Share’s name:
| Share’s name: | Jiangling Motors | Share’s code: | 000550 | No.: | 2018-046 |
| Jiangling B | 200550 |
Jiangling Motors Corporation, Ltd.
2018 Third Quarter Report
§1 Important Note1.1 The Board of Directors and its members, the Supervisory Board and itsmembers, and the senior executives are jointly and severally liable for thetruthfulness, accuracy and completeness of the information disclosed in theReport, and confirm that the information disclosed herein does not contain anyfalse statement, misrepresentation or major omission.
1.2 All Directors were present at the Board meeting in person.
1.3 Chairman Qiu Tiangao, CFO Li Weihua and Chief of Finance Department,Xie Wanzhao, confirm that the financial statements in this Quarterly Report aretruthful, accurate and complete.
1.4 All financial data in this Quarterly Report are prepared under International
Financial Reporting Standards (‘IFRS’) unless otherwise specified.
§2 Brief Introduction2.1 Main accounting data and financial indicators
Unit: RMB’000
| At the end of reporting period | At the end of the previous year | Change (%) | ||||
| Total Assets | 21,474,796 | 26,383,761 | -18.61 | |||
| Shareholder’s equity Attributable to the Equity Holders of the Company | 10,514,894 | 12,572,402 | -16.37 | |||
| Reporting period (2018 third quarter) | YoY Change (%) | Beginning of year to end of reporting period | YoY Change (%) | |||
| Revenue | 5,902,627 | -12.80 | 20,190,124 | -10.01 | ||
| Profit Attributable to the Equity Holders of the Company | -100,164 | -210.52 | 218,787 | -66.00 | ||
| Net Cash Generated From Operating Activities | - | - | -2,288,872 | -65.24 | ||
| Basic Earnings Per Share (RMB) | -0.12 | -210.52 | 0.25 | -66.00 | ||
| Diluted Earnings Per Share (RMB) | -0.12 | -210.52 | 0.25 | -66.00 | ||
| Weighted Average Return on Net Asset Ratio (%) | -0.89 | Down 1.63 percentage point | 1.94% | Down 3.16 percentage points | ||
2.2 Total number of shareholders and top ten shareholders at the end ofreporting period
2.2.1 Total number of shareholders and top ten shareholders
| Total shareholders | JMC had 32,153 shareholders as of September 30, 2018, including 26,714 A-share holders and 5,439 B-share holders. | ||||
| Top ten shareholders | |||||
| Shareholder Name | Shareholder Type | Shareholding Percentage (%) | Shares as of September 30, 2017 | Shares with Trading Restriction | Shares due to mortgage or frozen |
| Jiangling Motor Holding Co., Ltd. | State-owned legal person | 41.03 | 354,176,000 | 0 | 0 |
| Ford Motor Company | Foreign legal person | 32.00 | 276,228,394 | 0 | 0 |
| China Securities Corporation Limited | Other | 2.72 | 23,458,066 | 0 | 0 |
| Shanghai Gao Yi Asset Management | Other | 1.74 | 15,000,000 | 0 | 0 |
Partnership (L.P.)
