Chongqing Changan Automobile Company Limited Semi-annual Report 2014
1
Chongqing Changan Automobile Company Limited
Semi-annual Report 2014
August 2014
Chongqing Changan Automobile Company Limited Semi-annual Report 2014
I.Important directory and interpretation
The Board of Directors & Supervisors, the directors, supervisors and senior management of the Company
guarantee that the information contained in the report is free of false records, misguiding statements or
significant omissions, and assume individual and joint liabilities for the truthfulness, accuracy and integrity
of the report.
Other directors attended the board meeting on auditing the report except for the following directors:
Name of the Director Reasons for the absence Name of the consignee
Zhang Baolin On Business
Zhu Huarong On Business
Lian Gang On Business
Reng Qiang On Business
Dong Yang On Business
For the first half of the year, the Company has no plans of cash dividend distributed, no bonus shares and has
no share converted from capital reserve either.
Chairman Mr. Xu Liuping, Chief Accountant Mr. Wang Kun, and the Chief of Accountant department Mr.
Hua Zhanbiao guarantee: the truthfulness and completeness of the financial statements of this semi-annual
report.
The report shall be presented in both Chinese and English, and should there be any conflicting understanding of
the text, the Chinese version shall prevail.
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
Contents
I Important notes, contents and definitions
General introduction to the Company
II
III Accounting data and summary of financial indexes
IV Report by Board of Directors
Important Issues
V
Change in shares and information about
VI shareholders
Information on directors, supervisors, senior
VII executives and staffs
Financial Statements
VIII
IX Document for future reference
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
Definition
Changan Auto., the
meaning Chongqing Changan Automobile Company Limited
Company
South Industries meaning China South Industries Group Corp. Companys actual controller
China Changan, old name: China South Industries Automobile Co., Ltd., a subsidiary company
China Changan meaning
of South Industries
Chongqing Changan Industry(Group) Co., Ltd., old name: Changan Automobile Co., Ltd.,
Changan Industry meaning Changan Automobile (Group) Co., Ltd., a subsidiary company of South Industries, the
controlling shareholder of the Company before December, 2005
Nanjing Changan meaning Nanjing Changan Automobile Co., Ltd., a subsidiary company of the Company
Hebei Changan meaning Hebei Changan Automobile Co., Ltd., a subsidiary company of the Company
Hefei Changan meaning Hefei Changan Automobile Co., Ltd., a subsidiary company of the Company
Changan Bus meaning Baoding Changan Automobile Co., Ltd., a subsidiary company of the Company
International Company meaning Chongqing Changan Automobile International Sales Service Co., Ltd.
CFA meaning Changan Ford Automobile Co.,，a JV of the Company
CMA meaning Changan Mazda Automobile Co.,，a JV of the Company
CFME meaning Changan Ford Mazda Engine Co., a JV of the Company
CAPSA meaning Changan PSA Automobiles Co., Ltd，a JV of the Company
Changan Suzuki meaning Chognqing Changan Suzuki Auto. Co.Ltd., a JV of the Company
Jiangling holding meaning Jiangling Holding Co., a JV of the Company
Hafei Group meaning Harbin Hafei Automobile Industry Group Co., Ltd., a subsidiary company of China Changan
Chongqing Changan Minsheng APLL Logistics Co., Ltd, a subsidiary company of Changan
CMAL meaning
Industry
Financial Co. of CSGC meaning Financial Co. of China South Industries Group Corporation
Zhonghui Futong meaning ZhongHui fortis investment co., LTD., a subsidiary of China Changan
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
II. General Introduction to the Company
（一） Company information
Share referred to as Changan Auto, Changan B Share code 000625、200625
Listed securities exchange Shenzheng securities exchange
The companys legal Chinese
重庆长安汽车股份有限公司
Name
Abbreviations of companys
长安汽车
legal Chinese Name
The companys legal English
Chongqing Changan Automobile Company Limited
Name
The companys legal
Xu Liuping
representative
二、Contacts
representative of securities
The secretary of the board of directors
transaction
Name Wang Kung(Agent)、Li Jun
No.260 Jianxin East Road, Jiangbei District of
Address
Chongqing
Tel. ０２３-６７５９４００８
Fax ０２３-６７８６６０５５
e-mail cazqc@changan.com.cn
III. Others
1. Way of contact
Whether registrations address, offices address and codes as well as website and email of the Company
changed in reporting period or not
□ Applicable √ Not applicable
Registrations address, offices address and codes as well as website and email of the Company have no
change in reporting period. See more details in Annual Report 2013.
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, website for semi-annual report publish appointed
by CSRC and preparation place for semi-annual report have no change in reporting period. See more details
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
in Annual Report 2013.
3. Registration changes of the Company
Whether registration has changed in reporting period or not
□ Applicable √ Not applicable
Date/place for registration of the Company, registration number for enterprise legal license, number of
taxation registration and organization code have no change in reporting period. See more details in
Annual Report 2013.
4. Other relevant information
Whether other relevant information has changed in reporting period or not
□ Applicable √ Not applicable
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
III. Accounting data and summary of financial indexes
一、Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting
error correction or not
√Yes □No
In RMB yuan
Increase/decrease
Same period of last year
y-o-y (%)
Report period
Before After After
adjustment adjustment adjustment
Operating revenue (RMB) 24,206,730,641.95 19,750,954,680.97 20,211,066,593.34 19.77%
Net profit attributable to shareholders of
3,628,092,998.93 1,330,969,826.33 1,230,503,367.66 194.85%
the listed company (RMB)
Net profit attributable to shareholders of
the listed company after deducting 3,562,976,770.99 1,299,521,626.60 1,198,011,079.30 197.41%
non-recurring gains and losses (RMB)
Net cash flow arising from operating
3,541,495,260.91 3,654,385,425.30 3,352,825,523.76 5.63%
activities (RMB)
Basic earnings per share (RMB/Share) 0.78 0.29 0.26 200.00%
Diluted earnings per share (RMB/Share) 0.78 0.29 0.26 200.00%
Weighted average ROE (%) 17.61% 8.23% 7.63% 9.98%
Increase/decrease
Same period of last year
y-o-y (%)
Report period
Total assets (RMB) Before After After
adjustment adjustment adjustment
Net assets attributable to shareholder of
60,527,735,369.45 53,364,694,275.91 54,512,107,747.02 11.04%
the listed company (RMB)
Operating revenue (RMB) 21,566,603,267.31 18,778,354,427.87 18,863,616,684.11 14.33%
Note: In April 2014, the Company acquired 100% shares of Hefei Changan automobile Co from China Changan, the parent company.
Since the both sides of combination are under common control of the same parent company, the compared financial statements has
been restated.
二、non-recurring profit and loss project and cash
In RMB yuan
Project Amount
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
Gain/loss of non-current assets 2,757,997.59
The government subsidies included in the current profits and
losses (except government subsidies closely related to corporate 76,777,987.45
business, entitled in fixed quota or quantity)
Current net profit from beginning to combined date of business
-43,588,252.13
combination under common control
Investment income from disposing available-for-sale equity securities 54,031,310.36
Other non-business income and expenditures other than the above items 5,662,962.67
Subtract: Influenced amount of income tax 26,221,590.93
Influenced amount of miniority shareholders equity (after tax) 4,304,187.07
Total 65,116,227.94
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
IV. Report by Board of Director
一、Overview
In the first half of 2014, the Company actively responded to the challenges of increasing market competition, and lack of
resources, etc., while the production and operation reached a historical high. During the reporting period, the Company and its
associated enterprises and subordinate joint ventures sold 1,320,000 vehicles in total, up 25% year-on-year, 16.6 percentage points
higher than the industry average. Among them, 392,000 Changan brand passenger vehicles (including the new mini bus, excluding
JVs) have been sold, up 43.4% year-on-year, ranking first among Chinese brands. In Chinas auto market, the Company achieved a
market share of about 11.3%, 1.51percentage points higher than the previous year, and the sales volume continues to rank top 4 in
Chinese automobile industry. (data source: China Association of Automobile Manufacturers.)
二、Analysis of Main Business
During the reporting period, the Company delivered operating revenue of RMB 24,206,730,641.95 Yuan and net profit
attributable to shareholders of public Corporation RMB 3,628,092,998.93Yuan, with year-on-year growth of 19.77% and 194.85%
respectively. As of the end of the reporting period, the Company's total assets reached RMB 60,527,735,369.45Yuan, up 11.04%
compared with the beginning of the year, total liabilities RMB 39,111,799,128.15 Yuan, up 9.29% compared with the beginning of
the year, debt asset ratio 64.62%, down 1.03 percentage points compared with the beginning of the year. During the reporting period,
the Company delivered net increase in cash and cash equivalents of RMB 3,253,800,930.55 Yuan, with a year-on-year increase of
RMB 817,488,180.29 Yuan, with a year-on-year growth of 33.55%. The net cash flow from operating activities reached RMB
3,541,495,260.91Yuan, with an increase of RMB188,669,737.15Yuan, up 5.63%. The Company has constantly improved its
operation quality and enhanced its profitability.
Y-o-y changes of main financial data
In RMB yuan
Same period of last Y-o-y
Current period Reasons for changes
year（restated） increase/decrease
operating revenue 24,206,730,641.95 20,211,066,593.34 19.77% Increase in scale of production and sales
Operating cost 19,995,482,492.16 17,004,065,519.59 17.59% Increase in scale of production and sales
Increase in the sales and the proportion of
Business tax and
925,095,503.04 641,778,379.65 44.15% high-tax-rate models, which led the increase
surcharges
in consumption tax
Operating expenses 2,115,030,025.67 1,670,573,272.14 26.61% Increase in scale of production and sales
General and Increase in salary payable, depreciation and
1,603,360,209.07 1,314,975,974.49 21.93%
administrative expenses technology research expenses
Decrease in interest income and increase in
Financial expenses 89,149,560.21 52,854,680.48 68.67%
interest expenses
Impairment loss on Impairment loss on fixed assets and intangible
32,554,907.42 125,275,943.79 -74.01%
assets assets in previous period.
Large increase in investment income from
Investment income 4,084,040,246.48 1,804,771,615.58 126.29%
Changan Ford.
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
Non-operating income 90,453,586.04 58,649,825.72 54.23% Increase in government grant.
Large increase in investment income from the
Total profit 3,615,297,138.57 1,246,581,987.73 190.02%
joint ventures.
Increase in current income tax expenses and
Income tax expense -530,676.54 29,069,608.63 -101.83%
decrease in deferred income tax expenses.
Net profit Large increase in investment income from the
3,628,092,998.93 1,230,503,367.66 194.85%
attributable to owners joint ventures.
R&D investment 660,694,674.90 528,601,318.06 24.99%
Subtotal of cash inflow
3,541,495,260.91 3,352,825,523.76 5.63%
from operating activities
Subtotal of cash inflow Receiving large dividends from Changan
2,843,012,123.55 378,986,812.76 650.16%
from investment activities Ford.
Subtotal of cash in-flow
-3,129,616,790.47 -1,293,898,618.99 -141.87% Large increase in repayment for liabilities.
from financing activity
Net increase in cash and
3,253,800,930.55 2,436,312,750.26 33.55%
cash equivalents
Major changes on profit composition or profit resources in reporting period
□ Applicable √ Not applicable
No major changes on profit composition or profit resources occurred in reporting period.The future development and planning
extended to reporting period that published in disclosure documents as prospectus, private placing memorandum and recapitalize
statement
□ Applicable √ Not applicable
Review on the previous business plan and its progress during reporting period
In the first half of the year 2014, the Company completed the business indicators decsided at the beginning of the reporting period
by the board of directors well. The total sales volume of the automobiles was 1.32million, which completed 56.65% of the planed
business indicators. Sales revenue is 104.2 Billion Yuan (including full revenue from joint venture) on statistic basis, with 57.87%
over the annual plan, and24.2 Billion Yuan from consolidated financial statements, with 59.17% over the annual plan.
三、Composition of Main Business
in RMB Yuan
Increase or Increase or Increase or
decrease of decrease of decrease of
Operating revenue Operating cost Gross profit
operating operating cost gross profit
revenue y-o-y y-o-y y-o-y
According to industries
Automobile
23,673,135,459.44 19,671,555,305.88 16.90% 20.54% 18.96% 1.10%
Production
According to products
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
（一）Complete
23,544,052,444.90 19,551,708,604.35 16.96% 20.55% 18.86% 1.18%
vehicle
Passenger Vehicle
13,085,188,368.79 10,622,874,078.02 18.82% 52.82% 45.99% 3.80%
（Contains SUV）
Mini Vehicle（Contains
10,329,781,061.57 8,808,987,824.80 14.72% -4.88% -3.06% - 1.60%
light vehicle）
（二）Outsourcing 129,083,014.54 119,846,701.53 7.16% 18.70% 38.38% - 13.2%
According to region
domestic 23,267,494,217.35 19,278,290,530.55 17.14% 21.37% 19.74% 1.13%
overseas 405,641,242.09 393,264,775.33 3.05% -13.52% -9.79% - 4.01%
During the period, increase in GPM of passenger Vechiles (including SUV) was due to the increase in sales of eaton and CS35, and
the product structure optimization
四、Analysis of Core Competitiveness
In the first half of 2014, the Company has been constantly promoting independent innovation and R&D capabilities, continuously
improving its product competitiveness, and delivering effective brand communication.
During the reporting period, CS75, new Benni and other products were successfully launched into the market. The Company
simultaneously progressed its product design, powertrain and chassis development projects, and continuously strengthened its
globally collaborative R&D capabilities. The Company successfully held the 2nd Changan Automobile Technology Carnival, and
released Changan quality certification system of CA-TVS. The Company held its first new technology presentation fair, released 6
technological strategies, including energy saving, safety and smart technologies, and accelerated the research in the application of
automatic parking, car Internet, etc.
In the first half of 2014, Changans indigenous brand passenger vehicles rose against the market trend, demonstrating strong product
competitiveness. During the period, Changan EADO were sold 75,000 units, winning the Chinese brand monthly sales champion in
its peers, the only Chinese brand vehicle that entered top 20 in Chinese market. CS35 were sold 54,000 units, ranking No.1 in the
Chinese brand compact SUV segment. Alsvin series were sold 63,000 units, ranking No.1in the Chinese brand A0 car segment.
In terms of brand promotion, the Company adheres to “user oriented, prioritizing user thinking and experience, innovation in brand
communication”. The Company exclusively sponsored "Amazing Chinese", successfully showcased at the Beijing Auto Show, and
released its slogan "Driving forward with you", further enhancing its brand influence. It is the only Chinese brand passenger vehicle
maker that entered top 20 in China.
五、Investment analysis
1、Foreign equity investment
（1）Foreign equity investment
Foreign equity investment
The amount of investment during investment amount of the same amplitude of fluctuation
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
the report period (yuan) period last year (yuan)
440,606,230.50 3,086,000.00 14,177.58%
The invested company
Listing Corporation accounted for
by investment company's equity
Company name Main business
proportion
Hefei Changan Automobile Co., Ltd Automobile manufacture sales 100.00%
（2）A financial enterprise equity situation
At the
beginnin
Initial The final The
Intinial g of the The final Reporting
Company Type of share number final Accounti Source of
investment period book value period income
name Company precent of shares owners ng subjec stock
cost (yuan) number (yuan) (yuan)
age (shares)） hip
of shares
(shares)
Available
Initial
Southwest Securities for sale
50,000,000 17,750,000 0.76% 17,750,000 0.63% 136,142,500 investmen
Securities Company financial
t
assets
2The
2011
Available merger
Hua xia commerci for sale of
8,149,714 9,458,800 0.08% 2,658,800 0.03% 21,802,160 54,031,310.36
bank al bank financial Changa
assets n bus
investm
ent
China
Long
South
term Initial
Industries
Others 80,000,000 5.33% 5.33% 80,000,000 31,252,435.46 equity investmen
Group
investme t
financial
nt
company
138,149,71 85,283,7
total 138,149,714 -- -- --
4 237,944,660 45.82
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
2、Analysis of main subsidiaries, joint stock company
In Yuan
registered
Type Main Business Business
Name Industry capital Total assets net assets net profit
company products income profit
assets
Productio
n and
Manufact sales of
JV $240.47mill 36,256,153, 9,660,312,8 52,846,747, 8,453,651,2 7,389,299,6
CFA uring automotiv
Company ion 279.12 42.25 174.74 09.43 70.38
industries e
compone
nts
Productio
n and
Manufact sales of
JMC RMB2billio 6,913,221,7 4,395,641,9 1,728,835,2 416,774,963 424,163,483
Company uring automotiv
Holdings n 42.37 91.14 50.95 .34 .33
industr e
compone
nts
Productio
n and
Changan Manufact sales of
$110.97mill 8,511,455,0 2,713,878,6 6,491,828,0 550,998,695 413,249,021
Ford Mazda Company uring automotiv
ion 54.94 00.96 10.12 .87 .90
Engine Co., industr e
compone
nts
六、Prediction of business performance for Jan-Sept 2014
Alert of loss or significant change in net profit from the beginning of year to the end of next report period or comparing with the
same period of last year, and statement of causations.
□ Applicable √ Not applicable
七、Statement of the Board on the “non-standard auditors’ report” issued by the CPA on the
current report period
Not applicable
八、Statement of the Board on the variation and treatment of events that involved in the
“non-standard auditors’ report” issued by the CPA on previous fiscal year
Not applicable
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
九、The implementation of profit distribution during the reporting period
By May 8, 2014 the Company held the 2013 annual meeting of shareholders. The 2013 annual interest
distribution scheme is: The company's existing total share capital of 4662886108 shares as the base, to all
shareholders 10 per share cash delivery 1 yuan (including tax). The equity allocation of A equity registration
date is May 27, 2014, Ex dividend date is May 28, 2014, B share the last trading day of May 27, 2014, ex
dividend date for May 28, 2014. The equity registration date for May 30, 2014.The profit distribution plan has
been completed, a total of 467,396,927.48 yuan to distribute cash dividends.
十、Registration form for the reception research, communication, interviews and other activities
during the reporting period
Date Location manner Reception object Content discussed and material offered
Meeting Room, Automotive Industry Development and
2014.1.3 On-Site Survey Soochow Asset Management Co.
Changan Headquarters Companys Business
Meeting Room, Automotive Industry Development and
2014.1.9 On-Site Survey Huaxi Securities、Venus Investment
Changan Headquarters Companys Business
Minsheng securities、Minsheng
Meeting Room, Automotive Industry Development and
2014.1.10 On-Site Survey Royal Fund Management Co.、ABC
Changan Headquarters Companys Business
Life Insurance Co.
Meeting Room, Automotive Industry Development and
2014.1.13 On-Site Survey Barclays Capital Asia Limited
Changan Headquarters Companys Business
Meeting Room, Automotive Industry Development and
2014.1.15 On-Site Survey Macquarie Securities
Changan Headquarters Companys Business
Meeting Room, Automotive Industry Development and
2014.1.16 On-Site Survey BOC International (China) Limited
Changan Headquarters Companys Business
Deutsche Bank、Ecofin、Advisory
Meeting Room, Automotive Industry Development and
2014.1.17 On-Site Survey Company for SAIF Funds、Value
Changan Headquarters Companys Business
star asset management、BNP Paribas
Meeting Room, Automotive Industry Development and
2014.2.17 On-Site Survey J.P.Morgan Asset Management
Changan Headquarters Companys Business
Amundi Capital Management 、
Logan Circle Capital Management、
Meeting Room, Automotive Industry Development and
2014.2.18 On-Site Survey Shell Capital Management、Fidelity
Changan Headquarters Companys Business
Funds 、 Wellington Capital
Management、Barclays Bank
Meeting Room, Harvest Fund、China Securities Co. Automotive Industry Development and
2014.2.26 On-Site Survey
Changan Headquarters Companys Business
2014.2.26 Meeting Room, On-Site Survey South China Growth Fund 、 Automotive Industry Development and
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
Changan Headquarters Khazanah Nasional Companys Business
Meeting Room, Hongyuan Securities Automotive Industry Development and
2014.3.4 On-Site Survey
Changan Headquarters Companys Business
Meeting Room, Guosen Securities Automotive Industry Development and
2014.3.5 On-Site Survey
Changan Headquarters Companys Business
Meeting Room, Northeast Securities Automotive Industry Development and
2014.3.6 On-Site Survey
Changan Headquarters Companys Business
Standard Chartered Bank 、
Meeting Room, Automotive Industry Development and
2014.3.6 On-Site Survey Macquarie Securities 、 Discovery
Changan Headquarters Companys Business
Capital Management
Meeting Room, telephone China Securities Co. Automotive Industry Development and
2014.4.30
Changan Headquarters conference Companys Business
Meeting Room, Morgan Stanley 、 Allianz Global Automotive Industry Development and
2014.5.5 On-Site Survey
Changan Headquarters Investors Companys Business
Meeting Room, Institutional investors Automotive Industry Development and
2014.5.8 On-Site Survey
Changan Headquarters Companys Business
Meeting Room, Lazard Automotive Industry Development and
2014.5.13 On-Site Survey
Changan Headquarters Companys Business
South China Growth Fund 、
Meeting Room, Guoyuan Consulting Service、Hofan Automotive Industry Development and
2014.5.13 On-Site Survey
Changan Headquarters Capital Management HK Limited、 Companys Business
Fullgoal Fund
Meeting Room, Guangfa Securities、Harvest Fund Automotive Industry Development and
2014.5.14 On-Site Survey
Changan Headquarters Companys Business
Meeting Room, Venus Investment Automotive Industry Development and
2014.5.15 On-Site Survey
Changan Headquarters Companys Business
Meeting Room, UBS、Wellington Management Automotive Industry Development and
2014.5.16 On-Site Survey
Changan Headquarters Companys Business
Meeting Room, Bank of America Merrill Lynch、 Automotive Industry Development and
2014.5.19 On-Site Survey
Changan Headquarters Ontario Teachers Pension Plan Companys Business
Macquarie Securities 、 Fuh Hwa
Meeting Room, Automotive Industry Development and
2014.5.21 On-Site Survey Securities、Schroders IM、Martin
Changan Headquarters Companys Business
Currie IM、Sanders Capital
E Fund Management、Anbang Asset
Management 、 China Galaxy
Meeting Room, Automotive Industry Development and
2014.5.21 On-Site Survey Securities 、 BOCOM 、 China
Changan Headquarters Companys Business
International Fund Management 、
Sinosafe Insurance 、 Huashang
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
Fund、Nanjing Securities
Meeting Room, UBS Automotive Industry Development and
2014.5.22 On-Site Survey
Changan Headquarters Companys Business
Sanford C.Bernstein 、 OCH-ZIFF
Meeting Room, Capital Management 、 Maverick Automotive Industry Development and
2014.6.3 On-Site Survey
Changan Headquarters Capital 、 Value Partners 、 Norges Companys Business
Bank
Meeting Room, Industrial Securities Automotive Industry Development and
2014.6.6 On-Site Survey
Changan Headquarters Companys Business
KGI Securities、Cathay Securities、
Meeting Room, Automotive Industry Development and
2014.6.9 On-Site Survey Taiwan and Great China Equity
Changan Headquarters Companys Business
Fund Manager
Meeting Room, CITIC Securities 、 Polaris Capital Automotive Industry Development and
2014.6.17 On-Site Survey
Changan Headquarters Management,LLC Companys Business
Standard Chartered Bank(Hong
Meeting Room, Automotive Industry Development and
2014.6.20 On-Site Survey Kong) Limited、Franklin Templeton
Changan Headquarters Companys Business
Investments
Meeting Room, Cephei Investments Automotive Industry Development and
2014.6.24 On-Site Survey
Changan Headquarters Companys Business
Meeting Room, Cambridge Global Asset Automotive Industry Development and
2014.6.25 On-Site Survey
Changan Headquarters Management Companys Business
Meeting Room, Matthews International Capital Automotive Industry Development and
2014.6.27 On-Site Survey
Changan Headquarters Management, LLC Companys Business
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
V. Significant Events
一、Governance status
The company strictly complies with laws and rules, such as “Company Law”,”Security Law” and “Management Standard of Listed
Company”, and with standard operation of standard documents of listed company administration. During the report period, the
company issued “Self Evaluation Report of 2013 Internal Control”, and Ernst&Yong Huaming Accounting Firm issued standard
audit report of internal control.
