020 36 Months
| to public |
In normalprogress
Whether thepromise isfulfilled asscheduled
Yes
II. Non-operating funds the listed company occupied by controlling shareholders and theirrelated parties
□ Applicable √ Not applicable
During the reporting period, there was no non-operating funds of the listed company occupied by the controlling shareholder andrelated parties.
III. Irregular external guarantee
□ Applicable √ Not applicable
The Company has no irregular external guarantee during the reporting period.IV. Appointment and dismissal of the accounting firm
Is the semi-annual financial report audited?
□ Yes √ No
The company's semi-annual report has not been audited.
V. The board of directors, and supervisors explaining the "nonstandard audit report" from theaccounting firm during the reporting period
□ Applicable √ Not-applicable
VI. The board of directors explaining the "nonstandard audit report" of last year
□ Applicable √ Not-applicable
VII. Bankruptcy and restructuring
□ Applicable √ Not applicable
During the report period, there is no bankruptcy or restructuring.VIII. Crucial litigation events
Crucial litigation and arbitration events
□ Applicable √ Not-applicable
During the report period, the company has no crucial litigation or arbitration events.
Other litigation events
□ Applicable √ Not-applicable
IX. Punishment and rectification
□ Applicable √ Not applicable
X. The integrity of company, its controlling shareholder and actual controller
□ Applicable √ Not applicable
XI. Significant related-party transactions
1. Related-party transactions related to daily operation
√Applicable □Not-applicable
For details, please refer to Note 12 “Related Party Relationships and Transactions” under Chapter 10.
2. Related-party transaction of acquisition or sales of assets or equity
□ Applicable √ Not applicable
3. Related-party transactions of common foreign investment
□ Applicable √ Not applicable
4. Related rights and debt relations
√Applicable □Not-applicable
For details, please refer to Note 12 “Related Party Relationships and Transactions” under Chapter 10.
Whether there is any non-business-related credits and debts
□Yes √ No
There is no non-operating associated credits and debts during the reporting period.
5. Transactions with associated financial companies
√ Applicable □Not applicable
Deposit
Related party Relationship
Maximumdaily depositlimit (RMB:
10,000)
Interest rate
Beginning
10,000)
Amount incurred in the current
period
| balance (RMB: | Ending balance |
(RMB: 10,000)
Total deposit
amount (RMB:
10,000)
Totalwithdrawal
| amount (RMB: | amount (RMB: |
10,000)China SouthIndustriesGroup FinanceCo., Ltd.
A companycontrolled bythe actualcontroller ofChanganAutomobile
2,000,000 0.35%-2.1%1,986,295 15,951,593 15,952,147 1,985,741
ChanganAutomobileFinance Co.,LTD
A companycontrolled bythe actualcontroller ofChanganAutomobile
1,500,000 1.85%-2.25% 1,495,000 580,000 605,0001,470,000
Loan
Related party Relationship
Loan amount(RMB: 10,000)
Interest rate
Beginning
| balance (RMB: |
10,000)
Amount incurred in the current
period
(RMB: 10,000)
Total amount
10,000)
Totalrepayment
| of loan (RMB: | amount (RMB: |
10,000)China SouthIndustriesGroup FinanceCo., Ltd.
A companycontrolled bythe actualcontroller ofChanganAutomobile
50,000 1%-4.75% 6,900 6,000 2,900 10,000
Credit granting or other financial business
Related party Relationship Business
Total amount (RMB:
10,000)
Actual amount incurred(RMB: 10,000)China South Industries A company controlled by
Credit granting1,150,000 294,709
Group Finance Co., Ltd. the actual controller of
Changan Automobile
6. Transactions between the financial company controlled by the company and related parties
□ Applicable √ Not applicable
7. Other significant related-party transactions
□ Applicable √ Not applicable
XII. Major contracts and their performance
1. Custody, contracting and leasing
（1）Custody
□Applicable √ Not-applicable
There is no custody during the reporting period.
（2）Contracting
□Applicable √ Not-applicable
There is no contracting during the reporting period.
（3）Leasing
√Applicable □Not-applicable
Leasing informationLeasing of related parties can be found in Item 5 (2) of Note twelve of Financial Statements “Related Party and RelatedTransactions”.Projects whose profit and loss to the company account for more than 10% of total profits during the reporting period.
□Applicable √ Not-applicable
There was no project whose profit and loss to the company accounted for more than 10% of total profits during the reportingperiod.
2. Guarantee
□Applicable √ Not-applicable
There’s no guarantee during the report period.
3. Entrust wealth management
□Applicable √ Not-applicable
There’s no entrusting wealth management during the reporting period.
4. Other major contracts
□ Applicable √ Not applicable
There are no other major contracts of the Company during the reporting period.XIII. Other important events
√ Applicable □Not applicable
During the reporting period, the company has completed the acquisition of partial equity of Deepal Auto, and its shareholding inDeepal Auto has increased from 40.66% to 51.00%, which has been included in the company's consolidated financial statements sinceFebruary 2023. For specific details, please refer to the "Progress Announcement on Acquiring Partial Equity of Changan New Energy"
(Announcement No. 2023-05) disclosed by the company on February 18th, 2023 on www.cninfo. com. cn.
XIV. Important matters of the Company's subsidiary
□ Applicable √ Not applicable
Chapter 7 Changes in the Shareholding of the Company and
ShareholdersI. Change in shareholdings
1. Change in shareholdings
Unit: One share
Before changeChanges（+，-）After changeQuantity Ratio
Additional
issued
Stockdividend
Providentfund transfer
Other Subtotal Quantity RatioShares with sales restrictions 675,775,474
6.81%
-46,200,160
-46,200,160
629,575,314
6.35%
1. State-owned legal person
shares
515,311,738
5.19%
515,311,738
5.20%
2. Other domestic shares 159,248,366
1.61%
-46,200,160
-46,200,160
113,048,206
1.14%
Including: domestic legalperson shares
domestic natural personshares
159,248,366
1.61%
-46,200,160
-46,200,160
113,048,206
1.14%
3. Foreign shares 1,215,370
0.01%
1,215,370
0.01%
Including: foreign legalpersons shares
foreign natural personshares
1,215,370
0.01%
1,215,370
0.01%
Shares without salesrestrictions
9,246,023,948
93.19%
43,723,738
43,723,738
9,289,747,686
93.65%
1.Ordinary shares
denominated in RMB
7,604,409,171
76.64%
43,723,738
43,723,738
7,648,132,909
77.10%
2. Domestic listed foreign
shares
1,641,614,777
16.55%
1,641,614,777
16.55%
Total shares 9,921,799,422
100.00%
-2,476,422
-2,476,422
9,919,323,000
100.00%
Reasons for share change
√ Applicable □ Not applicable
(1) The first grant of restricted stock incentive plan for A-shares, the first period of lifting restrictions, and the listing and circulation
of restricted shares
On March 6th, 2023, the company's A-share restricted stock incentive plan granted shares for the first time during the first periodof lifting restrictions, and the restricted shares were listed for circulation. A total of 1,210 incentive objects met the conditions for liftingrestrictions this time, The number of restricted stocks that have been lifted from restrictions on sale is 44,275,061 shares (for specific
details, please refer to the "Notice on the Listing and Circulation of Restricted Shares during the First Release Period of the A-shareRestricted Stock Incentive Plan"). The incentive targets for lifting the restrictions on sales this time include some directors and seniormanagement personnel of the company, and the stocks obtained will be locked in accordance with relevant laws and regulations.
(2) Cancellation of partial A-share restricted stock repurchase
On June 20th, 2023, the company completed the repurchase and cancellation of a total of 2,476,422 A-share restricted stocks heldby the original 23 incentive subjects (see the "Announcement on the Completion of Repurchase and Cancellation of Some RestrictedStocks" for details), and the total share capital of the company was reduced from 9,921,799,422 shares to 9,919,323,000 shares.
(3) Other reasons for changes
Other changes in the company's shares with limited sales conditions are caused by changes in the locked shares of supervisors andretired executives.Approval of share change
√ Applicable □ Not applicable
(1) The first grant of restricted stock incentive plan for A-shares, the first period of lifting restrictions, and the listing and circulation
of restricted shares
This matter was reviewed and approved at the 52nd meeting of the 8th Board of Directors and the 21st meeting of the 8th Boardof Supervisors of the company on February 17th, 2023.
(2) Cancellation of partial A-share restricted stock repurchase
This matter was reviewed and approved at the 43rd meeting of the 8th Board of Directors and the 18th meeting of the 8th Boardof Supervisors of the company on August 2nd, 2022, and at the 3rd Extraordinary General Meeting of Shareholders of the company onAugust 18th, 2022.Transfer of shares
√ Applicable □ Not applicable
See Chapter 7, I, 1, "Reasons for share change" for details.Implementation progress of share repurchase
□ Applicable √ Not applicable
Implementation progress of reducing and repurchasing shares by means of centralized bidding
□ Applicable √ Not applicable
Impact of share changes on financial indicators such as basic earnings per share and diluted earnings per share in the latestyear and the latest period, and net assets per share attributable to ordinary shareholders of the company
√ Applicable □ Not applicable
The basic earnings per share at the beginning of the reporting period was RMB 0.60 yuan per share, and at the end of the periodis 0.78 yuan per share. The diluted earnings per share at the beginning of the reporting period was RMB 0.59 yuan per share, and atthe end of the period is 0.76 yuan per share. The net assets per share attributable to ordinary shareholders at the beginning were RMB
6.34 per share, and at the end of the period is RMB 6.85 per share.
Other information deemed necessary by the company or required by securities regulators to disclose
□ Applicable √ Not applicable
2. Changes in restricted shares
√ Applicable □ Not applicable
Unit: share(s)
Name of shareholders
Number ofrestricted sharesat the beginning
of the period
Number of
restriction
| removed during |
Increase during
the reportingperiod
Number of
the end of the
period
Reasons forrestrictions
Date of removal ofsales restriction
the reportingperiodSouthern Industry AssetManagement Co., Ltd.
340,186,916
340,186,916
Non-
| public issuance |
of A shares in 2020
2023-10-26China Changan Automobile GroupCo., Ltd.
170,093,458
170,093,458
Non-
| public issuance |
of A shares in 2020
2023-10-26China South Industries Group Co.,Ltd.
5,031,364
5,031,364
Non-
| public issuance |
of A shares in 2020
2023-10-26
A-share restricted stock 160,418,388
44,275,061
-2,476,422
113,666,905
Equity incentive
first
| time and reserved for the restricted stock is released in three batches. The restriction period of each batch is 24 months, 36 months and 48 months from the date of completion of the corresponding grant registration. The proportion of lifting the |
restricti
March 6th, 2023
Other shareholders 45,348
| on is 33 %, 33 % and 34 % of the total number of shares granted by the incentive object, a total of 44,275,061 shares were granted for the first time during the first period of lifting restrictions, and were listed and circulated on | |||
551,323
596,671
| Locked shares of |
supervisor,senior
stock
| executives and outgoing executives other than Restricted | Lift the sale restriction according to the |
relevant rulesTotal 675,775,474
44,275,061
-1,925,099
629,575,314
-- --
Note: Due to the fact that the 23 original incentive targets in the A-share restricted stock incentive plan no longer meet therequirements for incentive targets, the above "increased number of restricted shares in this period" refers to a total of 2,476,422shares held by the company on June 20th, 2023, which have been granted but have not yet been lifted, and have been repurchased
and cancelled.II. Issuing and listing of securities
□ Applicable √ Not-applicable
III. Shareholding and shareholders of the company
Unit: share(s)At the end of the report period, thetotal number of shareholders
655,768
Number of shareholders holding preference shares withrestored voting rights at the end of the reporting period
Shareholders holding more than 5% of the shares, or top 10 shareholders
Name Nature Percentage
Number of
the end of thereporting period
Increase/decreaseduring theReporting
Period
Number ofshares heldwith salesrestrictions
Number ofshares heldwithout sales
restrictions
Condition ofshares (pledged,labeled or frozen)Status AmountChina Changan Automobile GroupCo., Ltd.
State-ownedlegal person
17.98%
1,783,090,143
1,612,996,685
| 170,093,458 |
Notpledged,
frozen
| labeled or | |
China South Industries Group Co.,Ltd.
State-ownedlegal person
14.22%
1,410,747,155
1,405,715,791
| 5,031,364 |
Southern Industry AssetManagement Co., Ltd.
State-ownedlegal person
5.10%
506,243,257
166,056,341
| 340,186,916 |
China Securities Finance Co., Ltd.
Domesticgeneral legalperson
4.30%
426,362,905
426,362,905
United Prosperity Investment Co.,Ltd.
Foreign legalperson
2.83%
280,498,832
280,498,832
Hong Kong Securities Clearing Co.,Ltd.
Foreign legalperson
1.77%
175,854,458
32,727,549
175,854,458
China
Corporation -
| Huaxia Energy Reform Equity Securities Investment |
Fund
managementproducts, etc.
0.73%
| Funds, wealth |
71,921,430
71,921,430
China Construction BankCorporation - Guangfa ChinaSecurities All Index AutomotiveIndex Initiated SecuritiesInvestment Fund
Funds, wealthmanagementproducts, etc.
0.35%
34,540,666
6,181,800
34,540,666
Xinhua Life Insurance Co., Ltd. -Dividend - Individual Dividend -018L-FH002 Shenzhen
managementproducts, etc.
0.34%
| Funds, wealth |
33,336,801
33,336,801
33,336,801
| China Merchants Securities (HK) |
Co., Ltd.
person
0.33%
| Foreign legal |
33,166,598
-6,739,021
33,166,598
Description of the related party relationship oracting in concert among the above shareholders
Among the top 10 shareholders, the actual controller China South Industries Group Co., Ltd. and its wholly-
Automobile Group Co., Ltd. and its wholly-owned subsidiary United Prosperity Investment Co., Ltd. areparties acting in concert by “Measures for the Administration of Takeover of Listed Companies”.Description of the above-mentioned shareholdersentrusting/being entrusted with voting rights andwaiver of voting rights
NoneShareholdings of the top 10 ordinary shareholders of unrestricted sharesShareholders
owned subsidiary Southern Industry Asset Management Co., Ltd., the controlling shareholder China ChanganNumber of shares without sales
restrictions at the end of thereporting period
Shares typeType NumberChina Changan Automobile Group Co., Ltd. 1,612,996,685
| Number of shares without sales |
RMB ordinary shares 1,612,996,685
China South Industries Group Co., Ltd. 1,405,715,791
RMB ordinary shares 1,405,715,791
China Securities Finance Co., Ltd. 426,362,905
RMB ordinary shares 426,362,905
United Prosperity Investment Co., Limited 280,498,832
Domestic listed foreign shares 280,498,832
Hong Kong Securities Clearing Co., Ltd. 175,854,458
RMB ordinary shares 175,854,458
Southern Industry Asset Management Co., Ltd. 166,056,341
RMB ordinary shares 166,056,341
China Construction Bank Corporation -
| Huaxia |
Energy Reform Equity Securities Investment Fund
71,921,430
RMB ordinary shares 71,921,430
China Construction Bank Corporation -
Initiated Securities Investment Fund
34,540,666
| Guangfa China Securities All Index Automotive Index |
RMB ordinary shares 34,540,666
Xinhua Life Insurance Co., Ltd. - Dividend -Individual Dividend -018L-FH002 Shenzhen
33,336,801
RMB ordinary shares 33,336,801
China Merchants Securities (HK) Co., Ltd. 33,166,598
Domestic listed foreign shares 33,166,598
Description of the related relationship or acting inconcert among the top 10 shareholders ofunrestricted circulating shares, and between the top10 shareholders of unrestricted tradable shares andthe top 10 shareholders
Among the top 10 shareholders, the actual controller China South Industries Group Co., Ltd. and its wholly-
| owned subsidiary Southern Industry Asset Management Co., Ltd., the controlling shareholder China Changan | |
Automobile Group Co., Ltd. and its wholly-owned subsidiary United Prosperity Investment Co., Ltd. areparties acting in concert as stipulated in the “Measures for the Administration of Takeover of ListedCompanies”.Description of the top 10 ordinary shareholdersparticipating in the margin trading and securitieslending business
NoneWhether the top 10 shareholders of ordinary shares, and the top 10 shareholders of ordinary shares without sales restrictions
agreed on the repurchase transactions during the report period
□ Yes √ No
The top 10 shareholders of ordinary shares, and the top 10 shareholders of ordinary shares without sales restrictions did not agreeon the repurchase transactions during the reporting period.IV. Changes in the shareholding of directors, supervisors and senior management
√ Applicable □ Not applicable
Name Duties
status
Number ofshares heldat thebeginningof theperiod(shares)
Increase(shares)
Reduce(shares)
Number ofshares held
| Employment | at the end of |
the period
(shares)
Number ofrestrictedstocks grantedat thebeginning of
the period
(shares)
Number ofrestrictedstocks grantedin the currentperiod (shares)
Number ofrestricted stocksgranted at the endof the period
(shares)
Luo Yan
Employeesupervisor
Incumbent 0
Total 0
Note: The shareholding of other directors, supervisors, and senior management personnel of the company did not change during thereporting period. Please refer to the 2022 annual report for details.V. The change of the controlling shareholders and the actual controllers
During the reporting period the change of controlling shareholders
□ Applicable √ Not-applicable
No changes in controlling shareholders during the reporting period.The change of the actual controllers during the reporting period
□ Applicable √ Not-applicable
No changes in the actual controllers during the reporting period.
Chapter 8 Preferred Shares
□ Available √ Not- available
During the reporting period, there were no preferred shares in the company.
Chapter 9 Bonds
√Available □ Not- available
I. Enterprise Bonds
□Applicable √ Not applicable
No enterprise bonds in the Reporting PeriodII. Corporate Bonds
√Applicable □ Not applicable
1. Basic Information of the Corporate Bonds
Unit: RMB
Bond Name
Abbreviation
BondCode
Date ofissue
Valuedate
MaturityBonds balance
Interest rate
Way of redemption
Trading
placeChongqingChanganAutomobile Co.,
innovationcorporate bonds
| to professional investors in |
2022 ( Phase I )
ChanganK1
148147.SZ
December19th,2022
December20th,2022
December20th,2027
1,000,000,000 3.00%
calculated on an annual
| basis, excluding |
compound interest. The
year, and the principal isrepaid once due. The lastinterest is paid with the
| payment of the |
principal.
ShenzhenStockExchange
Appropriate arrangement of the investors(if any)
This bond is issued to professional institutional investors who open A-share securities accountsin Shenzhen Branch of China Securities Depository and Clearing Co., Ltd. (excluding purchasersprohibited by laws and regulations).Applicable trading mechanism Centralized bidding trade and block tradingRisk of termination of listing transactions(if any) and countermeasures
NoneOverdue bonds
□ Applicable √ Not applicable
2. The Trigger and Execution of the Option Clause of the Issuers or Investors and the Investor Protection Clause
□Applicable √ Not applicable
3. Adjustment of Credit Rating Results during the Reporting Period
□ Applicable √ Not applicable
4. Execution and Changes of Guarantee, Repayment Plan and Other Repayment Guarantee Measures as well as Influence on
Equity of Bond Investors during the Reporting Period
□ Applicable √ Not applicable
III. Debt Financing Instruments of Non-financial Enterprises
□ Applicable √ Not applicable
No such cases in the Reporting Period.IV. Convertible Corporate Bonds
□ Applicable √ Not applicable
No such cases in the Reporting Period.
V. Losses of Scope of Consolidated Financial Statements during the Reporting Period Exceeding10% of Net Assets up the Period-end of Last Year
□ Applicable √ Not applicable
VI. The Major Accounting Data and the Financial Indicators of the Recent 2 Years of theCompany up the Period-end
Unit: 10,000 RMBItems 30 June 2023 31 December 2022 Increase/decreaseCurrent ratio 1.27 1.28 -0.78%Debt/asset ratio 58.90% 56.90% 2.00%Quick ratio 1.16 1.20 -3.33%The reporting period Same period last year Increase/decreaseNet profit after deductingnon-recurring profit or loss
150,905.80 310,011.38 -51.32%Debt/EBITDA ratio 9.04% 9.90% -0.86%Interest cover (times) 181.73 296.09 -38.62%Cash-to-interest cover (times) 188.93 327.08 -42.24%EBITDA-to-interest cover(times)
252.97 431.43 -41.36%Loan repayment rate 100% 100% 0Interest coverage 100% 100% 0
Chapter 10 The Financial Statements
I. Auditing ReportNo audit on the semi-annual financial report.II. Financial statements
Financial in notes to the statements of the unit is: RMB yuan
1. Consolidated Balance Sheet
In RMB YuanAccount 2023.6.30 2023.1.1Current assets:
Cash 65,985,946,564.21
53,530,183,827.34
Trading financial assets 262,239,446.37
280,315,571.09
Notes receivable 33,963,917,823.31 35,849,660,652.96
Accounts receivable
| 2,477,017,799.35 |
3,068,414,415.29
| Prepayments | 662,389,388.99 | 749,572,262.00 |
Other receivables 959,635,940.20 1,261,157,951.14
Including: dividends receivable 180,656,814.04Inventories 10,252,940,583.44
5,823,307,512.90
Contract assets 2,227,324,510.17
458,389,187.10
Assets held for sale 327,144.11
-
Other current assets
1,054,779,668.19
| 1,126,348,926.89 |
Total current assets 117,918,088,127.04 102,075,781,048.01
Non-current assets:
Long-term equity investments 13,788,910,316.27
14,406,662,456.28
Investment in other equity instruments 489,950,000.00
489,950,000.00
Investment properties 6,309,359.26
6,422,715.04
Fixed assets 18,869,352,705.47
19,346,764,691.44
Construction in progress 2,225,500,468.09
1,387,898,218.64
Right-of-use asset 186,760,454.06
100,813,386.01
| Intangible assets | 15,068,479,509.60 | 4,446,385,255.68 |
Development expenditure 1,393,772,255.65
723,211,177.47
Goodwill 1,809,337,918.87
9,804,394.00
Long-term deferred expenses 25,237,506.61
26,375,422.17
Deferred tax assets 3,211,105,057.00
3,028,487,187.18
Total non-current assets 57,074,715,550.88
43,972,774,903.91
TOTAL ASSETS 174,992,803,677.92 146,048,555,951.92
Current liabilities:
Short-term loans
| Short-term loans | 50,000,000.00 | 29,000,000.00 |
Trading financial liabilities 37,813,520.40
-
| Notes payable | 33,712,072,409.02 | 22,072,793,864.83 |
Accounts payable
29,449,664,138.75
| 30,465,634,254.25 |
Contract liability 7,116,078,624.58
5,655,256,792.66
Payroll payable 4,002,974,882.87
2,807,158,489.85
Taxes payable 1,546,790,269.12
1,749,946,082.32
Other payables 8,462,527,432.79
6,082,766,424.67
Including: interest payable 16,112,069.40 1,478,888.85
Dividends payable 2,341,524,610.92 79,742.80Non-current liabilities within one year 69,596,855.90
885,723,901.34
Other current liabilities 7,391,295,648.04
6,627,044,667.62
Total current liabilities 92,854,783,896.97 75,359,354,362.04
Non-current liabilities:
Long-term loans 76,000,000.00
36,000,000.00
Bonds payable 999,558,490.56
999,528,301.88
Lease liability 120,870,028.21
60,205,397.98
| Long-term payables | 136,176,629.42 | 553,518,750.12 |
Long-term payroll payable 32,144,585.90
35,013,000.00
Estimated liabilities 5,663,765,591.18
4,589,299,321.49
Deferred Revenue 350,542,948.42
347,568,549.62
Deferred tax liabilities 1,641,744,451.94
237,036,741.16
| Other non-current liabilities | 1,186,870,228.93 | 882,226,966.14 |
Total non-current liabilities 10,207,672,954.56
7,740,397,028.39
Total liabilities 103,062,456,851.53 83,099,751,390.43
Owners’ equity (or Shareholders’ equity):
Share capital 9,919,323,000.00
9,921,799,422.00
Capital reserves
8,532,806,685.77
| 8,055,341,447.46 |
Less: treasury shares 442,866,474.72
627,060,416.52
Other comprehensive income 146,575,802.76
98,841,615.42
Special reserves 53,566,585.57
24,090,898.05
Surplus reserves 3,528,137,635.53
3,528,137,635.53
| Retained earnings | 46,691,054,344.13 | 41,379,489,865.45 |
Equity attributable to owners
62,858,105,705.70
| 67,951,132,340.73 |
Minority interests
90,698,855.79
| 3,979,214,485.66 |
Total Owners’ equity (or Shareholders’ equity) 71,930,346,826.39
62,948,804,561.49
Liabilities and owners' equity (or shareholders'equity) in total
174,992,803,677.92 146,048,555,951.92Legal person: Zhu Huarong Chief financial officer: Zhang Deyong The head of accounting department: Chen Jianfeng
2. Balance sheet
In RMB YuanAccount 2023.6.30 2023.1.1Current assets:
Cash 49,612,761,169.23
44,742,705,933.76
| Trading financial assets | 262,239,446.37 | 251,165,128.80 |
Notes receivable 30,191,885,135.89 32,497,209,409.96Accounts receivable 9,034,639,091.77 5,538,504,821.82Prepayments 384,123,437.64 519,014,279.72Other receivables 287,117,037.30 859,026,748.64
Including: dividends receivable 180,656,814.04Inventories 3,116,400,210.80 2,872,390,838.54Contract assets 190,244,001.11 221,555,444.48Other current assets 1,585,516.57 199,954,784.05Total current assets 93,080,995,046.68 87,701,527,389.77Non-current assets:
Long-term equity investments 18,677,206,479.38
17,385,137,116.25
Investment in other equity instruments 489,950,000.00
489,950,000.00
| Fixed assets | 13,738,675,532.50 | 14,214,227,798.06 |
Construction in progress 1,302,130,391.01
895,860,965.16
Right-of-use asset 146,496,392.45
78,806,182.57
Intangible assets 3,107,507,892.58
3,299,143,861.49
Development expenditure 842,475,143.40
616,814,902.46
Long-term deferred expenses 23,330,341.50
24,406,892.18
Deferred tax assets 2,742,289,372.93
2,631,189,529.75
Total non-current assets 41,070,061,545.75
39,635,537,247.92
TOTAL ASSETS
127,337,064,637.69
| 134,151,056,592.43 |
Current liabilities:
Notes payable 22,929,207,918.01
18,728,133,049.99
Accounts payable 21,951,564,942.03
21,488,548,997.96
Contract liability 3,889,013,319.36
3,997,514,972.13
Payroll payable 3,205,228,940.22
2,436,938,973.59
Taxes payable 723,833,589.23
1,376,448,691.45
Other payables
5,425,776,798.83
| 6,307,174,533.43 |
Including: interest payable16,022,222.20 1,478,888.85Dividends payable2,341,414,868.12Non-current liabilities within one year 52,058,482.61
635,180,849.52
Other current liabilities 5,933,407,026.04
5,932,680,982.04
| Total current liabilities | 64,991,488,750.93 | 60,021,223,315.51 |
Non-current liabilities:
Long-term loans 76,000,000.00
36,000,000.00
Bonds payable 999,558,490.56
999,528,301.88
Lease liability 94,497,087.94
45,437,270.79
Long-term payables 136,736,360.65
144,571,302.45
Long-term payroll payable 17,938,948.80
20,565,000.00
Estimated liabilities 4,103,060,663.98
3,936,444,965.49
Deferred Revenue 150,000,000.00
150,000,000.00
Deferred tax liabilities 200,127,370.94
195,053,909.31
Other non-current liabilities 999,203,989.60
844,435,549.31
Total non-current liabilities 6,777,122,912.47
6,372,036,299.23
Total liabilities
66,393,259,614.74
| 71,768,611,663.40 |
Owners’ equity (or Shareholders’ equity):
Share capital 9,919,323,000.00
9,921,799,422.00
Capital reserves 8,227,900,416.30
8,047,195,325.61
Less: treasury shares 442,866,474.72
627,060,416.52
Other comprehensive income 157,416,810.63
157,416,810.63
Special reserves 24,136,173.85
10,285,640.79
Surplus reserves 3,528,137,635.53
3,528,137,635.53
Retained earnings 40,968,397,367.44
39,906,030,604.91
Total Owners’ equity (or Shareholders’ equity) 62,382,444,929.03
60,943,805,022.95
Liabilities and owners' equity (or shareholders'equity) in total
134,151,056,592.43 127,337,064,637.69
3. Consolidated Income Statement
In RMB YuanAccount Current Period Prior Period
1.Operating revenue 65,492,098,869.01 56,573,568,393.71Less: Operating cost 54,001,999,268.58 45,360,090,482.20
Tax and surcharges 2,186,174,248.99
1,946,300,231.77
Operating expenses 3,068,434,621.37
2,285,329,821.77
General and administrative expenses 2,271,960,408.55 2,184,034,305.10
Research and development expenses 2,964,604,104.48 1,932,294,144.67
Financial expenses (453,268,104.89) (437,998,348.99)
Interest expense 36,814,471.44 17,892,411.14
Interest income 532,594,819.89 438,428,075.90
Add: Other income 657,988,649.18
186,910,289.65
Investment income 5,023,108,819.32 2,354,040,073.27
Including: Investment income from associates and jointventure
(180,436,966.53) 78,821,605.75
Gains from changes in fair value (23,334,661.15) 26,136,888.77
Credit impairment loss (15,513,488.10) (10,774,686.62)
Asset impairment loss (397,274,160.99) (241,827,585.46)
Gain on disposal of assets 366,667,730.28
68,244,082.28
2.Operating profit 7,063,837,210.47
5,686,246,819.08
Add: Non-operating income 93,295,575.81
54,366,637.51
Less: Non-operating expenses 13,498,961.02
4,870,215.23
3.Total profit 7,143,633,825.26
5,735,743,241.36
Less: Income tax expense 176,620,825.19
(103,280,125.74)
4.Net profit 6,967,013,000.07
5,839,023,367.10
Classification by going concern
Net profit from continuing operations 6,967,013,000.07
5,839,023,367.10
Net profit from discontinued operationsClassification by ownership attributionNet profit attributable to owners 7,652,979,346.80
5,857,626,135.78
Minority interests (685,966,346.73) (18,602,768.68)
5.Other comprehensive income, net of tax 47,734,187.34 121,654.81
| Net after-tax net of other comprehensive income |
attributable to the parent company owner
47,734,187.34 121,654.81
| Other comprehensive income that will be |
reclassified into profit or loss
47,734,187.34 121,654.81
transferred to profit or loss under the equity method
146,228.18
| Other comprehensive income that can be |
Foreign currency financial statement translationdifference
47,734,187.34 (24,573.37)
6.Total comprehensive income 7,014,747,187.41
5,839,145,021.91
Total comprehensive income attributable to owners 7,700,713,534.14
5,857,747,790.59
Total comprehensive income
interest
(685,966,346.73) (18,602,768.68)
7.Earnings per shareBasic earnings per share 0.78 0.60Diluted earnings per share 0.76 0.59Legal person: Zhu Huarong Chief financial officer: Zhang Deyong The head of accounting department: Chen Jianfeng
4. Income Statement
In RMB YuanAccount Current Period Prior Period
1.Operating revenue 54,376,375,197.21 50,290,300,571.12
attributable to minority
Less: Operating cost 45,316,394,387.31 40,914,984,492.63
| Tax and surcharges | 1,453,554,280.40 | 1,434,768,916.69 |
Operating expenses 1,594,619,192.27
1,475,590,737.64
General and administrative expenses 1,686,722,665.70
1,915,207,107.81
Research and development expenses 2,538,873,301.65
1,851,660,640.99
Financial expenses (368,021,413.76) (342,363,432.16)
| Interest expense | 22,584,078.19 | 13,595,854.23 |
Interest income 399,510,519.70
365,385,141.66
Add: Other income 657,920,000.00
54,300,000.00
Investment income 585,161,578.54 986,054,122.33
Including: Investment income from associates andjoint venture
(141,552,078.57) (92,372,274.55)
Gains from changes in fair value 32,897,781.54 26,136,888.77
Credit impairment loss 949,935.35
(286,476.97)
Asset impairment loss (288,325,731.15) (128,723,015.24)
Gain on disposal of assets 365,125,023.58
42,691,501.37
2.Operating profit 3,507,961,371.50
4,020,625,127.78
Add: Non-operating income 81,107,919.29
25,372,227.33
| Less: Non-operating expenses | 11,520,621.79 | 2,696,319.99 |
3.Total profit 3,577,548,669.00
4,043,301,035.12
| Less: Income tax expense | 173,767,038.35 | (136,087,013.13) |
4.Net profit 3,403,781,630.65
4,179,388,048.25
Net profit from continuing operations 3,403,781,630.65
4,179,388,048.25
Net profit from discontinued operations
5.Other comprehensive income, net of tax 146,228.18
6.Total comprehensive income 3,403,781,630.65
4,179,534,276.43
5. Consolidated cash flow statement
In RMB Yuan
Account Current Period Prior Period
1.Cash flows from operating activities:
Cash received from sale of goods or rendering of services 73,931,703,144.09
61,813,960,686.95Refunds of taxes
| 1,199,246,444.10 |
896,338,589.28Cash received relating to other operating activities
1,401,417,655.54Subtotal of cash inflows 76,884,167,984.08 64,111,716,931.77Cash paid for goods and services 54,711,756,692.18
1,753,218,395.89
46,918,151,331.30Cash paid to and on behalf of employees 4,415,366,034.62
3,773,793,442.65Cash paid for all types of taxes
4,028,962,242.26Cash paid relating to other operating activities 5,358,597,538.86
| 5,442,991,004.83 |
3,538,573,495.36Subtotal of cash outflows
58,259,480,511.57Net cash flows from operating activities 6,955,456,713.59 5,852,236,420.20
2.Cashflows from investing activities:
69,928,711,270.49Cash received from investment recovery
| Cash received from investment recovery | 14,839,200.00 |
Cash received from investment income 1,406,842.07
381,628,412.00Net cash received from disposal of fixed assets, intangibleassets and other long-term assets
35,915,330.45
280,603,391.85Cash received relating to other investing activities 6,216,944,276.29
Subtotal of cash inflows 6,254,266,448.81
677,071,003.85Cash paid for acquisition of fixed assets, intangible assets andother long-term assets
857,592,457.14
783,516,340.12Cash paid for acquisition of investments 137,000,000.00
1,461,640,640.00Cash paid relating to other investing activities 815,126,333.76Subtotal of cash outflows 994,592,457.14
3,060,283,313.88
| Net cash flows from investing activities | 5,259,673,991.67 | (2,383,212,310.03) |
3.Cash flows from financing activities:
Absorb cash received from investment 35,190,000.00
Cash received from borrowing 90,000,000.00 68,070,000.00
Cash received relating to other financing activities 362,339,945.61 715,239,432.26
Subtotal of cash inflows
| Subtotal of cash inflows | 487,529,945.61 | 783,309,432.26 |
Cash repayments of borrowings 629,000,000.00 300,903,500.00Cash paid for distribution of dividends or profits and interestexpenses
6,163,524.40 1,797,127,172.44
Cash paid relating to other financing activities 418,524,690.02 699,230,692.02Subtotal of cash outflows 1,053,688,214.42 2,797,261,364.46Net cash flows from financing activities (566,158,268.81) (2,013,951,932.20)
| 4.Effect of changes in exchange rate on cash | 13,258,565.35 | 59,278,475.19 |
5.Net increase in cash and cash equivalents 11,662,231,001.80 1,514,350,653.16Add: Opening balance of cash and cash equivalents 52,491,435,047.74 49,517,916,834.99
6.Closing balance of cash and cash equivalents 64,153,666,049.54 51,032,267,488.15
6. Cash flow statement
In RMB Yuan
| Account | Current Period | Prior Period |
1.Cash flows from operating activities:
Cash received from sale of goods or rendering of services 57,757,311,678.85
51,488,841,934.67
Cash received relating to other operating activities 30,303,650.49 46,609,602.87
Cash received relating to other operating activities 1,828,991,752.50
676,108,022.43
Subtotal of cash inflows
52,211,559,559.97
| 59,616,607,081.84 |
Cash paid for goods and services 42,458,816,511.21
38,192,576,888.27
Cash paid to and on behalf of employees 2,826,100,179.04
2,615,212,696.17
Cash paid for all types of taxes
2,892,112,750.99
| 3,421,770,360.23 |
Cash paid relating to other operating activities 3,661,788,216.38
2,383,343,811.11
Subtotal of cash outflows 52,368,475,266.86 46,083,246,146.54
Net cash flows from operating activities 7,248,131,814.98
6,128,313,413.43
2.Cashflows from investing activities:
Cash received from investment recovery 14,839,200.00
Cash received from return on investments 1,556,842.07
381,628,412.00
Net cash received from disposal of fixed assets, intangibleassets and other long-term assets
8,857,134.39
255,368,088.61
Subtotal of cash inflows 10,413,976.46
651,835,700.61
Cash paid for acquisition of fixed assets, intangible assets andother long-term assets
723,218,813.52
633,161,880.29
Cash paid for acquisition of investments 1,069,135,009.18
1,461,640,640.00
Subtotal of cash outflows 1,792,353,822.70
2,094,802,520.29
Net cash flows from investing activities (1,781,939,846.24) (1,442,966,819.68)
3.Cash flows from financing activities:
| 3.Cash flows from financing activities: |
Cash received from borrowings 40,000,000.00
40,000,000.00
Subtotal of cash inflows 40,000,000.00
40,000,000.00
Cash paid for debt repayment 600,000,000.00
300,000,000.00
Cash paid for distribution of dividends or profits and interestexpenses
3,470,000.00
1,795,680,672.36
Cash paid relating to other financing activities 32,666,733.27
12,551,861.64
| Subtotal of cash outflows | 636,136,733.27 | 2,108,232,534.00 |
Net cash flows from financing activities (596,136,733.27) (2,068,232,534.00)
4.Effect of changes in exchange rate on cash
5.Net increase in cash and cash equivalents 4,870,055,235.47
2,617,114,059.75
Add: Opening balance of cash and cash equivalents 44,732,418,327.28
41,889,838,553.29
6.Closing balance of cash and cash equivalents 49,602,473,562.75 44,506,952,613.04
7. Consolidated statement of changes in shareholders’ equity
Current Period
In RMB YuanItems
Current periodEquity attributable to owners
Minorityinterest
Total equityShare capital Capital reserves
Less: Treasury
shares
Othercomprehensive income
Specialreserve
Surplusreserve
RetainedearningsI. At end of last year9,921,799,422.00 8,532,806,685.77 627,060,416.52 98,841,615.42 24,090,898.05 3,528,137,635.53 41,379,489,865.45 90,698,855.79 62,948,804,561.49II. At beginning of year9,921,799,422.00 8,532,806,685.77 627,060,416.52 98,841,615.42 24,090,898.05 3,528,137,635.53 41,379,489,865.45 90,698,855.79 62,948,804,561.49
III. Changes during the year
(2,476,422.00) (477,465,238.31) (184,193,941.80) 47,734,187.34 29,475,687.52 5,311,564,478.68 3,888,515,629.87 8,981,542,264.90
| 1.Total comprehensive |
income
47,734,187.34 7,652,979,346.80 (685,966,346.73) 7,014,747,187.41
owners and capitaldecreases
(2,476,422.00) (477,465,238.31) (157,449,592.97) (322,492,067.34)
| 2. Capital contributed by |
| (1) Ordinary shares |
invested by owners
(2) The amount of share-
based payment included inowner's equity
187,899,000.00 187,899,000.00
(3) Others
(2,476,422.00) (665,364,238.31) (157,449,592.97) (510,391,067.34)
(26,744,348.83) (2,341,414,868.12) (150,000.00) (2,314,820,519.29)
| 3. Distribution of profit |
| (1) Distribution to |
owners
(26,744,348.83) (2,341,414,868.12) (150,000.00) (2,314,820,519.29)
(2) Others
4.Internal carry forward of
owner's equity
5. Special reserves
29,475,687.52 29,475,687.52
(1) Pick-
period
64,708,453.30 64,708,453.30
| up in current |
| (2) Used in current |
period
(35,232,765.78) (35,232,765.78)
6.Others
4,574,631,976.60 4,574,631,976.60IV. At end of current period9,919,323,000.00 8,055,341,447.46 442,866,474.72 146,575,802.76 53,566,585.57 3,528,137,635.53 46,691,054,344.13 3,979,214,485.66 71,930,346,826.39
Prior period
In RMB YuanItems
Prior periodEquity attributable to owners
Minorityinterest
Total equityShare capital Capital reserves
Less: Treasury
shares
comprehensive income
Specialreserve
Surplusreserve
Retained earningsI. At end of last year7,632,153,402.00 9,776,193,360.38 655,812,327.60 69,442,469.53 27,988,260.61 2,982,292,413.67 35,900,674,525.13 133,307,840.48 55,866,239,944.20
II. At beginning of year7,632,153,402.00 9,776,193,360.38 655,812,327.60 69,442,469.53 27,988,260.61 2,982,292,413.67 35,900,674,525.13 133,307,840.48 55,866,239,944.20
III. Changes during theyear
2,289,646,020.00 (1,433,769,009.30) 121,654.81 21,158,894.87 4,078,769,944.24 (7,729,996.65) 4,948,197,507.97
Other
1.Total comprehensive
income
121,654.81 5,857,626,135.78 (18,602,768.68) 5,839,145,021.91
2. Capital contributed by
| 1.Total comprehensive |
| owners and capital |
decreases
855,877,010.70 855,877,010.70
share-
| based payment included in owner's |
equity
192,310,900.00 192,310,900.00
(2) Others
663,566,110.70 663,566,110.70
(1,778,856,191.54) (1,778,856,191.54)
| 3. Distribution of profit |
| Distribution to |
owners
(1,778,856,191.54) (1,778,856,191.54)
4.Internal carry forward
of owner's equity
2,289,646,020.00 (2,289,646,020.00)
(or share capital)
2,289,646,020.00 (2,289,646,020.00)
5. Special reserves
21,158,894.87 21,158,894.87
Capital reserveconverted into capital
(1) Pick-up in
46,183,489.83 46,183,489.83
| current period |
| (2) Used in current |
period
(25,024,594.96) (25,024,594.96)
10,872,772.03 10,872,772.03
| 6.Others |
| IV. At end of current |
period
9,921,799,422.00 8,342,424,351.08 655,812,327.60 69,564,124.34 49,147,155.48 2,982,292,413.67 39,979,444,469.37 125,577,843.83 60,814,437,452.17
8. Statement of changes in shareholders’ equity
Current Period
In RMB YuanItems
Current periodShare capital Capital reserves
Less: Treasuryshares
Othercomprehensiveincome
Special reserve Surplus reserve Retained earnings Total equityI. At end of last year9,921,799,422.00 8,047,195,325.61 627,060,416.52 157,416,810.63 10,285,640.79 3,528,137,635.53 39,906,030,604.91 60,943,805,022.95
II. At beginning of year9,921,799,422.00 8,047,195,325.61 627,060,416.52 157,416,810.63 10,285,640.79 3,528,137,635.53 39,906,030,604.91 60,943,805,022.95III.
