Chongqing Changan Automobile
Company Limited
2022 Annual Report
April 2023
Chongqing Changan Automobile Company Limited 2022 Annual Report
Chapter 1 Important Notice, Contents, and Definitions
1. The Board of Directors (or the “Board”), the Supervisory Board as well as the directors, supervisors
and senior managers of Chongqing Changan Automobile Co., Ltd. hereby guarantee the factuality,
accuracy and completeness of the contents of this Report and its summary, and shall be jointly and
severally liable for any misrepresentations, misleading statements or material omissions therein.
2. Zhu Huarong, the Company’s legal representative, Zhang Deyong, the Company’s Chief Financial
Officer and Chen Jianfeng, the person-in-charge of the accounting organ hereby guarantee that the
financial statements carried in this Report are factual, accurate, and complete.
3. Except the following directors, all the directors have attended the board meeting for reviewing this
Report.
Name of the directors absent Positions Reasons for the absence Name of the Trustees
Zhang Bo Director Work reasons Xian Zhigang
Liu Gang Director Work reasons Zhang Deyong
Li Keqiang Independent Director Work reasons Ren Xiaochang
4. Any prospective description such as future business plans and development strategies in this Report
shall not be considered as the Company’s commitment to investors. Investors and relevant persons
shall be sufficiently mindful of risks, and undertake the difference in plans, predictions and
commitment.
5. Chapter III “Management Discussion and Analysis” of this Report describes the possible risks and
countermeasures of the Company, and investors shall pay attention to the relevant content.
6. The Board has approved a final dividend plan as follows: Based on 9,921,799,422 shares, a cash
dividend of RMB 2.36 (tax included) per 10 shares is to be distributed to all shareholders, without
transferring capital reserve to share capital.
This Report have been prepared in both Chinese and English. Should there be any discrepancies or
misunderstandings between the two versions, the Chinese version shall prevail.
1
Chongqing Changan Automobile Company Limited 2022 Annual Report
CONTENTS
Chapter 1 Important Notice, Contents, and Definitions............................................. 1
Chapter 2 Company Profile and Main Financial Indexes .......................................... 5
Chapter 3 Management Discussion and Analysis ...................................................... 9
Chapter 4 Corporate Governance ............................................................................. 37
Chapter 5 Environmental and Social Responsibility ............................................... 57
Chapter 6 Significant Events .................................................................................... 66
Chapter 7 Share Changes and Shareholder Information .......................................... 71
Chapter 8 Preference Shares .................................................................................... 76
Chapter 9 Bonds ....................................................................................................... 77
Chapter 10 Auditor’s Report ....................................................................................... 80
2
Chongqing Changan Automobile Company Limited 2022 Annual Report
Documents Available for Reference
I. Financial statements carrying the signatures and seals of the Company’s legal representative, the Chief Financial
Officer, and the person-in-charge of the accounting organ.
Ⅱ. The 2022 Auditor’s Report stamped by the accounting firm and signed and stamped by chartered accountants.
Ⅲ. During the reporting period, the original copies of all company documents and announcements publicly
disclosed by the Company in China Securities Journal, Securities Times, Securities Daily, Shanghai Securities News,
and Hong Kong Commercial Daily.
IV. Annual Reports disclosed in other securities markets.
Definitions
Items Definitions
Changan Auto, Changan
Refers to Chongqing Changan Automobile Co., Ltd.
Automobile, the Company
China South Industries Group Corporation, the Company’s actual
CSG Refers to
controller
China Changan Automobile Group Co., Ltd., formerly known as China
China Changan Refers to
South Industries Automobile Co., Ltd., a subsidiary company of CSG
Chongqing Changan Industry (Group) Co., Ltd., formerly known as
Changan Industry Refers to
Changan Automobile (Group) Co., Ltd., a subsidiary company of CSG
Nanjing Changan Automobile Co., Ltd., a subsidiary company of the
Nanjing Changan Refers to
Company
Hebei Changan Automobile Co., Ltd., a subsidiary company of the
Hebei Changan Refers to
Company
Hefei Changan Automobile Co., Ltd., a subsidiary company of the
Hefei Changan Refers to
Company
Changan Bus Refers to Baoding Changan Bus Co., Ltd., a subsidiary company of the Company
Kaicheng Automotive Technology Co., Ltd., a subsidiary company of the
Kaicheng Automobile Refers to
Company
Chongqing Changan Automobile International Sale Service Co., Ltd., a
CIC Refers to
subsidiary company of the Company
Changan Ford Refers to Changan Ford Automobile Co., Ltd., a JV of the Company
Changan Mazda Refers to Changan Mazda Automobile Co., Ltd., a JV of the Company
CME Refers to Changan Mazda Engine Co., Ltd., a JV of the Company
Jiangling Holding Refers to Jiangling Holding Co., Ltd., an associate of the Company
Changan Finance Refers to Changan Automobile Financing Co., Ltd., an associate of the Company
China South Industries Group Finance Co., Ltd., a subsidiary company of
CSG Finance Refers to
South Industries
UPI Refers to United Prosperity Investment Co., Ltd., a subsidiary company of China
3
Chongqing Changan Automobile Company Limited 2022 Annual Report
Changan
Chongqing Changan Technology Co., Ltd., a subsidiary company of the
Changan Technology Refers to
Company
Chongqing Changan New Energy Vehicle Technology Co., Ltd., formerly
an associate of the Company, renamed as Deep Blue Automotive
Changan New Energy Refers to
Technology Co., Ltd. on April 6th, 2023, currently a subsidiary company
of the Company
Avatr Refers to Avatr Technology (Chongqing) Co. Ltd., an associate of the Company
4
Chongqing Changan Automobile Company Limited 2022 Annual Report
Chapter 2 Company Profile and Main Financial Indexes
I. Basic Information
Stock abbreviation Changan Automobile, Changan B Stock Code 000625, 200625
Listed on Shenzhen Stock Exchange
Company name in Chinese 重庆长安汽车股份有限公司
Chinese abbreviation 长安汽车
Company name in English Chongqing Changan Automobile Co., Ltd.
Legal representative Zhu Huarong
Registered address No. 260, East Jianxin Road Jiangbei District, Chongqing
Post code of the registered
400023
address
No. 260, East Jianxin Road, Jiangbei District, Chongqing.
Office address
Building T2, No. 2, Financial City, No. 61 Dongshengmen Road, Jiangbei District, Chongqing.
Post code of the office address 400023
Website http://www.changan.com.cn
E-mail address cazqc@changan.com.cn
Ⅱ. Contact Information
Secretary of the Board of Directors Securities affairs representative
Name Zhang Deyong, Li Jun
Building T2, No. 2, Financial City, No. 61
Contact address Dongshengmen Road, Jiangbei District,
Chongqing
TEL 023-67594008
FAX 023-67866055
E-mail address cazqc@changan.com.cn
Ⅲ. Information Disclosure and Filing Site
Stock exchange website where this Report is discl
http://www.szse.cn
osed
China Securities, Journal, Securities Times, Securities Daily, Shanghai
Media and website where this Report is disclosed
Securities News, Hong Kong Commercial Daily and www.cninfo.com.cn
Place where this Report is lodged Board Office of the Company
IV. Changes of Registration Information
Organization Code 9150000020286320X6
Changes in the main business since the
Not applicable
Company’s listing
Changes of controlling shareholder since 1. In December 2005, according to the restructuring program on automobile business, the
incorporation (if any) Company’s actual controller, CSG transferred all state-owned shares of Changan
Automobile (Group) Company Limited (“Changan Group”) as part of funding for China
5
Chongqing Changan Automobile Company Limited 2022 Annual Report
South Industries Automobile Co., Ltd. In March 2006, all shares held by Changan Group
have been transferred to China South Industries Automobile Co., Ltd. China South
Industries Automobile Co., Ltd. became the majority shareholder of the Company, and
Changan Group holds zero share since then.
2. In July 2009, with the approval of State Administration for Industry and Commerce,
“China South Industries Automobile Co., Ltd.” changed its name to “China Changan
Automobile Group Co., Ltd.”. No change occurred in its property, ownership and control
of the Company.
3. In February 2019, “China Changan Automobile Group LLC” changed its name to
“China Changan Automobile Group Co., Ltd.” with the approval of Beijing
Administration for Industry and Commerce. The company changed from a joint stock
company to a limited liability company.
V. Other Relevant Information
The audit firm employed by the Company
Name Ernst & Young Hua Ming LLP (Special General Partnership)
17th Floor, Ernst & Young Tower, Oriental Plaza, No. 1 East Chang An Avenue, Dong Cheng
Office address
District, Beijing, China
Accountants writing signatures Qiao Chun, Yuan Yong
The independent sponsor employed by the Company to exercise constant supervision over the Company in the reporting period
√ Applicable □Not applicable
Sponsor
Name Office address Supervision period
representative
CITIC Securities 21st Floor, CITIC Securities Building, No. 48 He Yang, Chen October 26, 2020 -
Co., Ltd. Liangmaqiao Road, Chaoyang District, Beijing Shumian December 31, 2021
Note: CITIC Securities Co., Ltd. is the recommendation institution for the continuous supervision of the company's non-public
offering of shares in 2020.
The independent financial advisor employed by the Company to exercise constant supervision over the Company in the reporting
period
□ Applicable √ Not applicable
VI. Key Accounting Data and Financial Indexes
Does the Company need to retrospectively adjust or restate the accounting data of previous years?
□Yes √ No
YoY change
2022 2021 2020
(%)
Operating revenue (RMB) 121,252,864,085.40 105,141,877,237.05 15.32% 84,565,544,146.58
Net profit attributable to
shareholders of the 7,798,451,093.72 3,552,463,320.03 119.52% 3,324,251,164.16
Company (RMB)
Net profit after deduction
of non-recurring gains or
losses attributable to 4,458,919,314.80 1,652,771,338.77 169.78% -3,249,984,527.77
shareholders of the
Company(RMB)
Net cash flow from
5,666,346,858.52 22,971,723,210.84 -75.33% 10,675,953,479.24
operating activities (RMB)
Basic earnings per share
0.80 0.36 122.22% 0.34
(RMB/share)
Diluted earnings per share
0.78 0.36 116.67% Not applicable
(RMB/share)
Weighted average ROE
13.07% 6.53% 6.54% 7.13%
(%)
6
Chongqing Changan Automobile Company Limited 2022 Annual Report
YoY change
31 December 2022 31 December 2021 31 December 2020
(%)
Total assets (RMB) 146,048,555,951.92 135,404,623,479.63 7.86% 118,265,186,394.86
Net assets attributable to
shareholders of the 62,858,105,705.70 55,732,932,103.72 12.78% 53,410,193,236.09
Company (RMB)
The lower of the Company’s net profit before and after deduction of non-recurring gains and losses in the most recent three fiscal years
is negative, and the audit’s report of last year shows that the Company’s ability to continue operations is uncertain.
□Yes √ No
The lower of the net profit before and after non-recurring gains and losses is negative.
□Yes √ No
VII. The Differences between Chinese Accounting Standards and International Financial
Reporting Standards
1. Differences in net profit and net asset attributable to shareholders in financial report disclosed in
accordance with International Financial Reporting Standards and Chinese Accounting Standards
□ Applicable √ Not applicable
No difference during the reporting period.
2. Differences of net profit and net assets disclosed in financial reports prepared under Overseas Financial
Reporting Standards and Chinese Accounting Standards
□ Applicable √ Not applicable
No difference during the reporting period.
3. Reasons for differences in accounting data under Chinese Accounting Standards and International
Financial Reporting Standards
□ Applicable √ Not applicable
VIII. Key Financial Indexes of 2022 by Quarter
Unit: RMB
First Quarter Second Quarter Third Quarter Forth Quarter
Operating revenues 34,575,856,873.59 21,997,711,520.12 28,778,056,089.43 35,901,239,602.26
Net profit attributable to shareholders of the
4,536,355,136.07 1,321,270,999.71 1,042,292,116.23 898,532,841.71
Company
Net profit attributable to shareholders of the
Company after deducting non-recurring 2,269,972,838.78 830,140,980.56 739,364,812.69 619,440,682.77
gains and losses
Net cash flow from operating activities 769,267,734.42 5,082,968,685.78 -2,069,436,274.57 1,883,546,712.89
Whether there are significant differences between the above-mentioned financial indexes or its total number and the relevant financial
indexes disclosed in the Company’s quarterly report and semi-annual report
□ Yes √ No
IX. Items and Amounts of Non-Recurring Gains and Losses
√ Applicable □Not applicable
Unit: RMB
Items 2022 2021 2020 Explanation
Gains or losses on disposal of non-current assets 74,862,481.00 745,601,530.26 29,465,046.07
7
Chongqing Changan Automobile Company Limited 2022 Annual Report
(inclusive of impairment allowance write-offs)
Government subsidies charged to current gains
or losses (exclusive of government subsidies
given in the Company’s ordinary course of 1,134,358,181.32 1,335,952,105.80 797,901,407.24
business at fixed quotas or amounts as per the
government’s uniform standards)
Gains or losses on fair-value changes on held for
trading financial assets (exclusive of the
3,570,229.29 42,078,804.00 2,035,390,665.86
effective portion of hedges that arise in the
Company’s ordinary course of business)
Gains and losses on entrusted loans 6,959,316.00 13,768,160.42
Losses from business combination not under
-6,937,641.07
common control
Gains from disposal of long-term equity
1,398,196,002.13
investments
The subsidiary
Avatr has
introduced investors
for capital increase,
and based on the
evaluation results
on March 11, 2022
as the benchmark
date, the income on
the statement has
Gains from the remeasurement of the remaining been confirmed. For
2,128,313,646.36 2,246,681,836.54
equity at fair value after the loss of control details, please refer
to the "Progress
Announcement on
Controlling
Subsidiaries to
Increase Capital and
Expand Shares
through Public
Listing" disclosed
on the same day on
CNINFO
Non-operating income and expense other than
77,519,377.00 90,085,373.52 -27,519,486.75
the above
Deferred payment interest on funds charged to
40,505,154.81 11,853,260.69 17,795,918.37
non-financial corporations
Reversal of impairment provision for accounts
2,847,641.57
receivable subject to separate impairment testing
Minus: influenced amount of income tax 94,817,746.44 196,630,848.39 -91,514,483.25
Non-controlling interests effects (after tax) 27,627,185.99 136,207,560.62 22,020,700.13
Total 3,339,531,778.92 1,899,691,981.26 6,574,235,691.93
Particulars about other gains and losses that meet the definition of non-recurring gain/loss
□ Applicable √ Not applicable
No such cases for the reporting period.
Explanation of why the Company reclassifies non-recurrent gain/loss as a recurrent gain/loss item listed in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Extraordinary Gain/Loss
Items
□ Applicable √ Not applicable
No such cases for the reporting period.
8
Chongqing Changan Automobile Company Limited 2022 Annual Report
Chapter 3 Management Discussion and Analysis
I．Industry Overview in 2022
1. The industry analysis
2022 is a year which is full of challenges and opportunities for China’s auto industry. Despite the impact of macroeconomic
downturn, the automobile industry withstood the pressure and numerous tests. The annual auto sales rose by 2.1 percent. Especially
the new energy vehicles maintained a rapid growth momentum and their sales hit a new high. At the same time, car exports increased
significantly and the annual export exceeded 3 million units. Amid transformation and multiple challenges, China’s auto industry is
entering a new stage of development. The details are as follows.
In 2022, the cumulative production and sales of the auto industry reached 27.021 million units and 26.864 million units, up by
3.4% and 2.1% year-on-year respectively. Since 2017, the sales volume has achieved two consecutive increases for the first time and
China’s scale of production and sales has been the first in the world for 14 consecutive years. The passenger vehicle market still showed
enough resilience in recent years. The cumulative production and sales of the passenger vehicle reached 23.836 million units and 23.563
million units, up by 11.2% and 9.5% year-on-year, respectively, both of which significantly outperformed the industry. Chinese brands
mainly contributed to the growth in the passenger car market and market share climbed to a record high, mainly due to the dominant
position of the new energy vehicles. The commercial vehicle market was affected by factors such as the surging demand brought by
the previous emission and overloading restriction policies. The production and sales of commercial vehicles declined by more than 30%
year on year, which was a decline for two consecutive years, and 2022 sales volume compared to 2009 fell to a new low in 14 years.
New energy vehicles continue to show explosive growth. Their sales hit a new high and was the largest growth point of the
automobile market, the production and sales volume of new energy vehicles reached 7.058 million units and 6.887 million units
respectively, with year-on-year growth exceeding 90%. New energy vehicles become a bright color in the current automobile market.
In the new energy passenger car market, the sales volume of pure electric models accounted for more than 70%, occupying an absolute
share advantage. Plug-in hybrid models have been growing rapidly in recent two years, maintaining a high growth trend. The
competition in the new energy industry has quietly changed. Chinese brands rank the first place in the annual sales of pure electric
passenger cars and the growth rate of the new power car enterprises slowed down. Also, the internal pattern changed. In the
transformation towards new energy vehicles, the traditional leading OEMs have faced the competition by launching new energy brands
and they overtook the new players.
In 2022, automobile export of China exceeded 3 million units, and automobile export has become a new growth point of the
industry after new energy vehicles. In recent years, under the correct guidance of national policies, Chinese automobile enterprises
have continued to strengthen technological innovation, and the competitiveness of independent brands has been continuously improved.
In particular, independent brands have made considerable progress in the fields of new energy and intelligence in recent years, which
has further enhanced the image status of Chinese automobiles in overseas markets and promoted the increase of export sales. In addition,
with the gradual expansion of automobile export scale, the “going global” mode of Chinese OEMs is also constantly enriched, from
the single export, gradually expanded to overseas investment and construction of factories.
China's Automobile Sales Volume and Growth Rate from 2001 to 2022
Sales Volume Growth Rate
Unit: 10,000 units
50.0% 3500
46.1%
40.0% 2888 3000
2803 2808
37.0% 2686
35.2% 2577 2531 2627
32.4% 2460
30.0% 2349 2500
2198
25.1%
21.8% 1931
20.0% 1806 1851 2000
14.1% 15.5%
13.5% 13.9% 13.7%
10.0% 1364 1500
6.7% 6.9%
4.3% 4.7% 3.8%
2.5% 3.0% 2.1%
0.0% 879 938 1000
722 -2.8% -1.9%
576
439 507 -8.2%
-10.0% 325 500
237
-20.0% 0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Source: China Automobile Industry Newsletter of Production & Sales and other industry information released from the China
9
Chongqing Changan Automobile Company Limited 2022 Annual Report
Association of Automobile Manufacturers.
2. Changan Auto’s performance
In 2022, thoroughly studied and implemented the spirit of Xi Jinping's important instructions, Changan effectively responded to
the grim and complex international situation and the huge risks and challenges that entailed it, and made every effort to overcome
challenges With the key of “strengthening the foundation, pursuing progress through innovation, restructuring the system and taking
the lead“, the company strives to promote the high-quality development of enterprises, proactively constructs a new development
pattern, steadily pushes forward the Third Business Venture — Innovation & Entrepreneurship Program, and constantly breaks the
waves on the channel of promoting the transformation and development of enterprises with a vigorous spirit.
In 2022, Changan overcame the repeated influence of multiple uncertain factors and controlled the operation quality. The annual
sales volume was 2.346 million units, with a year-on-year growth of 2.0%. The market share remained unchanged. The sales volume
of Changan Chinese brand cars was 1.875 million, with a year-on-year growth of 6.8%, ranking the second in the industry. Changan
new energy vehicle sales exceeded 270,000 units with a year-on-year growth rate much better than the new energy vehicle industry.
Changan took resolute and daring actions to respond to the 20th CPC National Congress!
3. Industrial policies
(1) Announcement on the reduction of the purchasing tax on part of passenger vehicles
On May 31, 2022, the Ministry of Finance, the State Administration of Taxation issued the “Announcement on the reduction of
the purchasing tax on part of passenger vehicles”. The government will cut the tax for cars priced at no more than 300,000 yuan and
with 2.0-liter. The tax cut will be applicable for purchases from June 1, 2022 through the end of the year.
From June to November 10, 2022, the policy reduced vehicle purchase tax for eligible passenger vehicles by a total of RMB 39.75
billion. Data from the unified invoice for sales of motor vehicles showed that from June to October 2022, approximately 6.523 million
passenger vehicles of 2.0-liter displacement and below were sold, representing a year-on-year growth of 20.6% compared with the
January-May period before the implementation of the policy, which had an obvious policy effect and effectively promoted automobile
consumption, effectively driving the sales of the Company’s related products to climb.
(2) Announcement on the continuation of the NEV purchase tax exemption policy
On September 18, 2022, the Ministry of Finance, the State Administration of Taxation, the Ministry of Industry and Information
Technology in order to support the development of the new energy automobile industry and promote automobile consumption, jointly
issued the Announcement on The Continuation of The New Energy Vehicle Purchase Tax Exemption Policy. The purchase date of new
energy vehicles in the period of January 1, 2023 to December 31, 2023, vehicle purchase tax can be exempted. New energy vehicles
exempt from vehicle purchase tax shall be managed through the Catalogue of New energy Vehicle Models exempt from Vehicle
Purchase Tax issued by the Ministry of Industry and Information Technology and the State Administration of Taxation.
Extending the vehicle purchase tax exemption policy for new-energy vehicles can increase additional 100 billion yuan expected
to be exempted. According to the data of China Association of Automobile Manufacturers, in 2022, the production and sales of new
energy vehicles completed 7.058 million and 6.887 million, respectively, with year-on-year growth of 96.9% and 93.4%. The market
share reached 25.6%, 12.1 percentage points higher than the previous year. The policy will further promote the consumption of new
energy vehicles, conducive to the company’s new energy product market sales.
4. Major laws and regulations
(1) Market access
With the development of Chinese automobile industry, the national management system of automobile product certification is also
in continuous improvement. Under the background of a new round of scientific and technological revolution and breakthrough, the
development of intelligent connected vehicles has risen to a national strategic height. At the same time, the automobile authorities are
constantly studying and promoting the access system of intelligent connected vehicles. In November 2022, the Ministry of Industry
and Information Technology and the Ministry of Public Security publicly solicited the Notice on Pilot Work of Access and road use of
Intelligent Connected Vehicles (Draft for Comments), proposing to guide enterprises to strengthen capacity building through pilot work.
Changan is actively participating in the formulation and pilot research of the access system of intelligent connected vehicles by the
Ministry of Industry and Information Technology and other automobile authorities. In September 2022, Changan has established an
intelligent connected vehicle access promotion team to push enterprises to achieve access conditions.
(2) Standards
Changan’s various models are in strict accordance with the national regulations and standards for development and manufacturing.
10
Chongqing Changan Automobile Company Limited 2022 Annual Report
Changan’s products are in line with the regulations and standards. As for the new standards that have been implemented, Changan has
completed the product upgrade and switch according to the time requirements, among which the standards for 2022 are as follow.
(A) GB 17675-2021 “Basic Requirements for Automotive Steering System” was released in February 2021, and for new type
approved vehicles, it will be implemented on January 1, 2022. For models with type approval, it will be implemented on January 1,
2023. This standard defines the term definition, technical requirements and test methods of automobile steering system, and adds that
the electrical control of steering system should meet the requirements of electromagnetic compatibility, functional safety, failure alarm
and so on.
(B) GB 39732-2020 "Automobile Event Data Recording System" was released in December 2020. This standard stipulates that
the automobile event data recording system records the motion state of the vehicle for the purpose of cause analysis and liability
determination after an accident. As of January 1, 2022, the newly applied type approval vehicles meet the requirements of this standard
except for B-class elements and Article 4.4. New type approval applications from 1 January 2024 should meet all requirements.
(C) GB/T 31498-2021 “Post-Crash Safety Requirements for Electric Vehicles” was released in August 2021 and implemented as
of March 1, 2022. This standard sets out special safety requirements for electric vehicles after frontal, side and rear crashes.
(D) GB 19578-2021 “The Fuel Consumption Limits for Passenger Vehicles” were issued in February 2021 and applied to type
approved models from 1 January 2023. The standard mainly specifies the fuel consumption limit requirements based on the
reconditioning mass of passenger vehicles under WLTC cycle conditions.
(E) GB 9656-2021 “Technical Specification for Safety of Glass for Motor Vehicles” was issued in April 2021. From January 1,
2023, the glass of new type approved vehicles shall meet the requirements of safety of visual field, safety of strength, safety of
destruction and so on.
(F) GB 16897-2022 “Brake hose structure, performance requirements and test methods” was released in August 2022. This
standard mainly added the hydraulic brake hose fast tensile strength, pneumatic brake hose flexure fatigue requirements. From January
1, 2023, the new application type approval of the vehicle will be implemente. It will be implemented on July 1, 2023 for models with
type approval.
(G) GB 15084-2022 “Performance and Installation Requirements for Indirect Vision Devices for Motor Vehicles” was released in
December 2022. The standard mainly adds the requirements for the use of electronic rearview mirrors, rimless internal view mirrors
and other related requirements. The standard will be implemented on July 1, 2023 for the newly applied type approval models.
II. Analysis of Core Businesses in 2022
As an automobile manufacturer, Changan Automobile’s businesses cover the R&D, manufacturing, and sales of vehicles
(including passenger vehicles and commercial vehicles), as well as the R&D and production of engines. At the same time, we
proactively develop new businesses such as mobility, car services, new marketing and sales, and battery swapping, and steps up efforts
in exploring finance, used cars and other fields to build a comprehensive industrial ecology and become an intelligent, and low-carbon
mobility technology company.
Changan always adheres to the mission of “Leading Auto Culture for a Better Life”, to the concept of "energy saving,
environmental protection, scientific and technological intelligence". At the same time, Changan vigorously develops new energy and
intelligent vehicles, is committed to leading automobile civilization with scientific and technological innovation, and strives to provide
customers with high-quality products and services. The company now owns brands including Changan Automobile, Oshan Automobile,
Kaicheng Automobile, Deepal, Avatr, among which Changan Deepal and Avatr are the new energy brands released by Changan
Automobile in recent years. Changan Deepal is positioned as a high-tech digital all-electric brand and Avatr is positioned as an
emotional intelligent electric vehicle brand. In addition, Changan also produces and sells joint-venture models through Sino-foreign
joint ventures Changan Ford and Changan Mazda.
Changan has launched a series of iconic models including CS series, EADO series, UNI series, Oshan series and Shenqi series.
At the same time, Changan has created Deepal SL03, Avatr 11, Lumin, Benben E-star and other new energy models. Joint venture has
a new generation of Mondeo, Explorer, Aviator, Aviator, Axela, CX-5, CX-30 and other well-received products. Many models of the
company are welcomed by consumers.
Changan adopts the business model of “equal emphasis on wholly-owned and joint venture brands”, and carries out entity
operation of its own auto brand business, such as Changan Automobile, Changan Deepal, Avatr, Oshan Automobile, Kaicheng
Automobile, etc., and firmly builds its own classic brand. We will conduct investment control over joint ventures such as Changan Ford
and Changan Mazda, and continue to deepen mutual trust and cooperation with partners.
1. The Company’s business development in 2022
(1) Effectively respond to multiple difficult challenges, and the growth rate of the main board block is faster
than that of the industry.
Since 2022, the company has risen to the challenge, taken the initiative, adhered to the "rush and pull", fought for resources and
technology substitution through multiple channels, and made every effort to "ensure supply, production, and delivery". The company's
sales scale continued to improve, with sales of 2.346 million units in 2022, a new high in the past five years, and sales increased by
2.0% year-on-year, achieving a three-year increase in the company's overall sales year-on-year! Changan’s sales of Chinese brand
vehicles reached 1.875 million units, a new high, increased by 6.8% year-on-year. The sales scale of self-owned new energy brand
vehicles has jumped significantly, with annual sales exceeding 270,000 units, a year-on-year growth rate significantly better than that
11
Chongqing Changan Automobile Company Limited 2022 Annual Report
of the industry. Overseas export sales reached a new breakthrough, with a total export volume of 170,000 self-owned brands, setting a
new record for export sales.
The sales volume of key products increased steadily, which strongly supported the company's sales base. According to terminal
retail data, the CS75 series has retailed nearly 220,000 units throughout the year, and the sales of the second-generation CS75 PLUS
continue to rank in the forefront of Chinese brand compact SUVs. The annual sales volume of the EADO series and CS55 series
reached 150,000 units and 130,000 units respectively, of which the sales volume of the EADO PLUS ranked third in the Chinese brand
compact car; UNI series sales exceeded 180,000 units, of which UNI-K sales exceeded 5,000 units in a single month; Oshan X5
achieved annual sales of nearly 90,000 units, achieving monthly sales of 10,000 units.
(2) The strategic path has been continuously refined, and the pace of transformation has become more stable.
With the Changan’s "14th Five-Year Plan" as the traction, accelerate the pace of strategic transformation, implement version 5.0
of the innovation and entrepreneurship plan and version 6.0 of the iterative innovation and entrepreneurship plan, continuously
strengthen the management of the whole process and all elements of the strategy, promote the basic achievement of planning goals,
and make new progress in the "Beidou Tianshu" and "Shangri-La" plans.