二、Major litigation and arbitration matters
□ applicable √ not applicable
During the report period, the company has no major litigation and arbitration matters.
三、Questioned situation by media
□ applicable √not applicable
During the report period the company has no widespread questioned situation by media.
四、Related matters of bankruptcy and restructure
Not applicable
五、Assets transaction matters
1、Acquisition of assets
The
contributio
n in net
The
acquired Impact on Impact on profit ratio relation
dealing Dealing Progress related Date of
or company's company's of net ship with Index of
party or price(000 (note2) party disclosure
purchased business profit profit of the dealing disclosure
parent 0) transaction (note 5)
assets (note3) (note3) the assets party
company
of the
listed
company
100% Payment Decrease Make Controlled http://www
China shares of and the cost of contributio by the 4th,March .cninfo.co
43,998 -2.38% Yes
Changan Hefei Industrial fixed n in net same 2014 m.cn/final
Changan and assets profit ultimate page/2014-
16
Chongqing Changan Automobile Company Limited Semi-annual Report 2014
commercia investment amounted holding 03-04/636
l , and make at RMB company 30963.PD
registratio for -86,460 F
n change improving thousand
of share the overall
delivery profitabilit
has been y of the
completed self-owned
brand
passenger
vehicles in
the future.
2、sales of assets
According to the “On transfer of Chongqing Changan Suzuki Automobile Co., Ltd. 1% shares” through the 21st meeting of the 6th
the board of directors. To improve the Chongqing Changan Suzuki Automobile Co., Ltd.s (“Changan Suzuki”) development, the
company planed to transfer the 1% shares of Changan Suzuki in hongqing United Assets and equity exchange limited liability
company by shingle publicly trade.
3、Enterprise merger
In April 2014, the Company acquired 100% shares of Hefei Changan automobile Co for RMB439,980
thousand from China Changan, the parent company. Since the both sides of combination are under common
control of the same parent company. Hefei Changan became a wholly owned subsidiary of the company.
Please refer to related-party transaction announcement and financial statement notes.
六、Implementation and influence of the company equity incentive.
No.
七、Major relevant transaction.
1、Related party transaction related with daily operation.
Details refer to financial report。
17
Chongqing Changan Automobile Company Limited Semi-annual Report 2014
2、Related party transaction at asset acquisition and sales.
According to the “The acquisition of Hefei Changan automobile Limited company 100% shares bill” through the 16th meeting of th
6th board of directors. The Company acquired 100% shares of Hefei Changan Automobile Co by self raised funds. During the period,
the Company has completed payment of the acquisition and industrial and commercial registration change of share delivery. Please
refer to related-party transaction announcement and financial statement notes.
3、Important related party transaction of jointly overseas investment.
No.
4、Related creditor’s right and debt contact.
Is there any non-operating related creditors right and debt contact.
□ Yes √ No
5、Other major related transaction.
The acquisition of Hefei Changan automobile Limited Tide Information Network
Mar. 4 of 2014
company 100% shares announcement http://www.cninfo.com.cn
Related party transaction announcement of the South Groups Tide Information Network
Apr. 17 of 2014
Finance providing financial service http://www.cninfo.com.cn
Related Party Transaction Announcement of Utilizing Tide Information Network
Zhonghui Futong Company for trade finance. Apr. 17 of 2014 http://www.cninfo.com.cn
Tide Information Network
Expected announcement of 2014 daily related transaction Apr. 17 of 2014
http://www.cninfo.com.cn
八、Important contract and implementation.
1、Matters regarding hosting, contracting and leasing.
（1）Hosting
Projects whose profit and loss brought to the company accounte for 10% of the total profits during the company report period.
□ Yes √ No
（2）Contracting
Projects whose profit and loss brought to the company accounte for 10% of the total profits during the company report period.
□ Yes √ No
18
Chongqing Changan Automobile Company Limited Semi-annual Report 2014
（3）Leasing
Projects whose profit and loss brought to the company accounte for 10% of the total profits during the company report period.
□ Yes √ No
2、Guarantee
During the report period, the company has no gurarantee.
3、Other important contract.
No
4、Other important transaction.
No
九、Commitments of the company or shareholders holding more than 5% shares during the
report period or during former period but continuing to this report period.
Commitment Item Promisee Promise content Performance
As of the end of the reporting period,
CCAG, the Companys shareholder
with share selling restrictions, held
1.Will abide by the laws, regulations and rules, to
373,358,342 shares with selling
perform the legal obligations.2. Held by the original
restrictions, which will be lifted after
non-tradable shares from obtaining the right to list and
the implementation of management
trade date, At least 24 months is not publicly traded or
share incentive plan according to the
transferred, The 24 months after the expiration of the
commitments of shareholding
term of, Non-tradable shareholders stock exchange
reform. During the reporting period,
The commitments of through the sale of shares, The sale of shares of the
China Changan according to CCAGs document “A
stock reform company accounted for the proportion of the total
Supplementary Explanation to
number of within 12 months and not more than five
Participating in the Share Split
percent, In 24 months of no more than ten percent,3.
Reform of Chongqing Changan
Company in the shares changed after the completion
Automobile Co., Ltd.”, the Company
of According to the national related management
confirmed that it will implement the
systems and methods for implementing the
management share incentive plan
management equity incentive plan
before June 30, 2016, according to
relevant national regulations and
measures.
Other small order to avoid and eventually solve the possible The Harbin Hf Automobile Industry
shareholders China Changan competition or potential competitors, Better maintain Group Co at present is still running
commitment the interests of investors, the company controlling at a loss, The conditions have not yet
19
Chongqing Changan Automobile Company Limited Semi-annual Report 2014
shareholder China Changan commitment: In two reached the profitable for two
consecutive years profit of Harbin Hf Automobile consecutive years.
Industry Group Co, With the continuous development
ability and management level is improved
significantly under the condition of, Proposed that
enterprises into the company.
In 2013, Changan Peugeot Citroen
If the Changan Peugeot Citroen in 2013 for li
for the company contribution to
sting Corporation contribution to investment incom
Other small investment income of RMB -5058
e lower than -12500.,(ten thousand Yuan),
shareholders China Changan ten thousand yuan, Not less than
2014 investment listing Corporation contributions earn
commitment Chinese Changan promised lowest
less than -17500 (ten thousand Yuan), China Changan
return on investment of -12500 ten
promised to make up the difference in cash.
thousand yuan.
十、Cases of employing and dismissing accounting firm
If the semi-annual financial report has been audited.
□ Yes √ No
十一、Punishment and rectification case
Statement of rectification
□ applicable √ not applicable
十二、Statement of other important matters
No。
20
Chongqing Changan Automobile Company Limited Semi-annual Report 2014
VI Stake Change and shareholders Information
一、Stake changes
before this change increase or decrease of this change after this change
issue
Proportio issue new Amou Proportion( issue new
Amount new Amount Proportion(%)
n(%) shares nt %) shares
shares
一、
Shares of limited sale 373,375,587 8.01% 4,312 4,312 373,379,899 8.01%
condition
1、
Shareholdings of
373,358,342 8.01% 373,358,342 8.01%
state-owned legal
personnel
2、
Shares of senior 17,245 0.00% 4,312 4,312 21,557 0.00%
managers
二、
Shares of infinite sale 4,289,510,521 91.99% -4,312 -4,312 4,289,506,209 91.99%
condition
1、
3,387,524,379 72.65% -4,312 -4,312 3,387,520,067 72.65%
RMB common stake
2、
Foreign shares listed 901,986,142 19.34% 901,986,142 19.34%
abroad
三、
4,662,886,108 100% 4,662,886,108 100%
Total shares
Reason of stake change
□ applicable √ not applicable
Approval of stake change
□ applicable √ not applicable
Ownership transfer of stake change
□ applicable √ not applicable
21
Chongqing Changan Automobile Company Limited Semi-annual Report 2014
The influence of share change on financial indicators, such as the latest year and the latest basic earnings per share and diluted
earnings per share, the net assets per share belonging to the common shareholder of the company
□ applicable √ not applicable
Other contents which the company thinks its necessary and securities supervison institution requires to publish.
□ applicable √ not applicable
Statement of change of total shares and shareholder structure, corporate assets and liabilities structure
□ applicable √ not applicable
二、Amount of shareholders and shareholdings
Unit: stock
Total amount of shareholders at the The total amount of shareholders is 102,357, and A shareholder is 86,833, B shareholder
end of report period is 15,524.
Shareholders holdings whose shares are over 5%.
Shareholding changes Pledge or freezing
Share amount Share amount
Nature of amount at the during the situation
Shareholder Name stake（%） of limited sale of infinite
shareholders end of report report
condition share condition share status amount
period period
China Changan
state owned -61,046,50 no pledge or
Automobile Group 39.73% 1,852,510,980 373,358,342 1,479,152,638 0
legal person 0 freeze
Co., Ltd.
VALUE PARTNERS foreign legal no pledge or
1.34% 62,256,263 -4,039,428 62,256,263 0
CLASSIC FUND person shares freeze
National Social
no pledge or
Security Fund- Other 1.12% 52,014,507 9,999,740 52,014,507 0
freeze
Portfolio 102
Zhonghui Fortis foreign legal -19,543,25 no pledge or
0.98% 45,486,000 45,486,000 0
Investment Co., Ltd. person shares 8 freeze
Agricultural Bank of
China—Bank of
Communications no pledge or
Other 0.97% 45,187,523 -200,000 45,187,523 0
Schroeder growth freeze
stock securites
investment fund
HTHK-MANULIFE foreign legal no pledge or
0.87% 40,410,827 2,447,095 40,410,827 0
CHINA VALUE person shares freeze
22
Chongqing Changan Automobile Company Limited Semi-annual Report 2014
FUND
Chinese life insurance
(Group) Ltd - no pledge or
Other 0.81% 37,744,104 37,744,104 37,744,104 0
traditional - General freeze
insurance products
China Life Insurance
no pledge or
Limited Dividends Other 0.79% 36,869,994 -1,616,112 36,869,994 0
freeze
dividends - Personal
Bank of
communications － no pledge or
Other 0.79% 36,852,729 23,735,644 36,852,729 0
Huaan Tactical Select freeze
Fund
ICBC - GF Securities
Investment Fund
no pledge or
hybrid optimization Other 0.79% 36,659,624 10,152,591 36,659,624 0
freeze
strategy
Top 10 Shareholder Information of Infinite Sale Condition
Share amount of infinite sale stock class
Shareholder Name
condition at the end of report period stock class amount
RMB Common
China Changan Automobile Group Co., Ltd. 1,479,152,638 1,479,152,638
Stock
domestic foreign
VALUE PARTNERS CLASSIC FUND 62,256,263 62,256,263
share
RMB Common
National Social Security Fund- Portfolio 102 52,014,507 52,014,507
Stock
domestic foreign
Zhonghui Fortis Investment Co., Ltd. 45,486,000 45,486,000
share
Agricultural Bank of China—Bank of Communications RMB Common
45,187,523 45,187,523
Schroeder growth stock securites investment fund Stock
domestic foreign
HTHK-MANULIFE CHINA VALUE FUND 40,410,827 40,410,827
share
Chinese life insurance (Group) Ltd - traditional - RMB Common
37,744,104 37,744,104
General insurance products Stock
China Life Insurance Limited Dividends dividends - RMB Common
36,869,994 36,869,994
Personal Stock
RMB Common
Bank of communications－Huaan Tactical Select Fund 36,852,729 36,852,729
Stock
ICBC - GF Securities Investment Fund hybrid 36,659,624 RMB Common 36,659,624
23
Chongqing Changan Automobile Company Limited Semi-annual Report 2014
optimization strategy Stock
Among the top 10 shareholders, China Changan Automobile Group Co.,
Correlation or concerted action among top 10 infinite Ltd., the controlling shareholder, and its wholly owned subsidiary
sale tradable share holders, and between top 10 infinite Zhonghui Futong Investment Co., Ltd. belong to the concerted actor
sale tradable share holders and top 10 shareholders. regulated by “Disclosure Administration of Shares Change Information of
The Listed Company”.
If any repurchase transaction appointment of shareholders during the report period
□ Yes √ No
三、Changes of controlling shareholders or actual controller.
Changes of controlling shareholders during the report period
□ applicable √not applicable
Changes of actual controllers during the report period
□ applicable √not applicable
24
Chongqing Changan Automobile Company Limited Semi-annual Report 2014
VII Directors, Supervisors and Senior Managers Information
一、Share ownership of directors, supervisors and senior managers
□ applicable √not applicable
The share ownership of the directors, supervisors and senior managers have no change during the report period, details refer to 2013
annual report.
二、Departure and firing information of the directors, supervisors and senior managers
During the reporting period, Mr. Wang Chongsheng ceased to hold the position as company director and vice president because of his
age. At the 15th meeting of the sixth Board of Directors, Mr. He Chaobing was appointed as vice president, and in the annual general
meeting of shareholders of 2013, Mr. Ren Qiang was elected as director; Mr. Cui Yunjiang, due to his job change, was no longer
director, vice president and the secretary of the board, and on the 18th meeting of the sixth Board of Directors, Mr. Wang Kun was
appointed as vice president and acting secretary of the board.
Subsequent events: in early July of 2014, the Board of Directors received a written resignation of Mr. Dong Yang, the independent
director. In light of that the resignation of Mr. Dong Yang will cause the proportion of independent directors to be lower than the
statutory requirements, the resignation of Mr. Dong Yang will be effective after the general meeting of shareholders elects successive
independent director to fill the gap. The Company will complete the election of independent director as soon as possible in
accordance with the relevant regulations.
25
Chongqing Changan Automobile Company Limited Semi-annual Report 2014
VIII Audited Financial Statements
一、 Auditing Report
Semi-annual report is audited
□Yes √ No
Without the semi-annual financial report audit.
二、Financial statement
Financial in notes to the statements of the unit is: RMB yuan
1、Consolidated Balance Sheet
Account Ending Balance Opening Balance(Restated)
Current assets:
Cash 7,461,227,083.58 4,535,825,972.55
Deposit Reservation for Balance
Funds loaned to other financial institutions
Financial assets held for trading
Notes receivable 12,913,624,890.68 11,272,212,347.84
Accounts receivable 742,451,118.98 604,638,231.06
Prepayments 768,483,133.56 698,944,852.07
Premiums receivable
Reinsurance receivable
Reinsurance reserve receivable
Interest receivable
Dividend receivable
Other receivables 279,473,983.53 211,810,998.81
Reverse repurchase agreements
Inventories 6,102,144,100.43 4,735,051,726.57
Non-current assets within one year Other current assets
Other non-current assets 1,456,424.61 2,585,737.57
Total current assets 28,268,860,735.37 22,061,069,866.47
Non-current assets:
Entrustment loans and advances
Available-for-sale financial assets 173,564,660.00 257,319,416.00
Held-to-maturity investments
Long-term receivables
26
Chongqing Changan Automobile Company Limited Semi-annual Report 2014
Long-term equity investments 12,415,238,289.30 12,466,481,788.64
Investment properties 9,647,215.45 9,490,627.13
Fixed assets 14,496,355,632.44 14,372,992,511.16
Construction in progress 925,772,449.97 1,328,773,757.05
Construction materials 96,690.75 96,690.75
Liquidation of fixed assets 5,127,883.23 8,696.53
Productive biological assets
Oil and gas asset
Intangible assets 2,227,577,377.81 2,076,220,482.54
Development expenditure 658,005,941.21 685,666,604.48
Goodwill 9,804,394.00 9,804,394.00
Long-term deferred expenses 1,247,249.34 1,410,228.76
Deferred tax assets 1,085,400,600.11 998,435,801.99
Other non-current assets 251,036,250.47 244,336,881.52
Total non-current assets 32,258,874,634.08 32,451,037,880.55
TOTAL ASSETS 60,527,735,369.45 54,512,107,747.02
Current liabilities:
Short-term loans 378,000,000.00 1,398,000,000.00
Due to The Peoples Bank of China
Placements of deposits from other financial institutions
Funds borrowed from other financial institutions
Financial liabilities held for trading
Notes payable 11,946,131,545.28 9,577,654,675.13
Accounts payable 10,342,026,388.34 7,963,798,219.72
Advances from customers 5,143,994,377.92 4,260,282,749.23
Repurchase agreements
Commission payable
Payroll payable 616,979,776.32 825,803,375.99
Taxes payable 420,351,797.23 113,689,600.15
Interest payables 21,261,333.33 78,113,712.49
Dividend payables 8,430,221.56 79,742.80
Other payables 1,393,545,251.69 1,786,024,577.49
Reinsurance payable
Reinsurance reserve payable
Commission of security trading
Commission of underwriting
Non-current liabilities within one year 520,000,000.00
Other current liabilities 2,405,800,250.58 1,900,629,102.12
Total current liabilities 32,676,520,942.25 28,424,075,755.12
Non-current liabilities:
Long-term loans 1,270,000,000.00
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
Bonds payable 1,969,225,719.91 1,967,266,759.93
Long-term payables
Special payables 180,472,777.73 213,630,202.50
Provisions 1,525,358,299.45 1,117,167,286.59
Deferred tax liabilities 25,779,708.54 41,842,961.06
Other non-current liabilities 2,734,441,680.27 2,752,909,939.90
Total non-current liabilities 6,435,278,185.90 7,362,817,149.98
Total liabilities 39,111,799,128.15 35,786,892,905.10
Owners’ equity (or Shareholders’ equity):
Paid up capital (or Share capital) 4,662,886,108.00 4,662,886,108.00
Capital reserves 3,393,596,705.76 3,854,086,004.99
Less: Treasury shares
Special reserves 3,734,219.25 1,670,967.02
Surplus reserves 1,816,272,976.53 1,816,272,976.53
General reserve
Retained earnings 11,704,287,219.85 8,543,591,148.40
Foreign currency reserve -14,173,962.08 -14,890,520.83
Equity attributable to owners 21,566,603,267.31 18,863,616,684.11
Minority interests -150,667,026.01 -138,401,842.19
Total Owners equity (or Shareholders equity) 21,415,936,241.30 18,725,214,841.92
TOTAL LIABILITIES AND OWNERS EQUITY( OR
60,527,735,369.45 54,512,107,747.02
SHAREHOLDERS EQUITY)
2、Balance Statement
Account Ending Balance Opening Balance
Current assets:
Cash 6,382,965,855.51 3,290,584,684.00
Financial assets held for trading
Notes receivable 12,635,062,277.00 10,612,070,124.82
Accounts receivable 1,985,135,231.32 1,393,930,437.57
Prepayments 785,632,969.26 1,006,257,953.21
Interest receivable
Dividend receivable
Other receivables 243,020,765.00 550,745,735.30
Inventories 5,456,753,823.60 3,995,173,686.02
Non-current assets within one year
Other current assets 105,942.57
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
Total current assets 27,488,676,864.26 20,848,762,620.92
Non-current assets:
Available-for-sale financial assets 151,762,500.00 176,257,500.00
Held-to-maturity investments
Long-term receivables
Long-term equity investments 13,757,627,706.13 13,767,197,201.37
Investment properties
Fixed assets 12,253,134,554.33 11,991,246,390.25
Construction in progress 802,530,048.87 1,227,441,848.35
Construction materials 96,690.75 96,690.75
Liquidation of fixed assets
Productive biological assets
Oil and gas asset
Intangible assets 1,949,925,032.79 1,854,137,128.97
Development expenditure 613,117,648.67 612,487,126.25
Goodwill
Long-term deferred expenses 450,200.00 540,240.00
Deferred tax assets 1,001,710,832.44 897,445,610.07
Other non-current assets 251,036,250.47 244,336,881.52
Total non-current assets 30,781,391,464.45 30,771,186,617.53
TOTAL ASSETS 58,270,068,328.71 51,619,949,238.45
Current liabilities:
Short-term loans 200,000,000.00 1,200,000,000.00
Financial liabilities held for trading
Notes payable 10,975,578,817.44 7,579,635,615.92
Accounts payable 8,704,688,333.63 6,807,637,925.32
Advances from customers 5,166,009,849.11 4,277,575,537.45
Payroll payable 543,734,630.09 710,331,644.30
Taxes payable 737,082,636.53 478,169,294.18
Interest payable 21,261,333.33 77,672,045.84
Dividend payable 8,350,478.76
Other payables 1,007,791,029.03 1,404,722,740.89
Non-current liabilities within one year 520,000,000.00
Other current liabilities 2,214,656,227.08 1,677,944,402.50
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
Total current liabilities 29,579,153,335.00 24,733,689,206.40
Non-current liabilities:
Long-term loans 1,270,000,000.00
Bonds payable 1,969,225,719.91 1,967,266,759.93
Long-term payables
Special payables 119,746,807.25 129,901,302.92
Provisions 1,027,584,707.59 761,596,810.09
Deferred tax liabilities 19,332,375.00 23,006,625.00
Other non-current liabilities 2,214,924,681.00 2,243,478,199.06
Total non-current liabilities 5,350,814,290.75 6,395,249,697.00
Total liabilities 34,929,967,625.75 31,128,938,903.40
Owners’ equity (or Shareholders’ equity):
Paid up capital (or Share capital) 4,662,886,108.00 4,662,886,108.00
Capital reserves 2,947,596,521.98 3,366,723,267.88
Less: Treasury shares
Special reserves 61,739.42
Surplus reserves 1,816,272,976.53 1,816,272,976.53
General reserve
Retained earnings 13,913,283,357.03 10,645,127,982.64
Foreign currency reserve
Equity attributable to owners 23,340,100,702.96 20,491,010,335.05
TOTAL LIABILITIES AND OWNERS ’ EQUITY( OR
58,270,068,328.71 51,619,949,238.45
SHAREHOLDERS’ EQUITY)
3、Consolidated Income Statement
Account Current Period Prior Period(Restated)
I. Total operating revenue 24,206,730,641.95 20,211,066,593.34
Including: operating revenue 24,206,730,641.95 20,211,066,593.34
Interest income
Earned premium
Fee and commission income
II. Total operating cost 24,760,672,697.57 20,809,523,770.14
Including: Operating cost 19,995,482,492.16 17,004,065,519.59
Interest expenses
30
Chongqing Changan Automobile Company Limited Semi-annual Report 2014
Fee and commission expenses
Surrender value
Compensation expenses
Net insurance contract reserve
Policy dividend expenses
Reinsurance expenses
Business tax and surcharges 925,095,503.04 641,778,379.65
Operating expenses 2,115,030,025.67 1,670,573,272.14
General and administrative expenses 1,603,360,209.07 1,314,975,974.49
Financial expenses 89,149,560.21 52,854,680.48
Impairment loss on assets 32,554,907.42 125,275,943.79
Add: Profit and loss from fair value changes (- represent
-332,407.00
loss)
Investment income (- represent loss) 4,084,040,246.48 1,804,771,615.58
Including: Investment income from associates and