year
(2,476,422.00) 180,705,090.69 (184,193,941.80) 13,850,533.06 1,062,366,762.53 1,438,639,906.08
1.Total comprehensive
income
3,403,781,630.65 3,403,781,630.65
2. Capital contributed by
Changes during theowners and capital
decreases
(2,476,422.00) 180,705,090.69 (157,449,592.97) 335,678,261.66
| owners and capital |
| (1) The amount of |
share-
included in owner's equity
187,899,000.00 187,899,000.00
| based payment |
| (2) Others |
(2,476,422.00) (7,193,909.31) (157,449,592.97) 147,779,261.66
3. Distribution of profit
(26,744,348.83) (2,341,414,868.12) (2,314,670,519.29)
owners
(26,744,348.83) (2,341,414,868.12) (2,314,670,519.29)
(2) Others
4.Internal carry forward of
owner's equity
(1) Distribution to
Capital reserve
converted into capital (orshare capital)
| Capital reserve |
| 5. Special reserves |
13,850,533.06 13,850,533.06
(1) Pick-up in current
period
32,871,513.66 32,871,513.66
period
(19,020,980.60) (19,020,980.60)
6.Disposal of subsidiaries
IV. At end of current period9,919,323,000.00 8,227,900,416.30 442,866,474.72 157,416,810.63 24,136,173.85 3,528,137,635.53 40,968,397,367.44 62,382,444,929.03
Prior period
In RMB YuanItems
Share capital Capital reserves
Less: Treasury
shares
Othercomprehensive income
Special reserve Surplus reserve Retained earnings Total equityI. At end of last year7,632,153,402.00 9,293,065,334.91 655,812,327.60 166,051,336.11 7,552,984.45 2,982,292,413.67 36,887,741,937.47 56,313,045,081.01II. At beginning of year7,632,153,402.00 9,293,065,334.91 655,812,327.60 166,051,336.11 7,552,984.45 2,982,292,413.67 36,887,741,937.47 56,313,045,081.01
Prior periodIII. Changes during the
year
2,289,646,020.00 (1,433,769,009.30) 146,228.18 8,998,316.80 2,280,296,154.31 3,145,317,709.99
| III. Changes during the |
| 1.Total comprehensive |
income
146,228.18 4,179,388,048.25 4,179,534,276.43
decreases
855,877,010.70 855,877,010.70
| 2. Capital contributed by owners and capital |
| (1) The amount of |
share-
equity
192,310,900.00 192,310,900.00
(2) Others
663,566,110.70 663,566,110.70
3. Distribution of profit
(1,778,856,191.54) (1,778,856,191.54)
based paymentincluded in owner'sDistribution to
owners
(1,778,856,191.54) (1,778,856,191.54)
| Distribution to |
| 4.Internal carry forward |
of owner's equity
2,289,646,020.00 (2,289,646,020.00)
(or share capital)
2,289,646,020.00 (2,289,646,020.00)
5. Special reserves
8,998,316.80 8,998,316.80
(1) Pick-
Capital reserveconverted into capitalup in
current period
30,492,980.10 30,492,980.10
| up in |
| (2) Used in current |
period
(21,494,663.30) (21,494,663.30)
subsidiaries
(120,235,702.40) (120,235,702.40)
| .Disposal of |
| IV. At end of current |
period
9,921,799,422.00 7,859,296,325.61 655,812,327.60 166,197,564.29 16,551,301.25 2,982,292,413.67 39,168,038,091.78 59,458,362,791.00
III. CORPORATE INFORMATION
Chongqing Changan Automobile Company Limited (hereafter referred to as “the Company”) is a company limited by shares registeredin Chongqing, People’s Republic of China. It was established on 31 October 1996 with an indefinite business period. The ordinary Ashares of Renminbi issued by the company and the B shares of domestically listed foreign shares have been listed on the ShenzhenStock Exchange. The company is headquartered at 260 Jianxin East Road, Jiangbei District, Chongqing, China, and its office addressis T2 Building, No. 2, Financial City, No. 61 Dongshengmen Road, Jiangbei District, Chongqing, China.
After the establishment of the company, the share capital and shareholding structure have undergone several changes. As of June 30,2023, the company’s controlling shareholder China Changan Automobile Group Company Limited (hereinafter referred to as “ChinaChangan”) and its wholly-owned subsidiary United Prosperity Investment Co., Ltd. held a total of ordinary shares of the company2,063,588,975 shares with an equity ratio of 20.80%. China South Industries Group Co., Ltd. (hereinafter referred to as “China SouthGroup”), the parent company of China Changan, and its wholly-owned subsidiary, South Industries International Holdings (Hong Kong)Company Limited, hold 1,921,622,884 ordinary shares of the company, with a 19.37% shareholding ratio. China Changan and ChinaSouth Group holds ordinary shares 3,985,211,859 in total with a shareholding ratio of 40.18%.
The Company and its subsidiaries collectively refer to as the Group, and its main business activities are: the manufacturing and salesof automobiles (including cars), automobile engine products, and supporting parts.
The holding company and ultimate holding company of the Company are China Changan and China South Group respectively.
The scope of consolidation in the consolidated financial statement is determined based on control. For the consolidation scope of thisyear, please refer to Note VIII.IV. BASIS OF PREPARATION
1. Basis of compilation
The financial statements have been prepared in accordance with Accounting Standards for Business Enterprises-Basic Standard andthe specific standards issued and modified subsequently, and the implementation guidance, interpretations and other relevant provisionsissued subsequently by the MOF (correctly referred to as “Accounting Standards for Business Enterprises”).
1. Going-concern
The financial statements are presented on a going concern basis.
The financial statements have been prepared under the historical cost convention, except for certain financial instruments. If the assetsare impaired, the corresponding provisions should be made accordingly.V. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
According to the actual production and operation characteristics, the group formulated the specific accounting policies and accountingestimates, mainly reflected in provision of accounts receivables, inventory valuation, depreciation of fixed assets, intangible assetsamortization, condition of capitalization of research and development expense and revenue recognition and measurement.
1. Statement of compliance with Accounting Standards for Business Enterprises
The financial statements present fairly and fully, the financial position of the company on 30 June 2023 and the financial results andthe cash flows in the half year of 2023 then ended in accordance with Accounting Standards for Business Enterprises.
2. Accounting year
The accounting year of the Group is from 1 January to 31 December of each calendar year.
3. Functional currency
The Group’s functional and reporting currency is the Renminbi (“RMB”). Unless otherwise stated, the unit of the currency is Yuan.Each entity in the Group determines its own functional currency in accordance with the operating circumstances. At the end of thereporting period, the foreign currency financial statements are translated into the reporting currency of the Company of RMB.
4. Business combination
Business combinations are classified into business combinations involving entities under common control and business combinationsinvolving entities not under common control.
Business combination involving entities under common controlIf the enterprise participating in the merger is ultimately controlled by the same party or the same parties before and after the merger,and the control is not temporary, it is a business merger under the same control.
Assets and liabilities that are obtained by the acquiring party in a business combination involving entities under common control shallbe measured at their carrying amounts at the combination date as recorded by the party being acquired. The difference between thecarrying amount of the net assets obtained and the carrying amount of the consideration paid for the combination (or the aggregate facevalue of shares issued as consideration) shall be adjusted to capital reserve. If the capital reserve is not sufficient to absorb the difference,any excess shall be adjusted against retained earnings.
Business combination involving entities not under common controlIf the enterprise participating in the merger is not ultimately controlled by the same party or the same parties before and after the merger,it is a business merger not under the same control.
The acquirer shall measure the acquiree’s identifiable assets, liabilities and contingent liabilities acquired in the business combinationat their fair values on the acquisition date.
Goodwill is initially recognized and measured at cost, being the excess of the aggregate of the fair value of the consideration transferred(or the fair value of the equity securities issued) and any fair value of the Group’s previously held equity interest in the acquiree overthe Group’s interest in the fair value of the acquiree’s net identifiable assets. After initial recognition, goodwill is measured at costless any accumulated impairment losses. Where the aggregate of the fair value of the consideration transferred (or the fair value ofthe equity securities issued) and any fair value of the Group’s previously held equity interest in the acquiree is lower than the Group’sinterest in the fair value of the acquiree’s net identifiable assets, the Group reassesses the measurement of the fair value of the acquiree’sidentifiable assets, liabilities and contingent liabilities and the fair value of the consideration transferred (or the fair value of the equitysecurities issued), together with the fair value of the Group’s previously held equity interest in the acquiree. If after that reassessment,the aggregate of the fair value of the consideration transferred (or the fair value of the equity securities issued) and the Group’spreviously held equity interest in the acquiree is still lower than the Group’s interest in the fair value of the acquiree’s net identifiableassets, the Group recognize the remaining difference in profit or loss.
5. Consolidated financial statements
The scope of the consolidated financial statements, which include the financial statements of the Company and all of its subsidiaries,is determined on the basis of control. A subsidiary is an entity that is controlled by the Company (such as an enterprise, a deemedseparate entity, or a structured entity controlled by the Company).
In the preparation of the consolidated financial statements, the financial statements of the subsidiaries are prepared for the samereporting period as the Company, using consistent accounting policies. All intra-group assets and liabilities, equity, income, expensesand cash flows relating to transactions between members of the Group are eliminated in full on consolidation.
When the current loss belong to minorities of the subsidiary exceeds the beginning equity of the subsidiary belong to minorities, theexceeded part will still deduct the equity belong to minorities.
With respect to subsidiaries acquired through business combinations involving entities not under common control, the operating resultsand cash flows of the acquiree should be included in the consolidated financial statements, from the day that the Group gains control,till the Group ceases the control of it. While preparing the consolidated financial statements, the acquirer should adjust the subsidiary’sfinancial statements, on the basis of the fair values of the identifiable assets, liabilities and contingent liabilities recognized on theacquisition date.
With respect to subsidiaries acquired through business combinations involving entities under common control, the operating resultsand cash flows of the acquiree should be included in the consolidated financial statements from the beginning of the period in whichthe combination occurs.
If the changes of relevant facts and circumstances will result in the changes of one or more control elements, then the Group shouldreassess whether it has taken control of the investee.
6. Joint venture arrangement classification and joint operation
Joint venture arrangements are classified into joint operation and joint venture. Joint operation refers to those joint venture arrangements,relevant assets and liabilities of which are enjoyed and assumed by the joint ventures. Joint ventures refer to those joint venturearrangements, only the right to net assets of which is enjoyed by the joint ventures.
Any joint venture shall recognize the following items related to its share of benefits in the joint operation and conduct accountingtreatment in accordance with relevant accounting standards for business enterprises: assets it solely holds and its share of jointly-heldassets based on its percentage; liabilities it solely assumes and its share of jointly-assumed liabilities based on its percentage; incomesfrom sale of output enjoyed by it from the joint operation; incomes from sale of output from the joint operation based on its percentage;and separate costs and costs for the joint operation based on its percentage.
7. Cash and cash equivalents
Cash comprises cash on hand and bank deposits which can be used for payment at any time; Cash equivalents are short-term, highlyliquid investments held by the Group, that are readily convertible to known amounts of cash and which are subject to an insignificantrisk of changes in value.
8. Foreign currency translation
The Group translates the amount of foreign currency transactions occurred into functional currency.
The foreign currency transactions are recorded, on initial recognition in the functional currency, by applying to the foreign currencyamount at the spot exchange rate on the transaction dates. Foreign currency monetary items are translated using the spot exchange ratequoted by the People’s Bank of China at the balance sheet date. The exchange gains or losses arising from occurrence of transactionsand exchange of currencies, except for those relating to foreign currency borrowings specifically for construction and acquisition offixed assets capitalized, are dealt with in the profit and loss accounts. Non-monetary foreign currency items measured at historical costremain to be translated at the spot exchange rate prevailing on the transaction date, and the amount denominated in the functionalcurrency should not be changed. Non-monetary foreign currency items measured at fair value should be translated at the spot exchangerate prevailing on the date when the fair values are determined. The exchange difference thus resulted should be charged to the currentincome or other comprehensive income account of the current period.
When preparing consolidated financial statements, the financial statements of the subsidiaries presented in foreign currencies aretranslated into Renminbi as follows: asset and liability accounts are translated into Renminbi at exchange rates ruling at the balancesheet date; shareholders’ equity accounts other than retained profits are translated into Renminbi at the applicable exchange rates rulingat the transaction dates; income and expense in income statement are translated into Renminbi average exchange rate of the period inwhich the transaction occurred (unless the exchange rate fluctuation makes it inappropriate to adopt this exchange rate for conversion,the spot exchange rate on the date of cash flow shall be adopted for conversion); total difference between translated assets and translatedliabilities and shareholders’ equity is separately listed as “foreign currency exchange differences” below retained profits. The translationdifference arising from the settlement of oversea subsidiaries is charged to the current liquidation profit and loss in proportion to thesettlement ratio of the assets concerned.
Foreign currency cash flows and the cash flows of foreign subsidiaries should be translated using the average exchange rate prevailingon the transaction month during which the cash flows occur (unless the exchange rate fluctuation makes it inappropriate to adopt thisexchange rate for conversion, the spot exchange rate on the date of cash flow shall be adopted for conversion). The amount of the effecton the cash arising from the change in the exchange rate should be separately presented as an adjustment item in the cash flow statement.
9. Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument ofanother entity.
Recognition and derecognition
The Group recognizes a financial asset or a financial liability, when the Group becomes a party to the contractual provision of theinstrument.
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognized(i.e., removed from the Group’s consolidated balance sheet) when:
1) the rights to receive cash flows from the financial asset have expired;
2) the Group has transferred its rights to receive cash flows from the financial asset, or has assumed an obligation to pay the received
cash flows in full without material delay to a third party under a “pass-through” arrangement; and either (a) has transferred substantially
all the risks and rewards of the financial asset, or (b) has neither transferred nor retained substantially all the risks and rewards of theasset, but has transferred control of the financial asset.
A financial liability is derecognized when the obligation under the liability is discharged or cancelled, or expires. When an existingfinancial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability aresubstantially modified, such an exchange or modification is treated as a derecognition of the original liability and a recognition of anew liability, and the difference between the respective carrying amounts is recognized in profit or loss.
Regular way purchases and sales of financial assets are recognized and derecognized using trade date accounting. Regular waypurchases or sales are purchases or sales of financial assets that require delivery within the period generally established by regulationor convention in the marketplace. The trade date is the date that the Group committed to purchase or sell a financial asset.
Classification and measurement of financial assets
The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and theGroup’s business model for managing them: financial assets measured at amortized cost, financial assets measured at fair value withchanges included in other comprehensive income, and financial assets measured at fair value with changes included in current profitand loss. All affected related financial assets are reclassified when and only when the group changes its business model for managingfinancial assets.
Financial assets are measured at fair value on initial recognition, but accounts receivable or notes receivable arising from the sale ofgoods or rendering of services that do not contain significant financing components or for which the Group has applied the practicalexpedient of not adjusting the effect of a significant financing component due within one year, are initially measured at the transactionprice.
For financial assets at fair value through profit or loss, relevant transaction costs are directly recognized in profit or loss, and transactioncosts relating to other financial
The subsequent measurement of financial assets depends on their classification as follows:
Debt investments measured at amortized costThe Group measures financial assets at amortized cost if both of the following conditions are met: the financial asset is held within abusiness model with the objective to hold financial assets in order to collect contractual cash flows; the contractual terms of the financialasset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.Financial assets at amortized cost are subsequently measured using the effective interest method. Gains and losses are recognized inprofit or loss when the asset is derecognized, modified or impaired.
Debt investments at fair value through other comprehensive incomeThe Group measures debt investments at fair value through other comprehensive income if both of the following conditions are met:
the financial asset is held within a business model with the objective of both holding to collect contractual cash flows and selling; thecontractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest onthe principal amount outstanding. Interest income is recognized using the effective interest method. The interest income, impairmentlosses and foreign exchange revaluation are recognized in profit or loss. The remaining fair value changes are recognized in othercomprehensive income. Upon derecognition, the cumulative fair value change recognized in other comprehensive income is recycledto profit or loss.
Equity investments at fair value through other comprehensive incomeThe Group can elect to classify irrevocably its equity investments which are not held for trading as equity investments designated atfair value through other comprehensive income. Only the relevant dividend income (excluding the dividend income explicitly recoveredas part of the investment cost) is recognized in profit or loss. Subsequent changes in the fair value are included in other comprehensiveincome,and no provision for impairment is made. When the financial asset is derecognized, the accumulated gains or losses previously includedin other comprehensive income are transferred from other comprehensive income to retained earnings.
Financial assets at fair value through profit or lossThe financial assets other than the above financial assets measured at amortized cost and financial assets at fair value through othercomprehensive income are classified as financial assets at fair value through profit or loss. Such financial assets are subsequentlymeasured at fair value with net changes in fair value recognized in profit or loss.
Classification and measurement of financial liabilities
Financial liabilities are classified as: financial liabilities measured at fair value through profit or loss, and other financial liabilitiesmeasured at amortized cost. For financial liabilities measured at fair value and whose changes are included in the current profit andloss, the relevant transaction costs are directly included in the current profit and loss, and the relevant transaction costs of other financialliabilities measured at amortized cost are included in their initial recognition amount.
The subsequent measurement of financial liabilities depends on their classification as follows:
Financial liabilities at fair value through profit or lossFinancial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designatedupon initial recognition as at fair value through profit or loss. Financial liabilities held for trading are subsequently measured at fairvalue with net changes in fair value recognized in profit or loss. Gains or losses on liabilities designated at fair value through profit orloss are recognized in profit or loss, except for the gains or losses arising from the Group’s own credit risk which are presented in othercomprehensive income with no subsequent reclassification to profit or loss.
Financial liabilities measured at amortized costOther financial liabilities are subsequently measured at amortized cost using the effective interest method.
Impairment of financial assets
On the basis of expected credit loss, the Group carries out impairment treatment on financial assets, measured at amortized cost andcontract assets and recognizes loss reserves
For receivables and contract assets that do not contain significant financing components, the Group uses a simplified measurementmethod to measure the loss provision based on the expected credit loss amount for the entire duration.
For financial assets other than the simplified measurement method mentioned above, the Group assesses on each balance sheet datewhether its credit risk has not increased significantly since initial recognition, it is in the first stage. The Group measures the lossprovision based on the amount equivalent to the expected credit loss in the next 12 months, and calculates the interest income basedon the book balance and the actual interest rate; if the credit risk has increased significantly since initial recognition but has not yetsuffered credit impairment, it is in the second at this stage, the Group measures the loss provision based on the amount equivalent tothe expected credit loss for the entire duration, and calculates the interest income based on the book balance and the actual interest rate;If credit impairment occurs after initial recognition, it is in the third stage. The amount of expected credit losses is measured over theentire duration of the loss allowance, and interest income is calculated based on amortized cost and effective interest rate. For financialinstruments with low credit risk on the balance sheet date, the Group assumes that their credit risk has not increased significantly sinceinitial recognition.
The Group assesses the expected credit losses of financial instruments based on individual items and portfolios. The Group hasconsidered the credit risk characteristics of different customers and evaluated the expected credit losses of accounts receivable andother receivables based on the ageing combination.
Please refer to Note VII,3 for the disclosure of the Group’s judgment criteria for significant increase in credit risk and the definition ofcredit impairment assets that have occurred.
The factors reflected in the group's method of measuring expected credit losses on financial instruments include the unbiased probabilityweighted average amount determined by evaluating a series of possible results, the time value of money, and reasonable and evidentiaryinformation on past events, current conditions and forecasts of future economic conditions available at the balance sheet date withoutunnecessary additional costs or efforts.
When the Group no longer reasonably expects to be able to fully or partially recover the contractual cash flows of financial assets, theGroup directly writes down the book balance of the financial asset.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceablelegal right to offset the recognized amounts; and there is an intention to settle on a net basis, or to realize the assets and settle theliabilities simultaneously.
Transfer of financial assets
If the Group transfers substantially all the risks and rewards of ownership of the financial asset, the Group derecognizes the financial
asset; and if the Group retains substantially all the risks and rewards of the financial asset, the Group does not derecognize the financialasset.
If the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset, the Group determineswhether it has retained control of the financial asset. In this case: (i) if the Group has not retained control, it derecognizes the financialasset and recognize separately as assets or liabilities any rights and obligations created not retained in the transfer; (ii) if the Group hasretained control, it continues to recognize the financial asset to the extent of its continuing involvement in the transferred financial assetand recognizes an associated liability.
10. Inventories
Inventory includes raw materials, goods in transit, work in progress, finished goods, consigned processing materials, low-valueconsumables.
Inventory is initially carried at the actual cost. Inventory costs comprise all costs of purchase, costs of conversion and other costsincurred in bringing the inventory to its present location and condition. Weighted average method is assigned to the determination ofactual costs of inventories. One-off writing off method is adopted in amortization of low-value consumables.
The Group applies a perpetual counting method of inventory.
At the balance sheet date, the inventory is stated at the lower of cost and net realizable value. If the cost is higher than the net realizablevalue, provision for the inventory should be made through profit or loss.
Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and theestimated costs necessary to make the sale. The impairment provision should be made on a basis of each item of inventories accordingto the difference between cost and net realizable value. For large numbers of inventories at relatively low unit prices, the provision forloss on decline in value of inventories should be made by category.
11.Assets held for sale
The group divides non current assets or asset groups that meet the following conditions into held for sale categories:
1) In accordance with the practice of selling such assets or groups of assets in similar transactions, they can be sold immediately
under current conditions;
2) The sale is likely to occur, that is, the group has made a decision on a sale plan and obtained a definite purchase commitment, and
the sale is expected to be completed within one year.
If the book value of non current assets (excluding financial assets, deferred income tax assets and assets formed by employeeremuneration) or disposal groups held for sale is higher than the net value of fair value minus selling expenses, the book value shallbe written down to the net value of fair value minus selling expenses, and the amount written down shall be recognized as assetimpairment losses and included in the current profits and losses. At the same time, provision for impairment of assets held for saleshall be made.
Non current assets held for sale or non current assets in the disposal group are not depreciated or amortized, and interest and otherexpenses on liabilities in the disposal group held for sale continue to be recognized.
When non current assets or disposal groups no longer meet the criteria for the classification of held for sale categories, the group willno longer continue to classify them as held for sale categories or remove noncurrent assets from the disposal groups held for sale, andwill measure them according to the lower of the following:
1) The book value before being classified as held for sale is adjusted according to the depreciation, amortization or impairment that
should have been recognized under the assumption that it is not classified as held for sale;
2) Recoverable amount.
12. Long-term equity investments
Long-term equity investments include investments in subsidiaries, joint ventures and associates.
Long-term equity investments are recognized at initial investment cost upon acquisition. For a long-term equity investment acquiredthrough a business combination under common control, the initial investment cost of the long-term equity investment shall be theabsorbing party’s share of the carrying amount of the owners’ equity of the party being absorbed in the consolidated financial statementsof the ultimate controlling party at combination date. The difference between the initial investment cost and the carrying amount ofcash paid, non-cash assets transferred and liabilities assumed shall be adjusted to capital reserve. If the balance of capital reserve is notsufficient, any excess shall be adjusted to retained earnings. Any other comprehensive income previously recognized shall be accountedfor on the same basis as would have been required if the investee had directly disposed of the related assets or liabilities. The portionrecognized based on changes in the investee’s equity (other than net profit or loss, other comprehensive income and profit appropriation)is charged to profit or loss upon disposal of such long-term equity investment. For those partially disposed equity investments, gainsor losses upon disposal are proportionately recognized in profit or loss when they still constitute long-term equity investments after thedisposal and are fully charged to profit or loss when they are reclassified to financial instruments after the disposal. For businesscombination involving entities not under common control, the initial investment cost should be the cost of acquisition (for stepacquisitions not under common control, the initial investment cost is the sum of the carrying amount of the equity investment in theacquiree held before the acquisition date and the additional investment cost paid on the acquisition date), which is the sum of the fairvalue of assets transferred, liabilities incurred or assumed and equity instruments issued. If the equity investments in the acquireeinvolve other comprehensive income prior to the acquisition date, when disposing of the investments, the relevant other comprehensiveincome will be accounted for on the same basis as would have been required if the investee had directly disposed of the related assetsor liabilities. The portion recognized based on changes in the investee’s equity (other than net profit or loss, other comprehensiveincome and profit appropriation) is charged to profit or loss upon disposal of such long-term equity investment. The initial investmentcost of a long-term equity investment acquired otherwise than through a business combination shall be determined as follows: for along-term equity investment acquired by paying cash, the initial investment cost shall be the actual purchase price has been paid plusthose costs, taxes and other necessary expenditures directly attributable to the acquisition of the long-term equity investment; for thoseacquired by the issue of equity securities, the initial investment cost shall be the fair value of the equity securities issued.
The Company adopted cost method to account for long-term investments in the subsidiaries in the separate financial statements of theCompany. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
Under cost method, the long-term equity investment is valued at the cost of the initial investment. The cost of long-term equityinvestment should be adjusted in case of additional investment or disinvestments. When cash dividends or profits are declared by theinvested enterprise is recognized as investment income in current period.
The equity method is applied to account for long-term equity investments, when the Group has jointly control, or significant influenceon the investee enterprise. Joint control is the contractually agreed sharing of control over an economic activity, and exists only whenthe strategic financial and operating decisions relating to the activity require the unanimous consent of the parties sharing control (theventures). Significant influence is the power to participate in the financial and operating policy decisions of an economic activity butis not control or joint control over those policies.
Under equity method, when the initial investment cost of a long-term equity investment exceeds the investing enterprise’s interest inthe fair values of the investee’s identifiable net assets at the acquisition date, the difference is accounted for as an initial cost. As to theinitial investment cost is less than the investing enterprise’s interest in the fair values of the investee’s identifiable net assets at theacquisition date, the difference shall be charged to the income statement for the current period, and the cost of the long-term equityinvestment shall be adjusted accordingly.
Under equity method, the Group recognizes its share of post-acquisition equity in the investee enterprise for the current period as again or loss on investment, and also increases or decreases the carrying amount of the investment. When recognizing its share in thenet profit or loss of the investee entities, the Group should, based on the fair values of the identifiable assets of the investee entity whenthe investment is acquired, in accordance with the Group’s accounting policies and periods, after eliminating the portion of the profitsor losses, arising from internal transactions with joint ventures and associates, attributable to the investing entity according to the shareratio (but losses arising from internal transactions that belong to losses on the impairment of assets, should be recognized in full),recognize the net profit of the investee entity after making appropriate adjustments. The book value of the investment is reduced to theextent that the Group’s share of the profit or cash dividend declared to be distributed by the investee enterprise. However, the share ofnet loss is only recognized to the extent that the book value of the investment is reduced to zero, except to the extent that the Grouphas incurred obligations to assume additional losses. The Group shall adjust the carrying amount of the long-term equity investmentfor other changes in owners’ equity of the investee enterprise (other than net profits or losses), and include the correspondingadjustments in equity, which should be realized through profit or loss in subsequent settlement of the respective long-term investment.