| Partnership (L.P.) | ||||||
| Shanghai Automotive Co., Ltd. | State-owned Legal person | 1.51 | 13,019,610 | 0 | 0 | |
| Central Huijin Investment Ltd. | State-owned Legal person | 0.83 | 7,186,600 | 0 | 0 | |
| JPMBLSA RE FTIF TEMPLETON CHINA FUND GTI 5497 | Foreign legal person | 0.68 | 5,848,450 | 0 | 0 | |
| GAOLING FUND,L.P. | Foreign legal person | 0.63 | 5,453,086 | 0 | 0 | |
| INVESCO FUNDS SICAV | Foreign legal person | 0.58 | 5,035,746 | 0 | 0 | |
| TEMPLETON DRAGON FUND,INC. | Foreign legal person | 0.56 | 4,836,708 | 0 | 0 | |
| Top ten shareholders holding unlimited tradable shares | ||||||
| Shareholder Name | Shares without Trading Restriction | Share Type | ||||
| Jiangling Motor Holding Co., Ltd. | 354,176,000 | A share | ||||
| Ford Motor Company | 276,228,394 | B share | ||||
| China Securities Corporation Limited | 23,458,066 | A share | ||||
| Shanghai Gao Yi Asset Management Partnership (L.P.) | 15,000,000 | A share | ||||
| Shanghai Automotive Co., Ltd. | 13,019,610 | A share | ||||
| Central Huijin Investment Ltd. | 7,186,600 | A share | ||||
| JPMBLSA RE FTIF TEMPLETON CHINA FUND GTI 5497 | 5,848,450 | B share | ||||
| GAOLING FUND,L.P. | 5,453,086 | B share | ||||
| INVESCO FUNDS SICAV | 5,035,746 | B share | ||||
| TEMPLETON DRAGON FUND,INC. | 4,836,708 | B share | ||||
| Notes on association among above-mentioned shareholders | None. | |||||
Stock buy-back of top ten shareholders or top ten shareholders holdingunlimited tradable shares in the reporting period
□Yes □√No
There was no Stock buy-back of top ten shareholders or top ten shareholdersholding unlimited tradable shares in the reporting period.
2.2.2 Total number of shareholders holding preferred shares and top tenshareholders holding preferred shares
□Applicable □√Not Applicable
§3 Major Events3.1 Causes and explanations of major changes of financial indicatorscompared with those of previous reporting period
□√Applicable □Not Applicable
In the first three quarters of 2018, JMC sold 204,021 vehicles in total, down7.85% compared with the same period last year; including 73,673 JMC-brandtrucks, 51,959 JMC-brand pickups, 10,786 SUVs, 31,779 Ford-brandcommercial vehicles, 29,022 JMC-brand light buses and 6,802 CKDs.Revenue and net profit during the reporting period were RMB 20,190 millionand RMB 219 million, decrease 10% and 66% respectively compared with thesame period last year.
Cash and cash equivalents at the end of the reporting period decreased byRMB 5,287 million, or 47.47% from the end of 2017, primarily reflecting thepayment of special dividend for the middle of 2017 and the cash generatedfrom operating activities decrease.
Distribution costs in the first three quarters of 2018 decreased by RMB 1,147million, down 60.88% from the same period last year, due to the effect ofimplementing IFRS 15 -- Revenue from Contracts with Customers sinceJanuary 1, 2018, and this affects the presentation between income statementaccounts and does not actually affect the net profit.
Profit before income tax in the first three quarters of 2018 decreased by RMB425 million, down 66.00% from the same period last year, primarily reflectingthe volume decrease & change of sales structure and intensive investment onnew product and technology, though partially offset by cost reduction.
Income tax expense in the first three quarters of 2018 decreased by RMB 78million, down 162.50% from the same period last year, primarily reflecting thechanges in tax policy and decrease of the profit.
Net cash generated from operating activities in the first three quarters of 2018decreased by RMB 904 million, down 65.24% from the same period last year,primarily reflecting the decrease of cash generated by the decrease of salesvolume.
Net cash used in investing activities in the first three quarters of 2018decreased by RMB 232 million, down 47.81% from the same period last year,primarily reflecting cash payment increase on purchase and construction offixes assets.
Net cash used in financing activities in the first three quarters of 2018decreased by RMB 1,747 million, down 327.57% from the same period lastyear, primarily reflecting payment of special dividend for the middle of 2017.
3.2 Analysis of major events, their impacts and resolutions
□Applicable □√Not Applicable
3.3 Commitments of the Company actual controlling party, the shareholders,the related parties, the acquirer, or the Company
□Applicable □√Not Applicable
3.4 Forecast on 2018 operating performanceWarning and explanations as to the situation that accumulated net profit duringthe period from year beginning to the end of next reporting period may benegative or, compared with the same period last year, may have a substantialchange
□Applicable □√Not Applicable
3.5 Securities investment
□Applicable □√Not Applicable
There was no securities investment during the reporting period.