3,998,756,500.66 1,774,141,795.34
from joint venture
Net foreign exchange differences(- means loss)
III. Operating profit (- represent loss) 3,530,098,190.86 1,205,982,031.78
Add: Non-operating income 90,453,586.04 58,649,825.72
Less: Non-operating expenses 5,254,638.33 18,049,869.77
Including: loss on disposal of non-current assets 2,119,964.57 4,134,080.37
IV. Total profit(- represent loss) 3,615,297,138.57 1,246,581,987.73
Less: Income tax expense -530,676.54 29,069,608.63
V. Net profit (- represent net loss) 3,615,827,815.11 1,217,512,379.10
Including: The net profit of the combined parties before
-43,588,252.13 -100,466,458.67
business combination
Net profit attributable to owners 3,628,092,998.93 1,230,503,367.66
Minority interests -12,265,183.82 -12,990,988.56
VI. Earnings per share: -- --
I) Basic earnings per share 0.78 0.26
II) Diluted earnings per share 0.78 0.26
VII. Other comprehensive income -61,466,744.58 -35,198,684.58
VIII. Total comprehensive income 3,554,361,070.53 2,262,650,292.76
Total comprehensive income attributable to owners 3,566,626,254.35 2,261,924,488.02
Total comprehensive income attributable to minority interest -12,265,183.82 725,804.74
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
4、Income Statement
Account Current Period Prior Perid
I. Operating revenue 24,162,773,507.80 16,016,066,794.52
Less: Operating cost 20,396,414,542.63 13,418,745,332.34
Business tax and surcharges 814,897,980.81 550,345,493.40
Operating expenses 1,871,260,928.21 1,280,089,219.07
General and administrative expenses 1,323,876,983.17 1,100,149,546.03
Financial expenses 79,080,657.88 46,842,389.71
Impairment loss on assets 37,227,690.27 93,368,086.68
Add: Profit and loss from fair value Changes (- represent
loss) 0
Investment income (- represent loss) 4,035,833,936.12 1,806,962,598.34
Including: Investment income from associates and
from joint venture 3,998,756,500.66 1,774,141,795.34
II. Operating profit (- represent loss) 3,675,848,660.95 1,333,489,325.63
Add: Non-operating income 50,691,349.03 44,978,210.23
Less: Non-operating expenses 4,693,802.21 16,189,004.04
Including: loss on disposal of non-current assets 1,873,228.67 3,689,318.28
III. Total profit(- represent loss) 3,721,846,207.77 1,362,278,531.82
Less: Non-operating expenses -13,706,094.10 2,651,996.23
IV. Net profit (- represent net loss) 3,735,552,301.87 1,359,626,535.59
V. Earnings per share: -- --
I) Basic earnings per share 0.80 0.29
II) Diluted earnings per share 0.80 0.29
VI. Other comprehensive income -20,820,750.00 -19,010,250.00
VII. Total comprehensive income 3,714,731,551.87 1,340,616,285.59
5、Consolidated cash flow statement
Account Current Period Prior Perid(Restated)
I. CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from sale of goods or rendering of services 22,950,249,965.77 19,961,062,106.19
Net increase in customer deposits and placements of deposits
from other financial institutions
Net increase in amounts due to the Central Bank
32
Chongqing Changan Automobile Company Limited Semi-annual Report 2014
Net decrease in funds loaned to other financial institutions
Cash receipts from primary insurance contract
Net cash receipts from reinsurance agreement
Net increase in saving from incident and investment deposit
Net increase in disposal of financial assets held for trading
Cash receipts from interest and fee and commission income
Net increase in funds borrowed from other financial
institutions
Net increase in repurchase agreements
Refunds of taxes 53,487,718.04 14,563,156.81
Cash received relating to other operating activities 201,301,781.54 604,686,532.73
Sub-total of cash inflows 23,205,039,465.35 20,580,311,795.73
Cash paid for goods and services 13,693,761,452.04 12,172,096,072.19
Net increase in loans and advances
Net increase in amounts due from the Central Bank and
placements of deposits with other financial institutions
Cash payments for primary insurance contract
Cash payments for interest and fee and commission expenses
Cash payments for policy dividend
Cash paid to and on behalf of employees 2,056,666,113.04 1,310,533,501.84
Cash paid for all types of taxes 1,835,356,877.92 1,487,128,110.75
Cash paid relating to other operating activities 2,077,759,761.44 2,257,728,587.19
Sub-total of cash outflows 19,663,544,204.44 17,227,486,271.97
Net cash flows from operating activities 3,541,495,260.91 3,352,825,523.76
II. CASH FLOWS FROM INVESTING ACTIVITIES:
Cash received from disposal of investments 4109684.91 8232153.38
Cash received from return on investments 4,135,283,745.82 1,629,273,160.50
Net cash received from disposal of fixed assets, intangible
1,674,312.38 1,144,000.58
assets and other long-term assets
Cash and cash equivalents of subsidiary receipts upon a
acquisition
Cash received relating to other investing activities 30,146,500.00
Sub-total of cash inflows 4,141,067,743.11 1,668,795,814.46
Cash paid for acquisition of fixed assets, intangible assets and
857,449,389.06 1,286,643,001.70
other long-term assets
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
Cash paid for acquisition of investments 440,606,230.50 3,086,000.00
Net increase in pledged loan
Cash paid for acquisition of subsidiary and other business
units
Cash paid relating to other investing activities 80,000.00
Sub-total of cash outflows 1,298,055,619.56 1,289,809,001.70
Net cash flows from investing activities 2,843,012,123.55 378,986,812.76
III. CASH FLOWS FROM FINANCING ACTIVITIES:
Cash received from absorbing investment 100,000,000.00
Including: cash received from absorbing investment from
minority interest of subsidiary
Cash received from borrowings 60,000,000.00 140,000,000.00
Cash received from issuing bond
Cash received relating to other financing activities -6,302,247.54 12,155,696.67
Sub-total of cash inflows 53,697,752.46 252,155,696.67
Cash repayments of borrowings 2,870,000,000.00 1,158,000,000.00
Cash paid for distribution of dividends or profits and interest
641,699,921.19 387,509,888.37
expenses
Including: cash paid for dividends or profits and interest
expenses to minority interest of subsidiary
Cash paid relating to other financing activities 14,441.26 544,427.29
Sub-total of cash outflows 3,511,714,362.45 1,546,054,315.66
Net cash flows from financing activities -3,458,016,609.99 -1,293,898,618.99
IV. EFFECT OF CHANGES IN EXCHANGE RATE ON
-1,089,663.44 -1,600,967.27
CASH
V. NET INCREASE IN CASH AND CASH
2,925,401,111.03 2,436,312,750.26
EQUIVALENTS
Add: Opening balance of cash and cash equivalents 4,535,825,972.55 4,643,494,705.55
VI. CLOSING BALANCE OF CASH AND CASH
7,461,227,083.58 7,079,807,455.81
EQUIVLANT
6、Cash flow statement
Account Current Period Prior Perid
I. CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from sale of goods or rendering of services 21,373,247,295.30 15,669,552,193.06
34
Chongqing Changan Automobile Company Limited Semi-annual Report 2014
Refunds of taxes 4,883,000.00
Cash received relating to other operating activities 109,617,973.85 551,249,711.23
Sub-total of cash inflows 21,482,865,269.15 16,225,684,904.29
Cash paid for goods and services 13,167,625,862.58 8,940,426,860.25
Cash paid to and on behalf of employees 1,620,130,685.89 966,095,140.31
Cash paid for all types of taxes 1,629,267,335.44 1,255,897,698.87
Cash paid relating to other operating activities 1,685,109,380.73 1,978,285,823.42
Sub-total of cash outflows 18,102,133,264.64 13,140,705,522.85
Net cash flows from operating activities 3,380,732,004.51 3,084,979,381.44
II. CASH FLOWS FROM INVESTING ACTIVITIES:
Cash received from disposal of investments 8,232,153.38
Cash received from return on investments 4,087,077,435.46 1,633,554,609.72
Net cash received from disposal of fixed assets, intangible
1,467,422.65 505,132.49
assets and other long-term assets
Cash received from disposal of subsidiary and other business
units
Cash received relating to other investing activities 208,000,000.00 150,000,000.00
Sub-total of cash inflows 4,296,544,858.11 1,792,291,895.59
Cash paid for acquisition of fixed assets, intangible assets and
723,423,002.30 1,093,863,030.64
other long-term assets
Cash paid for acquisition of investments 440,606,230.50 3,086,000.00
Cash paid for acquisition of subsidiary and other business
units
Cash paid relating to other investing activities 100,000,000.00
Sub-total of cash outflows 1,164,029,232.80 1,196,949,030.64
Net cash flows from investing activities 3,132,515,625.31 595,342,864.95
III. CASH FLOWS FROM FINANCING ACTIVITIES:
Cash received from absorbing investment
Cash received from borrowings
Cash received from issuing bond
Cash received relating to other financing activities
Sub-total of cash inflows
Cash repayments of borrowings 2,790,000,000.00 1,020,000,000.00
Cash paid for distribution of dividends or profits and interest
630,866,458.31 379,538,579.39
expenses
35
Chongqing Changan Automobile Company Limited Semi-annual Report 2014
Cash paid relating to other financing activities
Sub-total of cash outflows 3,420,866,458.31 1,399,538,579.39
Net cash flows from financing activities -3,420,866,458.31 -1,399,538,579.39
IV. EFFECT OF CHANGES IN EXCHANGE RATE ON
CASH
V. NET INCREASE IN CASH AND CASH
3,092,381,171.51 2,280,783,667.00
EQUIVALENTS
Add: Opening balance of cash and cash equivalents 3,290,584,684.00 3,081,165,146.84
VI. CLOSING BALANCE OF CASH AND CASH
6,382,965,855.51 5,361,948,813.84
EQUIVLANT
36
Chongqing Changan Automobile Company Limited Semi-annual Report 2014
7、Consolidated statement of changes in shareholders’ equity
Current period
Equity attributable to owners
Items Less:
Special General
Treasur Minority interest Total equity
Share capital Capital reserves reserve Surplus reserves reserve Retained earnings Others
y
s s
shares
I. At end of last 167096
4,662,886,108.00 3,078,557,394.14 0 1,816,272,976.53 0 9,233,857,503.02 -14,890,520.83 -138,401,842.19 18,639,952,585.69
year 7.02
Add: Accounting policy
0
changes
Amendment of prior
0
error
Others 775528610.9 -690266354.6 85262256.23
II. At beginning of 167096
4,662,886,108.00 3,854,086,004.99 0 1,816,272,976.53 0 8,543,591,148.40 -14,890,520.83 -138,401,842.19 18,725,214,841.92
year 7.02
III. Changes during 206325
0 -460,489,299.23 0 0 0 3,160,696,071.45 716,558.75 -12,265,183.82 2,690,721,399.38
the year (－” means less) 2.23
I) Net profit 3,628,092,998.93 -12,265,183.82 3,615,827,815.11
II) Other
-62,183,303.33 716,558.75 -61,466,744.58
comprehensive income
Subtotal of I) and II) 0 -62,183,303.33 0 0 0 0 3,628,092,998.93 716,558.75 -12,265,183.82 3,554,361,070.53
III) Input by investors
0 -398305995.9 0 0 0 0 0 0 0 -398305995.9
and decrease in capital
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
1．Capital input by investors 0
2 ． Equity-settled share-based
0
payment
3．Others -398305995.9 -398305995.9
IV) Distribution of
0 0 0 0 0 0 -467,396,927.48 0 0 -467,396,927.48
profits
1．Pick-up of surplus reserves 0
2．Pick-up of general reserves 0
3．Distribution to owners -467,396,927.48 -467,396,927.48
4．Others 0
V) Internal transfer
0 0 0 0 0 0 0 0 0 0
of shares
1．Capital reserves transfer to
0
share capital
2 ． Capital increase from
0
surplus reserve
3 ． The deficit covered by
0
surplus reserve
4．Others 0
206325
0 0 0 0 0 0 0 0 2063252.23
VI) Special reserve 2.23
174091
17409112.53
1．Pick-up in current period 12.53
2．Used in current period -15345 -15345860.3
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
860.3
VII) Others 0
373421
4,662,886,108.00 3,393,596,705.76 0 1,816,272,976.53 0 11,704,287,219.85 -14,173,962.08 -150,667,026.01 21,415,936,241.30
IV. At end of year 9.25
Prior period
Current period(Restated)
Equity attributable to owners
Items Less:
Special General
Treasur Minority interest Total equity
Share capital Capital reserves reserve Surplus reserves reserve Retained earnings Others
y
s s
shares
I. At end of last
4,662,886,108.00 3,088,935,360.43 0 0 1,441,483,901.26 0 6,335,790,529.86 -16,160,551.29 -122,007,625.09 15,390,927,723.17
year
Add: Business combination
involving entities under 0
common control
Add: Accounting policy changes 0
Amendment of prior error 0
Others 0
II. At beginning
4,662,886,108.00 3,088,935,360.43 0 0 1,441,483,901.26 0 6,335,790,529.86 -16,160,551.29 -122,007,625.09 15,390,927,723.17
of year
III. Changes during 167096
0.00 -10,377,966.29 0 374,789,075.27 0 2,898,066,973.16 1,270,030.46 -16,394,217.10 3,249,024,862.52
the year (－” means less) 7.02
I) Net profit 3,505,640,520.04 -37,148,170.38 3,468,492,349.66
II) Other 19,403,987.00 1,270,030.46 20,674,017.46
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
comprehensive income
Subtotal of I) and II) 0 19,403,987.00 0 0 0 0 3,505,640,520.04 1,270,030.46 -37,148,170.38 3,489,166,367.12
III) Input by
0.00 -29,781,953.29 0 0 0 0 0 0 20753953.28 -9,028,000.01
investors and decrease in capital
1．Capital input by investors 20753953.28 20,753,953.28
2．Equity-settled share-based
0
payment
3．Others -29781953.29 -29781953.29
IV) Distribution of
0 0 0 0 374,789,075.27 0 -607,573,546.88 0 0 -232,784,471.61
profits
1．Pick-up of surplus reserves 374,789,075.27 -374,789,075.27 0
2．Pick-up of general reserves 0.00
3．Distribution to owners -232784471.6 -232784471.6
4．Others 0
V) Internal
0 0 0 0 0 0 0 0 0 0
transfer of shares
1．Capital reserves transfer to
0
share capital
2 ． Capital increase from
0
surplus reserve
3 ． The deficit covered by
0
surplus reserve
4．Others 0
VI) Special reserve 0 0 0 167096 0 0 0 0 0 1670967.02
40
Chongqing Changan Automobile Company Limited Semi-annual Report 2014
7.02
284312
28431299.68
1．Pick-up in current period 99.68
-26760
-26760332.66
2．Used in current period 332.66
VII) Others 0
167096
4,662,886,108.00 3,078,557,394.14 0 1,816,272,976.53 0 9,233,857,503.02 -14,890,520.83 -138,401,842.19 18,639,952,585.69
IV. At end of year 7.02
8、Statement of changes in shareholders’ equity
Current period
Items Less: Treasury Special General
Share capital Capital reserves Surplus reserves Retained earnings Total equity
shares reserves reserves
I. At end of last year 4,662,886,108.00 3,366,723,267.88 0.00 0.00 1,816,272,976.53 0.00 10,645,127,982.64 20,491,010,335.05
Add: Accounting policy changes 0.00
Amendment of prior error 0.00
Others 0.00
II. At beginning of year 4,662,886,108.00 3,366,723,267.88 0.00 0.00 1,816,272,976.53 0.00 10,645,127,982.64 20,491,010,335.05
III. Changes during the year (－”
0.00 -419,126,745.90 0.00 61,739.42 0.00 0.00 3,268,155,374.39 2,849,090,367.91
means less)
I) Net profit 3,735,552,301.87 3,735,552,301.87
II) Other comprehensive income -20,820,750.00 -20,820,750.00
Subtotal of I) and II) 0.00 -20,820,750.00 0.00 0.00 0.00 0.00 3,735,552,301.87 3,714,731,551.87
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
III) Input by investors and decrease
0.00 -398,305,995.90 0.00 0.00 0.00 0.00 0.00 -398,305,995.90
in capital
1．Capital input by investors 0.00
2．Equity-settled share-based payment 0.00
3．Others -398,305,995.90 -398,305,995.90
IV) Distribution of profits 0.00 0.00 0.00 0.00 0.00 0.00 -467,396,927.48 -467,396,927.48
1．Pick-up of surplus reserves 0.00
2．Pick-up of general reserves 0.00
3．Distribution to owners -467,396,927.48 -467,396,927.48
4．Others 0.00
V) Internal transfer of shares 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1．Capital reserves transfer to share capital 0.00
2．Capital increase from surplus reserve 0.00
3．The deficit covered by surplus reserve 0.00
4．Others 0.00
VI) Special reserve 0.00 0.00 0.00 61,739.42 0.00 0.00 0.00 61,739.42
10,260,000.0
10,260,000.00
1．Pick-up in current period 0
-10,198,260.
-10,198,260.58
2．Used in current period 58
VII) Others 0.00
IV. At end of year 4,662,886,108.00 2,947,596,521.98 0.00 61,739.42 1,816,272,976.53 0.00 13,913,283,357.03 23,340,100,702.96
Prior period
42
Chongqing Changan Automobile Company Limited Semi-annual Report 2014
Prior period
Items
Share capital Share capital Share capital Share capital
I. At end of last year 4,662,886,108.00 3,351,635,767.88 0 0 1,441,483,901.26 0 7,504,810,776.85 16,960,816,553.99
Add: Accounting policy changes 0
Amendment of prior error 0
Others 0
II. At beginning of year 4,662,886,108.00 3,351,635,767.88 0 0 1,441,483,901.26 0 7,504,810,776.85 16,960,816,553.99
III. Changes during the year (－”
means less) 0.00 15,087,500.00 0 0 374,789,075.27 0 3,140,317,205.79 3,530,193,781.06
I) Net profit 3,747,890,752.67 3,747,890,752.67
II) Other comprehensive income 15,087,500.00 15,087,500.00
Subtotal of I) and II) 0 15,087,500.00 0 0 0 0 3,747,890,752.67 3,762,978,252.67
III) Input by investors and decrease
in capital 0.00 0.00 0 0 0 0 0 0.00
1．Capital input by investors 0.00
2．Equity-settled share-based payment 0
3．Others 0
IV) Distribution of profits 0 0 0 0 374,789,075.27 0 -607,573,546.88 -232,784,471.61
1．Pick-up of surplus reserves 374,789,075.27 -374,789,075.27 0
2．Pick-up of general reserves 0
3．Distribution to owners -232,784,471.61 -232,784,471.61
4．Others 0
V) Internal transfer of shares 0 0 0 0 0 0 0 0
43
Chongqing Changan Automobile Company Limited Semi-annual Report 2014
1．Capital reserves transfer to share capital 0
2．Capital increase from surplus reserve 0
3．The deficit covered by surplus reserve 0
4．Others 0
VI) Special reserve 0 0 0 0 0 0 0 0
1．Pick-up in current period 16500000 16500000
2．Used in current period -16500000 -16500000
VII) Others 0
IV. At end of year 4,662,886,108.00 3,366,723,267.88 0 0 1,816,272,976.53 0 10,645,127,982.64 20,491,010,335.05
44
Chongqing Changan Automobile Company Limited Semi-annual Report 2014
三、Corporate information
Chongqing Changan Automobile Company Limited (hereafter referred to as the “Company”) was established by
China Changan Automobile Group (hereafter referred to as the “Changan Group”) as the individual originator on
31 October 1996. The company was set up using the groups net asset relating to the operation of mini cars and
engine, the shares its owned in Chongqing Changan Suzuki company limited (506,190,000 shares) and the fund
raising from the issuance of 250,000,000 foreign capital stock (B shares), with total share capital of
RMB756,190,000. The Legal Representatives Operating License issued by Chongqing Industrial and Commercial
Administrative Bureau is Yu-Jing No. 28546236-3.
With the approval of China securities regulatory commission, the company initially floated on share market on 19
May 1997 by issuing120,000,000 common shares(A share) to the public. The offering increased the total share
capital to RMB876,190,000.
On 26 June 1998, the Company issued 4 shares for each 10 shares to existing shareholders of the original
876,190,000 shares. The issuance was made from capital common reserve and increased the total share capital to
RMB1,226,666,000.
On 26 May 2004, the Company offered 2 bonus shares for each 10 shares holding by existing shareholder which
increased the total share capital from RMB1,226,666,000 to RMB1,471,999,200.
On 26 August 2004, with the approval of China securities regulatory commission, the Company offered
148,850,000 common shares (A share) to the market which increased the total share capital to RMB1,620,849,200.
In December 2005, China South Industries Group Corporation (hereafter referred to as the “South Group”), the
ultimate parent company, used the common share (850,399,200 shares) owned by its subsidiary of Changan Group,
as part of the investment to established China South industries Motor Company (hereafter referred to as ”South
Industries Motor”). The share occupied 52.46% of the Companys total share capital. Therefore, South industries
Motor became the parent company of Chongqing Changan. On 30 March 2006, the transfer of share was registered
by Shenzhen branch of China Securities Depository and Clearing Corporation limited.
In May 2006, South Industries Motor issued 3.2 bonus shares for each 10 shares to the shareholders at the
implementation date of reformation of non-tradable shares for their non-tradable shares according to the ”Reply of
the problems related the reformation of non-tradable shares of Chongqing Changan Automobile Co., Ltd.”
(2006[442] Guo Zi Chan Quan) issued by the State-owned Assets Supervision and Administration Commission of
State Council and the related shareholders meeting. After the reformation of non-tradable shares, South Industries
Motor occupied 45.548% of equity through 738,255,200 common shares.
On 15 May 2007, the Company issued 2 bonus shares for each 10 shares to existing shareholders which increased
the total share capital from RMB1,620,849,200 to RMB1,945,019,040 .
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
On 30 May 2008, the Company issued 2 shares for each 10 shares owned by existing shareholders. The total
issuance of 389,003,808 shares was made from common reserve in capital. After this issuance, total share capital
increased to RMB2,334,022,848.
On 3 March 2009, the secondary temporary shareholder meeting was held. The board resolution about the
reacquisition of foreign capital stock listed in China was approved in the meeting. For the buyback period ended
on 3 March 2010, the company repurchased 8,365,233 shares in total, equal to 0.3584% of total capital. On 17
March 2010, the company cancelled the share and the share capital decreased to RMB2,325,657,615.
On 1 July 2009, with the approval of State Administration for Industry and Commercial, South industries Motor,
the parent company changed its name as China Changan Automobile Industry (Group) Co., Ltd. (hereafter refer to
as the “China Changan”).
With the approval of China securities regulatory commission on 14 January 2011, the Company issued
360,166,022 common shares (A share), which increased the total share capital to RMB2,685,823,637. After the
completion of the issuance, China Changan hold 1,163,787,489 shares of the Company's common stock, and the
held equity interest decreased to 43.33%.
On 18 May 2011, the Company issued 4 bonus shares for each 10 shares and issued 4 shares to 10 shares from
common reserve in capital to existing shareholders. After this issuance, the total share capital has been increased to
RMB4,834,482,546.
On 21 December 2011, the first temporary shareholder meeting was held. The board resolution about the
reacquisition of foreign capital stock listed in China was approved in the meeting. For the buyback period ended
on 20 March 2012, the company repurchased 171,596,438 shares in total, equal to 3.55% of total capital. On 30
March 2012, the company cancelled the share and the share capital decreased to RMB4,662,886,108.
On 24 August 2012, the Company obtained a new business license with registration number of 500000000005061.
The Company and its subsidiaries (hereafter referred to as the “Group”) mainly focus on the manufacturing and
sales of automobile (include cars), automobile engine, spare parts.
四、Main accounting policies,accounting eatimates and errors of previous period
1、Basis of preparation
The financial statements have been prepared in accordance with Accounting Standards for Business Enterprises-Basic Standard
and 38 specific standards issued in February 2006, and the implementation guidance, interpretations and other relevant provisions
issued subsequently by the MOF (correctly referred to as “Accounting Standards for Business Enterprises”).