On settlement of a long-term equity investment, the difference between the proceeds actually received and the carrying amount shallbe recognized in the income statement for the current period. As to other comprehensive income recognized based on measurement ofthe original equity investment by employing the equity method, accounting treatment shall be made on the same basis as would berequired if the invested entity had directly disposed of the assets or liabilities related thereto when measurement by employing theequity method is terminated. As to any change in owners' equity of the invested entity other than net profit or loss, other comprehensiveincome and profit distribution, the investing party shall be transferred to the income statement for the current period. If the remainingequities still be measured under the equity method, accumulative change previously recorded in other comprehensive income shall be
transferred to current profit or loss, in measurement on the same basis as the invested entity had directly disposed of the assets orliabilities related thereto. The income or loss recorded in the equity directly should been transferred to the current income statement onsettlement of the equity investment on the disposal proportion.
13. Investment property
Investment property are properties held to earn rentals or for capital appreciation, or both, including rented land use right, land useright which is held and prepared for transfer after appreciation, and rented building.
The initial measurement of the investment property shall be measured at its actual cost. The follow-up expenses pertinent to aninvestment property shall be included in the cost of the investment property, if the economic benefits pertinent to this real estate arelikely to flow into the enterprise, and, the cost of the investment property can be reliably measured. Otherwise, they should be includedin the current profits and losses upon occurrence.
The Group adopts the cost method to make follow-up measurement to the investment property. The buildings are depreciated understraight-line method.
14. Fixed assets
A fixed asset probably shall be recognized only when the economic benefits associated with the asset will flow to the Group and thecost of the asset can be measured reliably. Subsequent expenditure incurred for a fixed asset that meet the recognition criteria shall beincluded in the cost of the fixed asset, and the book value of the component of the fixed asset that is replaced shall be derecognized.Otherwise, such expenditure shall be recognized in the income statement in the period during which they are incurred.
Fixed assets are initially measured at actual cost on acquisition. The cost of a purchased fixed asset comprises the purchase price,relevant taxes and any directly attributable expenditure for bringing the asset to working condition for its intended use, such as deliveryand handling costs, installation costs and other surcharges.
Fixed assets are depreciated on straight-line basis. The estimated useful lives estimated residual values and annual depreciation ratesfor each category of fixed assets are as follows:
Category Deprecation period Residual rate (%) Yearly deprecation rate (%)
| Buildings | 20 to 35 years | 3% | 2.77%-4.85% |
| Machinery (Note) | 5 to 20 years | 3% | 4.85%-19.40% |
Vehicles 4 to 10 years 3% 9.70%-24.25%
| Others | 3 to 21 years | 3% | 4.62%-32.33% |
Note: the molds in machinery should be depreciated in units-of-production method.The Group reviews the useful life and estimated net residual value of a fixed asset and the depreciation method applied at least at theend of each year and makes adjustments if necessary.
15. Construction in progress
The cost of construction in progress is determined according to the actual expenditure for the construction, including all necessaryconstruction expenditure incurred during the construction period, borrowing costs that should be capitalized before the constructionreaches the condition for intended use and other relevant expenses.
Construction in progress is transferred to fixed assets when the asset is ready for its intended use.
16. Borrowing costs
The borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized,otherwise the borrowing costs are expensed in the period during which they are incurred. A qualifying asset is an asset (an item ofproperty, plant and equipment and inventory etc.) that necessarily takes a substantial period of time to get ready for its intended use ofsale.
The capitalization of borrowing costs is as part of the cost of a qualifying asset shall commence when:
1) expenditure for the asset is being incurred;
2) borrowing costs are being incurred; and
3) activities that are necessary to prepare the asset for its intended use or sale are in progress.
Capitalization of borrowing costs shall be ceased when substantially all the activitiesnecessary to prepare the qualifying asset for its intended use or sale have been done. And subsequent borrowing costs are recognizedin the income statement.
During the capitalization period, the amount of interest to be capitalized for each accounting period shall be determined as follows:
1) where funds are borrowed for a specific-purpose, the amount of interest to be capitalized is the actual interest expense incurred
on that borrowing for the period less any bank interest earned form depositing the borrowed funds before being used on the asset orany investment income on the temporary investment of those funds;
2) where funds are borrowed for a general-purpose, the amount of interest to be capitalized on such borrowings is determined by
applying a weighted average interest rate to the weighted average of the excess amounts of cumulative expenditure on the asset overand above the amounts of specific-purpose borrowings.During the construction or manufacture of assets that are qualified for capitalization, if abnormal discontinuance, other than proceduresnecessary for their reaching the expected useful conditions, happens, and the duration of the discontinuance is over three months, thecapitalization of the borrowing costs is suspended. Borrowing costs incurred during the discontinuance are recognized as expense andcharged to the income statement of the current period, till the construction or manufacture of the assets resumes.
17. Right-of-use assets
At the commencement date of the lease period, the Group recognizes its right to use the leased assets during the lease period as a right-of-use asset, initial measurement is made at cost. Cost of right to use assets including: the initial measured amount of the lease liability;the amount of lease payments paid on or before the start date of the lease period, in addition, the relevant amount of lease incentiveshould be deducted; Initial direct expenses incurred by the lessee; the estimated cost incurred by the lessee for dismantling and removingthe leased assets, restoring the site where the leased assets are located, or restoring the leased assets to the state agreed in the leaseterms. If the group remeasures the lease liabilities due to changes in lease payments, the book value of the right to use assets shall beadjusted accordingly. The Group adopts the average age method to depreciate the assets of the right of use. If it can be reasonablydetermined that the ownership of the leased asset is obtained at the expiration of the lease term, the Group adopts depreciation withinthe remaining service life of the leased asset. If it is impossible to reasonably determine that the ownership of the leased asset can beobtained at the expiration of the lease term, the Group adopts depreciation within the shorter of the lease term and the remaining servicelife of the leased asset.
18. Intangible assets
An intangible asset probably shall be recognized only when the economic benefits associated with the asset will flow to the Group andthe cost of the asset can be measured reliably. Intangible assets are initially measured at cost. The cost of intangible assets acquired ina business combination is the fair value as at the date of acquisition, if the fair value can be reliably measured.
The useful life of the intangible assets shall be assessed according to the estimated beneficial period expected to generate economicbenefits. An intangible asset shall be regarded as having an indefinite useful life when there is no foreseeable limit to the period overwhich the asset is expected to generate economic benefits for the Group.
The useful lives of the intangible assets are as follow:
Useful life
Land use right 43 to 50 yearsSoftware 2 yearsTrademark 10 yearsNon-patent technology 5 to 11 yearsPatent technology 10 years
Land use rights that are purchased or acquired through the payment of land use fees are accounted for as intangible assets. With respectto self-developed properties, the corresponding land use right and buildings should be recorded as intangible and fixed assets separately.As to the purchased properties, if the reasonable allocation of outlays cannot be made between land and buildings, all assets purchasedwill be recorded as fixed assets. The cost of a finite useful life intangible asset is amortized using the straight-line method during theestimated useful life. For an intangible asset with a finite useful life, the Group reviews the estimated useful life and amortizationmethod at least at the end of each year and adjusts if necessary.
The Group should test an intangible asset with an indefinite useful life for impairment by comparing its recoverable amount with itscarrying amount annually, whenever there is an indication that the intangible asset may be impaired. An intangible asset with anindefinite useful life shall not be amortized.
The useful life of an intangible asset that is not being amortized shall be reviewed each period to determine whether events andcircumstances continue to support an indefinite useful life assessment for that asset. If there are indicators that the intangible asset hasfinite useful life, the accounting treatment would be in accordance with the intangible asset with finite useful life.
19. Research and development expenditures
The Group classified the internal research and development expenditures as follows: research expenditures and development cost.
The expenditures in research stage are charged to the current income on occurrence.
The expenditures in development stage are capitalized that should meet all the conditions of (a) it is technically feasible to finishintangible assets for use or sale; (b) it is intended to finish and use or sell the intangible assets; (c) the usefulness of methods forintangible assets to generate economic benefits shall be proved, including being able to prove that there is a potential market for theproducts manufactured by applying the intangible assets or there is a potential market for the intangible assets itself or the intangibleassets will be used internally; (d) it is able to finish the development of the intangible assets, and able to use or sell the intangible assets,with the support of sufficient technologies, financial resources and other resources; and (e) the development expenditures of theintangible assets can be reliably measured. Expenses incurred that don’t meet the above requirements unanimously should be expensedin the income statement of the reporting period.
The Group discriminates between research and development stage with the condition that the project research has been determined, inwhich the relevant research complete all the fractionalization of products measurements and final product scheme under final approvalof management. The expenditures incurred before project-determination stage is charged to the current income, otherwise it is recordedas development cost.
20. Impairment of assets
The impairment of assets other than inventory, contract assets, deferred income tax assets and financial assets is determined accordingto the following methods: on the balance sheet date, it is judged whether there are signs of possible impairment of assets. If there aresigns of impairment, the group will estimate its recoverable amount and conduct an impairment test. Impairment tests shall beconducted at least at the end of each year for goodwill formed by business combination, intangible assets with uncertain service lifeand intangible assets that have not yet reached the usable state, regardless of whether there are signs of impairment.
The recoverable amount is determined according to the higher of the net amount of the fair value of the asset minus the disposalexpenses and the present value of the expected future cash flow of the asset. The group estimates its recoverable amount on the basisof individual assets; If it is difficult to estimate the recoverable amount of a single asset, the recoverable amount of the asset groupshall be determined on the basis of the asset group to which the asset belongs. The recognition of an asset group shall be based onwhether the main cash inflow generated by the asset group is independent of the cash inflow of other assets or asset groups.
The recoverable amount of an asset is the higher of its fair value less costs to sell and the present value of the future cash flow expectedto be derived from the asset. The Group estimates the recoverable amount on an individual basis. If it is not possible to estimate therecoverable amount of the individual asset, the Group determines the recoverable amount of the asset group to which the asset belongs.Identification of an asset group is based on whether major cash flows generated by the asset group are independent of the cash flowsfrom other assets or asset groups.
When the recoverable amount of an asset or asset group is less than its carrying amount, the carrying amount is reduced to therecoverable amount. The impairment of asset is provided for and the impairment loss is recognized in the income statement for thecurrent period.
For the purpose of impairment testing, the carrying amount of goodwill acquired in a business combination is allocated, on a reasonablebasis, to related asset groups; if it is impossible to allocate to the related asset groups, it is allocated to each of the related sets of assetgroups. Each of the related asset groups or related sets of asset groups is a group or set of asset group that is able to benefit from thesynergies of the business combination and shall not be larger than a reportable segment determined by the Group.
When an impairment test is conducted on an asset group or a set of asset groups that contains goodwill, if there is any indication ofimpairment, the Group firstly tests the asset group or the set of asset groups excluding the amount of goodwill allocated for impairment,i.e., it determines and compares the recoverable amount with the related carrying amount and then recognize impairment loss if any.Thereafter, the Group tests the asset group or set of asset groups including goodwill for impairment, the carrying amount (includingthe portion of the carrying amount of goodwill allocated) of the related asset group or set of asset groups is compared to its recoverableamount. If the carrying amount of the asset group or set of asset groups is higher than its recoverable amount, the amount of theimpairment loss is firstly eliminated by and amortized to the book value of the goodwill included in the asset group or set of assetgroups, and then eliminated by the book value of other assets according to the proportion of the book values of assets other than thegoodwill in the asset group or set of asset groups.
Once the above impairment loss is recognized, it cannot be reversed in subsequent periods.
21. Long-term deferred expenses
The long-term deferred expenses represent the payment for the improvement on buildings and other expenses, which have been paidand should be deferred in the following years. Long-term deferred expenses are amortized on the straight-line basis over the expectedbeneficial period and are presented at actual expenditure net of accumulated amortization.
22. Employee benefits
Employee benefits refer to all kinds of remunerations or compensation made by enterprises to their employees in exchange for servicesprovided by the employees or termination of labor relation. Employee compensation includes short-term compensation and post-employment benefits. The benefits offered by enterprises to the spouse, children, the dependents of the employee, the family memberof deceased employee and other beneficiaries are also employee compensation.
Short-term employee salaries
During the accounting period of employee rendering service, the actual employees salaries and are charged to the statement of profitor loss as they become payable in balance sheet.
Post-employment benefits (Defined contribution plans)
The employees of the Group participate in pension insurance, which is managed by local government and the relevant expenditure, isrecognized, when incurred, in the costs of relevant assets or the profit and loss for the current period.
Post-employment benefits (Defined benefit plan)
The Group operates a defined benefit pension plan which requires contributions to be made to a separately administered fund. Thebenefits are unfunded. The cost of providing benefits under the defined benefit plan is determined using the projected unit creditactuarial valuation method.
Remeasurements arising from defined benefit pension plans are recognized immediately in the consolidated statement of financialposition with a corresponding debit or credit to retained profits through other comprehensive income in the period in which they occur.Remeasurements are not reclassified to profit or loss in subsequent periods.
Past service costs are recognized in profit or loss at the earlier of: the date of the plan amendment or curtailment; and the date that theGroup recognizes restructuring-related costs.
Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Group recognizes the followingchanges in the net defined benefit obligation under administrative expenses in the consolidated statement of profit or loss by function:
?service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routine settlements; netinterest expense or income.
Termination benefits
Termination benefits are recognized at the earlier of when the Group can no longer withdraw the offer of those benefits and when theGroup recognizes restructuring costs involving the payment of termination benefits.
23. Lease liabilities
At the beginning of the lease term, the Group recognizes the present value of the unpaid lease payments as a lease liability, except forshort-term leases and low value asset leases. Lease payments include fixed and substantially fixed payments after deducting leaseincentives, variable lease payments depending on an index or ratio, amounts expected to be payable based on the guaranteed residualvalue, and also includes the exercise price of the purchase option or amounts payable to exercise the termination lease option, providedthat the group reasonably determines that the option or lease term will be exercised to reflect the group's exercise of the terminationlease option.
In calculating the present value of lease payments, the group uses the embedded interest rate of the lease as the discount rate; If the
embedded interest rate of the lease cannot be determined, the incremental loan interest rate of the lessee shall be used as the discountrate. The group calculates the interest expense of lease liabilities during each period of the lease term at a fixed cyclical interest rateand includes it in the current profit and loss, unless otherwise specified in the cost of related assets. The amount of variable leasepayments not included in the measurement of lease liabilities shall be included in the current profit and loss when actually incurred,unless otherwise stipulated in the cost of related assets.
After the beginning date of the lease term, the group increases the carrying amount of the lease liabilities when it recognizes interest,and decreases the carrying amount of the lease liabilities when it pays the lease payments. When the substantial fixed payment changes,the estimated amount payable of the guarantee residual value changes, the index or ratio used to determine the lease payment changes,the evaluation results or actual exercise of the purchase option, renewal option or termination option changes, the group remeasuresthe lease liability according to the present value of the changed lease payment.
24. Provisions
An obligation related to a contingency shall be recognized by the Group as a provision when all of the following conditions are satisfied,except for contingent considerations and contingent liabilities assumed in a business combination not involving entities under commoncontrol:
1) the obligation is a present obligation of the Group;
2) it is probable that an outflow of economic benefits from the Group will be required to settle the obligation;
3) a reliable estimate can be made of the amount of the obligation.
Contingent liabilities are initially measured according to the current best estimate for the expenditure necessary for the performance ofrelevant present obligations, with comprehensive consideration given to factors such as the risks, uncertainty and time value of moneyrelating to contingencies. The book value of the contingent liabilities should be reviewed at each balance sheet date. If there is objectiveevidence showing that the book value cannot reflect the present best estimate, the book value should be adjusted according to the bestestimate.
The contingent liabilities of the acquiree acquired in the business combination involving entities not under common control aremeasured at fair value upon initial recognition. After initial recognition, the balance of the amount recognized according to the estimatedliabilities and the amount initially recognized after deducting the accumulated amortization determined by the revenue recognitionprinciple is subsequently measured at the higher of the two.
25. Share-based payments
A share-based payment is classified as either an equity-settled share-based payment or a cash-settled share-based payment. An equity-settled share-based payment is a transaction in which the Group receives services and uses shares or other equity instruments asconsideration for settlement.
An equity-settled share-based payment in exchange for services received from employees is measured at the fair value of the equityinstruments granted to the employees. If such equity-settled share-based payment could vest immediately, related costs or expenses atan amount equal to the fair value on the grant date are recognized, with a corresponding increase in capital reserves; if such equity-settled share-based payment could not vest until the completion of services for a vesting period, or until the achievement of a specifiedperformance condition, the Group at each balance sheet date during the vesting period recognizes the services received for the currentperiod as related costs and expenses, with a corresponding increase in capital reserves, at an amount equal to the fair value of the equityinstruments at the grant date, based on the best estimate of the number of equity instruments expected to vest. The fair value isdetermined using the closing price of the company's shares on the grant date.
For awards that do not ultimately vest because non-market performance and/or service conditions have not been met, no expense isrecognized. Where awards include a market or non-vesting condition, the transactions are treated as vesting irrespective of whetherthe market or non-vesting condition is satisfied, provided that all other performance and/or service conditions are satisfied.
Where the terms of an equity-settled share-based award are modified, as a minimum an expense is recognized as if the terms had notbeen modified. In addition, an expense is recognized for any modification that increases the total fair value of the share-basedpayment or is otherwise beneficial to the employee as measured at the date of modification.
Where an equity-settled share-based award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense notyet recognized for the award is recognized immediately. This includes any award where non-vesting conditions within the control ofeither the Group or the employee are not met. However, if a new award is substituted for the cancelled award and is designated as areplacement on the date that it is granted, the cancelled and new awards are treated as if they were a modification of the original award.
26. Revenue from contracts with customers
The Group has fulfilled its performance obligations in the contracts, that is, the revenue is recognized when the customer obtains controlof the relevant goods or services. Obtaining control over related goods or services means being able to lead the use of the goods or theprovision of the services and obtain almost all of the economic benefits from it.
Contracts for the sale of goods
A contract for the sale of goods between the Group and the customer usually includes the performance obligation to transfer of goods,transportation services and free maintenance. The Group allocates the transaction price to each individual performance obligation inaccordance with the relative proportion of the stand-alone selling price of the goods or services promised by each individualperformance obligation on the date of contract commencement. Regarding the performance obligations of the transferred goods, theGroup usually recognizes revenue at the point when the performance obligations are fulfilled based on the following indicators, whichinclude: a present right to payment for goods, the transfer of significant risks and rewards of ownership of goods, the transfer of legaltitle to goods, the transfer of physical possession of goods, the customer’s acceptance of goods.
Provide service contract
The performance obligations of the service provision contract between the Group and the customer are due to the fact that the customerobtains and consumes the economic benefits brought by the performance of the Group at the same time the Group performs the contract,and the Group has the right to accumulate the economic benefits during the entire contract period. The Group regards it as a performanceobligation performed within a period, and recognizes the revenue according to the performance progress, unless the performanceprogress cannot be reasonably determined. In accordance with the output method, the Group determines the progress of the performanceof the service provided based on the completed or delivered products. When the performance progress cannot be reasonably determined,if the cost incurred by the Group is expected to be compensated, the revenue will be recognized according to the amount of the costincurred until the performance progress can be reasonably determined.
Variable consideration
Some contracts between the Group and customers have sales rebate arrangements, forming variable consideration. The Groupdetermines the best estimate of the variable consideration based on the expected value or the most likely amount, but the transactionprice including the variable consideration does not exceed the amount that the accumulated recognized revenue will most likely not bematerially reversed when the relevant uncertainty is eliminated.
Warranty obligations
In accordance with contractual agreements and legal provisions, the Group provides quality assurance for the goods sold. For guaranteequality assurance to ensure that the products sold meet the established standards, the Group conducts accounting treatment inaccordance with Note V, 23. For the service quality assurance that provides a separate service in addition to the established standardsto ensure that the goods sold meet the established standards, the Group regards it as a single performance obligation, based on thestand-alone selling price of the quality assurance of the goods and services provided. In a relative proportion, part of the transactionprice is allocated to service quality assurance, and revenue is recognized when the customer obtains control of the service. Whenassessing whether the quality assurance provides a separate service in addition to ensuring that the products sold meet the establishedstandards, the Group considers whether the quality assurance is a legal requirement, the quality assurance period, and the nature of theGroup's commitment to perform tasks.
Reward points program
The group grants reward points to customers when selling goods or providing services, and customers can exchange reward points forfree or discounted goods or services. The incentive points plan provides customers with a significant right, which the group regards asa single performance obligation, apportions part of the transaction price to the incentive points in accordance with the relativeproportion of the separate selling price of the goods or services provided and the incentive points, and recognizes revenue when thecustomer obtains control of the points exchanged goods or services or when the points expire.
Principal/agent
For the Group to lead a third party to provide services to customers on behalf of the Group, the Group has the right to independentlydetermine the price of the goods or services traded, that is, the Group can control the relevant goods before transferring the goods tothe customers, so the Group is the main responsible person, and recognize revenue based on the total consideration received orreceivable. Otherwise, the Group acts as an agent and recognizes revenue based on the amount of commission or fees expected to becharged. This amount should be based on the net amount of the total consideration received or receivable minus the price payable toother related parties, or based on the established commission amount or proportions, etc.
27. Contract assets and contract liabilities
The Group lists contract assets or contract liabilities in the balance sheet based on the relationship between performance obligationsand customer payments. The Group offsets the contract assets and contract liabilities under the same contract as net amount.
Contract assets
Contract assets refer to the right to receive consideration for the transfer of goods or services to customers, and this right depends onfactors other than the passage of time.
The determination method and accounting treatment method of the expected credit loss of the contract assets of the Group refer to NoteIII, 9.
Contract liabilities
Contract liabilities refer to the obligation to transfer goods or services to customers for the consideration received or receivable fromcustomers, such as the payment received by companies before the transfer of promised goods or services.
28. Government grants
A government grant is recognized only when there is reasonable assurance that the entity will comply with any conditions attached tothe grant and the grant will be received. Monetary grants are accounted for at received or receivable amount. Non-monetary grants areaccounted for at fair value. If there is no reliable fair value available, the grants are accounted for a nominal amount.
A government grant which is specified by the government documents to be used to purchase and construct the long-term assets shallbe recognized as the government grant related to assets. A government grant which is not specified by the government documents shallbe judged based on the basic conditions to obtain the government grant. The one whose basic condition was to purchase and constructthe long-term assets shall be recognized as the government grant related to assets.
The Group uses the net method to account for government grants.
Government grants related to income to be used as compensation for future expenses or losses shall be recognized as deferred incomeand shall be charged to the current profit or loss or be used to write down the relevant loss, during the recognition of the relevant costexpenses or losses; or used as compensation for relevant expenses or losses already incurred by enterprises shall be directly charged tothe profit and loss account in the current period or used to write down the relevant cost.
The government grants related to assets shall be used to write down the book value of the relevant assets or be recognized as deferredincome. The government grants related to assets, recognized as deferred income, shall be charged to the profit and loss reasonably andsystematically in stages over the useful lives of the relevant assets. The government grants measured at nominal amount shall be directlycharged to the current profit and loss. The remaining book value of the government grants related to assets should be charged to theprofit and loss account in the current period when the relative assets sold, transferred, disposed or damaged.
29. Deferred income tax
For temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts, andtemporary differences between the carrying amounts and the tax bases of items, the tax bases of which can be determined for taxpurposes, but which have not been recognized as assets and liabilities, deferred taxes are provided using the liability method.
A deferred tax liability is recognized for all taxable temporary differences, except:
to the extent that the deferred tax liability arises from the initial recognition of goodwill or the initial recognition of an asset or liabilityin a transaction which contains both of the following characteristics: the transaction is not a business combination and at the time ofthe transaction, it affects neither the accounting profit nor taxable profit or loss.
(2) in respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in jointly-
controlled enterprises, where the timing of the reversal of the temporary differences can be controlled and it is probable that thetemporary differences will not reverse in the foreseeable future.
A deferred tax asset is recognized for deductible temporary differences, carry forward of unused tax credits and unused tax losses, tothe extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carryforward of unused tax credits and unused tax losses can be utilized except:
(1) where the deferred tax asset relating to the deductible temporary differences arises from the initial recognition of an asset or
liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nortaxable profit or loss; and
(2) in respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint
ventures, deferred tax assets are only recognized to the extent that it is probable that the temporary differences will reverse in theforeseeable future and taxable profit will be available against which the temporary differences can be utilized.
At the balance sheet date, deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period whenthe asset is realized or the liability is settled, according to the requirements of tax laws. The measurement of deferred tax assets anddeferred tax liabilities reflects the tax consequences that would follow from the manner in which the Group expects at the balance sheetdate, to recover the assets or settle the liabilities.
At the balance sheet date, the Group reviews the book value of deferred tax assets. If it is probable that sufficient taxable income cannotbe generated to use the tax benefits of deferred tax assets, the book value of deferred tax assets should be reduced. When it is probablethat sufficient taxable income can be generated, the amount of such reduction should be reversed. When it is probable that sufficienttaxable income can be generated, the amount of such reduction should be reversed.
When the following conditions are met at the same time, the deferred tax assets and deferred tax liabilities are listed at the net amountafter offset: the legal right to settle the current income tax assets and current income tax liabilities at the net amount; the deferred taxassets and deferred tax liabilities are related to the income tax levied by the same tax collection and management department on thesame taxable subject or different taxpaying subjects However, in the future, during each period when the significant deferred tax assetsand deferred tax liabilities are reversed, the tax payer involved intends to settle the current income tax assets and current income taxliabilities with net amount or obtain assets and pay off debts at the same time.
30. Leases
At inception of a contract, the Group assesses whether the contract is, or contains, a lease. A contract is, or contains, a lease if thecontract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
As lessee
In addition to short-term leases and low value asset leases, the Group recognizes right to use assets and lease liabilities for leases. Seenotes 5, 17 and 23 for accounting treatment.
Short-term leases and leases of low-value assets
The Group considers a lease that, at the commencement date of the lease, has a lease term of 12 months or less, and does not containsany purchase option as a short-term lease; and a lease with a lower value of a single leased asset is recognized as a low value assetlease.
As lessor
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlyingasset, except that a lease is classified as an operating lease at the inception date.
The Group recording the operating lease as a lessor
Rental income from operating leases is recognized as current profit and loss on a straight line basis during each period of the leaseterm, and variable lease payments not included in lease receipts are included in current profit and loss when actually incurred. Theinitial direct expenses are capitalized and amortized on the same basis as the recognition of rental income during the lease period, andare included in the current profit and loss by stages.
31. Profit distribution
The cash dividend of the Group is recognized as liabilities after the approval of general meeting of stockholders.
32. Safety fund
The safety fund extracted by the Group shall be recognized as the cost of the related products or income statement, while be recognizedas special reserve. When using safety fund, it shall be distinguished whether it will form fixed assets or not. The expenditure shall writedown the special reserve; the capital expenditure shall be recognized as fixed assets when meet the expected conditions for use, andwrite down the special reserve while recognizing accumulated depreciation with the same amount.
33. Fair value measurement
The Group measures derivatives and equity investments at fair value at the end of each reporting period. Fair value is the price thatwould be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurementdate.
The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data and other supportinginformation are available to measure fair value, giving priority to the use of relevant observable inputs, and using unobservable inputsonly when observable inputs are unavailable or not feasible to obtain.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair valuehierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectlyobservable
Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable
For assets and liabilities that are recognized in the financial statements on a recurring basis, the Group determines whether transfershave occurred between levels in the hierarchy by reassessing categorization at the end of each reporting period.
34. Significant accounting judgments and estimates
The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the amountsand disclosures of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities, at the balance sheet date.However, uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to thecarrying amounts of the assets or liabilities affected in the future.
Judgments
In the process of applying the Group’s accounting policies, management has made the following judgments which have significanteffect on the financial statements:
Business modelThe classification of financial assets at initial recognition depends on the business model of the Group’s management of financial assets.When judging the business model, the Group considers the methods including enterprise evaluation and reporting of financial assetperformance to key management personnel, risks affecting financial asset performance and its arrangement method and the way inwhich related business managers get paid. When evaluating whether to take contract cash flow as the goal, the Group needs to analyzeand judge the reasons, time, frequency and value of the sale of financial assets before the due date.
Contract cash flow characteristicsThe classification of financial assets at initial recognitions depends on the contractual cash flow characteristics of the financial assets.It is necessary to determine whether the contractual cash flow is only for the payment of principal and interest based on outstandingprincipal, including correction of the time value of money during the evaluation, it is necessary to determine whether there is asignificant difference compared to the benchmark cash flow. For financial assets that include prepayment characteristics, it is necessaryto determine whether the fair value of the prepayment characteristics is very small, etc.
Uncertainty of accounting estimates
The crucial assumptions of significant accounting estimates in future and other crucial sources of estimated uncertainty, which mayresult in the significant adjustments to the book value of the subsequent accounting period, are as the following:
Impairment of financial instruments and contract assetsThe Group uses the expected credit loss model to assess the impairment of financial instruments and contract assets. The applicationof the expected credit loss model requires significant judgments and estimates. All reasonable and valid information must be considered,including forward-looking information. In making these judgments and estimates, the Group infers the expected changes in the creditrisk of the debtor based on historical repayment data combined with economic policies, macroeconomic indicators, industry risks andother factors. Different estimates may affect the provision for impairment losses. The provision for impairment losses may not be equalto the actual amount of future impairment losses.
Impairment of non-current assets other than financial assets (goodwill excluded)The Group assesses at each reporting date whether there is an indication that non-current assets other than financial assets may beimpaired. If there is any sign of possible assets impairment, the assets concerned should be subject to impairment test. When thecarrying amount of an asset or the relevant assets group exceeds its recoverable amount which is the higher one of the net amount ofthe fair value of the asset minus the disposal expenses and the present value of the expected future cash flow of the asset, the asset isconsidered impaired. The fair value minus the disposal expenses is determined by reference to the recent market transactions price orobserved market price less any directly attributable expenditure for disposing. When making an estimate of the present value of thefuture cash flow of an asset, the Group should estimate the future cash flows of the asset or the relevant assets group, with theappropriate discount rate selected to reflect the present value of the future cash flows.
Fair value of unlisted equity investmentsThe group uses the market method to determine the fair value of unlisted equity investments. This requires the group to determinecomparable listed companies, select market multipliers, estimate liquidity discounts, etc., so it is uncertain.
Development expendituresWhen determining the capitalization amount, management should make assumptions such as the expected cash flows of the assetsrelated, the applicable discount rate and expected benefit period.
Deferred tax assetsThe Group should recognize the deferred income tax assets arising from all the existing unutilized tax deficits and deductible temporarydifferences to the extent of the amount of the taxable income which it is most likely to obtain and which can be deducted from thedeductible temporary differences. Enormous accounting judgments, as well as the tax planning are compulsory for management toestimate the time and amount of prospective taxable profits and thus determine the appropriate amount of the deferred tax assetsconcerned.
WarrantyThe Group provides warranties on automobile and undertakes to repair or replace items that fail to perform satisfactorily based oncertain pre-determined conditions. Factors that influence estimation of related warranty claim include: 1) renewal of laws andregulations; 2) quality promotion of Group products; 3) change of parts and labour cost. In general, the Group records warranty basedon selling volume and estimated compensatory unit warranty cost, deduction multi-agreed compensation from suppliers. As at balancesheet day, the Group launches retrospective analysis on warranty carrying amount in consideration of accrual warranty payment duringrelative warranty period, and recent trends of product renovation and replacement, and further adjustment if necessary. Any increaseor decrease in the provision would affect profit or loss in future years.
Lessee Incremental Borrowing RateFor leases for which the interest rate implicit in the lease cannot be determined, the Group uses the lessee's incremental borrowing rateas the discount rate to calculate the present value of lease payments. When determining the incremental borrowing rate, the Grouptakes the observable interest rate as the reference basis for determining the incremental borrowing rate according to the economicenvironment in which it is located. The reference interest rate is adjusted according to the specific conditions of the leasing business toobtain the applicable incremental borrowing rate.
35. Significant accounting judgments and estimates
(1) Significant accounting policy changes
□ Applicable √ Not applicable
(2) Changes in significant accounting estimates
□ Applicable √ Not applicable
VI. TAXES
1. Main taxes and tax rates
(“VAT”)
| Value added tax | The income from the sale of goods and the income from the provision of services are calculated at the tax |
rates of 13% and 6%, respectively, and the VAT is calculated on the basis of the difference after deducting
Consumption tax Consumption tax is calculated at 1%, 3% or 5% of taxable income.
the input tax that is allowed to be deducted in the current period.City maintenance and
construction tax
5% or 7% of the turnover tax paid is calculated and paid.Educational surcharge 3% of the actual turnover tax paid is calculated and paid.
City maintenance andLocal educational
surcharge
2% of the actual turnover tax paid is calculated and paid.Corporate income tax Corporate income tax is paid at 15%, or 25% of taxable income.
2. Tax benefits
According to the relevant provisions of the national high-tech identification and relevant tax preferential policies, the followingcompanies of the Group are identified as high-tech enterprises and are subjected to the preferential corporate income tax rate of 15%within the prescribed period: the company (2021-2023), and the Company’s subsidiaries including Hebei Changan AutomobileCompany Limited (2020-2022), Deepal Automobile Technology Company Limited (2021-2023).
According to the Announcement on Continuing the Income Tax Policy for Enterprises in the Large-scale Development of the WesternRegion jointly issued by the Ministry of Finance, the State Administration of Taxation and the National Development and ReformCommission, from January 1, 2021 to December 31, 2030, enterprise income tax will be levied at a reduced rate of 15% for encouragedindustrial enterprises located in the western region. Chongqing Changan Automobile International Sales Service Co., Ltd., ChongqingChangan Special Purpose Vehicle Co., Ltd., Chongqing Changan Automobile Customer Service Co., Ltd., Chongqing LingyaoAutomobile Co., Ltd. and Chongqing Chehemei Technology Co., Ltd., subsidiaries of the Company, meet the above requirements andare subject to corporate income tax calculated at a 15% corporate income tax rate.
According to the announcement on enterprise income tax policy for promoting the high-quality development of integrated circuitindustry and software industry jointly issued by the Ministry of finance, the State Administration of Taxation, the development andReform Commission and the Ministry of industry and information technology, integrated circuit design, equipment, materials,packaging, testing enterprises and software enterprises encouraged by the State shall be exempted from enterprise income tax from thefirst year to the second year from the profit making year, From the third year to the fifth year, the enterprise income tax shall be reducedby half at the statutory tax rate of 25%. Chongqing Changan Automotive Software Technology Co., Ltd., a subsidiary of the company,meets the above conditions and is subject to enterprise income tax at the statutory tax rate of half this year.