Accelerate the promotion of intelligent strategy, and continue to strengthen brand recognition. Released the intelligent brand
"Zhuge Intelligence", opened a new track for new automobiles, and unveiled the first prototype car CD701 equipped with the new
digital intelligent architecture SDA, making every effort to seize the commanding heights of the intelligent industry. Accelerate the
implementation of major projects, create a new batch of scientific and technological innovation subjects, realize the landing of long-
term intelligence and other projects, and complete the establishment of Changan Technology Company. Focus on the field of new
energy, release a new digital pure electric brand - Deepal, start to build OX sequence, and accelerate the transformation of the whole
brand sequence to new energy; Fully promote the construction of new energy production capacity, start major projects such as Yubei
factory replacement and green intelligent upgrading construction, and promote the transformation of traditional manufacturing to green
intelligent manufacturing.
Focus on the globalization strategy and steadily expand overseas markets. Sales in overseas markets have achieved a breakthrough
against the trend, exporting nearly 250,000 vehicles throughout the year, ranking fourth in the domestic automotive industry in terms
of total exports, maintaining rapid growth for seven consecutive years; The overseas market layout is increasingly perfect, and the sales
volume in 10 countries including Saudi Arabia ranks in the forefront of Chinese brands.
New progress has been made in the construction of the industrial ecosystem, and comprehensive and in-depth cooperation with
excellent partners in various fields in the fields of new energy and intelligence has been created to create "new automobiles" and win-
win "new ecology". The first batch production cars of the Avatr 11 and 011, the emotional intelligent electric coupe SUVs jointly built
with Huawei and CATL, have officially rolled off the production line at the end of 2022; Establish joint innovation centers with
Tsingshan Industry and South China Optoelectronics in the fields of new energy and intelligence, and strive to tackle key technologies
and jointly cope with future challenges; It has signed strategic cooperation agreements with many domestic and foreign leading
enterprises such as NXP and Desay SV, as well as universities, and the circle of cooperation has expanded from traditional enterprises
to technology enterprises.
(3) Adhere to the two-wheel drive of reform and innovation, and the key capabilities are continuously
enhanced.
We have continued to cultivate the field of new energy and intelligence, and have mastered more than 600 intelligent low-carbon
core technologies. Accelerate the breakthrough of the core technology of "three electricity", and make great progress in the core field
of new energy and power technology. Master the battery CTP integration technology, and realize mass production and installation of
all-in-one super-collector electric drive and seven-in-one "smart core"; Released three new energy power technologies for the green
future: "Changan Hydrogen Fuel Cell System, Changan Smart Electric iDD, and Changan Force Electric". Focusing on the intelligent
field of "core device graph core cloud network sky", the forward-looking technology research has achieved stage results, achieved a
breakthrough in the bottleneck of the "integrated driving" architecture of the new platform of autonomous driving solution 2.0 (ADS2.0),
released the first APA6.0 remote intelligent parking industry, and released 20 key technical achievements of the SDA-S platform, such
as experience-driven computer (EDC) hardware pluggable and intelligent control digital base service-oriented. Build CHN, EPA1,
MPA2 and other platforms, the development of intelligent platform architecture is carried out in an orderly manner, the system
construction is constantly improved, and the image of “Tech Changan” is deeply rooted in the hearts of the people.
The performance of new products on the market is remarkable, and the sales volume has increased significantly, forming a new
momentum for growth. Successfully launched 5 electric electrification products, including Lumin, Deepal SL03, Avatr 11, UNI-K
Smart Electric iDD, Oshan Z6 Smart Electric iDD, and launched new fuel vehicle products such as UNI-V, second-generation
CS75PLUS, and Changan Landtop. According to terminal retail data, UNI-V has nearly 100,000 units, and its monthly sales once
ranked second in the Chinese brand compact car market; Lumin delivered more than 10,000 vehicles in a single month, with a retail of
more than 60,000 units, and its monthly sales once ranked second in the Chinese brand new energy mini car market; The Deepal SL03
quickly seized the mainstream passenger car market, with a retail of 25,000 units, ranking among the top five in the new energy mid-
size car market.
Marketing innovation has been further advanced, and operational efficiency has been significantly improved. Taking Lumin and
Deepal SL03 as pilots, build a "three-center" channel system and basically open up a new marketing operation model of "scene
decoupling, digital connection, and diversified combination". By reconstructing traffic, scenarios, services and data structures, the
proportion of self-operated + direct-operated leads is increased, the cost of individual leads is further reduced, the conversion rate of
leads to orders is improved, and a traffic operation system with "better cost and higher efficiency" is initially constructed.
12
Chongqing Changan Automobile Company Limited 2022 Annual Report
The reform of the organizational system has been accelerated, and the ability to guarantee strategic transformation has been
continuously consolidated. Focusing on the strategy of "New Automobile, New Ecology", the New Automobile Development
Department was established to build organizational capabilities to support the realization of new intelligent and connected automobile
products. Optimize the electrification organization of the product development department to drive the electrification transformation.
Promote the tenure system and contractual management, further enhance the vitality of cadres and stimulate the motivation of officers.
Accelerate the cultivation of innovation capabilities, introduce more than 1,000 professionals in the fields of new energy and
intelligence, and help enterprises transform and develop.
2. Blockbuster products to be launched in 2022
Avatr 11, the first product of the Avatr brand, is based on
the CHN pure electric platform jointly built by Changan,
Huawei and CATL, positioning high-end emotional intelligent
electric SEV (mid-size SUV), with international high-end
original design, emotional interactive intelligent cockpit, three
lidar high-end intelligent driving, 750V high-voltage fast
charging, 3.98s zero hundred acceleration as product highlights,
for the people who are pleasant, love themselves and love their
families, to create intelligent electric SEV.
Avatr 11
Deepal SL03, based on the EPA1 all-electric digital
platform, is compatible with three energy replenishment
methods: pure electric, range extender and hydrogen fuel cells.
Equipped with 19-inch sports wheels, frameless doors, LOW-E
panoramic canopy, power liftgate, 14.6-inch sunflower screen,
AR-HUD and other technological equipment. Using Force
electric technology, the maximum power can reach 190kW, and
the fastest acceleration is 5.9s per 100 km/h. It has an integrated
adaptive IACC, and all models are equipped with intelligent
driving assistance functions such as lane change assist,
intelligent panoramic image, and AEB automatic emergency
braking as standard. The smart cockpit is equipped with the
industry-leading Qualcomm 8155 chip, which supports
Bluetooth/NFC senseless cabin entry, 3D holographic face login
Deepal SL03 and other functions, reconstructing the travel imagination with
digital technology.
UNI-V, the first sedan in the UNI series, brings the elegance
and dynamism of a five-door hatchback coupe to the A+ class.
The new exclusive coupe chassis has greatly strengthened the
structure, and reconstructs the suspension hard points based on
genetic algorithms to upgrade the driving texture and expand the
performance matching space. The exclusively tuned Blue Core
power brings users a surging and delicate power experience. The
high-rigidity and lightweight "ark cage" body structure
improves safety standards in an all-round way.
UNI-V
13
Chongqing Changan Automobile Company Limited 2022 Annual Report
UNI-K iDD is the first PHEV product under the high-end
series UNI of Changan Passenger Vehicle, and the first product
in Changan equipped with the iDD intelligent Dual Drive
system. UNI-K iDD continues the design concept of new
technology intelligent aesthetics to present futuristic quality
aesthetics; Based on the global high-efficiency electrical
platform, it realizes the excellent, economical, safe and dynamic
performance of “full speed domain, full field domain, full
temperature domain, and full time domain”. The future
technology intelligent cockpit will make the car no longer just a
simple travel tool, but also an extension of human nature and the
externalization of emotions, and a smart partner with wisdom,
intelligence, as well as emotional judgment and aesthetic
UNI-K iDD experience.
The second-generation CS75PLUS is upgraded from the
four dimensions of power, design, intelligence and safety, and
brings users a leapfrog driving experience with six standard
features. Whaletail wave grille and through-the-top headlights
create a futuristic design; Dual 12.3-inch large screens and dual-
color-block yacht-style electronic gear shift handles create an
interstellar intelligent cockpit with a sense of technology; Blue
Core's new generation engine + Aisin 8AT, powerful and smooth
gear changes, bringing a better driving experience; 540° high-
definition panoramic image, bringing a travel experience full of
science and technology.
2nd-Generation CS75 PLUS
The 2022 EADO PLUS, equipped with Blue Core's new
generation NE1.4T high-efficiency power combination,
achieves the perfect balance of high power and low fuel
consumption; handsome and sporty shape, dynamic light and
shadow progressive front grille, minimalist skyline neon
through-through LED taillights, the whole vehicle posture is
coordinated and rhythmic; wrap-around cockpit, with dual
10.25-inch joint screens to show intelligent technology,
exquisite yacht-style electronic gear lever, wireless charging of
mobile phones, The all-new lncall3.0S intelligent interaction
2022 EADO PLUS system and intelligent driving assistance system make the whole
vehicle shape and quality more comprehensively evolved.
The second-generation CS55PLUS Storm Gray Limited
Edition creates a limited edition of Storm Ash car paint and cool
orange trim, with unique design aesthetics such as light and
shadow progressive grille and star ring light source; The
technologically aesthetic cockpit and intelligent power tailgate
combine technology and practicality, allowing aesthetics and
functionality to complement each other. AI voice interaction,
intelligent sound source positioning, whole vehicle voice
control, and tacit partnering; Intelligent remote control, remote
sharing of cars and call of internal and external cameras to keep
abreast of vehicle conditions. Equipped with Blue Core's new
generation NE1.5T high-efficiency power combination, the
maximum power is 138Kw, surging power feeling; 4% reduction
2nd-Generation CS55 PLUS in fuel consumption per 100 km.
14
Chongqing Changan Automobile Company Limited 2022 Annual Report
Lamore PLUS, a new generation of intelligent wide family
car. Parametric gradient grille, skyline LED light group,
surround smart light luxury cockpit, elegant new Chinese light
luxury design super comfortable; 2770mm ultra-long
wheelbase, full series of reinforced four-wheel independent
suspension, integrated zero-pressure seat;; Blue Core's new
generation NE1.5T high-pressure direct injection engine is
matched with Blue Touch's new generation 7-speed wet dual-
clutch transmission; High-strength energy-absorbing body,
Lamore PLUS high-quality manufacturing technology, high-standard
verification system, multiple protection, travel with confidence.
The 2022 CS35 PLUS, continuing the 2021 Blue Core
Edition. The dot matrix grille and front and rear echoing design
run through the lamp, and add whale tail styling elements to
show strength in calmness; All models are equipped with
Andean gray bodies and twin exhaust pipes. Asymmetrical
interior design, dual-screen connectivity integrated design. At
the same time, the horizontal layout is strengthened, and the
screen and IP decorative parts are pulled through the design left
and right and the horizontal through air vents are added to make
the internal space more reasonable and wide. 1.4T+7-speed wet
dual-clutch, of which Blue Core Power NE 1.4T direct injection
2022 CS35 PLUS engine has a maximum power of 118kW and a peak torque of
260Nm.
The 2023 CS85 COUPE features a dome streamer-style
back design, star diamond headlights, two-tone wheels, and
black carbon fiber mirrors, highlighting its sporty charm. It
adopts a classic combination of red and black. With a wrap-
around starry cockpit, panoramic starry sky skylight and
microfiber leather seats, it creates a new level of comfortable
driving. With Blue Core's new generation NE1.5T high-pressure
direct injection engine + 7DCT power combination, Bosch
electronic stable braking system, all series of electronic gear
shifting, idle start-stop technology. Tencent TAI automotive
intelligent system, IACC integrated adaptive cruise system,
APA4.0 valet parking system, 540° high-definition panoramic
image system, PAB warning auxiliary braking system.
2023 CS85 COUPE
Oshan Z6, positioned as a new aesthetic smart flagship
SUV, as an Oshan brand leapfrog strategic model, adopts
prismatic design aesthetics, capable lines outline dynamic body
posture, full-scene intelligent exterior voice function, equipped
with OnStyle 5.1 intelligent happy cockpit, matching Blue
Core's new generation NE1.5T + Blue Core 7-speed wet dual-
clutch transmission high-efficiency powertrain, create four
major high-energy product strengths: high-energy styling, high-
energy intelligence, high-energy power, and high-energy quality
Oshan Z6
15
Chongqing Changan Automobile Company Limited 2022 Annual Report
Oshan Z6 iDD perfectly integrates Blue Core 1.5T hybrid
turbocharged engine, 28.4kWh ultra-large capacity battery, two-
in-one high-efficiency motor and 6-speed transmission system,
with the blessing of AI intelligent control system and intelligent
safety system of temperature balance, bringing high
performance and low energy consumption to the product. The
product has the two advantages of smart electricity economy and
smart electric safety, 150KM ultra-long pure electric battery life,
1200KM ultra-long comprehensive battery life, IP68 industry's
highest level of battery protection, 6 levels of dustproof, 8 levels
of waterproof, standard DC fast charging, AC fast charging dual
charging ports, achieving a win-win situation of power and
OshanZ6 iDD efficiency.
Oshan X5 PLUS, continuing the sense of sport of the light
shaping design language, adopts a 30-inch triple screen design,
three screens are distributed in the center of the driver's field of
vision, which is convenient for the driver to view and operate,
with a new electronic gear lever, integrated sports seats, etc…
and Blue Core's new generation NE1.5T engine matches Blue
Core’s 7-speed wet dual-clutch transmission, and is equipped
with OnStyle 5.1 intelligent and happy cockpit, sports wisdom
is excellent, and create a new sports smart SUV.
Oshan X5 PLUS
Oshan X7 PLUS 7-seater version, based on the excellent
quality of Oshan X7 PLUS, once again changes the cabin space,
focuses on multi-person travel scenarios, and creates the
"100,000-level home enjoyment boutique 7-seater SUV
preferred" label with scenario-based marketing. Changeable
large space SUV, 7-seat + 280L trunk space or5-seat + 780L
trunk space, free switching, 2786mm class-leading wheelbase,
second-row seat backrest adjustable from 15° to 35°, three-row
seat cushion height 270mm, seat backrest angle of 26°, more
practical. Meet the full-scenario car experience of users' families
traveling with multiple people.
Oshan X7 PLUS 7-seater version
Changan Landtop, pickup version of Blue Core power, ZF
8-speed hand self integrated transmission, BorgWarner all-
wheel-drive system; Highly recognizable grille, LED high-
brightness headlight cluster, through-type LED front lights, two-
tone wheels; Smart dual screen, wide luxury seating space, rich
storage space; Enjoy first-class seats, intelligent health air
conditioning control system, wrap-around 4 airbags, multi-
function steering wheel, yacht-class grip gear shifting, keyless
entry, and one-button start; Changan’s latest generation of
vehicle system pickup version, 540° high-definition panoramic
image, master chassis, ESC body stability system, lane departure
warning, cruise control system, three-mode electronic power
Changan Landtop steering.
16
Chongqing Changan Automobile Company Limited 2022 Annual Report
3. Key models planned for 2023
In 2023, the company will launch a number of new and modified products, including more than 10 new energy products,
accelerating the pace of new energy transformation.
(1) Renew fuel vehicle products, enhance competitiveness and consolidate market position. In 2023, Lamore, the third-
generation CS55PLUS and the third-generation CS75PLUS, a total of 3 new products, and a total of 6 modified products such as UNI-
K, UNI-T, UNI-V, will be launched one after another, which will further enhance product competitiveness and consolidate the market
position of fuel vehicles through interior and exterior decoration and configuration upgrades. Lamore is positioned as a compact family
car, born in the Changan Ark architecture, with high-end simple appearance design, wrap-around technology cockpit and a new
generation of Blue Core power as product highlights, to meet the needs of family users in pursuit of economical, comfortable and safe
travel.
(2) Accelerate the electrification transformation and create the "Changan Smart Electric iDD Intelligent Electric Hybrid"
cognition. In the first half of 2023, the new products UNI-V Smart Electric iDD, the third-generation CS75PLUS Smart Electric iDD
and the facelifted products UNI-K Smart Electric iDD and Oshan Z6 Smart Electric iDD will be launched soon; In the second half of
the year, a number of new Smart Electric iDD products such as the new compact sedan and the new compact SUV were launched one
after another, using the new Smart Electric iDD technology platform to meet the needs of strong power and low energy consumption,
improve the driving experience of users, and further focus on building the "Changan Smart Electric iDD Intelligent Electric Hybrid"
cognition to promote the realization of electrification transformation.
(3) Improve the intelligent pure electric genealogy and establish a new energy market position. In 2023, C236, Deepal S7
and Avatr E12 products will be launched one after another, and the lineage of smart pure electric products will be further improved,
helping to form a new energy market position and brand user recognition. C236 is positioned as a high-end comfortable mid-size sedan,
with smooth and forward-looking styling design, high-tech cockpit and comfortable driving experience as product highlights to meet
the needs of a new generation of young users. Positioning the Deepal S7 as a pure electric smart SUV, on the basis of the EPA1 platform,
Force Range Extension and Super Three Electric, it meets the core requirements of users for new energy intelligent SUVs through a
new intelligent experience, and creates a benchmark for 200,000 pure electric smart SUVs. Avatr E12 is positioned as an emotional
intelligent electric coupe, with future-looking styling design, immersive smart space, and all-scenario intelligent driving as product
highlights, to meet the needs of high-end intelligent electric vehicle users in all scenarios.
Note: The features and configurations mentioned in “II. Analysis of Core Business in 2022” in Chapter 3 are not a true representation
of the features and configurations of actual vehicles. the actual configuration and functions of the model shall be subject to the official
product configuration table..
Vehicle manufacturing production and operation during the reporting period
√ Applicable □ Not applicable
Production and sales of vehicles
Production Volume (Unit) Sales Volume (Unit)
YoY YoY
2022 2021 increase/decrease 2022 2021 increase/decrease
(%) (%)
By Region
Domestic 2,049,250 2,130,925 -3.83% 2,096,982 2,141,390 -2.07%
Overseas 249,169 159,140 56.57% 249,169 159,140 56.57%
Note: 1. The above sales and production volume includes vehicles produced and sold by the Company and its JVs and associates.
2. Production capacity: In 2022, the design capacity is 2.29 million vehicles. The capacity utilization rate reached 71.9%. In the
past three years, the backward production capacity for 0.41 million vehicles and 0.45 million engines have been shut down. The capacity
for 0.25 million connected and 0.1 million batteries have been built. The capacity structure is gradually adjusted to new energy.
Cause description of over 30% year-on-year increase/decrease
√ Applicable □ Not applicable
The production and sales volume of overseas regions increased by more than 30% mainly due to the insufficient supply of overseas
markets, and in recent years, Chinese brands represented by Changan Automobile have gradually established competitive advantages
in the field of new energy and intelligence, driving the growth of overseas exports.
Construction of parts supporting system
Changan Automobile's main models, such as the CS series, UNI series, and navy brand, are equipped with parts that combine in-
house production and external procurement. Key components, such as Blue Core's new generation of high-pressure direct injection
engine, are independently developed by the company, which can effectively control costs and enhance the quality control of key parts
through self-production; In cooperation with international and domestic first-class parts and components enterprises, such as Huawei
autonomous driving, intelligent cockpit, CATL new energy battery, Aisin 8AT manual automatic transmission, Chongqing Tsingshan
Industrial 7-speed wet dual-clutch transmission, Wutong TINNOVE intelligent system, etc., through external procurement, integrate
17
Chongqing Changan Automobile Company Limited 2022 Annual Report
industry resources, select suitable suppliers, accelerate the transformation into intelligent low-carbon mobility technology companies,
make products safer, smarter and greener, maximize corporate interests, and provide support for the continuous improvement of the
company's performance.
It has organized a total of 516 suppliers and more than 3,800 people to study a series of QCA (Changan Automobile Supplier
Quality Capability Assessment System) courses, and completed 84 QCA certification audits in 2022. The company has long
implemented the quality capability evaluation strategy, implemented hierarchical management, and continuously promoted the
improvement of supplier quality management capabilities.
The production and operation of auto parts during the reporting period
□Applicable √ Not applicable
The company conducts auto finance business
□Applicable √ Not applicable
The company conducts NEV-related business
√ Applicable □ Not applicable
Production and operation of new energy vehicles and parts
Production Capacity
By Category Production Volume (unit) Sales Volume (unit)
(unit)
New Energy Passenger Vehicle 1,090,000 249,646 252,584
New Energy Commercial Vehicle 170,000 19,163 18,656
Note: The revenue from the sales of new energy vehicles within the scope of the company's consolidated financial statements is RMB
9,028 million in the reporting period.
III. Core Competence Analysis
1. Scientific and technological research capability. The company adheres to innovation-led development and pushes the
implementation of science technological development plan at full speed. Changan strengthens investment in scientific and
technological innovation, guides by user needs, adheres to the “two-wheel drive” of scientific and technological innovation and
ecological construction, achieves a number of technological industry leading, first-stage mass production, and makes new
breakthroughs in product development and technological innovation. In the intelligent field, intelligent driving, intelligent network
connection and intelligent interaction technologies are supported to realize intelligent network operation and build an intelligent vehicle
platform in stages. APA6.0 remote intelligent parking and AEB automatic Emergency braking equipped with UNI-V won the gold
medal of the 2022 World Intelligent Driving Challenge and the Special prize of the Smart Connected Car Challenge. In the field of new
energy technology, in the aspect of battery, completed the prototype development of semi-solid cell, independently mastered the CTP
integration technology. In terms of electric drive, it broke through core technologies such as silicon carbide (SiC) control, realized the
"7-in-1" super collector drive industry debut, and won the "China Heart" 2022 top 10 new energy vehicle power system. In terms of
electric control, the seven-in-one "wisdom core" is independently developed and mass-produced to Deepal SL03. As of December
2022, the company has 8,330 patents at home and abroad, including 2,148 invention patents.
2. Product definition capability. The company adheres to customer experience as the orientation, focuses on user needs, and
constantly innovates product definition mode to further improve the matching degree between products and user needs. Continuously
updating and iterating product market equations, strengthening differentiated functions such as personalized configuration and vehicle
software for fuel and electrification products to enhance product competitiveness. For new automobile products, review the user
operation and resource matching links, and promote the product to the full life cycle user experience. The company's key products in
2022 perform well. CS series, UNI series, Auchan Z6 and other key products are favored by the market. Also, Avatr 11 enters the
critical delivery period, and Deepal SL03 quickly grabs the mainstream passenger car market. The company will continue to focus on
the user experience, focus on the core scene, and quickly build a differentiated competitive advantage of popular products. At the same
time, the company will improve Avatr, Deepal and new automobile product matrix, promote the full renewal of existing brand
electrification products, and strive to provide users with product experience beyond expectations.
3. Brand upward capability. The company insists on strengthening brand value management, further consolidating the
"intelligent" and "electric" brand label, innovating brand promotion, improving brand customer satisfaction, and helping the brand to
move up. In terms of brand value management, build a new Changan brand structure, plan Smart Electric iDD product sequence,
expand the electrification market, start the construction of new mainstream electric OX sequence, and achieve a breakthrough in
brand development. Released new digital pure electric brand Shenlan and "Zhuge smart", "Force Electric", " Smart Electric iDD" and
"Partner +" four brand labels, innovation to build brand equity. In terms of brand promotion, Changan will focus on the launch of 7
new cars such as the second-generation CS75PLUS and Rui Cheng PLUS, and create innovative cross-border cooperation series such
as Sanxingdui, Migu Music Festival, Dragon Gate King Kong and Talk Show, so as to win the exclusive title of animation of the
Three-Body Problem, a national science fiction IP, to help the brand get younger and accelerate the brand exposure and popularity. In
terms of improving brand customer satisfaction, the customer satisfaction (SSI/CSI, namely sales service satisfaction/after-sales
service satisfaction) in 2022 reached more than 99%. In addition, the company won the second place of its own brand in J.D.Power's
18
Chongqing Changan Automobile Company Limited 2022 Annual Report
2022 China Auto sales service Satisfaction ranking.
4. Intelligent manufacturing capability. The company focuses on the digital transformation of the new factory, and explores
the digitalization and digitalization of business in the whole scenario of the factory. Changan will make new progress in smart and
green manufacturing under the model of innovative manufacturing. Further promote the application of 5G technology and the
construction of industrial Internet in each manufacturing base and put 5G+AR remote maintenance and intelligent fault diagnosis,
5G+ machine vision detection and other scenes into operation, greatly improving the one-time detection accuracy and logistics
distribution efficiency. The company orderly implements the user direct connection manufacturing mode (C2M), and fully realize the
mass customization mode of new energy products, to meet the personalized needs of users. Also, centering on the five dimensions of
"technological transformation, process optimization, quality improvement, production scheduling optimization, and lean start-stop", a
number of carbon reduction measures have been formulated and implemented to further reduce the carbon emission intensity of
single and single vehicles. In the 2022 China New Car Quality Study (IQS) released by J.D.Power (Jundi), Changan Automobile won
the first prize in “Quality of new cars of China’s homegrown brands”, the Getaway PLUS won the second prize in "medium base
sedan", and the CS35PLUS won the third prize in "Compact SUV".
5. Cultural leadership capability. The company insists on improving the cultural system and iteratively updating the leading
cultural concept (fourth edition) to further gather strategic consensus and stimulate the spirit of struggle. The company actively carries
out a series of activities for the 160th anniversary of Changan, telling good Changan stories, inheriting Changan culture, drawing great
power of innovation and entrepreneurship from the history of Changan, and continuously creating an atmosphere of "leading
culture Wolf Changan". The company further implements the "double concern", carries out the "I do practical things for the people"
on a regular basis, and solves the problem of employees' "urgent difficulties and worries". At the same time, the company firmly
practices social responsibility, actively responds to the call of the CPC Central Committee, deeply implements the rural revitalization
strategy, carries out cross-border Youyang Tea oil help action, and forms the "Changan Plan" for rural revitalization. Changan
immediately rushed to the aid of Chongqing wildfire, donating 10 million yuan. The company actively supported Sichuan earthquake
relief and donated 10 Kaicheng F70 cars to contribute to Changan.
6. Mechanism and efficiency capacity. The company insists on improving the organization mechanism, replenishing the talent
team and optimizing the incentive scheme to inject new vitality into the transformation and development. We have established a “smile
curve” management logic, formed a matrix and flat management model, and built organizational capabilities to support the realization
of new automotive products; continued to introduce cutting-edge talents in the fields of intelligence, software and modeling externally,
and promoted the transformation of talents in the fields of intelligent network, “three-electric” and new platform internally. The
company also promotes the tenure system and contract management to further enhance the vitality of cadres and stimulate the
motivation of managing officers; improves the incentive “team leader” mechanism to help tackle important and difficult technical
projects; implements the equity incentive plan to further stimulate the vitality and motivation of employees and promote the
achievement of strategic tasks; carries out the follow-up mechanism of product projects in depth, and the core personnel of the whole
value chain of the project are closely bound to the successful implementation of the product; the construction of a comprehensive honor
system to stimulate a greater sense of mission, achievement and striving with spiritual incentives; the deferred bonus incentive policy
has been increased again, and the enthusiasm of the staff is greatly strengthened.
IV. Analysis of Main Business
1. Overview
Compared with 2021, the company's operating income was RMB 121.253 billion, an increase of 15.32%. And it is caused by the
company's sales growth. The net operating cash flow was 5.666 billion yuan, a decrease of 75.33% over last year. The company's net
profit attributable to the shareholders of the listed company during the reporting period was 7.798 billion yuan, and it was growth by
119.52% compared to 2021. The positive net profit mainly due to the increase in sales volume of the company's own sector, and the
improvement of operating quality. The substantial increase in profit year-on-year. In addition, the overall profitability of the JVs and
associates sector has decreased, and please see "IX. Analysis of Major Shareholding and Joint Stock Companies “under this chapter.
Please refer to “II Analysis of Main Business” under this chapter.
2. Income and cost
(1) Revenue
2022 2021
YoY
Proportion of Proportion of
increase/decrease
Amount (RMB) operating revenue Amount (RMB) operating revenue
(%)
（%） (%)
Operating revenue 121,252,864,085.40 100% 105,141,877,237.05 100% 15.32%
By industry
Automotive business 121,252,864,085.40 100% 105,141,877,237.05 100% 15.32%
By product
Vehicles 114,066,406,439.25 94.07% 99,238,618,010.70 94.39% 14.94%
19
Chongqing Changan Automobile Company Limited 2022 Annual Report
Services and others 7,186,457,646.15 5.93% 5,903,259,226.35 5.61% 21.74%
By region
China 107,841,417,091.18 88.94% 97,338,405,886.42 92.58% 10.79%
Overseas 13,411,446,994.22 11.06% 7,803,471,350.63 7.42% 71.87%
By sales model
Distribution 103,713,980,228.17 85.53% 96,492,889,603.69 91.78% 7.48%
Direct selling 10,352,426,211.08 8.54% 2,745,728,407.01 2.61% 277.04%
Others 7,186,457,646.15 5.93% 5,903,259,226.35 5.61% 21.74%
Note: The Company has 2,164 dealers at the end of the reporting period.