The financial statements are presented on a going concern basis.
46
Chongqing Changan Automobile Company Limited Semi-annual Report 2014
The Group maintains its accounting records on an accrual basis. Except for certain financial instruments, assets are recorded at
actual cost when they are acquired. If the assets are impaired, the corresponding provisions should be made accordingly. The
assets are recorded at assessed value by State-owned Assets Supervision and Administration Commission of the State Council,
which are invested into the Group in the reforming period.。
2、Statement of compliance with Accounting Standards for Business Enterprises
The financial statements present fairly and fully, the financial position of the Company as at June 30, 2014 and the financial results
and the cash flows for 1-6 month then ended in accordance with Accounting Standards for Business Enterprises。
3、Accounting year
The accounting year of the Group is from 1 January to 31 December of each calendar year。
4、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 the
reporting period, the foreign currency financial statements are translated into the reporting currency of the Company of RMB.
5、Under the same control and not under the same control enterprise merger accounting methods
（1）Business combination involving entities under common control
A business combination involving entities under common control is a business combination in which all of the combining entities
are ultimately controlled by the same party or parties both before and after the combination, and that control is not transitory.
For a business combination involving entities under common control, the party that, on the combination date, obtains control of
another entity participating in the combination is the acquiring party, while that other entity participating in the combination is a
party being acquired. Combination date is the date on which the acquiring party effectively obtains control of the party being
acquired.
Assets and liabilities that are obtained by the acquiring party in a business combination shall be measured at their carrying
amounts at the combination date as recorded by the party being acquired. The difference between the carrying amount of the
net assets obtained and the carrying amount of the consideration paid for the combination (or the aggregate face value 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。
（2）Business combination involving entities not under common control
A business combination involving entities not under common control is a business combination in which all of the combining
entities are not ultimately controlled by the same party or parties both before and after the combination. For a business
combination involving entities not under common control, the party that, on the acquisition date, obtains control of another entity
participating in the combination is the acquirer, while that other entity participating in the combination is the acquiree.
47
Chongqing Changan Automobile Company Limited Semi-annual Report 2014
Acquisition date is the date on which the acquirer effectively obtains control of the acquiree.
The acquirer shall measure the acquiree’s identifiable assets, liabilities and contingent liabilities acquired in the business
combination at their fair values on the acquisition date。
Where the sum of the fair value of the consideration transferred (or the fair value of the issued equity securities) and the fair value
of the acquirer’s previously held equity interest in the acquiree exceeds the acquirer’s interest in the fair value of the acquiree’s
identifiable net assets, the difference shall be recognized as goodwill and measured at cost less any accumulated impairment
losses. Where the sum of the fair value of the consideration transferred (or the fair value of the issued equity securities) and the
fair value of the acquirer’s previously held equity interest in the acquiree is less than the acquirer’s interest in the fair value of the
acquiree’s identifiable net assets, the difference shall be accounted for according to the following requirements: (i) the acquirer
shall reassess the measurement of the fair values of the acquiree’s identifiable assets, liabilities and contingent liabilities and
measurement of the fair value of the consideration transferred (or the fair value of the issued equity securities) and the fair value of
the acquirer’s previously held equity interest in the acquiree; (ii) if after that reassessment, the sum of the fair value of the
consideration transferred (or the fair value of the issued equity securities) and the fair value of the acquirer’s previously held equity
interest in the acquiree is still less than the acquirer’s interest in the fair values of the acquiree’s identifiable net assets, the acquirer
shall recognize the remaining difference immediately in the income statement for the current period
6、Consolidated financial statements
The scope of consolidation of consolidated financial statements is determined based on control, and includes the financial
statements of the Company and its subsidiaries for the year ended 30 June 2013. A subsidiary is an enterprise or entity that is
controlled by the Group.
Consolidated financial statements are prepared using uniform reporting dates and accounting policies. All significant
intercompany transactions, balances, unrealized profit and dividends within the Group are eliminated on consolidation.
When the current loss belong to minorities of the subsidiary exceeds the beginning equity of the subsidiary belong to minorities,
the exceeded part will still deduct the equity belong to minorities. The changes of the equity belong to minorities without loss of
control is regarded as capital transaction。
With respect to subsidiaries acquired through business combinations involving entities not under common control, the operating
results and cash flows of the acquiree should be included in the consolidated financial statements, from the day that the Group
gains control, till the Group ceases the control of it. While preparing the consolidated financial statements, the acquirer should
adjust the subsidiary’s financial statements, on the basis of the fair values of the identifiable assets, liabilities and contingent
liabilities recognized on the acquisition date.
With respect to subsidiaries acquired through business combinations involving entities under common control, the operating
results and cash flows of the acquiree should be included in the consolidated financial statements from the beginning of the period
in which the combination occurs
7、The determination of 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,
highly liquid investments held by the Company, that are readily convertible to known amounts of cash and which are subject to an
insignificant risk of changes in value。
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
8、Foreign currency translation
（1）foreign currency transaction
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
currency amount at the spot exchange rate as at the transaction dates. Foreign currency monetary items are translated using the
spot exchange rate quoted by the People’s Bank of China at the balance sheet date. The exchange gains or losses arising from
occurrence of transactions and exchange of currencies, except for those relating to foreign currency borrowings specifically for
construction and acquisition of fixed assets capitalized, are dealt with in the profit and loss accounts. Non-monetary foreign
currency items measured at historical cost remain to be translated at the spot exchange rate prevailing on the transaction date,
and the amount denominated in the functional currency should not be changed. Non-monetary foreign currency items
measured at fair value should be translated at the spot exchange rate prevailing on the date when the fair values are determined.
The exchange difference thus resulted should be charged to the current income or capital surplus account of the current period。
（2）Conversion of foreign currency financial statements
When preparing consolidated financial statements, the financial statements of the subsidiaries presented in foreign currencies are
translated into Renminbi as follows: asset and liability accounts are translated into Renminbi at exchange rates ruling at the
balance sheet date; shareholders’ equity accounts other than retained profits are translated into Renminbi at the applicable
exchange rates ruling at the transaction dates; items in income statement other than profit appropriation statement are
translated into Renminbi at spot exchange rates on transaction occurrence; total difference between translated assets and
translated liabilities and shareholders’ equity is separately listed as “foreign currency exchange differences” below retained profits.
The translation difference arising from the settlement of oversea subsidiaries is charged to the current liquidation profit and loss in
proportion to the settlement ratio of the assets concerned.
Foreign currency cash flows and the cash flows of foreign subsidiaries should be translated using the average exchange rate
prevailing on the transaction month during which the cash flows occur. The amount of the effect on 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 of
another entity。
（1）The classification of financial instruments
Financial assets are, on initial recognition, classified into the following categories: financial assets at fair value through profit or
loss, held-to-maturity investments, loans and receivables, available-for-sale financial assets, and the derivatives designated as
effective hedging instrument. The classification of financial assets is determined on initial recognition. A financial asset is
recognized initially at fair value. In the case of financial assets at fair value through profit or loss, relevant transaction costs are
directly charged to the profit and loss of the current period; transaction costs relating to financial assets of other categories are
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
included in the amount initially recognized。
（2）Recognition basis and measurement of financial instruments
The confirmation of financial instruments
The Group recognizes a financial asset or a financial liability on its balance sheet, when the Group becomes a party to the
contractual provision of the instrument.。
Financial assets classification and measurement
Financial assets are, on initial recognition, classified into the following categories: financial assets at fair value through profit or
loss, held-to-maturity investments, loans and receivables, available-for-sale financial assets, and the derivatives designated as
effective hedging instrument. The classification of financial assets is determined on initial recognition. A financial asset is
recognized initially at fair value. In the case of financial assets at fair value through profit or loss, relevant transaction costs are
directly charged to the profit and loss of the current period; transaction costs relating to financial assets of other categories are
included in the amount initially recognized。
he subsequent measurement of financial liabilities depends on their classification as follows:
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held for trading and those designated upon initial
recognition as at fair value through profit or loss. A financial asset held for trading is the financial asset that meets one of the
following conditions: the financial asset is acquired for the purpose of selling it in a short term; the financial asset is a part of a
group of identifiable financial instruments that are collectively managed, and there is objective evidence indicating that the
enterprise recently manages this group for the purpose of short-term profits; the financial asset is a derivative, except for a
derivative that is designated as effective hedging instrument, or a financial guarantee contract, or a derivative that is linked to and
must be settled by delivery of an unquoted equity instrument (without a quoted price from an active market) whose fair value
cannot be reliably measured. For such kind of financial assets, fair values are adopted for subsequent measurement. All the
realized or unrealized gains or losses on these financial assets are recognized in profit or loss for the current period. Dividend or
interest income related to financial assets at fair value through profit or loss is recognized in profit or loss for the current period.
Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturity that an
entity has the positive intention and ability to hold to maturity. Such kind of financial assets are subsequently measured at
amortized cost using the effective interest method. Gains or losses arising from derecognition, impairment or amortization are
recognized in profit or loss for the current period.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active
market. Such kind of financial assets are subsequently measured at amortized cost using the effective interest method. Gains or
losses arising from derecognition, impairment or amortization are recognized in profit or loss for the current period.
Available-for-sale financial assets
Available-for-sale financial assets are those non-derivative financial assets that are designated as available for sale or are not
classified as the above financial assets. After initial recognition, available-for-sale financial assets are measured at fair value. The
premium/discount is amortized using effective interest method and recognized as interest income or expense. A gain or loss
arising from a change in the fair value of an available-for-sale financial asset is recognized in other comprehensive income as a
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
component of capital reserve, except for impairment losses and foreign exchange gains and losses resulted from monetary
financial assets, until the financial asset is derecognized or determined to be impaired, at which time the accumulated gain or loss
previously recognized in capital reserve is removed from capital reserve and recognized in profit or loss for the current period.
Interests and dividends relating to an available-for-sale financial asset are recognized in profit or loss for the current period.
Classification and measurement of financial liabilities
The Group’s financial liabilities are, on initial recognition, classified into the following categories: financial liabilities at fair value
through profit or loss, other financial liabilities, and the derivatives designated as effective hedging instrument. The classification
of financial liabilities is determined on initial recognition. For financial liabilities at fair value through profit or loss, relevant
transaction costs are directly recognized in profit or loss for the current period, and transaction costs relating to other financial
liabilities are included in the initial recognition amounts.
The subsequent measurement of financial liabilities depends on their classification as follows:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and those designated as at fair
value through profit or loss. A financial liability held for trading is the financial liability that meets one of the following conditions:
the financial liability is assumed for the purpose of repurchasing it in a short term; the financial liability is a part of a group of
identifiable financial instruments that are collectively managed, and there is objective evidence indicating that the enterprise
recently manages this group for the purpose of short-term profits; the financial liability is a derivative, except for a derivative that
is designated and effective hedging instrument, or a financial guarantee contract, or a derivative that is linked to and must be
settled by delivery of an unquoted equity instrument (without a quoted price form an active market) whose fair value cannot be
reliably measured. For such kind of financial liabilities, fair values are adopted for subsequent measurement. All the realized or
unrealized gains or losses on these financial liabilities are recognized in profit or loss for the current period 。
Other financial liabilities
After initial recognition, these financial liabilities are measured at amortized cost using the effective interest method.
Derivative financial instruments
Derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and
are subsequently revaluated at fair value. Derivatives are carried as assets when the fair value is positive and as liabilities when
the fair value is negative. An investment in equity instruments do not have a quoted market price in an active market, or
derivatives linked to such equity instruments, is measured at cost because its fair value cannot be measured reliably.
Any gains or losses arising from changes in fair value on derivatives that do not qualify for hedge accounting are directly
recognized in the income statement.
（3）The transfer of a financial asset recognition basis and measurement methods
If the Group transfers substantially all the risks and rewards of ownership of the financial asset, the Group derecognizes the
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
financial asset; and if the Group retains substantially all the risks and rewards of the financial asset, the Group does not
derecognize the financial asset.
If the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset, the Group
determines whether it has retained control of the financial asset. In this case: (i) it the Group has not retained control, it
derecognizes the financial asset and recognize separately as assets or liabilities any rights and obligations created not retained in
the transfer; (ii) if the Group has retained control, it continues to recognize the financial asset to the extent of its continuing
involvement in the transferred financial asset and recognizes an associated liability。
The Group derecognizes a financial asset (or part of a financial asset, or part of a group of similar financial assets) when the
following conditions are met:
(1) the rights to receive cash flows from the asset have expired;
(2) the Group transferred the rights to receive cash flows from the asset, or has assumed an obligation to pay the received
cash flows in full without material delay to a third party under a “pass-through” arrangement; and either (a) has
transferred substantially all the risks and rewards of the asset, or (b) has neither transferred nor retained substantially all
the risks and rewards of the asset, but has transferred control of the asset.
If the underlying obligation of a financial liability has been discharged or cancelled or has expired, the financial liability is
derecognized. If an existing financial liability is replaced by the same creditor, with a new financial liability that has substantially
different terms, or if the terms of an existing financial liability are substantially revised, such replacement or revision is accounted
for as the derecognition of the original liability and the recognition of a new liability, and the difference thus resulted is recognized
in profit or loss for the current period.
When buy or sell financial instruments under a normal way, financial instruments are recognized or derecognized according to the
transaction date accounting. A normal way to buy or sell financial instruments refers to, according to the contract terms, receive or
deliver financial instruments within the period as required by legal regulation or generally accepted guidelines. Transaction date
refers to the date when the Group committed to buy or sell financial instruments.
（4）Financial liability condition recognition has been stopped
If the liabilities of a financial liability has met, cancellation or expires, the financial liability for recognition has been stopped. If the
existing financial liability is the same almost completely different terms and conditions of the creditors to essentially replaced by
the other financial liabilities, or almost all the terms of the existing debt is substantial modification, such replace or modify the
original liabilities and confirm the new liabilities as terminated the recognition processing, balance into the profits and losses of
the current period.
（5）The determination of the fair value of financial assets and financial liabilities
If there is an active market for a financial asset or financial liability, the Group determines the fair value by using the quoted prices.
If no active market exits for a financial instrument, the Group establishes fair value by using a valuation technique. Valuation
techniques include using recent arm’s length market transactions between knowledgeable, willing parties’ reference to the current
fair value of another instrument that is substantially the same, discounted cash flow analysis and option pricing models .
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
（6）Financial assets (excluding receivables) impairment test method, the impairment provision method
The Group assesses the carrying amount of a financial asset, at the balance sheet date. If there is objective evidence that the
financial asset is impaired, the Group makes provision for the impairment loss. Objective evidence that a financial asset is impaired
is evidence arising from one or more events that occurred after the initial recognition of the asset and that event has an impact on
the estimated future cash flows of the financial asset which can be reliably estimated.
Financial assets carried at amortized cost
If objective evidence shows that the financial assets carried at amortized cost are impaired, the carrying amount of the financial
asset shall be reduced to the present value of the estimated future cash flow (excluding future credit losses that have not been
incurred). The amount of reduction is recognized as an impairment loss in the income statement. Present value of estimated
future cash flow is discounted at the financial asset’s original effective interest rate and includes the value of any related collateral 。
f a financial asset is individually significant, the Group assesses the asset individually for impairment, and recognizes the amount
of impairment in the income statement if there is objective evidence of impairment. For a financial asset that is not individually
significant, the Group can include the asset in a group of financial assets with similar credit risk characteristics and collectively
assess them for impairment. For financial assets that are not impaired upon individual tests (including financial assets that are
individually significant or insignificant), impairment tests should be conducted on them again by including them in the group of
financial assets. Assets for which an impairment loss is individually recognized will not be included in a collective assessment of
impairment.
If, subsequent to the recognition of an impairment loss on a financial asset carried at amortized cost, there is objective evidence of
a recovery in value of the financial asset which can be relatedobjectively to an event occurring after the impairment was
recognized, the previously recognized impairment loss is reversed and recognized in the income statement. However, the reversal
shall not result in a carrying amount of the financial asset that exceeds what the amortized cost would have been had the
impairment not been recognized at the date the impairment is reversed.
Available-for-sale financial assets
When there is objective evidence that the asset is impaired, the cumulative loss from declines in fair value that had been
recognized directly in capital reserve are removed from equity and recognized in the income statement. The amount of the
cumulative loss that is removed from capital reserves and recognized in the income statement (net of any principal repayment and
amortization) and current fair value, less any impairment loss on that financial asset previously recognized in the income
statement.
In the case of equity investments classified as available for sale, objective evidence would include a significant or prolonged
decline in the fair value of an investment below its cost. The determination of what is “significant” or ''prolonged” requires
judgement. “Significant” is evaluated against the original cost of the investment and “prolonged” against the period in which the
fair value has been below its original cost. Where there is evidence of impairment, the cumulative loss – measured as the
difference between the acquisition cost and the current fair value, less any impairment loss on that investment previously
recognised in the income statement – is removed from other comprehensive income and recognised in the income statement.
Impairment losses on equity instruments classified as available for sale are not reversed through the income statement. Increases
in their fair value after impairment are recognised directly in other comprehensive income.
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
Impairment losses on debt instruments are reversed through the income statement if the increase in fair value of the instruments
can be objectively related to an event occurring after the impairment loss was recognised in the income statement.
Financial assets carried at cost
If objective evidence shows that the financial assets carried at cost are impaired, the difference between the present value
discounted at the prevailing rate of return of similar financial assets and the book value of the financial asset are provided as a
provision. The impairment loss recognized cannot be reversed.
For long-term equity investments, which are accounted for according to the cost method set out by Accounting Standards for
Business Enterprises No. 2 – Long-term Equity Investments and has no quoted market price in active markets, and whose fair
values cannot be reliably measured, their impairment should also be treated in accordance with the above principle.
10、Confirm the standard and the depreciation method of receivables provision for bad debts
（1）Accounts receivable which is individually significant and analyzed individually for provision
Criterion for individually significant items and Accounts receivable balance greater than RMB15 million due from
analyzed individually for provision non-related parties
Method for for provision A provision of the difference between recoverable amount and book value is
recognized based on individually analysis.
（2）Accounts receivable analyzed by group for provision
The depreciation
group Criterion for group
method
Group 1 Accounts receivable other than individually significant items due from
aging analysis
non-related parties
Group 2 others Accounts receivable due from related parties
the provision analyzed according to aging analysis
Accounts receivable Other receivables
Aging Provision percentage Provision percentage (%)
(%)
Within 6 months 0% 0%
6 to 12 months 5% 5%
1 to 2 years 10% 10%
2 to 3 years 30% 30%
3 to 4 years 50% 50%
4 to 5 years 80% 80%
Above 5 years 100% 100%
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
（3）Accounts receivable which is individually insignificant but analyzed individually for provision
Criterion for individually analysis There is objective evidence that the accounts receivable due from non-related parties is
for provision impaired and the future recoverable possibility is little.
Method for provision A provision of the difference between recoverable amount and book value is recognized
individually.
11、Inventory
（1）Classification of inventory
Inventory includes raw materials, goods in transit, work in progress, finished goods, consigned processing materials, and low-value
consumables and spare parts。
（2）Measurement of issued inventory
Valuation method: weighted average method
Inventory is initially carried at the actual cost. Inventory costs comprise all costs of purchase, costs of conversion and other costs
incurred in bringing the inventory to its present location and condition.
Weighted average method is assigned to the determination of actual costs of inventories. One-off writing off method is adopted in
amortization of low-value consumables.。
（3）Net realizable value of inventory and inventory provision
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
realizable value, provision for the inventory should be made through profit or loss. If factors that resulted in the provision for the
inventory have disappeared and made the net realizable value higher than their book value, the amount of the write-down should
be reversed, to the extent of the amount of the provision for the inventory, and the reversed amount should be recognized in the
income statement for the current period.
Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the
estimated costs necessary to make the sale. The impairment provision should be made on a basis of each item of inventories
according to the difference between cost and net realizable value. For large numbers of inventories at relatively low unit prices,
the provision for loss on decline in value of inventories should be made by category.
（4）Counting method of inventory
Inventory system: the perpetual inventory system
The Group applies a perpetual counting method of inventory。
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
（5）The amortization method of low-value products and packages
Low-value consumable
Amortization method: an amortization method
Packing materials
Amortization method: an amortization method
12、Long-term equity investments
（1）Initial recognition and measurement
The long-term investments are initially recorded at cost on acquisition. Long-term investments acquired from business
combination under common control shall be initially measured at the carrying value of the held interest of the party being
acquired. Long-term investments acquired from business combination not under common control shall be initially measured at
the cost (or, the sum of the cost and the carrying value of the previously held equity interest in the acquire for the business
combination achieved by stages), which include the fair value of the consideration paid, the liabilities beard and the issued equity
instrument. Long-term investments acquired not from business combination are initially measured at 1)the consideration
together with the cost necessary incurred; 2) the fair value of the equity instruments; and 3) the consideration agreed in the
investment agreement by the investors, otherwise the agreed consideration were not fair.
The Group adopted cost method to account for long-term equity investments, when the Group has not control of the investee
enterprise, or does not have jointly control or significant influence on the investee enterprise, the fair value of which cannot be
reliably measured due to the fact they are not quoted in an active market. The Company adopted cost method to account for
long-term investments in the subsidiaries in the separate financial statements of the Company. 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. Profit or cash dividends
declared by the invested enterprise are recognized as investment income for the current period, except the declared but unpaid
cash dividends and interests included in the initial cost. The Group should assess the impairment of the long-term
investments according with the impairment policy of assets.
The equity method is applied to account for long-term equity investments, when the Group has jointly control, or significant
influence on the investee companies. Joint control is the contractually agreed sharing of control over an economic activity, and
exists only when the strategic financial and operating decisions relating to the activity require the unanimous consent of the
parties sharing control (the venturers). Significant influence is the power to participate in the financial and operating policy
decisions of an economic activity but is 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 in the fair values of the investee’s identifiable net assets at the acquisition date, the difference between them is accounted
for as an initial cost. As to the initial investment cost is less than the investing enterprise’s interest in the fair values of the
investee’s identifiable net assets at the acquisition date, the difference shall be charged to the income statement for the current
period, and the cost of the long-term equity investment shall be adjusted accordingly。
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
（2）Subsequent measurement and recognition of investment income or loss
Under equity method, the Group recognizes its share of post-acquisition equity in the investee enterprise for the current period as
a gain or loss on investment, and also increases or decreases the carrying amount of the investment. When recognizing its share in
the net profit or loss of the investee entities, the Group should, based on the fair values of the identifiable assets of the investee
entity when the investment is acquired, in accordance with the Group’s accounting policies and periods, after eliminating the
portion of the profits or losses, arising from internal transactions with joint ventures and associates, attributable to the investing
entity according to the share ratio (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 the extent that the Group’s share of the profit or cash dividend declared to be distributed by the
investee enterprise. However, the share of net loss is only recognized to the extent that the book value of the investment is
reduced to zero, except to the extent that the Group has incurred obligations to assume additional losses. The Group shall adjust
the carrying amount of the long-term equity investment for other changes in owners’ equity of the investee enterprise (other than
net profits or losses), and include the corresponding adjustments in equity, which should be realized through profit or loss in
subsequent settlement of the respective long-term investment.
On settlement of a long-term equity investment, the difference between the proceeds actually received and the carrying amount
shall be recognized in the income statement for the current period. The income or loss recorded in the equity directly should been
transferred to the current income statement on settlement of the equity investment on the disposal proportion。
（3）Sure of the invested entity has joint control, the basis of a significant impact
Common control, it is to point to in accordance with the contractual stipulations on the mutual control, a certain economic activities,
only in the economic activities related important financial control and the production and business operation decision need to share
investors agreed to exist. Investment enterprises and its parties do joint control over an invested entity, the invested entity as its joint
ventures. Significant impact, refers to the financial and operating policies of an enterprise has the right to participate in
decision-making, but can't control or together with other control policy. Investment enterprise to be able to have significant
influences on an invested entity, the invested entity as its affiliated enterprises。
（4）Impairment of long-term investment
Refer to Notes II, 27 for the details of the impairment testing for subsidiaries, jointly-venture and associates. Refer to Notes II, 9 for
the impairment testing for long-term investment that the fair value of which cannot be reliably measured due to the fact they are
not quoted in an active market.