VII. Notes to the consolidated financial statements
1. Cash
In RMB YuanItem Ending balance Beginning balanceCash 1,886.16 32,155.77
Local educationalCash at bank
| Cash at bank | 64,133,735,374.29 | 52,455,913,791.28 |
Other cash 1,852,209,303.76 1,074,237,880.29Total 65,985,946,564.21
53,530,183,827.34
As at 30 June 2023, the book value of restricted cash and cash equivalents is RMB 1,832,280,514.67, which was mainly restricted forthe issuance of acceptance bill (December 31, 2022: RMB 1,038,748,779.60).
As at 30 June 2023, the cash at bank oversea is equivalent to RMB 1,186,263,774.58 (December 31, 2022: RMB 231,286,316.97).
As of June 30, 2023, the monetary capital deposited by the group in the financial company of the related party was RMB34,557,412,889.08 (December 31, 2022: RMB 34,812,952,043.78). See note XII and 5 for details.
The interest income of bank demand deposits is obtained according to the interest rate of bank demand deposits. 7-day bank calldeposits and time deposits can be withdrawn at any time according to the group's cash demand, and interest income is obtainedaccording to the corresponding bank deposit interest rate.
2. Transactional financial assets
In RMB Yuan
| Item | Ending balance | Beginning balance |
Equity instrument investment 262,239,446.37 251,165,128.80Others 29,150,442.29Total 262,239,446.37 280,315,571.09
As of June 30, 2023, the trading financial assets measured at fair value are 27.09 million ordinary shares of Southwest Securities Co.,Ltd. held by the group (December 31, 2022: 33.63 million shares), and 26.05 million restricted shares held by the group in ChinaAutomobile Research automobile testing ground Co., Ltd. (December 31, 2022: Nil).
3. Notes receivable
(1) Classification of notes receivable
In RMB Yuan
| Item | Ending balance | Beginning balance |
Commercial acceptance bill 22,559,968,628.70 25,838,721,743.62Bank acceptance bill 11,403,949,194.61 10,010,938,909.34Total 33,963,917,823.31 35,849,660,652.96
(2)Notes receivable pledged
In RMB YuanItem Pledged amountCommercial acceptance bill 6,179,911,994.47
| Bank acceptance bill | 199,543,152.00 |
Total 6,379,455,146.47
As of June 30, 2023, the bills receivable of the above amount had been pledged for issuing bills payable.
(3)Endorsed or discounted but unexpired notes receivable as at the end of reporting period
In RMB YuanItem
Amount derecognized at the end of the
period
Amount not derecognized at the end of
the period
| Commercial acceptance bill | 5,501,433,908.49 | - |
Bank acceptance bill 228,955.19
-Total 5,501,662,863.68
-
(4)At the end of the period, the company transferred the bills to accounts receivable due to the drawer's non performance
As at 30 June 2023, there was no note receivables converted to accounts receivable due to the inability of the drawer to perform thecontract. (As at 31 December 2022: Nil)
4. Accounts receivable
(1)Aging analysis of the accounts receivable
In RMB YuanAging Ending balance Beginning balanceWithin 1 year 2,416,543,623.42 2,905,353,787.00
1 to 2 years 71,350,324.51 176,712,124.08
2 to 3 years 6,060,396.21 25,732,015.24
Over 3 years 208,767,029.46 201,045,330.53
| Total | 2,702,721,373.60 | 3,308,843,256.85 |
Less: Provision (225,703,574.25) (240,428,841.56)Total 2,477,017,799.35 3,068,414,415.29
(2)The movements in provision for impairment of accounts receivable are as follows:
In RMB YuanCategory
Beginning
balance
Change amount in the current period
Ending balanceProvision
Merger
increase
| Merger | Withdrawal |
or reversal
Write-off
| 2023.6.30 | 240,428,841.56 | 21,786,720.49 | 8,683,488.91 | 6,323,653.99 | 38,871,822.72 | 225,703,574.25 |
2022.12.31 215,274,377.62 35,457,297.58 4,945,346.85 5,357,486.79 240,428,841.56
(3)Analysis of accounts receivable by category
In RMB YuanCategory
Balance Provision
Book valueAmount % Amount %Individually analyzed for provision
Ending balance1,717,016,214.88
| 1,717,016,214.88 | 63.53 |
128,730,126.47
7.50
| 1,717,016,214.88 | ||||
| Accounts receivable analyzed as |
groups for provision
985,705,158.72
| 36.47 |
96,973,447.78
9.84
985,705,158.72
Total
| 2,702,721,373.60 |
100.00
225,703,574.25
| 8.35 | 2,702,721,373.60 |
Category
Beginning balanceBalance Provision
Book valueAmount % Amount %
| Individually analyzed for provision | 2,059,626,543.23 | 62.25 | 152,800,930.19 | 7.42 | 2,059,626,543.23 |
| Accounts receivable analyzed as |
groups for provision
1,249,216,713.62
37.75
87,627,911.37
7.01
1,249,216,713.62
Total 3,308,843,256.85
100.00
240,428,841.56
7.27
3,308,843,256.85
(4)The Group’s accounts receivable was analyzed for provision by expected credit loss model
In RMB YuanAging
Ending balanceEstimated face value for default
Expected credit loss rate
(%)
Expected credit loss for theentire durationWithin 1 year 754,808,931.73
0.19
1,407,868.22
1 to 2 years 58,832,021.35
6.24
3,669,447.39
| 2 to 3 years | 5,803,750.00 | 16.02 | 929,861.76 |
Over 3 years 166,260,455.64
54.71
90,966,270.41
Total 985,705,158.72
9.84
96,973,447.78
Aging
Beginning balanceEstimated face value for default
Expected credit loss rate
(%)
Expected credit loss for theentire durationWithin 1 year 1,031,532,359.36
0.41
4,211,660.35
1 to 2 years 30,724,065.06
7.24
2,225,905.84
2 to 3 years 25,707,148.00
16.02
4,118,732.53
| Over 3 years | 161,253,141.20 | 47.80 | 77,071,612.65 |
Total 1,249,216,713.62
7.01
87,627,911.37
(5) Accounts receivable with top five ending balances collected by debtors
As at June 30, 2023, accounts receivable from Top 5 clients amounted to RMB 910,077,900.68, accounted for 33.67% of the totalaccounts receivable (December 31, 2022: RMB 1,880,530,647.71, accounted for 56.83% of the total amount).
(6) Accounts receivable derecognized due to transfer of financial assets
As of June 30, 2023, the Group has no accounts receivable that are derecognized as the transfer of financial assets (December 31, 2022:
Nil).
5. Prepayments
(1) Prepayments listed by aging
In RMB YuanAging
Ending balance Beginning balance
Amount
| Amount | % | Amount | % |
Within 1 year 622,741,040.66
94.01
523,061,724.51
69.78
1 to 2 years 30,083,298.85
4.54
217,460,711.49
29.01
2 to 3 years 8,860,304.45
1.34
8,858,465.69
1.18
Over 3 years 704,745.03
0.11
191,360.31
0.03
| Total | 662,389,388.99 | 100.00 | 749,572,262.00 | 100.00 |
(2) Prepayments of the top five ending balances collected by prepayment object
As at 30 June 2022, the total amount of the top five prepayments was RMB 1,474,271,190.88, accounting for 38.15% of the totalamount of prepayments (2021: RMB 1,151,298,912.20, accounting for 35.52%).
6. Other receivables
In RMB YuanItem Ending balance Beginning balance
| Dividend receivable | 180,656,814.04 |
Other receivables 778,979,126.16 1,261,157,951.14Total 959,635,940.20 1,261,157,951.14
(1)Dividend receivable
In RMB Yuan
| Project (or investee) | Ending balance | Beginning balance |
Weaponry Group Finance Co., Ltd 180,656,814.04
Total 180,656,814.04
(2)Other receivables
1) Aging analysis of other receivables
In RMB YuanAging Ending balance Beginning balance
| Within 1 year | 404,062,220.98 | 1,192,972,701.51 |
1 to 2 years 324,136,540.21
57,855,077.502 to 3 years 48,742,138.29
1,364,188.70Over 3 years 11,184,947.78 18,062,282.93Total 788,125,847.26 1,270,254,250.64
| Less: Provision | (9,146,721.10) | (9,096,299.50) |
Total 778,979,126.16 1,261,157,951.14
2) Other receivables are classified by nature
In RMB YuanNature Ending balance Beginning balanceBond 382,933,957.10 16,618,938.83Subsidies for new energy vehicles 191,328,464.00 667,729,527.63Petty cash 52,817,507.27 63,703,195.18Investment funds 35,000,000.00 399,486,432.52Other 116,899,197.79 113,619,856.98Total 778,979,126.16 1,261,157,951.14
3) The changes in the provision for bad debts for other receivables based on the 12-month expected credit losses and the expected
credit losses for the entire duration
In RMB YuanCategory
Beginning
balance
Change amount in the current period
Ending balanceProvision
Withdrawal or
reversal
Write-off2023.6.30 9,096,299.50 74,667.40 24,245.80 9,146,721.102022.12.31 7,466,239.96 1,886,641.46 156,581.92 100,000.00 9,096,299.50
4) Other receivables with top five ending balances collected by debtors
In RMB YuanName Nature Ending balance Aging
Proportion inending balance ofother receivables
(%)
Endingbalance of
bad debtprovisionFirst Bond 300,000,000.00 1 to 2 years 38.06
Second
| Subsidies for new energy |
vehicles
191,328,464.00 Within 1 year 24.28
Third Disposal of assets 48,350,040.00 2 to 3 years 6.13
Fourth Bond 44,615,500.00 Within 1 year 5.66
| Fifth | Equity investment funds | 35,000,000.00 | Within 1 year | 4.44 |
Total 619,294,004.00 - 78.57
5) Other receivables derecognized due to transfer of financial assets
As of June 30, 2023, the Group has no other receivables derecognized as financial asset transfers. (December 31, 2022: Nil).
7. Inventory
(1) Classification of inventory
In RMB Yuan
Item
Ending balance Beginning balance
Balance
Provision forimpairment ofinventories orprovision forimpairment of
contractperformance
costs
Net value Balance
Provision forimpairment ofinventories orprovision forimpairment of
contractperformance
costs
Net value
Rawmaterials
926,643,222.25
387,861,235.15
538,781,987.10
1,230,104,093.50
439,269,923.99
790,834,169.51
| Work in |
transit
178,075,579.62
178,075,579.62
130,255,961.90
130,255,961.90
| Work in |
progress
1,126,031,029.08
68,920,010.07
1,057,111,019.01
1,719,902,124.07
53,609,953.08
1,666,292,170.99
| Commodity |
stock
8,543,057,327.85
97,202,201.72
8,445,855,126.13
3,264,190,903.27
87,522,918.36
3,176,667,984.91
| Consigned |
processingmaterial
26,582,772.70
26,582,772.70
Spare parts33,116,871.58
33,116,871.58
32,674,452.89
32,674,452.89
Total10,806,924,030.38
553,983,446.94
10,252,940,583.44
6,403,710,308.33
580,402,795.43
5,823,307,512.90
(2) Provision for inventory
In RMB YuanItem
Beginning
balance
Increase Decrease
Ending balanceProvision Other Reversal Write-off
Raw materials
| Raw materials | 439,269,923.99 | 68,334,317.49 | 19,789,507.89 | 240,682.47 | 139,291,831.75 | 387,861,235.15 |
| Work in |
progress
53,609,953.08
28,045,494.93
330,076.99
12,405,360.95
68,920,010.07
Commoditystock
87,522,918.36
17,771,158.05
160,909,600.79
3,234,731.90
165,766,743.58
97,202,201.72
Total 580,402,795.43 114,150,970.47 180,699,108.68 3,805,491.36 317,463,936.28 553,983,446.94
8. Contract assets
In RMB YuanItem
Ending balance
| Ending balance | Beginning balance |
Balance
Provision forimpairment
Net value Balance
Provision forimpairment
Net valueContractassets
2,712,885,743.74
485,561,233.57
2,227,324,510.17
747,871,586.89
289,482,399.79
458,389,187.10
Total 2,712,885,743.74
485,561,233.57
2,227,324,510.17
747,871,586.89
289,482,399.79
458,389,187.10
Current contract assets provision for impairment：
In RMB Yuan
| Beginning balance | Provision | Turn back | Resale | Ending balance |
2023.6.30 289,482,399.79
65,572,656.78
135,456,176.99
4,950,000.00
485,561,233.56
2022.12.31 169,661,981.98
129,619,022.81
9,798,605.00
289,482,399.79
9. Assets held for sale
In RMB YuanItem Balance
Provision forimpairment
Net value Fair Value
Estimateddisposal costs
Expecteddisposal timeAssets held forsale
327,144.11 327,144.11Within 1 yearTotal327,144.11 327,144.11
10. Other current assets
In RMB YuanItem Ending balance Beginning balanceAccrual input tax 874,407,379.73
803,647,039.82
Prepaid taxes 237,176,376.68
250,386,657.89
Others 14,765,170.48 745,970.48
| Total | 1,126,348,926.89 | 1,054,779,668.19 |
11. Long-term equity investments
In RMB YuanInvestee Beginning balance
Increase / decrease
Ending balance
Provision
endingbalanceAddition
equity method
Other decreasesI. Joint VentureChangan Ford Automobile Co., Ltd. 712,459,351.85
Investment income under
399,619,898.50
1,112,079,250.35
Changan Mazda Automobile Co., Ltd. 1,433,304,456.32
(100,026,283.01) 1,333,278,173.31
Changan Mazda Engine Co., Ltd. 824,042,049.05
4,107,980.55
828,150,029.60
Nanchang Jiangling Holding Co., Ltd. 1,810,629,644.86
146,167,915.87
1,956,797,560.73
| Subtotal | 4,780,435,502.08 | 449,869,511.91 | 5,230,305,013.99 |
II. AssociatesChongqing Changan Kuayue Automobile Co.,Ltd.
209,768,936.34
5,402,511.72
215,171,448.06
Changan Automobile Financing Co.,Ltd 2,778,898,410.33
172,182,412.71
2,951,080,823.04
Nanjing Chelai Travel Technology Co., Ltd. 624,773.31
(92,277.85) 532,495.46
Hunan Guoxin Semiconductor Technology Co.,Ltd.
25,452,425.26
71,917.19
25,524,342.45
Jiangling Holding Co., Ltd.(note 1)Chongqing Changan Kuayue Automobile SalesCo., Ltd. (note 1)
Nanjing Leading Equity Investment
Management Co., Ltd. (Limited Partnership)
2,570,421,464.70
| Nanjing Leading Equity Investment |
(51,784.35) 2,570,369,680.35
Nanjing Leading Equity Investment Partnership 1,112,210.69
(5,089.84) 1,107,120.85
Zhongqi Chuangzhi Technology Co., Ltd. 168,492,790.78
(6,754,636.46) 161,738,154.32
| Chongqing Changxin Zhiqi Private Equity Investment Fund Partnership (Limited |
Partnership)
170,440,054.08
242,103.89
170,682,157.97
Anhe
| Chongqing Dingfeng Automobile |
Contract Private Equity Investment Fund
61,568,706.08
4.26
61,568,710.34
Avatr Technology (Chongqing) Co., Ltd 2,644,535,940.48
(745,447,867.08) 1,899,088,073.40
Chongqing Changan Innovation Private Equity1,000,844.59
446.93
1,001,291.52
(Limited Partnership)
| Investment Fund Partnership Enterprise |
| Anhe (Chongqing) Equity Investment Fund |
Management Co., Ltd.
5,150,787.41
(553,650.85) 4,597,136.56
Hangzhou Chelizi Intelligent Technology Co.,Ltd.
3,020,026.80
3,020,026.80
Master Changan Automobile Co., Ltd. 45,248,645.36
6,823,643.69
52,072,289.05
Chongqing Changxian Intelligent TechnologyCo., Ltd
102,000,000.00
66,933.68
102,066,933.68
2)
940,490,937.99
| Deepal Automobile Technology Co., Ltd.(note |
(67,105,457.17) (873,385,480.82)
| Time FAW Power Battery Co., Ltd.(note 3) | 252,012,401.16 | 2,691,403.28 | 254,703,804.44 |
Chongqing Wutong Chelian Technology Co.,Ltd. (note 3)
75,267,178.90
6,686,538.61
81,953,717.51
Western Car Network (Chongqing) Co., Ltd.(note 3)
2,478,830.94
(151,734.46) 2,327,096.48
Beijing Fang’an cresent taxi Co., Ltd. (note 4)Subtotal 9,626,226,954.20 431,758,411.00 (625,994,582.10) (873,385,480.82) 8,558,605,302.28Total 14,406,662,456.28 431,758,411.00 (176,125,070.19) (873,385,480.82) 13,788,910,316.27Note 1: As of June 30, 2023, the Group had no obligation to bear additional losses to Chongqing Changan Kuayue Vehicle Marketing Co., Ltd. and Jiangling Holdings Co., Ltd. Therefore, whenthey incurred excess losses, only long-term equity investments were written down to zero, and no excess losses related to investments in the aforementioned companies were recognized.Note 2: In February 2023, due to the acquisition of equity in Deepal Automobile Technology Co., Ltd. by the group, it changed from an associate to a subsidiary.Note 3: This year, the Group increased the investment of 329,758,411.00 yuan in the affiliated enterprises Time FAW Power Battery Co., Ltd., wutong Chelian Technology Co., Ltd., and WesternChewang (Chongqing) Co., Ltd., which is the result of the Group's acquisition of Deepal Automobile Technology Co., Ltd., and its long-term equity investment in the affiliated enterprises isincluded in the consolidation scope.Note 4: In January 2023, the Group completed the equity disposal of Beijing Fangan Crescent Taxi Co., Ltd.
12. Investment in other equity instruments
In RMB YuanItem
Accumulativechanges in fairvalue included inothercomprehensiveincome
Fair value Dividends Income
Reason for beingdesignatedas fair valuethrough othercomprehensive
incomeChina South Industry Group Finance Co.,Ltd.
181,979,200.00
339,000,000.00
180,656,814.04
| Unlisted equity |
instruments
Association Automotive Research InstituteCo., Ltd.
2,700,000.00
| Guoqi (Beijing) Intelligent Network |
52,700,000.00
| Unlisted equity |
instruments
Co., Ltd.
40,000,000.00
| Guoqi Automobile Power Cell Research |
instruments
| Unlisted equity | ||
| China South Industry Group Financial |
Leasing Co., Ltd.
3,698,000.00
34,250,000.00
instrumentsZhong Fa Lian Investment Co., Ltd. 21,000,000.00
| Unlisted equity | ||
instruments
| Unlisted equity | ||
| CAERI(Beijing) automobile Lightweight |
Technology ResearchInstitution Co., Ltd.
3,000,000.00
| Unlisted equity |
instrumentsTotal 188,377,200.00 489,950,000.00 180,656,814.04
13. Investment property
Cost Model
In RMB YuanItem Buildings TotalI. Original cost
| 1. Opening balance | 10,050,100.00 | 10,050,100.00 |
2. Increase in current period
3. Decrease in current period
4. Ending balance 10,050,100.00 10,050,100.00II. Accumulated depreciation and amortization
1. Opening balance 3,627,384.96 3,627,384.96
2. Increase in current period 113,355.78 113,355.78
3. Decrease in current period
4. Ending balance 3,740,740.74 3,740,740.74III. Impairment provision
1. Opening balance
2. Increase in current period
3. Decrease in current period
4. Ending balanceIV. Net Value
1. Ending 6,309,359.26 6,309,359.26
2. Beginning 6,422,715.04 6,422,715.04
The investment property is rented to third parties in the form of operating lease.
As at 30 June 2023, there was no investment property without property certificate (As at 31 December 2021: Nil).
14. Fixed assets
(1) Details of fixed assets
In RMB YuanItem Buildings Machinery Vehicles Other Equipment TotalI. Original costBeginning 9,828,625,137.70 26,295,137,118.43 1,983,195,890.87 9,475,715,171.05 47,582,673,318.05
| Purchase | 4,473,693.57 | 215,663.71 | 7,809,446.06 | 12,498,803.34 | |
| Transfer from Construction in |
progress
61,804,269.27 340,347,569.12 13,604,766.67 440,568,271.53 856,324,876.59
business merger
470,810,107.30 97,376.64 96,160,690.62 567,068,174.56
| Increase in |
Other additions 6,587,437.89 5,495,575.99 60,580.42 445,449.63 12,589,043.93Disposal 299,969,783.23 170,283,554.82 39,508,903.91 102,557,039.61 612,319,281.57
| Government grants | 25,065,921.11 | 36,347,887.20 | 61,413,808.31 |
Other decrease 361,031.96 9,923,097.01 205,904.59 10,490,033.56
Ending 9,596,686,029.67 26,910,991,491.47 1,921,111,582.61 9,918,141,989.28 48,346,931,093.03II.Accumulateddepreciation
Beginning 3,123,481,499.40 16,387,379,193.35 712,742,045.45 5,343,343,137.24 25,566,945,875.44
Accrual 171,728,462.63 801,278,672.10 141,340,209.22 378,124,663.67 1,492,472,007.62
| Increase in |
business merger
88,078,845.80 11,806.91 30,208,499.83 118,299,152.54
Other additions 2,817,640.69 4,561,751.68 8,603.52 775,586.11 8,163,582.00
Disposal 215,472,125.28 133,916,182.37 28,858,045.79 97,997,712.86 476,244,066.30
Other decrease 358,999.11 8,831,258.30 102,262.81 9,292,520.22
Ending 3,082,196,478.33 17,138,551,022.26 825,142,356.50 5,654,454,173.99 26,700,344,031.08
III.ImpairmentProvision
Beginning 97,718,327.95 2,189,788,051.83 57,769,334.61 323,687,036.78 2,668,962,751.17
Accrual 4,087,988.86 121,158,826.10 42,369,038.67 17,229,525.66 184,845,379.29
| Increase in |
business merger
62,029.55 252,215.89 314,245.44
Disposal 34,731,080.99 34,393,754.16 4,415,040.34 3,348,143.93 76,888,019.42
| Ending | 67,075,235.82 | 2,276,615,153.32 | 95,723,332.94 | 337,820,634.40 | 2,777,234,356.48 |
IV. Net Value
Ending 6,447,414,315.52 7,495,825,315.89 1,000,245,893.17 3,925,867,180.89 18,869,352,705.47
Beginning 6,607,425,310.35 7,717,969,873.25 1,212,684,510.81 3,808,684,997.03 19,346,764,691.44
(2) Fixed assets that are temporarily unused
On June 30, 2023, the fixed assets with a book value of RMB 108,924,744.94 (December 31, 2022: RMB 191,192,253.37) were temporarily idle due to product upgrading and other reasons.
(3) The fixed assets which are rented out under operating leases
In RMB YuanItem EndingBuildings 184,106,042.14Vehicles 915,602,548.69
| Total | 1,099,708,590.83 |
(4) Fixed assets with incomplete property rights certificates
In RMB YuanItemBook value
Reasons for not completing the property
rights certificateEngine and vehicle project 917,466,884.66
ProcessingGlobal R&D Center Project 9,246,434.77
ProcessingTotal926,713,319.43
15. Construction in progress
(1) Details of construction in progress
In RMB YuanItem
Ending balance Beginning balanceBalance Provision Carrying amount Balance Provision Carrying amount
productionequipment
80,451,176.96
| Mini-bus |
80,451,176.96
75,025,377.82
75,025,377.82
Car productionequipment
298,244,431.71
1,310,363.23
296,934,068.48
242,918,939.86
22,624,011.22
220,294,928.64
Engine plant 608,138,520.52
608,138,520.52
504,558,659.05
504,558,659.05
Vehicle researchinstitution
24,918,534.16
24,918,534.16
17,740,102.50
17,740,102.50
Car productionProject ofHefei Changan
52,500,806.38
52,500,806.38
55,863,516.26
55,863,516.26
| Yubei Factory |
Replacement
ConstructionProject
426,535,063.94 426,535,063.94 41,224,362.58 41,224,362.58
| and Upgrading |
| Nanjing |
Changan Project
493,667,793.08
493,667,793.08
385,922,235.89 385,922,235.89
| Others | 265,463,471.46 | 23,108,966.89 | 242,354,504.57 | 110,378,003.02 | 23,108,967.12 | 87,269,035.90 |
Total 2,249,919,798.21 24,419,330.12 2,225,500,468.09 1,433,631,196.98 45,732,978.34 1,387,898,218.64
(2) Movements of significant construction in progress
In RMB YuanItem
Budget(In 1,000 RMB)
Beginningbalance
Addition
Transferred to
fixed assets
Otherdeduction
Ending balance
The projectinvestments’proportionof budget(%)
Progress ofconstruction(%)
Source of fundsMini-busproductionequipment
137,470.00
75,025,377.82
116,170,932.89
110,715,639.06
29,494.69
80,451,176.96 70.00
70.00
Self-fundedCar productionequipment
360,738.00
220,294,928.64
88,627,425.25
11,987,406.41
879.00
296,934,068.48 37.00
37.00
| Self-raised and |
additional
issuanceEngine plant 485,216.00
504,558,659.05
175,347,789.87
71,758,364.90
9,563.50
608,138,520.52 67.00
67.00
Self-
| raised and |
additional
issuanceVehicle researchinstitution
209,906.00
17,740,102.50
36,321,076.06
29,142,644.40
24,918,534.16 77.00
77.00
Self-funded
project ofHefei Changan
394,980.00
| Car production |
55,863,516.26
29,114,023.06
15,540,120.15
16,936,612.79
52,500,806.38 89.00
89.00
Self-
additional
issuance
| raised and | ||
| Yubei Factory |
Replacement
ConstructionProject
450,000.00 41,224,362.58 386,152,904.19 842,202.83 426,535,063.94 10.00 10.00 Self-fundedNanjingChangan Project
231,028.77385,922,235.89
| and Upgrading | ||
117,819,350.58
9,443,204.39
630,589.00
493,667,793.08 22.00
22.00
Self-fundedOthers
| 87,269,035.90 |
762,822,965.95 607,737,497.28 242,354,504.57Total 1,387,898,218.64 1,712,376,467.85 856,324,876.59 18,449,341.81 2,225,500,468.09
(3) The movement of impairment for construction in progress is as follows:
In RMB YuanItem Beginning balance Addition Deduction Ending balanceJune 30, 2023 45,732,978.34
21,313,648.22
24,419,330.12
December 31, 2022 71,691,670.00
1,533,334.00 27,492,025.66 45,732,978.34
16. Right-of-use assets
In RMB YuanItem Buildings TotalI. Original cost
1. Beginning 152,893,426.61 152,893,426.61
2. Purchase 91,206,361.68 91,206,361.68
3. Disposal
| 3. Disposal | 34,586,561.85 | 34,586,561.85 |
4. Other deduction 216,647.90 216,647.90
5. Ending 278,469,702.24 278,469,702.24II. Accumulated depreciation
1. Beginning 52,080,040.60 52,080,040.60
| 2. Purchase | 32,246,838.71 | 32,246,838.71 |
3. Disposal 7,382,368.87 7,382,368.87
4. Other deduction
5. Ending 91,709,248.18 91,709,248.18III. Impairment provision
| 1. Beginning |
2. Purchase
3. Disposal
4. Other deduction
5. Ending
| III. Carrying amount | 186,760,454.06 | 186,760,454.06 |
1. Ending 100,813,386.01 100,813,386.01
2. Beginning 152,893,426.61 152,893,426.61
17. Intangible assets
(1) Details of intangible assets
In RMB YuanItem Land use rights Patent
Non-patenttechnology
Software use
rights
Trademark use
rights
TotalI. Original cost
2,237,966,691.60
| Beginning |
85,556,571.30
7,695,744,860.28
845,391,055.17
211,864,157.55
11,076,523,335.90
Purchase841,400.00
16,280,912.97
17,122,312.97
Internal
development
891,781,541.36
| research and |
891,781,541.36
Increase inbusiness merger
8,751,791,175.80
3,812,679.22
2,412,758,750.00
11,168,362,605.02
Otheradditions
244,259.88
244,259.88
subsidies
| Government |
696,933.96
696,933.96
| Ending |
2,237,966,691.60 85,556,571.30 17,340,158,977.44 865,031,973.28 2,624,622,907.55 23,153,337,121.17
amortization
Beginning468,031,897.59
| II. Accumulated | |
7,129,714.27
4,904,544,443.73
726,462,315.72
211,791,516.98
6,317,959,888.29
Accrual23,244,982.66
4,515,887.14
492,517,355.98
17,725,650.40
100,531,614.60
638,535,490.78
| Increase in |
business merger
658,468,887.40
1,531,371.38
660,000,258.78
Ending491,276,880.25 11,645,601.41 6,055,530,687.11 745,719,337.50 312,323,131.58 7,616,495,637.85
III. Impairment
provision
Beginning288,560,268.76
| III. Impairment | ||
23,617,923.17
312,178,191.93
Accrual41,460,645.81
41,460,645.81
| Increase in |
business merger
114,723,135.98
114,723,135.98
Ending444,744,050.55 23,617,923.17 468,361,973.72
IV、Carryingamount
Ending1,746,689,811.35 73,910,969.89 10,839,884,239.78 95,694,712.61 2,312,299,775.97 15,068,479,509.60
Beginning1,769,934,794.01 78,426,857.03 2,502,640,147.79 95,310,816.28 72,640.57 4,446,385,255.68
As of June 30, 2023, intangible assets formed through internal research and development accounted for 71.94% of the year-end bookvalue of intangible assets (December 31, 2022: 56.28%).
As of June 30, 2023, there is no land use rights that have not completed the land use right certificate (December 31, 2022: Nil).
18. Development expenditure
In RMB Yuan
Item
Beginningbalance
Deduction
Ending balanceRecognized asintangible assets
Charged to income
Statement of the
current year
Other deductionAutomobileDevelopment
723,211,177.47 1,063,209,112.26 568,748,628.02 891,781,541.36 69,615,120.74Total 723,211,177.47 1,063,209,112.26 568,748,628.02 891,781,541.36 69,615,120.74
19. Development expenditure
(1) Original book value of goodwill
In RMB YuanItem Beginning balance Addition Deduction Ending balanceHebei Changan Automobile Co., Ltd 9,804,394.00 9,804,394.00Nanjing Changan Automobile Co., Ltd
| Deepal Automobile Technology Co., Ltd | 1,799,533,524.87 | 1,799,533,524.87 |
Total 9,804,394.00 1,799,533,524.87 1,809,337,918.87
(2) Provision for goodwill
In RMB YuanItem Beginning balance Addition Deduction Ending balance
| Nanjing Changan Automobile Co., Ltd. | 73,465,335.00 | 73,465,335.00 |
Total 73,465,335.00 73,465,335.00
20. Long-term deferred expenses
In RMB YuanItem Beginning balance Addition Deduction Ending balanceLong-termdeferred expenses
26,375,422.17 330,568.52 1,468,484.08 25,237,506.61Total 26,375,422.17 330,568.52 1,468,484.08 25,237,506.61
21. Deferred tax assets and liabilities
(1) Deferred income tax assets that are not offset:
In RMB YuanItem
Ending balance Beginning balanceDeductible temporarydifferences
Deferred tax assets
Deductible temporary
differences
Deferred tax assetsAssets provision 3,335,103,631.55
500,307,251.00
3,278,951,051.51
491,238,489.39
Accrued expenses andcontingent liabilities
8,746,751,245.95
1,322,800,648.65
8,585,308,052.56
1,298,584,169.65
| Unpaid tech development expense and advertisement |
expense
148,198,861.26
22,229,829.19
372,397,166.51
55,859,574.98
| Deferred income | 2,681,013,729.64 | 452,674,206.27 | 2,699,509,959.27 | 457,007,113.15 |
Unpaid salary and bonus andothers
6,041,961,732.14
913,093,121.89
4,831,140,039.89
725,797,840.01
Total 20,953,029,200.54 3,211,105,057.00 19,767,306,269.74 3,028,487,187.18
(2) Deferred income tax liabilities that are not offset:
In RMB YuanItem
Ending balance Beginning balanceTaxable temporarydifferences
Deferred tax
liabilities
Taxable temporary
differences
Deferred tax
liabilitiesChanges in fair value of trading financialassets
392,544,668.53
58,881,700.28
358,180,218.36
53,727,032.75
| Fair value adjustment of business |
combination not under common control
9,556,125,001.53
1,433,418,750.23
204,733,319.00
30,709,997.85
Long-term equity investment941,637,804.40
141,245,670.66
971,329,619.28
145,699,442.89
Other 43,149,109.32
8,198,330.77
46,001,784.40
6,900,267.67
Total 10,933,456,583.78 1,641,744,451.94 1,580,244,941.04 237,036,741.16
(3) Details of unrecognized deferred tax assets
In RMB Yuan
| Item | Ending balance | Beginning balance |
The deductible temporary difference 1,365,435,669.75
1,785,535,297.97
The deductible tax loss 10,857,072,476.10
3,908,340,793.95
Total 12,222,508,145.85 5,693,876,091.92Note: Due to the uncertainty of whether there will be enough taxable profit in future to utilize the above deductible loss, no deferredtax assets have been recognized accordingly.
(4) Maturity period for unrecognized deductible tax losses:
In RMB YuanYear Ending balance Beginning balance Notes2023 719,486,343.29
719,486,343.29
2024 644,243,430.69
644,243,430.69
2025 669,056,651.63
669,056,651.63
2026 172,527,777.26
172,527,777.26
2027 and beyond 8,651,758,273.23
1,703,026,591.08
Total 10,857,072,476.10
3,908,340,793.95
22. Short-term loans
In RMB YuanItem Ending balance Beginning balance
| Mortgage loans | 29,000,000.00 |
Guaranteed loan 50,000,000.00Total 50,000,000.00 29,000,000.00As at 30 June 2023, there was no overdue short-term loan (as at 31 December 2022: Nil).
23. Trading financial liabilities
In RMB YuanItem Ending balance Beginning balanceTrading financial liabilities37,813,520.40Total37,813,520.40
24. Notes payable
In RMB Yuan
Item Ending balance Beginning balanceCommercial acceptance bill 2,778,006,144.76 5,001,155,687.84
Bank acceptance bill 30,934,066,264.26 17,071,638,176.99
Total 33,712,072,409.02 22,072,793,864.83
As at 30 June 2023, there were no significant accounts payable aged over one year (as at 31 December 2022: Nil).
25. Accounts payable
In RMB Yuan
Item Ending balance Beginning balanceAccounts payable 30,465,634,254.25 29,449,664,138.75Total 30,465,634,254.25 29,449,664,138.75As at 30 June 2023, there were no significant accounts payable aged over one year (as at 31 December 2022: Nil).