(2) The business, products, regions and sales model accounting for over 10% of the Company’s operating
revenue or operating profit
√ Applicable □ Not applicable
YoY YoY YoY
Operating Revenue Operating Cost Gross increase/decrease of increase/decrease increase/decrease
(RMB) (RMB) margin operating income of operating cost of gross margin
(%) (%) (%)
By industry
Automotive
121,252,864,085.40 96,409,610,873.76 20.49% 15.32% 10.00% 3.85%
business
By product
Vehicles 114,066,406,439.25 91,604,889,306.21 19.69% 14.94% 9.18% 4.24%
By region
China 107,841,417,091.18 83,836,238,670.05 22.26% 10.79% 4.66% 4.55%
By sales model
Distribution 103,713,980,228.17 81,908,748,404.43 21.02% 7.48% 0.66% 5.35%
Where the statistical caliber of the main business data of the Company is adjusted, the data is subject to the main business data after
adjustment according to the caliber of the end of the report period in the latest year.
□ Applicable √ Not applicable
(3) Whether revenue from physical sales is higher than service revenue
√ Yes □ No
By business Item 2022 2021 YoY increase/decrease (%)
Sales volume (unit) 2,346,151 2,300,530 1.98%
Production volume (unit) 2,298,419 2,290,065 0.36%
Automotive business
Inventory volume (unit) 54,900 64,557 -14.96%
Market share（%） 8.73% 8.74% -0.01%
Note: The above sales and production volume includes vehicles produced and sold by the Company and its JVs and associates. The
analysis over market share is based on the data from China Automobile Industry Association.
Cause description of over 30% year-on-year increase/decrease
□ Applicable √ Not applicable
(4) Performance of major sales and purchase contracts as of the end of the reporting period
□ Applicable √ Not applicable
(5) Cost
By business Item 2022 2021
20
Chongqing Changan Automobile Company Limited 2022 Annual Report
Proportion Proportion
YoY
of of
Amount (RMB) Amount (RMB) increase/decrease
operational operational
(%)
cost (%) cost (%)
Products 91,604,889,306.21 95.02% 83,904,632,708.41 95.73% 9.18%
Automotive
business Services and
4,804,721,567.55 4.98% 3,744,072,825.73 4.27% 28.33%
others
Total 96,409,610,873.76 100.00% 87,648,705,534.14 100.00% 10.00%
(6) Whether the scope of consolidation was changed during the reporting period
√ Applicable □ Not applicable
During the reporting period, Avatr completed a capital increase and equity expansion to introduce new investors. After this capital
increase, the company lost control of Avatr and no longer included it in the company's consolidated financial statements. As of the end
of the reporting period, the company holds 40.99% equity in Avatr.
(7) Major changes or adjustment in business, product or service of the Company in the reporting period
□ Applicable √ Not applicable
(8) Major customers and suppliers
Major customers
Total sales revenue from top five customer (RMB) 11,027,129,512.08
Proportion of total sales revenue from top 5 customers in annual total sales
9.10%
revenue (%)
Proportion of total sales revenue from affiliated parties in the top five
4.76%
customers in annual total sales revenue (%)
The top 5 customers
Proportion of annual total sales
No. Customer Revenue (RMB)
revenue (%)
1 Customer One 3,891,334,275.79 3.21%
2 Customer Two 2,609,084,124.78 2.15%
3 Customer Three 1,684,301,990.87 1.39%
4 Customer Four 1,476,308,931.64 1.22%
5 Customer Five 1,366,100,189.00 1.13%
Total 11,027,129,512.08 9.10%
Other information regarding major customers
√ Applicable □ Not applicable
One of the above customers is a joint venture of the Company, and two customer is controlled by the same ultimate holding
company. Please refer to item 5 of Note 10 "Related Party Relationships and Transactions" in Chapter 10.
Major suppliers
Total purchase amount from top five suppliers (RMB) 17,209,662,321.50
Proportion of total purchase amount from top five suppliers in annual total
17.85%
purchase amount (%)
Proportion of total purchase amount from affiliated parties of the top five
14.61%
suppliers in total annual total purchase amount (%)
Top 5 suppliers
Proportion of annual total purchase
No. Supplier Purchase amount (RMB)
amount (%)
1 Supplier One 5,929,105,477.16 6.15%
21
Chongqing Changan Automobile Company Limited 2022 Annual Report
2 Supplier Two 4,693,770,740.03 4.87%
3 Supplier Three 3,463,898,449.23 3.59%
4 Supplier Four 1,683,131,736.33 1.75%
5 Supplier Five 1,439,755,918.75 1.49%
Total 17,209,662,321.50 17.85%
Other information regarding major suppliers
√ Applicable □ Not applicable
One of the above suppliers is a joint venture of the Company, one supplier is controlled by the same ultimate holding company,
and one supplier is a company in which the ultimate holding company participates. Please refer to item 5 of note 10 “Related Party
Relationships and Transactions” in Chapter 10.
3. Expenses
Item 2022 2021 YoY Change (%) Explanation of major changes
Selling expenses
5,138,270,162.95 4,645,654,234.59 10.60%
(RMB)
Administrative
3,532,458,198.76 3,499,654,508.49 0.94%
expenses (RMB)
Due to the year-on-year increase in
the average monthly monetary fund
Financial costs balance of the company during the
-1,017,305,743.08 -780,923,197.18 30.27%
(RMB) reporting period, the interest income
from deposits in financial
institutions increased
R&D expenses
4,315,444,864.76 3,515,029,178.76 22.77%
(RMB)
4. Research and Development Investment
√Applicable □ Not applicable
Expected impact on the
Projects Purpose Progress Goals future development of the
Company
The first product of the new Develop new smart electric Develop new products to
Advanced Comfort Car Complete the annual
series to enhance market vehicles, and launch the enhance market
Development development task
competitiveness model as planned competitiveness
Development of a new Develop new products to Develop a new generation of Develop new products to
Complete the annual
generation of plug-in enhance market plug-in hybrid models, and enhance market
development task
hybrid models competitiveness launch the model as planned competitiveness
Development of a new Changan New Energy's first Develop new smart electric Develop new products to
Complete the annual
generation of all-electric pure electric platform vehicles, and launch the enhance market
development task
digital car strategic model model as planned competitiveness
Complete the development of
Development of intelligent Create a leading hardware Complete the annual Transformation and
main functions and lock the
electric digital platform and software platform development task upgrading of new vehicles
technical status
Accelerate the
transformation to intelligent
Break through the technical Complete the development of
Development of a new- low-carbon travel
bottleneck and strengthen Complete the annual the platform to achieve
generation all-electric technology companies and
electrification and development task platform-based synergy,
intelligent vehicle platform support the development
intelligence capabilities intelligence and electrification
strategy of ' new
automobile, new ecology '.
Expand and optimize the Enrich the company's
Changan compatible
Multi-power compatible system architecture, realize product power selection,
platform architecture Complete the annual
architecture vehicle multi-power platform and improve the
supports multi-power development task
platform development common platform development efficiency and
products
development cost
22
Chongqing Changan Automobile Company Limited 2022 Annual Report
R&D staff
2022 2021 Change over the previous year (%)
Number of R&D staff (person) 7,899 7,269 8.67%
Proportion of R&D personnel 18.42% 17.13% 1.29%
Education background —— —— ——
High School diploma or below (person) 262 281 -6.76%
Bachelor’s degree (person) 5,819 5,467 6.44%
Master’s degree (person) 1,738 1,443 20.44%
Doctor’s degree (person) 80 78 2.56%
Age structure —— —— ——
Aged below 30 (person) 2,217 2,067 7.26%
Aged 30 - 40 (person) 4,682 4,421 5.90%
Aged above 40 (person) 1,000 781 28.04%
R&D Input
Change over the previous year
2022 2021
(%)
Amount of R&D Input (RMB) 5,677,807,968.36 4,826,946,503.77 17.63%
Proportion of R&D Input in
4.68% 4.59% 0.09%
Operating Revenue (%)
Amount of Capitalized R&D
1,362,363,103.60 1,311,917,325.01 3.85%
Expenditure (RMB)
Proportion of Capitalized R&D
23.99% 27.18% -3.19%
Expenditure in R&D Input (%)
Cause and effects of significant changes in composition of the R&D staff
□ Applicable √ Not applicable
Cause for significant changes in the proportion of total R&D investment in operating revenue from the previous year
□ Applicable √ Not applicable
Cause and Reasonable Explanation of the major changes of the capitalization rate of R&D investment
□ Applicable √ Not applicable
5. Cash Flow
Unit: RMB
YoY Change
Item 2022 2021
(%)
Subtotal of cash inflows from operating activities 127,195,228,996.80 132,847,688,924.95 -4.25%
Subtotal of cash outflows from operating activities 121,528,882,138.28 109,875,965,714.11 10.61%
Net cash flows from operating activities 5,666,346,858.52 22,971,723,210.84 -75.33%
Subtotal of cash inflows from investing activities 2,492,217,372.08 1,450,454,543.93 71.82%
Subtotal of cash outflows from investing activities 5,446,189,241.05 2,939,679,984.95 85.26%
Net cash flows from investing activities -2,953,971,868.97 -1,489,225,441.02 -98.36%
Subtotal of cash inflows from financing activities 2,792,324,450.65 1,826,518,075.81 52.88%
Subtotal of cash outflows from financing activities 2,567,894,182.64 4,422,477,490.74 -41.94%
Net cash flows from financing activities 224,430,268.01 -2,595,959,414.93 108.65%
Net increase in cash and cash equivalents 2,973,518,212.75 18,861,948,777.36 -84.24%
Description of major influence factors of significant change of relevant data on a year-on-year basis
√ Applicable □ Not applicable
In 2022, the net cash flow generated from operating activities decreased by 17.305 billion yuan compared to the previous year.
On the one hand, due to the impact of market supply and demand, the proportion of cash paid by distributors decreased, resulting in a
decrease in cash received from selling goods and providing services. On the other hand, to support the supply chain, relatively loose
policies were adopted for supplier payments, resulting in an increase in cash paid for purchasing goods and receiving services.
The net cash flow generated from investment activities decreased by 1.465 billion yuan compared to the previous year, mainly
due to the payment of investment funds to Chongqing Changan New Energy Vehicle Technology Co., Ltd. and Avatr Technology
(Chongqing) Co., Ltd. in the current period, resulting in an increase in cash paid for investment compared to the previous year.
23
Chongqing Changan Automobile Company Limited 2022 Annual Report
The net cash flow generated from financing activities increased by 2.82 billion yuan compared to the previous year, mainly due
to the impact of restricted monetary changes, resulting in a significant increase in "other cash received related to financing activities"
and a significant decrease in "other cash paid related to financing activities" compared to the previous year.
Cause for the significant difference between net cash flows from operating activities and net profit in the reporting period
√ Applicable □ Not applicable
As for the significant difference between net cash flows from operating activities and net profit in the reporting period, please
refer to the Item 63, Note 5 “Supplementary Information of the Cash Flow Statement” in the Auditor’s Report.
V. Analysis of Non-Main Business
√ Applicable □ Not applicable
Whether it is sustainable
Amount (RMB) Proportion of profits (%) Explanation
or not
Except for 2.13 billion
yuan, which is the
Please refer to the Item 52, company's uncontrollable
Note 5 “Supplementary equity interest in Avatr,
Return on investment -768,957,070.79 -9.98% Information of the Cash and the remaining equity is
Flow Statement” in the remeasured at fair value to
Auditor’s Report. generate profits, other
sustainable assets are
available
Profits or losses of fair
3,570,229.29 0.05% No
value change
Please refer to the Item 55,
Note 5 “Supplementary
Impairment losses on
-945,853,716.20 -12.27% Information of the Cash No
assets
Flow Statement” in the
Auditor’s Report.
Non-operating income 128,910,416.79 1.67% No
Non-operating expenses 54,391,039.79 0.71% No
VI. Analysis of Assets and Liabilities
1. Major Changes in Asset Composition
31 December 2022 31 December 2021 Increase/Decrea
Description of
Proportion of Proportion of se in Proportion
Amount (RMB) Amount (RMB) significant changes
total assets (%) total assets (%) (%)
Monetary fund 53,530,183,827.34 36.65% 51,976,242,149.37 38.39% -1.74%
Mainly due to the
increased impact of
Receivables 3,068,414,415.29 2.10% 1,675,427,534.87 1.24% 0.86% accounts receivable
for outsourcing and
project development
Contract assets 458,389,187.10 0.31% 1,151,292,247.36 0.85% -0.54%
Inventories 5,823,307,512.90 3.99% 6,852,874,420.59 5.06% -1.07%
Investment property 6,422,715.04 0.00% 6,649,426.60 0.00% 0.00%
Long-term equity
14,406,662,456.28 9.86% 13,245,374,860.55 9.78% 0.08%
investment
Fixed assets 19,346,764,691.44 13.25% 21,325,959,850.16 15.75% -2.50%
Construction in
1,387,898,218.64 0.95% 1,460,176,539.43 1.08% -0.13%
progress
Right-of-use assets 100,813,386.01 0.07% 66,313,062.98 0.05% 0.02%
Short-term loans 29,000,000.00 0.02% 19,000,000.00 0.01% 0.01%
Mainly due to the
high matching
between dealer
Contract liabilities 5,655,256,792.66 3.87% 9,840,509,514.39 7.27% -3.40% demand and
manufacturer
inventory resources,
resulting in a decrease
24
Chongqing Changan Automobile Company Limited 2022 Annual Report
in advance payments
Long-term loans 36,000,000.00 0.02% 600,000,000.00 0.44% -0.42%
Lease liabilities 60,205,397.98 0.04% 38,679,735.59 0.03% 0.01%
Mainly due to the
year-on-year increase
in year-end sales and
Notes receivable 35,849,660,652.96 24.55% 24,267,633,416.65 17.92% 6.63% the impact of an
increase in the
proportion of dealer
bill payments
Mainly due to the
impact of increased
deferred tax assets 3,028,487,187.18 2.07% 2,280,819,516.99 1.68% 0.39%
balance of deductible
items
Mainly due to the
impact of prepaid land
Other payables 6,082,766,424.67 4.16% 4,562,626,344.69 3.37% 0.79%
and factory disposal
funds
Mainly due to the
impact of converting
share capital 9,921,799,422.00 6.79% 7,632,153,402.00 5.64% 1.15%
capital reserves into
equity
Foreign assets account for a relatively high proportion
□ Applicable √ Not applicable
2. Assets and liabilities measured at fair value
√ Applicable □ Not applicable
Unit: RMB
Changes in Accumulated Provision
Fair Value Fair Value for Amount of Amount of Sales
Opening
Item Gains and Changes Impairment Purchase in in Current Other Changes Closing Balance
Balance
Losses in Included in in Current Current Period Period
Current Period Equity Period
Financial assets
Financial assets
held for trading
(excluding 195,798,300.00 3,570,229.29 98,999,997.80 18,052,956.00 280,315,571.09
derivative
financial assets)
Investments in
other equity 701,409,600.00 -5,500,000.00 205,959,600.00 489,950,000.00
instruments
Subtotal
897,207,900.00 3,570,229.29 -5,500,000.00 98,999,997.80 205,959,600.00 18,052,956.00 770,265,571.09
financial assets
Others - - - - - - -
Total 897,207,900.00 3,570,229.29 -5,500,000.00 98,999,997.80 205,959,600.00 18,052,956.00 770,265,571.09
Financial
- - - - - - -
liabilities
Note: The trading financial assets and investments in other equity instruments in the table above are detailed in “2. Trading Financial
Assets” and “11. Investments in Other Equity Instruments” in Note 5 of Auditor’s Report .
Whether there are major changes on measurement attributes for main assets of the Company in reporting period
□ Yes √ No
3. Limitation of asset rights as of the end of the reporting period
Unit: RMB
Item Book Value at the End of Period Limitation Reason
Monetary fund 1,038,748,779.60 Acceptance bill deposit
Bill receivable 6,340,255,963.00 Pledge used to issue notes payable
Intangible assets 16,823,861.76 Obtaining working capital mortgage loans
25
Chongqing Changan Automobile Company Limited 2022 Annual Report
Fixed assets 29,963,526.50 Obtaining working capital mortgage loans
Total 7,425,792,130.86
VII. Analysis of Investments
1. Overall situation
√ Applicable □ Not applicable
Investment amount for the Investment amount for the
Item YoY Change (%)
reporting period (RMB) previous reporting period (RMB)
Equity investments 5,170,467,840.00 867,235,994.00 496.20%
Fixed assets 17,301,970.59 26,662,625.05 -35.11%
Construction in progress 1,749,624,706.95 1,516,873,296.63 15.34%
Intangible assets 145,975,646.19 61,121,381.78 138.83%
Total 7,083,370,163.73 2,471,893,297.46 186.56%
Joint investment between the Company and professional investment institutions:
Subscribed Actual
capital Subscription capital
Name of investment institutions Progress
contribution ratio (%) contribution
(RMB) (RMB)
Chongqing Changan Innovation By the end of the reporting period, the
Private Equity Investment Fund 300,000,000 46.08% 1,000,000 filing procedures for private equity
Partnership (Limited Partnership) investment funds have been completed
Chongqing Lianzhi Antou Equity As of the end of the reporting period,
Investment Partnership (Limited 200,000,000 50.25% 0 the operation of the partnership has
Partnership) been terminated and cancelled
26
Chongqing Changan Automobile Company Limited 2022 Annual Report
2. The major equity investment obtained in reporting period
√ Applicable □ Not applicable
Profit and
Whethe
Investment Shareho Progress Expe loss on
Name of Main Investm Investm r it is Discl
amount lding Capital Product as of the cted investmen
investee busines ent Partner ent involve osure Disclosure Index
（10000RM proporti source type balance reven ts for the
company s mode term d in a date
B） on sheet date ue current
lawsuit
period
National Green Development Fund Co., Ltd; Jiaxing
Lizhanye No. 6 Equity Investment Partnership
Please refer to the
(Limited Partnership); Qingdao Yuewan Smart
announcement of
Network Industrial Investment Fund Partnership
“Announcement
(Limited Partnership); Huzhou Chuangsheng
Sales of Completio on Related
Chiming Equity Investment Partnership (Limited
new n of Transactions of
Self- Partnership); Chongqing Cheng'an No. 2 Private New Not
cars and Capital Long- agreement Not 2022/ Capital Increase to
Avatr 116,900.00 40.99% owned Equity Investment Fund Partnership (Limited energy appli No
new increase term signing applicable 8/3 Associated
funds Partnership); Tianjin Weihao Haihe Phase I Equity vehicles cable
energy and Enterprises” on
Investment Partnership (Limited Partnership);
vehicles delivery http://www.cninfo
Ningbo Yongxin Weihao Phase I Semiconductor
.com.cn(Announc
Industry Investment Partnership (Limited
ement Number:
Partnership); Yiwu Weihao Chuangxin Phase I Equity
2022-55)
Investment Partnership (Limited Partnership);
Southern Industrial Asset Management Co., Ltd
Total -- -- 116,900.00 -- -- -- -- -- -- -- -- --
27
Chongqing Changan Automobile Company Limited 2022 Annual Report
3. The ongoing major non-equity investment in reporting period
□ Applicable √ Not applicable
4. Financial assets investment
(1) Security investments
√ Applicable □ Not applicable
Accumula
Gains and Purchase Sales
Accountin ted fair Gains and
Book value at the losses from amount amount Book value at the
g value losses of the Account
Security Stock Initial investment beginning of the changes in fair during the during the end of the Source
Abbreviation measurem changes reporting ing
type code cost（RMB） reporting period value during reporting reporting reporting period of funds
ent model included period subject
（RMB） the period period period （RMB）
in equity （RMB）
（RMB） （RMB） （RMB）
（RMB）
Fair value Trading Self-
Southwest
Stock 600369 50,000,000.00 measurem 177,902,700.00 -51,790,200.00 0.00 0.00 0.00 -49,099,800.00 126,112,500.00 financial owned
Securities
ent assets funds
China Fair value Trading Self-
Stock 301215 Automobile 98,999,997.80 measurem -- 26,052,631.00 0.00 0.00 0.00 26,651,841.51 125,052,628.80 financial owned
Corporation ent assets funds
Total 148,999,997.80 -- 177,902,700.00 -25,737,569.00 0.00 0.00 0.00 -22,447,958.49 251,165,128.80 -- --
(2) Derivative investments
√ Applicable □ Not applicable
1） Derivative investments for hedging purposes during the reporting period
√ Applicable □ Not applicable
Unit: 10,000 RMB
Investment
Initial Profit and loss Accumulated Amount of Amount of Proportion of investment
amount at the
derivatives from changes in changes in fair purchase in sales in the amount at the end of the
Investment type of derivatives end of the
investment fair value in the value included the reporting reporting reporting period to net
reporting
amount current period in equity period period assets of the Company
period
Forward Exchange 0 2,915 2,915 85,419 0 85,419 1.36%
Total 0 2,915 2,915 85,419 0 85,419 1.36%
Explanation of changes of the
accounting policies and accounting
principles of the Company’s hedging Not applicable
during the reporting period compared
with the previous reporting period
Description of actual gains/losses
No contract delivery, no actual profit or loss occurred.
during the reporting period
Changan Automobile adheres to the principle of risk neutrality in carrying out forward foreign exchange settlement and
sales business, based on normal production and operation, locks in income and cost through forward foreign exchange
Description of hedging effect
transactions, avoids the risk of exchange rate fluctuations, reduces the uncertainty of operating profits, and ensures the
realization of annual operating objectives.
Source of funds Self-owned funds
Risk analysis
1. Market risk: In the case of large changes in the exchange rate, the difference between the exchange rate of the forward
exchange contract and the actual exchange rate on the expiration date may cause the Company to lose money.
2. Liquidity risk: The foreign exchange hedging business is based on the Company’s foreign exchange assets and
Risk analysis and control measures for
liabilities, and matches the actual foreign exchange receipts and expenditures to ensure that there are sufficient funds for
derivatives investment during the
liquidation at the time of delivery, so as to reduce the cash flow demand on the maturity date.
reporting period (including but not
3. Default risk: Due to inaccurate forecasts, the delivery date signed by the forward exchange transaction is inconsistent
limited to market risk, liquidity risk,
with the actual delivery period, resulting in the delayed delivery risk caused by the failure of the forward exchange
credit risk, operational risk, legal risk,
transaction to be delivered at the agreed time.
etc.)
4. Operational risk: Forward exchange transactions are complex, which may cause risks due to imperfect internal control
and unprofessional operators.
5. Legal risks: If the terms of the transaction contract are not clear, the Company may face legal risks.
Risk control measures
28
Chongqing Changan Automobile Company Limited 2022 Annual Report
1. The Company and its subsidiaries will pay attention to the changes in the exchange rate market, strengthen the study
of exchange rates, study the future exchange rate trends, improve the forecasting ability of exchange rates, and reduce
the impact of exchange rate fluctuations on the Company.
2. In order to prevent delayed transaction settlement of forward exchange, the business management departments of the
Company and its subsidiaries will track the progress of payment and collection, avoid overdue payments, and try to
reduce the risk to the minimum.
3. The Company and its subsidiaries will strengthen business knowledge training, improve the comprehensive business
quality of relevant personnel, and improve the ability to identify and prevent exchange rate risks.
4. The Company has formulated the “Measures for the Administration of Forward Exchange Trading Business (Trial)”,
which clearly stipulates the business operation principles, approval authority, internal operation processes and
requirements, risk handling procedures, etc., and the operation must be handled in strict accordance with the requirements
of the measurements.
Changes in market price or fair value
of invested derivatives during the The Company’s measurement of Financial Instruments follows the “Accounting Standard for Business Enterprises
reporting period (the specific methods, Article 22 - Recognition and Measurement of Financial Instruments”, and the fair value is basically measured and
relevant assumptions and parameters recognized with reference to bank pricing. During the reporting period, the gain on the change in fair value of forward
used in the analysis of the fair value exchange contracts was RMB 29.15 million.
should be disclosed)
Whether it is involved in a lawsuit Not applicable
Disclosure date of derivatives
investment approval board February 23, 2022
announcement
Disclosure date of derivatives
investment approval shareholders March 18, 2022
meeting announcement
The independent directors believed that the forward exchange transactions settled by the Company and its subsidiaries
are based on normal production and operation needs with the principle of prudence, and for the purpose of currency
Opinions of independent directors on preservation and avoidance of exchange rate risks. For foreign exchange transactions, it is necessary to reduce the risk
the Company’s derivatives investment of exchange rate fluctuations by locking the exchange rate. The Company has formulated the “Management Measures
and risk control for Forward Exchange Transactions (Trial)”, and has improved the relevant internal control procedures. The targeted risk
control measures taken by the Company are feasible. And the forward exchange transactions settled by the Company and
its subsidiaries will abide by relevant laws and regulations and the Company’s relevant rules.
2） Derivative investment for the purpose of speculation during the reporting period
□ Applicable √ Not applicable
During the reporting period, there was no derivative investment for the purpose of speculation.
5. Use of raised funds
√ Applicable □ Not applicable
(1) Overall use of raised funds
√ Applicable □ Not applicable
Unit: 10,000 RMB
The total
The used amount of Cumulative Proportion
Amount of
amount of Total raised funds total amount of total The total The purpose
funds raised
Types of Total funds total funds accumulated with of raised raised amount of and placement
Year idle for
raise raised raised in the use of funds purpose funds with funds with unused of the unused
more than
current raised changed in purpose purpose funds funds
two years
period reporting changed changed
period
Deposited in a
Non-public
dedicated
2020 offering of 603,929.76 69,330.16 469,260.07 160,545.86 160,545.86 26.58% 134,669.69 account 0
for
shares
raised funds
Total -- 603,929.76 69,330.16 469,260.07 160,545.86 160,545.86 26.58% 134,669.69 -- 0
Description of the overall use of raised funds
1. The board of directors of the Company believes that the Company has disclosed the storage and actual use of the Company’s raised funds in a timely,
true, accurate and complete manner in accordance with the “Guidelines for the Standardized Operation of Listed Companies on the Shenzhen Stock
Exchange” and relevant format guidelines. There are no violations in the management of raised funds. The Company has faithfully fulfilled its
obligation to disclose the investment direction and progress of the raised funds.
2. The net amount of raised funds after deducting other issuance expenses is RMB 5,986.08 million, the actual net amount of raised funds after
adjustment is RMB 6,039.30 million. The Company used the raised funds of RMB 3,252.08 million, RMB 747.22 million and RMB 693.30 million
respectively in 2020, 2021 and 2022. As of December 31, 2022, the Company has used a total of RMB 4,692.60 million of the raised funds.
29
Chongqing Changan Automobile Company Limited 2022 Annual Report
(2) Use of the raised funds in committed projects
√ Applicable □ Not applicable
Unit: 10,000 RMB
Cumulative
Investment Whether the Whether the
Whether Total Adjusted investment Whether it
Committed projects and Amount progress as of project has Benefits feasibility of
the project committed total amount as meets the
placement of extra funds invested the end of the reached the realized this the project has
has been investment of investment of the end expected
raised this year period% (3) = intended year changed
changed raised funds (1) of the return
(2)/(1) usable state significantly
period (2)
Committed projects
H series fifth phase, NE1
series first phase engine Not Not
production capacity
Yes 141,568.38 103,313.68 17,031.87 100,831.01 98% No
applicable applicable
No
construction project
Crash Laboratory Capacity Not Not
Upgrade Project
Yes 11,505.75 8,251.85 2,076.08 8,042.02 97% No
applicable applicable
No
Clarificatio
n can only
CD569 production line be made Not
construction project
Yes 15,576.22 9,418.59 4,921.37 9,433.27 100% Yes
after the applicable
No
project
cycle ends
Hefei Changan Automobile
Not Not
Co., Ltd. adjustment and Yes 249,958.06 142,399.78 7,555.82 133,208.75 94% No
applicable applicable
No
upgrade project
Supplementary working Not Not
capital
No 180,000.00 180,000.00 - 180,000.00 100% No
applicable applicable
No
New generation energy-
saving product Not Not
transformation and
No - 160,545.86 37,745.02 37,745.02 24% No
applicable applicable
No
upgrading project
Total 598,608.41 603,929.76 69,330.16 469,260.07 78% -- -- -- --
The reasons for not
reaching the planned
progress or expected N/A
benefits (by specific
projects)
Description of major
changes in the feasibility of N/A
the project
The amount, use and
progress of extra raised Not applicable
funds
Change in implementation
location of the committed N/A
projects
Adjustment to
implementation method of N/A
committed project
On November 18th, 2020, the Ninth Meeting of the Eighth Session of the Board of Directors of the Company reviewed and approved the
Upfront investment and “Proposal on the Use of Raised Funds to Replace Early Investment in Self-Own Funds”, and agreed to use raised funds of RMB
replacement of committed 1,378,818,553.05 to replace pre-invested sell-raised funds for the project. The replacement of the raised funds has been verified by the
projects Ernst & Young Hua Ming (2020) Special Zi No. 60662431_D05 special report issued by Ernst & Young Hua Ming Certified Public
Accountants (special general partnership).