13、Investment property
nvestment property are properties held to earn rentals or for capital appreciation, or both, including rented land use right, land use
right which is held and prepared for transfer after appreciation, and rented building。
The initial measurement of the investment property shall be measured at its actual cost. The follow-up expenses pertinent to an
investment property shall be included in the cost of the investment property, if the economic benefits pertinent to this real estate
are likely to flow into the enterprise, and, the cost of the investment property can be reliably measured. Otherwise, they should be
included in the current profits and losses upon occurrence.
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
The group adopts the cost method to make follow-up measurement to the investment property. The buildings are depreciated
under straight-line method, The land use right in the amortized using the straight-line method within the use fixed number of year.
Refer to Notes II, 27 for the methods of testing and accruing investment property impairment which is is measured by employing
the cost method.
14、Fixed assets
（1）Recognition of fixed assets
A fixed asset shall be recognized only when the economic benefits associated with the asset will flow to the Group and the cost of
the asset can be measured reliably. Subsequent expenditure incurred for a fixed asset that meet the recognition criteria shall be
included 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 in 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
delivery and handling costs, installation costs and other surcharges。
（2）As basis for fixed assets, valuation method
（3）Depreciation method of fixed assets
Fixed assets are depreciated on straight-line basis. The estimated useful lives, estimated residual values and annual depreciation
rates for each category of fixed assets are as follows：
Category Deprecation period Residual rate (%) Yearly deprecation rate (%)
Buildings 20 to 50 years 3% 2.77%-4.85%
Machinery (Note) 5 to 20 years 3% 4.85%-19.40%
Vehicles 4 to 12 years 3% 8.08%-24.25%
Others 3 to 21 years 3% 4.62%-32.33%
Note: the moulds in machinery
should be depreciated in
units-of-production method
（4）Impairment of fixed assets
Refer to Notes II, 27 for the methods of testing and accruing fixed assets impairment。
（5）Others
The Group reviews the useful life and estimated net residual value of a fixed asset and the depreciation method applied at least at
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
the end of each year and makes adjustments if necessary。
15、Construction in progress
（1）The type of the Construction in progress
The cost of construction in progress is determined according to the actual expenditure for the construction, including all necessary
construction expenditure incurred during the construction period, borrowing costs that should be capitalized before the
construction reaches the condition for intended use and other relevant expenses。
（2）Carry forward for the fixed assets of projects under construction standards and point
Construction in progress is transferred to fixed assets when the asset is ready for its intended use.
（3）the methods of testing and accruing construction in progress impairment.
Refer to Notes II, 27 for the methods of testing and accruing construction in progress impairment。
16、Borrowing costs
（1）The capitalization of the borrowing costs confirm principle
Borrowing costs are interest and other costs incurred by the Group in connection with the borrowing of the funds. Borrowing costs
include interest, amortization of discounts or premiums related to borrowings, ancillary costs incurred in connection with the
arrangement of borrowings, and exchange differences arising from foreign currency borrowings.
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 in which they are incurred. A qualifying asset is an asset
(an item of property, plant and equipment and inventory etc.) that necessarily takes a substantial period of time to get ready for its
intended use of sale
The capitalization of borrowing costs are as part of the cost of a qualifying asset shall commence when:
(a) expenditure for the asset is being incurred;
(b) borrowing costs are being incurred; and
(c) activities that are necessary to prepare the asset for its intended use or sale are in progress.
（2）During the period of capitalization of borrowing costs
Capitalization of borrowing costs shall cease when substantially all the activities necessary to prepare the qualifying asset for its
intended use or sale. And subsequent borrowing costs are recognized in the income statement。
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
（3）Suspended during the period of capitalization
During the construction or manufacture of assets that are qualified for capitalization, if abnormal discontinuance, other than
procedures necessary for their reaching the expected useful conditions, happens, and the duration of the discontinuance is over
three months, the capitalization of the borrowing costs is suspended. Borrowing costs incurred during the discontinuance are
recognized as expense and charged to the income statement of the current period, till the construction or manufacture of the
assets resumes。
（4）The calculation method of capitalization of borrowing costs amount
During the capitalization period, the amount of interest to be capitalized for each accounting period shall be determined as
follows:
(a) 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 or any investment income on the temporary investment of those funds;
(b) 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 over and above the amounts of specific-purpose borrowings.。
17、Intangible assets
（1）Valuation methods of intangible assets
An intangible asset shall be recognized only when the economic benefits associated with the asset will flow to the Group and the
cost of the asset can be measured reliably. Intangible assets are initially measured at cost. The cost of intangible assets acquired in
a business combination is the fair value as at the date of acquisition, if the fair value can be reliably measured。
（2）Service life of the intangible assets with limited service life estimation
The useful life of the intangible assets shall be assessed according to the estimated beneficial period expected to generate
economic benefits. An intangible asset shall be regarded as having an indefinite useful life when there is no foreseeable limit to the
period over which the asset is expected to generate economic benefits for the group。
The useful lives of the intangible assets are as follow：
Item Useful life on the basis
Land use right 22 to 61 years Fixed number of year of the land to use card
Software 2 years The updating cycle of software
Trademark 10 years provided by law
Non-patent technology 5 years Product life cycle
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
（3）Judgment of the intangible assets with uncertain service life
The intangible asset can bring economic benefits to the group according to its terms determine the service life, we can't foresee
the term to bring economic benefits to the group as the uncertain service life of intangible assets. The group has no uncertain
service life of intangible assets.
（4）Intangible assets impairment provision
Refer to Notes II, 27 for the methods of testing and accruing intangible assets。
（5）Division within the company research and development specific standards for the research and
development phase of the project
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 meet all the conditions of (a) it is feasible technically to finish
intangible assets for use or sale; (b) it is intended to finish and use or sell the intangible assets; (c) the usefulness of methods for
intangible assets to generate economic benefits shall be proved, including being able to prove that there is a potential market for
the products manufactured by applying the intangible assets or there is a potential market for the intangible assets itself or the
intangible assets 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 the intangible assets can be reliably measured. Expenses incurred that don’t meet the above requirements
unanimously should be expensed in the income statement of the reporting period.
The Group discriminates between research and development stage with the condition that the project research has been
determined, in which the relevant research complete all the fractionalization of products measurements and final product scheme
under final approval of management.
（6）Calculation of the internal research and development spending
The expenditures incurred before project-determination stage is charged to the current income, otherwise it is recorded as
development cost。
18、Long-term deferred expenses
The long-term deferred expenses represent the payment for the improvement on buildings and other expenses, which have been
paid and should be deferred in the following years. Long-term deferred expenses are amortized on the straight-line basis over the
expected beneficial period and are presented at actual expenditure net of accumulated amortization.。
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
19、Contingent liabilities
（1）Of the estimated debts confirmed standard
Except contingent liability recognized in a business combination, the Group recognizes an contingent liability when the obligation
arising from a contingency meets the following conditions：
- the obligation is a present obligation of the Group;
- it is probable that an outflow of economic benefits from the Group will be required to settle the obligation;
- a reliable estimate can be made of the amount of the obligation.
（2）Measurement method of estimated debts
Contingent liabilities are initially measured according to the current best estimate for the expenditure necessary for the
performance of relevant present obligations, with comprehensive consideration given to factors such as the risks, uncertainty and
time value of money relating to contingencies. The book value of the contingent liabilities should be reviewed at each balance
sheet date. If there is objective evidence showing that the book value cannot reflect the present best estimate, the book value
should be adjusted according to the best estimate。
20、Revenue
（1）From selling goods to confirm the concrete judgment standard of time
Revenue is recognized only when an inflow of economic benefits is probable, the amount of which can be reliably measured, and
all of the following conditions are qualified.
Revenue from the sale of goods
The Group has transferred to the buyer the significant risks and rewards of ownership of the goods; the Group retains neither
continuing management involvement to the degree usually associated with ownership nor effective control over the goods sold;
and the amount of revenue can be measured reliably. The proceeds earned from sales of goods are determined based on the
amount received or receivable as stipulated in the contract or agreement, otherwise the amount is not fair; If the amount received
or receivable as stipulated in the contract or agreement is collected in a defer method, it includes the financing elements and
should be determined according to the fair value of the amount received or receivable as stipulated in the contract or agreement.
Revenue from the rendering of services
When the outcome of a transaction involving the rendering of services can be estimated reliably at the balance sheet date,
revenue associated with the transaction is recognized using the percentage of completion method, or otherwise, the revenue is
recognized to the extent of costs incurred that are expected to be recoverable. The outcome of a transaction involving rendering
of services can be estimated reliably when all of the following conditions are satisfied: the amount of revenue can be measured
reliably; it is probable that the associated economic benefits will flow to the Group; the stage of completion of the transaction can
be measured reliably; and the costs incurred and to be incurred for the transaction can be measured reliably. The Group
determines the stage of completion of a transaction involving the rendering of services by using the proportion of services
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
performed to date to the total services to be performed. The total amount of revenue earned from rendering service are
determined based on the amount received or receivable as stipulated in the contract or agreement, otherwise the amount is not
fair.。
（2）Confirm the assignment of the right to use assets
Interest income
It should be measured based on the length of time for which the Group’s cash is used by others and the applicable effective
interest rate.
Rental income
Rental income from operating leases is recognized by the lesser in the income statement on a straight-line basis over the lease
term.。
21、Government grants
（1）type
A government grant is recognized only when there is reasonable assurance that the entity will comply with any conditions
attached to the grant and the grant will be received. Monetary grants are accounted for at received or receivable amount.
（2）Accounting methods
A government grant is recognized only when there is reasonable assurance that the entity will comply with any conditions
attached to the grant and the grant will be received. Monetary grants are accounted for at received or receivable amount.
Non-monetary grants are accounted for at fair value. If there is no reliable fair value available, the grants are accounted for at
nominal amount. A grant relating to income, which as compensation for future costs, is recognized as deferred income initially,
and as income when the related cost incurs. The grant as compensation for costs already incurred should be recognized as income
for the current period. A grant relating to assets is recognized as deferred income initially, and as income evenly among the useful
life of the related assets. The grant accounted for at nominal amount is recognized as income for the current period.。
22、Deferred income tax assets and deferred income tax liabilities
（1）The basis of a confirmed deferred income tax assets
A deferred tax asset is recognized for deductible temporary differences, carry forward of unused tax credits and unused tax losses,
to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the
carry forward of unused tax credits and unused tax losses can be utilized except:
(1) where the deferred tax asset relating to the deductible temporary differences arises from the initial recognition of an asset
or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
accounting profit nor taxable profit or loss; and
(2) in respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint
ventures, deferred tax assets are only recognized to the extent that it is probable that the temporary differences will
reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized。
（2）The basis of a confirmed deferred income tax liabilities
A deferred tax liability is recognized for all taxable temporary differences, except:
(1) to the extent that the deferred tax liability arises from the initial recognition of goodwill or the initial recognition of an
asset or liability in a transaction which contains both of the following characteristics: the transaction is not a business
combination and at the time of the 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 the temporary differences will not reverse in the foreseeable future
23、Operating lease and finance lease
The Group recording the operating lease as a lessee
Lease payments under an operating lease are recognized by a lessee on a straight-line basis over the lease term, and either
included in the cost of another related asset or charged to the income statement for the current period.
The Group recording the operating lease as a lessor
Rental income from operating leases is recognized by the lesser in the income statement on a straight-line basis over the lease
term.
24、The main change in the accounting policies and accounting estimates
Accounting estimate change
Progress IT kind of depreciation of fixed assets for the company and its actual use loss more match, the company since January 29,
2013, the company will be classified as part of the instrument in fixed assets of the IT class equipment single-row, accounting
depreciation period by the original belong to instrumentation class 10 years is adjusted for five years, and other provisions on the
fixed assets accounting in the same. The accounting estimate change future applicable method is used to deal with, no previous
year for retroactive adjustment.
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
25、The other major accounting policies and accounting estimates and the method of preparation of
financial statements
The preparation of the Company's financial statements requires management to make judgments, estimates and assumptions
that affect the reported amounts 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 the carrying 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 significant
effect on the financial statements:
Operating leases - as lesser
The Group has entered into commercial property leases on its investment property portfolio. The Group has determined, based on
an evaluation of the terms and conditions of the arrangements, that it retains all the significant risks and rewards of ownership of
these properties which are leased out on operating leases.
Uncertainty of accounting estimates
The crucial assumptions of significant accounting estimates in future and other crucial sources of estimated uncertainty, which
may result in the significant adjustments to the book value of the subsequent accounting period, are as the following:
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
be impaired. If there is any sign of possible assets impairment, the assets concerned should be subject to impairment test. When
the carrying amount of an asset or the relevant assets group exceeds its recoverable amount which is the higher one of the net
amount of the fair value of the asset minus the disposal expenses and the current value of the expected future cash flow of the
asset, the asset is considered impaired. The fair value minus the disposal expenses is determined by reference to the recent market
transactions price or observed market price less any directly attributable expenditure for disposing. When making an estimate of
the present value of the future cash flow of an asset, the Group should estimate the future cash flows of the asset or the relevant
assets group, with the appropriate discount rate selected to reflect the present value of the future cash flows. 。
The Group assesses at each reporting date whether there is an indication that non-current assets other than financial assets may
be impaired. If there is any sign of possible assets impairment, the assets concerned should be subject to impairment test. When
the carrying amount of an asset or the relevant assets group exceeds its recoverable amount which is the higher one of the net
amount of the fair value of the asset minus the disposal expenses and the current value of the expected future cash flow of the
asset, the asset is considered impaired. The fair value minus the disposal expenses is determined by reference to the recent market
transactions price or observed market price less any directly attributable expenditure for disposing. When making an estimate of
the present value of the future cash flow of an asset, the Group should estimate the future cash flows of the asset or the relevant
assets group, with the appropriate discount rate selected to reflect the present value of the future cash flows.
Impairment of available-for-sale
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
The Group classifies certain assets as available for sale and recognises movements of their fair values in equity. When the fair value
declines, management makes assumptions about the decline in value to determine whether tere is an impairment that should be
recognized in the income statement.
Goodwill impairment
The group at least a year to test whether goodwill impairment. This requires to allocate the goodwill of the asset group or
combination of group assets is the present value of future cash flows. Present value of future cash flow is expected, the group
needs to be estimated in the future of the asset group or combination of group assets, cash flow and choosing the right discount
rate to determine the present value of future cash flows。
Bad debt provisions
Provisions are made under the allowance method. For each individually significant receivable, the impairment test should be
conducted individually. Where there is evidence that indicates impairment, the loss should be recognized with the respective
provision accrued, equaling to the difference between the present value of the future cash flows and the book value of receivables.
For other receivables concerned, management should accrue the general provisions, along with the receivables individually tested
while no impairment incurred, taking in account the collectability
Development expenditures
When determining the capitalization amount, management should make assumptions such as the expected cash flows of the assets
related, the applicable discount rate and expected benefit period.
Deferred tax assets
The Group should recognize the deferred income tax assets arising from all the existing unutilized tax deficits and deductible
temporary differences to the extent of the amount of the taxable income which it is most likely to obtain and which can be
deducted from the deductible temporary differences. Enormous accounting judgments, as well as the tax planning are compulsory
for management to estimate the time and amount of prospective taxable profits and thus determine the appropriate amount of
the deferred tax assets concerned.
Warranty
The Group provides warranties on automobile and undertakes to repair or replace items that fail to perform satisfactorily based on
certain pre-determined conditions. Management estimates the related warranty claims based on historical warranty claim
information including level of repairs and returns as well as recent trends that might suggest that past cost information may differ
from future claims. Factors that could impact the estimated claim information include the success of the Group’s quality controls,
as well as parts and labour costs. Any increase or decrease in the provision would affect profit or loss in future years.
Depreciation and amortization
The Group’s management determines the estimated useful lives of fixed assets and intangible assets. This estimate is based on the
historical experience of actual useful lives of fixed assets and intangible assets of similar nature and functions. Management will
increase the depreciation and amortization charges where useful lives are less than previously estimated。
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
五、Taxes
1、The major categories of taxes and surcharges
Categories of taxes and surcharges Basis of tax Tax rate
Value added tax (“VAT”) The invoiced value of sales of goods and rendering
of services, and is payable by the purchaser. The
Group is required to pay the VAT it collects to the 6%or17%
tax authority, but may deduct the VAT it has paid
on eligible purchases.
Consumption tax Taxable sales 1%、3%or5
Business tax Taxable sales 5%
City maintenance and construction tax The turnover taxes paid 5%or7%
Corporate income tax Taxable income 15%or25%
Educational surcharge The turnover taxes paid 3%
Local educational surcharge The turnover taxes paid 2%
2、Tax benefits
In accordance to Circular on the Issue of Preferential Taxation Policies for Western Development Program (Cai Shui [2001] No. 202)
collectively issued by the Ministry of Finance, the National Taxation Bureau and the Customs General Administration of PRC, the
Company and Chongqing Changan Special Automobile Co., Ltd (the “Changan Special Sales”) are entitled to a preferential
enterprise income tax (“EIT”)rate of 15% in 2010, as the Company and Changan Special Sales are qualified as a domestic enterprise
in encouraged industries. In accordance to Circular for Further Implementation of Tax Incentives In the Development of Western
Regions (Cai Shui [2011] No. 58) collectively issued by the ministry of Finance, the Customs General Administration and the
National Taxation Bureau of PRC, from 1 January 2011 to 31 December 2020, enterprises located in the Western Region in
encouraged business would be entitled to a preferential EIT rate of 15%. The above-mentioned enterprises encouraged industries
shall satisfy two criteria of enterprises whose principal business are in accordance with Catalogue of Encouraged Industries in the
Western Region, and the revenue should account for more than 70% of the total revenue.
As at 4 November 2011, in accordance to Circular of the Administrative Measures for the Certification of New and High Technology
Enterprises (Guo Ke Fa Huo [2008] No. 172) and Circular of the Working Guidance on the Recognition of Hi-tech Enterprises (Guo
Ke Fa Huo [2008] No. 362), the subsidiaries, Hebei Baoding Changan Bus Co., Ltd and Hebei Changan Automobile Co., Ltd were
recognized as Hi-tech enterprises, effective for three years from recognition date.
六、Consolidation scope
1、Subsidiary
（1）The subsidiary formed by establish or investment
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
Total Total
Registered Actual The other proportion of proportion Consolid
Name of Registered Nature of capital investment balance of shareholders of voting ated or
Subsidiaries Type of company place business (0,000) Scope of business (0,000) investment (%) rights (%) not
Hebei Changan Co., Ltd. Dingzhou Manufact 46,469 Manufacture and selling 43,764 - 94.15 95.70 Yes
Automobile Co., Ltd ory cars and spare parts
Chongqing Changan Co., Ltd. Chongqing Sales 1,376 Seller and agent of import 1,307 - 95.00 95.00 Yes
International / export services of
Automobile Sales commodities and
Co., Ltd techniques
Chongqing Changan Co., Ltd. Chongqing Sales 4,850 Seller of cars and spare 4,850 - 100.00 100.00 Yes
Automobile Sales parts
Co., Ltd
Chongqing Changan Co., Ltd. Chongqing Sales 500 Seller and repairer of 250 - 50.00 50.00 Yes
Special Automobile special cars and spare
sales Co., Ltd(Note) parts
Chongqing Changan Co., Ltd. Chongqing Sales 3,000 Seller of cars and spare 3,000 - 100.00 100.00 Yes
Automobile parts
supporting service
Co., Ltd.
Chongqing Changan Co., Ltd. Chongqing R&D 2,900 Developer, Manufacturer 1,885 - 65.00 65.00 Yes
New Energy and seller of new-energy
Automobile Co. Ltd cars
Chongqing Changan Co., Ltd. Turin, Italy R&D The euro Research and 13,488 - 100.00 100.00 Yes
Europe Design 1460 development of vehicles
Academy Co., Ltd.