26. Contract liabilities
In RMB Yuan
Item
| Item | Ending balance | Beginning balance |
Advance payment 6,085,144,617.15
4,808,762,223.46
Advance service payment 1,030,934,007.43
846,494,569.20
Total 7,116,078,624.58
5,655,256,792.66
27. Payroll payable
(1) Payroll payable
In RMB YuanItem Beginning balance Addition Deduction Ending balance
benefits
2,716,484,740.12
| Short term salary |
5,070,477,217.90
3,908,885,458.12
3,878,076,499.90
| Defined contribution |
plans
88,857,749.73
427,650,480.66
393,425,847.42
123,082,382.97
Early retirementbenefits
1,816,000.00 1,816,000.00Total 2,807,158,489.85
5,498,127,698.56
4,302,311,305.54
4,002,974,882.87
(2) Short term salary benefits：
In RMB Yuan
| Item | Beginning balance | Addition | Deduction | Ending balance |
1. Salary, bonus, allowance
and subsidy
2,221,656,081.04
4,158,712,198.93
2,906,028,582.43
3,474,339,697.54
2. Employee benefit 50,756,371.68
187,911,611.89
231,383,764.66
7,284,218.91
3. Social insurance 33,848,460.18
317,201,669.69
290,720,761.46
60,329,368.41
Medical insurance21,350,192.95
268,524,262.03
246,361,315.68
43,513,139.30
Industrial injuryinsurance
11,102,522.24
29,456,054.74
23,747,390.13
16,811,186.85
Maternity insurance 1,395,744.99
442,746.86
1,833,449.59
5,042.26
Supplementarymedical insurance
18,778,606.06
18,778,606.06
fund
83,944,161.72
| 4. Housing accumulation |
259,477,229.93
309,278,181.88
34,143,209.77
5. Labor fund and employee
education fund
326,279,665.50
147,174,507.46
171,474,167.69
301,980,005.27
Total 2,716,484,740.12
5,070,477,217.90
3,908,885,458.12
3,878,076,499.90
(3) Defined contribution plans：
In RMB Yuan
Item
| Item | Beginning balance | Addition | Deduction | Ending balance |
| 1. Basic retirement |
security
79,031,084.59
405,052,440.21
374,117,320.86
109,966,203.94
| 2. Unemployment |
insurance
9,826,665.14
22,598,040.45
19,308,526.56
13,116,179.03
Total 88,857,749.73
427,650,480.66
393,425,847.42
123,082,382.97
The salary, bonus, allowance and subsidy, employee benefits and other social insurances mentioned above are paid in time accordingto related laws and regulations and sets of the Group.
28. Taxes payable
In RMB YuanItem Ending balance Beginning balance
| Value-added tax | 726,595,058.42 | 655,162,944.40 |
Consumption tax 427,033,929.08
378,822,293.63
Corporate income tax 261,659,659.74
550,250,134.24
City maintenance and construction tax 90,984,717.30
106,797,577.85
Others 40,516,904.58
58,913,132.20
| Total | 1,546,790,269.12 | 1,749,946,082.32 |
29. Other payables
In RMB YuanItem Ending balance Beginning balanceInterest payable 16,112,069.40
1,478,888.85Dividend Payable 2,341,524,610.92 79,742.80Other payables 6,104,890,752.47 6,081,207,793.02Total 8,462,527,432.79 6,082,766,424.67
（1） Interest payable
In RMB YuanItem Ending balance Beginning balanceInterest on long-
installment payments and due repaymentof principal
22,222.21
| term loans with |
562,222.18Interest payable on short-term loans 89,847.20
Interest payable on corporate bonds 15,999,999.99
916,666.67Total16,112,069.40 1,478,888.85
（2） Dividend Payable
In RMB YuanItem Ending balance Beginning balanceCommon stock dividends 2,341,414,868.12Minority shareholder dividends 109,742.80 79,742.80Total2,341,524,610.92 79,742.80
（3） Other payables
In RMB YuanItem Ending balance Beginning balancePayment for the purchase and construction of fixedassets, intangible assets, and engineering deposit
1,660,151,791.66 1,190,478,260.12Customer and supplier deposit 1,394,012,215.84 839,653,876.07Advertising expenses 689,677,376.28 505,569,065.16Storage and shipping fees 595,944,380.19 382,409,902.25Treasury stock repurchase obligation 442,866,474.72 627,060,416.52
| Repair and processing costs | 272,324,171.31 | 278,765,596.52 |
National Supplementary Advance Appropriation 175,967,030.00 697,956,559.00Advance payment for land and plant disposal 635,268,035.18Other 873,947,312.47 924,046,082.20Total6,104,890,752.47 6,081,207,793.02
30. Non-current liability within 1 year
In RMB YuanItem Ending balance Beginning balanceLong-term loan within 1 year 4,000,000.00
604,000,000.00Long-term payables within 1 year 244,429,325.65
Lease liabilities within 1 year
| Lease liabilities within 1 year | 65,596,855.90 | 37,294,575.69 |
Total 69,596,855.90 885,723,901.34
31. Other current liabilities
In RMB YuanItem Ending balance Beginning balanceAccrued commercial discount payable 4,467,809,005.78
3,837,216,057.38Accrued market development expense 976,607,722.67
1,004,950,610.70
| Accrued transportation fee | 803,463,091.70 | 728,264,657.72 |
Accrued technology royalty 650,010,691.12
534,463,454.23Accrued integrated services fee 83,460,160.55
87,715,544.50
consumption
73,106,266.32
| Accrued negative points for fuel |
59,308,609.28Accrued labor service fee 51,173,874.83
107,051,967.02Accrued utilities 35,050,613.99
60,370,787.91
| Others | 250,614,221.08 | 207,702,978.88 |
Total 7,391,295,648.04 6,627,044,667.62
32. Long-term Loan
In RMB YuanItem Ending balance Beginning balanceCredit loan 80,000,000.00 640,000,000.00
| Deduction: Loan within 1 year | 4,000,000.00 | 604,000,000.00 |
Net Long-term Loan 76,000,000.00
36,000,000.00
As at June 30, 2023, the interest rates of the above loans were 1.00% (as at 31 December 2022: 1.00%-3.00%).
As at June 30, 2023, there is no overdue long-term loans (as at 31 December 2022: Nil).
33. Bonds payable
In RMB YuanItem Ending balance Beginning balanceCorporate bonds 999,558,490.56 999,528,301.88Total999,558,490.56 999,528,301.88Our company publicly issued technology innovation company bonds (Phase 1) to professional investors in December 2022, with a facevalue of RMB 1000000000.00 and a fixed coupon rate of 3%. The simple interest is paid annually from December 20, 2023 to 2027,and the final redemption date is December 20, 2027.
34. Lease liabilities
In RMB Yuan
| Item | Ending balance | Beginning balance |
Lease liabilities 186,466,884.11
97,499,973.67
Less：Lease liabilities within 1 year65,596,855.90
37,294,575.69
| Net lease liabilities | 120,870,028.21 | 60,205,397.98 |
35. Long-term payables
In RMB YuanItem Ending balance Beginning balanceLong-term payables 408,939,511.34
Special payables 136,176,629.42 144,579,238.78
| Total | 136,176,629.42 | 553,518,750.12 |
(1) Long-term payables:
In RMB YuanItem Ending balance Beginning balancePurchase of fixed assets 653,368,836.99Less：Long-term payables within 1 year
| 244,429,325.65 | ||
| Total | 408,939,511.34 |
(2) Special payables:
In RMB YuanItem Beginning balance Addition Deduction Ending balance
project
54,122,972.00
| Intelligent manufacturing |
42,324,009.53
44,438,445.62
52,008,535.91
automobile structure
14,410,557.94
| Lightweight design of |
390,000.00
1,962,400.84
12,838,157.10Others 76,045,708.84
23,993,009.70 28,708,782.13
71,329,936.41Total 144,579,238.78 66,707,019.23 75,109,628.59 136,176,629.42
36. Long-term payroll payable
In RMB YuanItem Ending balance Beginning balanceNet obligation of defined benefit plan 26,358,585.90
29,227,000.00Early retirement 5,786,000.00 5,786,000.00Total 32,144,585.90 35,013,000.00
37. Contingent liabilities
In RMB YuanItem Ending balance Beginning balanceWarranty 5,228,857,409.75 4,152,001,660.31
Contingent liabilities of contract
performance
434,908,181.43 437,297,661.18Total 5,663,765,591.18 4,589,299,321.49
38. Deferred income
In RMB YuanItem Beginning balance Addition Deduction Ending balance
assets
222,169,206.66 63,820,286.00
| Government grants related to |
72,095,887.20 213,893,605.46
| Government grants related to |
gains
125,399,342.96 11,700,000.00
450,000.00
136,649,342.96
Total 347,568,549.62 75,520,286.00 72,545,887.20 350,542,948.42
Details of government grants are as follows:
In RMB YuanLiability Beginning balance Addition Deduction Ending balanceRelated to assets: 222,169,206.66
63,820,286.00
9,985,144.93 62,110,742.27
construction subsidies
166,416,924.20
| Production and |
63,820,286.00
9,985,144.93 62,110,742.27
| Other government |
subsidies
55,752,282.46
Related to gains: 125,399,342.96
11,700,000.00
450,000.00
R&D technologysubsidies
121,750,757.27
11,700,000.00
450,000.00
Other governmentsubsidies
3,648,585.69
Total 347,568,549.62
75,520,286.00
10,435,144.93 62,110,742.27
39. Other non-current liabilities
In RMB YuanItem Ending balance Beginning balanceAdvance service payment 2,217,804,236.36 1,728,721,535.34
within 1 year
1,030,934,007.43 846,494,569.20Net other non-current liabilities 1,186,870,228.93 882,226,966.14
40. Share capital
In RMB Yuan
Beginningbalance
Changes（+，-）
Ending balanceAdditional
issued
Stockdividend
Deduction: Advance service paymentProvident
fundtransfer
Others
| Provident | ||
| I. Shares with sales |
restrictions
675,775,474.00 (46,200,160.00) 629,575,314.00
1. State-
| owned legal |
person shares
515,311,738.00 515,311,738.00
2. Other domestic shares 159,248,366.00 (46,200,160.00) 113,048,206.00
Including: Domestic legalperson shares
shares
159,248,366.00 (46,200,160.00) 113,048,206.00
| Domestic natural person |
3. Foreign shares 1,215,370.00 1,215,370.00
Including:
| Foreign legal |
person shares
shares
| Foreign natural person |
| II. Shares without sales |
restrictions
9,246,023,948.00 43,723,738.00 9,289,747,686.00
| 1.Ordinary shares |
denominated in RMB
7,604,409,171.00 43,723,738.00 7,648,132,909.00
2. Domestic listed foreign
shares
1,641,614,777.00 1,641,614,777.00
III. Total shares 9,921,799,422.00 (2,476,422.00) 9,919,323,000.00
41. Capital reserves
In RMB YuanItem Beginning balance Addition Deduction Ending balanceShare premium 6,485,177,332.59 286,327,307.00
7,193,909.31
6,764,310,730.28Share-based payments 648,749,767.92 187,899,000.00
286,327,307.00
550,321,460.92
transferred arising fromthe old standards
44,496,899.00 44,496,899.00reserve of equityinvestments
17,015,985.20 17,015,985.20
Capital reserveOther capital reserves
(Note)
1,337,366,701.06 5,395,781.70 663,566,110.70
| Other capital reserves |
679,196,372.06Total 8,532,806,685.77 479,622,088.70 957,087,327.01 8,055,341,447.46Note : In 2023, the decrease in other capital reserves was mainly due to the transfer of changes in capital reserves under the equitymethod accounting involved in the original holding of equity in Deepal Automobile Technology Co., Ltd. into the current period'sprofit and loss.
42. Treasury stock
In RMB YuanItem Beginning balance Addition Deduction Ending balanceTreasury stock 627,060,416.52 184,193,941.80 442,866,474.72Total 627,060,416.52 184,193,941.80 442,866,474.72
43. Other comprehensive income
In RMB Yuan
Item
Beginningbalance
Amount for this reporting period
Ending balanceAmountbefore tax
Deduct: amountstransferred toincome statementwhich wererecognized inothercomprehensiveincome in priorperiod
Deduct: othercomprehensive income inthe previousperiod andtransferred to
retainedearnings inthe current
period
Deduct:
Incometax
Amount attributableto owners
Amountattributable tominorityinterests
I. Other comprehensive income that cannot betransferred to profit or loss under the equitymethod
157,170,398.18
157,170,398.18
Change in net liability or assets fromdefined benefit plan
(185,000.00) (185,000.00)
cannot be transferred to profit or loss under theequity method
(2,765,221.82) (2,765,221.82)
| Other comprehensive income that |
| Changes in the fair value of other |
equity instrument investments
160,120,620.00
160,120,620.00
II. Other
period
(58,328,782.76) 47,734,187.34 47,734,187.34 (10,594,595.42)
Other comprehensive income that canbe transferred to profit or loss under the equitymethod
(75,815.98) (75,815.98)
Foreign currency translation difference (58,252,966.78) 47,734,187.34 47,734,187.34 (10,518,779.44)Total 98,841,615.42 47,734,187.34 47,734,187.34 146,575,802.76
44. Special reserves
In RMB YuanItem Beginning balance Addition Deduction Ending balanceSafety fund 24,090,898.05
64,708,453.30
35,232,765.78
53,566,585.57
Total 24,090,898.05
64,708,453.30
35,232,765.78
53,566,585.57
45. Surplus reserves
In RMB YuanItem Beginning balance Addition Deduction Ending balanceStatutory surplus 3,528,137,635.53 3,528,137,635.53Total 3,528,137,635.53 3,528,137,635.53
46. Retained earnings
In RMB YuanItem Current period Prior periodRetained earnings at beginning of the year 41,379,489,865.45 35,900,674,525.13
Add: Profits attributable to parent company for thecurrent year
7,652,979,346.80 5,857,626,135.78Less: Ordinary share dividend of cash 2,341,414,868.12 1,778,856,191.54Retained earnings at the end of year 46,691,054,344.13 39,979,444,469.37
47. Operating revenue and cost
In RMB YuanItem
Amount for this period Amount for prior periodRevenue Cost Revenue CostMain business 64,198,056,038.61
53,253,026,788.59
55,281,269,652.99 44,486,900,457.55
| Other business | 1,294,042,830.40 | 748,972,479.99 | 1,292,298,740.72 | 873,190,024.65 |
Total 65,492,098,869.01
54,001,999,268.58
56,573,568,393.71
45,360,090,482.20
48. Tax and surcharges
In RMB YuanItem Amount for this period Amount for prior periodConsumption tax 1,666,317,085.12
1,469,234,309.60
City maintenance and construction tax 208,432,679.24
194,046,087.99
Educational surcharge 140,534,177.17
133,244,356.31
| Others | 170,890,307.46 | 149,775,477.87 |
Total 2,186,174,248.99
1,946,300,231.77
49. Operating expenses
In RMB YuanItem Amount for this period Amount for prior periodSales service fee 1,248,854,504.34
1,151,982,258.69
Promotion, advertising fee 1,084,798,251.79
552,426,701.41
| Payroll and welfare | 430,787,399.64 | 297,621,384.05 |
Transportation and storage fees 220,838,227.15
205,973,233.78
Travelling expenses 47,325,735.92
30,218,731.48
Package expenses 11,749,644.92
28,619,986.39
Others 24,080,857.61
18,487,525.97
| Total | 3,068,434,621.37 | 2,285,329,821.77 |
50. General and administrative expenses
In RMB YuanItem Amount for this period Amount for prior periodPayroll and welfare 1,787,629,699.79
1,766,803,412.30
Depreciation and amortization 231,626,256.31 110,312,454.37
| Traffic expenses and travelling expenses | 34,511,835.46 | 21,235,281.45 |
Others 218,192,616.99
285,683,156.98
Total 2,271,960,408.55 2,184,034,305.10
51. Research and development expenses
In RMB YuanItem Amount for this period Amount for prior periodPayroll and welfare 1,349,892,332.55
819,010,682.93
Depreciation and amortization 1,015,646,669.62 614,117,321.15
Subcontract fee 287,631,512.09
272,218,189.13
Material fee 173,948,774.18
112,662,406.81
Test fee 64,510,633.02
17,479,289.63
| Others | 72,974,183.02 | 96,806,255.02 |
Total 2,964,604,104.48 1,932,294,144.67
52. Financial income
In RMB YuanItem Amount for this period Amount for prior periodInterest income
532,594,819.89
438,428,075.90
| 532,594,819.89 |
Less: Foreign exchange gain or loss 24,815,219.82
(40,733,323.13)
Interest expense 36,814,471.44 17,892,411.14
Others
| 17,697,023.74 |
23,270,638.90
Total 453,268,104.89
437,998,348.99
53. Other income
Government subsidies related to daily activities
In RMB YuanItem Amount for this period Amount for prior periodProduction and construction subsidies 657,988,649.18
186,910,289.65
54. Investment income
In RMB YuanItem Amount for this period Amount for prior periodLong-term equity investment losses accounted for by the equitymethod
(180,436,966.53) 78,821,605.75Investment income from disposal of long-term equity investments 1.00The investment income of financial asset held for trading duringits holding period
1,406,842.07 2,690,400.00Dividend income from remaining investments
instruments
180,656,814.04 144,222,128.67Gains from the remeasurement of the remaining equity at fairvalue after the loss of control
2,128,305,938.85Income generated from business combinations not under the samecontrol
5,021,482,128.74Total 5,023,108,819.32 2,354,040,073.27
55. Fair value change
In RMB YuanSource of income from changes in fair value Amount for this period Amount for prior periodFinancial assets held for trading 14,575,284.30 26,136,888.77Financial liabilities held for trading (37,909,945.45)Total (23,334,661.15) 26,136,888.77
56. Impairment loss of credit
In RMB YuanItem Amount for this period Amount for prior periodBad debt for account receivable 15,463,066.50
in other equity
10,913,106.06
Bad debt for other receivables 50,421.60
（138,419.44）
Total 15,513,488.10
10,774,686.62
57. Impairment loss on assets
In RMB Yuan
| Item | Amount for this period | Amount for prior period |
Impairment of inventory 110,345,479.11 72,131,985.60Impairment of fixed assets 184,845,379.29 165,117,956.10
Impairment of intangible assets 41,460,645.81 2,920,133.24Impairment of contract assets 60,622,656.78 1,657,510.52Total 397,274,160.99 241,827,585.46
58. Gain on disposal of assets
In RMB YuanItem Amount for this period Amount for prior periodGain on disposal of fixed-assets 366,667,730.28 68,244,082.28Total 366,667,730.28 68,244,082.28
59. Non-operating income
In RMB YuanItem Amount for this period Amount for prior period
Amount recognized in currentperiod as non-recurring profit
and loss
| Fines, penalties and others | 93,295,575.81 | 54,366,637.51 | 93,295,575.81 |
Total 93,295,575.81
54,366,637.51 93,295,575.81
60. Non-operating expenses
In RMB YuanItem Amount for this period Amount for prior period
Amount recognized in currentperiod as non-recurring profit
and lossDonation 10,600,000.00
10,600,000.00
Vehicle reward 841,680.00
1,711,728.00
841,680.00
Fines and penalties 52,548.37
1,327,232.91
52,548.37
Others 2,004,732.65
1,831,254.32
2,004,732.65
| Total | 13,498,961.02 | 4,870,215.23 | 13,498,961.02 |
61. Income tax expense
(1) Table of income tax expense
In RMB YuanItem Amount for this period Amount for prior periodCurrent income tax expense 429,737,792.88
48,946,847.14
Deferred income tax expense (253,116,967.69) (152,226,972.88)
| Total | 176,620,825.19 | (103,280,125.74) |
(2) The relationship between profit before tax and income tax expense
In RMB YuanItem Amount for this periodTotal profit 7,143,633,825.26Tax at the applicable tax rate 1,071,545,073.79Impact of different tax rates of subsidiaries 24,441,849.80Adjustments to current income tax of previous period 20,812,467.28Non-taxable income (28,463,044.30)Usage previous deductible losses 164,951,569.37Utilize previous deductible losses (16,643,751.06)
| Profit or loss attributable to joint ventures and associates | (723,007,804.69) |
Additional deduction (337,015,535.00)Income tax expense 176,620,825.19
62. Other comprehensive income
Please refer to notes VII, 43.
63. Notes to cash flow statement
(1) Items of cash received relating to other operating activities
In RMB YuanItem Amount for this period Amount for prior period
| Interest income | 527,001,902.34 | 438,428,075.90 |
Government grants 863,412,085.63
401,800,087.37
Others 362,804,407.92 561,189,492.27
Total 1,753,218,395.89 1,401,417,655.54
(2) Items of cash paid relating to other operating activities
In RMB Yuan
| Item | Amount for this period | Amount for prior period |
Selling expense 2,429,716,985.74
1,980,235,740.95
Administrative expense 617,746,243.11
569,553,555.35
Research and development expenses 1,384,809,950.23
609,764,742.34
Others 926,324,359.78 379,019,456.72
Total 5,358,597,538.86 3,538,573,495.36
(3) Items of cash received relating to other investing activities
In RMB YuanItem Amount for this period Amount for prior period
Net cash received from business merger 6,216,944,276.29Total 6,216,944,276.29
(4) Items of cash paid relating to other investing activities
In RMB Yuan
| Item | Amount for this period | Amount for prior period |
Cash transferred out from the loss ofcontrol of the subsidiary
815,126,333.76Total 815,126,333.76
(5) Items of cash received relating to other financing activities
In RMB YuanItem Amount for this period Amount for prior periodWithdraw for deposit of bill 362,339,945.61 715,239,432.26
| Total | 362,339,945.61 | 715,239,432.26 |
(6) Items of cash paid relating to other financing activities
In RMB YuanItem Amount for this period Amount for prior periodPayment for deposit of bill
669,560,830.95
| 377,810,786.49 |
Repurchase of restricted stocks 1,327,927.25
| Others | 39,385,976.28 | 29,669,861.07 |
Total 418,524,690.02 699,230,692.02
64. Supplementary information of cash flow statement
(1) Supplementary information of cash flow statement
In RMB YuanSupplementary information Amount for this period Amount for prior period
1. Cash flows from operating activities calculated by adjusting the
net profit
Net profit 6,967,013,000.07
5,839,023,367.10
Add: Impairment provision for assets 412,787,649.09 252,602,272.08Depreciation of fixed assets 1,492,472,007.62
1,435,681,140.90
| Right-of-use assets depreciation | 32,246,838.71 | 16,605,322.98 |
Depreciation and amortization of investment real estate 113,355.78
Amortization of intangible assets 638,535,490.78
528,117,679.23
Amortization of long-term deferred expense 1,468,484.08
1,826,783.84
Increase in deferred income 65,085,141.07 (139,049,041.50)
Disposal income on fixed assets, intangible assets and
others
(366,667,730.28) (68,244,082.28)
Income of fair value movement 23,334,661.15 (26,136,888.77)
Financial expense 36,814,471.44 17,892,411.14
Investment income (5,023,108,819.32) (2,354,040,073.27)Increase in deferred tax assets (182,617,869.82) (154,489,446.55)Decrease in deferred tax liabilities 1,404,707,710.78
2,262,473.67
Decrease in inventory (4,429,633,070.54) (244,183,357.63)Decrease in operating payables 1,025,339,747.77 1,273,807,337.63
Increase in operating payables 4,665,879,442.66 (722,465,767.08)Share-based payments cost 187,899,000.00 192,310,900.00
Others 3,787,202.55
715,388.71
Net cash flows from operating activities 6,955,456,713.59 5,852,236,420.20
2．Movement of cash and cash equivalents:
Ending balance of cash 64,153,666,049.54
51,032,267,488.15
Less: beginning balance of cash 52,491,435,047.74
49,517,916,834.99
Increase in cash and cash equivalents 11,662,231,001.80
1,514,350,653.16
(2) Cash and cash equivalents
In RMB Yuan
| Item | Ending balance | Beginning balance |
I. CashIncluding: Cash 1,886.16
32,155.77
| Bank deposits that can be |
readily used
64,133,735,374.29
52,455,913,791.28Other monetary funds that canbe used for payment at any time
19,928,789.09
35,489,100.69
| II. Ending balance of cash and cash |
equivalents
64,153,666,049.54
52,491,435,047.74
65. The assets with ownership or right restricted
In RMB YuanItem Ending balance Explanation
| Cash and cash equivalents | 1,832,280,514.67 | Acceptance bill deposit |
Note receivables 6,379,455,146.47 Pledge for issuing bills payable
| Fixed assets | 28,900,540.24 | Processing release procedures |
Intangible assets 16,614,436.08 Processing release proceduresTotal 8,257,250,637.46
66. Foreign Monetary Item
In RMB YuanItem Original Currency Exchange Rate Translated to RMBCashIncluding: USD 29,760,695.54
7.2258 215,044,833.83
GBP 8,367,752.13
7.8771 65,913,620.30
EUR 3,968,271.98 9.1432 36,282,704.37JPY 148,663,225.00
0.0501 7,448,027.57
RUB 7,733,842,927.23
0.0834 645,002,500.13
Accounts receivableIncluding: USD 56,418.30
7.2258
407,667.35
EUR 3,523,830.00
7.8771
27,757,561.29
GBP 414,688.44
9.1432
3,791,579.34
Other receivablesIncluding: USD 1,318.04
7.2258
9,523.89
EUR 2,723,874.52
7.8771
21,456,231.98
GBP 49,632.42
9.1432
453,799.14
JPY 100,000.00
0.0501
5,010.00
Accounts Payable
| Including: USD | 6,995.00 | 7.2258 | 50,544.47 |
EUR 199,529.46
9.1432
1,824,337.76
GBP 29,760,695.54
7.2258 215,044,833.83
Other Payables 8,367,752.13
7.8771 65,913,620.30
Including: USD 3,968,271.98 9.1432 36,282,704.37
GBP
| GBP | 148,663,225.00 | 0.0501 | 7,448,027.57 |
67. Government grants
The government grants accounted by the Group with the net method offset the book value of relevant assets and related costs as follows:
In RMB YuanAmount for this period Amount for prior periodGovernment grants related to assets 62,110,742.27
132,421,192.00
Write down: Fixed assets 61,413,808.31 132,421,192.00
Intangible assets 696,933.96Government grants related to income 50,967,519.78
177,846,131.22
Write down: Operating cost 23,614,843.48
73,489,574.95
Operating expenses 6,763,467.92
964,950.11
General and administrative expenses 8,254,895.38
10,761,122.82
Research and development expenses 12,334,313.00
92,433,583.34
| Financial income | 196,900.00 |
For other government grants, refer to notes V, 38 and 53.
VIII. The change of consolidation scope
1. Business combination not under the Same Control
（1） Business combinations not under common control that occurred in the current period
The Company originally held 40.66% equity in Deepal Automobile Technology Co., Ltd. (referred as “Deepal Auto”), which can havea significant impact on it and is accounted for using the equity method. The Company has signed an Equity Transfer Agreement withChongqing Changxin Equity Investment Fund Partnership (Limited Partnership) (referred as “Changxin Fund”) and ChongqingLiangjiang New Area Chengwei Equity Investment Fund Partnership (Limited Partnership) (referred as “Chengwei Fund”),shareholders of Deep Blue Automobile, to acquire 10.34% of the equity of Deepal Auto for cash of RMB 1,331.6214 million, The
transaction completed equity delivery procedures on February 1, 2023. After the completion of the acquisition, the company held atotal of 51.00% equity in Deepal Auto. On the acquisition date, the company recognized a profit of RMB 5,021,482,128.74 from themerger of enterprises not under the same control.
From the date of purchase to the end of the current period, the operating income of Deepal Auto was RMB 8,828,401,817.81, and thenet loss was RMB 1,058,521,570.86.
(2) Merger costs and goodwill
In RMB YuanConsolidation costs Deepal Auto-- Cash1,331,621,441.70
-- Fair value of non cash assets——--Fair value of debt issued or assumed——-- Fair value of equity securities issued——-- Fair value of contingent consideration——
--Fair value of equity held before the purchase date at thepurchase date
5,248,006,233.55
| --Fair value of equity held before the purchase date at the purchase date |
--Other——Total consolidated costs6,579,627,675.25
Minus: Fair value share of identifiable net assets obtained4,780,094,150.38
| The amount of goodwill/merger cost less than the fair value share of identifiable net assets obtained |
1,799,533,524.87
Method for determining the fair value of merger costs: income method
(3) The identifiable assets and liabilities of the purchased party on the purchase date
In RMB Yuan
Deepal AutoFair value on purchase date Book value on purchase dateAssets:
| inventory | 2,750,696,247.99 | 2,668,394,136.79 |
fixed assets
| 446,508,547.00 | 434,621,131.80 | |
| intangible assets | 10,744,244,703.94 | 1,028,260,675.89 |
| Total other current assets | 14,258,866,595.00 | 14,258,866,595.00 |
| Total other non current assets | 1,604,398,095.47 | 1,605,804,945.65 |
Total Assets
| 29,804,714,189.40 | 19,995,947,485.13 |
Liabilities:
| Total Current Liabilities | 18,184,591,739.10 | 18,184,591,739.10 |
| Total Non-current Liabilities | 816,971,121.83 | 821,924,907.70 |
Total liabilities
| 19,001,562,860.93 | 19,006,516,646.80 | |
| Shareholders' (or owners') equity | 10,803,151,328.47 | 989,430,838.33 |
Method for determining the fair value of identifiable assets and liabilities: asset based method
(4) Gains or losses arising from remeasuring equity held before the purchase date at fair value
Is there any transaction that achieves business merger through multiple transactions and obtains control during the reporting period
□ Yes √ No
2. Combination under the same control
□ Applicable √ Not Applicable
3. Counter purchase
□ Applicable √ Not Applicable
4. Disposing subsidiary
Whether there is a single disposal of the subsidiary company investment that is the loss of control of the situation
□ Applicable √ Not Applicable
5. Change of consolidation scope due to other reasons
□ Applicable √ Not Applicable
IX. Stake in other entities
1. Rights in subsidiaries
The subsidiaries of the Company are as follows：
Company name
Main operating
place
Registered place Nature of business
Registeredcapital (tenthousand)
Total proportion of
shareholders (%)Direct IndirectI. The subsidiary formed by establishment or investment
Chongqing Changan InternationalAutomobile Sales Co., Ltd.
Chongqing Chongqing Sales 20,375.64 100.00 -
Ltd.
Chongqing Chongqing Lease 8,850.00 100.00 -
| Chongqing Changan Vehicle Networking Technology Co., |
| Chongqing Changan Special Automobile Sales Co., Ltd |
(Note 1)
Chongqing Chongqing Sales 2,000.00 50.00 -Chongqing Changan Automobile
Supporting Service Co., Ltd.
Chongqing Chongqing Sales 3,000.00 99.00 1.00Chongqing Changan New Energy
Automobile Co. Ltd.
Chongqing Chongqing R&D 2,900.00 100.00 -
Design Center Co., Ltd.
Turin, Italy Turin, Italy R&D EUR 1,738 100.00 -Changan United Kingdom R&D
Center Co., Ltd.
Nottingham, United
Kingdom
Nottingham, United
Kingdom
R&D GBP 2,639 100.00 -
Chongqing Changan EuropeBeijing Changan R&D Center
Co., Ltd.
Beijing Beijing R&D 100.00 100.00 -Changan Japan Designing Center
Co.,Ltd
Habin Habin R&D JYP1,000 100.00 -
Beijing Changan R&D CenterChangan United States R&D
Center Co., Ltd.
Troy, United states Troy, United states R&D USD154 100.00 -Changan Automobile Russia Co.,
Ltd.
Moscow, Russia Moscow, Russia Sales
RUB220,382
100.00 -
Changan Automobile Investment
(Shenzhen) Co., Ltd.
Changan Automobile
Investment(Shenzhen) Co.,Ltd.
Changan AutomobileInvestment(Shenzhen) Co.,
Ltd.
Changan Automobile
Investment(Shenzhen) Co.,
Ltd.
23,789.00 100.00
Changan United States R&DNanjing Changan New Energy
Automobile Sales & ServiceCo., Ltd.
Nanjing Nanjing Sales 5,000.00 100.00 -
| Nanjing Changan New Energy |
| Chongqing Anyi Automotive |
Chongqing Chongqing Sales 200.00 100.00 -
| Technology Service Co., Ltd. |
| Xiamen Changan New Energy |
Automobile Sales & ServiceCo., Ltd.
Xiamen Xiamen Sales 200.00 100.00 -Guangzhou Changan New EnergyAutomobile Sales & ServiceCo., Ltd.
Guangzhou Guangzhou Sales 400.00 100.00 -Chongqing Chehemei TechnologyCo., Ltd.
Chongqing Chongqing Sales 1,000.00 100.00
Automobile
| Technology Co., |
Ltd.
Chongqing Chongqing Sales 100,000.00 83.64Chongqing Changan Automobile
Software Technology Co., Ltd.
Chongqing Chongqing R&D 9,900.00 100.00Chongqing Chehemei TechnologyCo., Ltd.
Chongqing Chongqing Sales 4,900.00 100.00
Chongqing Changan Technology
Co., Ltd
Chongqing Chongqing R&D 9,000.00 100.00
II. The subsidiary formed by business combination not under common control
Co., Ltd.(Note 2)
Nanjing Nanjing Manufacturing 60,181.00 84.73 -Chongqing Lingyao AutomobileCo., Ltd.
Chongqing Chongqing Manufacturing 133,764.00 100.00 -Deepal Automobile Technology
Co., Ltd
Chongqing Chongqing Manufacturing 32,810.83 51.00
III. The subsidiary formed by business combination under common control
Nanjing Changan AutomobileHefei Changan Automobile
Co.,Ltd.
Hefei Hefei Manufacturing 227,500.00 100.00 -
Note 1: The remaining shareholders of Chongqing Changan Special Automobile Co., Ltd. made an agreement with the Company thatthe remaining shareholders are to vote in accordance with the Company. The main financial and operating policies have been controlledby the Company, so it is included in the scope of consolidated financial statements.
Note 2: The Company owns 91.53% of voting shares of Nanjing Changan Automobile Co., Ltd., the difference between proportion ofvoting shares and proportion of shares held is due to the voting right consigned from minority shareholders.
As at June 30, 2023, the Group has no subsidiaries with important minority interests.
2. Transactions result in change of holding share proportion but no effect in control of subsidiaries
□ Applicable √ Not applicable
3. Stakes in joint ventures and associates
(1) Significant joint ventures or associates
Company name
Mainoperating
place
Registered
place
Nature of business
Registeredcapital (tenthousand)
Total proportion of
shareholders (%)
Accounting
treatmentDirect Indirect
I. Joint ventures
Hefei Changan AutomobileChangan Ford
Automobile Co., Ltd.
Chongqing Chongqing
| Changan Ford | Manufacture and sale of |
automobiles, and components
USD24,100 50.00 - Equity
Automobile Co., Ltd.