3.6 Entrust asset management
□Applicable □√Not Applicable
There was no entrust asset management during the reporting period.
3.7 Securities derivates investment
□Applicable □√Not Applicable
There was no securities derivates investment during the reporting period.
3.8 External research and media interviews with the Company during thereporting period
□Applicable □√Not Applicable
There was no external research or media interview with the Company duringthe reporting period.
3.9. Outside guarantee in breach of laws & regulations
□Applicable □√Not Applicable
There was no outside guarantee in breach of laws & regulations during thereporting period.
3.10 Non-operating funding in the Company occupied by controllingshareholder and its affiliates
□Applicable □√Not Applicable
§4 Financial Statements
Jiangling Motors Corporation, Ltd.Consolidated Balance Sheet
(All amounts in RMB thousands unless otherwise stated)
| 30 September 2018* | 31 December 2017 | |||
| Assets | ||||
| Non-current assets | ||||
| Property, plant and equipment | 6,681,717 | 6,714,088 | ||
| Lease prepayment | 605,154 | 616,834 | ||
| Intangible assets | 212,938 | 197,860 | ||
| Investments accounted for using the equity method | 41,135 | 37,874 | ||
| Other non-current assets | - | 478 | ||
| Deferred income tax assets | 722,343 | 690,253 | ||
| Total non-current assets | 8,263,287 | 8,257,387 | ||
| Current assets | ||||
| Financial assets at fair value through profit or loss | 11,324 | - | ||
| Inventories | 2,748,979 | 2,339,304 | ||
| Trade and other receivables and prepayments | 4,600,289 | 4,555,934 | ||
| Cash and cash equivalents | 5,850,917 | 11,137,723 | ||
| Assets classified as held for sale | - | 93,413 | ||
| Total current assets | 13,211,509 | 18,126,374 | ||
| Total assets | 21,474,796 | 26,383,761 | ||
| Equity | ||||
| Share capital | 863,214 | 863,214 | ||
| Share premium | 816,609 | 816,609 | ||
| Other reserves | 450,914 | 450,914 | ||
| Retained earnings | 8,384,157 | 10,441,665 | ||
| Total equity | 10,514,894 | 12,572,402 | ||
| 30 September 2018* | 31 December 2017 | |||
| Liabilities | ||||
| Non-current liabilities | ||||
| Borrowings | 3,829 | 3,851 | ||
| Deferred income tax liabilities | 26,224 | 26,736 | ||
| Retirement benefit obligations | 50,935 | 54,764 | ||
| Provisions for warranty and other liabilities | 172,161 | 184,688 | ||
| Other non-current liabilities | 180 | 240 | ||
| Total non-current liabilities | 253,329 | 270,279 | ||
| Current liabilities | ||||
| Financial liabilities at fair value through profit or loss | - | 8,493 | ||
| Trade and other payables | 10,530,393 | 13,222,540 | ||
| Current income tax liabilities | - | 114,906 | ||
| Borrowings | 450 | 428 | ||
| Retirement benefit obligations | 4,420 | 4,420 | ||
| Provisions for warranty and other liabilities | 171,310 | 190,293 | ||
| Total current liabilities | 10,706,573 | 13,541,080 | ||
| Total liabilities | 10,959,902 | 13,811,359 | ||
| Total equity and liabilities | 21,474,796 | 26,383,761 | ||
| * Unaudited financial indexes |
Jiangling Motors Corporation, Ltd.Consolidated Income Statement
(All amounts in RMB thousands unless otherwise stated)
| 2018.7.1- 2018.9.30* | 2017.7.1- 2017.9.30* | 2018.1.1- 2018.9.30* | 2017.1.1- 2017.9.30* | |
| Revenue | 5,902,627 | 6,768,706 | 20,190,124 | 22,435,182 |