Beijing Changan Co., Ltd. Beijing R&D 10 pounds Engineering and 98 - 100.00 100.00 Yes
R&D Center Co., technology research and
Ltd. development
Harbin Changan Co., Ltd. Habin R&D 100 Research and 100 - 100.00 100.00 Yes
R&D Center Co., development of cars and
Ltd. spare parts
Jiangxi Changan Co., Ltd. Jingdezhen R&D 100 Research and 100 - 100.00 100.00 Yes
R&D Center Co., development of cars and
Ltd. spare parts
Shanghai Changan Co., Ltd. Shanghai R&D 200 Research and 200 - 100.00 100.00 Yes
R&D Center Co., development of cars and
Ltd. spare parts
Changan United Co., Ltd. Nottingha R&D 100 Engine project planning, 100 - 100.00 100.00 Yes
Kingdom R&D m, United project management,
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
Center Co., Ltd. Kingdom feasibility studies,
preliminary research and
other cutting-edge
technology
Changan Japan Co., Ltd. Yokohama, R&D 2000 yen Engine project planning, 139 - 100.00 100.00 Yes
Designing Center Japan project management,
Co.,Ltd. feasibility studies,
preliminary research and
other cutting-edge
technology
Changan United Co., Ltd. Troy, R&D $20 Engine project planning, 132 - 100.00 100.00 Yes
States R&D Center United project management,
Co., Ltd. states feasibility studies,
preliminary research and
other cutting-edge
technology
Note: The remaining shareholders of Chongqing Changan Special Automobile sales Co., Ltd made an agreement with the
Company that the remaining shareholders are to vote in accordance with the Company. The main financial and operating policies
have been determined by the Company, so it is included in the scope of consolidated financial statements.。
（2）The subsidiary formed by business combination under common control
Total Total
Registered Actual The other proportion of proportion
Name of Registered Nature of capital investment balance of shareholders of voting Consolidated
Subsidiaries Type of company place business (0,000) Scope of business (0,000) investment (%) rights (%) or not
Chongqing Co., Ltd PRC Sales 850 Seller of cars and 850 - 100 100 Yes
Changan spare parts
Automobile sales
subsidiaries
Hebei Baoding Co., Ltd PRC Manufacturer 3,000 Manufacture and 20,271 - 100 100 Yes
Changan Bus Co., selling cars, trucks,
Ltd vans, electric
vehicles, special
vehicles, spare parts,
molds and
non-standard
machineries
Hefei Changan Co., Ltd PRC Manufacturer 77,500 Manufacture and 44,061 - 100 100 Yes
Automobile Co., selling cars
Ltd
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
（3）The subsidiary formed by business combination not under common control
Total
proporti
Total on of
Nature Registered Actual The other proportion of voting Consolid
Registered of capital investment balance of shareholders rights ated or
Name of Subsidiaries Type of company place business (0,000) Scope of business (0,000) investment (%) (%) not
Nanjing Changan Co., Ltd Nanjing Manufac 60,181 Manufacture and 41,689 - 84.73 93.79 Yes
Automobile Co., Ltd. turer selling cars and spare
parts
The difference between proportion of voting shares and proportion of shares held is due to the voting right consigned from
minority share holders。
3、Merge scope change
√available □ non-available
The current business combination under common control
The combined Criterion for under The actual Revenue from 1 January Net assets from 1 January 2011 to
party common control controller 2011 to the consolidate consolidate date
date
Hefei Changan Controlled by the
Automobile Co., Ltd same ultimate South Group 1,298,818.17 -43,588,252.13
holding company
VII、Notes to the consolidated financial statements
1、Cash and cash equivalents
Ending Beginning
item Original Exchange Equivalent to Original Exchange
Equivalent to RMB
currency rate RMB currency rate
Cash: -- -- 56,896.70 -- -- 92,359.69
RMB -- -- 56,896.70 -- -- 92,359.69
Cash at bank: -- -- 7,196,685,895.41 -- -- 3,942,849,501.87
RMB -- -- 7,111,418,482.76 -- -- 3,883,084,460.72
Other cash: -- -- 264,484,291.47 -- -- 592,884,110.99
RMB -- -- 264,484,291.47 -- -- 592,884,110.99
Total -- -- 7,461,227,083.58 -- -- 4,535,825,972.55
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
2、Notes receivable
Type Ending Beginning
Commercial acceptance bill 4,416,422,535.00 3,963,169,235.00
Bank acceptance bill 8,497,202,355.68 7,309,043,112.84
Total 12,913,624,890.68 11,272,212,347.84
3、Accounts receivable
An analysis of the accounts receivable by category as at the end of the reporting period is as follows
Ending Beginning
item Balance Provision Balance Provision
Amount % Amount % Amount % Amount %
Individually significant items
171,454,69 5,500,000.0 89,103,09
and analyzed individually for 21.29% 3.21% 13.36% 5,500,000.00
4.08 0 3.02
provision
Accounts receivable analyzed as groups for provision
Group 1. Accounts receivable
552,253,42 47,337,868. 194,044,3
analyzed for provision 68.57% 8.57% 29.10% 46,257,882.75 23.84%
8.77 16 34.97
according to aging analysis
Group 2. Accounts receivable 71,580,864. 373,248,6
8.89% 55.98% 0.00
from related parties 29 85.82
Group subtotal 623,834,29 47,337,868. 567,293,0
77.46% 8.57% 85.09% 46,257,882.75 12.93%
3.06 16 20.79
Individually insignificant
10,124,254. 10,124,254. 10,340,25
items but analyzed 1.26% 100.00% 1.55% 10,340,254.25 100.00%
25 25 4.25
individually for provision
Total 805,413,24 62,962,122. 666,736,3
-- -- -- 62,098,137.00 --
1.39 41 68.06
Within groups, accounts receivable analyzed for provision according to aging analysis
Ending Beginning
Aging Balance Balance
Provision Provision
Amount % Amount %
Within 1 year
-- -- -- -- -- --
Within 6 months 468,319,649.69 84.80% 102,850,779.46 52.57%
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
6 to 12 months 17,101,501.66 3.10% 855,075.08 4,228,546.40 2.20% 211,427.32
Within 1year subtotal 485,421,151.35 87.90% 855,075.08 107,079,325.86 54.77% 211,427.32
1 to 2 years 7,673,520.56 1.39% 767,352.06 29,479,528.80 15.33% 2,947,952.88
2 to 3 years 10,313,829.95 1.87% 3,094,148.99 11,938,635.83 6.21% 3,581,590.75
3 to 4 years 10,506,817.73 1.90% 5,253,408.86 12,059,865.36 6.27% 6,029,932.68
4 to 5 years 4,851,130.06 0.88% 3,880,904.05
Over 5 years 33,486,979.12 6.06% 33,486,979.12 33,486,979.12 17.42% 33,486,979.12
Total 552,253,428.77 -- 47,337,868.16 194,044,334.97 -- 46,257,882.75
4、Other receivables
An analysis of the other receivables by category as at the end of reporting period is as follows
Ending Beginning
Item Balance Provision Balance Provision
Amount % Amount % Amount % Amount %
Individually significant
items and analyzed 206,616,672.65 66.76% 24,199,000.00 11.71% 147,659,000.00 60.98% 24,199,000.00 16.39%
individually for provision
Other receivables analyzed as groups for provision
Other receivables analyzed
for provision according to 92,989,115.91 30.05% 3,932,977.20 4.23% 92,131,578.08 38.05% 3,780,579.27 3.31%
aging analysis
Group subtotal 92,989,115.91 30.05% 3,932,977.20 4.23% 92,131,578.08 38.05% 3,780,579.27 3.31%
individually insignificant
items but analyzed 9,889,385.39 3.20% 1,889,213.22 19.10% 2,356,694.22 0.97% 2,356,694.22 100.00%
individually for provision
Total 309,495,173.95 -- 30,021,190.42 -- 242,147,272.30 -- 30,336,273.49 --
Within groups, other receivables analyzed for provision according to aging analysis
Ending Beginning
Aging Balance Balance
Provision Provision
Amount % Amount %
Within 1 year
Within 6 months 80,785,061.84 86.88% 79,467,789.22 86.25%
6 to 12 months 1,695,460.23 1.82% 84,773.01 4,088,696.22 4.44% 204,434.81
Within 1 year subtotal 82,480,522.07 88.70% 84,773.01 83,556,485.44 90.69% 204,434.81
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
1 to 2 years 3,610,971.83 3.88% 361,097.18 1,736,470.64 1.88% 173,647.06
2 to 3 years 4,281,230.00 4.60% 1,284,369.00 4,476,678.00 4.86% 1,343,003.40
3 to 4 years 801,948.01 0.86% 400,974.01 600,900.00 0.65% 300,450.00
4 to 5 years 63,400.00 0.07% 50,720.00 10,000.00 0.01% 8,000.00
Over 5 years 1,751,044.00 1.89% 1,751,044.00 1,751,044.00 1.91% 1,751,044.00
Total 92,989,115.91 -- 3,932,977.20 92,131,578.08 -- 3,780,579.27
5、Prepayments
An aged analysis of the prepayments is as follows:
Ending Beginning
Aging
Amount Percentage (%) Amount Percentage (%)
Within 1 year 736,760,544.37 95.87% 677,172,210.97 96.88%
1 to 2 years 19,485,421.13 2.54% 14,012,869.55 2.01%
2 to 3 years 11,555,708.17 1.50% 5,490,348.60 0.79%
Over 3 years 681,459.89 0.09% 2,269,422.95 0.32%
Total 768,483,133.56 -- 698,944,852.07 --
6、Inventory
(1) Classification of inventory
Ending Beginning
Item
Balance Provision Net value Balance Provision Net value
Raw materials 444,342,613.31 93,585,456.96 350,757,156.35 415,769,370.41 117,772,351.56 297,997,018.85
Work in progress 483,398,887.96 36,941,464.71 446,457,423.25 633,540,001.07 53,583,639.35 579,956,361.72
Commodity stock 5,156,260,267.45 29,563,579.36 5,126,696,688.09 3,642,436,542.98 49,947,251.97 3,592,489,291.01
revolving material 2,217,155.60 0.00 2,217,155.60
consumptive
145,290,475.78 145,290,475.78 171,926,569.45 0.00 171,926,569.45
biological assets
Material in transit 30,955,107.91 30,955,107.91 90,148,709.08 0.00 90,148,709.08
Spare parts 1,987,249.05 1,987,249.05 316,620.86 0.00 316,620.86
Total 6,262,234,601.46 160,090,501.03 6,102,144,100.43 4,956,354,969.45 221,303,242.88 4,735,051,726.57
(2) Provision for inventory
Type Beginning Provision Deduction Ending
Reversal Write-off
Raw materials 117,772,351.56 1,298,186.85 1,126,362.64 24,358,718.81 93,585,456.96
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
Work in progress 53,583,639.35 12,393,393.51 9,299,016.68 19,736,551.47 36,941,464.71
Commodity stock 49,947,251.97 29,766,238.52 1,026,434.48 49,123,476.65 29,563,579.36
Total 221,303,242.88 43,457,818.88 11,451,813.80 93,218,746.93 160,090,501.03
7、Other current assets
Item Ending Beginning
Accrual input tax 2,541,492.57
Others 1,456,424.61 44,245.00
Total 1,456,424.61 2,585,737.57
8、Available-for-sale financial assets
Item Ending Beginning
Available-for-sale equity securites 173,564,660.00 257,319,416.00
Total 173,564,660.00 257,319,416.00
The available-for-sale equity securites are the 17.75 million shares of Southwest Securities Co., Ltd and 2.6588million shares of
HuaXia Bank holding by the Group.
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
9、Investment in joint ventures and associates
Shareholding
Investee percentage Voting Total liabilities at Total net assets at Total operating
(%) percentage (%) Total assets at end end end income Total net profits
I. Joint ventures
Chongqing Changan Suzuki Automobile
51% 51% 7,732,981,755.49 4,979,793,655.35 2,753,188,100.14 5,837,508,839.55 13,300,489.41
Co., Ltd
Jiangling Holding Co., Ltd 50% 50% 6,913,221,742.37 2,525,490,634.77 4,395,641,991.14 1,728,835,250.95 424,163,483.33
Changan Ford Automobile Co., Ltd 50% 50% 36,256,153,279.12 26,563,338,676.09 9,660,312,842.25 52,846,747,174.74 7,389,299,670.38
Changan Mazda Automobile Co., Ltd 50% 50% 8,511,455,054.94 5,797,576,453.98 2,713,878,600.96 6,491,828,010.12 413,249,021.90
Changan Ford Mazda Engine Co., Ltd 50% 50% 2,796,846,253.52 1,472,156,246.31 1,324,690,007.21 1,821,269,324.41 117,369,105.79
Changan PSA Automobiles Co., Ltd 50% 50% 8,571,363,995.52 6,180,155,688.98 2,391,208,306.54 1,650,972,945.63 -323,669,441.89
II. Associates
Chongqing Xiyi Automobile Linkage Rod
40.00% 40.00% 33,580,278.88 11,200,424.02 22,379,854.86 24,439,258.99 895,829.61
Co., Ltd
Chongqing Changan Kuayue Automobile
34.30% 34.30% 1,208,901,247.33 1,080,242,802.24 128,658,445.09 1,157,660,572.27 -6,038,653.24
Co., Ltd
Chongqing Changan Kuayue Automobile
34.30% 34.30% 491,830,761.38 548,088,660.33 -56,257,898.95 996,564,908.86 9,164,983.49
Sales Co., Ltd
Beijing Fangan Taxi Co., Ltd 42.25% 42.25% 60,670,012.82 58,587,697.20 2,082,315.62 2,028,397.31 -1,085,964.13
10、Long-term equity investment
Accounting Addition/ Shareholdi Voting Explanation for Impair Current Current cash
Investee method Initial amount Beginning (deduction) Ending ng percentage the difference ment provision dividends
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
percentage (%) between
(%) shareholding
percentage and
voting
percentage
Joint ventures
Chongqing Changan Suzuki 239,905,266.0
1,422,871,007.19 6,113,593.00 1,428,984,600.19 51.00% 51.00% N/A
Automobile Co., Ltd 0
Jiangling Holding Co., Ltd 1,000,000,000.
1,970,068,511.81 211,445,447.83 2,181,513,959.64 50.00% 50.00% N/A
00
Changan Ford Automobile Co.,
Ltd （former name: Changan 951,589,136.2
5,168,880,471.54 -366,252,089.98 4,802,628,381.56 50.00% 50.00% N/A 4,050,000,000.00
Ford Mazda Automobile Co., 9
Ltd）
Changan Mazda Automobile 1,097,839,635.
1,165,287,267.32 202,241,113.72 1,367,528,381.04 50.00% 50.00% N/A
Co., Ltd 00
Changan Ford Mazda Engine 786,734,634.1
599,468,669.92 58,684,552.90 658,153,222.82 50.00% 50.00% N/A
Co., Ltd 0
Changan PSA Automobiles Co., 2,007,841,700.
1,957,257,672.14 -161,834,720.95 1,795,422,951.19 50.00% 50.00% N/A
Ltd，a JV of the Company 00
Associates
Chongqing Xiyi Automobile
6,714,720.64 8,772,039.08 358,331.84 9,130,370.92 40.00% 40.00% N/A
Linkage Rod Co., Ltd
Chongqing Changan Kuayue
61,800,885.00 64,068,246.00 -1,001,098.06 63,067,147.94 34.30% 34.30% N/A
Automobile Co., Ltd
Chongqing Changan Kuayue 1.00 34.30% 34.30% N/A
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
Automobile Sales Co., Ltd
Beijing Fangan Taxi LLC 6,000,000.00 998,629.64 -998,629.64 42.25% 42.25% N/A
Other
China South Industry Group
80,000,000.00 80,000,000.00 80,000,000.00 5.33% 5.33% N/A
Finance Co., Ltd 31,252,435.46
Chongqing Ante Import and
3,000,000.00 3,000,000.00 3,000,000.00 10.00% 10.00% N/A
Export Co., Ltd
Sichuan Glass Co., Ltd 1,809,274.00 1,809,274.00 1,809,274.00 0.64% 0.64% N/A
Zhong Fa Lian Investment Co.,
21,000,000.00 21,000,000.00 21,000,000.00 10.00% 10.00% N/A
Ltd
CAERI(Beijing) automotive
Lightweight Technology 3,000,000.00 3,000,000.00 3,000,000.00 6.89% 6.89% N/A
Research Institution Co., Ltd
6,267,235,252. 12,415,238,289.3
Total -- 12,466,481,788.64 -51,243,499.34 -- -- -- 4,081,252,435.46
03 0
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
11、Investment property
According to the cost of the investment real estate
Item Beginning Addition Deduction Ending
I. Original cost 11,511,221.65 308,479.59 11,819,701.24
Buildings 11,511,221.65 308,479.59 11,819,701.24
II. Accumulated depreciation and
2,020,594.52 151,891.27 2,172,485.79
amortization
Buildings 2,020,594.52 151,891.27 2,172,485.79
III. Net Value 9,490,627.13 156,588.32 9,647,215.45
Buildings 9,490,627.13 156,588.32 9,647,215.45
IV. Impairment Provision 9,490,627.13 156,588.32 9,647,215.45
Buildings 9,490,627.13 156,588.32 9,647,215.45
current period
Current depreciation and amortization of the forehead 151,891.27
12、Fixed assets
Item Beginning Addition Deduction Ending
I. Original cost 20,489,239,240.31 931,990,313.81 160,535,525.12 21,260,694,029.00
Buildings 5,328,303,054.21 432,800,037.24 22,643,494.75 5,738,459,596.70
Machinery 11,525,656,167.57 254,496,104.69 111,821,516.32 11,668,330,755.94
Vehicles 104,296,206.24 19,593,200.14 3,391,173.60 120,498,232.78
Other Equipments 3,530,983,812.29 225,100,971.74 22,679,340.45 3,733,405,443.58
-- Beginning Addition Deduction Ending
II. Accumulated depreciation 5,657,019,080.61 770,458,480.29 114,709,543.44 6,312,768,017.46
Buildings 692,884,275.02 132,825,253.19 21,122,855.58 804,586,672.63
Machinery 3,713,410,556.24 402,438,055.51 73,640,570.25 4,042,208,041.50
Vehicles 40,204,107.27 5,919,614.09 2,127,316.73 43,996,404.63
Other Equipments 1,210,520,142.08 229,275,557.50 17,818,800.88 1,421,976,898.70
-- Beginning -- Ending
III. Net Value 14,832,220,159.70 -- 14,947,926,011.54
Buildings 4,635,418,779.19 -- 4,933,872,924.07
Machinery 7,812,245,611.33 -- 7,626,122,714.44
Vehicles 64,092,098.97 -- 76,501,828.15
Other Equipments 2,320,463,670.21 -- 2,311,428,544.88
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
IV. Impairment Provision 459,227,648.54 -- 451,570,379.10
Buildings 1,440,453.56 -- 790,453.56
Machinery 416,637,932.33 -- 411,985,343.02
Vehicles 55,086.70 -- 55,086.70
Other Equipments 41,094,175.95 -- 38,739,495.82
V. Book Value 14,372,992,511.16 -- 14,496,355,632.44
Buildings 4,633,978,325.63 -- 4,933,082,470.51
Machinery 7,395,607,679.00 -- 7,214,137,371.42
Vehicles 64,037,012.27 -- 76,446,741.45
Other Equipments 2,279,369,494.26 -- 2,272,689,049.06
This 770,458,480.29 yuan depreciation; This period by the construction project to fixed asset price is 925,705,897.71 $index.
13、Construction in progress
Details of construction in progress
closing balance openning balance
Item
Balance Provision Book value Balance Provision Book value
Mini-bus production equipment 50,231,587.35 50,231,587.35 50,083,620.26 50,083,620.26
Yuzui motor city project 81,103,666.22 81,103,666.22 3,340,635.09 3,340,635.09
Changan industrial garden project 845,555.60 845,555.60 636,361.71 636,361.71
Sedan production equipment 50,238,140.98 50,238,140.98 42,419,237.65 42,419,237.65
Engine production 36,167,612.24 36,167,612.24 90,556,793.45 90,556,793.45
Vehicle research institution 19,284,543.65 19,284,543.65 69,250,097.06 69,250,097.06
Car moulds 281,920,600.21 281,920,600.21 356,844,644.42 356,844,644.42
Hebei M201 bus production plant
1,155,921.94 1,155,921.94
project
Hebei Bao Ke light vehicle project 44,805,709.44 44,805,709.44 56,020,860.61 56,020,860.61
Plant for vehicle test project 133,147,428.28 133,147,428.28 541,058,623.64 541,058,623.64
Beijing vehicle construction project 113,397,988.15 113,397,988.15 40,243,489.44 40,243,489.44
Hefei one hundred thousand car
10,458,678.57 10,458,678.57 10,458,678.57 10,458,678.57 0.00
production line construction
Hefei Changan M302 project 4,538,461.54 4,538,461.54 4,538,461.54 4,538,461.54 0.00
Hefei A101, CX20 switching project 83,083.91 83,083.91 0.00 0.00
Others 113,390,612.00 113,390,612.00 78,319,393.72 78,319,393.72
1,343,770,897.
Total 940,769,590.08 14,997,140.11 925,772,449.97 14,997,140.11 1,328,773,757.05
16
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
14、Construction materials
Item Beginning Addition Deduction Ending
Specific materials 96,690.75 96,690.75
Total 96,690.75 96,690.75
15、liquidation of fixed assets
Item Beginning Ending
machinery equipment 5,107,576.64
office equipment 8,696.53 20,306.59
Total 2,485,714.76 5,125,667.23
16、Intangible assets
（1）Details of intangible assets
Item Beginning Addition Deduction Ending
I. Original cost 3,110,720,506.97 322,238,057.71 28,635.53 3,432,929,929.15
Land use rights 1,355,080,789.00 20,072,088.84 0.00 1,375,152,877.84
Software use rights 261,600,402.50 7,044,238.11 28,635.53 268,616,005.08
Trademark use rights 211,784,400.00 0.00 0.00 211,784,400.00
Non-patent technology 1,282,254,915.47 295,121,730.76 0.00 1,577,376,646.23
II. Accumulated amortization 958,323,363.64 170,852,526.91 0.00 1,129,175,890.55
Land use rights 113,358,628.31 14,673,895.86 0.00 128,032,524.17
Software use rights 187,183,678.29 29,976,075.05 0.00 217,159,753.34
Trademark use rights 79,969,224.29 9,975,666.66 0.00 89,944,890.95
Non-patent technology 577,811,832.75 116,226,889.34 0.00 694,038,722.09
III. Net Value 2,152,397,143.33 151,385,530.80 28,635.53 2,303,754,038.60
Land use rights 1,241,722,160.69 5,398,192.98 0.00 1,247,120,353.67
Software use rights 74,416,724.21 -22,931,836.94 28,635.53 51,456,251.74
Trademark use rights 131,815,175.71 -9,975,666.66 0.00 121,839,509.05
Non-patent technology 704,443,082.72 178,894,841.42 0.00 883,337,924.14
IV. Impairment Provision 76,176,660.79 0.00 0.00 76,176,660.79
Land use rights 0.00 0.00 0.00 0.00
Software use rights 0.00 0.00 0.00 0.00
Trademark use rights 0.00 0.00 0.00 0.00
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
Non-patent technology 76,176,660.79 0.00 0.00 76,176,660.79
V. Book Value 2,076,220,482.54 151,385,530.80 28,635.53 2,227,577,377.81
Land use rights 1,241,722,160.69 5,398,192.98 0.00 1,247,120,353.67
Software use rights 74,416,724.21 -22,931,836.94 28,635.53 51,456,251.74
Trademark use rights 131,815,175.71 -9,975,666.66 0.00 121,839,509.05
Non-patent technology 628,266,421.93 178,894,841.42 0.00 807,161,263.35
（2）Development expenditure
Deduction Ending
Charged to income Charged to income
Item Beginning Addition
Statement of the Statement of the
Current period Current period
Automobile
685,666,604.48 522,781,256.54 255,320,189.05 295,121,730.76 658,005,941.21
Development
Total 685,666,604.48 522,781,256.54 255,320,189.05 295,121,730.76 658,005,941.21
17、Goodwill
Addition Deduction Impairment
Investee Beginning Ending
provision
Hebei Changan Automobile Co., Ltd 9,804,394.00 9,804,394.00
Nanjing Changan Automobile Co.,
73,465,335.00 73,465,335.00 73,465,335.00
Ltd
Total 83,269,729.00 83,269,729.00 73,465,335.00
18、Long-term deferred expenses
Item Beginning Addition amortization Amortization Ending reason
Gaobao Lake
540,240.00 90,040.00 450,200.00
Reservir Greening
Others 869,988.76 72,939.42 797,049.34
Total 1,410,228.76 162,979.42 1,247,249.34 --
19、Deferred tax assets and liabilities
Deferred tax assets and liabilities are listed separately.