Use of idle raised funds for
temporary supplement of N/A
working capital
There was a balance of the original project investment funds compared to upfront planning. The main reason is that the company has
reduced the actual investment amount through the localization of imported equipment in the project implementation process in order to
reduce the investment in the project construction cycle, and at the same time, the company has continuously optimized the program in the
Amount and cause of
project construction process in order to continuously improve the quality of operation, and lean investment process management has
surplus of funds raised for
realized the control of the scale and rhythm of investment. According to the company’s long-term strategic planning and the current
project implementation
development needs, after the company’s comprehensive research. In order to further improve the efficiency of the use of the raised funds,
the company intends to adjust the investment scale of the original raised funds investment projects, and the expected balance of RMB
1,605.46 million for the company’s new generation of energy-saving product transformation and upgrading projects.
The purpose and placement Deposited in a dedicated account by the Company for raised funds
30
Chongqing Changan Automobile Company Limited 2022 Annual Report
of the unused raised funds
Defects and other problems
in utilization and disclosure N/A
of the raised funds
(3) Changes of projects supported by raised funds
√ Applicable □ Not applicable
Unit: 10,000 RMB
Total Significant
The amount Actual Investment The date when
amount of Benefits changes in
actually cumulative progress as the project Whether the
funds to be achieved the
The commitment of the invested investment of the end reached the expected
Changed project invested in during the feasibility
original project during the amount as of of the intended benefits have
the project reporting of the
reporting the end of the period (%) availability been achieved
after the period project after
period period (2) (3)=(2)/(1) status
change (1) the change
1. H series fifth phase, NE1
series first phase engine pr
oduction capacity construct
A new
ion project
generation of
2. Crash Laboratory Capaci
energy-saving
ty Upgrade Construction Pr In the year of Not Not
products 160,545.86 37,745.02 37,745.02 24% No
oject 2023 applicable applicable
transformation
3. CD569 production line c
and upgrading
onstruction project
projects
4. Hefei Changan Automob
ile Co., Ltd. adjustment and
upgrade project
Total -- 160,545.86 37,745.02 37,745.02 24% -- -- -- --
1. There was a balance of the original project investment funds compared to upfront planning. The main
reason is that the company has reduced the actual investment amount through the localization of
imported equipment in the project implementation process in order to reduce the investment in the
project construction cycle, and at the same time, the company has continuously optimized the program
in the project construction process in order to continuously improve the quality of operation, and lean
investment process management has realized the control of the scale and rhythm of investment.
According to the company’s long-term strategic planning and the current development needs, after the
company’s comprehensive research. In order to further improve the efficiency of the use of the raised
Reasons for change, decision-making procedures and
funds, the company intends to adjust the investment scale of the original raised funds investment
information disclosure (by specific project)
projects, and the expected balance of RMB 1,605.46 million for the company’s new generation of
energy-saving product transformation and upgrading projects.
2. Decision-making procedure: The Company held the 38th meeting of the 8th Board of Directors on
April 26th, 2022, and approved the proposal of “Adjusting and Changing the Use of Part of the Raised
Funds”. The proposal has yet to be submitted to the Company’s General Meeting of Shareholders for
consideration.
3. Information disclosure: Please refer to the announcement of “Adjusting and Changing the Use of Part
of the Raised Funds” on http://www.cninfo.com.cn (Announcement Number: 2022-23).
Reasons for failure to meet the planned schedule or
Not applicable
projected benefits (by project)
Description of significant changes in the feasibility of the
Not applicable
project after the change
VIII. Sale of significant Assets and Equity
1. Sale of significant assets
□ Applicable √ Not applicable
2. Sale of significant equity
□ Applicable √ Not applicable
IX. Analysis of Major Shareholding and Joint Stock Companies
√ Applicable □ Not applicable
Major subsidiaries and joint stock companies that affect the company’s net profit by more than 10%
31
Chongqing Changan Automobile Company Limited 2022 Annual Report
Unit: 10,000 RMB
Registered Operating
Main Total Operating
Name Type capital Net assets profit Net profit
businesses assets income
Production and
Avatr Technology (Chongqing) Joint Stock
Co. Ltd. Company
sales of vehicles 164,466 521,264 277,307 2,834 -201,434 -201,530
and parts
Production and
Chongqing Changan New Energy Joint Stock
Vehicle Technology Co., Ltd. Company
sales of vehicles 32,811 2,033,628 109,002 1,567,757 -319,557 -319,656
and parts
Production and
Changan Ford Automobile Co., Joint Stock
Ltd. Company
sales of vehicles 24,100 USD 3,601,827 153,032 5,106,691 -114,102 -244,864
and parts
Subsidiaries acquired and sold in the reporting period
√ Applicable □ Not applicable
During the reporting period, Changan Automobile established a new subsidiary, Chongqing Changan Technology Co., Ltd;
Simultaneously completing the deregistration of Changan Brazil Holdings Limited Liability Company; Avatr Technology (Chongqing)
Co., Ltd. introduced strategic investors, lost control over them, and no longer included them in the consolidation scope, and made
subsequent measurement according to the Equity method.
Acquisition and disposal of subsidiaries Impact on overall production,
Name
during the reporting period operation and performance
Changan Brazil Holdings Co., Ltd Unregister None
Chongqing Changan Technology Co., Ltd New Settings None
Avatr Technology (Chongqing) Co. Ltd. Equity dilution Significant impact
Description of major holding and participating companies
Avatr is in a strategic investment period and has invested heavily in product research and development, brand promotion, channel
building, and technical talent introduction, resulting in losses; Changan New Energy has increased investment in product R&D and
brand promotion to accelerate the transformation of new energy strategy and brand advancement. At the same time, it has suffered
losses due to the increase in battery raw material costs and other factors; Changan Ford has shut down outdated production lines in
order to accelerate revitalization, and has made provision for asset impairment in the current period, which has affected a significant
decrease in profits.
X. Information of main shareholding and joint stock companies
□ Applicable √ Not applicable
XI. Prospects of Future Development
1. Industrial Landscape and Tendency
From the overall perspective of the automotive industry, the demand side external demand slows down, China's economy turns to
domestic demand-driven, with the recovery of travel scenarios and residents' confidence, domestic consumer demand is gradually
released, it is expected that the trend of the automotive industry in 2023 will first decline and then rise, and the total volume will
increase slightly.
(1) New energy and power trends: The low-speed growth of China's automobile market and the high-speed growth of new
energy vehicles are clearly contrasted, and the "fragmentation" of power structure and industrial scale coexist. China's new energy
automobile industry has entered a period of explosive growth, and sales are expected to increase by about 20% year-on-year in 2023.
In the new energy vehicle market, it is expected that XEV (plug-in hybrid + extended-range hybrid) will replace traditional fuel vehicles
with its economy.
(2) Intelligent industry trends: In intelligent vehicles, intelligent driving and intelligent cockpits have become the fastest
changing fields. In the field of intelligent driving, after years of development and practice, most enterprises have returned to rationality
and focused on user scenarios to create excellent L2+ intelligent driving systems; The field of intelligent space is the most direct
competition point for the user experience of various brands, and it is also the main battlefield for brand differentiated experience.
(3) Competitive trends: Chinese brands, foreign brands, new automakers, and ICT companies compete on the same stage. Among
them, Chinese brands seize the strategic opportunities of the new energy market, continue to give full play to the advantages of new
energy technology, intelligent ecological localization and cost control, and continue to increase their market share in the passenger car
market, and it is expected that the market share will be close to 55% in 2023.
(4) Overseas market trends: Based on the expectation of a global economic recession in 2023, overseas demand is weakened,
and it is expected that the increase in China's automobile exports will slow down in 2023, and the export growth rate is expected to be
about 30%; In addition, under the trend of global intelligent electrification of automobiles, the relatively leading position of China's
automobile industry, coupled with China's engineer dividend, lean management and other promoting factors, gradually exporting
products, technologies and capital to the world, Chinese car companies are expected to gradually develop from export-oriented to
industrial investment-oriented in overseas markets.
32
Chongqing Changan Automobile Company Limited 2022 Annual Report
(5) Core supply chain trends of smart electric vehicles (chips and batteries): The supply and demand of automotive chips will
remain structurally tight in 2023, and it is expected that the global supply of automotive chip production capacity will increase by about
20% and demand by about 40% in 2023. The price of battery materials remains high and volatile.
2. Corporation Development Strategy
At present, China in the new era is entering a period of coexistence of strategic opportunities and risks and challenges, and
increasing uncertainties and unpredictable factors, Changan Automobile takes the initiative to identify and adapt to changes, takes the
company's "14th Five-Year Plan" development plan as the traction, firmly adheres to the direction of the third entrepreneurship, takes
scientific and technological innovation as the driving force, reshapes capabilities, upgrades the industry, and firmly and resolutely
transforms into a smart low-carbon mobility technology company with a faster speed and greater intensity. By 2025, the Group aims
to sell 3.5 million to 4 million units, of which 2.8 million to 3 million units will be sold under the Changan brand. By 2030, the Group
aims to achieve sales of 5 million units, including 4 million units under the Changan brand, during which it will make every effort to
increase the penetration rate of new energy and accelerate the layout of overseas markets.
In order to ensure the achievement of strategic goals, we will focus on implementing the "five major breakthroughs" and fully
promote the “two major changes”:
——Five breakthroughs
(1) Strategic breakthrough
Firmly promote the third entrepreneurship - innovation and entrepreneurship plan, quickly implement the new energy "Shangri-
La" plan and the intelligent "Beidou Tianshu" plan, and create "new automobiles, new ecology".
(2) Brand breakthrough
Further reconstruct the brand architecture and accelerate the creation of popular products. Focus on the three major brands of
Changan, Deepal and Avatr, build differentiated brand value, and create a new label of intelligent electric vehicles. Thereinto:
Changan brand, on the one hand, integrates existing fuel vehicle brands such as "V" standard, UNI series and Oshan, accelerates
electrification transformation, and creates the "Smart electricity iDD" technology label. Integrate resources to achieve the goal of
"increasing stock". By 2025, the company plans to launch 22 new products and maintain sales of 1 million units.
On the other hand, the creation of a new mainstream electric sequence, OX sequence, will be a new exploration of the
transformation of the main brand of "Changan" to electrification. The OX sequence will increase the layout of mainstream EVs,
maximize the scale of expansion, enhance the value of the main brand of "Changan", and strive to seize new tracks. We will select
investment entities and open up special zones on the basis of existing channels to achieve full coverage of prefecture-level cities and
core business districts. In the fourth quarter of 2023, the first product of the OX series will be officially launched, and by 2025, it plans
to launch five new products, with sales estimated to exceed 800,000 units.
Deepal Auto further consolidates the brand positioning of young and high-tech digital pure electric vehicles, combines the all-
electric technology advantages of range extension, pure electric and hydrogen electricity, and comprehensively develops the
mainstream electric market, bringing users a young, high-tech and pioneer intelligent low-carbon travel experience. By 2025, the
company plans to launch seven new products with sales estimated to exceed 800,000 units.
Avatr is the strategic support of Changan Automobile brand. In 2022, the brand launch has been completed, and the first product
Avatr 11 and co-branded limited model 011 have been put on the market and sold, which has been warmly received. In the future, Avatr
will continue to strengthen the brand emotional intelligent label, occupy the high-end market, and compete with new forces and luxury
brands. Before 2025, it plans to launch 4 new products, and the sales volume is estimated to exceed 300,000-400,000.
Kaicheng Automobile integrates social resources, promotes smart logistics demonstration operation, accelerates the
transformation to pickup trucks and smart logistics, and realizes brand renewal. Before 2025, it plans to launch 7 brand new products,
and the sales volume is estimated to exceed 300,000 to 400,000 units.
In the joint venture sector, the company should adhere to the profit and market share orientation, strengthen operation and
management, empower the parent company, further expand the cooperation of "technology, platform and overseas", and try best to
open up a new era of joint venture. Seven new products are planned by 2025.
(3) Overseas breakthrough
The company will accelerate the construction of overseas strategic bases and strive to develop overseas markets. To build an
international brand, the company should follow the slogan "No base no overseas, no overseas no Changan".
(4) Technology breakthrough
The company should deepen efforts in the fields of new energy and intelligence, and develop key core technologies.
(5) Ecology breakthrough
The company will accelerate the new ecological layout, improve the innovation chain, integrate the capital chain, strengthen the
supply chain, layout the industrial chain, and explore new opportunities for value growth.
——Two major changes
The company should actively explore the two major changes of "new marketing, new partners", and strive to open a new chapter
of higher quality win-win cooperation.
(1) New Marketing
The company should keep up with the technological progress and the changing trend of the market, review the asset-heavy model
of 4S store distribution, to the scene decoupling, digital connection, multiple combination of the new model.
(2) New Partners
33
Chongqing Changan Automobile Company Limited 2022 Annual Report
Based on the principles of "equality, mutual trust, transparency, security and synergistic resilience", the company should
comprehensively build a new type of strategic cooperative partnership for customers.
3. Operation Plan
The actual sales of the company in the reporting period reached 95.8% of the board's target, with a year-on-year growth of 2.0%,
and the sales volume reached a five-year high. The operating goal of the board of directors in 2023 is to achieve production and sales
of more than 2.53 million vehicles. In order to achieve the above goals, the company adheres to the guidance of Xi Jinping Thought on
Socialism with Chinese Characteristics for a New Era, fully implements the Party's 20 great spirits and takes Innovation and
Entrepreneurship Plan 6.0 as the main line. The company will set firm strategy, steady and brave progress, innovative development,
and strives to increase stock, grab increment, improve quality, adjust structure, keep bottom line, and strengthen Party building.
Changan will unswervingly promote transformation, upgrading and high-quality development and will focus on the following tasks:
first, uphold the leadership of the Party and guide high-quality development through high-quality Party building. Second, the company
need to strengthen strategy implementation and draw a new blueprint for high-quality development. Third, Changan needs to resolutely
guard against and defuse major risks to ensure that production and operation targets are achieved. Fourth, the company needs to adhere
to innovation-driven, make efficiency into the core competitiveness. Fifth, the company should deepen reform and innovation to fully
stimulate innovation and entrepreneurship. Sixth, Changan should strengthen the incentive and restraint mechanism to stimulate the
new vitality of organizational talents. Seventh, the company needs to create a leading culture and gather the spirit of innovation and
entrepreneurship among all staff.
4. Capital Expenditure Plan for 2023
In order to achieve the strategic goals of the company, the investment plan of the company and its holding subsidiaries in 2023 is
RMB 8648.59 million, including RMB 479,265 million fixed assets investment and RMB 3,855.94 million equity investment.
Investment in fixed assets is mainly invested in the four aspects of capacity structure adjustment, research and development capacity,
new product launch and digital capacity, to deepen the layout of new energy industry, accelerate the pace of new energy product launch,
and continue to improve digitalization and research and development capacity. Equity investment is mainly to support independent
new energy brands, expand the scale, expand overseas markets, deepen the capital relationship with partners, build intelligent research
and development and forward-looking research capabilities, and layout of intelligent and new energy core components. The company
will study and formulate fund raising plans and fund use plans through various channels according to the project progress and combined
with the operating and financing environment, so as to improve the efficiency of fund use and reduce the cost of capital.
5. Possible Risks
(1) Supply chain stability risk
Due to multiple factors and contradictions, the stability of the global supply chain system has decreased. The automotive industry
may still face supply chain risks in areas such as chips and battery materials.
Counterplan: first, the company should strengthen the cooperation between the upstream and downstream enterprises of the
industrial chain, and reduce the risk of supply fluctuation through long-term agreements, stockpiling risky components, etc. Second,
the company needs to intensify independent development of key core components and continue to promote domestic alternatives for
key core components.
(2) Exchange rate fluctuation risk
Since 2022, global inflation has heated up, the US Federal Reserve has raised interest rates aggressively, the US dollar has returned,
monetary policy fluctuations of major economies have significantly increased, and economic growth has faced downward pressure.
These factors may lead to a decline in the export volume of automobiles in some target markets.
Counterplan: in the context of normal two-way exchange rate fluctuations, the awareness of exchange rate risk should be
enhanced, the tracking of exchange rate changes should be strengthened, and the risk of exchange rate loss should be reduced by
gradually expanding the RMB settlement range or locking the settlement rate.
XII. Reception Research, Communication, Interviews and Other Activities during the
Reporting Period
√ Applicable □ Not applicable
Type of
Reception
Date Research Type Research Index
place
Object
For details, see the February 24, 2022 Shenzhen stock exchange
On February 22,
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2022
February 22, 2022 investor relations activities record sheet
On April 29, Oneline Performance All investors For details, see the May 6, 2022 Shenzhen stock exchange interactive
34
Chongqing Changan Automobile Company Limited 2022 Annual Report
2022 briefing (http://irm.cninfo.com.cn) on the Changan Automobile: April 29, 2022
investor relations activities record sheet
For details, see the May 6, 2022 Shenzhen stock exchange interactive
conference
On May 5, 2022 conference calls Institution (http://irm.cninfo.com.cn) on the Changan Automobile: May 5, 2022
calls
investor relations activities record sheet
For details, see the May 9, 2022 Shenzhen stock exchange interactive
conference
On May 6, 2022 conference calls Institution (http://irm.cninfo.com.cn) on the Changan Automobile: May 6, 2022
calls
investor relations activities record sheet
For details, see the May 9, 2022 Shenzhen stock exchange interactive
conference
On May 7, 2022 conference calls Institution (http://irm.cninfo.com.cn) on the Changan Automobile: May 7, 2022
calls
investor relations activities record sheet
For details, see the May 11, 2022 Shenzhen stock exchange interactive
conference
On May 9, 2022 conference calls Institution (http://irm.cninfo.com.cn) on the Changan Automobile: May 9, 2022
calls
investor relations activities record sheet
For details, see the May 11, 2022 Shenzhen stock exchange interactive
On May 10, conference
conference calls Institution (http://irm.cninfo.com.cn) on the Changan Automobile: May 10, 2022
2022 calls
investor relations activities record sheet
For details, see the May 13, 2022 Shenzhen stock exchange interactive
On May 11, conference
conference calls Institution (http://irm.cninfo.com.cn) on the Changan Automobile: May 11, 2022
2022 calls
investor relations activities record sheet
For details, see the May 13, 2022 Shenzhen stock exchange interactive
On May 12, conference
conference calls Institution (http://irm.cninfo.com.cn) on the Changan Automobile: May 12, 2022
2022 calls
investor relations activities record sheet
For details, see the May 20, 2022 Shenzhen stock exchange interactive
On May 18, conference
conference calls Institution (http://irm.cninfo.com.cn) on the Changan Automobile: May 18, 2022
2022 calls
investor relations activities record sheet
For details, see the May 20, 2022 Shenzhen stock exchange interactive
On May 19, conference
conference calls Institution (http://irm.cninfo.com.cn) on the Changan Automobile: May 19, 2022
2022 calls
investor relations activities record sheet
For details, see the May 24, 2022 Shenzhen stock exchange interactive
On May 23, conference
conference calls Institution (http://irm.cninfo.com.cn) on the Changan Automobile: May 23, 2022
2022 calls
investor relations activities record sheet
For details, see the May 27, 2022 Shenzhen stock exchange interactive
On May 25, conference
conference calls Institution (http://irm.cninfo.com.cn) on the Changan Automobile: May 25, 2022
2022 calls
investor relations activities record sheet
For details, see the May 27, 2022 Shenzhen stock exchange interactive
On May 26, conference
conference calls Institution (http://irm.cninfo.com.cn) on the Changan Automobile: May 26, 2022
2022 calls
investor relations activities record sheet
For details, see the June 8, 2022 Shenzhen stock exchange interactive
conference
On June 7, 2022 conference calls Institution (http://irm.cninfo.com.cn) on the Changan Automobile: June 7, 2022
calls
investor relations activities record sheet
For details, see the June 10, 2022 Shenzhen stock exchange interactive
On June 10, conference
conference calls Institution (http://irm.cninfo.com.cn) on the Changan Automobile: June 10, 2022
2022 calls
investor relations activities record sheet
For details, see the June 16, 2022 Shenzhen stock exchange interactive
On June 15, conference
conference calls Institution (http://irm.cninfo.com.cn) on the Changan Automobile: June 15, 2022
2022 calls
investor relations activities record sheet
For details, see the June 17, 2022 Shenzhen stock exchange interactive
On June 16, conference
conference calls Institution (http://irm.cninfo.com.cn) on the Changan Automobile: June 16, 2022
2022 calls
investor relations activities record sheet
For details, see the June 22, 2022 Shenzhen stock exchange interactive
On June 20, conference
conference calls Institution (http://irm.cninfo.com.cn) on the Changan Automobile: June 20, 2022
2022 calls
investor relations activities record sheet
For details, see the June 24, 2022 Shenzhen stock exchange interactive
On June 23, conference
conference calls Institution (http://irm.cninfo.com.cn) on the Changan Automobile: June 23, 2022
2022 calls
investor relations activities record sheet
For details, see the August 25, 2022 Shenzhen stock exchange
On August 23,
Chongqing Field research Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2022
August 23, 2022 investor relations activities record sheet
For details, see the September 2, 2022 Shenzhen stock exchange
On August 31, Performance
Oneline All investors interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2022 briefing
August 31, 2022 investor relations activities record sheet
For details, see the September 19, 2022 Shenzhen stock exchange
On September conference
conference calls Institution interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
15, 2022 calls
September 15, 2022 investor relations activities record sheet
On September Chongqing Field research Institution For details, see the September 30, 2022 Shenzhen stock exchange
35
Chongqing Changan Automobile Company Limited 2022 Annual Report
28, 2022 interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
September 28, 2022 investor relations activities record sheet
For details, see the November 3, 2022 Shenzhen stock exchange
On October 31, Performance
Oneline All investors interactive (http://irm.cninfo.com.cn) on the Changan Automobile:
2022 briefing
October 31, 2022 investor relations activities record sheet
36
Chongqing Changan Automobile Company Limited 2022 Annual Report
Chapter 4 Corporate Governance
I. The Basic Situation of Corporate Governance
During the reporting period, the company continuously improved its corporate governance structure, established and improved its
internal management and control system, and continuously promoted the improvement of the company's standardized operation level
in strict accordance with the requirements of the Company Law, the Securities Law, and the relevant regulatory documents of the China
Securities Regulatory Commission and Shenzhen Stock Exchange. The actual situation of corporate governance of the company meets
the requirements of the regulatory documents of the China Securities Regulatory Commission on listed company governance.
During the reporting period, the company improved a series of regulatory management systems such as the Articles of Association,
the Management System for Connected Transactions, the Management System for Information Disclosure, the Registration
Management System for Insiders, the Investor Relations Management System, and the Independent Director Work System in
accordance with the newly issued regulatory documents of the China Securities Regulatory Commission and the Shenzhen Stock
Exchange, in combination with the actual situation, Continuously optimize the construction of corporate governance related systems
and management processes, orderly promote implementation, and strive to improve the company's decision-making efficiency and
governance effectiveness.
The company has established an effective internal control system over the financial report. According to company’s operation and
management characteristics, the company strictly implemented the “Enterprise Accounting Standards”, improved the basic accounting
management, established a sound financial system, optimized accounting and statements preparation process, strengthened the financial
supervision, conducted the in-depth implementation of financial management, established the management foundation work,
accounting and finance management authorization, the monetary fund management, financing, purchasing and payment, fixed assets,
projects under construction, accounting policy, accounting estimate, consolidated financial statements, cost management, inventory
management, financial analysis and other financial management system to ensure the quality of accounting information and the safety
of the Company property. According to internal control deficiencies identified standards of the financial report, there is no internal
control defects over financial reporting in the report period. The full text of the internal control self-evaluation report is published on
http://www.cninfo.com.cn on April 18, 2023.
Whether there are differences between corporate governance and the related requirements of “Company Law” and China
CSRC.
□ Yes √ No
There is no difference between corporate governance and the related requirements of “Company Law” and China CSRC.
II. The Independence of the Company in Terms of Assets, Personnel, Finance, Organization
And Business Relative to Controlling Shareholders and Actual Controllers
The Company is completely independent from the controlling shareholders and actual controllers in terms of business, assets,
personnel, institutions and finance.
1. Business: The business of Changan Auto is independent of controlling shareholders and actual controllers. It makes independent
decisions, operates independently and is responsible for its own profits and losses. It has a complete business and industrial system
including procurement, production, sales and research and development. The controlling shareholders and actual controllers do not
directly or indirectly interfere in the production and business activities of Changan Auto.
2. Personnel: The controlling shareholder and the actual controller are completely independent from the personnel, labor and
personnel of Changan Auto. They have independent staff teams, complete labor management, performance appraisal and other systems
and salary systems, and independently sign the Labor Contract with employees according to law.
3. Assets: The assets of controlling shareholders and actual controllers are strictly separated from Changan Auto, and the property
rights are clearly defined. There is no direct or indirect interference in the production and operation of Changan Auto. Changan Auto
has independent production system, auxiliary production system, supporting facilities, land use rights and other assets, legally owns
land, real estate, machinery and equipment, trademarks related to production and operation, and has an independent raw material
procurement and product sales system.
4. Organization: The controlling shareholder, the actual controller and Changan Auto have independent production, operation and
office places. There is no mixed operation.
5. Finance: The controlling shareholder, the actual controller and Changan Auto have independent finance and accounting
departments with independent finance and accounting personnel, and have established independent accounting system and financial
management system. They make financial decisions independently, open bank accounts and pay taxes independently, and do not share
bank accounts. Changan Auto handles tax registration independently and pays tax independently according to law.