| Taxes and surcharges | (151,333) | (190,741) | (520,125) | (735,363) |
| Cost of sales | (5,043,969) | (5,407,643) | (17,321,693) | (17,779,600) |
| Gross profit | 707,325 | 1,170,322 | 2,348,306 | 3,920,219 |
| Distribution expenses | (284,296) | (613,872) | (737,230) | (1,884,349) |
| Administrative expenses | (617,428) | (583,351) | (1,756,876) | (1,777,017) |
| Impairment charge of non-current assets | - | - | (3,607) | (3,347) |
| Other income | (7,877) | 42,621 | 187,483 | 246,205 |
| Operating profit | (202,276) | 15,720 | 38,076 | 501,711 |
| Finance income | 45,499 | 60,293 | 152,153 | 188,196 |
| Finance expenses | (1,349) | (1,897) | (4,611) | (3,900) |
| Finance income -net | 44,150 | 58,396 | 147,542 | 184,296 |
| Share of profit of investments accounted for using the equity method | 650 | 1,931 | 3,261 | 5,378 |
| Profit before income tax | (157,476) | 76,047 | 188,879 | 691,385 |
| Income tax expense | 57,312 | 14,581 | 29,908 | (47,854) |
| Profit for the period | (100,164) | 90,628 | 218,787 | 643,531 |
| Profit attributable to: | ||||
| Owners of the Company | (100,164) | 90,628 | 218,787 | 643,531 |
| Total comprehensive income for the period | (100,164) | 90,628 | 218,787 | 643,531 |
| Total comprehensive income attributable to: | ||||
| Owners of the Company | (100,164) | 90,628 | 218,787 | 643,531 |
| Earnings per share for profit attributable to the shareholders of the Company for the period | ||||
| (expressed in RMB per share) | ||||
| - Basic and diluted | (0.12) | 0.11 | 0.25 | 0.75 |
*: Unaudited financial indexes
Jiangling Motors Corporation, Ltd.Consolidated cash flow statement
(All amounts in RMB thousands unless otherwise stated)
| 2018.1.1-2018.9.30* | 2017.1.1-2017.9.30* | ||
| Cash flows from operating activities | |||
| Cash generated from operations | (2,191,311) | (1,187,899) | |
| Interest paid | (151) | (158) | |
| Income tax paid | (97,410) | (197,091) | |
| Net cash generated from operating activities | (2,288,872) | (1,385,148) | |
| Cash flows from investing activities | |||
| Purchase of financial assets at fair value through profit or loss | (6,703,000) | - | |
| Purchase of property, plant and equipment ("PPE") | (869,822) | (635,675) | |
| Other cash paid relating to investing activities | (15,447) | (5,878) | |
| Proceeds from disposal of PPE | 2,179 | 2,451 | |
| Proceeds from repayment of financial assets at fair value through profit or loss | 6,703,000 | - | |
| Investment income received | 14,195 | - | |
| Interest received | 146,676 | 144,405 | |
| Other cash received from investing activities | 4,169 | 8,908 | |
| Net cash used in investing activities | (718,050) | (485,789) | |
| Cash flows from financing activities | |||
| Repayments of borrowings | (207) | (5,226) | |
| Dividends paid to shareholders of the Company | (2,278,417) | (527,117) | |
| Other cash paid relating to financing activities | (1,260) | (871) | |
| Net cash used in financing activities | (2,279,884) | (533,214) | |
| Net decrease in cash and cash equivalents | (5,286,806) | (2,404,151) | |
| Cash and cash equivalents at beginning of year | 11,137,723 | 11,666,222 | |
| Effects of exchange rate changes | - | - | |
| Cash and cash equivalents at end of period | 5,850,917 | 9,262,071 |
*: Unaudited financial indexes
Board of DirectorsJiangling Motors Corporation, Ltd.October 25, 2018