(1) Recognized deferred tax assets and liabilities:
Item Ending Beginning
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
Deferred tax assets
Provision for the impairment of assets 93,471,597.02 96,999,755.02
Accrued expenses and contingent liabilities 509,700,046.73 390,797,090.37
Unpaid tech development expense and advertisement
35,002,929.26 39,626,338.17
expense
Deferred income 336,946,533.40 363,604,776.91
Unpaid salary and bonus and others 110,279,493.70 107,407,841.52
Subtotal 1,085,400,600.11 998,435,801.99
Deferred tax liabilities
Available-for-sale financial assets on the changes in fair
25,779,708.54 41,842,961.06
value
Subtotal 25,779,708.54 41,842,961.06
20、Provision for the impairment of assets
Deduction Ending
Item Beginning Addition
Reversal Write-off
I. Bad debt provision 92,434,410.49 548,902.34 92,983,312.83
II. Provision for obsolete
221,303,242.88 43,457,818.88 11,451,813.80 93,218,746.93 160,090,501.03
inventory
III. Provision for the impairment
459,227,648.54 7,657,269.44 451,570,379.10
of fixed assets
IV. Impairment of construction in
14,997,140.11 14,997,140.11
progress
V. Provision for the impairment
76,176,660.79 76,176,660.79
of intangible assets
VI. Provision for the impairment
73,465,335.00 73,465,335.00
of goodwill
Total 937,604,437.81 44,006,721.22 11,451,813.80 100,876,016.37 869,283,328.86
21、Other non-current assets
Item Ending Beginning
Prepayment of land 248,582,760.22 244,336,881.52
Prepayment of equity investment 2,453,490.25
Total 251,036,250.47 244,336,881.52
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
22、Short-term loans
Item Ending Beginning
Pledge loans 30,000,000.00
Guaranteed loans 90,000,000.00 140,000,000.00
Credit loans 288,000,000.00 1,228,000,000.00
Total 378,000,000.00 1,398,000,000.00
23、Notes payable
Item Ending Beginning
Commercial acceptance bill 226,946,025.00
Bank acceptance bill 11,946,131,545.28 9,350,708,650.13
Total 11,946,131,545.28 9,577,654,675.13
24、Accounts payable
Item Ending Beginning
Accounts payable 10,342,026,388.34 7,963,798,219.72
total 10,342,026,388.34 7,963,798,219.72
25、Advances from customers
Item Ending Beginning
Advances from customers 5,143,994,377.92 4,260,282,749.23
total 5,143,994,377.92 4,260,282,749.23
26、Payroll payable
Item Beginning Addition Deduction Ending
I. Salary, bonus,
allowance and 475,975,263.71 1,442,340,448.56 1,434,290,838.33 484,024,873.94
subsidy
II. Employee benefit 199,845,915.15 153,179,069.25 353,010,788.51 14,195.89
III. Social insurance 56,198,417.96 266,117,431.63 218,513,841.24 103,802,008.35
IV. Housing
70,370,340.91 37,421,101.30 103,578,670.97 4,212,771.24
accumulation fund
V. Termination
13,118,286.47 3,567,000.00 1,570,495.21 15,114,791.26
benefits
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
VI. others 10,295,151.79 37,171,016.35 37,655,032.50 9,811,135.64
total 825,803,375.99 1,939,796,067.09 2,148,619,666.76 616,979,776.32
27、Taxes payable
Item Ending Beginning
Value-added tax 15,425,375.86 -201,192,520.94
Consumption tax 321,209,417.76 308,336,475.73
Business tax 139,350.78 774,277.54
Corporate income tax 29,519,371.84 -35,315,345.50
Individual Income tax 5,374,104.47 2,342,059.73
City maintenance and construction tax 17,581,591.35 17,174,390.28
Education additional expenses 12,237,710.71 12,041,066.91
Others 18,864,874.46 9,529,196.40
total 420,351,797.23 113,689,600.15
28、Interest payable
Item Ending Beginning
Long-term loan interest 3,917,361.11
Corporate bonds interest 20,988,000.00 73,458,000.00
Short-term loan interest 273,333.33 738,351.38
total 21,261,333.33 78,113,712.49
29、Dividend payable
Item Ending Beginning
Dividend payable – B share dividend withholding
8,350,478.76
tax
Dividend payable – Hebei Changan Minority
79,742.80 79,742.80
interests
total 8,430,221.56 79,742.80
30、Other payables
Item Ending Beginning
Dealer earnest money 58,500,074.59 150,012,597.08
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
Warranty 6,623,146.39 22,273,965.45
Repair fees 91,408,952.46 185,746,575.98
Advertisement fees 81,914,138.91 198,835,065.92
Warehousing and transport fees 321,987,132.42 216,289,028.04
Loans temporarily 22,290,196.90 19,689,462.31
Project funds 581,193,439.07 827,563,387.09
Others 229,628,170.95 165,614,495.62
total 1,393,545,251.69 1,786,024,577.49
31、Contingent liabilities
Item Beginning Addition Deduction Ending
Warranty 1,117,167,286.59 646,103,723.61 237,912,710.75 1,525,358,299.45
total 1,117,167,286.59 646,103,723.61 237,912,710.75 1,525,358,299.45
32、Long-term loans within one year
Item Ending Beginning
Long-term loans within one year 0.00 520,000,000.00
total 0.00 520,000,000.00
33、Other current liabilities
Item Ending Beginning
Accrued utilities 5,274,089.35 13,205,988.82
Accrued transportation fee 629,837,491.37 380,523,308.93
Accrued labor service fee 44,680,435.57 21,407,047.55
Accrued technology royalty 127,340,839.09 42,497,027.01
Accrued commercial discount payable 1,306,205,456.43 1,236,916,077.71
Accrued market development expense 193,092,773.86 154,394,367.01
Accrued rental 175,000.00 5,023,000.00
Retirement benefits (Note V 39) 0.00 5,002,000.00
Others 99,194,164.91 41,660,285.09
total 2,405,800,250.58 1,900,629,102.12
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
34、Long-term loans
（1）The classification of long-term loans is as follows
Item Ending Beginning
Credit loans 0.00 1,270,000,000.00
total 0.00 1,270,000,000.00
35、Bonds payables
item date Beginning Addition Deduction Ending
23
Corporate bonds 1,967,266,759.93 1,958,959.98 0.00 1,969,225,719.91
April2012
With the permission of the China securities regulatory commission regulatory approval [2012] no. 2012, the company to the public in April 2012,
issue corporate bonds, face value of RMB 1980000000.00 coupon for fixed rate 5.30%, according to the annual interest payments, FuXiRi for every
year on April 23, the final payment date is April 23, 2017. After deducting distribution costs RMB 19589600.00, raised RMB 1960410400.00. The
bond is provided by the parent company China changan full unconditional irrevocable joint and several guarantee. During the reporting period, the
company has to pay on April 23, 2013 to April 22, 2014, during the period of interest at a pre-determined (first year).
36、Special payables
Item Beginning Addition Deduction Ending
Project 863 5,204,918.01 1,660,000.00 1,808,338.03 5,056,579.98
Test on key technology of hybrid electric
4,188,977.29 330,000.00 357,212.66 4,161,764.63
vehicles
New Vehicle product 6,236,251.01 454,322.93 5,781,928.08
Automobile product chain sharing platform 4,810,605.54 3,543,801.03 1,266,804.51
Gasoline Engine Development 5,745,355.86 459,397.60 5,285,958.26
Development and industrialization of the
embedded software platform for 5,420,449.76 169,000.00 0.00 5,589,449.76
automotive electronic controllers
Changan automobile E class Gasoline
engine cylinder block, cylinder head 61,420,000.00 946,500.00 60,473,500.00
production line project
Land relocation compensation 55,350,709.40 0.00 55,350,709.40
Project 973 187,806.82 187,806.82
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
Automotive order to delivery system
475,689.00 0.00 475,689.00
project
Industrialization of patented technologies 593,000.00 0.00 593,000.00
Vehicle network intelligent information
terminal middleware key technologies 848,115.03 30,486.02 817,629.01
research and application
Development and industrialization of C206
52,344,341.83 36,499,284.64 15,845,057.19
pure electric cars
System development of electromagnetic
compatibility of key accessories on electric 457,826.30 300,000.00 289,538.11 468,288.19
cars
The GPS compatible passenger car before
the installation of intelligent vehicle 10,000,000.00 77,533.00 9,922,467.00
terminal development and industrialization
Others 10,346,156.65 1,066,000.00 2,028,203.93 9,383,952.72
Total 213,630,202.50 13,525,000.00 46,682,424.77 180,472,777.73
37、Other non-current liabilities
Item Ending Beginning
Retiree benefits 25,054,458.28 26,422,000.00
deferred income 2,709,387,221.99 2,726,487,939.90
total 2,734,441,680.27 2,752,909,939.90
38、Share capital
Current movement
Transfer of
Beginning Issuance of Ending
Stock dividend reserve to others Subtotal
shares
common shares
the sum of
4,662,886,108.00 4,662,886,108.00
shares
39、Capital reserves
Item Beginning Addition Deduction Ending
Share premium 3,564,229,410.86 398,305,995.90 3,165,923,414.96
87
Chongqing Changan Automobile Company Limited Semi-annual Report 2014
Others 228,343,709.93 62,183,303.33 166,160,406.60
Capital reserve transferred arising
44,496,899.00 44,496,899.00
from the old standards
Impairment of equity investment 17,015,985.20 17,015,985.20
total 3,854,086,004.99 0.00 460,489,299.23 3,393,596,705.76
40、Surplus reserves
Item Beginning Addition Deduction Ending
Statutory surplus 1,816,272,976.53 1,816,272,976.53
total 1,816,272,976.53 1,816,272,976.53
41、Retained earnings
Item sum
Retained earnings at beginning of year before
9,233,857,503.02
adjustments
Adjust the early undistributed profits total -690,266,354.62
Retained earnings at beginning of year after
8,543,591,148.40
adjustments
Add: Net profit belong to parent company 3,628,092,998.93
common stock dividends payable 467,396,927.48
Retained earnings at the end 11,704,287,219.85
42、Operating revenue and cost
（1）Operating revenue
item Report period Same period of last year
Operating revenue 23,673,135,459.44 19,639,739,397.30
Other operating revenue 533,595,182.51 571,327,196.04
Operating cost 19,995,482,492.16 17,004,065,519.59
（2）Main business (divisions)
88
Chongqing Changan Automobile Company Limited Semi-annual Report 2014
Report period Same period of last year
item
Total revenue Operating cost Total revenue Operating cost
motor industry 23,673,135,459.44 19,671,555,305.88 19,639,739,397.30 16,536,133,512.43
total 23,673,135,459.44 19,671,555,305.88 19,639,739,397.30 16,536,133,512.43
（3）Main business (product)
Report period Same period of last year
item
Total revenue Operating cost Total revenue Operating cost
Sale of goods 23,544,052,444.90 19,551,708,604.35 19,170,670,869.55 16,100,194,008.25
Outsourcing processing 129,083,014.54 119,846,701.53 469,068,527.75 435,939,504.18
total 23,673,135,459.44 19,671,555,305.88 19,639,739,397.30 16,536,133,512.43
（4）Main business areas (points)
Report period Same period of last year
Item
Total revenue Operating cost Total revenue Operating cost
civil 23,267,494,217.35 19,278,290,530.55 19,170,670,869.55 16,100,194,008.25
foreign 405,641,242.09 393,264,775.33 469,068,527.75 435,939,504.18
total 23,673,135,459.44 19,671,555,305.88 19,639,739,397.30 16,536,133,512.43
43、Business tax and surcharges
item Report period Same period of last year
Consumption tax 753,408,150.96 515,593,724.61
Business tax 4,623,743.22 1,599,007.85
City maintenance and construction
113,841,174.20 85,051,281.19
tax
Education additional expenses 53,203,727.28 39,474,661.74
Others 18,707.38 59,704.26
total 925,095,503.04 641,778,379.65
44、Operating expenses
89
Chongqing Changan Automobile Company Limited Semi-annual Report 2014
item Report period Same period of last year
Payroll and welfare 116,360,521.66 95,760,498.61
Promotion fee 354,757,352.98 215,847,951.51
Transportation expenses 885,615,824.56 758,334,850.73
Travelling expenses 28,239,457.34 24,082,372.39
Package expenses 4,435,654.86 6,681,083.73
Administrative expenses 4,974,866.88 2,889,950.69
Selling service fee 572,542,532.44 441,236,833.57
Sales discount 117,284,905.39 94,122,933.18
Others 30,818,909.56 31,616,797.73
total 2,115,030,025.67 1,670,573,272.14
45、General and administrative expenses
item Report period Same period of last year
Payroll and welfare 655,221,251.08 551,325,489.87
Technology research expenses 393,233,607.41 368,405,720.25
Administrative expenses 4,448,412.55 3,807,841.81
Depreciation and amortization 290,560,274.85 202,953,683.66
Miscellaneous service charges 10,748,395.21 4,061,874.64
Tax fee 85,783,062.19 66,727,636.29
Traffic expenses 26,530,366.54 19,530,194.76
Travelling expenses 11,337,613.25 8,260,630.48
Entertainment expenses 3,285,301.26 11,168,870.21
Others 122,211,924.73 78,734,032.52
total 1,603,360,209.07 1,314,975,974.49
46、Financial expenses
item Report period Same period of last year
Interest expense 127,203,294.67 114,815,832.56
Less: interest income 50,186,885.04 70,559,566.95
Exchange gain or loss -3,508,098.72 -1,750,950.93
Others 8,625,051.85 6,847,463.94
total 89,149,560.21 52,854,680.48
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
47、Profit and loss from fair value changes
Sources of fair value changes Report period Same period of last year
Financial assets held for trading 0.00 -332,407.00
total 0.00 -332,407.00
48、Investment income
（1）Details of investment income
item Report period Same period of last year
Long-term equity investment income under cost
31,252,435.46 29,105,553.99
method
Long-term equity investment income under equity
3,998,756,500.66 1,774,141,795.34
method
stock dividend income from available-for-sale
-250,733.75
financial assets
Available-for-sale financial assets investment
54,031,310.36 1,775,000.00
income through disposal
total 4,084,040,246.48 1,804,771,615.58
（2）According to the cost accounting method of a long-term equity investment gains
The invested entity Report period Same period of last year
Chongqing antell import and export trade co., LTD 3,600,000.00
Weapon equipment group finance co., LTD 31,252,435.46 23,413,203.42
Chongqing changan advertising co., LTD 2,092,350.57
Total 31,252,435.46 29,105,553.99
（3）According to the equity method accounting of long-term equity investment gains
The invested entity Report period Same period of last year
Changan Ford Automobile Co., Ltd 3,683,747,910.02 1,584,630,561.86
Chongqing Changan Suzuki Automobile Co., Ltd 6,113,593.00 -10,689,200.00
Jiangling Holding Co., Ltd 211,445,447.83 155,842,970.80
Changan Mazda Automobile Co., Ltd 202,241,113.72 10,900,338.98
Changan ford Mazda engine co., LTD 58,684,552.90 36,665,597.19
Changan PSA Automobiles Co., Ltd，a JV of the -161,834,720.95
91
Chongqing Changan Automobile Company Limited Semi-annual Report 2014
Company
chongqingxiyiAutomobile connecting rod co., LTD 358,331.84 567,393.25
Chongqing Changan Kuayue Automobile Co., Ltd -1,001,098.06 -288,924.39
Beijing Ann taxi co., LTD -998,629.64 -3,486,942.35
Total 3,998,756,500.66 1,774,141,795.34
49、mpairment loss on assets
item Report period Same period of last year
1. Bad debt loss 548,902.34 2,215,843.33
2. Impairment provision of obsolete inventory 32,006,005.08 30,566,854.09
3. Impairment provision of fixed assets 54,456,092.49
4. Impairment provision of intangible assets 38,037,153.88
total 32,554,907.42 125,275,943.79
50、Non-operating income
item Report period Same period of last year
Non-current assets disposal gains in total 4,877,962.16 1,795,500.97
Gain on the disposal of fixed assets 4,877,962.16 1,795,500.97
Donations 159,776.18
Government grants 76,777,987.45 44,194,360.17
others 8,637,860.25 12,659,964.58
Total 90,453,586.04 58,649,825.72
51、Non-operating expenses
Amount recognized as
item Report period Same period of last year non-recurring profit and
loss
Non-current assets disposal has lost 4,134,080.37 1,795,479.91 4,134,080.37
Loss on the disposal of fixed assets 4,134,080.37 1,795,479.91 4,134,080.37
Donation 1,761,800.00 337,900.00 1,761,800.00
Others 12,153,989.40 1,874,617.54 12,153,989.40
Total 18,049,869.77 4,007,997.45 18,049,869.77
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
52、Income tax expense
item Report period Same period of last year
Current income tax expense 86,434,121.58 49,434,599.74
Deferred income tax adjustment -86,964,798.12 -20,364,991.11
total -530,676.54 29,069,608.63
53、Other comprehensive income
item Report period Same period of last year
1. Profits (loss) generated from available for sale financial
-32,042,080.00 44,526,740.00
assets
Less: Available for sale financial assets arising from income
-5,774,020.00 5,398,435.00
tax effect
Net - through other comprehensive income into the profits and
40,351,736.33
losses of the current
Subtotal -62,183,303.33 -26,268,060.00
2. Translation differences of foreign currency financial
716,558.75
statements
total -61,466,744.58 -26,268,060.00
54、Notes to cash flow statement
（1）The major cash received relating to other operating activities
item Amount
Interest income 33,674,449.82
Government grants related to operating activities 30,402,118.43
Others 137,225,213.29
Total 201,301,781.54
（2）The major cash paid relating to other operating activities
item Amount
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
Selling expense 1,175,739,238.78
Administrative expense 203,850,416.75
Others 698,170,105.91
Total 2,077,759,761.44
（3）The major cash received relating to other financing activities
item Amount
Acceptance deposits back 352,099,306.98
Total 352,099,306.98
（4）The major cash paid relating to other financing activities
item Amount
Counter Fee 14,441.26
Payment for deposit of bill 30,001,735.00
Total 30,016,176.26
55、Supplementary information of cash flow statement
（1）Supplementary information of cash flow statement
Supplementary information Report period Same period of last year
1．Cash flows from operating activities calculated by
-- --
adjusting the net profit
Net profit 3,615,827,815.11 1,217,512,379.10
Add: asset impairment provision 32,554,907.42 44,457,926.18
Fixed assets depreciation, depletion of oil and gas assets,
productive biological assets depreciation 750,834,739.74 607,931,571.49
Amortization of intangible assets 178,875,695.04 157,314,864.69
Amortization of long-term deferred expense 232,661.86 4,069,189.41
Disposal loss(gain) on fixed assets, intangible assets and
-2,218,247.15 2,048,110.93
others long-term assets
Loss (gain) on retirement of fixed assets 301,180.08
Loss(gain) from fair value changes 332,407.00
94
Chongqing Changan Automobile Company Limited Semi-annual Report 2014
Financial expense(income) 89,149,560.21 56,880,126.74
Investment loss(gain) -4,084,040,246.48 -1,804,771,615.58
Decrease(increase) in deferred tax assets -86,964,798.12 -21,637,077.93
Decrease(increase) in inventory -1,367,092,373.86 -944,563,827.51
Decrease(increase) in operating receivables -1,916,426,696.97 -120,981,168.75
Increase(decrease) in operating payables 6,298,901,316.50 4,197,506,283.80
Others 31,860,927.61 -43,574,825.89
Net cash flows from operating activities 3,541,495,260.91 3,352,825,523.76
2．Does not involve cash receipts and cash disbursements
-- --
of the major investment and financing activities：
3．Movement of cash and cash equivalents： -- --
Ending balance of cash 7,196,742,792.11 7,079,807,455.81
Less: beginning balance of cash 3,942,941,861.56 4,643,494,705.55
Increase in cash and cash equivalents 3,253,800,930.55 2,436,312,750.26
（2）Cash and cash equivalents
Item Ending Beginning
I. Cash 7,196,742,792.11 3,942,941,861.56
Including: Cash on hand 56,896.70 92,359.69
Bank deposits that can be readily used 7,196,685,895.41 3,942,849,501.87
II.Ending balance of cash and cash equivalents 7,196,742,792.11 3,942,941,861.56
八、Related party relationships and transactions
1、Parent company
Parent Proportio
Proportio n of
Place of Legal The company organizing
correlatio Corporate profession Registere n of voting
registratio represent finally party institution
n type al quality d capital shares in rights in
n ative control bar code
the the
Company company
95
Chongqing Changan Automobile Company Limited Semi-annual Report 2014
China Company Xu Liuping The main
Changan limited by automobil
Automobil shares e,
e Group motorcycl
Co ,Ltd e and
China South
dominant Place of parts 45,823,737
Industries
stockhold registratio design, ,000,000.0 39.73% 39.73% 71093394-8
Group
er n developm 0
Corporation
ent,
manufact
ure,
marketing
The parent company of this enterprise situation
The controlling shareholder, China changan automobile group co., LTD
Legal representative: xu ping
Date: on December 26, 2005
Organization code: 71093394-8
Registered capital: 4582373700 yuan
Main business and products: automobiles, motorcycles, automobile motorcycle engine, automobile motorcycle
parts and components design, development, manufacture, marketing; Optical products, electronic and
optoelectronic products, night vision equipment, information and communications equipment sales; With the
business related technology development, technology transfer, technical consulting, technical training,
technical services; Import and export business; Asset acquisitions, asset restructuring.
2、Other related parties
Related parties Relationship Organization code
China South Industries Group Corporation Ultimate holding company 71092492-9
Changan Ford Mazda Engine Co., Ltd Joint venture 71785962-1
Changan Ford Automobile Co., Ltd Joint venture 70937510-9
Changan Mazda Automobile Co., Ltd Joint Venture 71788527-2
Chongqing Changan Suzuki Automobile Co.,
Joint venture 62190016-7
Ltd
Jiangling Holding Co., Ltd Joint venture 76703230-7
Chongqing HelpGo Information Technology Associate
20287102-3
Co., Ltd
Chongqing changan kuayue vehicle Associate
45040622-7
marketing co., LTD
Chongqing Xiyi Automobile Linkage Rod Co., Associate
79589352-6
Ltd.
96
Chongqing Changan Automobile Company Limited Semi-annual Report 2014
Controlled by the same parent
South Tianhe Chassis System Co., Ltd 77487491-6
company
Controlled by the same parent
South Inter Air-conditioner Co, .Ltd 62192592-X
company
Chongqing Changfeng Jiquan Machinery Co., Controlled by the same parent
74745528-1
Ltd company
Chongqing Automobile Air-conditioner Co., Controlled by the same parent
20304827-4
Ltd company
Controlled by the same parent
Hafei Motor Co., Ltd. 60716197-8
company
Controlled by the same parent
Dongan Auto Engine Co., Ltd. 71201745-X
company
Harbin Dongan Automotive Engine Controlled by the same parent
71201711-8
Manufacturing Co., Ltd. company
Controlled by the same parent
Jiangxi Changhe Automobile Co., Ltd. 67799358-5
company
Controlled by the same parent
Jiangxi Changhe Suzuki Automobile Co., Ltd. 61271096-X
company
Controlled by the same parent
Hefei Changhe Automobile Co., Ltd 66143118-2
company
Controlled by the same parent
Chongqing Anfu Automobile Co., Ltd 73657088-2
company
China Changan Automobile Group Tianjin Controlled by the same parent
56610492-5
Sales Co., Ltd company
Chengdu Huachuan Electric Equipment Co., Controlled by the same parent
73021809-5
Ltd company
Chengdu Ningjiang Zhaohe Automobile Controlled by the same parent
20224398-3
Components Co., Ltd company
Sichuan Ningjiang Shanchuan Machinery Co, Controlled by the same ultimate
78914008-5
Ltd holding company
Controlled by the same ultimate
Chengdu NingXing automobile spring co., LTD 72343715-0
holding company
Controlled by the same ultimate
Chongqing Changan Construction Co., Ltd 20281750-9
holding company
Chongqing Changan Min Sheng Logistics Co., Controlled by the same ultimate
70942619-9
Ltd. holding company
Sichuan Hongguang Machinery and Electrics Controlled by the same ultimate
62170388-4
Co., Ltd holding company
97
Chongqing Changan Automobile Company Limited Semi-annual Report 2014
Beijing Beiji Mechanical and Electrical Industry Controlled by the same ultimate
10110292-X
Co., Ltd holding company
Chongqing Changan Real Estate Development Controlled by the same ultimate
20283366-8
Co., Ltd holding company
Controlled by the same ultimate
China South Industry Group Finance Co., Ltd 71093365-7
holding company
Controlled by the same ultimate
Changan Industries Group Co. Ltd 20281485-4
holding company
Controlled by the same ultimate
Chengdu Lingchuan Vehicle Oil Tank Co., Ltd 72807819-3
holding company
Controlled by the same ultimate
Chengdu Lingchuan Special Industry Co., Ltd 66302209-1
holding company
Chengdu Wanyou Economic Technological Controlled by the same ultimate
20196934-4
Development Co., Ltd holding company
Controlled by the same ultimate
Chengdu Wanyou Filter Co., Ltd 62170342-X
holding company
Hubei Xiaogan Huazhong Automobile Light Controlled by the same ultimate
71466819-2
Co., Ltd holding company
Controlled by the same ultimate
Wang auto investment co., LTD 59920037-4
holding company
Controlled by the same ultimate
Yunnan Xiyi Industries Co., Ltd 21652160-6
holding company
Controlled by the same ultimate
Chongqing Changrong Machinery Co., Ltd 70946451-5
holding company
Chongqing Dajiang Xinda Vehicles Shares Co., Controlled by the same ultimate
70943915-X
Ltd holding company
Controlled by the same ultimate
Chongqing Dajiang Yuqiang Plastic Co., Ltd 62190601-6
holding company
Chongqing Jianshe Automobile Air-conditioner Controlled by the same ultimate
75925214-X
Co., Ltd holding company
Chongqing Qingshan Transmission Sales Co., Controlled by the same ultimate
20314556-8
Ltd holding company
Chongqing Shangfang Automobile Fittings Controlled by the same ultimate
75008974-5
Co., Ltd holding company
Controlled by the same ultimate
Chongqing Wanbing Material Co., Ltd 75005068-0
holding company
Chongqing Wanyou Economic Development Controlled by the same ultimate
20286206-3
Co., Ltd holding company
98
Chongqing Changan Automobile Company Limited Semi-annual Report 2014
Chongqing Wanyou Auto Sales and Service Controlled by the same ultimate
20280671-5
Co.,Ltd holding company
Chongqing Yihong Engineering Plastic Controlled by the same ultimate
62190975-1
Products Co., Ltd holding company
Guangxi Wanyou Auto Sales and Service Co., Controlled by the same ultimate
75978537-6
Ltd holding company
Guizhou Wanyou Auto Sales and Service Co., Controlled by the same ultimate
70960979-6
Ltd holding company
Yunnan Wanyou Auto Sales and Service Co., Controlled by the same ultimate
70970600-0
Ltd holding company
Nanning Wanyou Auto Sales and Service Co., Controlled by the same ultimate
55940430-5
Ltd holding company
Chengdu Wanyou Xiangyu Auto Sales and Controlled by the same ultimate
55357636-8
Service Co., Ltd holding company
Chongqing Changan Visteon Engine Control Controlled by the same ultimate
76268659-8
Systems Co., Ltd. holding company
Chengdu Jialing Huaxi Optical & Precision Controlled by the same ultimate
78011710-2
Machinery Co., Ltd holding company
Chongqing Changan Property Management Controlled by the same ultimate
20281081-0
Co., Ltd. holding company
Renamed wang auto investment co.,
Southwest Ordnance Industry Corporation 59920037-4
LTD
3、related-party transaction
（1）Transactions of goods and services
Related parties Nature of the Connection Report period Same period of last year
transaction transaction
Amount Proportio Amount Proportio
pricing methods
n of n of
and
similar similar
decision-making
transacti transacti
process
ons (%) ons (%)
Based on
subtotal 3,701,530,377.65 18.01% 2,994,284,272.83 17.31%
agreement
99
Chongqing Changan Automobile Company Limited Semi-annual Report 2014
（2）Sales of goods and services to related parties
Related parties Nature of the Connection Report period Same period of last year
transaction transaction pricing Amount Proportio Amount Proportio
methods and n of n of
decision-making similar similar
process transacti transacti
ons (%) ons (%)
Based on
Subtotal 3,340,534,186.26 13.80% 2,899,593,668.06 14.35%
agreement
（3）Associated with the lease
Lessor Lessee Starting date Expiring date The basis for Yearly
Type of leased
rental pricing recognized
assets
rental
Chongqing Chongqing
Changan Min Changan Based on
building 2014.01.01 2014.12.31 6,000,000.00
Sheng Logistics agreement
Co., Ltd.