Nanjing Nanjing
| Changan Mazda | Manufacture and sale of |
automobiles, and components
USD11,681 47.50 - Equity
(Note 1)
Nanjing Nanjing
| Changan Mazda Engine Co., Ltd. | Manufacture and sale of |
automobiles, and components
USD20,996 50.00 - Equity
Co., Ltd.
Nanchang Nanchang
Investment Management, IndustrialInvestment, and Asset Management
100,000.00
50.00 - Equity
II. Associates
Jiangling InvestmentChongqing ChanganKuayue Automobile
Co., Ltd.
Chongqing Chongqing
| Chongqing Changan Kuayue Automobile | Develop, product and sale of |
automobile and components; importand export goods.
6,533.00 34.30 -Equity
Sales Co., Ltd.
Chongqing Chongqing
Sale of Changan Kuayue’ sautomobile and agricultural cars and
| Chongqing Changan Kuayue Automobile | components. Technical advisory |
services for automobile
300.00 34.30 -
EquityBeijing Fang’an TaxiCo., Ltd.
Beijing Beijing For the car loan business2,697.96 22.24 -Equity
Finance Co., ltd.
Chongqing Chongqing
Provide car loan; provide vehicleloans and operating equipment loans
| Chongqing Auto | to car dealers, including the construction loans of exhibition hall,spare parts loans and |
maintenance equipment loans, etc.
476,843.10 28.66 -EquityNanjing Chelai TravelTechnology Co., Ltd.
Nanjing Nanjing
technology development, technicalservices
10,000.00 10.00 -Equity
| Car sales, leasing, software | ||
| Hunan Guoxin |
SemiconductorTechnology Co., Ltd.
Zhuzhou Zhuzhou
consulting, technical services,technology transfer in the field ofpower semiconductors
50,000.00 25.00 -Equity
| Technology development | ||
| Beijing Wutong Chelian Technology |
Co., Ltd.
Beijing Beijing
technology transfer
56,055.88 - 41.30Equity
| Technology development, technical consulting, technical services, | ||
| Anhe (Chongqing) Equity Investment Fund Management |
Co., Ltd.
Chongqing Chongqing Equity investment management1,260.00 - 44.44Equity
IntelligentTechnology Co., Ltd.
Hangzhou Hangzhou Car travel service
630.00 - 20.00
Equity
| Hangzhou Chelizi |
| Pakistan Master |
Motors Co., Ltd.
Lahore,Pakistan
Lahore,Pakistan
Manufacture and sale ofautomobiles, and components
PKR75,000 30.00Equity
Co., Ltd.
Nanchang Nanchang
Manufacture and sale ofautomobiles, and components
200,000.00 25.00 -Equity
| Jiangling Holding |
| Nanjing Leading Equity Investment |
Partnership
Nanjing Nanjing
services
976,000.00 16.39 -Equity
| Equity investment and related | ||
| Nanjing Leading Equity Investment Management Co., |
Ltd.
Nanjing Nanjing
management and related services
1,000.00 15.00 -Equity
| Private equity investment fund | ||
| Zhongqi Chuangzhi |
Technology Co., Ltd.
Nanjing Nanjing R&D
1,600,000.0
3.125 -
EquityChongqing ChangxinZhiqi Private Equity
Partnership)
Chongqing Chongqing Equity Investment50,200.00 49.80 -EquityAVATR. Co., LtdNanjing Nanjing R&D164,466.00 40.9939Equity
Investment FundPartnership (LimitedChongqing ChanganInnovation PrivateEquity InvestmentFund PartnershipEnterprise (Limited
Partnership)
Chongqing Chongqing Private equity investment funds65,100.00 46.08Equity
| Chongqing Changan Innovation Private Equity Investment Fund Partnership Enterprise (Limited |
| Time FAW Power |
Battery Co., Ltd
Ningde Ningde
Development, production, sales, andprovision of related after-sales and
lithium-
| ion batteries, power |
batteries, ultra large capacity energy
systems
200,000.00 - 10.00EquityWestern Car NetworkChongqing Chongqing
| storage batteries, and battery |
| Internet information services; |
10,000.00 - 5.00Equity
(2) Key financial information of significant joint ventures
Changan Ford Automobile Co., Ltd. is the important joint venture to the Group and makes great influence in the share of profit andloss in joint venture and associates, the Group adopts equity method to deal with the investment to it.
The table below shows the financial status of Changan Ford Automobile Co., Ltd., and all the information has been adjusted to eliminatethe difference of the accounting policies.
In RMB YuanEnding balance/Amount for this period
Beginning balance/Amount for prior
periodCurrent assets 11,465,596,213.84
15,159,099,717.00
| Including: cash and cash |
equivalent
4,625,531,681.38
6,818,327,323.00
| Non-current assets | 20,108,880,589.29 | 20,859,166,829.00 |
31,574,476,803.13
36,018,266,546.00
Total assets 19,534,096,219.77
26,771,621,602.00
Non-current liabilities 9,705,223,801.71
7,716,321,374.00
Total liabilities 29,239,320,021.48
34,487,942,976.00
Minority interests
Equity attributable to owners 2,335,156,781.65
1,530,323,570.00
| Net asset owned according to share |
proportion
1,167,578,390.83
765,161,785.00
Adjustment（55,499,140.48） （52,702,433.15）
| Book value of investment | 1,112,079,250.35 | 712,459,351.85 |
Operating income 21,760,633,483.51
23,377,802,470.94Financial expenses 131,187,660.08
228,432,281.92
Income tax expense 592,223,920.46
158,336,533.41
Net profit 799,233,915.94
1,045,203,295.40
(3) The financial status of the less important joint ventures and associates
In RMB YuanEnding balance Beginning balanceJoint venture:
Total book value of the investment 4,118,225,763.64
4,067,976,150.23Total amount calculated by shareholdingproportion
--Net profit 50,249,613.41
340,098,900.17
--Other comprehensive income
--Total comprehensive income 50,249,613.41
340,098,900.17
(Chongqing) Co., Ltd
| (Chongqing) Co., Ltd | Inspection and testing services | |
| Anhe Chongqing |
Dingfeng Automobile
Fund
Chongqing Chongqing Private equity investment funds15,436.00
| Contract Private Equity Investment |
40.00 -
EquityChongqingChangxian IntelligentTechnology Co., Ltd
Chongqing Chongqing Software development and sales25,500.00 45.00 -Equity
Associates:
Total book value of the investment 8,558,605,302.28
9,626,226,954.20Total amount calculated by shareholdingproportion
--Net profit (630,303,537.91) (784,138,202.60)--Other comprehensive income 146,228.18
--Total comprehensive income (630,303,537.91) (783,991,974.42)
(4) Excessive losses incurred by joint ventures or associates
As at 30 June 2023, since the Group has no obligation to undertake the extra loss of Chongqing Changan Kuayue Automobile SalesCo., Ltd, Jiangling Holdings Co., Ltd. When extra loss occurs, the Group writes down the long-term investment to zero withoutrecognizing the extra loss.
X. Risks associated with financial instruments
1. Classification of financial instruments
As at balance sheet day, the book values of financial instruments are as follows:
Financial assets
In RMB Yuan2023.6.30
Financial assetsmeasured at fair valueand whose changesare recorded in thecurrent profit and loss
(standard required)
Financial assetsmeasured at amortized
cost
Financial assetsmeasured at fair valueand whose changes are
recorded in Othercomprehensive income
(specified)
TotalCash 65,985,946,564.21
65,985,946,564.21
| Financial assets for |
trading
262,239,446.37
262,239,446.37
Notes receivable 33,963,917,823.31 33,963,917,823.31
| Accounts receivable | 2,477,017,799.35 | 2,477,017,799.35 |
Other receivables 924,635,940.20 924,635,940.20Other current assets 14,765,170.48 14,765,170.48Investment in otherequity instrument
489,950,000.00
489,950,000.00
Total 262,239,446.37
103,366,283,297.55 489,950,000.00
104,118,472,743.92
In RMB Yuan2022.12.31
Financial assetsmeasured at fair valueand whose changes arerecorded in the currentprofit and loss(standard required)
Financial assetsmeasured at amortized
cost
Financial assets measured
at fair value and whosechanges are recorded in
Other comprehensive
income (specified)
Total
| Cash | 53,530,183,827.34 | 53,530,183,827.34 | ||
| Financial assets for |
trading
280,315,571.09
280,315,571.09
| Notes receivable | 35,849,660,652.96 | 35,849,660,652.96 | ||
| Accounts receivable | 3,068,414,415.29 | 3,068,414,415.29 |
Other receivables861,671,518.62
861,671,518.62
Other current assets 745,970.48
745,970.48
Investment in otherequity instrument
489,950,000.00
489,950,000.00
Total 280,315,571.09
93,310,676,384.69
489,950,000.00
94,080,941,955.78
Financial liabilities
In RMB Yuan
| 2023.6.30 | 2022.12.31 |
Short-term loans 50,000,000.00
29,000,000.00
Trading financial liabilities 37,813,520.40
-
Notes payable 33,712,072,409.02 22,072,793,864.83
Accounts payable 30,465,634,254.25 29,449,664,138.75
Other payables 8,286,560,402.79 4,749,541,830.49
Non-current liabilities due within 1 year 69,596,855.90
885,723,901.34
Long-term loan 76,000,000.00
36,000,000.00
Lease liabilities 120,870,028.21
60,205,397.98
Long-term payables 408,939,511.34
Bonds payable 999,558,490.56
999,528,301.88
Total 73,818,105,961.13 58,691,396,946.61
2. Transfer of financial assets
The transferred financial assets that entirely derecognized but continuing involved
As at June 30, 2023, the book value of the bank acceptance bill that the Group has endorsed to the supplier to settle accounts payableis RMB 5,501,662,863.68 (December 31, 2022: RMB 5,294,424,281.62). On June 30, 2023, its maturity date is 1 to 6 months.According to the relevant provisions of the "Negotiable Instruments Law", if the accepting bank refuses to pay, its holder has the rightto recourse against the Group ("continued involvement "). The Group believes that the Group has transferred almost all of its risks andrewards, and therefore, terminates the confirmation of the book value of the settlement accounts payable and the related accountspayable. The maximum loss and undiscounted cash flow of continuing involvement and repurchase are equal to its book value. TheGroup believes that continued involvement in fair value is not significant.
In the first half of 2023, the Group did not recognize gains or losses on its transfer date. The Group shall continue to be involved in theproceeds or expenses of the year in which the recognition of financial assets has been terminated and the cumulative recognition thereof.Endorsements occur roughly and evenly during the year.
3. Risks of financial instruments
The Group faces risks of various financial instruments in its daily activities, mainly including credit risk, liquidity risk and market risk(including exchange rate risk, interest rate risk and price risk). The main financial instruments of the Group include monetary funds,equity investments, loans, bills receivable, accounts receivable, bills payable, accounts payable, lease liabilities, bonds payable etc.The risks associated with these financial instruments and the risk management strategies adopted by the Group to reduce these risksare described below.
The Group has formulated risk management policies to identify and analyze the risks faced by the Group, set appropriate risk acceptancelevels and design corresponding internal control procedures to monitor the Group's risk levels. The Group will periodically re-examinethese risk management policies and related internal control systems to adapt to changes in market conditions or the Group ’s operatingactivities. The internal audit department also regularly and irregularly checks whether the implementation of the internal control systemcomplies with the risk management policy.
Credit risk
The Group only deals with recognized and reputable customers. In accordance with the Group's policy, a credit review is required forall customers who require credit transactions. In addition, the Group continuously monitors the balance of accounts receivable to ensurethat the Group does not face significant bad debt risk. For transactions that are not settled with the relevant business unit's bookkeepingstandard currency, the Group does not provide credit transaction conditions unless specifically approved by the Group's credit controldepartment.
Since the counterparties of monetary funds and bank acceptance receivables are reputable banks with higher credit ratings, thesefinancial instruments have lower credit risk.
Other financial assets of the Group include commercial acceptance bills receivable, accounts receivable, other receivables, etc. Thecredit risk of these financial assets and contract assets comes from counterparty default, and the maximum risk exposure is equal to thecarrying amount of these instruments. In 2022, there was no credit risk arising from financial guarantee.
Since the Group only trades with approved and reputable customers, there is no need for collateral. Credit risk is centralized andmanaged according to customers. As at the balance sheet date, the Group has a specific concentration of credit risks. 33.67% of theGroup's accounts receivable (December 31, 2022: 56.83%) originated from the top five customers with the balance of accountsreceivable. The Group does not hold any collateral or other credit enhancements for the balance of accounts receivable.
Judgment criteria for significant increase in credit risk
The Group evaluates on each balance sheet date whether the credit risk of the relevant financial instruments has increased significantlysince the initial recognition. In determining whether credit risk has increased significantly since the initial recognition, the Groupconsiders that reasonable and evidence-based information can be obtained without unnecessary additional cost or effort, includingqualitative and quantitative analysis based on the Group's historical data, external credit risk ratings and forward-looking information.Based on a single financial instrument or a portfolio of financial instruments with similar credit risk characteristics, the Group comparesthe default risk of financial instruments on the balance sheet date with the default risk on the initial confirmation date to determine thechange of default risk of financial instruments during their expected duration.
When one or more of the following quantitative or qualitative criteria are triggered, the Group believes that the credit risk of financialinstruments has significantly increased:
? the quantitative criterion is that the default probability of the remaining duration on the report date increases by more than a certainpercentage compared with the initial confirmation;? qualitative criteria mainly include material adverse changes in the operating or financial situation of the debtor, early warningcustomer list, etc.;
Definition of assets that have incurred credit impairment
In order to determine whether credit impairment occurs, the Group adopts a definition standard consistent with the internal credit riskmanagement objectives for relevant financial instruments, and considers both quantitative and qualitative indicators. The Group mainlytakes the following factors into consideration when evaluating whether the debtor has credit impairment:
? significant financial difficulties of the issuer or debtor;? debtor breaches the contract, such as default or overdue payment of interest or principal;? the creditor gives the debtor concessions that the debtor would not have made under any other circumstances for economic orcontractual reasons related to the debtor's financial difficulties;? the debtor is likely to go bankrupt or undergo other financial restructuring;? the financial difficulties of the issuer or debtor result in the disappearance of an active market for the financial asset;? purchase or source a financial asset at a substantial discount that reflects the fact that a credit loss has occurred.
The credit impairment of financial assets may be caused by the joint action of multiple events, but not by events that can be identifiedseparately.
A parameter for measuring expected credit losses
According to whether the credit risk has significantly increased and whether the credit impairment has occurred, the Group measuresthe impairment provision for different assets with the expected credit loss of 12 months or the whole duration respectively. The keyparameters of expected credit loss measurement include default probability, default loss rate and default risk exposure. The Group takesinto account the quantitative analysis and forward-looking information of historical statistical data (such as counterparty rating,
guarantee method and types of collateral, repayment method, etc.) to establish default probability, default loss rate and default riskexposure models.
The relevant definition is as follows:
? probability of default is the probability that the debtor will not be able to meet its repayment obligations in the next 12 months orthroughout the remaining period. The default probability of the Group is adjusted based on the results of the historical credit loss modeland forward-looking information is added to reflect the default probability of the debtor in the current macroeconomic environment.? the default loss rate refers to the Group's expectation of the extent of losses from default risk exposure. Default loss rates also varydepending on the type of counterparty, the type and priority of recourse, and the collateral. The default loss rate is the percentage ofthe risk exposure loss at the time of default, calculated on the basis of the next 12 months or the whole duration;? default exposure is the amount that should be paid to the Group at the time of default over the next 12 months or throughout theremaining duration.
The assessment of a significant increase in credit risk and the calculation of expected credit losses involve forward-looking information.Through the analysis of historical data, the Group identifies the key economic indicators that affect the credit risks and expected creditlosses of each business type.
Liquidity risk
The Group adopts cycle liquidity planning instrument to manage capital shortage risks. The instrument takes into consideration thematurity date of financial instruments plus estimated cash flow from the Group’s operations.
The Group’s objective is to maintain a balance between continuity of funding and flexibility and sufficient cash to support operatingcapital through financing functions by the use of bank loans, debentures, etc.
Market risk
Interest rate risk
The Group’s revenue and operating cash flows are seldomly influenced by the interest fluctuation. As at 30 June 2023, the Group’sloans and bonds are bearing fixed interest rate and the Group is not hedging the risk currently.
Foreign currency risk
The Group’s exposures to fluctuation in foreign currency exchange rate mainly arise from operating activities where transactions aresettled in currencies other than the units' functional currency and net investment to offshore subsidiary.
In 30 June, 2022, the Group only has limited transactional currency exposures of its total revenue that is valued in currencies other thanthe units' functional currency. The estimated influence of fluctuation of foreign currency is insignificant; therefore, the Group hasn’tcarried out large amount of hedging to reduce the risk.
Equity instruments investment price risk
The price risk of equity instrument investment refers to the risk that the fair value of equity securities is reduced due to changes in thelevel of stock indexes and changes in the value of individual securities. On June 30, 2023, the Group's listed equity instrumentinvestment (Note VII 2) was listed on the Shanghai Stock Exchange and measured on the basis of market quotes on the balance sheetdate. The following table illustrates the sensitivity of the Group’s net profit and loss to every 5% change in the fair value of equityinstrument investments (based on the book value at the balance sheet date) under the assumption that all other variables remain constant.
In RMB Yuan
Carrying amount of equityinvestments
Change in fairvalue
Increase/(decrea
se) in equity2023.6.30
Shanghai- Equity investment included in financialassets atfair value through profit or loss
98,889,450.00
5% 4,202,801.63
Shanghai- Equity investment included in financialassets at
98,889,450.00
(5%) (4,202,801.63)
Shenzhen- Equity investment included in financialassets atfair value through profit or loss
163,349,996.37
| fair value through profit or loss | |
5% 6,942,374.85
Shenzhen- Equity investment included in financialassets atfair value through profit or loss
163,349,996.37
(5%) (6,942,374.85)2022.12.31
Shanghai- Equity investment included in financialassets atfair value through profit or loss
126,112,500.00
5% 5,359,781.25
Shanghai- Equity investment included in financialassets atfair value through profit or loss
126,112,500.00
(5%) (5,359,781.25)Shenzhen- Equity investment included in financialassets atfair value through profit or loss
125,052,628.80
5% 5,314,736.72
Shenzhen- Equity investment included in financialassets atfair value through profit or loss
125,052,628.80
(5%) (5,314,736.72)
4. Capital management
The main goal of the Group’s capital management is to ensure that the ability of continuous operation and maintain healthy capitalratios in order to support business development, and to maximize shareholder value.
The Group manages the capital structure and adjusts it with the change of economy trend and the risk feature of the assets. To maintainor adjust the capital structure, the Group can rectify dividend distribution, return capital to shareholders or issue new shares. The Groupis not subject to external mandatory capital requirements constraints. The goal, principle and procedure of capital management stay thesame in 2022 and 30, June 2023.
The Group’s leverage ratio on the balance sheet date is as follows:
June 30, 2023 December 31, 2022Leverage ratio
58.90%
56.90%
XI. Disclosure of fair value
1. Assets and liabilities measured at fair value
June 30, 2023
In RMB Yuan
Input measured at fair valueQuoted price inactive market(The first level)
Important andobservable input(The second level)
Important butunobservable input
(The third level)
Total
Trading financial assets
| Trading financial assets | 262,239,446.37 | 262,239,446.37 |
Equity instrument investment 262,239,446.37 262,239,446.37Other equity instrument investments 489,950,000.00 489,950,000.00Trading financial liabilities 37,813,520.40 37,813,520.40Total 262,239,446.37 37,813,520.40 489,950,000.00 790,002,966.77
December 31, 2022
In RMB Yuan
Input measured at fair valueQuoted price inactive market(The first level)
Important andobservable input(The second level)
Important butunobservable input(The third level)
Total
| Trading financial assets | 126,112,500.00 | 154,203,071.09 | 280,315,571.09 |
Equity instrument investment 126,112,500.00 125,052,628.80 251,165,128.80Derivative financial assets 29,150,442.29 29,150,442.29Other equity instruments 489,950,000.00 489,950,000.00Total 126,112,500.00 154,203,071.09 489,950,000.00 770,265,571.09
2. Fair value estimation
Management has assessed and concluded accounts, including cash, notes receivable, accounts receivable, other receivables, otherpayables, notes payable and accounts payable and so on, whose fair value equals to book value because of its short term to overdue.
Financial assets and financial liabilities are measured at the amount that an asset could be exchanged for or by which a liability couldbe incurred or settled by knowledge, willing parties in a current arm’s-length transaction, other than liquidation or unwilling sales.Methods and hypothesis followed are used for determining fair value.
Long-term loans and long-term payables use discounted cash flow method to determine its fair value, with discount rate in accordancewith market return of other financial instruments based on similar terms, credit risks and remaining terms. As at 30 June 2023, thedefault risk of long-term loans and short-term loans were considered immaterial.
The equity instruments listed by the Group are ordinary shares with unrestricted sale conditions, and their fair value is determined atthe quoted market price. The Group's unlisted equity instrument investments are estimated at fair value using the market method basedon unobservable market prices or interest rate assumptions. The Group mainly refers to the evaluation reports of independent qualifiedprofessional appraisers. The Group believes that the fair value and its changes estimated by valuation techniques are reasonable andare also the most appropriate value on the balance sheet date.
The Group entered into a derivative financial instrument contract with the bank. The Group's derivative financial instruments areforeign exchange forward contracts, which are measured using valuation techniques similar to the present value method. The observableinput value of the market covered by the model is the forward exchange rate. The book value of a foreign exchange forward contractis the same as the fair value.
3. Unobservable input
The following is an overview of the important unobservable input value of the third level fair value measurement:
Fair value Valuation techniques Non-observable input valueInvestment in other equity instrument2023.6.30 489,950,000.00 Market approach Comparable transaction value multiplier2022.12.31 489,950,000.00 Market approach Comparable transaction value multiplier
XII. Related party relationships and transactions
1. Parent company of the Company
Parent company
Place ofregistration
Nature of the business Registered capital
Proportion ofshares in theCompany (%)
Proportion ofvoting rights in thecompany (%)China ChanganAutomobile GroupCo ,Ltd.
Beijing
Manufacture and sale ofautomobiles, engine, andcomponents
6,092,273,400.00 20.80% 20.80%
The Final controlling party is China South Industries Group corporation
2. Subsidiaries
See subsidiaries in IX（1）. Stake in other entities.
3. Joint ventures and associates
See Joint ventures and associates in IX（3） Stake in other entities.
4. Other related parties
Related parties RelationshipChongqing Changan Intelligent Industrial Technology Service Co., Ltd. Controlled by the same ultimate holding companyChongqing Changan Construction Co., Ltd. Controlled by the same ultimate holding companyChongqing Changan industry (Group) Co., Ltd Controlled by the same ultimate holding companyChongqing Changan Real Estate Development Co., Ltd Controlled by the same ultimate holding companyChongqing Yihong Engineering Plastic Products Co., Ltd. Controlled by the same ultimate holding companyChongqing Xiyi Automobile Connecting Rod Co., Ltd. Controlled by the same ultimate holding companyChongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. Controlled by the same ultimate holding companyChongqing Wanyou Economic Development Co., Ltd. Controlled by the same ultimate holding companyChongqing Wanyou Xingjian Auto Sales & Service Co., Ltd. Controlled by the same ultimate holding companyChongqing Wanyou Ducheng Auto Sales Service Co., Ltd. Controlled by the same ultimate holding company
| Chongqing Changan Property Management Co., Ltd. | Controlled by the same ultimate holding company |
Chongqing Qingshan Transmission Sales Co., Ltd. Controlled by the same ultimate holding companyChongqing Shangfang Automobile Fittings Co., Ltd. Controlled by the same ultimate holding companyChongqing Qingshan Industrial Co., Ltd Controlled by the same ultimate holding companyChongqing Construction Tongda Industrial Co., Ltd. Controlled by the same ultimate holding companyChongqing Jianshe Mechanical & Electrical Equipment Co., Ltd. Controlled by the same ultimate holding company
| Chongqing Changrong Machinery Co., Ltd. | Controlled by the same ultimate holding company |
Chongqing Jianshe Automobile Air-conditioner Co., Ltd. Controlled by the same ultimate holding companyChongqing Jialing Yimin Special Equipment Co., Ltd. Controlled by the same ultimate holding companyChongqing Fuji Supply Chain Management Co., Ltd Controlled by the same ultimate holding companyChongqing Dajiang Jiexin Forging Co., Ltd. Controlled by the same ultimate holding companyChongqing Anfu Automobile Co., Ltd. Controlled by the same ultimate holding companyChina Changan Automobile Group Tianjin Sales Co., Ltd Controlled by the same ultimate holding company
| China Changan Automobile Group Hefei Investment Co., Ltd | Controlled by the same ultimate holding company |
China South Industries Group Commercial Factoring Co., Ltd. Controlled by the same ultimate holding companyChina Ordnance Equipment Group Finance Leasing Co., Ltd Controlled by the same ultimate holding companyYunnan Xiyi Industries Co., Ltd. Controlled by the same ultimate holding companyYunnan Wanyou Automobile Sales and Service Co., Ltd Controlled by the same ultimate holding companyYaan Wanyou Automobile Sales and Service Co., Ltd Controlled by the same ultimate holding company
Related parties Relationship
Research Institute Co., Ltd.
Controlled by the same ultimate holding companyWanyou Automobile Investment Co., Ltd Controlled by the same ultimate holding companySichuan Ningjiang Shanchuan Machinery Co., Ltd Controlled by the same ultimate holding companySichuan Jianan Industrial Co., Ltd Controlled by the same ultimate holding companyPanzhihua Wanyou Automobile Sales and Service Co., Ltd Controlled by the same ultimate holding companyLuzhou Wanyou Automobile Service Co., Ltd Controlled by the same ultimate holding companyLongchang Shanchuan Precision Welded Tube Co., Ltd. Controlled by the same ultimate holding companyJiangsu Wanyou Automobile Sales and Service Co., Ltd Controlled by the same ultimate holding companyHubei Xiaogan Huazhong Car Lamp Co., Ltd Controlled by the same ultimate holding company
Southwest Ordnance Industry Chongqing Environmental ProtectionHubei Huazhong Marelli Automotive Lighting Co., Ltd
| Hubei Huazhong Marelli Automotive Lighting Co., Ltd | Controlled by the same ultimate holding company |
Harbin Dongan Automotive Engine Manufacturing Co., Ltd Controlled by the same ultimate holding companyHarbin Dongan Automotive Power Co., Ltd Controlled by the same ultimate holding companyGuizhou Wanyou Automobile Sales and Service Co., Ltd Controlled by the same ultimate holding companyDali Wanfu Automobile Sales and Service Co., Ltd Controlled by the same ultimate holding companyChengdu Wanyou Xiangyu Automobile Sales and Service Co., Ltd Controlled by the same ultimate holding company
| Chengdu Wanyou Automobile Trading Service Co., Ltd | Controlled by the same ultimate holding company |
| Chengdu Wanyou Automobile Sales and Service Co., Ltd | Controlled by the same ultimate holding company |
Chengdu Wanyou Trading Co., Ltd Controlled by the same ultimate holding companyChengdu Wanyou Filter Co., Ltd Controlled by the same ultimate holding companyChengdu Lingchuan Automotive Fuel Tank Co., Ltd Controlled by the same ultimate holding companyChengdu Jialing Huaxi Optical Precision Machinery Co., Ltd Controlled by the same ultimate holding companyChengdu Huachuan Electric Equipment Co., Ltd Controlled by the same ultimate holding company
| Ordnance Equipment Group Finance Co., Ltd | Controlled by the same ultimate holding company |
Beijing Beiji Electromechanical Industry Co., Ltd Controlled by the same ultimate holding companyBazhong Wanyou Automobile Sales and Service Co., Ltd Controlled by the same ultimate holding companyAnhui Wanyou Automobile Sales and Service Co., Ltd Controlled by the same ultimate holding companyChongqing Changan Minsheng Logistics Co. Ltd. Participated by the Ultimate holding companyChongqing Nexteer Steering System Co.,Ltd.
Participated by the Ultimate holding companyChongqing Lingchuan Auto Parts Manufacturing Technology Co., Ltd. Participated by the Ultimate holding company
| Chongqing Hanon Jianshe Automotive Thermal Systems Co., Ltd. | Participated by the Ultimate holding company |
Chongqing Dajiang Yuqiang Plastic Co., Ltd. Participated by the Ultimate holding companyDajiang Yapp Automotive Systems Co., Ltd. Participated by the Ultimate holding companyChongqing Dajiang Guoli Precision Machinery Manufacturing Co., Ltd. Participated by the Ultimate holding companyChongqing Dajiang Tongyang Plastics Co., Ltd. Participated by the Ultimate holding company
Center
Participated by the Ultimate holding companyChina Ordnance News Participated by the Ultimate holding companyChangan Laisi (Chongqing) robot intelligent equipment Co., Ltd
Participated by the Ultimate holding companyTiannak Lingchuan (Chongqing) exhaust system Co., Ltd Participated by the Ultimate holding company
China Ordnance Equipment Group Human Resources DevelopmentSouth Inter Air-conditioner Co.,Ltd.
| South Inter Air-conditioner Co.,Ltd. | Participated by the Ultimate holding company |
South Tianhe Chassis System Co., Ltd. Participated by the Ultimate holding companyCSM Faurecia Automotive Parts Co., Ltd. Participated by the Ultimate holding companyGKN HUAYU Driveline Systems (Chongqing) Co., Ltd
Participated by the Ultimate holding companyUnited Automotive Electronics (Chongqing) Co., Ltd Participated by the Ultimate holding companyLear Changan (Chongqing) Automotive System Co., Ltd Participated by the Ultimate holding company
Related parties Relationship
| Hunan Tianyan Machinery Co., Ltd | Participated by the Ultimate holding company |
Hafei Automobile Co., Ltd Participated by the Ultimate holding companyChengdu Zhongzi Guangming Catalytic Technology Co., Ltd Participated by the Ultimate holding companyChengdu Ningjiang Zhaohe Automotive Parts Co., Ltd Participated by the Ultimate holding companyBeijing Zhongbing Insurance Brokerage Co., Ltd. Participated by the Ultimate holding companyAld Fortune Auto Leasing & Renting (Shanghai) Co., Ltd. Companies in which the company participates
| Nanjing LingHang Technology Co., Ltd. | Companies in which the company participates |
| Nanjing Chelai Travel Technology Co., Ltd | Companies in which the company participates |
Jiangling Automobile Co., Ltd Companies in which the company participatesBeijing Wutong Chelian Technology Co., Ltd. Companies in which the company participates
5. Related-party transaction
(1) Transactions of goods and services
Goods purchased and services received
In RMB YuanRelated parties Nature of
thetransaction
Current amount Approved
transaction
amount
Whether itexceeds thetransaction
amount
Prior-period
amountChangan Mazda Automobile Co.,Ltd
Acceptlabor
1,270,637.36
-
Yes -
Jiangling Holdings Co., Ltd.
Procurementof parts
514,070,488.27
8,778,224,627.96
No 585,345.00Nanjing Chelai Travel TechnologyCo., Ltd
Acceptlabor
15,222.66
114,017.07
No -
Deepal Automobile TechnologyCo., Ltd
Purchasingparts andacceptinglaborservices
666,172,597.14
1,510,689,568.63
No 716,672,719.94
Technology Co., Ltd.
| Beijing Wutong Chelian | Purchasing |
parts andacceptinglaborservices
32,740,169.65
194,226,725.34
No 67,885,814.09Anhui Wanyou Automobile SalesService Co., Ltd.
Acceptlabor
2,622,805.44
2,514,824.71
Yes 2,284,126.26
Equipment Co., Ltd.
Procurementof parts
265,398,399.77
| Chengdu Huachuan Electric |
832,589,256.66
No 201,518,601.15
| Chengdu Ningjiang Zhaohe Automobile Components Co., |
Ltd.
Procurementof parts
303,637.08
9,343,729.88
No 7,248,464.81
Ltd
Acceptlabor
44,034.79
| Chengdu Wanyou Trading Co., |
85,826.66
No 22,527.44
| Chengdu Wanyou Automobile |
Sales and Service Co., Ltd
Acceptlabor
826,173.26
119,774.35
Yes 368,483.54
Related parties Nature of
thetransaction
Current amount Approved
transactionamount
Whether itexceeds thetransactionamount
Prior-periodamount
Service Co., Ltd.
Acceptlabor
3,136,714.77
| Chengdu Wanyou Auto Trade |
7,373,745.99
No 5,421,148.49Chengdu Wanyou Xiangyu AutoSales and Service Co., Ltd.
Acceptlabor
8,781,051.72
3,797,209.13
Yes 6,376,107.26Guizhou Wanyou Auto Sales andService Co., Ltd.
Acceptlabor
6,496,124.73
7,491,378.51
No 6,881,968.71Harbin Dongan Auto Engine Co.,Ltd.
| Purchasing |
parts andacceptinglaborservices
201,477,650.66
600,127,415.35
No 263,267,944.07
Engine Manufacturing Co., Ltd.
Procurementof parts
286,555,317.12
| Harbin Dongan Automotive |
697,042,854.91
No 653,853,009.25
| Hunan Tianyan Machinery Co., |
Ltd
Procurementof parts
59,035,655.33
8,302,082.10
Yes 2,617,013.13
Sales Service Co., Ltd.
Acceptlabor
3,530,670.99
| Jiangsu Wanyou Automobile |
4,080,339.68
No 2,015,418.16Luzhou
| Wanyou Automobile |
Service Co., Ltd.
Acceptlabor
208,109.30
569,722.83
No 307,508.81CSM Faurecia Automotive PartsCo., Ltd.
Procurementof parts
293,507,822.63
1,597,097,938.30
No 252,639,803.32Southern Tianhe Chassis SystemsCo., Ltd
Procurementof parts
547,250,941.45
1,899,968,522.28
No 459,025,340.96South Inter Air-conditionerCo.,Ltd.
Procurementof parts
324,599,906.01
1,348,876,494.10
No 202,161,276.20Panzhihua Wanyou Auto Sales &Service Co., Ltd.
Acceptlabor
148,176.37
661,829.31
No 257,324.00Sichuan Jian'an Industrial Co., Ltd
Purchasingparts andacceptinglaborservices
569,748,423.73
1,696,226,350.55
No 534,985,354.14
Machinery Co, Ltd.
| Sichuan Ningjiang Shanchuan | Procurement |
of parts
250,225,299.36
630,594,357.18
No 159,762,835.80
Service Co., Ltd.
Acceptlabor
1,014,389.55
| Ya'an Wanyou Auto Sales and |
1,056,331.27
No 846,681.30Yunnan Wanyou Auto Sales andService Co., Ltd.
Acceptlabor
10,507,634.88
16,222,898.50
No 13,728,699.67
| China Changan Automobile |
Group Tianjin Sales Co., Ltd.