Ⅲ. Competition Situation
□ Applicable √ Not applicable
37
Chongqing Changan Automobile Company Limited 2022 Annual Report
IV. Annual Shareholders Meeting and Extraordinary General Meeting during the Reporting
Period
1. Shareholders meeting during the reporting period
Investors’
Meeting Session Type participation Opening Time Disclosure Time Resolution Index
Ratio
http//www.cninfo.com.cn
2022 The First 2022 The First Extraordinary
Extraordinary EGM 40.917% March 17th, 2022 March 18th, 2022 General Meeting Resolution
General Meeting Announcement (Announcement
Number: 2022-14)
http//www.cninfo.com.cn
2021 Annual
2021 Annual Shareholders Meeting
Shareholders Annual 50.718% June 15th,2022 June 16th, 2022
Resolution Announcement
Meeting
(Announcement Number: 2022-44)
http//www.cninfo.com.cn
2022 The Second 2021 The Second Extraordinary
Extraordinary EGM 40.755% July 26th,2022 July 27th, 2022 General Meeting Resolution
General Meeting Announcement (Announcement
Number: 2022-53)
http//www.cninfo.com.cn
2022 The Third 2021 The Second Extraordinary
Extraordinary EGM 49.838% August 18th,2022 August 19th, 2022 General Meeting Resolution
General Meeting Announcement (Announcement
Number: 2022-60)
http//www.cninfo.com.cn
2022 The Fourth 2021 The Second Extraordinary
December 22nd, December 23th,
Extraordinary EGM 39.332% General Meeting Resolution
2022 2022
General Meeting Announcement (Announcement
Number: 2022-82)
2. The shareholders of preferred shares with voting right restored request to convene an extraordinary
general meeting
□ Applicable √ Not applicable
V. Directors, Supervisors and Senior Management Personnel
1. Basic information
Share Share
Shares
Shares held volume volume
Other held at the Reasons for
Appoint at beginning increased decreased
Start End increase/de end of the increase
Name Position ment Gender Age of reporting in the in the
date date crease reporting /decrease in
status period reporting reporting
(share) period shares
(share） period period
（share)
（share） （share）
Chairman, Equity
Zhu Secretary of Incumbe 2020- 2023- distribution in
M 57 385,280 115,584 500,864
Huarong the Party nt 06-22 06-22 2021; Equity
Committee incentive
Xian Incumbe 2022- 2023-
Director M 52 - - -
Zhigang nt 07-26 06-22
Incumbe 2021- 2023-
Zhang Bo Director M 44 - - -
nt 02-18 06-22
Incumbe 2021- 2023-
Liu Gang Director M 56 - - -
nt 02-18 06-22
Zhou Incumbe 2021- 2023-
Director M 50 - - -
Kaiquan nt 09-17 06-22
38
Chongqing Changan Automobile Company Limited 2022 Annual Report
Director,
Equity
President
Incumbe 2020- 2023- distribution in
Wang Jun and Deputy M 50 280,000 84,000 364,000
nt 06-22 06-22 2021; Equity
Party
incentive
Secretary
Director,
Equity
CFO,
Zhang Incumbe 2020- 2023- distribution in
Secretary of M 48 271,600 81,480 353,080
Deyong nt 06-22 06-22 2021; Equity
the Board of
incentive
Directors
Ren
Independent Incumbe 2020- 2023-
Xiaochan M 66 - - -
Director nt 06-22 06-22
g
Wei Independent Incumbe 2020- 2023-
M 54 - - -
Xinjiang Director nt 06-22 06-22
Cao Independent Incumbe 2020- 2023-
M 51 - - -
Xingquan Director nt 06-22 06-22
Yang Independent Incumbe 2021- 2023-
M 62 - - -
Xinmin Director nt 09-17 06-22
Li Independent Incumbe 2022- 2023-
M 59 - - -
Keqiang Director nt 06-15 06-22
Independent Incumbe 2022- 2023-
Ding Wei M 62 - - -
Director nt 06-15 06-22
Tang Independent Incumbe 2022- 2023-
M 60 - - -
Guliang Director nt 06-15 06-22
Zhang Independent Incumbe 2022- 2023-
M 44 - - -
Ying Director nt 06-15 06-22
Chairman of
the Incumbe 2021- 2023-
Lian Jian M 59 - - -
Supervisory nt 09-17 06-22
Board
Sun Incumbe 2020- 2023-
Supervisor M 56 - - -
Dahong nt 06-22 06-22
Employee
Shi Supervisory Incumbe 2021- 2023-
M 51 - - -
Shengwei Board nt 11-08 06-22
Member
Employee
Supervisory Incumbe 2020- 2023-
Luo Yan F 48 - - -
Board nt 06-19 06-22
Member
Deputy Equity
Yuan Secretary of Incumbe 2020- 2023- distribution in
M 54 280,000 84,000 364,000
Mingxue the Party nt 07-13 06-22 2021; Equity
Committee incentive
Secretary of
Pu
Discipline Incumbe 2023- 2023-
Xingchua M 51 - - -
Inspection nt 03-03 06-22
n
Commission
Equity
Executive
Tan Incumbe 2020- 2023- distribution in
Vice M 47 271,600 81,480 353,080
Benhong nt 07-13 06-22 2021; Equity
President
incentive
Equity
Executive
Incumbe 2020- 2023- distribution in
Ye Pei Vice M 47 271,600 81,480 353,080
nt 07-13 06-22 2021; Equity
President
incentive
Equity
Executive
Incumbe 2020- 2023- distribution in
Chen Wei Vice M 50 271,600 81,480 353,080
nt 07-13 06-22 2021; Equity
President
incentive
Equity
Executive
Li Incumbe 2022- 2023- distribution in
Vice M 41 271,600 81,480 353,080
Mingcai nt 01-28 06-22 2021; Equity
President
incentive
Yang Executive Incumbe M 48 2022- 2023- 194,000 58,200 252,200 Equity
39
Chongqing Changan Automobile Company Limited 2022 Annual Report
Dayong Vice nt 12-28 06-22 distribution in
President 2021; Equity
incentive
Equity
Executive
Incumbe 2022- 2023- distribution in
Peng Tao Vice M 45 191,240 57,372 248,612
nt 12-28 06-22 2021; Equity
President
incentive
Equity
Zhang Vice Incumbe 2022- 2023- distribution in
M 43 191,240 57,372 248,612
Xiaoyu President nt 01-12 06-22 2021; Equity
incentive
Equity
Wang Vice Incumbe 2022- 2023- distribution in
M 40 132,300 39,690 171,990
Xiaofei President nt 01-12 06-22 2021; Equity
incentive
Equity
Vice Incumbe 2022- 2023- distribution in
Wang Hui M 41 132,300 39,690 171,990
President nt 09-22 06-22 2021; Equity
incentive
Equity
Zhang Vice Incumbe 2023- 2023- distribution in
M 40 191,240 57,372 248,612
Fatao President nt 01-05 06-22 2021; Equity
incentive
Equity
Secretary of Incumbe 2020- 2023- distribution in
Li Jun F 53 191,240 57,372 248,612
the Board nt 07-13 06-22 2021; Equity
incentive
Equity
Executive
2020- 2022- distribution in
Li Wei Vice Outgoing M 56 271,600 81,480 353,080
07-13 01-12 2021; Equity
President
incentive
Independent 2020- 2022-
Liu Jipeng Outgoing M 66 - - -
Director 06-22 06-15
Li Independent 2020- 2022-
Outgoing M 67 - - -
Qingwen Director 06-22 06-15
Chen Independent 2020- 2022-
Outgoing M 77 - - -
Quanshi Director 06-22 06-15
Tan
Independent 2020- 2022-
Xiaoshen Outgoing M 52 - - -
Director 06-22 06-15
g
Ye 2022- 2022-
Director Outgoing M 50 - - -
Wenhua 03-17 07-08
Equity
He Independent 2020- 2022- distribution in
Outgoing M 55 271,600 81,480 353,080
Chaobing Director 07-13 09-22 2021; Equity
incentive
Equity
Executive
2020- 2022- distribution in
Zhao Fei Vice Outgoing M 48 271,600 81,480 353,080
07-13 12-02 2021; Equity
President
incentive
Secretary of Equity
Hua Discipline 2020- 2023- distribution in
Outgoing M 55 271,600 81,480 353,080
Zhanbiao Inspection 07-13 03-03 2021; Equity
Commission incentive
Total -- -- -- -- -- -- 4,613,240 1,383,972 5,997,212 --
Whether there are any outgoing directors and supervisors and the dismissal of senior management personnel during the
reporting period
√Yes □ No
See “V. 1. Changes in Directors, Supervisors, and Senior Management Personnel” in Chapter 4.
Changes in Directors, Supervisors and Senior Management Personnel
√ Applicable □ Not applicable
Name Position Type Date Reason
Zhang Xiaoyu Vice President Appointed January 12th, 2022 Appointment
Wang Xiaofei Vice President Appointed January 12th, 2022 Appointment
40
Chongqing Changan Automobile Company Limited 2022 Annual Report
Executive Vice
Li Mingcai Appointed January 28th, 2022 Appointment
President
Zhang Deyong Secretary of the Board Appointed January 28th, 2022 Appointment
Ye Wenhua Director Elected March 17th, 2022 Appointment
Li Keqiang Independent Director Elected June 15th, 2022 Appointment
Ding Wei Independent Director Elected June 15th, 2022 Appointment
Tang Guliang Independent Director Elected June 15th, 2022 Appointment
Zhang Ying Independent Director Elected June 15th, 2022 Appointment
Xian Zhigang Director Elected July 26th, 2022 Appointment
Wang Hui Vice President Appointed September 22th, 2022 Appointment
Executive Vice
Yang Dayong Appointed December 28th, 2022 Appointment
President
Executive Vice
Peng Tao Appointed December 28th, 2022 Appointment
President
Zhang Fatao Vice President Appointed January 5th, 2023 Appointment
Secretary of Discipline
Inspection Commission
Pu Xingchuan Appointed March 3rd, 2023 Appointment
(Senior Management
Personnel)
Executive Vice Dismissal from
Li Wei January 12th, 2022 Job change
President Employment
Dismissal from
Li Mingcai Vice President January 28th, 2022 Job change
Employment
Leave office upon
Liu Jipeng Independent Director June 15th, 2022 Leaving office after 6 years of tenure
expiration of term
Leave office upon
Li Qingwen Independent Director June 15th, 2022 Leaving office after 6 years of tenure
expiration of term
Leave office upon
Chen Quanshi Independent Director June 15th, 2022 Leaving office after 6 years of tenure
expiration of term
Leave office upon
Tan Xiaosheng Independent Director June 15th, 2022 Leaving office after 6 years of tenure
expiration of term
Ye Wenhua Director Outgoing July 8th, 2022 Job change
Executive Vice Dismissal from
He Chaobing September 22th, 2022 Job change
President Employment
Executive Vice Dismissal from
Zhao Fei December 2nd, 2022 Job change
President Employment
Dismissal from
Yang Dayong Vice President December 28th, 2022 Job change
Employment
Dismissal from
Peng Tao Vice President December 28th, 2022 Job change
Employment
Secretary of Discipline
Inspection Commission Dismissal from
Hua Zhanbiao March 3rd, 2023 Job change
(Senior Management Employment
Personnel)
2. Incumbency
Professional background, work experience and duties and responsibilities of incumbent Directors, Supervisors and Senior
Manager Personnel
(1) Directors
Mr. Zhu Huarong, Chairman and Secretary of the Party Committee. Born in 1965, master's degree, senior engineer. Currently, he
is the General Manager Assistant of Weapon Equipment Group and the Director of Changan, China. He has served as Deputy Director
of the Technology Department of Changan Company, Chief Engineer of the Automobile Manufacturing Plant, Assistant to the President
and Director of the Technology Center, Director of the Science and Technology Committee, Deputy General Manager of the Company,
President of the Engineering Research Institute, Vice President and Secretary of the Party Committee of Changan Automobile, Deputy
41
Chongqing Changan Automobile Company Limited 2022 Annual Report
Secretary of the Party Committee of Changan Automobile of China, and President of Changan Automobile.
Mr. Xian Zhigang, Director. Born in 1970, master's degree, senior engineer. Currently, he is the Director of the Strategic
Development Department of the Weapon Equipment Group. He has served as Deputy Factory Director of Precision Machinery Factory
of Changan Company, Factory Director of Special Machinery Factory of Machine Manufacturing Company, Vice President of Changan
Company and Senior Vice General Manager of Machine Manufacturing Company, Deputy General Manager, Deputy Secretary of the
Party Committee, General Manager, Chairman, and Secretary of the Party Committee of Changan Industry, Chairman, Secretary of the
Party Committee, General Manager, and Deputy Secretary of the Party Committee of Chongqing Wangjiang Industry Co., Ltd., and
Director of the Safety and Environmental Protection Department of Ordnance Equipment Group.
Mr. Zhang Bo, Director. Born in 1978, master's degree, senior accountant. Currently, he is the Director of the Finance Department
of the Weapon Equipment Group. He has served as Deputy Director of the Finance Department (Comprehensive Department), Deputy
Director of the Finance Department, and Researcher of the Weapon Equipment Group, Director and Chief Accountant of Chongqing
Wangjiang Industry Co., Ltd., and Deputy Director of the Finance Department of the Weapon Equipment Group.
Mr. Liu Gang, Director. Born in 1966, with a bachelor's degree, he is a senior engineer. Currently, he is the Deputy Chief Engineer
of the Weapon Equipment Group. He has served as the Deputy Director and Director of the Scientific Research Division of the 58th
Research Institute of China's Weapon Industry, the Deputy Director and Director of the 58th Research Institute of China's Weapon
Industry, the Deputy Director of the Southwest Regional Department of the Weapon Equipment Group, the Deputy President of the
China Weapon Equipment Research Institute, the Director of the Science and Technology Quality Department (Information
Department), the Director of the Science and Technology and Information Department, and the Director of the Science and Technology
Quality Network Information Department of the Weapon Equipment Group.
Mr. Zhou Kaiquan, Director. Born in 1973, master's degree, senior engineer. Currently, he is the Chairman and Secretary of the
Party Committee of Changan, China. He has served as the Chairman of Chengdu Qingshan Automobile Trade and Sales Company, the
Deputy General Manager, Director, General Manager, and Deputy Secretary of the Party Committee of Chongqing Qingshan Industry
Co., Ltd., the Director and General Manager of Sichuan Ningjiang Shanchuan Machinery Co., Ltd., the Director and General Manager
of Sichuan Ningjiang Precision Industry Co., Ltd., the Chairman, Secretary of the Party Committee, and General Manager of Southwest
Weapons Co., Ltd., and the Deputy General Manager, General Manager Deputy Secretary of the Party Committee, Vice Chairman,
Secretary of the Party Committee, and President of Changan, China.
Mr. Wang Jun, Director, President, and Deputy Secretary of the Party Committee. Born in 1972, master's degree, senior engineer.
He has served as Vice President of the Automotive Engineering Research Institute and Director of the Product Planning Division of
Changan Company, Manager of the Product Management Division of the Marketing Department of the Sales Co., Ltd., Director, Vice
Minister, and Director of the Product Planning Division of the Marketing Department of the Sales Co., Ltd., Assistant to the President
of Changan Automobile and General Manager of the Sales Co., Ltd., Secretary of the Party Committee, Vice General Manager, and
General Manager of the Commercial Vehicle Business Unit, Executive Vice President of Changan Automobile, Management
Representative of the Integration of Industrialization and Urbanization, Chairman of the Labor Union, and President of Changan
Automobile University.
Mr. Zhang Deyong, Director, Chief Accountant, Secretary of the Board of Directors. Born in 1975, Master of Accounting (MPAcc),
Senior Accountant. He has served as the Deputy Director, Director, and Assistant Director of the Finance Department of the Automation
Research Institute of the Weapon Equipment Group, the Deputy Director of the Finance Department of the Weapon Equipment Group
(on a temporary basis), the Director, Chief Accountant, and Member of the Party Committee of Chongqing Changjiang Electric Co.,
Ltd., the Deputy Director of the Finance Department of the Weapon Equipment Group (on a temporary basis), the Director, Chief
Accountant, and Member of the Party Committee of Changan Industry, and the Executive Vice President of Changan Automobile.
Mr. Ren Xiaochang, independent director. Born in 1956, with a bachelor's degree. Currently, he is a member of the Second National
Expert Advisory Committee on the Development of Strategic Emerging Industries, an expert in the high-tech expert group of China
International Engineering Consulting Corporation, a science and technology expert in the Chinese machinery industry, an expert on
special allowances from the State Council, and an expert on the evaluation of the National Science and Technology Award; He is also
an independent director of Lifan Technology (601777), Chongqing Electromechanical (02722), and Zongshen Power (001696). The
science and technology projects he is leading and participating in have won three second and third prizes of the provincial and
ministerial level science and technology progress awards. He served as Chairman and General Manager (President) of China
Automotive Engineering Research Institute Co., Ltd.
Mr. Wei Xinjiang, independent director. Born in 1969, Ph.D., researcher. Currently, he is the Deputy General Manager of the
Development Planning Department of China Life Pension Insurance Co., Ltd., a senior researcher at the China Life Financial Research
Institute, and an arbitrator at the Shenzhen International Arbitration Court; He is also a part-time professor and postgraduate supervisor
at the School of Finance and Finance of Renmin University of China, the School of International Business and Economics of the
University of International Business and Economics, and the Netherlands Business School. He is good at international business
operations, overseas mergers and acquisitions, capital market operations, etc. He has rich research in finance, insurance, overseas
investment, comprehensive finance, and other fields. He has published nearly 160 papers and 8 monographs in important international
and domestic journals. He has been engaged in teaching and research for 13 years in the Department of International Investment at the
China University of Finance and the School of Finance at the University of International Business and Economics.
Mr. Cao Xingquan, independent director. Born in 1971, Doctor of Laws. Currently, he is a professor at the School of Civil and
Commercial Law of Southwest University of Political Science and Law and a doctoral supervisor in the field of civil and commercial
law and commercial law; He also serves as the executive director of the Research Societies of Commercial Law and Insurance Law of
the Chinese Law Society, and as an arbitrator of arbitration institutions in Chongqing, Zunyi, and other places. He has 21 years of
teaching and research experience in civil and commercial law, including 18 years of teaching at Southwest University of Political
Science and Law, focusing on research in commercial law, company law, securities law, and insurance law. He has presided over or
participated in more than 20 scientific research projects, published more than 60 legal academic papers, and published academic works
and participated in the compilation of more than 10 teaching materials. He once served as Deputy Chief Judge of the Fourth Civil Trial
42
Chongqing Changan Automobile Company Limited 2022 Annual Report
Division of the First Intermediate People's Court of Chongqing and a member of the Civil Administrative Procuratorial Expert
Committee of the Chongqing People's Procuratorate.
Mr. Yang Xinmin, independent director. Born in 1960, Ph.D. Currently, he is a professor at the School of Mathematical Sciences
of Chongqing Normal University, the supervisor of the China Operations Research Society, the vice chairman of the China Industrial
and Applied Mathematics Association, the director of the Chongqing National Applied Mathematics Center, and the deputy director of
the National Tianyuan Mathematics Southwest Center. Mainly engaged in systematic research in the field of operations research
(mathematics). In 2012, he was awarded the National Excellent Scientific and Technological Worker, in 2014, he was awarded the
National Outstanding Professional and Technical Talent, and in 2016, he was elected an academician of the International Academy of
Systems and Control Sciences. He has presided over more than 10 National Natural Science Foundation projects, including 1 major
project, 2 key projects, and 1 international (regional) project. He has won the second prize of the National Natural Science Award, the
first prize of the Ministry of Education's Natural Science Award, and the highest science and technology outstanding contribution award
in Chongqing. He has served as Vice President of the Chinese Mathematical Society, Vice President of the Chinese Operational
Research Society, and Vice President of the Chinese Society of Systems Engineering.
Mr. Li Keqiang, independent director. Born in 1963, Ph.D. in automotive engineering. He is currently a professor and doctoral
supervisor of the School of Vehicle and Transportation of Tsinghua University, director of the State Key Laboratory of Automotive
Safety and Energy Conservation (Tsinghua University), and an academician of the CAE Member; He also serves as an independent
director of Yutong Bus (600666), Siwei Tuxin (002405), China Auto Research (601965), and Gaohong Co., Ltd. (000851). He was the
dean of the Department of Automotive Engineering at Tsinghua University.
Mr. Ding Wei is an independent director. Born in 1960, Bachelor of Finance. Currently, he is the founder and chairman of Xiamen
Borun Capital Investment Management Co., Ltd; He is also an independent director of Guotai Jun'an (601211) and Hengsheng
Electronics (600570). He has accumulated rich experience and network resources in the fields of macroeconomic, commercial banking,
investment banking, and private equity investment. He has served as an economist and department head of the World Bank and the
International Monetary Fund, President of Deutsche Bank in China, Chairman of the Investment Banking Management Committee and
Head of the Investment Banking Department of China International Finance Corporation, Member of the Global Senior Management
Committee of Temasek, Member of the Global Investment Decision Committee, President of China, President and Chairman of CICC
Capital Operations Co., Ltd, Independent non-executive director of Shenzhou Car Rental Co., Ltd.
Mr. Tang Guliang, independent director. Born in 1962, Doctor of Finance. Currently, he is a professor of finance at the International
Business School of the University of International Business and Economics; He also serves as an independent director of Guangfeng
Technology (688007) and Fosun Pharmaceutical (600196). He is mainly engaged in the teaching and research of management
accounting and financial management, and has made unique and influential achievements in budget management, group control,
performance evaluation, financial strategy, capital operation, and other aspects. Currently, he has published 4 monographs and 40 books,
and over 120 papers in high-end academic journals such as Accounting Review TAR and Management World. He has served as an
independent director of Jiangsu Wuzhong (600200), China Satellite (600118), Seagull Sanitary Ware (002084), Oceanwide Holdings
(000046), Minmetals Development (600058), Changjiang Securities (000783), and other companies.
Mr. Zhang Ying, independent director. Born in 1978, with a PhD in management. Currently, he is a Distinguished Professor of
Boya at Peking University, Deputy Dean of Guanghua School of Management, Director of the Peking University Management Case
Study Center, and Senior Researcher of the China Management Research Center at Cambridge University in the United Kingdom; He
is also an independent director of China Film (600977). Research focuses on the intersection of psychology and economics, specializing
in using experimental and data methods to study how individual behavioral decisions and social attitudes affect corporate strategy and
policy making. Awarded the Outstanding Young Scholar Award of the American Academy of Marketing Sciences, and the "Global Top
Marketing Scholar" Award of the American Marketing Association. He has been selected as one of the National Youth Top Talents of
the Organization Department of the Central Committee of the Communist Party of China, awarded the National Natural Science
Foundation for Distinguished Young Scholars, and won the "Four First Batch" talent of the Propaganda Department of the Central
Committee of the Communist Party of China. He once taught at the University of Texas and served as an independent director of
Dashang Shares (600694).
2. Supervisors
Mr. Lian Jian, Chairman of the Supervisory Board. Born in 1963, master's degree, senior engineer. Currently, he is a senior
professional in the Southwest Regional Department of Weapon Equipment Group. He has served as Deputy Director, Deputy Chief
Engineer, Chief Engineer, Factory Director, Deputy Secretary of the Party Committee, Secretary of the Party Committee, General
Manager, and Vice Chairman of the Technology Department of Sichuan Changqing Machinery Factory, Director, Secretary of the Party
Committee, and Chairman of the Labor Union of Chongqing Hongyu Precision Industry Co., Ltd., Deputy Secretary of the Party
Committee and Secretary of the Discipline Inspection Commission of the Southwest Regional Department of the Weapon Equipment
Group, Deputy Secretary of the Party Committee, Secretary of the Discipline Inspection Commission, and Senior Special Agent of the
Southwest Regional Department (Motorcycle Department) of the Weapon Equipment Group, Chairman and Secretary of the Party
Committee of Chongqing Huxi Electric Machinery Industry Co., Ltd., Senior Executive of the Southwest Division of the Weapon
Equipment Group.
Mr. Sun Dahong, Supervisor. Born in 1966, master's degree, senior economist. Currently, he is the Deputy Director and Senior
Professional of the Audit Risk Control and Legal Department of the Weapon Equipment Group. He has served as the Deputy Director
of the Legal Department of the General Office of the Weapon Equipment Group, the Deputy Director and Director of the Legal Advisory
Office, the Director of the Legal Affairs Department, the Director of the Security and Confidentiality Bureau, the Deputy Director of
the Office, and the Deputy Director of the Legal Department.
Mr. Shi Shengwei, Employee Supervisor. Born in 1971, bachelor’s degree, political engineer. Currently, he is the Discipline
Inspection Officer of the Supervision Division of Changan Automobile Discipline Inspection Department. He has served as a workshop
group and machining worker in Changan Company, a mechanic in the first machining section of the Engine Branch, a publicity officer
and office director of the Party-Masses Studio of the Comprehensive Management Division of the Fourth Factory, a director of the
43
Chongqing Changan Automobile Company Limited 2022 Annual Report
Party-Masses Studio of the Comprehensive Management Division of Changan Automobile Jiangbei Engine Factory, a discipline
inspection and supervision officer of the Discipline Inspection Division of the Discipline Inspection and Supervision Department, and
a manager of the Changan Mazda Integrity Employment Office.
Ms. Luo Yan, employee supervisor. Born in 1974, bachelor’s degree, assistant economist. Currently, he is the director of the
Jiangbei Branch of the Shared Service Center of Changan Automobile Human Resources Department. He has served as a maintenance
electrician, engineering surveyor, labor technology quota officer, and planner in Workshop 232 of the Third Factory of Changan
Company, as well as the director of the Employee Welfare Office of the Salary Management Office of the Human Resources Department
of Changan Automobile, and the director of the Third Office of Salary and Welfare Management.
3. Senior Management other than Directors and Supervisors
Mr. Yuan Mingxue, Deputy Secretary of the Party Committee, Chairman of the Labor Union, and Director of the Changan
Learning Center. Born in 1968, master's degree, senior engineer. He has served as Deputy Director and Minister of the Quality
Department of Changan Company, General Manager and Secretary of the Party Committee of Nanjing Changan Automobile Co., Ltd.,
Assistant to the President of Changan Automobile Co., Ltd., Executive Vice President of Jiangling Holding Co., Ltd., Director of the
Strategic Planning Department, Secretary of the Party Branch, Director of the Capital Operation Department of Changan Automobile
Co., Ltd., General Manager and Secretary of the Party Branch of the Overseas Business Development Department, Vice President and
Executive Vice President of Changan Automobile Co., Ltd.
Mr. Pu Xingchuan, Secretary of the Discipline Inspection Commission. Born in 1971, master's degree, senior economist. He has
served as Deputy Secretary of the Party Committee, Secretary of the Discipline Inspection Commission, and Chairman of the Labor
Union of Chongqing Qingshan Industry Co., Ltd., Director of the Office of the Southwest Military Industry Bureau, Secretary of the
Party Committee, Secretary of the Discipline Inspection Commission, and Chairman of the Labor Union of Southwest Ordnance
Industry Co., Ltd., Director, General Manager, and Deputy Secretary of the Party Committee of Wanyou Automobile Investment Co.,
Ltd., and Chairman and Secretary of the Party Committee of Southwest Ordnance Industry Co., Ltd.
Mr. Tan Benhong, Executive Vice President, CEO of Avatr Technology (Chongqing) Co., Ltd. Born in 1975, master's degree,
engineer. He has served as the Director of the Technical Planning Research Institute of the Automobile Engineering Research Institute
of Changan Company, the Deputy Chief Engineer and Director of the Technical Planning Research Institute of the Automobile
Engineering Research Institute, the Vice President of the Changan Automobile Engineering Research Institute, the President of the
Beijing Research Institute, the Director of the Marketing Department, the Director of the Brand Public Relations Department, the
Director of the Product Planning Department, the Executive Vice President of the Changan Automobile Research Institute, the
Secretary of the Party Committee, the Company's Press Spokesperson, and the General Manager of the Design Institute.
Mr. Ye Pei, Executive Vice President, Director of Passenger Car Operation Management Committee, and Director of Auchan
Operation Management Committee. Born in 1975, master's degree, engineer. He has served as Assistant General Manager of Nanjing
Changan, Deputy Director of the Quality Department of Changan Automobile, Deputy Director of the Company's Office, General
Manager and Secretary of the Party Committee of Nanjing Changan Automobile, Deputy General Manager of the Commercial Vehicle
Business Unit, Assistant President of the Company, Director of the Strategic Planning Department, Secretary of the Party Branch,
General Manager and Secretary of the Party Committee of the Car Sales Business Unit, General Manager and Secretary of the Party
Committee of the Passenger Vehicle Marketing Business Unit, and Vice President of Changan Automobile.
Mr. Chen Wei, Executive Vice President, General Counsel of the Company, Deputy Director of Passenger Car Operation
Management Committee, and Deputy Director of Auchan Operation Management Committee. Born in 1972, bachelor's degree, political
engineer. He has served as Deputy Factory Director, Factory Director, and Secretary of the Party Committee of Changan Automobile
Manufacturing Factory, Vice President of Personnel and Secretary of the Discipline Inspection Commission of Changan Ford, Director
of the Logistics Department of Changan Automobile Manufacturing, Secretary of the Party Branch, and OTD Project Director of the
company, General Manager and Secretary of the Party Committee of Beijing Changan Automobile Company, Director of the
Construction Project of Beijing Research Institute, Secretary of the Party Committee of Chongqing Lingyao Automobile Co., Ltd., and
Vice President of Changan Automobile.
Mr. Li Mingcai, Executive Vice President and Management Representative of the Integration of Industrialization and Urbanization.
Born in 1981, with a master's degree. He has served as General Manager Assistant and Sales Regional Manager of Changan
Automobile's Overseas Business Development Department, Deputy General Manager of Overseas Business Development Department,
General Manager of International Companies, Executive Deputy General Manager of Overseas Business Development Department,
Project Director of Russian JV, Manager of Brazil Project Team, General Manager of Overseas Business Department, and Vice
President of Changan Automobile.
Mr. Yang Dayong, Executive Vice President, Executive Vice President of Changan Ford, and Secretary of the Party Committee.
Born in 1974, bachelor’s degree. He has served as Vice Minister of Changan Automobile Marketing Department, Vice Minister and
Minister of Commercial Vehicle Business Management Department, Director of Brand Public Relations Department, Secretary of
Party Branch, Company Press Spokesperson, Senior Project Director of High-end Vehicle Brand Project Team, Senior Project Director
of Intelligent Industry Development Project Team, General Manager and Secretary of Party Committee of Changan New Energy, and
Vice President of Changan Automobile.
Mr. Peng Tao, Executive Vice President, Director of the Light Vehicle Operations Management Committee. Born in 1978,
bachelor’s degree, senior engineer. He has served as Vice Minister, Executive Vice General Manager, and Secretary of the Party Branch
of Changan Automobile Product Planning Department, Executive Vice General Manager, General Manager, and Secretary of the Party
Committee of the Passenger Vehicle Marketing Division, and Vice President of Changan Automobile.
Mr. Zhang Xiaoyu, Vice President, General Manager of Changan Prospective Technology Research Institute, Chairman of the
Association for Science and Technology of the Company, and Director of the National Key Laboratory of Intelligent Vehicle Safety
Technology. Born in 1979, Ph.D., senior engineer. He has served as the Deputy General Manager and General Manager of the British
R&D Center of Changan Automotive Power Research Institute, the Deputy General Manager of the Power Research Institute, the
Company's H13T Project Director, the NE Series Powertrain Project Director, the General Manager of the Power Research Institute,
44
Chongqing Changan Automobile Company Limited 2022 Annual Report
and the General Manager of the Second Product Development Department.
Mr. Wang Xiaofei, Vice President. Born in 1982, bachelor’s degree, engineer. He used to be the Deputy Director of the Product
Department of Changan Commercial Vehicle Business Unit, the Deputy Director of the Product Department of Auchan Automotive
Business Unit, the Deputy General Manager and Product Marketing Director of Passenger Vehicle Marketing Business Unit, the
Deputy General Manager of Product Planning Department, and the General Manager of Auchan Automotive Business Unit.
Mr. Wang Hui, Vice President. Born in 1981, bachelor’s degree, engineer. He has served as the director of the new business
coordination project team of Changan Automobile, the company's office director and party branch secretary, the executive vice
president and party committee secretary of Changan Mazda Engine, the person in charge of the new energy cooperation project of
Changan Mazda, the executive vice president and party committee secretary of Changan Mazda, and the general manager of the
overseas business development department.