Chongqing Chongqing
Changan Real Changan
Based on
Estate building 2014.01.01 2014.12.31 1,195,332.00
agreement
Development
Co., Ltd
Chongqing Chongqing
Changan Real Changan
Based on
Estate building 2014.01.01 2014.12.31 1,600,000.00
agreement
Development
Co., Ltd
100
Chongqing Changan Automobile Company Limited Semi-annual Report 2014
（4）Other related party transactions
Expenses of integrated service charges
Related parties Nature of the transaction Report period Same period of last year
Amount Proportion of similar transactions (%) Amount Proportion of similar transactions (%)
Payment of land rental fees 11,892,475.50 11.27% 11,892,475.50 11.81%
Payment of building rental fees 16,627,741.50 15.75% 15,732,749.30 15.62%
Changan Industries
Payment of utilities 68,033,703.56 64.46% 66,318,734.92 65.85%
Group Co. Ltd
Payment of fire fighting fees 1,370,000.00 1.30% 1,370,000.00 1.36%
Others 4,725,941.09 4.48% 5,398,212.12 5.36%
Harbin Hafei
Automobile Industry integrated service charges 2,898,812.92 2.75% 0 0
Group Co., Ltd.,
Total 105,548,674.57 100.00% 100,712,171.84 100.00%
Purchase of project materials
Report period Same period of last year
Related parties Amount Proportion of similar Amount Proportion of similar transactions
transactions (%) (%)
Chongqing Changan Construction Co., Ltd 52,566,597.70 11.81% 38,460,883.00 5.41%
Chongqing Changan Min Sheng Logistics Co., Ltd. 1,289,229.87 0.29% 20,583,683.50 2.89%
Changan Industries Group Co. Ltd 1,268,200.24 0.28% 758,123.00 0.11%
Total 55,124,027.81 12.38% 59,802,689.50 8.41%
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
Staff expenses for technical supporting
Report period Same period of last year
Related parties Amount Proportion of similar Amount Proportion of similar
transactions (%) transactions (%)
Total 16,302,634.99 100.00% 7,905,275.00 100.00%
Trademark license income
Report period Same period of last year
Related parties
Amount Proportion of similar Amount Proportion of similar
transactions (%) transactions (%)
Chongqing Changan Kuayue Automobile Co.,Ltd 0 0 5,319,420.00 100%
Technical service income
Report period Same period of last year
Related parties
Amount Proportion of similar Amount Proportion of similar
transactions (%) transactions (%)
Harbin dongan automotive engine manufacturing co., LTD 0 0 684,800.00 17.19%
Chongqing Changan Suzuki Automobile Co., Ltd 100.00% 3,300,000.00 82.81%
991,656.23
Total 991,656.23 100.00% 3,984,800.00 100.00%
Related party monetary funds
Ending Beginning
102
Chongqing Changan Automobile Company Limited Semi-annual Report 2014
Amount Proportion of similar transactions Amount Proportion of similar transactions
Related parties
(%) (%)
Weapon equipment group finance co., LTD 2,703,025,729.22 37.00% 790,735,700.08 20.05%
Long-term borrowing
Ending Beginning
Amount Proportion of similar transactions Amount Proportion of similar transactions
Related parties
(%) (%)
Weapon equipment group finance co., LTD 100,000,000.00 26.45% 1,000,000,000.00 71.53%
103
Chongqing Changan Automobile Company Limited Semi-annual Report 2014
4、The affiliated party receivable accounts payable
Ending Beginning
Item Balance Provision Balance Provision
Accounts
receivable
Subtotal 1,940,480,000.00 1,753,530,000.00
bill receivable
Subtotal 71,580,864.29 155,083,577.83
Prepayment
Subtotal 2,250,949.57 2,792,794.34
The listed company to deal with related party
Item Ending Beginning
notes payable
Subtotal 340,839,797.54 1,461,824,482.28
Account payable
Subtotal 866,139,987.92 871,094,100.75
Deferred revenue
Subtotal 188,003,491.38 219,890,629.51
Other payables
Subtotal 227,893,545.89 266,398,740.86
九、Other important matters
In the fair value of assets and liabilities
Included in the
Changes in the fair
cumulative changes
value of the current This provision for
Item Beginning in the fair value of Ending
period profit and impairment
the rights and
loss
interests
financial assets
Measured at fair value
and the changes are
104
Chongqing Changan Automobile Company Limited Semi-annual Report 2014
included in the current
profits and losses of gold
Available for sale
257,319,416.00 -62,183,303.33 173,564,660.00
financial assets
Subtotal 257,319,416.00 -62,183,303.33 173,564,660.00
The investment real
estate
The productive biological
assets
Total 257,319,416.00 -62,183,303.33 173,564,660.00
Financial liabilities 0.00 0.00
十、Notes to the Company’s financial statements
1、Accounts Receivable
Ending Beginning
Item Balance Provision Balance Provision
Amount % Amount % Amount % Amount %
Individually significant
items and analyzed 107,920,378.11 5.33% 40,432,696.53 2.82%
individually for provision
Accounts receivable analyzed as groups for provision
Group 1. Accounts
receivable analyzed for
317,587,678.56 15.68% 39,943,544.79 12.58% 59,555,988.83 4.16% 39,547,040.38 66.40%
provision according to
aging analysis
Group 2. Accounts
receivable from related 1,599,570,719.44 78.99% 1,333,488,792.59 93.02% 0.00
parties
Group subtotal 1,917,158,398.00 94.67% 39,943,544.79 2.08% 1,393,044,781.42 97.18% 39,547,040.38 66.40%
Total 2,025,078,776.11 -- 39,943,544.79 -- 1,433,477,477.95 -- 39,547,040.38 --
Within groups, accounts receivable analyzed for provision according to aging analysis
Ending Beginning
Balance Balance
Aging
Percenta Provision Percenta Provision
Amount Amount
ge (%) ge (%)
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
Within 1 year
-- -- -- -- -- --
Within 6
270,793,673.22 85.27% 11,723,964.33 19.69%
months
6 to 12 months 524,873.86 0.17% 26,243.69 234,146.46 0.39% 11,707.32
Within 1 year
271,318,547.08 85.43% 26,243.69 11,958,110.79 20.08% 11,707.32
subtotal
1 to 2 years 2,113,986.56 0.67% 211,398.66 2,078,683.07 3.49% 207,868.31
2 to 3 years 468,630.01 0.15% 140,589.00 878,111.50 1.47% 263,433.45
3 to 4 years 6,937,647.73 2.18% 3,468,823.87 11,154,104.35 18.73% 5,577,052.18
4 to 5 years 3,261,888.06 1.03% 2,609,510.45
Over 5 years 33,486,979.12 10.54% 33,486,979.12 33,486,979.12 56.23% 33,486,979.12
Total 317,587,678.56 -- 39,943,544.79 59,555,988.83 -- 39,547,040.38
2、Other receivables
Ending Beginning
Item Balance Provision Balance Provision
Amount % Amount % Amount % Amount %
Individually significant items
and analyzed individually for 123,832,000.00 50.33% 123,460,000.00 22.30%
provision
Other receivables analyzed as groups for provision
Group 1. Other receivables
analyzed for provision 68,626,295.01 27.89% 3,042,560.12 4.43% 43,265,117.90 7.81% 2,890,162.19 6.68%
according to aging analysis
Group 2. Other receivables
53,605,030.11 21.79% 386,910,779.59 69.89%
from related parties
Group subtotal 122,231,325.12 49.67% 3,042,560.12 1.49% 430,175,897.49 77.70% 2,890,162.19 0.67%
Individually significant items
and analyzed individually for
provision
Total 246,063,325.12 -- 3,042,560.12 -- 553,635,897.49 -- 2,890,162.19 --
Within groups, other receivables analyzed for provision according to aging analysis
Ending Beginning
Aging
Balance Provision Balance Provision
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
Amount % Amount %
Within 1 year
-- -- -- -- -- --
Within 6 months 60,324,611.74 87.90% 34,538,599.66 79.83%
6 to 12 months 1,695,460.23 2.47% 84,773.01 4,018,896.42 9.29% 200,944.80
Within 1 year 90.37%
62,020,071.97 84,773.01 38,557,496.08 89.12% 200,944.80
subtotal
1 to 2 years 2,208,801.03 3.22% 220,880.10 369,199.81 0.85% 36,919.99
2 to 3 years 1,781,230.00 2.60% 534,369.00 1,976,678.01 4.57% 593,003.40
3 to 4 years 801,948.01 1.17% 400,974.01 600,900.00 1.39% 300,450.00
4 to 5 years 63,400.00 0.09% 50,720.00 10,000.00 0.02% 8,000.00
Over 5 years 1,750,844.00 2.55% 1,750,844.00 1,750,844.00 4.05% 1,750,844.00
Total 68,626,295.01 -- 3,042,560.12 43,265,117.90 -- 2,890,162.19
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
3、Long-term equity investments
Explanation for the
difference between
Accountin Shareholding Voting shareholding percentage Current
Investee g method Initial amount Beginning Addition/(deduction) Ending percentage (%)percentage (%) and voting percentage Impairment provision Current cash dividends
Joint ventures
Chongqing Changan Suzuki Equity N/A
239,905,266.00 1,422,871,007.19 6,113,593.00 1,428,984,600.19 51.00% 51.00%
Automobile Co., Ltd
Jiangling Holding Co., Ltd Equity 1,000,000,000.00 1,970,068,511.81 211,445,447.83 2,181,513,959.64 50.00% 50.00% N/A
Changan Ford Automobile Co., Equity N/A
Ltd （former name: Changan
951,589,136.29 5,168,880,471.54 -366,252,089.98 4,802,628,381.56 50.00% 50.00% 4,050,000,000.00
Ford Mazda Automobile Co.,
Ltd ）
Changan Ford Mazda Engine Equity N/A
1,097,839,635.00 1,165,287,267.32 202,241,113.72 1,367,528,381.04 50.00% 50.00%
Co., Ltd
Changan Mazda Automobile Equity N/A
786,734,634.10 599,468,669.92 58,684,552.90 658,153,222.82 50.00% 50.00%
Co., Ltd
Changan PSA Automobiles N/A
Equity 2,007,841,700.00 1,957,257,672.14 -161,834,720.95 1,795,422,951.19 50.00% 50.00%
Co., Ltd
Associates
Chongqing Xiyi Automobile Equity N/A
6,714,720.64 8,772,039.08 358,331.84 9,130,370.92 40.00% 40.00%
Linkage Rod Co., Ltd
Chongqing Changan Kuayue Equity N/A
61,800,885.00 64,068,246.00 -1,001,098.06 63,067,147.94 34.30% 34.30%
Automobile Co., Ltd
Chongqing Changan Kuayue Equity 1.00 34.30% 34.30% N/A
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
Automobile Sales Co., Ltd
Beijing Fang’an taxi Co., Ltd Equity 6,000,000.00 998,629.64 -998,629.64 0.00 42.25% 42.25% N/A
Subsidiaries
Nanjing Changan Automobile Commissioned by minorities
cost 413,805,259.00 422,533,259.00 422,533,259.00 84.73% 93.79%
Co., Ltd to exercise voting rights
Hebei Changan Automobile Commissioned by minorities
cost 437,635,236.00 437,935,236.00 437,935,236.00 94.15% 95.70%
Co., Ltd to exercise voting rights
Chongqing Changan Cost N/A
International Automobile Sales 13,068,580.00 13,068,580.00 13,068,580.00 95.00% 95.00%
Co., Ltd
Chongqing Changan Cost N/A
Automobile supporting 29,700,000.00 29,700,000.00 29,700,000.00 99.00% 99.00%
service Co., Ltd.
Chongqing Changan Cost N/A
48,500,000.00 48,500,000.00 48,500,000.00 100.00% 100.00%
Automobile Sales Co., Ltd
Chongqing Changan Cost N/A
Automobile sales 8,050,000.00 8,050,000.00 8,050,000.00
subsidiaries
Chongqing Changan Special Cost N/A
2,500,000.00 2,500,000.00 2,500,000.00 50.00% 50.00%
Automobile sales Co., Ltd
Chongqing Changan Europe Cost N/A
134,879,700.00 134,879,700.00 134,879,700.00 100.00% 100.00%
Design Academy Co., Ltd
Chongqing Changan new Cost N/A
18,850,000.00 18,850,000.00 18,850,000.00 65.00% 65.00%
Engergy Automobile Co. Ltd
Changan United Kingdom R&D Cost 981,934.40 981,934.40 981,934.40 100.00% 100.00% N/A
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
Center Co., Ltd.
Beijing Changan R&D Center Cost N/A
1,000,000.00 1,000,000.00 1,000,000.00 100.00% 100.00%
Co., Ltd.
Ha’erbin Changan R&D Center Cost N/A
1,000,000.00 1,000,000.00 1,000,000.00 100.00% 100.00%
Co., Ltd.
Jiangxi Changan R&D Center Cost N/A
2,000,000.00 2,000,000.00 2,000,000.00 100.00% 100.00%
Co., Ltd.
Shanghai Changan R&D Center Cost N/A
1,000,000.00 1,000,000.00 1,000,000.00 100.00% 100.00%
Co., Ltd.
Changan Japan Designing Cost N/A
1,396,370.15 1,396,370.15 1,396,370.15 100.00% 100.00%
Center Co., Ltd.
Changan United States R&D Cost N/A
1,317,720.00 1,317,720.00 1,317,720.00 100.00% 100.00%
Center Co., Ltd.
Hebei Baoding Changan Bus Cost N/A
176,002,613.18 176,002,613.18 176,002,613.18 100.00% 100.00%
Co., Ltd.
Hefei Changan Automobile
440,606,230.50 41,674,004.10 41,674,004.10 100.00% 100.00%
Co., Ltd
Others N/A
China South Industry Group Cost N/A
80,000,000.00 80,000,000.00 80,000,000.00 5.33% 5.33% 31,252,435.46
Finance Co., Ltd
Chongqing Ante Import and Cost N/A
3,000,000.00 3,000,000.00 3,000,000.00 10.00% 10.00%
Export Co., Ltd
Sichuan Glass Co., Ltd Cost 1,809,274.00 1,809,274.00 1,809,274.00 0.64% 0.64% N/A
Zhong Fa Lian Investment Co., Cost N/A
21,000,000.00 21,000,000.00 21,000,000.00 10.00% 10.00%
Ltd
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
CAERI(Beijing) automotive Cost N/A
Lightweight Technology 3,000,000.00 3,000,000.00 3,000,000.00 6.89% 6.89%
Research Institution Co., Ltd
Total -- 7,558,922,664.76 13,767,197,201.37 -9,569,495.24 13,757,627,706.13 -- -- -- 4,081,252,435.46
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
4、Operating revenue and cost
（1）Operating revenue, operating cost
Item Report period Same period of last year
Operating revenue 23,528,685,730.58 15,450,282,803.05
Other operating revenue 634,087,777.22 565,783,991.47
Total 24,162,773,507.80 16,016,066,794.52
Operating cost 20,396,414,542.63 13,418,745,332.34
（2）Main business (divisions)
Report period Same period of last year
Industry
Revenue Cost of sales Revenue Cost of sales
motor industry 23,528,685,730.58 19,985,969,177.07 15,450,282,803.05 12,984,727,449.95
Total 23,528,685,730.58 19,985,969,177.07 15,450,282,803.05 12,984,727,449.95
（3）Main business (product)
Industry Report period Same period of last year
Revenue Cost of sales Revenue Cost of sales
Sales of goods 23,419,445,947.12 19,884,481,835.46 15,341,532,627.44 12,898,118,918.70
Outsourcing processing 109,239,783.46 101,487,341.61 108,750,175.61 86,608,531.25
Total 23,528,685,730.58 19,985,969,177.07 15,450,282,803.05 12,984,727,449.95
5、Investment income
（1）Details of investment income
Item Report period Same period of last year
Long-term equity investment income under cost method 31,252,435.46 27,013,203.42
Long-term equity investment income under equity method 3,998,756,500.66 1,774,141,795.34
Long-term equity investment income through disposal -250,733.75
Others 1,775,000.00
Long-term equity investment income under cost method 5,825,000.00 4,283,333.33
Total 4,035,833,936.12 1,806,962,598.34
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
（2）Long-term equity investment income under cost method
Same period of last
Investee Report period Reason
year
Chongqing antell import and export trade co.,
3,600,000.00 The current dividend
LTD
China South Industry Group Finance Co., Ltd 31,252,435.46 23,413,203.42 The current dividend
Total 31,252,435.46 27,013,203.42 --
十一、Additional information
1、Schedule of non-recurring profit and loss
Project Amount
Gain/loss of non-current assets 2,757,997.59
The government subsidies included in the current profits and
losses (except government subsidies closely related to corporate 76,777,987.45
business, entitled in fixed quota or quantity)
Current net profit from beginning to combined date of business
-43,588,252.13
combination under common control
Investment income from disposing available-for-sale equity securities 54,031,310.36
Other non-business income and expenditures other than the above items 5,662,962.67
Subtract: Influenced amount of income tax 26,221,590.93
Influenced amount of miniority shareholders equity (after tax) 4,304,187.07
Total 65,116,227.94
2、Return on equity and earnings per share
Current profit Weighted average return on Earnings per share
equity (%)
Basic EPS Basic EPS
Net profit attributable to the Company’s
17.61% 0.78 0.78
ordinary shareholders
Net profit attributable to the Company’s
ordinary shareholders after deducting 17.30% 0.76 0.76
non-recurring profit and loss
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
3、The company is mainly the abnormal situation and the reasons of the project to the financial statements
Same period of Y-o-y
Item Current period Reasons for changes
last year（restated）increase/decrease
Increase in the sales and the proportion of
Business tax and surcharges 925,095,503.04 641,778,379.65 44.15% high-tax-rate models, which led the increase in
consumption tax
Decrease in interest income and increase in
Financial expenses 89,149,560.21 52,854,680.48 68.67%
interest expenses
Impairment loss on fixed assets and intangible
Impairment loss on assets 32,554,907.42 125,275,943.79 -74.01%
assets in previous period.
Large increase in investment income from
Investment income 4,084,040,246.48 1,804,771,615.58 126.29%
Changan Ford.
Non-operating income 90,453,586.04 58,649,825.72 54.23% Increase in government grant.
Large increase in investment income from the
Total profit 3,615,297,138.57 1,246,581,987.73 190.02%
joint ventures.
Increase in current income tax expenses and
Income tax expense -530,676.54 29,069,608.63 -101.83%
decrease in deferred income tax expenses.
Net profit attributable to Large increase in investment income from the
3,628,092,998.93 1,230,503,367.66 194.85%
owners joint ventures.
Subtotal of cash inflow from
2,843,012,123.55 378,986,812.76 650.16% Receiving large dividends from Changan Ford.
investment activities
Subtotal of cash in-flow from
-3,129,616,790.47 -1,293,898,618.99 -141.87% Large increase in repayment for liabilities.
financing activity
Cash 7,461,227,083.58 4,535,825,972.55 64.50% Receiving large dividends from Changan Ford.
Increase in receivable of tax reimbursement for
Other receivables 279,473,983.53 211,810,998.81 31.94%
export
Available-for-sale financial
173,564,660.00 257,319,416.00 -32.55% disposing financial assets held for trading
assets
Construction in progress 925,772,449.97 1,328,773,757.05 -30.33% CIP transfer to fixed assets
Short-term loans 378,000,000.00 1,398,000,000.00 -72.96% repayment for short term loan
Taxes payable 420,351,797.23 113,689,600.15 269.74% Increase in VAT and CIT payable
Non-current liabilities within
0.00 520,000,000.00 -100.00% repayment for bank loan
one year
Long-term loans 0.00 1,270,000,000.00 -100.00% repayment for long term loan
Provisions 1,525,358,299.45 1,117,167,286.59 36.54% Decrease in warranty
Decrease in accumulated amount of change on
Deferred tax liabilities 25,779,708.54 41,842,961.06 -38.39% fair value recorded in other comprehensive
income of available-for-sale equity securities
Retained earnings 11,704,287,219.85 8,543,591,148.40 36.99% Large increase in net profit during the period.
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Chongqing Changan Automobile Company Limited Semi-annual Report 2014
IX. List of Reference Documents
Reference file directory
A semi-annual report, with the legal representative signature text;
Second, with the legal representative, director, head of the accounting work, accounting body signature and
seal of the financial statements;
Three, the board of directors and directors, senior executives signed written confirmation files;
Four, by resolution of the board of supervisors of audit opinion in writing;
Five, the reporting period the company in the China securities journal, the securities times, "Hong Kong
commercial daily" on public disclosure of the originals of all company documents and public announcement of
the manuscript.
The above reference documents required in the China securities regulatory commission, the shenzhen stock
exchange according to law and the articles of association of the company and the shareholders request
access to, the company will provide timely.
chairman：xuliuping
The board of directors approved submit date: August 29, 2014
115