Acceptlabor
2,515,157.69
812,228.08
Yes 692,160.09
Co., Ltd
Procurementof parts
4,247,550,166.24
11,215,297,928.42
| Chongqing Qingshan Industrial |
No 3,637,088,928.81
Auto Sales Service Co., Ltd.
| Chongqing Wanyou Ducheng | Accept |
labor
973,308.83
2,870,066.24
No 2,584,670.89
Auto Sales & Service Co., Ltd.
Acceptlabor
810,225.03
| Chongqing Wanyou Xingjian |
555,113.26
Yes 716,753.30
| Chongqing Wanyou Economic |
Development Co., Ltd.
Purchasingparts andacceptinglaborservices
14,785,490.80
59,570,534.71
No 40,779,608.17
Related parties Nature of
thetransaction
Current amount Approved
transactionamount
Whether itexceeds thetransaction
amount
Prior-period
amount
Automobile Sales & Service Co.,Ltd.
Procurementof parts
38,252.00
| Chongqing Wanyou Zunda |
-
Yes 114.95
| Chongqing Changan Minsheng |
Logistics Co. Ltd.
Acceptlabor
2,685,849,489.33
8,082,612,973.07
No 1,760,470,945.02
Electrical Industry Co., Ltd.
| Beijing Beiji Mechanical and | Procurement |
of parts
55,471.89
60,001.39
No 18,410.18
Catalytic Technology Co., Ltd
Procurementof parts
277,552,589.96
| Chengdu Zhongzi Guangming |
51,855,210.76
Yes -
Chengdu Jialing Huaxi Optical &Precision Machinery Co., Ltd.
Procurementof parts
501,828.63
4,336,389.65
No 1,538,164.71Chengdu Lingchuan Vehicle OilTank Co., Ltd.
Procurementof parts
22,896,846.34
53,576,855.25
No 18,148,367.15Chengdu Wanyou Filter Co., Ltd.
Purchasingparts andacceptinglaborservices
60,828,232.32
256,871,985.48
No 76,561,417.56
Automobile Lighting Co., Ltd.
| Hubei Huazhong Marelli | Procurement |
of parts
425,498,458.56
3,093,309,593.37
No 473,880,131.14
Lamp Co., Ltd
Procurementof parts
62,177,934.16
| Hubei Xiaogan Huazhong Car |
228,392,134.24
No 51,876,744.41Yunnan Xiyi Industries Co., Ltd.
Procurementof parts
65,386,027.01 174,256,873.80
No 53,637,731.83
Development Center
Acceptlabor
5,377.35
| China Ordnance Equipment Group Human Resources |
-
Yes -
| China Ordnance Equipment |
Group Commercial Factoring Co.,Ltd
Acceptlabor
76,040.43
123,178.62
No -
| Chongqing Dajiang Jiexin |
Forging Co., Ltd
Procurementof parts
916,320.42
4,355,976.69
No 1,845,245.27
Plastic Co., Ltd.
| Chongqing Dajiang Yuqiang | Procurement |
of parts
196,038.83
138,773.63
Yes 344,226.01
Air-conditioner Co., Ltd.
Procurementof parts
30,929,139.50
| Chongqing Jianshe Automobile |
110,627,918.48
No 38,555,506.77Chongqing Construction TongdaIndustrial Co., Ltd.
Procurementof parts
27,756,255.26
70,281,670.64
No 16,331,004.84
| Chongqing Nexteer Steering |
System Co.,Ltd.
Procurementof parts
482,284,076.02
1,872,399,642.19
No 400,416,384.73
Automobile Fittings Co., Ltd.
Procurementof parts
56,847,951.59
| Chongqing Shangfang |
182,911,907.96
No 52,075,600.58
| Chongqing Qingshan |
Transmission Sales Co., Ltd.
of parts
29,495,148.15
| Procurement |
47,903,411.54
No 18,687,536.60
| Chongqing Yihong Engineering |
Plastic Products Co., Ltd.
Procurementof parts
35,614,480.95
71,088,788.77
No 14,903,524.92Chongqing Chang
(Group) Co., Ltd
Acceptlabor
6,981,144.30
| an industry |
16,940,554.44
No 6,341,330.87
| Chongqing Changan Property |
Management Co., Ltd.
Acceptlabor
5,556,152.45
11,211,104.18
No 1,928,927.46
Brokerage Co., Ltd.
Procurementof parts
179,456.11
| Beijing Zhongbing Insurance |
284,148.54
No 45,762.00
Related parties Nature of
thetransaction
Current amount Approved
transactionamount
Whether itexceeds thetransaction
amount
Prior-period
amountLear Chang
Automotive System Co., Ltd
Procurementof parts
186,552,716.15
| an (Chongqing) |
671,258,752.46
No 229,595,709.77
| United Automotive Electronics |
(Chongqing) Co., Ltd
Purchasingparts andacceptinglaborservices
489,858,832.36
1,429,975,183.76
No 411,241,559.03GKN HUAYU Driveline Systems(Chongqing) Co., Ltd.
Procurementof parts
175,750,765.78
790,510,541.08
No 210,241,479.79
Co., Ltd.
Acceptlabor
33,388.14
| Nanjing LingHang Technology |
784,986.19
No 304,110.83Tiannak Lingchuan (Chongqing)exhaust system Co., Ltd
Procurementof parts
23,033,580.78
94,817,712.44
No 30,942,900.59Changan Laisi (Chongqing) robotintelligent equipment Co., Ltd
Procurementof parts
1,756,066.31
6,080,910.24
No -
| Chongqing Dajiang Tongyang |
Plastics Co., Ltd.
Purchasingparts andacceptinglaborservices
251,637,351.95
642,430,775.12
No 191,978,923.57
Manufacturing Co., Ltd.
Purchasingparts andacceptinglaborservices
243,266,094.33
| Chongqing Dajiang Guoli Precision Machinery |
602,237,925.04
No 167,524,798.04
| Dajiang Yapp Automotive |
Systems Co., Ltd.
of parts
218,898,950.45
| Procurement |
639,666,919.95
No 167,401,222.48Chongqing Hanon JiansheAutomotive Thermal SystemsCo., Ltd.
Procurementof parts
75,943,637.67
262,419,840.76
No 71,943,120.72Chongqing Lingchuan Auto PartsManufacturing Technology Co.,Ltd.
Procurementof parts
101,723,761.38
246,500,284.04
No 67,077,513.30Chongqing Changan IntelligentIndustrial Technology ServiceCo., Ltd
Accept labor11,279,433.62
5,609,648.20
Yes 513,085.15Longchang Shanchuan PrecisionWelded Tube Co., Ltd.
Procurementof parts
12,373,330.60
46,371,255.34
No 16,006,962.03Zhongqi Chuangzhi TechnologyCo., Ltd
| Purchasing goods and |
acceptinglaborservices
480,000.94
416,000.00
Yes -
Chongqing ChangrongMachinery Co., Ltd.
Procurementof parts
136,845,945.08
471,572,232.84
No 105,095,477.66Chongqing Wutong ChelianTechnology Co., Ltd.
Purchasing
| parts and |
acceptinglaborservices
157,766,418.74
2,421,865,920.85
No 18,867,924.00China Ordnance News Agency
PurchasedItems
18,555.76
20,726.01
No 8,235.84
Co., Ltd
| Avatr Technology (Chongqing) | Procurement |
of parts
928,938.06
-
Yes -
Related parties Nature of
thetransaction
Current amount Approved
transaction
amount
Whether itexceeds thetransaction
amount
Prior-period
amountSouthwest Ordnance IndustryChongqing EnvironmentalProtection Research Institute Co.,Ltd.
Accept labor445,897.62
3,371,826.69
No 643,025.04Changan Ford Automobile Co.,Ltd.
Procurementof parts
-
21,351.61
No 33,177.65Changan Auto Finance Co., Ltd. Accept labor 40,003,766.38
83,784,480.00
No 154,563,517.61Southwest Ordnance IndustryCo., Ltd
Procurementof parts
-
1,300,000.00
No -
Chongqing ChangrongMachinery Co., Ltd
Procurementof parts
-
60,989.98
No -
Nanyang Lida OptoelectronicsCo., Ltd
Procurementof parts
-
9,739.85
No -
Yunnan Wanxing Auto SalesService Co., Ltd.
Accept labor -
143,000.00
No 92,971.05
| Chongqing Changxian Intelligent |
Technology Co., Ltd
Accept labor -
910,000,000.00
No -
Chongqing construction industry(Group) Co., Ltd
Procurementof parts
-
-
No 726,973.62Chongqing Pingshan TkCarburetor Co., Ltd.
Procurementof parts
-
-
No 113,625.19Chongqing Wanyou AdvertisingCo.,Ltd.
Procurementof parts
-
-
No 144,000.00Ald Fortune Auto Leasing &Renting (Shanghai) Co., Ltd.
Procurementof parts
-
-
No 2,081,065.28
| Avatr (Chongqing) Automobile |
Sales Service Co., Ltd
of parts
61,949,625.77
| Procurement |
-
Yes -
Total: 14,784,492,172.04 54,791,273,787.10
12,077,344,092.00
Goods sold and services offered
In RMB YuanRelated parties Nature of the transaction Current amount Prior-period AmountChangan Ford Automobile Co., Ltd.
Selling parts and providing laborservices
2,017,778.68
1,977,509.38
Changan Mazda Automobile Co., Ltd Selling parts 7,133,803.72
-
Jiangling Holdings Co., Ltd. Providing labor services 207,500.00
384,888.69
Changan Automobile Financing Co., Ltd. Providing labor services 174,835,059.92
233,886,141.47
Chongqing Changan Kuayue AutomobileCo., Ltd.
components
105,713,055.00
| Selling complete vehicles and |
35,175,120.00
Chongqing Changan Kuayue AutomobileSales Co., Ltd.
Selling parts129,155.26
84,044.68
Deepal Automobile Technology Co., Ltd
| Selling vehicle parts and |
providing labor services
111,103,766.19
941,495,311.87
Pakistan Master Automobile Co., Ltd. Selling complete vehicles 109,372,901.50
686,073,063.37
China Changan Automobile Group Co.,Ltd
Providing labor services23,760.00
-
Anhui Wanyou Automobile Sales ServiceCo., Ltd.
providing labor services
140,376,222.36
| Selling vehicle parts and |
101,714,909.87
Related parties Nature of the transaction Current amount Prior-period AmountChengdu Huachuan Electric EquipmentCo., Ltd.
providing labor services
99,293.70
| Selling complete vehicles and |
-
Chengdu Wanyou Trading Co., Ltd.
Selling parts and providing laborservices
95,348.42
8,176.99
Chengdu Wanyou Auto Sales and ServiceCo.,Ltd.
| Selling vehicle parts and |
providing labor services
832,930.32
472,725.21
Chengdu Wanyou Auto Trade ServiceCo., Ltd.
providing labor services
329,514,962.73
| Selling vehicle parts and |
312,041,141.75
| Chengdu Wanyou Xiangyu Auto Sales |
and Service Co., Ltd.
providing labor services
697,109,803.93
| Selling vehicle parts and |
699,738,917.76
Guizhou Wanyou Auto Sales and ServiceCo., Ltd.
| Selling vehicle parts and |
providing labor services
565,501,997.62
501,259,585.12
Harbin Dongan Automotive EngineManufacturing Co., Ltd.
Selling parts1,993,518.61
24,251,252.09
Hunan Tianyan Machinery Co., Ltd Providing labor services 169,811.32
-
Jiangsu Wanyou Automobile SalesService Co., Ltd.
providing labor services
314,630,817.93
| Selling vehicle parts and |
105,718,270.77
Luzhou Wanyou Automobile Service Co.,Ltd.
| Selling complete vehicles and |
components
592,242.82
450,709.55
| Panzhihua Wanyou Auto Sales & Service |
Co., Ltd.
services
329,795.23
| Selling parts and providing labor |
383,700.50
Wanyou Automobile Investment Co., Ltd.
| Selling complete vehicles and |
providing labor services
291,309,672.29
327,743,125.35
Ya'an Wanyou Auto Sales and ServiceCo., Ltd.
providing labor services
1,523,835.89
| Selling vehicle parts and |
889,767.43
Yunnan Wanyou Auto Sales and ServiceCo., Ltd.
| Selling vehicle parts and |
providing labor services
555,923,788.70
546,916,400.91
China South Industries Group FinancialLeasing Co., Ltd.
Provide services16,343,690.21
7,077,169.81
China Changan Automobile Group HefeiInvestment Co., Ltd.
Selling complete vehicles201,106.20
-
| China Changan Automobile Group |
Tianjin Sales Co., Ltd.
providing labor services
131,130,406.12
| Selling vehicle parts and |
113,428,610.55
Chongqing Anfu Automobile Co., Ltd.
| Selling complete vehicles and |
components
29,676,902.67
7,775,221.22
Chongqing Fuji Supply ChainManagement Co., Ltd
Selling complete vehicles69,216,929.01
-
Chongqing Tsingshan Industrial Co., Ltd.
providing labor services
470,541.17
| Selling vehicle parts and |
72,087,696.68
Chongqing Wanyou Ducheng Auto SalesService Co., Ltd.
| Selling complete vehicles and |
components
2,029,066.92
1,472,801.11
| Chongqing Wanyou Xingjian Auto Sales |
& Service Co., Ltd.
Selling parts 914,070.23
853,360.20
Chongqing Wanyou EconomicDevelopment Co., Ltd.
providing labor services
895,356,870.07
| Selling vehicle parts and |
924,172,360.80
Chongqing Wanyou Zunda AutomobileSales & Service Co., Ltd.
Selling parts1,211,267,157.57
319,697,765.86
Chongqing Changan Minsheng LogisticsCo., Ltd.
Selling parts and providing laborservices
1,389,240.00
1,018,913.85
China South Industry Group Finance Co.,Ltd.
Provide services667,592.00
550,714.07
| Hubei Huazhong Marelli Automotive |
Lighting Co., Ltd
Selling goods 1,313.00
-
Related parties Nature of the transaction Current amount Prior-period AmountYunnan Xiyi Industries Co., Ltd. Selling parts 663,752.00
China South Industries GroupCommercial Factoring Co., Ltd.
Provide services5,913.36
44,333.22
Chongqing Jianshe Automobile Air-conditioner Co., Ltd.
Selling parts7,964.60
11,946.90
Chongqing Nexteer Steering SystemCo.,Ltd.
Selling parts5,921,500.00
1,552,230.09
United Automotive Electronics(Chongqing) Co., Ltd
Selling parts4,577,309.74
-
| Nanjing LingHang Technology Co., Ltd. | Providing labor services | 850,308.10 | 1,873,252.38 |
Ald Fortune Auto Leasing & Renting(Shanghai) Co., Ltd.
Providing labor services91,754.87
13,010,318.55
Tiannak Lingchuan (Chongqing) exhaustsystem Co., Ltd
Selling parts937,224.65
2,651,092.85
Chongqing Dajiang Guoli PrecisionMachinery Manufacturing Co., Ltd.
Selling parts and providing laborservices
5,757,279.81
14,217,387.85
Chongqing Lingchuan Auto PartsManufacturing Technology Co., Ltd.
Selling parts765,342.53
1,214,708.00
Zhongqi Chuangzhi Technology Co., Ltd Selling goods 0.94
-
Chongqing Wutong Chelian TechnologyCo., Ltd
Selling goods
271.68
-
Avatr Technology (Chongqing) Co., Ltd.
Selling parts and providing laborservices
966,811,840.03
52,471,011.00
Dali Wanfu Automobile Sales andService Co., Ltd
Selling parts11,752.21
-
| Hainan Anxinxing Information |
Technology Co., Ltd.
Providing labor services -
28,301.89
Harbin Dongan Auto Engine Co., Ltd.
Sales of parts and maintenanceservices
-
1,173.00
Yunnan Wanxing Auto Sales Service Co.,Ltd.
components
-
| Selling complete vehicles and |
18,951,586.08
Chongqing Changan Minsheng BoyuLogistics Co., Ltd.
Sales of complete vehicles andtraining fees
-
23,716.98
Chengdu Lingchuan Vehicle Oil TankCo., Ltd.
Selling parts -
938,416.81
| Chongqing Dajiang Yuqiang Plastic Co., |
Ltd.
Selling parts -
131,400.00
Chongqing construction industry (Group)Co., Ltd
Selling parts -
193,218.11
Chongqing Dajiang Tongyang PlasticsCo., Ltd.
Selling parts -
533,842.98
Avatr (Chongqing) Automobile SalesService Co., Ltd
Selling goods
660.38
-
Total: 6,754,944,830.21 6,077,311,065.60
(2) Related-party leasing
Rent assets to related parties
In RMB YuanLessee Type of leased assets Report period Amount Same period of last
South Inter Air-conditioner Co.,Ltd. Vehicle 48,849.56 67,752.21
| period Amount |
Chongqing Changan Industries GroupCo. Ltd.
Building 3,283,373.713,397,373.71
Nanjing LingHang Technology Co.,Ltd.
Vehicle 2,624,149.5663,932,417.73
Ald Fortune Auto Leasing & Renting(Shanghai) Co., Ltd.
Vehicle 22,935,079.522,696,360.42
Deepal Automobile Technology Co.,Ltd
Building, land and battery
Workshop
27,782,737.0810,675,075.50
Chongqing Changan MinshengLogistics Co. Ltd.
Building 348,266.98354,900.63
Chongqing Wanyou EconomicDevelopment Co., Ltd.
Building and land 321,100.92321,100.92
Chongqing Changan Real EstateDevelopment Co., Ltd
Vehicle 24,424.78 -
Total 81,444,981.12 57,367,982.11
Rent assets from related parties
In RMB YuanLessor Type of leased assets
Rent paidReport period Amount
Same period of last period
AmountChongqing Changan MinshengLogistics Co., Ltd
Land 8,133,557.01 1,730,062.80
Chongqing Changan Property
Management Co., Ltd
Land 2,977,660.00 -
| Chongqing Changan Property |
Total 11,111,217.01
(3) Other related transactions
Integrated service charges
In RMB YuanRelated parties Nature of the transaction Report period Amount Same period of last
period Amount
| Changan Industries (Group) Co. Ltd | Payment of land rental fees |
| - | 3,091,095.90 | |
| Payment of building rental fees |
| - | 1,197,968.00 |
Payment of utilities
| Payment of utilities | 37,806,926.34 | 27,574,790.98 |
| Others |
| - | 513,677.67 |
Total
| 32,377,532.55 | 37,806,926.34 |
Purchase of project materials
In RMB YuanRelated parties Report period Amount
Same period of last period
Amount
Chongqing Changan Minsheng Logistics Co., Ltd -
| 8,150.95 | ||
| Changan Laisi (Chongqing) robot intelligent equipment Co., Ltd |
-
| 7,830,088.50 |
Chongqing Changan Intelligent Industrial Technology Service
Co., Ltd
| Chongqing Changan Intelligent Industrial Technology Service | 2,743,362.86 |
-
Total
| 2,743,362.86 |
Staff expenses for technical supporting
In RMB YuanRelated parties Report period Amount
Same period of last period
Amount
7,838,239.45Chang
an Mazda Automobile Co., Ltd
| Chang | 9,131,656.92 |
| 222,474.38 | ||
| Changan Ford |
Automobile Co., Ltd
| 5,605,674.97 | 7,943,502.33 |
Changan Mazda Engine Co., Ltd.
| Changan Mazda Engine Co., Ltd. | 6,703,950.04 |
| 242,821.56 | ||
| Hainan Anxinxing Information Technology Co., Ltd. |
| - | 634,354.87 | |
| Chongqing Shangfang Auto Parts Co., Ltd |
| 37,002.00 | - |
Jiangling Holdings Co., Ltd
| Jiangling Holdings Co., Ltd | 7,343,774.35 |
| - | ||
| Chongqing Changan Crossing Vehicle Co., Ltd |
| 1,212,194.63 | - | |
| China Chang |
an Automobile Group Co., Ltd
| 169,811.32 | - |
Chongqing Nexteer Steering System Co., Ltd
| Chongqing Nexteer Steering System Co., Ltd | 18,026.66 | - |
Chongqing Dajiang National Precision MachineryManufacturing Co., Ltd
| Chongqing Dajiang National Precision Machinery Manufacturing Co., Ltd | 2,520.00 |
| - | ||
| Jiangling Automobile Co., Ltd |
| 826,370.83 | - | |
| Chongqing Construction Transmission Technology Co., Ltd |
| 27,872.04 | - | |
| Chongqing |
WutongChelian Technology Co., Ltd
| 208,063.02 | - |
Avatr Technology (Chongqing) Co., Ltd
| Avatr Technology (Chongqing) Co., Ltd | 682,780.43 | - |
Total
| 31,969,697.21 | 9,043,153.14 |
Techonology development service charges
In RMB YuanRelated parties Report period Amount
Same period of last period
Amount
| Chongqing Tsingshan Industrial Co., Ltd. | 10,144,721.22 | |
| Changan Mazda Automobile Co., Ltd |
| 397,572.54 |
Total
| 10,542,293.76 |
Collection of trademark use rights fees
In RMB YuanRelated parties Report period Amount
Same period of last period
Amount
| Chongqing Changan Kuayue Automobile Co., Ltd. | 6,009,433.96 |
Related party monetary funds
In RMB YuanRelated parties Ending Amount Beginning Amount
| China South Industries Group Finance Co., Ltd | 19,857,412,889.08 | 19,862,952,043.78 |
Changan Automobile Finance Co., Ltd
| Changan Automobile Finance Co., Ltd | 14,700,000,000.00 | 14,950,000,000.00 |
Total
| 34,557,412,889.08 | 34,812,952,043.78 |
First half of 2023, the annual interest rate of deposits deposited with related parties is 0.35% - 2.25%, and the term is 0-12 months.
BorrowingShort-term borrowing
In RMB YuanRelated parties Ending Amount Beginning Amount
| China South Industries Group Finance Co., Ltd | 20,000,000.00 | 29,000,000.00 |
Long-term borrowing
In RMB YuanRelated parties Ending Amount Beginning Amount
| China South Industries Group Finance Co., Ltd | 80,000,000.00 | 40,000,000.00 |
Interest income of deferred payment
In RMB YuanRelated parties Report period Amount Same period of last period Amount
| Jiangsu Wanyou Automobile Sales Service Co., Ltd | 1,380.53 |
-
| Chongqing Wanyou Economic Development Co., Ltd |
| - | 6,588.40 |
China Changan Automobile Group Tianjin Sales Co.,Ltd.
| China Changan Automobile Group Tianjin Sales Co., Ltd. | - |
Total
| 2,489.29 | |
| 1,380.53 |
6. Payment and receivables of related parties
(1) Payment receivables of related listed companies
In RMB Yuan
9,077.69Items
| Items | Related parties | Ending balance | Beginning balance |
Notesreceivable
Chongqing Changan Kuayue AutomobileSales Co., Ltd.
37,452,780.00 -
Items Related parties Ending balance Beginning balanceNotesreceivable
Deepal Automobile Technology Co., Ltd -3,623,354,650.53Notesreceivable
Chengdu Wanyou Auto Trade Service Co.,Ltd.
22,000,000.00 22,500,000.00Notesreceivable
Guizhou Wanyou Auto Sales and ServiceCo., Ltd.
5,000,000.00 7,300,000.00Notesreceivable
Manufacturing Co., Ltd.
1,000,729.17 3,029,467.77
| Harbin Dongan Automotive Engine | |
| Notes |
receivable
Wanyou Automobile Investment Co., Ltd. 2,214,980,000.00 3,047,690,000.00Notesreceivable
Yunnan Wanyou Auto Sales and Service
Co., Ltd.
35,000,000.00 43,000,000.00Notesreceivable
Chongqing Tsingshan Industrial Co., Ltd. 40,822,710.36 40,463,588.91Notesreceivable
Development Co., Ltd.
27,000,000.00 20,250,000.00Notesreceivable
Avatr Technology (Chongqing) Co., Ltd. 494,166,303.64 121,822,864.29
Chongqing Wanyou Economic
Subtotal
| Subtotal | 2,877,422,523.17 | 6,929,410,571.50 | |
| Account | |||
receivable
Changan Ford Automobile Co., Ltd. 6,885,149.43 195,582,372.52
receivable
Changan Mazda Automobile Co., Ltd 9,148,414.64 72,378,357.38Accountreceivable
Changan Mazda Engine Co., Ltd. 3,373,248.04 3,494,661.85Accountreceivable
Jiangling Holdings Co., Ltd. 49,384,266.38 121,166,512.75Accountreceivable
Changan Auto Finance Co., Ltd. 29,156,758.91 68,199,053.80Accountreceivable
Chongqing Changan Kuayue Vehicle Co.,
Ltd
17,920,237.90 39,592,219.39
AccountAccount
receivable
Beijing Fang’an cresent taxi Co., Ltd. -
| Account |
38,600,000.00Accountreceivable
Chongqing Changan Kuayue AutomobileSales Co., Ltd.
14,942.80 31,861.79Accountreceivable
Deepal Automobile Technology Co., Ltd-
1,011,838,777.69Accountreceivable
Pakistan Master Automobile Co., Ltd. 30,444,169.62 37,958,837.25Accountreceivable
China Changan Automobile Group Co.,
Ltd
180,000.00 -
| Account |
receivable
Co., Ltd
50,000.00 -
| Chengdu Huachuan Electric Equipment |
Accountreceivable
Manufacturing Co., Ltd.
391,043.25 147,532.81Accountreceivable
China South Industries Group FinancialLeasing Co., Ltd.
5,410,074.20 9,734,968.89Accountreceivable
Chongqing Tsingshan Industrial Co., Ltd. 31,864,429.19 29,579,405.37Accountreceivable
Chongqing Chang
Harbin Dongan Automotive Enginean industry (Group)
Co., Ltd
3,626,628.57 3,626,628.57
| an industry (Group) | |
| Account |
receivable
Nanjing LingHang Technology Co., Ltd. 1,428,345.48 4,209,516.65
Items Related parties Ending balance Beginning balanceAccountreceivable
(Shanghai) Co., Ltd.
4,315,640.00 5,181,800.00Accountreceivable
Avita Technology (Chongqing) Co., Ltd. 394,779,882.78 320,592,883.29Accountreceivable
JMC -
Ald Fortune Auto Leasing & Renting
1,176,831.13Accountreceivable
Chongqing Changan Minsheng LogisticsCo. Ltd.
-
688,099.86
receivable
| Account | Chengdu Wanyou Xiangyu Automobile |
Sales and Service Co., Ltd
-
127,548.00Accountreceivable
Guizhou Wanyou Auto Sales and ServiceCo., Ltd.
-
63,900.00Accountreceivable
Commercial Factoring Co., Ltd.
-
| China South Industries Group |
1,841.34Accountreceivable
Chongqing Changan Intelligent IndustrialTechnology Service Co., Ltd
-
0.15
Accountreceivable
Tiannak Lingchuan (Chongqing) exhaustsystem Co., Ltd
-
0.03
| Subtotal | 588,373,231.19 | 1,963,973,610.51 | |
| Other | |||
receivable
Co. Ltd.
475,374.49 436.57
| Chongqing Changan Minsheng Logistics | |
| Other |
receivable
Ltd.
243,650.67 859,049.92Otherreceivable
Nanjing LingHang Technology Co., Ltd. 107,028.38 -
| China South Industry Group Finance Co., | ||
Otherreceivable
Chongqing Changxin Zhiqi Private Equity
Partnership)
35,000,000.00 -
| Investment Fund Partnership (Limited | |||
| Other |
receivable
Co., Ltd
1,157,446.69 1,157,446.69Otherreceivable
| Chongqing Changan industry (Group) |
| China South Industries Group |
Commercial Factoring Co., Ltd.
44,615,500.00 -
Otherreceivable
China Changan Automobile Group HefeiInvestment Co., Ltd
282,382.49 -
Subtotal 81,881,382.72 2,016,933.18Advancedpayment
Deepal Automobile Technology Co., Ltd-
10,397,480.50Advancedpayment
Beijing Wutong Chelian Technology Co.,Ltd.
12,769,380.30 12,438,660.30Subtotal 12,769,380.30 22,836,140.80
(2) Accounts payable to related parties of listed companies
In RMB YuanItems Related parties Ending balance Beginning balanceNotes payable Jiangling Holdings Co., Ltd. 772,650,078.38 59,248,188.59Notes payable Deepal Automobile Technology Co., Ltd-293,766,946.00Notes payable Harbin Dongan Auto Engine Co., Ltd. 69,720,000.00 59,090,000.00
Items Related parties Ending balance Beginning balanceNotes payable
Co., Ltd.
181,260,000.00 197,280,000.00Notes payable Hunan Tianyan Machinery Co., Ltd 3,680,000.00 -
| Harbin Dongan Automotive Engine Manufacturing | ||
Notes payable CSM Faurecia Automotive Parts Co., Ltd. 71,521,000.00 36,370,000.00Notes payable South Tianhe Chassis System Co., Ltd. 46,898,358.00 118,961,825.13Notes payable South Inter Air-conditioner Co.,Ltd. 188,840,000.00 130,650,474.98Notes payable Sichuan Ningjiang Shanchuan Machinery Co, Ltd. 109,816,824.00 60,759,442.02Notes payable Chongqing Tsingshan Industrial Co., Ltd. 1,313,041,354.00 1,078,658,254.05Notes payable Chongqing Changan Minsheng Logistics Co. Ltd. 336,484,318.39 300,858,223.58Notes payable CDGM Tanaka Environmental Catalyst Co.,Ltd. 62,940,000.00 560,000.00Notes payable
Machinery Co., Ltd.
330,000.00 950,000.00Notes payable Chengdu Lingchuan Vehicle Oil Tank Co., Ltd. 2,620,000.00 -
| Chengdu Jialing Huaxi Optical & Precision | ||
Notes payable Chengdu Wanyou Filter Co., Ltd. 26,550,000.00 34,373,849.84Notes payable
Hubei Huazhong Marelli Automobile Lighting Co.,Ltd.
144,870,000.00 139,690,000.00Notes payable Hubei Xiaogan Huazhong Automobile Light Co., Ltd. 36,940,000.00 15,650,000.00Notes payable Chongqing Dajiang Jiexin Forging Co., Ltd. 1,010,000.00 1,090,000.00Notes payable
Chongqing Jianshe Automobile Air-conditioner Co.,Ltd.
21,560,000.00 20,050,000.00Notes payable Chongqing Construction Tongda Industrial Co., Ltd. 14,439,729.00 10,640,000.00Notes payable Chongqing Nexteer Steering System Co.,Ltd. 192,490,000.00 327,738,252.79Notes payable Chongqing Shangfang Automobile Fittings Co., Ltd. 34,683,825.00 33,869,017.86Notes payable
Ltd.
19,740,000.00 19,560,000.00Notes payable
GKN HUAYU Driveline Systems (Chongqing) Co.,Ltd
118,680,000.00 98,250,000.00Notes payable
Tiannak Lingchuan (Chongqing) exhaust system Co.,Ltd
29,740,000.00 32,530,000.00Notes payable Chongqing Dajiang Tongyang Plastics Co., Ltd. 205,123,800.00 145,840,000.00Notes payable
Chongqing Yihong Engineering Plastic Products Co.,Chongqing Dajiang Guoli Precision Machinery
Manufacturing Co., Ltd.
4,463,262.00 7,765,999.95Notes payable Dajiang Yapp Automotive Systems Co., Ltd. 199,010,000.00 175,450,000.00Notes payable
Chongqing Dajiang Guoli Precision MachineryChongqing Hanon Jianshe Automotive Thermal
Systems Co., Ltd.
49,510,000.00 82,600,000.00
Items Related parties Ending balance Beginning balanceNotes payable
Technology Co., Ltd.
90,380,000.00 80,530,000.00Notes payable
Longchang Shanchuan Precision Welded Tube Co.,Ltd.
4,942,403.00 6,140,145.72Notes payable
Chongqing Lingchuan Auto Parts ManufacturingSouthwest Ordnance Industry Chongqing
Environmental Protection Research Institute Co., Ltd.
1,012,449.43 -
| Southwest Ordnance Industry Chongqing |
Notes payable Chongqing Changrong Machinery Co., Ltd. -
1,314,548.20Notes payable Hunan Tianyan Machinery Co., Ltd. -
630,000.00Subtotal 4,354,947,401.20 3,570,865,168.71
Accountpayable
Jiangling Holdings Co., Ltd. 164,547,071.39 1,116,408,615.48Accountpayable
Hangzhou Chelizi Intelligent Technology Co., Ltd. 12,350.00 12,350.00Accountpayable
Deepal Automobile Technology Co., Ltd - 822,638,571.39
payable
Beijing Wutong Chelian Technology Co., Ltd. 1,632,357.66 4,301,349.18Accountpayable
Chengdu Huachuan Electric Equipment Co., Ltd. 57,494,293.50 41,958,250.19Accountpayable
Chengdu Ningjiang Zhaohe Automobile Components
Co., Ltd.
1,175,453.90 1,358,424.58Accountpayable
Harbin Dongan Auto Engine Co., Ltd. 41,477,760.18 103,616,123.17Accountpayable
Harbin Dongan Automotive Engine Manufacturing
Co., Ltd.
480,894.09 99,563,867.81
AccountAccount
payable
Hafei Automobile Co., Ltd 344.04 344.04Accountpayable
Hunan Tianyan Machinery Co., Ltd 62,773,650.28 -
| Account | ||
Accountpayable
CSM Faurecia Automotive Parts Co., Ltd. 106,611,292.57 79,576,674.87Accountpayable
South Tianhe Chassis System Co., Ltd. 188,361,446.89 142,620,012.97Accountpayable
South Inter Air-conditioner Co.,Ltd. 130,716,589.27 87,495,633.58
payable
Sichuan Jian'an Industrial Co.,Ltd. 107,350,795.49 40,868,455.07Accountpayable
Sichuan Ningjiang Shanchuan Machinery Co, Ltd. 32,663,780.69 11,108,409.24Accountpayable
Chongqing Tsingshan Industrial Co., Ltd. 711,328,381.80 153,454,423.03Accountpayable
Chongqing Wanyou Xingjian Auto Sales & Service
Co., Ltd.
20,842.80 20,842.80Accountpayable
Chongqing Wanyou Economic Development Co., Ltd. 4,575,091.49 757,763.87
AccountAccount
payable
Chongqing Changan Minsheng Logistics Co. Ltd. 10,622,441.06 12,696,301.88Accountpayable
CDGM Tanaka Environmental Catalyst Co.,Ltd. 257,112,640.35 32,759,347.97
Items Related parties Ending balance Beginning balanceAccountpayable
Machinery Co., Ltd.
202,481.66 559,576.76Accountpayable
Chengdu Lingchuan Vehicle Oil Tank Co., Ltd. 11,183,506.80 8,056,699.53Accountpayable
Chengdu Wanyou Filter Co., Ltd. 26,556,287.37 14,115,700.51Accountpayable
Hubei Huazhong Marelli Automobile Lighting Co.,
Ltd.