Mr. Zhang Fatao, Vice President and Director of Safety Production of the Company. Born in 1982, bachelor’s degree, assistant
engineer. He has served as Deputy Director of the Office of Changan Automobile Company, General Manager of the Technology and
Project Management Department, Secretary of the Party Branch, Executive Vice Chairman of the Association for Science and
Technology, PDS Project Director, Director of the Company's Office, Secretary of the Party Branch, Director of the Party Committee
Office, Director of the Board Office, General Manager of the Human Resources Department, Director of the Party Committee
Organization Department, and Director of the Talent Management Department of Changan Learning Center.
Ms. Li Jun, Secretary of the Board of Directors and Senior Expert of the Board Office. Born in 1969, Master of Business
Administration, Senior Accountant. He has served as the Deputy Director and Director of the Securities Division of the Finance
Department of Changan Automobile, the Director of the Capital Operations Division of the Finance Department, the Director of the
Board of Directors Office, the Deputy Director of the Finance Department, and the Deputy General Manager of the Capital Operations
Department.
Employment in shareholders’ work unit
√Applicable □ Not applicable
Whether having
renumeration or
Name of shareholders’ work Position in shareholders’ work Term start Term end
Name allowance in
unit unit date date
shareholders’ work
unit
Assistant General Manager of
China South Industries Group
China South Industries Group Co.,
Zhu Huarong Co., Ltd. and China Changan N
Ltd. and the director of China
Automobile Group Co., Ltd.
Changan
China South Industries Group Director of the Strategic
Xian Zhigang Y
Co., Ltd. Development Department
China South Industries Group
Zhang Bo Director of Finance Department Y
Co., Ltd.
China South Industries Group
Liu Gang Vice Chief Engineer of CSG Y
Co., Ltd.
China Changan Automobile Chairman and Secretary of the
Zhou Kaiquan Y
Group Co., Ltd Party Committee
China South Industries Group Senior Professional of Southwest
Lian Jian Y
Co., Ltd. Regional Department
Deputy Director and Senior
China South Industries Group
Sun Dahong Executive of Audit Risk Control Y
Co., Ltd.
and Legal Department
Position in
None
other work unit
Employment status in other units
√Applicable □ is not applicable
Term Whether get
Name of other Term
Name Position in other work units start allowance in
work units end date
date other work unit
China Life Deputy General Manager of Development Planning
Wei Xinjiang Insurance Co., Department of China Life Insurance Co., Ltd., Senior Y
Ltd. Researcher of China Life Financial Research Institute
Southwest
Professor of the School of Civil and Commercial Law of
University of
Cao Xingquan Southwest University of Political Science and Law, and a Y
Political Science
doctoral tutor in the direction of civil and commercial law
& Law
Professor of the School of Mathematical Sciences of
Chongqing
Chongqing Normal University, Chairman of the China
Yang Xinmin Normal Y
Association for Operational Research, Vice Chairman of
University
the China Association for Industry and Applied
45
Chongqing Changan Automobile Company Limited 2022 Annual Report
Mathematics, Director of the Chongqing National Center
for Applied Mathematics, Vice Director of the National
Tianyuan Mathematics Southwest Center, the first batch of
members of the China Association for Industry and
Applied Mathematics, and members of the China
Association for Operational Research
Professor and doctoral supervisor of the School of Vehicle
Tsinghua and Transportation of Tsinghua University, director of the
Li Keqiang Y
University State Key Laboratory of Automotive Safety and Energy
Conservation (Tsinghua University)
Xiamen Borun
Capital
Founder and Chairman of Xiamen Borun Capital
Ding Wei Investment Y
Investment Management Co., Ltd.
Management Co.,
Ltd
Professor, Department of Finance, International Business
School, University of International Business and
University of
Economics, contributing editor and reviewer of
International
Tang Guliang "Accounting Research", deputy editor of "China Y
Business and
Management Accounting", management accounting
Economics
consulting expert from the Ministry of Finance, member of
the CIMA Research Committee in the United Kingdom
Distinguished Professor Boya of Peking University, Vice
Dean of Guanghua School of Management, Director of
Peking University Management Case Study Center, Senior
Zhang Ying Peking University Researcher of China Management Research Center at Y
Cambridge University, UK, Professional Editor in Chief of
Chinese Journal of Management Science and Executive
Vice Editor of Chinese Journal of Marketing Science
Position in
None
other work unit
Securities regulator’s punishment to the current and former directors, supervisors and senior management during the
reporting period in recent three years.
□ Applicable √ Not applicable
3. Remuneration of directors, supervisors and senior management personnel
Decision-making process, basis, the actual payment of remuneration for directors, supervisors and senior management
personnel
Decision-making process: the annual remuneration of the company's directors, supervisors, and senior executives, except for
independent directors, is issued in accordance with the relevant remuneration management regulations and standards of the company
and based on the achievement of performance targets, submitted to the company's board of directors for approval before distribution.
The basis: the senior management evaluation is divided into annual appraisal and term assessment. The salary of employee
supervisors shall be paid by position in accordance with the company's salary system. Payment of company independent directors is
prescribed by the board of directors and submitted to the board of directors of the company, and approved by the shareholders' general
meeting.
Actual payments: Since June 2022, Mr. Li Keqiang, an independent director, has voluntarily waived receiving allowances, and
other independent directors are paid according to the allowance standards. In 2022, directors, supervisors and senior executives who
receive remuneration from the company had a total of RMB 29.1927 million yuan in remuneration payable.
Remuneration of Directors, Supervisors and Senior Management Personnel during the reporting period
Unit: RMB
Whether
Total pre-tax
remunerated by
Name Position Gender Age Office status remuneration from
related-parties of
the Company
the company
Chairman, Secretary
Zhu Huarong of the Party M 57 Incumbent 2,509,457 N
Committee
Xian Zhigang Director M 52 Incumbent Y
Zhang Bo Director M 44 Incumbent Y
Liu Gang Director M 56 Incumbent Y
Zhou Kaiquan Director M 50 Incumbent Y
Director, President,
Wang Jun M 50 Incumbent 2,492,281 N
Deputy Secretary of
46
Chongqing Changan Automobile Company Limited 2022 Annual Report
the Party Committee
Director, Chief
Zhang Deyong accountant, Secretary M 48 Incumbent 1,995,683 N
of BOD
Ren Xiaochang Independent Director M 66 Incumbent 120,000 N
Wei Xinjiang Independent Director M 54 Incumbent 120,000 N
Cao Xingquan Independent Director M 51 Incumbent 120,000 N
Yang Xinmin Independent Director M 62 Incumbent 120,000 N
Li Keqiang Independent Director M 59 Incumbent N
Ding Wei Independent Director M 62 Incumbent 60,000 N
Tang Guliang Independent Director M 60 Incumbent 60,000 N
Zhang Ying Independent Director M 44 Incumbent 60,000 N
Chairman of the
Lian Jian M 59 Incumbent Y
Board of Supervisors
Sun Dahong Supervisor M 56 Incumbent Y
Shi Shengwei Employee Supervisor M 51 Incumbent 309,463 Y
Luo Yan Employee Supervisor F 48 Incumbent 337,687 N
Deputy Secretary of
Yuan Mingxue M 53 Incumbent 2,129,659 N
the Party Committee
Executive Vice
Tan Benhong M 47 Incumbent 1,988,446 N
President
Executive Vice
Ye Pei M 47 Incumbent 2,046,423 N
President
Executive Vice
Chen Wei M 50 Incumbent 2,125,206 N
President
Executive Vice
Li Mingcai M 41 Incumbent 1,989,156 N
President
Executive Vice
Yang Dayong M 48 Incumbent 1,165,307 N
President
Executive Vice
Peng Tao M 45 Incumbent 1,148,900 N
President
Zhang Xiaoyu Vice President M 43 Incumbent 605,968 N
Wang Xiaofei Vice President M 40 Incumbent 605,968 N
Wang Hui Vice President M 41 Incumbent 110,176 N
Secretary of the Incumbent
Li Jun F 53 874,540 N
BOD
Executive Vice
Li Wei M 56 Outgoing N
President
Liu Jipeng Independent Director M 66 Outgoing 60,000 N
Li Qingwen Independent Director M 67 Outgoing 60,000 N
Chen Quanshi Independent Director M 77 Outgoing 60,000 N
Tan Xiaosheng Independent Director M 52 Outgoing 60,000 N
Ye Wenhua Director M 50 Outgoing Y
Executive Vice
He Chaobing M 55 Outgoing 1,941,342 N
President
Executive Vice
Zhao Fei M 48 Outgoing 1,873,027 N
President
Secretary for
Hua Zhanbiao M 55 Outgoing 2,044,038 N
Discipline Inspection
Total -- -- -- -- 29,192,727 --
VI. Performance of Directors during the reporting period
1. Board of Directors in the reporting period
Meeting Date of convening Disclosure date Meeting resolution
47
Chongqing Changan Automobile Company Limited 2022 Annual Report
The 32nd meeting of the 8th Session Please refer to the Resolution of the 32th Meeting of the
January 12, 2022 January 13, 2022
of Board of Directors 8th Board of Directors (No: Announcement 2022-02)
The 33rd meeting of the 8th Session Please refer to the resolution of the 33th Meeting of the
January 18, 2022 January 19, 2022
of Board of Directors 8th Board of Directors (Announcement No: 2022-05)
The 34th meeting of the 8th Session Please refer to the Resolution of the 34th Meeting of the
January 28, 2022 February 8, 2022
of Board of Directors 8th Board of Directors (Announcement No: 2022-07)
The 35th meeting of the 8th Session Please refer to the Resolution of the 35th Meeting of the
February 21, 2022 February 23, 2022
of Board of Directors 8th Board of Directors (Announcement No: 2022-09)
The 36th meeting of the 8th Session
March 2, 2022 No disclosable matters involved
of Board of Directors
The 37th meeting of the8th Session
March 21, 2022 No disclosable matters involved
of Board of Directors
The 38th meeting of the 8th Session Please refer to the Resolution of the 38th Meeting of the
April 26, 2022 April 28, 2022
of Board of Directors 8th Board of Directors (Announcement No: 2022-18)
The 39th meeting of the 8th Session Please refer to the Resolution of the 39th Meeting of the
April 28, 2022 April 29,2022
of Board of Directors 8th Board of Directors (Announcement No: 2022-26)
The 40th meeting of the 8th Session Please refer to the Resolution of the 40th Meeting of the
May 20, 2022 May 21,2022
of Board of Directors 8th Board of Directors (Announcement No: 2022-32)
The 41st meeting of the 8th Session
June 2, 2022 No disclosable matters involved
of Board of Directors
Please refer to the Resolution of the 42th Meeting of the
The 42nd Meeting of the 8th Session
July 8, 2022 July 9, 2022 Eighth Board of Directors (Announcement No.: 2022-
of Board of Directors
47)
The 43rd meeting of the 8th Session Please refer to the Resolution of the 43st Meeting of the
August ,2,2022 August 3, 2022
of Board of Directors 8th Board of Directors (Announcement No: 2022-54)
The 44th meeting of the 8th Session Please refer to the Resolution of the 44th Meeting of the
August 30, 2022 August 31,2022
of Board of Directors 8th Board of Directors (Announcement No: 2022-64)
The 45th meeting of the 8th Session September Please refer to the Resolution of the 45rd Meeting of the
September 23,2022
of Board of Directors 22,2022 8th Board of Directors (Announcement No: 2022-68)
The 46th meeting of the 8th Session September 29,
No disclosable matters involved
of Board of Directors 2022
The 47th meeting of the 8th Session
October 18, 2022 No disclosable matters involved
of Board of Directors
The 48th meeting of the 8th Session Please refer to the Resolution of the 48rd Meeting of the
October 28, 2022 October 31,2022
of Board of Directors 8th Board of Directors (Announcement No: 2022-71)
The 49th meeting of the 8th Session Please refer to the Resolution of the 49rd Meeting of the
December 2, 2022 December 3, 2022
of Board of Directors 8th Board of Directors (Announcement No: 2022-77)
The 50th meeting of the 8th Session December 28, Please refer to the Resolution of the 50th Meeting of the
December 29, 2022
of Board of Directors 2022 8th Board of Directors (Announcement No: 2022-83)
2. Attendance of directors at the board of directors and shareholders’ meeting
Attendance at BOD meetings and shareholders' meeting
Number of BOD Absent from
Number of
meetings that Attendance by meetings for Attendance at
BOD meeting Attendance
Name should be means of Absence two shareholders’
attendance at by proxy
attended in this communication consecutive meetings
spot
reporting period times
Zhu Huarong 19 2 17 0 NO 5
Xian Zhigang 8 0 7 1 NO 0
Zhang Bo 19 1 17 1 NO 2
Liu Gang 19 2 17 0 NO 4
Ye Wenhua 5 0 4 1 NO 0
Zhou Kaiquan 19 0 17 2 NO 1
Wang Jun 19 1 17 1 NO 3
Zhang Deyong 19 2 17 0 NO 4
Liu Jipeng 10 1 9 0 NO 0
48
Chongqing Changan Automobile Company Limited 2022 Annual Report
Li Qingwen 10 1 9 0 NO 0
Chen Quanshi 10 1 9 0 NO 0
Ren Xiaochang 19 2 17 0 NO 4
Tan Xiaosheng 10 1 9 0 NO 0
Wei Xinjiang 19 2 17 0 NO 4
Cao Xingquan 19 2 17 0 NO 4
Yang Xinmin 19 2 17 0 NO 4
Li Keqiang 9 1 8 0 NO 2
Ding Wei 9 1 8 0 NO 1
Tang Guliang 9 1 8 0 NO 3
Zhang Ying 9 0 8 1 NO 3
Explanation of the members of the Board who failed to attend Board meetings in person for two consecutive times
Not applicable
3. The directors’ objections to the relevant matters of the company
Disagreement of the directors on matters related to the Company
□Yes √ No
During the reporting period, the directors did not raise objections to the relevant matters of the company.
4. Other statement of the directors performance of duties
Whether the directors' suggestions on the company are adopted
√Yes □ No
Description of the directors on the adoption or non-adoption of relevant suggestions of the company
During the reporting period, the directors of the company performed their duties and obligations diligently and conscientiously in
strict accordance with the relevant provisions of the Company Law and the Articles of Association, actively attended the board of
directors and shareholders' general meetings, carefully deliberated various proposals, and put forward valuable professional opinions
on the company's system improvement and daily business decision-making, effectively improving the company's standardized
operation and scientific decision-making level. In addition, the independent directors of the company have issued independent and
impartial independent opinions on matters such as the company's nomination of directors, the appointment of senior management, the
annual profit distribution, the self-evaluation report of internal control, the annual daily related party transaction estimate, the deposit
and use of raised funds, and the restricted stock incentive plan, which effectively protects the legitimate rights and interests of the
company and the majority of investors, especially small and medium-sized investors, and the company actively listens to and adopts
the reasonable suggestions put forward by the directors.
VII. Duty Performance of Specialized Committees of the Board of Directors during the Report
Period
Important
Number comments
Other Specific
Committee of Date of and
Members Meeting content performance objection
name meetings convening suggestions
of duties (if any)
held that are
made
Internal audit work plan for 2022; All the
March Report on Audit and Inspection Work in motions
Liu Jipeng,
2nd, 2022 the Fourth Quarter of 2021 were passed
Wei
Audit unanimously
Xinjiang, 4
Committee Financial and accounting statements All the
Zhang April
prepared by the company motions
Deyong 19th,
were passed
2022
unanimously
49
Chongqing Changan Automobile Company Limited 2022 Annual Report
Financial statements for 2021 (after All the
April
audit); 2021 Annual Audit Results and motions
26th,
Communication Report on Important were passed
2022
Matters unanimously
2021 Annual Internal Control Audit
Report; Proposal for self-evaluation
report on internal control in 2021; All the
March Proposal on the appointment of auditors motions
2nd, 2022 for the 2022 financial report and were passed
internal control report; Work plan for unanimously
the second quarter of 2022 and internal
audit report for the first quarter
Report on Audit Work for the Half Year All the
September of 2022 motions
2nd, 2022 were passed
Tang unanimously
Guliang, Report on audit work in the third quarter All the
October
Wei of 2022; Report on Adjusting Audit motions
3 28th,
Xinjiang, Fees for 2022 Financial Report were passed
2022
Zhang unanimously
Deyong 2022 Overall Audit Plan and Relevant All the
December
Audit Requirements motions
30th,
were passed
2022
unanimously
Compensation Zhang Proposal on Adjusting the Repurchase All the
and Ying, Wei August Price of the A-share Restricted Stock motions
1
Assessment Xinjiang, 2nd, 2022 Incentive Plan and Repurchase and were passed
Committee Ding Wei Cancellation of Some Restricted Stocks unanimously
Proposal on Jointly Establishing All the
January
Chongqing Changan Venture Private motions
12nd,
Equity Investment Fund Partnership were passed
2022
(Limited Partnership) (Tentative Name) unanimously
Proposal on Capital Increase and Share All the
January
Expansion of Associated Enterprises motions
18th,
through Public Listing were passed
2022
unanimously
Proposal on Investment Plan for 2022;
Proposal on the 2022 financing plan; All the
February Proposal on developing bill pool motions
21st, 2022 business; Proposal on the Company and were passed
Zhu its subsidiaries to carry out forward unanimously
The Strategic
Huarong, foreign exchange transactions
and
Wang Jun, 7 Description of financial final accounts All the
Investment April
Ren for 2021 and financial budget for 2022; motions
Committee 26th,
Xiaochang Proposal on Adjusting and Changing were passed
2022
the Use of Some Raised Funds unanimously
Proposal on Disposal of Equipment and All the
April
Assets in Dashiba and Tea Garden motions
28th,
Plants were passed
2022
unanimously
Proposal on signing a "Financial
Service Agreement" with Ordnance
All the
Equipment Group Finance Co., Ltd;
May 20th, motions
Proposal on Signing a Financial Service
2022 were passed
Agreement with Changan Automobile
unanimously
Finance Co., Ltd; Proposal on Asset
Disposal and Signing of Collection and
50
Chongqing Changan Automobile Company Limited 2022 Annual Report
Storage Agreement in Tea Garden Plant
Area
Proposal on Investment in Yubei All the
July 8th, Factory Replacement and Green motions
2022 Intelligent Upgrade Construction were passed
Project unanimously
Proposal on Increasing Capital to All the
August Associated Enterprises motions
2nd, 2022 were passed
Zhu
unanimously
Huarong,
Proposal on Joint-stock Establishment All the
Zhang Bo, September
of Intelligent Driving Company motions
Wang Jun, 3 22nd,
were passed
Ren 2022
unanimously
Xiaochang,
Proposal on Acquisition of Partial All the
Li Keqiang
December Equity of Changan New Energy motions
2nd, 2022 were passed
unanimously
VIII. The work of the board of supervisors
Whether the company was at risk during the report period according to the supervision of the board of supervisors
□Yes √ No
The Board of Supervisors supervised and inspected the legal compliance of the company's financial situation, measurement of
managing major affairs of the company, operation and management activities, and the implementation of major strategies. The Board
of Supervisors has no objection to the supervision matters during the reporting period.
IX. The Employees of the Company
1. The number of employees, professional field and education level
Number of incumbent employees in the parent company 31,223
Number of incumbent employees in major subsidiaries 11,671
Total number of incumbent employees 42,894
Total number of incumbent salaried employees 42,894
Number of retired employees for whom parent company and major
2,901
subsidiary bear the costs
Professional composition
Professional fields Number
Production 27,115
Sales 2,002
Technology 9,464
Finance 483
Administration 545
Management 3,285
Total 42,894
Educational Background
Degree Number
PhD 113
Postgraduate 2,573
Bachelor 12,470
Junior college 11,200
Technical secondary school and high school 14,730
Middle school and below 1,808
Total 42,894
2. Compensation policy
The company actively deepens the reform of the distribution system, continuously optimizes and improves the salary system;
51
Chongqing Changan Automobile Company Limited 2022 Annual Report
Adhere to the efficiency oriented principle, establish a payroll/labor cost generation mechanism, improve distribution efficiency,
strengthen performance and salary benchmarking, and guide units to continuously improve labor productivity and human resource
value creativity; Constantly establish and improve the medium and long-term incentive and constraint mechanism, closely bind the
core interests of the backbone with the company's medium and long-term operations, support the company's strategic development,
and promote the continuous improvement of the company's operating performance.
3. Training plan
Company staff training in 2023 will be guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era
and principles of the spirit of the 20th National Congress of the Communist Party of China, centering around the Third Business
Venture-Innovation and Entrepreneurship Program. Taking “firm strategy, steady and courageous progress, innovative development,
and commitment to achieving goals” as the key, through talent cultivation at all levels, in-depth internal talent transformation work is
carried out, accelerating the construction of new knowledge and new capabilities for all employees, and comprehensively promoting
the transformation of the company into an intelligent low-carbon travel technology company.
4. Outsourcing of services
□ Applicable √ Not applicable
X. Distribution of profits and capital reserve
The formulation, implementation or adjustment of profit distribution policies, especially the formulation, implementation or the
adjustment situation of cash dividend policy.
√ Applicable □Not applicable
According to the China Securities Regulatory Commission requirements, the Notice on Further Implementing Matters concerning
Cash Dividends of Listed Companies as issued by the CSRC, the Guideline No. 3 for the Supervision of Listed Companies—Cash
Dividends of Listed Companies, in combination with the practical situation of the company, the Company has rectified the “Articles
of Association” and clarified the distributable profit caliber, dividend distribution means, principle, form, cash dividend conditions and
proportion, stock dividend condition, plan making and review procedures, the implementation, the conditions of distribution policy
adjustment, and decision-making procedures, etc, to strengthen the supervision of independent directors in the profit distribution plan,
policy adjustment, and strengthen the institutional guarantee of the dividend for investors. For details of the company’s specific
distribution policy, please refer to the Articles of Association. Company’s reported profit distribution plan and equity shares in line
with the relevant provisions of the Articles of Association and relevant provisions.
Special statement for cash dividend policy
Whether it comply with the Articles of Association or the resolutions of the shareholders'
Yes
general meeting:
Are the standard and the proportion of distribution clear: Yes
Are the related decision-making process and mechanism thorough: Yes
Have independent directors fulfilled their duties and performed
Yes
their due roles:
Whether medium and minority shareholders have the chance to fully express their views and
Yes
demands and whether the legitimate rights and interests are fully protected:
Whether cash dividend policy is adjusted or changed and whether the conditions and
Not Applicable
procedures are compliant and transparent:
During the reporting period, the company made profits and the parent company could distribute profits to shareholders, but did not
put forward the dividend distribution plan
□ Applicable √ Not applicable
Plans of profit distribution and increase of capital stock by transfer of capital reserve during the reporting period
√ Applicable □Not applicable
Number of bonus shares per ten shares (share) 0
Dividend per ten shares (RMB) (tax included) 2.36
Increased shares through transfer for per 10 shares (shares) 0
Equity base of distribution plan (shares) 9,921,799,422
Cash dividends (RMB) (tax included) 2,341,544,663.59
Cash dividend (RMB) of other means (such as repurchase) -
Total cash dividend (RMB) (including other means) 2,341,544,663.59
Distributable profits (RMB) 39,906,030,604.91
Proportion (%) of cash dividends (including other means) to
100%
total profit distribution
Cash dividend policy：
others
52
Chongqing Changan Automobile Company Limited 2022 Annual Report
Detailed description of profit distribution or increase of capital stock by transfer of capital reserves
The 56th meeting of the 8th Session of Board Of Directors of the company deliberated and passed the 2022 Profit Distribution Plan,
which still needs to be submitted to the 2022 annual general meeting for deliberation. In accordance with the provisions of the
Articles of Association, the relevant decision-making procedures and mechanisms are thorough, which fully protect the legitimate
rights and interests of medium and minority investors, and the independent directors perform their duties and express their opinions.
XI. Implementation of company equity incentive plans, employee stock incentive plans or other
incentive measures
√ Applicable □ Not applicable
1. Equity incentive
On July 13th, 2020, the 2nd meeting of the 8th Session of Board of Directors and the 2nd meeting of the 8th Session of Board of
Supervisors reviewed and approved proposals such as “Proposal on
and its Summary” and “Proposal on ”. The independent directors expressed their independent agreement on the incentive plan.
On February 1st, 2021, the 11th meeting of the 8th Session of Board of Directors and the 7th meeting of the 8th Session of Board
of Supervisors reviewed and approved proposals such as “Proposal on and its Summary” and “Proposal on (Revision)”. The independent directors expressed their independent agreement on the incentive
plan revision.
On February 18th, 2021, the Company held the first extraordinary general meeting in 2021, and reviewed and approved proposals
such as “Proposal on and its Summary”, “Proposal on
” and
“Proposal on General Meeting Granting Full Authority to the Board of Directors to Handle Matters Related to Equity Incentives”.
On February 22nd, 2021, the Company held the twelfth meeting of the Session of Board of Directors and the 8th meeting of the
Session of Board of Supervisors, which reviewed and approved proposals such as “Proposal on Adjusting the List of Incentive Objects
and Incentive Quantity of the A-Share Restricted Stock Incentive Plan under Initial Granting” and "”Proposal on Granting Restricted
Stocks for the First Time to Incentive Objects of A-Share Restricted Stock Incentive Plan”. The independent directors expressed their
independent agreement.
On March 3rd, 2021, the Company completed the registration of restricted stocks and disclosed the “Announcement on the
Completion of the Registration of the Initial Granting of the A-Share Restricted Stock Incentive Plan”. 1,247 people were actually
granted with 76,195,400 restricted shares. The listing date of restricted shares was March 5, 2021.
On August 30th, 2021, the Company held the 25th meeting of the 8th Session of Board of Directors and the 12th meeting of the
8th Session of Board of Supervisors, which reviewed and approved the “Proposal on Adjusting the Repurchase Price of A-Share
Restricted Stock Incentive Plan” and “Proposal on Repurchase and Cancellation of Certain Restricted Shares Granted to Incentive
Objects but still with Sales Restriction”. The independent directors expressed independent agreement.
On September 17th, 2021, the Company held the second extraordinary general meeting in 2021, and reviewed and approved the
“Proposal on Repurchase and Cancellation of Certain Restricted Shares Granted to Incentive Objects but still with Sales Restriction”.
On November 19th, 2021, the Company held the 29th meeting of the 8th Session of Board of Directors and the 15th meeting of
the 8th Session of Board of Supervisors, and reviewed and approved the “Proposal on Adjusting the Amount of Reserved A-Share
Restricted Stock Incentive Plan” and “Proposal on Granting Reserved Restricted Stocks to the Incentive Objects of the A-Share
Restricted Stock Incentive Plan”. The independent expressed independent agreement.
On December 21th, 2021, the Company completed the repurchase and cancellation of all 1.036 million restricted shares that had
been granted to the original 11 incentive objects but still had sales restrictions.
On December 30th, 2021, the Company completed the registration of the reserved restricted stock and disclosed the
“Announcement on the Completion of the Grant of the Reserved A-Share Restricted Stock of the Incentive Plan”; 356 people were
granted with 17,761,200 reserved restricted stocks. The listing date of reserved restricted stocks was December 31th, 2021.
On August 2nd, 2022, the company held the 43rd meeting of the 8th Board of Directors and the 18th meeting of the 8th Board of
Supervisors, and reviewed and approved the Proposal on Adjusting the Repurchase Price of A-share Restricted Stock Incentive Plan
and Repurchasing and Cancelling Some Restricted Stocks. The independent directors of the company have expressed independent
opinions that they agree with.
On August 18th, 2022, the company held the third extraordinary general meeting of shareholders in 2022, and reviewed and
approved the Proposal on Adjusting the Repurchase Price of the A-share Restricted Stock Incentive Plan and Repurchase and
Cancellation of Some Restricted Stocks.
On February 17th, 2023, the company held the 52nd meeting of the 8th Board of Directors and the 21st meeting of the 8th Board
of Supervisors, and reviewed and approved the Proposal on the Achievements of the First Release of Restriction Conditions during the
First Grant Period of the A-share Restricted Stock Incentive Plan. The independent directors of the company have expressed
independent opinions that they agree with.
On March 3rd, 2023, the company disclosed the "Indicative Announcement on the Release of Restricted Shares from Listing and
Circulation during the First Release Period of the First Grant Part of the A-share Restricted Stock Incentive Plan", and the date of
53
Chongqing Changan Automobile Company Limited 2022 Annual Report
release of restricted shares from listing and circulation was March 6th, 2023.
Equity incentives for directors and senior management
√ Applicable □ Not applicable
Unit: share
Number of
Price of Market Number of
Shares Number of newly Number of
Exercisable shares price at the restricted
exercised shares granted Grant price of restricted
shares exercised end of the shares held
during unlocked restricted restricted shares held
Name Position during the during the reporting at the
the in the shares shares at the end
reporting reporting period beginning
reporting current during the (RMB/share) of the
period period (RMB/share of the
period period reporting period
(RMB/share) ) period
period
Chairman, Secretary
Zhu
of the Party 12.31 350,000 3.31 455,000
Huarong
Committee
Director, President,
Wang Jun Deputy Secretary of 12.31 280,000 3.31 364,000
the Party Committee
Director, The Chief
Zhang
Accountant, Board 12.31 271,600 3.31 353,080
Deyong
of Directors Sectary
Yuan Deputy Secretary of
12.31 280,000 3.31 364,000
Mingxue the Party Committee
Tan Executive Vice
12.31 271,600 3.31 353,080
Benhong President
Executive Vice
Ye Pei 12.31 271,600 3.31 353,080
President
Executive Vice
Chen Wei 12.31 271,600 3.31 353,080
President
Li Executive Vice
12.31 271,600 3.31 353,080
Mingcai President
Yang Executive Vice
12.31 194,000 7.46 252,200
Dayong President
Executive Vice
Peng Tao 12.31 191,240 3.31 248,612
Presiden
Zhang
Vice President 12.31 191,240 3.31 248,612
Xiaoyu
Wang
Vice President 12.31 132,300 3.31 171,990
Xiaofei
Wang
Vice President 12.31 132,300 3.31 171,990
Hui
Zhang
Vice President 12.31 191,240 3.31 248,612
Fatao
Board of Directors
Li Jun 12.31 191,240 3.31 248,612
Sectary
Executive Vice
Li Wei 12.31 271,600 3.31 353,080
President (outgoing)
He Executive Vice
12.31 271,600 3.31 353,080
Chaobing President (outgoing)
Executive Vice
Zhao Fei 12.31 271,600 3.31 353,080
President (outgoing)
Secretary of
Discipline &
Hua
Inspection 12.31 271,600 3.31 353,080
Zhanbiao
Commission
(outgoing)
Total -- -- -- 4,577,960 -- 5,951,348
1. The above-mentioned personnel and positions are as of the disclosure date of this report;
2. The original initial grant price of the Company's A-share restricted shares was 6.66 yuan per share, and the reserved
Notes (if any)
grant price was 9.93 yuan per share. The number of shares and the grant price have been adjusted accordingly based on
the implementation of the Company's equity distribution plans for 2020 and 2021.
Evaluation mechanism and incentives for senior managers
For details, please refer to “V. 3. Remuneration of Directors, Supervisors and Senior Management” in Chapter 4.
2. Implementation of employee stock ownership plans
□ Applicable √ Not applicable
54
Chongqing Changan Automobile Company Limited 2022 Annual Report
3. Other employee incentives
□ Applicable √ Not applicable
XII. Internal control system building and implementation during reporting period
1. Internal control building and implementation
Optimize the internal control team and improve control effectiveness. Establish a matrix team of company level internal
control specialists, open up internal control communication channels at all levels of the company, form a working mechanism with
clear responsibilities and clear communication from top to bottom, and improve the communication efficiency of cross department
internal control work. Carry out online and offline training in real time, empower units at all levels of the company, and promote the
synchronous improvement of internal control awareness and professional level of units at all levels of the company.
Improve the management system and strengthen the binding force of the internal control system. Improve top-level design,
promote inventory management, revise and issue the Internal Control Evaluation Manual, clarify the division of work and
responsibilities of internal control, standardize the scope, standards, steps, and other requirements of internal control evaluation,
improve the internal control system, and achieve closed-loop management of control, evaluation, and rectification. Continuously
integrate and optimize business systems, embed internal control system control requirements into specific business systems, clarify
business link control requirements and risk response measures, and build a standardized, comprehensive, and effective management
system.
Strengthen authorization management and improve internal control and supervision mechanism. Carry out the clean-up of
the entire level authorization management system, refine the power and responsibility boundaries of each level based on the
authorization list of the board of directors, and reformulate and issue the management authorization form and centralized and
decentralized authority list for institutions at all levels. Prepare a list of incompatible positions, comprehensively clean up incompatible
positions at all levels of the company's institutions, sort out the responsibilities of important positions and key personnel, adjust
unreasonable positions and personnel settings, and achieve the separation of incompatible position responsibilities and personnel.
Carry out comprehensive internal control evaluation to promote the continuous optimization of the internal control system.
Organizations at all levels of the company use the Internal Control Evaluation Manual as a standardized process to actively evaluate
the effectiveness of the implementation of the internal control system, identify problems, develop measures, improve implementation,
and ensure the effective operation and rigid constraints of the company's internal control system.
2. Details of significant defects in internal control during the reporting period
□ Yes √ No
XIII. Management and control of subsidiaries of the company during the reporting period
Problems
Integration Follow-up
Name Integration plan encountered in Solutions taken Progress
progress solution plan
the integration
Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable
Note: During the reporting period, the company has no new purchase of subsidiaries.
XIV. Internal control self-evaluation report or internal control audit report
1. Self-evaluation report of internal control
Date of Full-text disclosure of internal
April 18th, 2023
control evaluation report
Inquiry index of internal control evaluation
Juchao (www.cninfo.com.cn)
report full text disclosure
The proportion of the total assets of units
included in the evaluation scope to the total
91.88%
assets in the company's consolidated
financial statements
The proportion of the operating income of
the unit in the evaluation scope to the total
93.25%
operating income of the company's
consolidated financial statements
55
Chongqing Changan Automobile Company Limited 2022 Annual Report
Defect identification standard
Type Financial reports Non-financial report
1. Lack of, or violation of, democratic
1. Fraud of the directors, supervisors and
decision-making procedures;
senior managers of the Company.
2. Violation against state laws and
2. The Company shall correct the published
regulations with serious punishment;
financial report to correct major
3. Large loss of medium and senior
misstatements caused by fraud or errors, or
management personnel and senior
major misstatements in the current financial
technical personnel;
Qualitative standards report found by certified public accountants
4. Frequent and serious negative media
but not identified by the company's internal
coverage that spread far;
control of the Company.
5. Lack of institutional control or
3. The Audit Committee has ineffective
institutional system failure of important
supervision over the company’s external
business;
financial reports and financial report internal
6. Major defects in internal control not
control.
rectified.
The misstatement amount in the financial Identification according to the internal
Quantitative standards statements in the following range: control defect quantitative standard in
Misstated 1% of the total assets financial report.
Number of material defects in financial
0
reports
Number of material defects in non-
0
financial reports
Number of important defects in financial
0
reports
Number of important defects in non-
0
financial reports
2. Internal control audit report
√ Applicable □ Not applicable
Review opinions of the internal control audit report
The audit opinions in the internal control audit report issued by Ernst & Young Huaming LLP (Special General Partnership) are as
follows: Chongqing Changan Automobile Co., Ltd., has maintained an effective internal control of financial report in all major
aspects on December 31st,2022, in accordance with the Basic Standards for Internal Control of Enterprises and relevant provisions.
Disclosure of the internal control
Disclosed
audit report
Date of full text disclosure of the
April 18th, 2023
internal control audit report
Inquiry index of Internal Control
Juchao (www.cninfo.com.cn)
Audit Report
Opinion type of internal control
Standard without reservations
audit report
Material defects in non-financial
None
reports
Whether the accounting firm issues a non-standard opinion internal control audit report
□Yes √ No
Whether the internal control audit report issued by the accounting firm is consistent with the self-evaluation report of the board of
directors
√Yes □No
XV. Rectification of self-inspection problems in the Special Action of Listed Companies
According to the company’s self-inspection, the company’s overall compliance operation shows that there are no issues requiring
rectification.
56
Chongqing Changan Automobile Company Limited 2022 Annual Report
Chapter 5 Environmental and Social Responsibility
Ⅰ. Major Environment Concerns
Whether the listed company and its subsidiaries are reckoned as major pollutant discharging units by environment protection
department or not
√Yes □No
Environmental protection-related policies and industry standards
The company strictly implements the laws, regulations, standards and requirements for environmental protection in its production
and operation. The regulatory standards include Environmental Protection Law of the People’s Republic of China, Law on Air Pollution
Prevention and Control, Law of the People’s Republic of China on Prevention and Control of Water Pollution, Law of the People’s
Republic of China on Prevention and Control of Environmental Pollution by Solid Waste, Law of People’s Republic of China on
Environmental Impact Assessment, etc.
Administrative regulations or rules include Measures for the Administration of Environmental Monitoring, Measures for the
Administration of the List of Key Units of Environmental Supervision, Measures for Enterprise Environmental Credit Evaluation,
Administrative Measures for the Legal Disclosure of Enterprise Environmental Information, Contingency Plan for Environmental
Emergencies, etc.
National standards include Integrated Wastewater Discharge Standard, Integrated Emission Standard of Air Pollutants, Emission
Standard of Air Pollutants for Foundry Industry, Standard for Fugitive Emission of Volatile Organic Compounds, Technical
Requirement for Low-Volatile-Organic-Compound-Content Coatings Product, etc. Industry standards include Technical Specification
for Application and Issuance of Pollutant Permit Automotive Industry, Self-Monitoring Technology Guidelines for Pollution Sources,
Technical specification for operation of wastewater online monitoring system (CODCr, NH3-N et al.), Technical guide for leak
detection and repair of volatile organic compounds in industries, etc.
Local standards include Emission standard of Air Pollutants for Surface Coating of Automobile Manufacturing Industry, Emission
Standard of Air Pollutants for Catering Industry, Emission Standard of Air Pollutants for Boilers, etc. The company collects and
interprets the newly released and implemented regulations and standards quarterly and conducts compliance evaluations to ensure that
the company’s production and operation are always legally compliant.
Environmental Protection Administrative License
——Administrative License Information for Construction Projects
In 2022, there will be a total of 6 EIA approval documents for construction projects, as follows:
Name and document number of
Approval
Name of construction project environmental impact assessment approval Approval Authority
acquisition time
document
Chongqing Changan Automobile
Chongqing Construction Project
Co., Ltd. Changan Automobile Chongqing Ecology
Environmental Impact Assessment
C589 Series Passenger Vehicle and Environment June 27th, 2022
Document Approval Letter
Production Line Technical Bureau
(YSHZ [2022] No. 036)
Transformation Project
Technical Transformation Project Chongqing Construction Project Chongqing Ecology
of the New Series New Energy Environmental Impact Assessment and Environment
January 24th, 2022
Vehicle Production Line in the First Document Approval Letter Bureau (Liangjiang
Plant Area of Liangjiang Factory (YLJHZ [2022] No. 007) New Area Branch)
Chongqing Construction Project Chongqing Ecology
NE1 Series Engine Phase III Environmental Impact Assessment and Environment
May 27th, 2022
Technical Transformation Project Document Approval Letter Bureau (Liangjiang
(YLJHZ [2022] No. 054) New Area Branch)
Chongqing Construction Project Chongqing Ecology
EDS2 electric drive and electric
Environmental Impact Assessment and Environment September 21st,
control housing production line
Document Approval Letter Bureau (Liangjiang 2022
technical transformation project
(YLJHZ [2022] No. 118) New Area Branch)
Reply on the Environmental Impact Report of
Environmental Protection
the Environmental Protection Relocation Nanjing Ecology
Relocation (Replacement and
(Replacement and Upgrade) Project of and Environment September 5th, 2022
Upgrade) Project of Nanjing
Nanjing Changan Automobile Co., Ltd. Bureau
Changan Automobile Co., Ltd
(NHJ [2022] No. 17)
57
Chongqing Changan Automobile Company Limited 2022 Annual Report
Approval Opinions on the Environmental
Hefei Changan Automobile Co., Impact Report of “Hefei Changan
Hefei Ecology and
Ltd. C928 Series Passenger Vehicle Automobile Co., Ltd. C928 Series Passenger
Environment July 27th, 2022
Production Line Technical Vehicle Production Line Technical
Bureau
Transformation Project Transformation Project”
(HJS [2022] No. 10086)
——Information on administrative permission for pollutant discharge
In 2022, each base involved a total of 36 pollution discharge license documents, including 5 re applications, 23 changes, and 8
extensions. For details, see the "National Pollution Discharge License Management Information Platform" at http://permit.mee.gov.cn.
——Other administrative licensing information
None.
Industry emission standards and specific conditions of pollutant emissions involved in production and
business activities
Total
Name of the Number of Distribution Discharge Total
Main pollutants and specific Discharge approved Excessive
company or discharge of discharge concentration Pollutant discharge standards discharge
pollutants means discharge emissions
subsidiary outlets outlets (mg/L) (Tons/year)
(Tons/year)
COD 39.61 13.65 347.90 —
Two outlets Integrated Wastewater Discharge
Ammonia
for 1.09 0.38 31.31 —
nitrogen Standard（GB8978-1996); The
workshop
Intermittent Influent Water Quality
Wastewater Total nickel 3 facilities, 0.20 0.04 0.17 —
emissions Requirements set by the Yubei
and one
District Sewage Treatment Plant in
Total zinc main outlet 0.14 0.03 3.48 —
Chongqing
for the Plant
Phosphate 0.29 0.08 0.70 —
Sulfur Emission Standard of Air Pollutants
8.50 2.91 16.95 —
dioxide for Surface Coating of
Chongqing
Changan Nitrogen Automobile Manufacturing Industry
47.43 27.04 75.40 —
Automobile oxides （DB 50/577-2015);
Co., Ltd. Particulate Emission Standards of Air
Outlets 1.66 5.01 94.33 —
Yubei Plant matter Organized Pollutants for Industrial Kiln and
Exhaust gas 32 around the Furnace（DB 50/659-2016);
Volatile emissions
Plant
organic 1.57 Integrated Emission Standards of 3.11 221.21 —
compounds Air Pollutants（DB 50/418-2016);
Emission Standards of Air
Toluene +
0.17 Pollutants for Boiler（DB 50/658- 0.50 50.00 —
Xylene
2016)
During the reporting period, the Yubei Plant of Chongqing Changan Automobile Co., Ltd. was included in the List of Key Pollutant Discharge
Units of Chongqing in 2022 with a total of 1,866.26 tons of hazardous waste generated in this period. The 1,861.65 tons have been legally utilized
Soil —
and disposed of by manufacturers with hazardous waste operation permits, produced 18,369.87 tons of general industrial solid waste and
18,369.87 tons of utilization and disposal.
COD 97.13 6.00 14.02 —
An outlet for Integrated Wastewater Discharge
Ammonia workshop Standard（GB8978-1996); The
2.78 0.60 1.40 —
nitrogen Intermittent facilities, Influent Water Quality
Wastewater 2
emissions and one Requirements set by Guoyuangang
Total nickel 0.13 0.01 0.04 —
main outlet Sewage Treatment Plant in
for the Plant Chongqing
Total zinc 0.12 0.06 0.28 —
Sulfur Emission standard of Air Pollutants
3.06 0.85 1.23 —
Chongqing dioxide for Surface Coating of
Changan Nitrogen Automobile Manufacturing Industry
Automobile 26.99 9.68 18.23 —
oxides （DB 50/577-2015);
Co., Ltd. Particulate Emission Standards of Air
(Liangjiang Outlets 6.61 13.97 36.14 —
matter Organized Pollutants for Industrial Kiln and
Plant, Exhaust gas 26 around the
Volatile emissions Furnace（DB 50/659-2016);
Campus No. Plant
organic 10.76 Integrated Emission Standards of 13.82 63.06 —
1) compounds Air Pollutants（DB 50/418-2016);
Emission Standards of Air
Toluene +
0.58 Pollutants for Boiler（DB 50/658- 0.65 2.68 —
xylene
2016)
During the reporting period, Liangjiang Plant, Campus No. 1 of Changan Automobile was included in the List of Key Pollutant Discharge
Units of Chongqing in 2022 with a total of 1,854.42 tons of hazardous waste in this period. A total of 1,850.31 tons were legally utilized and
Soil —
disposed of by manufacturers with hazardous waste operation permits, produced 16,297.49 tons of general industrial solid waste and 16,297.49
tons of utilization and disposal.
COD 75 33.81 46 —
Chongqing An outlet for Integrated Wastewater Discharge
Changan Ammonia workshop Standard（GB8978-1996); The
3.8 1.66 4.6 —
Automobile nitrogen Intermittent facilities, Influent Water Quality
Wastewater 2
Co., Ltd. emissions and one Requirements set by the
Total nickel 0.10 0.008 0.14 —
(Liangjiang main outlet Guoyuangang Sewage Treatment
Plant, for the Plant Plant in Chongqing
Total zinc 0.05 0.03 1.38 —
58
Chongqing Changan Automobile Company Limited 2022 Annual Report
Campus No. Sulfur Emission standard of Air Pollutants
0 0 4.12 —
2) dioxide for Surface Coating of
Nitrogen Automobile Manufacturing Industry
61 27.10 34.72 —
oxides （DB 50/577-2015);
Particulate Emission Standards of Air
Outlets 8.28 19.85 50.61 —
matter Organized Pollutants for Industrial Kiln and
Exhaust gas 50 around the Furnace（DB 50/659-2016);
Volatile emissions
Plant
organic 6.47 Integrated Emission Standards of 364.31 543.23 —
compounds Air Pollutants（DB 50/418-2016);
Emission Standards of Air
Toluene +
0.63 Pollutants for Boiler（DB 50/658- 1.09 1.54 —
xylene
2016)
During the reporting period, Liangjiang Plant, Campus NO. 2 was included in the List of Key Pollutant Discharge Units of Chongqing in 2022
Soil with a total of 3,136.72 tons of hazardous waste. The 3,111.17 tons were legally utilized and disposed of by manufacturers with hazardous —
waste operation permits, produced 31,405.87 tons of general industrial solid waste and 31,405.87 tons of utilization and disposal.
COD 55.3 13.92 45 —
An outlet for Integrated Wastewater Discharge
workshop Standard（GB8978-1996); The
Total nickel Intermittent facilities, 0.13 Influent Water Quality 0.01 0.1 —
Wastewater 2
emissions and one Requirements set by the
Ammonia main outlet 2.53 Guoyuangang Sewage Treatment 0.65 4.5 —
nitrogen for the Plant Plant in Chongqing
Total zinc 0.095 0.02 0.81 —
Particulate Emission standard of Air Pollutants
Chongqing 8.6 13.44 64.24 —
matter for Surface Coating of
Changan Automobile Manufacturing Industry
Automobile VOCs 6.15 10.69 244.36 —
（DB 50/577-2015);
Co., Ltd. Emission Standards of Air
(Liangjiang SO2 Outlets 0 Pollutants for Industrial Kiln and 0.48 5.34 —
Organized
Plant, Exhaust gas 42 around the Furnace（DB 50/659-2016);
emissions
Campus No. Toluene + Plant
0.322 Integrated Emission Standards of 0.34 0.95 —
3) xylene Air Pollutants（DB 50/418-2016);
Emission Standards of Air
NOx 19 Pollutants for Boiler（DB 50/658- 4.18 24.78 —
2016)
During the reporting period, Liangjiang Plant, Campus NO. 3 was included in the List of Key Pollutant Discharge Units in Chongqing in 2022
with a total of 2,018.65 tons of hazardous waste generated in this period. 2,030.99 tons were legally utilized and disposed of by manufacturers
Soil —
with hazardous waste operation permits, produced 19,542.43 tons of general industrial solid waste and 19,542.43 tons of utilization and
disposal.
COD 83 Integrated Wastewater Discharge 16.21 22.5 —
Standard（GB8978-1996); The
Intermittent Main outlet Influent Water Quality
Wastewater 1
Ammonia emissions for the Plant Requirements set by the
nitrogen 2.84 Guoyuangang Sewage Treatment 0.52 2.25 —
（NH3-N） Plant in Chongqing
Chongqing
Changan
Automobile Particulate
21.19 Emission Standards of Air 14.18 — —
Co., Ltd. matter
(Jiangbei Outlets Pollutants for Industrial Kiln and
SO2 Organized 10.8 7.24 — —
Engine Exhaust gas 93 around the Furnace（DB 50/659-2016);
emissions
Plant, Plant VOCs Plant 0.609 Integrated Emission Standards of 0.44 — —
No.1） Air Pollutants（DB 50/418-2016)
NOx 14.73 9.86 — —
During the reporting period, Jiangbei Engine Plant, Plant NO. 1 was included in the List of Key Pollutant Discharge Units in Chongqing in
2022, and a total of 2,944.85 tons of hazardous waste was generated in this period. 2,944.85 tons were legally utilized and disposed of by
Soil —
manufacturers with hazardous waste operation permits or exemption certificates, produced 934.86 tons of general industrial solid waste and
934.86 tons of utilization and disposal.
COD 43.2 Integrated Wastewater Discharge 9.652 11.08 —
Standard（GB8978-1996); The
Intermittent Main outlet Influent Water Quality
Wastewater 1
Ammonia emissions for the Plant Requirements set by Guoyuangang
nitrogen 3.45 Sewage Treatment Plant in 0.372 1.11 —
Chongqing
Changan （NH3-N） Chongqing
Automobile
Non-
Co., Ltd.
methane
(Jiangbei
total 22.52 1.57 — —
Engine
hydrocarbon Emission Standards of Air
Plant, Plant
s Outlets Pollutants for Industrial Kiln and
No. 2） Organized
Exhaust gas Nitrogen 37 around the Furnace（DB 50/659-2016);
emissions 12.25 3.17 — —
oxides factory Integrated Emission Standards of
Particulate Air Pollutants（DB 50/418-2016)
34.58 8.15 —
matter
Sulfur
7.01 1.81 — —
dioxide
59
Chongqing Changan Automobile Company Limited 2022 Annual Report
During the reporting period, Jiangbei Engine Plant, Plant NO. 2 was included in the List of Key Pollutant Discharge units in Chongqing in
2022, and a total of 5,952.91 tons of hazardous waste was generated in this period. 5,952.91 tons were legally utilized and disposed of by
Soil —
manufacturers with hazardous waste operation permits or exemption certificates, produced 641.4 tons of general industrial solid waste and
641.4 tons of utilization and disposal.
COD 34 7.34 25.76 —
Ammonia An outlet for Integrated Wastewater Discharge
2.5 0.42 3.48 —
nitrogen workshop
Standard（GB8978-1996); The
Intermittent facilities,
Wastewater Total nickel 3 0 Inlet Water Quality Requirements 0.00 — —
emissions and two
set by Guoyuangang Sewage
main outlets
Total zinc 0.02 Treatment Plant in Chongqing 0.01 — —
for the Plant
Phosphate 0.08 0.03 0.13 —
Particulate Emission standard of Air Pollutants
4.6 18.06 38.03 —
matter for Surface Coating of
Chongqing
Volatile Automobile Manufacturing Industry
Lingyao
organic 0.61 （DB 50/577-2015); 4.35 111.4 —
Automobile
compounds Emission Standards of Air
Co., Ltd.
Outlets Pollutants for Industrial Kiln and
Toluene + Organized
Exhaust gas 40 around the 0.60 1.25 6.46 —
xylene emissions Furnace（DB 50/659-2016);
Plant
Integrated Emission Standards of
Sulfur Air Pollutants（DB 50/418-2016);
3 Emission Standards of Air 0.21 7.12
dioxide
Nitrogen Pollutants for Boiler（DB 50/658-
3 2016) 0.69 16.26
oxides
During the reporting period, Chongqing Lingyao Automobile Co., Ltd. (Changan Suzuki) was included in the List of Key Pollutant Discharge
Units in Chongqing in 2022, and a total of 2,213.2 tons of hazardous waste was generated in this period, 2,213.2 tons were legally utilized and
Soil —
disposed of by manufacturers with hazardous waste operation permits or exemption certificates, produced 15,899.33 tons of general industrial
solid waste and 15,899.33 tons of utilization and disposal.
COD 59.29 13.63 63.68 —
An outlet for
Ammonia workshop
3.52 1.19 3.81 —
nitrogen Intermittent facilities, Integrated Discharge Standard of
Wastewater 2
emissions and a main Water Pollutants (DB11/307-2013)
Total nickel 0.03 0.0005 0.01 —
Chongqing outlet for the
Changan Plant
Phosphate 1.92 0.04 / —
Automobile
Co., Ltd. Nitrogen Emission standard of Air Pollutants
12.3 0.37 3.18 —
Beijing oxides for Surface Coating of
Outlets
Changan Automobile Manufacturing Industry
Exhaust gas Volatile Organized 52 around the
Automobile (DB11/1227-2015);
organic emissions Plant 3.56 8.53 458.76 —
Company Integrated Emission Standards of
compounds
Air Pollutants（DB11/501-2017）
During the reporting period, Chongqing Changan Automobile Co., Ltd. Beijing Changan Automobile Company was included in the List of Key
Pollutant Discharge units in Beijing in 2022, and a total of 551.09 tons of hazardous waste was generated in this period, 551.09 tons were
Soil —
legally utilized and disposed of by manufacturers with hazardous waste operation permits or exemption certificates, produced 6,648.6 tons of
general industrial solid waste and 6,648.6 tons of utilization and disposal.
COD 35.224 23.99 144.13 —
Two outlets
Total
for 9.601 Integrated Wastewater Discharge 6.54 39.44 —
nitrogen
workshop Standard（GB8978-1996);
Intermittent
Wastewater 3 facilities, The Pipe Standards set by Hefei
Total nickel emissions 0.006 0.004 0.09 —
and a main West Group Sewage Treatment
outlet for the Plant
Total Plant
Hefei 0.174 0.12 4.73
phosphorus
Changan
Automobile Ammonia
0.449 0.31 14.41 —
Co., Ltd nitrogen
Emission Control Standard for
Outlets Industrial Enterprises Volatile
Organized
VOCs 83 around the 1.3 Organic Compounds of Tianjin
4.267 1139.6 —
Exhaust gas emissions
Plant
（DB12/524-2020）
During the reporting period, Hefei Changan Automobile Co., Ltd. was included in the List of Key Pollutant Discharge Units in Hefei in 2022,
and a total of 1,968.87 tons of hazardous waste was generated in this period, 1,987.23 tons were legally utilized and disposed of by
Soil —
manufacturers with hazardous waste operation permits or exemption certificates, produced 23,532.7 tons of general industrial solid waste and
23,532.7 tons of utilization and disposal.
COD 37.55 5.83 13.34 —
Total
2.83 0.22 14.24 —
nitrogen An outlet for
Integrated Wastewater Discharge
workshop
Nanjing Total nickel 0.19 Standard（GB8978-1996); 0.006 0.06
Intermittent facilities,
Changan Wastewater 2 The Pipe Standards set by Nanjing
emissions and a main
Automobile Total Lishui Qinyuan Sewage Treatment
outlet for the 0.19 0.02 0.08 —
Co., Ltd. phosphorus Co., Ltd.
Plant
Ammonia
nitrogen 0.94 0.06 0.26 —
（NH3-N）
NOx 6 9.67 2.35 8.79 —
60
Chongqing Changan Automobile Company Limited 2022 Annual Report
Exhaust gas Particulate Outlets Emission standard of Air Pollutants
0.6 2.58 10.24 —
matter around the for Surface Coating of
VOCs Plant 4.3 Automobile Manufacturing Industry 16.32 38.48 —
(DB32/2862 – 2016);
Organized
Integrated Emission Standards of
emissions
Air Pollutants (GB 16297 - 1996);
SO2 3 Emission Standards of Air 0.24 53.4 —
Pollutants for Boiler (GB13271-
2014)
During the reporting period, Nanjing Changan Automobile Co., Ltd. was included in the List of Key Pollutant Discharge Units in Nanjing in
2022, and a total of 678.14 tons of hazardous waste was generated in this period, 685.64 tons were legally utilized and disposed of by
Soil —
manufacturers with hazardous waste operation permits or exemption certificates, produced 131.98 tons of general industrial solid waste and
131.98 tons of utilization and disposal.
Ammonia
1.4 0.19 4.8 —
nitrogen
COD 68.31 7.85 63.71 —
An outlet for Integrated wastewater discharge
workshop
standard（GB8978-1996);
Total Intermittent facilities,
Wastewater 2 4.93 The Influent Water Quality 0.39 7.32 —
nitrogen emissions and a main
Requirements Set by Gezhouba
outlet for the
Water Dingzhou Branch
Total Plant
Chongqing 1.42 0.09 0.92
Changan phosphorus
Kaicheng
Automobile Total nickel 0.14 0.001 0.03 —
Technology Sulfur Integrated Emission Standards of
Co., Ltd. 3 0.3 30.01 —
dioxide Air Pollutants GB16297-1996;
Campus Non- Emission Standards of Air
NO.1(Hebei methane Pollutants for Industrial Kiln and
Changan total 2.5 Furnace DB1640-2012; 12.14 570.34 —
Automobile Outlets Emission Control Standards for
hydrocarbon Organized
Co., Ltd) 51 around the Volatile Organic Compounds by
Exhaust gas s emissions
plant Industrial Enterprises DB13/2322-
Particulate
4.05 2016; 5.43 53.4 —
matter
Emission Standards of Air
Nitrogen Pollutants for Boiler（DB13/5161-
7 6.65 31.47 —
oxides
2020)
During the reporting period, Campus NO.2 of Chongqing Changan Kaicheng Automobile Technology Co., Ltd. (formerly known as Hebei
Changan) was included in the List of Key Pollutant Discharge Units in Dingzhou In 2022, with a total of 661.28 tons of hazardous waste
Soil —
generated in this period, of which 658.38 tons have been legally utilized and disposed of by suppliers with hazardous waste operation permits,
produced 7,128.16 tons of general industrial solid waste and 7,128.16 tons of utilization and disposal.