146,612,808.09 236,096,916.60
Chengdu Jialing Huaxi Optical & PrecisionAccount
payable
Hubei Xiaogan Huazhong Automobile Light Co., Ltd. 17,446,057.16 19,359,970.66Accountpayable
Yunnan Xiyi Industries Co., Ltd. 28,768,504.82 4,210,156.64Accountpayable
Chongqing Dajiang Jiexin Forging Co., Ltd. 107,645.85 312,203.77Accountpayable
Chongqing Dajiang Yuqiang Plastic Co., Ltd. 38,651.31 496,894.20Accountpayable
Chongqing Jialing Yimin Special Equipment Co., Ltd. 104,496.50 104,496.50
AccountAccount
payable
| Account | Chongqing Jianshe Automobile Air-conditioner Co., |
Ltd.
15,637,578.08 10,360,465.69Accountpayable
Equipment Co., Ltd.
47,265.91 47,265.91Accountpayable
Chongqing Construction Tongda Industrial Co., Ltd. 20,074,980.69 11,268,342.31Accountpayable
Chongqing Nexteer Steering System Co.,Ltd. 330,092,881.48 278,876,988.05Accountpayable
Chongqing Shangfang Automobile Fittings Co., Ltd. 19,581,178.77 13,575,599.30
Chongqing Jianshe Mechanical & ElectricalAccount
payable
Chongqing Qingshan Transmission Sales Co., Ltd. 6,031,563.88 10,199,151.11Accountpayable
Chongqing Xiyi automobile connecting rod Co., Ltd 38,422.14 38,422.14Accountpayable
Chongqing Yihong Engineering Plastic Products Co.,
Ltd.
10,554,570.55 4,247,025.85Accountpayable
Chongqing Changan industry (Group) Co., Ltd 234,239.51 236,355.17Accountpayable
Lear Changan (Chongqing) Automotive System Co.,
Ltd
9,335.39 109,342,564.03
AccountAccount
payable
United Automotive Electronics (Chongqing) Co., Ltd 98,553,343.25 72,864,235.98Accountpayable
GKN HUAYU Driveline Systems (Chongqing) Co.,
Ltd
41,873,286.99 49,148,122.03Accountpayable
Tiannak Lingchuan (Chongqing) exhaust system Co.,Ltd
43,743.18 5,380,229.34Accountpayable
Chongqing Dajiang Tongyang Plastics Co., Ltd. 74,791,702.46 86,558,622.08Accountpayable
AccountChongqing Dajiang Guoli Precision Machinery
Manufacturing Co., Ltd.
17,036,265.16 6,417,935.77
| Chongqing Dajiang Guoli Precision Machinery | |
| Account |
payable
Dajiang Yapp Automotive Systems Co., Ltd. 158,843,424.75 152,806,662.74Accountpayable
Systems Co., Ltd.
1,646,423.15 2,388,277.76
Items Related parties Ending balance Beginning balanceAccountpayable
Technology Co., Ltd.
37,859,893.35 25,869,763.88Accountpayable
Chongqing Changan Intelligent Industrial TechnologyService Co., Ltd
1,443,978.00 -
| Chongqing Lingchuan Auto Parts Manufacturing | ||
Accountpayable
Longchang Shanchuan Precision Welded Tube Co.,Ltd.
3,273,547.80 1,759,775.48Accountpayable
Chongqing Changrong Machinery Co., Ltd. 40,659,325.37 18,773,538.36
payable
Chongqing Wutong Chelian Technology Co., Ltd 2,379,826.71 -
| Account |
Accountpayable
Avatr Technology (Chongqing) Co., Ltd 1,049,700.00 -
Accountpayable
Changan
| Reis (Chongqing) Robotic Intelligent |
Equipment Co., Ltd.
-
8,537,490.14Accountpayable
Changan Ford Automobile Co., Ltd. -
1,878,695.33Accountpayable
Environmental Protection Research Institute Co., Ltd.
-
| Southwest Ordnance Industry Chongqing |
963,651.26
payable
Chengdu Lingchuan Special Industry Co., Ltd. -
| Account |
220,175.48Accountpayable
Chongqing Automobile Air-conditioner Co., Ltd. -
205,041.51Accountpayable
Hunan Tianyan Machinery Co., Ltd. -
143,359.78Accountpayable
Chongqing Dajiang Xinda Vehicles Shares Co., Ltd. -
56,251.08Accountpayable
Beijing Beiji Mechanical and Electrical Industry Co.,Ltd.
-
3,165.30
payable
Chongqing Changan Kuayue Vehicle Co., Ltd -
| Account |
1,382.56Accountpayable
Chongqing Changfeng Jiquan Machinery Co., Ltd. -
1,340.91Accountpayable
Chengdu Wanyou Auto Trade Service Co., Ltd.426,628.98 250
Accountpayable
Chongqing Wanyou Ducheng Auto Sales Service Co.,Ltd.
3,486.65 -
Subtotal 2,992,164,509.21 3,906,698,522.62Contractliabilities
Changan Ford Automobile Co., Ltd. 0.36 493,954.43Contractliabilities
Changan Automobile Finance Co., Ltd 685,200.00 685,200.00
Contract
liabilities
Anhui Wanyou Automobile Sales Service Co., Ltd. 13,745,063.04 12,540,522.24Contractliabilities
Bazhong Wanyou Auto Sales & Service Co., Ltd. 50,426.48 50,426.48Contractliabilities
Chengdu Wanyou Trading Co., Ltd. 34,357.00 18,900.00Contractliabilities
Chengdu Wanyou Auto Sales and Service Co.,Ltd. 111,561.78 101,869.64Contractliabilities
Chengdu Wanyou Auto Trade Service Co., Ltd. 29,592,086.71 18,393,074.44
ContractContract
liabilities
| Contract | Chengdu Wanyou Xiangyu Auto Sales and Service |
Co., Ltd.
94,127,263.38 64,279,954.50
Items Related parties Ending balance Beginning balanceContractliabilities
Guizhou Wanyou Auto Sales and Service Co., Ltd. 51,855,145.20 96,702,773.24Contractliabilities
Hafei Automobile Co., Ltd 471,942.49 471,942.49Contractliabilities
Jiangsu Wanyou Automobile Sales Service Co., Ltd. 87,805,094.37 58,420,002.39Contractliabilities
Luzhou Wanyou Automobile Service Co., Ltd.
76,183.28 91,342.25
liabilities
Panzhihua Wanyou Auto Sales & Service Co., Ltd. 44,578.01 16,305.41Contractliabilities
Wanyou Automobile Investment Co., Ltd. 13,995,992.74 47,689,212.74Contractliabilities
Ya'an Wanyou Auto Sales and Service Co., Ltd. 94,915.31 75,083.25Contractliabilities
Yunnan Wanyou Auto Sales and Service Co., Ltd. 24,818,155.28 49,769,852.59Contractliabilities
China Changan Automobile Group Hefei Investment
Co., Ltd.
10,273.00 10,273.00
ContractContract
liabilities
| Contract | China Changan Automobile Group Tianjin Sales Co., |
Ltd.
20,689,970.87 33,057,138.53Contractliabilities
Chongqing Wanyou Ducheng Auto Sales Service Co.,Ltd.
288,575.24 373,179.91Contractliabilities
Chongqing Wanyou Xingjian Auto Sales & ServiceCo., Ltd.
163,077.92 155,719.35Contractliabilities
Chongqing Wanyou Economic Development Co., Ltd. 112,755,890.79 124,667,991.83Contractliabilities
Service Co., Ltd.
67,022,495.88 74,694,999.66
| Chongqing Wanyou Zunda Automobile Sales & | |
| Contract |
liabilities
Chongqing Changan Minsheng Logistics Co. Ltd. 239,944.56 416,441.17Contractliabilities
Chongqing Shangfang Automobile Fittings Co., Ltd. 12,979.98 12,979.98Contractliabilities
Avatr Technology (Chongqing) Co., Ltd 587,105.03 5,832,549.46Contractliabilities
Dali Wanfu Automobile Sales and Service Co., Ltd 206.06 3,486.06Contractliabilities
Jiangling Holdings Co., Ltd. -
6,854,200.00
| Contract |
liabilities
Pakistan Master Automobile Co., Ltd. -
5,213,676.57Contractliabilities
Chongqing Anfu Automobile Co., Ltd. -
149,000.00Contractliabilities
Yunnan Wanxing Auto Sales Service Co., Ltd.
-
6,816.00Contractliabilities
Guangxi Wanyou Auto Sales and Service Co., Ltd. -
302.4
Subtotal 519,278,484.76 601,249,170.01Otherpayables
Nanjing Chelai Travel Technology Co., Ltd 17,201.61 -
Otherpayables
Deepal Automobile Technology Co., Ltd -
113,039,584.99
payables
China Changan Automobile Group Co., Ltd. 1,000.00 1,000.00
Items Related parties Ending balance Beginning balanceOtherpayables
Anhui Wanyou Automobile Sales Service Co., Ltd. 735,600.00 1,475,600.00Otherpayables
Chengdu Huachuan Electric Equipment Co., Ltd. 593.85 173,206.40Otherpayables
Chengdu Wanyou Auto Sales and Service co.,Ltd. 190,000.00 790,000.00Otherpayables
Chengdu Wanyou Auto Trade Service Co., Ltd. 2,843,347.45 3,607,415.80
payables
| Other | Chengdu Wanyou Xiangyu Auto Sales and Service |
Co., Ltd.
6,069,300.00 7,732,620.00Otherpayables
Guizhou Wanyou Auto Sales and Service Co., Ltd. 1,119,300.00 4,007,517.20Otherpayables
Harbin Dongan Auto Engine Co., Ltd. 80,465.04 106,468.60Otherpayables
Co., Ltd.
205,660.00 203,155.92Otherpayables
Jiangsu Wanyou Automobile Sales Service Co., Ltd. 4,609,714.52 4,970,000.00
Harbin Dongan Automotive Engine ManufacturingOther
payables
Luzhou Wanyou Automobile Service Co., Ltd. 121,800.00 129,140.00Otherpayables
South Tianhe Chassis System Co., Ltd. 442,571.34 293,868.55Otherpayables
South Inter Air-conditioner Co.,Ltd. 57,987.25 1,567,432.39Otherpayables
Sichuan Jian'an Industrial Co.,Ltd. 7,726,533.47 2,101,400.49Otherpayables
Sichuan Ningjiang Shanchuan Machinery Co, Ltd. 57,554.22 -
Other
| Other |
payables
Ya'an Wanyou Auto Sales and Service Co., Ltd. 1,863,900.00 2,063,900.00Otherpayables
Yunnan Wanyou Auto Sales and Service Co., Ltd. 5,277,100.00 10,068,122.20Otherpayables
China Changan Automobile Group Tianjin Sales Co.,
Ltd.
4,329,000.00 3,729,000.00Otherpayables
Chongqing Tsingshan Industrial Co., Ltd. 20,421,377.38 7,868,918.85Otherpayables
Chongqing Wanyou Ducheng Auto Sales Service Co.,
Ltd.
572,718.72 1,096,014.24
payables
| Other | Chongqing Wanyou Xingjian Auto Sales & Service |
Co., Ltd.
400,880.00 400,000.00Otherpayables
Chongqing Wanyou Economic Development Co., Ltd. 7,013,538.00 7,660,147.80Otherpayables
Service Co., Ltd.
2,150,000.00 -
| Chongqing Wanyou Zunda Automobile Sales & |
Otherpayables
Chongqing Changan Minsheng Logistics Co. Ltd. 702,549,204.53 392,075,910.69
Otherpayables
Chengdu Wanyou Filter Co., Ltd. 1,257,067.02 1,266,573.71
payables
| Other | Hubei Huazhong Marelli Automobile Lighting Co., |
Ltd.
16,218.04 -
Otherpayables
Chongqing Jianshe Automobile Air-conditioner Co.,Ltd.
72,772.00 -
Items Related parties Ending balance Beginning balanceOtherpayables
Chongqing Construction Tongda Industrial Co., Ltd. 43,645.91 33,787.00Otherpayables
Chongqing Nexteer Steering System Co.,Ltd. 2,580,821.97 -
Otherpayables
Chongqing Shangfang Automobile Fittings Co., Ltd. 560,706.00 1,113,793.54
Otherpayables
Chongqing Yihong Engineering Plastic Products Co.,Ltd.
81.06
-
| Other |
payables
Chongqing Changan industry (Group) Co., Ltd 791,056.30 2,960,859.38
Otherpayables
Chongqing Changan Property Management Co., Ltd. 5,865,755.49 1,935,184.57
Otherpayables
Chongqing Changan Construction Co., Ltd. 26,375,786.10 26,391,448.08
Otherpayables
United Automotive Electronics (Chongqing) Co., Ltd 33,324.83 3,439,700.00
Otherpayables
GKN HUAYU Driveline Systems (Chongqing) Co.,Ltd.
308,222.97 -
| Other |
payables
Nanjing Lingxing Technology Co., Ltd 7,275.64 -
Otherpayables
Ald Fortune Auto Leasing & Renting (Shanghai) Co.,Ltd.
7,500,000.00 -
Otherpayables
Equipment Co., Ltd.
1,913,989.51 917,118.52
Otherpayables
| Changan Reis (Chongqing) Robotic Intelligent |
| Chongqing Dajiang Guoli Precision Machinery |
Manufacturing Co., Ltd.
141,250.00 -
Otherpayables
| Chongqing Lingchuan Auto Parts Manufacturing |
Technology Co., Ltd.
26,668.00 219,898.32
payables
| Other | Chongqing Changan Intelligent Industrial Technology |
Service Co., Ltd
1,467,227.64 4,404,413.09
Otherpayables
Chongqing Changrong Machinery Co., Ltd. 283,545.60 -
Otherpayables
China Ordnance News 17,100.00 -
Otherpayables
Environmental Protection Research Institute Co., Ltd.
8,269,753.03 -
| Southwest Ordnance Industry Chongqing |
Otherpayables
Dali Wanfu Automobile Sales and Service Co., Ltd 26,793.40 -
| Other |
payables
Chongqing Dajiang Tongyang Plastics Co., Ltd. -
1,423,800.00
Otherpayables
Hunan Tianyan Machinery Co., Ltd. -
1,235,044.80
Otherpayables
Chongqing Anfu Automobile Co., Ltd. -
200,000.00
Otherpayables
Chongqing Dajiang Xinda Vehicles Shares Co., Ltd. -
150,000.00
Otherpayables
Yunnan Xiyi Industries Co., Ltd. -
148,030.00
| Other |
payables
Co., Ltd.
-
| China Changan Automobile Group Hefei Investment |
106,890.47
Otherpayables
Jiangling Holdings Co., Ltd. -
47,703.40
Items Related parties Ending balance Beginning balanceOtherpayables
Hubei Xiaogan Huazhong Automobile Light Co., Ltd. -
27,828.32Otherpayables
Chengdu Wanyou Trading Co., Ltd. -
11,391.20Otherpayables
Dajiang Yapp Automotive Systems Co., Ltd. -
10,855.59Otherpayables
Panzhihua Wanyou Auto Sales & Service Co., Ltd. -
4,550.30
payables
Chongqing Changan Kuayue Vehicle Co., Ltd 43,187,810.00 -
| Other |
Subtotal 869,603,217.89
611,209,294.41
XIII. Share-based payments
1. General information
√ Applicable □ Non-applicable
Unit: share currency: RMB
company in the current period
0.00
| Total amount of equity instruments granted by the | |
| Total amount of equity instruments exercised by the |
company in the current period
44,275,061.00
| Total amount of various equity instruments expired |
in the current period of the company
2,476,422.00
| The scope of exercise price of stock options issued by the company at the end of the period and the |
remaining term of the contract
No
| The scope of exercise price of other equity instruments issued at the end of the period and the |
remaining term of the contract
Restricted shares were granted for the first time in February 2021, the grantprice was 6.66 yuan/share (before adjustment), and the remaining term is 32months;Restricted shares were reserved for grant in November 2021, the grant price was
9.93 yuan/share (before adjustment), and the remaining term is 42 months
2. Equity settled share based payment
√ Applicable □ Non-applicable
In RMB Yuan
instruments on the grant date
Market price method model calculation
| Determination method of fair value of equity | |
| Basis for determining the number of exercisable |
equity instruments
Based on the best estimate of the number of exercisable equity instruments, therelevant expenses and costs are calculated according to the fair value of theequity instruments on the grant date
current estimate and the previous estimate
No
| Reasons for significant differences between the | |
| Cumulative amount of equity settled share based |
payment included in capital reserve
550,321,460.92
Total recognized expenses of
| equity settled share |
based payment in the current period
187,899,000.00
3. Cash settled share based payment
□ Applicable √ Not applicable
4. Modification and termination of share based payment
□ Applicable √ Not applicable
5. Other
□ Applicable √ Not applicable
XIV. Commitments and Contingencies
1. Significant commitments
Contracted, but not provided for
Items 2023.6.30 2022.12.31Capital commitments 10,900,775,809.89 11,675,534,857.57Investment commitments 714,150,001.00 1,782,940,000.00
Total 11,614,925,810.89 13,458,474,857.57
2. Contingencies
By June 30, 2023, no material contingencies needed to be disclosed.
XV. Events after the balance sheet dateNone
XVI. Other important events
1. Segment information
The Group identifies operating segments based on the internal organization structure, managerial requirements and internal reportingsystem, and identifies reportable segments based on operating segments and discloses segment information by operating segment.
An operating segment is a component of the Group that meets all the following conditions:
(1) it engages in business activities from which it may earn revenues and incur expenses;
(2) its operating results are regularly reviewed by the Company’s management to make decisions about resources to be allocated to
the segment and assess its performance; and
(3) the Group can obtain relevant accounting information such as its financial position, operating results and cash flows.
If two or more segments have similar economic characteristics and meet certain conditions, they can be aggregated into a singleoperating segment.
The revenue and profit of the Group mainly consist of the automobile manufacturing and domestic sales. The Group’s principalassets are in China. The operating performance of the Group has been evaluated as a whole by the management. So the segmentreport has not been prepared for this year.
2. Lease arrangements
(1) As lessor
The Group leases buildings, machinery and equipment and vehicles for a lease term of 1-15 years, forming an operating lease.Details for investment property and operating leased fixed assets refer to note VII 13 and 14.
The income related to operating leases are listed as follows:
In RMB YuanReport period Amount
| Leasehold Income | 233,112,047.46 |
According to the lease contract signed with the lessee, the minimum lease collection amount of irrevocable lease is as follows:
In RMB Yuan Ending balance
Less than 1 year (including 1 year) 472,029,012.94
1 to 2 years (including 2 years) 332,018,203.12
| 2 to 3 years (including 3 years) | 192,256,798.72 |
3 to 4 years (including 3 years) 78,908,912.59
4 to 5 years (including 3 years) 20,943,996.69
Over 5 years 47,276,700.94
Total 1,143,433,625.00
(2) As lessee
In RMB Yuan
Report period AmountInterest expense of lease liabilities 7,350,104.73
Short term lease expenses with simplified treatment included in current profit and loss 39,773,086.74
Lease expense of low value assets with simplified treatment included in current profit and loss 123,052.14
Total cash outflow related to leasing 67,798,755.00
The leased assets leased by the Group include buildings and other equipment used in the operation activities. The lease term ofhouses and buildings is usually 1-5 years, and that of other equipment is usually 2-5 years.XVII. Notes to the main items of the parent company’s financial statements
1. Account Receivables
(1) Aging analysis of accounts receivable is as follow:
In RMB YuanAccount receivable age Ending balance Beginning balanceLess than 1 year (including 1 year) 8,025,560,564.12 4,445,068,297.55
1 to 2 years (including 2 years) 316,966,984.01
997,705,973.80
| 2 to 3 years (including 3 years) | 587,836,483.56 | - |
Over 3 years 182,543,593.50
213,599,440.84
Total 9,112,907,625.19 5,656,373,712.19
Minus：Provision(78,268,533.42) (117,868,890.37)Net value of accounts receivable 9,034,639,091.77 5,538,504,821.82
(2) Movements of provision for accounts receivable are as follows:
In RMB YuanItems Beginning balance
Report period Amount
Ending balanceAccrual Reversal Write-off2023.6.30 117,868,890.37 1,000,356.95 38,600,000.00 78,268,533.422022.12.31 102,237,112.42 17,018,007.91 1,386,229.96 117,868,890.37
(3) Disclosure of accounts receivable
In RMB YuanItems
Ending balanceBook balance Provision for bad-debts
Book valueAmount（%）Amount（%）Individual assessment of creditexpected loss and provision for baddebts
8,780,451,896.59 96.35
37,652,846.20
0.43
8,742,799,050.39Assess bad debt provision forexpected credit expected lossaccording to credit risk characteristicscombination
332,455,728.60
3.65
40,615,687.22
12.22
291,840,041.38
Total 9,112,907,625.19 100.00
78,268,533.42
0.86
9,034,639,091.77
Items
Beginning balanceBook balance Provision for bad-debts
Book valueAmount（%）Amount（%）Individual assessment of creditexpected loss and provision for baddebts
5,137,221,177.03
90.82
76,252,846.20
1.48
5,060,968,330.83
Assess bad debt provision forexpected credit expected lossaccording to credit riskcharacteristics combination
519,152,535.16
9.18
41,616,044.17
8.02
477,536,490.99
Total 5,656,373,712.19
100.00
117,868,890.37
2.08
5,538,504,821.82
(4) Accounts receivable of the top five ending balances collected by the debtor
As of June 30, 2023, the top five accounts receivable amounted to RMB 7003710837.32, accounting for 76.85% of the total accountsreceivable (December 31, 2022: RMB 3044844058.24, accounting for 53.83% of the total accounts receivable).
2. Other receivables
In RMB YuanItems Ending balance Beginning balance
| Dividends receivable | 180,656,814.04 |
Other receivables 106,460,223.26 859,026,748.64Total 287,117,037.30 859,026,748.64
(1) Dividends receivable
In RMB YuanItems ( or invested units ) Ending balance Beginning balanceChina South Industry Group Finance Co., Ltd. 180,656,814.04Total 180,656,814.04
(2) Other receivables
1) Aging analysis of other receivables is as follows:
In RMB YuanAccount receivable age Ending balance Beginning balanceWithin 1 year 101,340,518.06 842,446,117.27
1 to 2 years 3,795,520.37
7,116,112.63
| 2 to 3 years | 100,000.00 | 1,226,346.51 |
Over 3 years 8,337,264.46
15,300,830.26
Total 113,573,302.89 866,089,406.67
Minus:Provision (7,113,079.63) (7,062,658.03)Net value of other receivables 106,460,223.26 859,026,748.64
2) Analysis of other receivables by nature is as follows:
In RMB YuanItems Ending balance Beginning balancePetty cash 52,736,507.27 62,920,147.86Prepaid equity investment 35,000,000.00 399,486,432.52
| Internal transactions | 5,815,029.62 | 32,946,539.47 |
Energy-saving and new energy subsidy 338,394,118.63Others 12,908,686.37 25,279,510.16Total 106,460,223.26 859,026,748.64
3) The changes in the provision for bad debts for other receivables based on the 12-month expected credit loss and the
expected credit loss for the entire duration are as follows:
In RMB YuanItems Beginning balance
Report period Amount
Ending balanceAccrual Reversal2023.6.30 7,062,658.03 74,667.40 24,245.80 7,113,079.63
| 2022.12.31 | 7,062,658.03 | 74,667.40 | 24,245.80 | 7,113,079.63 |
4) Top five debtors of other receivables are as follows:
In RMB YuanItems Nature of payment Ending balance Aging
Proportion of totalother receivables (%)
Ending
balance of
provisionFirst place Investment funds 35,000,000.00 Within 1 year 30.82
| Second place | Internal transactions | 4,628,877.79 | Within 1 year | 4.08 |
Third place Margin 4,058,265.28 Within 1 year 3.57Fourth place Margin 3,200,000.00 Within 1 year
Fifth place Margin 2,000,000.00 Over 5 years 1.76Total 48,887,143.07 43.05
5) Other receivables derecognized due to transfer of financial assets
As of June 30, 2023, the Group had no other receivables derecognized as financial asset transfers (December 31, 2022: None).
3. Long-term equity investment
（1） Investment in subsidiaries
In RMB YuanInvestee Opening Balance
Changes during report period
Ending Balance
Ending Balance of
provisionAddition
reduceinvestment
Provision for impairmentNanjing Changan Automobile Co., Ltd. 422,533,259.00
422,533,259.00
Chongqing Changan International AutomobileSales Co., Ltd.
203,068,581.00
203,068,581.00
Chongqing Changan Automobile SupportingService Co., Ltd.
29,700,000.00
29,700,000.00
Chongqing Changan Special Automobile Co.,Ltd.
2,500,000.00
2,500,000.00
Chongqing Changan Europe Design CenterCo., Ltd.
155,469,913.50
155,469,913.50
Chongqing Changan New Energy AutomobileCo. Ltd.
49,194,195.00Changan United Kingdom R&D Center Co.,Ltd.
250,093,850.95
250,093,850.95
Chongqing Changan Connected CarTechnology Co., Ltd.
88,500,000.00
88,500,000.00
Beijing Changan R&D Center Co., Ltd. 1,000,000.00
1,000,000.00
| Changan United States R&D Center Co., Ltd. | 10,243,460.00 |
| 10,243,460.00 |
Changan Japan Designing Center Co.,Ltd. 1,396,370.15
1,396,370.15
Hefei Changan Automobile Co.,Ltd. 1,535,367,765.23
1,535,367,765.23
Changan Automobile Russia Co., Ltd. 251,242,589.15
251,242,589.15
Chongqing Changan Lingyao Automobile Co.,Ltd.
594,949,059.30
594,949,059.30
Changan Automobile Investment (Shenzhen)Co., Ltd
237,889,511.00
237,889,511.00
Chongqing Anyi Automobile Technical ServiceCo., Ltd.
2,000,000.00
2,000,000.00
Guangzhou Changan New Energy AutomobileCo. Ltd.
4,000,000.00
4,000,000.00
Xiamen Changan New Energy Automobile Co.Ltd.
2,000,000.00
2,000,000.00
Chongqing Chehemei Technology Co., Ltd. 10,000,000.00
10,000,000.00
Nanjing Changan New Energy AutomobileSales & Service Co., Ltd.
50,000,000.00
50,000,000.00
Chongqing Changan Automobile SoftwareTechnology Co., Ltd.
99,000,000.00
99,000,000.00
Chongqing Changan Kaicheng AutomobileTechnology Co., Ltd.
977,793,971.55
977,793,971.55
| Chongqing Xingzhi Technology Co., Ltd |
Chongqing Changan Technology Co., Ltd 90,000,000.00
90,000,000.00
Deepal Automobile Technology Co., Ltd
1,655,606,604.29
1,655,606,604.29
Total 5,018,748,330.83 1,655,606,604.29
6,674,354,935.12 49,194,195.00
（2） Investment in associates and joint ventures
In RMB YuanInvestee Opening Balance
Changes during report period
Ending BalanceAddition
Investment income/loss under equity
method
Others
1. Joint ventures
Changan Ford Automobile Co., Ltd. 2,934,876,043.99
522,860,908.17
3,457,736,952.16
Changan Mazda Automobile Co.,Ltd.
Changan Mazda Engine Co., Ltd.
Nanchang Jiangling Investment Co.,
Ltd.
Subtotal 7,267,680,136.01 862,959,808.34 (423,000,000.00) 7,707,639,944.35
2. Associates
Nanchang Jiangling Investment Co.,Chongqing Changan Kuayue
Automobile Co., Ltd.
209,768,936.34
| Chongqing Changan Kuayue |
5,402,511.72
215,171,448.06
| Chongqing Changan Kuayue Vehicle |
Beijing Fang'an Crescent Taxi Co.,Ltd
Changan Automobile Financing Co.,Ltd.
2,778,898,410.33
Marketing Co., Ltd
172,182,412.71
2,951,080,823.04
Avatr Technology (Chongqing) Co.,Ltd.
1,228,287,241.13
(716,583,868.90) 511,703,372.23
Nanjing Chelai Travel TechnologyCo., Ltd.
624,773.31
(92,277.85) 532,495.46
| Coresing Semiconductor Technology |
Co., Ltd.
25,452,425.26
71,917.19
25,524,342.45
| Nanjing Leading Equity Investment |
Management Co., Ltd.
1,112,210.69
(5,089.84) 1,107,120.85
| Nanjing Leading Equity Investment |
Partnership (Limited Partnership)
2,570,421,464.70
(51,784.35) 2,570,369,680.35
| Zhongqi Chuangzhi Technology Co., |
Ltd.
168,492,790.78
(6,754,636.46) 161,738,154.32
Chongqing Changxin Zhiqi PrivateEquity Investment Fund Partnership(Limited Partnership)
170,440,054.08
242,103.89
170,682,157.97
Anhe Chongqing DingfengAutomobile Contract Private EquityInvestment Fund
61,568,706.08
4.26
61,568,710.34
Chongqing Changan InnovationPrivate Equity Investment FundPartnership Enterprise (LimitedPartnership)
1,000,844.59
446.93
1,001,291.52
| Deepal Automobile Technology Co., |
Ltd
369,885,426.05
(45,900,263.46) (323,985,162.59)
| Chongqing Changxian Intelligent |
Technology Co., Ltd
102,000,000.00 66,933.68
102,066,933.68
| Jiangling Holding Co., Ltd. |
Subtotal 7,585,953,283.34 102,000,000.00 (591,421,590.48) (323,985,162.59) 6,772,546,530.27Total 12,366,388,785.42 102,000,000.00 (141,552,078.57) (323,985,162.59) 12,002,851,544.26
4. Operating revenue and cost
In RMB YuanItems
| Report period | Same period of last year |
Revenue Cost Revenue CostMain business 51,607,236,773.22
44,256,352,201.98
47,015,290,808.29
39,177,855,123.67
Other business 2,769,138,423.99
1,060,042,185.33
3,275,009,762.83
1,737,129,368.96
Total 54,376,375,197.21
45,316,394,387.31
50,290,300,571.12
40,914,984,492.63
5. Investment income
In RMB Yuan
Items Current amount Prior-period amountLong-term equity investment lossesaccounted for by the cost method
544,650,000.00
594,000,000.00
Long-term equity investment lossesaccounted for by the equity method
(141,552,078.57) (92,372,274.55)Investment income from disposal of long-term equity investments 1.00
The investment income of financial asset held for trading during itsholding period
1,406,842.07
2,690,400.00
Dividend income from remaining investments inother equity instruments
180,656,814.04
144,222,128.67
Gains from the remeasurement of the remaining equity at fair value afterthe loss of control
337,513,868.21
Total 585,161,578.54 986,054,122.33
Long-term equity investment income under equity method
In RMB YuanInvestee Current amount Prior-period amount
Changan Ford Automobile Co., Ltd.
| Changan Ford Automobile Co., Ltd. | 399,619,898.50 | 522,860,908.17 |
Changan Mazda Automobile Co., Ltd. (100,026,283.01) 236,050,510.98
Changan Mazda Engine Co., Ltd. 4,107,980.55
15,784,275.65
Nanchang Jiangling Investment Co., Ltd. 146,167,915.87
88,264,113.54
Jiangling Holding Co., Ltd. (41,202,595.77)Chongqing Changan Kuayue Automobile Co., Ltd. 5,402,511.72
(20,594,524.55)
| Changan Automobile Financing Co., Ltd. | 172,182,412.71 | 152,764,747.43 |
Avatr Technology (Chongqing) Co., Ltd. (716,583,868.90) (82,620,701.16)Hainan Anxinxing Information Technology Co., Ltd. (368,900.00)Nanjing Chelai Travel Technology Co., Ltd. (92,277.85) (97,213.22)Coresing Semiconductor Technology Co., Ltd. 71,917.19
(552,714.09)Nanjing Leading Equity Investment Management Co., Ltd. (5,089.84) (9,266.61)
Nanjing Leading Equity Investment Partnership (Limited
Partnership)
(51,784.35) (42,899.72)Zhongqi Chuangzhi Technology Co., Ltd. (6,754,636.46) (9,012,542.48)Chongqing Changxin Zhiqi Private Equity Investment FundPartnership (Limited Partnership)
242,103.89
Nanjing Leading Equity Investment Partnership (Limited
(5,754.39)Anhe Chongqing Dingfeng Automobile Contract PrivateEquity Investment Fund
4.26
Chongqing Changan Innovation Private Equity Investment
446.93
Chongqing Changxian Intelligent Technology Co., Ltd 66,933.68
| Fund Partnership Enterprise (Limited Partnership) | |
Deepal Automobile Technology Co., Ltd (45,900,263.46) (953,589,718.33)Total (141,552,078.57) (92,372,274.55)
XVIII. Additional information
1. Non-recurring profit and loss statement of current period
√ Applicable □ Non-applicable
In RMB Yuan
| Items | Amount | explanation |
Profit and loss of non-current assets disposition 366,667,730.28Government subsidies counted in current profit and loss (except thegovernment subsidies which are closely related with business events,and given certain amount according to national standards)
856,008,089.78
Interest on late payment of funds charged to non-financial enterprises 17,949,915.40In addition to the effective hedging business related to the company'snormal business operations, the fair value changes in gains and lossesarising from holding trading financial assets
(23,334,661.15)
Income from business combinations not under common control 5,021,482,128.74
| Other non-operating income and expenses other than the above items | 79,796,614.79 |
Minus:Income tax impact 171,307,435.24
Minority shareholders' equity impact (after tax) 3,341,059.80Total 6,143,921,322.80 --
If the company identifies non-recurring profit and loss defined by Information Disclosure by Companies Offering Securities to thePublic No. 1--non-recurring profit and loss and non-recurring profit and loss defined by Information Disclosure by Companies OfferingSecurities to the Public No. 1--non-recurring profit and loss as recurring profit and loss, explain the reasons.
2. Return on equity and earnings per share
Profit in report period
Weighted average
return on equity
（%）
Earnings per shareBasic EPS(yuan/share) Diluted EPS(yuan/share)
stockholders
11.70% 0.78 0.76
| Net profit belonging to the Company’s common |
| Net profit belonging to the Company’s common |
stockholders after deducting non-recurring profitand loss
2.31% 0.15 0.15
The group's presentation of return on net assets and earnings per share is in accordance with the preparation rules for informationdisclosure of companies offering securities to the public No. 9 - Calculation and disclosure of return on net assets and earnings pershare (revised in 2010) of the CSRC.
3. Accounting data difference by domestic and foreign accounting standards
(1) Net profit and net asset differences from financial statements by international accounting standards and PRC GAAP
□ Applicable √ Not applicable
(2) Net profit and net asset differences from financial statements by overseas accounting standards and PRC GAAP
□ Applicable √ Not applicable
(3) Description on accounting data differences by domestic and foreign accounting standards. If auditing institutions abroad
have adjusted the data differences, identify the name of the auditing institution abroad.None
4. Others
□ Applicable √ Not applicable