COD 104.43 10.77 72.71 —
Ammonia
A workshop 6.23 0.42 4.14 —
nitrogen
facility
Integrated Wastewater Discharge
Total discharge
13.25 Standard（GB8978-1996); 0.92 5.51 —
nitrogen Intermittent outlet, and
Wastewater 2 The Influent Water Quality
emissions one factory
Requirements Set by Gezhouba
Total total
1.43 Water Dingzhou Branch 0.12 1
Chongqing phosphorus discharge
Changan outlet
Kaicheng
Nickel 0.19 0.004 0.06 —
Automobile
Technology Sulfur Integrated Emission Standards of
Co., Ltd. - 3.8 88.23 —
dioxide Air Pollutants GB16297-1996;
Campus Nitrogen Emission Standards of Air
NO.2(Baodi 7 Pollutants for Industrial Kiln and 8.01 33.75 —
oxides
ng Changan Particulate Furnace DB1640-2012;
Bus Outlets 1.5 Emission Control Standards for 15.62 850.8 —
matter Organized
Manufacturi 94 around the Volatile Organic Compounds by
Exhaust gas emissions
ng Co., Ltd) plant
Industrial Enterprises DB13/2322-
Volatile 2016;
organic 3.88 Emission Standards of Air 81.97 880.62 —
compounds Pollutants for Boiler（DB13/5161-
2020)
During the reporting period, Campus NO.2 of Chongqing Changan Kaicheng Automobile Technology Co., Ltd. (formerly known as Changan
Bus) was included in the List of Key Pollutant Discharge Units in Dingzhou in 2022. A total of 930.18 tons of hazardous waste were generated
Soil —
in this period, and 928.66 tons were legally utilized and disposed of by suppliers with hazardous waste operation permits , produced 10.212.26
tons of general industrial solid waste and 10,212.26 tons of utilization and disposal.
All pollutants are discharged to the standard, and there is no discharge exceeding the standard and the total amount. For details of
the name, distribution and pollutant discharge of each discharge outlet, please refer to the "National Pollutant Discharge Certificate
Management Information Platform" (Website: http: //permit mee. gov.cn), and "Changan Automobile Brand Official Website" for
details (Website: https://www.changan.com.cn/sociology?index=2).
Treatment of pollutants
Pollutant type Main processing technology Processing method
Venturi wet paint mist treatment+zeolite rotary adsorption Deal with by oneself or
Spraying VOCs exhaust
concentration+TNV incineration; Activated carbon adsorption themselves
gas
(Changan, Nanjing); Low temperature plasma (Changan Bus)
Exhaust gas
Deal with by oneself or
Drying VOCs exhaust gas TNV or RTO incineration
themselves
Other VOCs exhaust gas Activated carbon adsorption Deal with by oneself or
61
Chongqing Changan Automobile Company Limited 2022 Annual Report
themselves
Test exhaust gas (nitrogen Deal with by oneself or
Automotive three-way catalytic converter
oxide) themselves
Deal with by oneself or
Foundry dust Bag type dust removal
themselves
Deal with by oneself or
Foundry stench Alkali adsorption or biosorption
themselves
Deal with by oneself or
Refueling mist Mechanical filtration
themselves
Self processing or
Phosphating waste gas Coagulation sedimentation
outsourcing operations
Self processing or
Wastewater Oily wastewater Oil separation+air flotation
outsourcing operations
Comprehensive Self processing or
Coagulation sedimentation+aerobic biochemistry
wastewater outsourcing operations
Outsourcing utilization
Waste solvent Utilization or incineration
and disposal
Outsourcing utilization
Wet metal chips Utilize
and disposal
Aluminum ash, packaging Outsourcing utilization
Utilize
drum and disposal
Solid waste
Wastewater treatment Outsourcing utilization
Landfill
sludge and disposal
Recyclable general Outsourcing utilization
Utilize
industrial solid waste and disposal
Outsourcing utilization
Others Incineration or landfill
and disposal
Deal with by oneself or
Noise Mechanical noise Damping and sound insulation
themselves
In 2022, Yubei Plant added a set of TNV exhaust gas treatment facilities. Pollution treatment facilities are included in the
preventive maintenance management of equipment like other production equipment. There are standing books, operating procedures
or operation instructions, preventive maintenance procedures, preventive maintenance plans and implementation records, equipment
spot inspection, dosing, slag removal, consumables replacement and other operation records. All facilities run normal. Key pollutant
discharge units are equipped with automatic monitoring facilities for wastewater and waste gas according to the requirements of the
local department of ecological conservation, and entrust a third-party professional company for operation and maintenance. The
facilities run normal. There is no abnormal operation of pollution treatment facilities in 2022.
Contingency Plan for environmental emergencies
The manufacturing sites, as required, carries out risk assessment of environmental emergencies, emergency resource surveys,
formulated or revised contingency plans for environmental emergencies, prepared on-site response plans for units with environmental
risk, and continuously carried out hidden danger investigation and treatment. In 2022, Yubei Plant, Nanjing Changan and other sites
completed the revision and filing of contingency plan for environmental emergencies, as shown in the following table:
Unit Contingency Plan File Code Filing Authority
Chongqing Yubei District
Ecological Environmental
Chongqing Changan Automobile Co., Ltd. Yubei Plant Protection
Yubei Plant 500112-2022-065-L
Contingency Plan for Environmental Emergencies Comprehensive
Administrative Law
Enforcement Detachment
Chongqing Ecology and
Chongqing Changan Automobile Co., Ltd. Liangjiang
Liangjiang Plant Environment Bureau
Plant NO.1 Risk Assessment Report on Environmental 500128-2022-156-L
NO.1 (Liangjiang New Area
Emergencies
Branch)
Chongqing Ecology and
Chongqing Changan Automobile Co., Ltd. Liangjiang
Liangjiang Plant Environment Bureau
Plant NO.2 Contingency Plan for Environmental 500128-2022-183-L
NO.2 (Liangjiang New Area
Emergencies (Revised Version)
Branch)
Chongqing Ecology and
Chongqing Changan Automobile Co., Ltd. Jiangbei
Jiangbei Engine 500128-2022-036- Environment Bureau
Engine Plant (1# site) Contingency Plan for
Plant M (Liangjiang New Area
Environmental Emergencies
Branch)
Baoding Changan Bus Manufacturing Co., Ltd. Dingzhou Ecology and
Changan Bus 139001-2022-113-L
Contingency Plan for Environmental Emergencies Environment Bureau
Nanjing Changan Automobile Co., Ltd. Contingency Plan Lishui Ecology and
Nanjing Changan 3201242022087L
for Environmental Emergencies Environment Bureau
62
Chongqing Changan Automobile Company Limited 2022 Annual Report
Chongqing Banan District
Ecological Environmental
Chongqing Chongqing Lingyao Automobile Co., Ltd. Plant 2 Protection
500113-2022-032-L
Lingyao Contingency Plan for Environmental Emergencies Comprehensive
Administrative Law
Enforcement Detachment
All bases formulate emergency drill plans in accordance with the requirements of laws and regulations, and carry out emergency
drills as planned, so as to continuously improve the practicality of emergency plans and the emergency handling ability of employees.
No environmental emergencies occurred in 2022.
Environmental self-monitoring plan
In 2022, key units responsible for pollution discharge of the company prepared self-monitoring plans and carried out self-
monitoring in accordance with the requirements of laws and regulations, and disclosed monitoring information on self-monitoring data
release platforms of various provinces as required by local ecological environment authorities. See the following table for the public
websites.
Environmental Self-Monitoring Plan
Units Website
Disclosure Platform
Yubei Plant, Liangjiang Plant, Jiangbei Key Pollution Source Monitoring Data http://119.84.149.34:20003/publish2/dat
Engine Plant, Chongqing Lingyao Release Platform aSearchPub/entList.aspx
Beijing Environmental Information
http://xxgk.bevoice.com.cn/monitor-
Beijing Changan Automobile Company Disclosure Platform for Enterprises and
pub/index.do
Institutions
Anhui Province Discharge Units Self-
Hefei Changan Automobile Co., Ltd http://39.145.0.253:8081/index
Monitoring Information Disclosure Platform
Jiangsu Province Discharge Units Self- http://218.94.78.61:8080/newPub/web/h
Nanjing Changan Automobile Co., Ltd.
Monitoring Information Disclosure Platform ome.htm
Kaicheng Automobile Technology Co., National Pollution Source Monitoring
https://wryjc.cnemc.cn/gkpt/mainZxjc/1
Ltd. (formerly known as Hebei Changan Information Management and Sharing
30000
and Changan Bus) Platform
Investment in environmental treatment and protection and payment of environmental protection tax
The company’s environmental protection investment mainly includes: the construction of environmental protection facilities,
operation and maintenance of environmental protection facilities, solid waste transportation and disposal (hazardous waste included),
sewage treatment, monitoring, revision of contingency plans, purchase of emergency materials, environmental protection tax, etc.
The company paid environmental protection tax of 1,327,500 yuan in 2022.
Measures taken to reduce carbon emissions during the reporting period and effects
√ Applicable □Not applicable
In response to the national “3060” dual carbon strategy, Changan has set up a carbon peak & carbon neutralization joint taskforce,
with the Chairman as the leader of the leading group, to promote the implementation of the overall work. The organizational structure
is composed of the leading group, business coordination group and dedicated business working group (low-carbon products, low-
carbon technology, low-carbon manufacturing, low-carbon supply, low-carbon digitization and low-carbon cost) to jointly promote the
green and low-carbon transformation of the company and build an intelligent low-carbon mobility technology company.
To achieve the carbon peaking and carbon neutrality targets, Changan has taken solid efforts in energy-saving and carbon-reducing
measures in the manufacturing, achieving a 5.1% year-on-year reduction in the carbon emission per vehicle. There were five dimensions
including “energy & efficiency optimization, process optimization, production plan optimization, lean management, and quality
improvement". With these dimensions as focus, we carried out energy conservation and carbon reduction in production bases of sself-
owned Chinese brands, reducing carbon by 21,000 tons. We built photovoltaic power plants with scientific plans, and actively promoted
energy mix transformation and upgrading towards green and low-carbon energy. The three major bases in Hefei, Hebei, and Nanjing
have built 42.4MW of photovoltaic power stations, which generated green and clean energy for their own use. The total consumption
of green electricity throughout the year stood at 37.76 million kWh, carbon emissions was down by 32,000 tons. We actively
participated in green power market transactions to further expand the proportion of green energy used and reduce corporate carbon
emissions.
Changan has actively carried out R&D of low-carbon technologies, as the first manufacturer in the industry to apply a number of
technologies in mass production. Changan launched the BEV ultra-integrated e-drive system Force, the intelligent hybrid iDD, and
Zhuge intelligent technology. The new generation of ultra-integrated e-drive can reach maximum efficiency of 95%. Changan’s seven-
in-one “smart core” (SVCU) cut volume by 70% with a 70% increase in overall performance. The iBC battery management system
63
Chongqing Changan Automobile Company Limited 2022 Annual Report
has extended the battery life by more than 20%. We have breakthroughs in NEV platform technology and launched the first vehicle
with three powertrains, namely FCEV, BEV, and REEV. Other breakthroughs occurred in new materials such as advanced
thermoforming technology, and steel-aluminum body structure, and research on the performance of key low-carbon materials such as
recycled aluminum alloys and bio-based nylon was completed. Changan is dedicated to creating green and low-carbon products. Up to
now, 17 Changan models have been awarded as national “Green Design Products”.
Administrative penalties imposed for environmental reasons during the reporting period are shown below
None.
Other environmental protection-related information
1. Environmental credit evaluation
In 2022, the production bases carry out the 2021 environmental credit evaluation according to the requirement of local ecological
environment authorities. Yubei Plant, the 3 bases of Liangjiang Plant, 2 bases of Jiangbei Plant, and Lingyao Automobile were named
“Enterprises of Integrity in Environmental Protection”. Tooling Business Unit was named “Enterprises of Integrity in Environmental
Protection” in Yubei district, and Nanjing Changan was named “Enterprise of Integrity” in 2021 by Jiangsu Province. Hefei Changan
was named “Enterprises of Integrity in Environmental Protection” in 2021 by Anhui Province. Hebei Changan and Changan Bus were
B-class enterprises of Dingzhou city.
2. Green supply management information
Changan plays an active role in radiating the industry to build the partnership of mutual trust, shared responsibility, and shared
benefits for a new supply chain system of open cooperation, mutual benefit, and sustainable development. We have established the
management process and cloud management platform where Changan coordinates with suppliers, covering all links from supplier
sourcing, access certification, pricing, component R&D, and performance evaluation to integration. Changan has the SRM system, and
work with suppliers through access certification, VOC control, prohibited and restricted substances management, special supply
requirements, and other measures to improve environmental protection performance and encourage suppliers to save energy and cut
emission for green and low-carbon development. We implemented the IATF16949 quality management system standards and the
ISO14001 environmental certification, with 98% of suppliers obtaining IATF16949, and 92% acquiring ISO14001.
For the management of hazardous substances, the system data is collected through CAMDS and fed into the ELV compliance
system for comprehensive analysis and certifying. In this way, Changan realizes the collection and control of automotive material data,
energy consumption, and other information.
Check “China Automotive Green Dismantling System” (http://www.cagds.org.cn) for Changan outlets for recycling scrapped
vehicles. Companies to recycle or use dismantled vehicles can also log in on the CAGDS website or CAGDS system to see the manual
of M1 passenger car dismantling. Users can check relevant information on the M1 vehicle disassembly manual through the WeChat
mini program “Vehicle Disassembly Manual Identity Analysis Tool”.
Power battery recycling service outlets can be checked on “Changan Automobile Official Website” (https://www.changan.com.cn).
II. Social Responsibility
The full text of corporate social responsibility report has been published on Juchao (www.cninfo.com.cn) on the same day as the
annual report of the company was released.
III. The Company Consolidated and Expanded the Achievements of Poverty Alleviation and
Rural Revitalization
Our company has deeply studied general Secretary Xi's spirit of helping and supporting work, and fully implement the party
central committee and the State Council designated to help support the decision deployment, helping to carry out the government
designated work arrangements, to advance, to consolidate and expand the crucial poverty results and country to promote the effective
connection work, to implement the political responsibility and social responsibility.
1. Strengthened organizational leadership
We held 11 meetings among senior company leaders for support for targeted poor areas to decide on key programs, study the plans,
line out measures, and speed up the work. Changan leaders visited Yunnan for research and guidance.
2. Guaranteed funds for assistance
Changan had pooled 10.6 million yuan for assistance, including 4.5 million yuan for Luxi County in Yunnan, and 6 million yuan
for Yanshan County in Yunnan to support the comprehensive revitalization of rural industries, talents, culture, ecology, and organization
in these two counties. Our purpose is to drive the development of rural industries, improve the local ecosystem, make local culture
64
Chongqing Changan Automobile Company Limited 2022 Annual Report
more civilized, and improve people’s well-being with more effective governance.
3. Support for innovative industries
1. Youyang Camellia Oil Project
In line with the government's overall plan for rural revitalization, Changan has continued to carry forward the Youyang Camellia
Oil Project from the three aspects of marketing, brand, and systems. First, we helped with the marketing and channels of the project.
Through our own sales channels, we helped Youzhou Oil and Tea Technology Co., Ltd. achieve sales of 32.68 million yuan, with annual
sales exceeding 126 million yuan, top ten in the country.
Second, we helped the Youzhou company establish digital M&S by leveraging new media channels and resources such as Douyin.
The company achieved 363 million reads on social media. Changan’s influence in new models of public welfare working with other
industries also expanded, as a good example of enterprises undertaking social responsibilities.
Third, building the operation and management system. Changan helped the company establish a long-term mechanism of scientific
management. In 2022, 50,000 rural households and nearly 200,000 people benefited, of which 5,313 households and 18,595 people
were lifted out of poverty.
2. Chongqing Tanmeizi Project
We have done deep research on the support plan for the special case of Chongqing Tanmeizi. By encouraging employees to buy,
introducing catering suppliers for group buying, and making the products prizes for membership points in the Changan Shop,
Chongqing Tanmeizi achieved chili sales of 92,000 yuan.
4. Scale up assistance through consumption
In line with the government’s call, Changan encourages employees to directly purchase products from the targeted rural area, and
we participated in the “Week of Consumption for Rural Area Products through SOEs under Central Government”. Changa supported
the consumption of 2.376 million yuan throughout the year and drove industry development and income increase in poverty alleviation
areas with concrete actions.
5. Promote employment assistance
Leveraging its advantages as an automobile manufacturer, Changan has made skill training the focus and set up 8 “Changan
Automobile Classes” in Luxi County and Yanshan County in Yunnan Province, and Youyang County in Chongqing City. We carried
out 3 expert lectures on campus and 3 rounds of recruitment at targeted areas. A total of 405 students and residents were recruited to
promote the employment of the rural labor force and help increase the income of people from rural areas. We deepened cooperation
with schools and drove the Luxi Automobile Training Base Project in Yunnan to make good use of existing resources and maximize
the effects and efficiency of the training base.
6. Improve communications
Under the title of “A Dreams in Youyang”, Changan’s case for rural vitalization was named the “Outstanding Cases of Rural
Revitalization of Listed Companies”. Our Youyang Camellia Oil Project showed excellent results, and the project team for supporting
targeted rural areas was awarded the title of “Worker Pioneer” by the Chongqing Federation of Trade Unions.
65
Chongqing Changan Automobile Company Limited 2022 Annual Report
Chapter 6 Important Matters
I. Undertaking performance
1. Undertakings completed during the reporting period and yet to be performed as of the end of the reporting
period of the company’s actual controllers, shareholders, related-parties, acquirers, and the company’s
related parties of the undertakings.
√ Applicable □Not applicable
Type of
Undertakings Undertaking party Description Date Duration Performance
undertaking
The shares of Changan
Automobile subscribed through
China South Industries Group
this offering shall not be
Undertakings Co., Ltd.; China Changan Sales
transferred in any way within 36 In normal
made at the IPO Automobile Group Co., Ltd.; restrictions for October, 2020 36 Months
months after the offering, progress
or refinancing Southern Industry Asset shares
including but not limited to public
Management Co., Ltd.
transfer through the securities
market or by agreement.
Whether the
promise is
Yes
fulfilled as
scheduled
2. Explanation on whether assets or projects reach the earnings forecast and reasons when there is earning
forecast for asset or projects and the reporting period is within the forecast period.
□ Applicable √ Not applicable
II. Non-operating funds the listed company occupied by controlling shareholders and their
related parties
□ Applicable √ Not applicable
During the reporting period, there was no non-operating funds of the listed company occupied by the controlling shareholder and
related parties.
III. Irregular external guarantee
□ Applicable √ Not applicable
The Company has no irregular external guarantee during the reporting period.
IV. Explanation of the Board of Directors on the latest “Non-standard Audit Report”
□ Applicable √ Not applicable
V. Explanation of the “Non-Standard Audit Report” issued by the accounting firm during the
reporting period by the BOD, BOS and independent directors (if any)
□ Applicable √ Not applicable
66
Chongqing Changan Automobile Company Limited 2022 Annual Report
VI. Explanation of changes in accounting policies, accounting estimates and remedies for
significant accounting errors
□ Applicable √ Not applicable
VII. Explanation of changes in the consolidated statement scope compared to the last annual
report
√ Applicable □ Not applicable
During the reporting period, Avatr completed a capital increase and equity expansion to introduce new investors. After this capital
increase, the company lost control of Avatr and no longer included it in the company's consolidated financial statements. As of the end
of the reporting period, the company holds 40.99% equity in Avatr. Changan Brazil Holdings Co., Ltd. has completed its deregistration
and will no longer be included in the company's consolidated financial statements.
VIII. Appointment and dismissal of the accounting firm
The appointed accounting firm
The name of the domestic accounting firm Ernst & Young Hua Ming LLP (Special General Partnership)
Payment (RMB: 10,000) 395
Years of audit services 16
Names of Certified Public Accountants Qiao Chun, Yuan Yong
Years of services provided by Certified Public Accountants （5 years）Qiao Chun, （2 years）Yuan Yong
Whether to re-appoint the accounting firms
□Yes √ No
Description of the internal control accounting firms, financial adviser or sponsor
√Applicable □ Not applicable
After deliberation at the 2021 annual general meeting, the company has appointed Ernst & Young Hua ming LLP (special general
partnership) as the internal control auditor in 2022. In 2022, the company paid Ernst & Young Hua ming LLP (special general
partnership) RMB 1.166 million for the internal control audit services.
IX. Delisting after the disclosure of the annual report
□ Applicable √ Not applicable
X. Bankruptcy and restructuring
□ Applicable √ Not applicable
During the report period, there is no bankruptcy or restructuring.
XI. Crucial litigation and arbitration
□ Applicable √ Not applicable
During the reporting period, the company has no crucial litigation and arbitration.
XII. Punishment and rectification
□ Applicable √ Not applicable
During the reporting period there’s no punishment and rectification..
XIII. The integrity of company, its controlling shareholder and actual controller
□ Applicable √ Not applicable
67
Chongqing Changan Automobile Company Limited 2022 Annual Report
XIV. Significant related-party transactions
1. Related-party transactions related to daily operation
For details, please refer to Note 10 “Related Party Relationships and Transactions” under the Chapter 10.
2. Related-party transactions of acquisition or sales of assets or equity
□ Applicable √ Not applicable
3. Related-party transactions of common foreign investment
√ Applicable □ Not applicable
For details, please refer to “XIV. 7. Other significant related-party transactions” in Chapter 6.
4. Related rights and debt relations
√Applicable □Not applicable
For details, please refer to Note 10 "Related Party Relationships and Transactions" under the Chapter 10.
Whether there is any non-business related credits and debts
□Yes √ No
There is no non-operating associated credits and debts during the reporting period.
5. Transactions with associated financial companies
√ Applicable □Not applicable
Deposit
Amount incurred in the current
Maximum period
Beginning
daily deposit Total Ending balance
Related party Relationship Interest rate balance (RMB: Total deposit
limit (RMB: withdrawal (RMB: 10,000)
10,000) amount (RMB:
10,000) amount (RMB:
10,000)
10,000)
A company
China South controlled by
Industries the actual
2,000,000 0.35%-2.1% 1,965,298 33,811,595 33,790,598 1,986,295
Group Finance controller of
Co., Ltd. Changan
Automobile
A company
Changan controlled by
Automobile the actual
1,500,000 1.85%-3.50% 1,200,000 1,495,000 1,200,000 1,495,000
Financing Co., controller of
Ltd. Changan
Automobile
Loan
Amount incurred in the current
period
Beginning
Loan amount Total Ending balance
Related party Relationship Interest rate balance (RMB: Total amount
(RMB: 10,000) repayment (RMB: 10,000)
10,000) of loan (RMB:
amount (RMB:
10,000)
10,000)
A company
China South controlled by
Industries the actual
50,000 1%-4.75% 7,330 8,707 9,137 6,900
Group Finance controller of
Co., Ltd. Changan
Automobile
Credit granting or other financial business
Related party Relationship Business Total amount (RMB: Actual amount incurred
68
Chongqing Changan Automobile Company Limited 2022 Annual Report
10,000) (RMB: 10,000)
A company controlled by
China South Industries
the actual controller of Credit granting 1,150,000 523,164
Group Finance Co., Ltd.
Changan Automobile
6. Transactions between the financial company controlled by the company and related parties
□ Applicable √ Not applicable
7. Other significant related-party transactions
√ Applicable □Not applicable
Interim announcement of major related-party transactions on the website
Interim
Interim announcement Wsebsite
announcement date
Announcement of Expected Related-party Transactions in the Ordinary Course of
April 28th, 2022
2022
Announcement on Related-party Transactions of China South Industries Group
May 21st, 2022
Finance Co., Ltd. Providing Financial Services for Changan Automobile
http://www.cninfo.com.cn
Announcement on Related-party Transactions of Changan Automobile Finance
May 21st, 2022
Co., Ltd. Providing Financial Services for Changan Automobile
Announcement on Related Transactions of Capital Increase to Associated
August 3rd, 2022
Enterprises
XV. Major contracts and their performance
1. Custody, contracting and leasing
（1）Custody
□ Applicable √ Not applicable
Custody information
There is no custody during the reporting period.
（2）Contracting
□ Applicable √ Not applicable
Contracting information
There is no contracting during the reporting period.
（3）Leasing
√ Applicable □Not applicable
Leasing information
Leasing of related parties can be found in Item 5 (3) of Note 10 of Financial Statements “Related Party and Related Transactions”.
Projects whose profit and loss to the company account for more than 10% of total profits during the reporting period.
□ Applicable √ Not applicable
There was no project whose profit and loss to the company accounted for more than 10% of total profits during the reporting
period.
2. Guarantee
□ Applicable √ Not applicable
There’s no guarantee during the report period.
69
Chongqing Changan Automobile Company Limited 2022 Annual Report
3. Entrustment of cash asset management
(1) Entrust wealth management
□ Applicable √ Not applicable
There’s no entrusting wealth management during the reporting period.
(2) Entrusted loans
□ Applicable √ Not applicable
There is no entrusted loan during the reporting period.
4. Other major contracts
□ Applicable √ Not applicable
There are no other major contracts of the Company during the reporting period.
XVI. Other important events
√ Applicable □ Not applicable
On December 2, 2022 and December 22, 2022, respectively, the company held the forty-ninth meeting of the eighth board of
directors and the fourth Extraordinary General Meeting in 2022 to review the “motion on the acquisition of part of Changan New
Energy”. After the completion of this transaction, the company’s shareholding ratio in Changan New Energy will increase from 40.66 %
to 51.00%. Changan New Energy will be included in the company’s consolidated statements. For details, see “Announcement on the
acquisition of part of Changan New Energy” (Announcement No. 2022-78). On February 18, 2023, the company disclosed
“Announcement on the progress of the acquisition of part of Changan New Energy” (Announcement No.2023-05). Changan New
Energy has been included in the company’s consolidated statements since February 2023.
XVII. Important matters of the Company’s subsidiary
□ Applicable √ Not applicable
70
Chongqing Changan Automobile Company Limited 2022 Annual Report
Chapter 7 Share Changes and Shareholder Information
Ⅰ. Change in shareholdings
1. Change in shareholdings
Unit: One share
Before change Changes（+，-） After change
Additional Stock Provident fund
Quantity Ratio Other Subtotal Quantity Ratio
issued dividend transfer
Shares with sales restrictions 519,818,865 6.81% 155,945,659 10,950 155,956,609 675,775,474 6.81%
1. State-owned legal person
396,393,645 5.19% 118,918,093 118,918,093 515,311,738 5.19%
shares
2. Other domestic shares 122,490,320 1.61% 36,747,096 10,950 36,758,046 159,248,366 1.61%
Including: domestic legal
person shares
domestic natural person
122,490,320 1.61% 36,747,096 10,950 36,758,046 159,248,366 1.61%
shares
3. Foreign shares 934,900 0.01% 280,470 280,470 1,215,370 0.01%
Including: foreign legal
persons shares
foreign natural person
934,900 0.01% 280,470 280,470 1,215,370 0.01%
shares
Shares without sales
7,112,334,537 93.19% 2,133,700,361 -10,950 2,133,689,411 9,246,023,948 93.19%
restrictions
1.Ordinary shares
5,849,553,939 76.64% 1,754,866,182 -10,950 1,754,855,232 7,604,409,171 76.64%
denominated in RMB
2. Domestic listed foreign
1,262,780,598 16.55% 378,834,179 378,834,179 1,641,614,777 16.55%
shares
Total shares 7,632,153,402 100.00% 2,289,646,020 2,289,646,020 9,921,799,422 100.00%
Reasons for share change
√ Applicable □ Not applicable
The company implemented the 2021 annual equity distribution (see the "Announcement on the Implementation of 2021 Annual
Dividend Distribution and Capital Share Increase by Transfer" for more information). The distribution plan went: based on the total
capital share of 7,632,153,402 distribute RMB 2.33 for each10 shares Cash (tax included) to all shareholders and increase by
transferring 3 shares for each 10 shares to all shareholders by capital reserve. The ex-dividend date is June 27, 2022, and the total
number of capital share was 9,921,799,422 after the transfer.
Other changes in the company’s limited sales conditions shares are caused by changes in lock-up stocks for retired executives.
Approval of share change
√ Applicable □ Not applicable
2021 annual equity distribution was reviewed and approved by the 38th meeting of the 8th Session of Board of Directors on April
26, 2022 and was reviewed and approved by the company’s 2021 annual general meeting of shareholders on June 15, 2022.
Transfer of shares
√ Applicable □ Not applicable
See Chapter 7, I, 1, "Reasons for share change" for details.
Impact of share changes on financial indicators such as basic earnings per share and diluted earnings per
share in the latest year and the latest period, and net assets per share attributable to ordinary shareholders
of the company
√ Applicable □ Not applicable
The basic earnings per share at the beginning of the reporting period was RMB 0.36 yuan, and at the end, RMB 0.80 yuan; the
diluted earnings per share at the beginning of the reporting period was RMB 0.36 yuan, and at the end was RMB 0.78 yuan; the net
assets per share attributable to ordinary shareholders at the beginning were RMB 7.30 yuan, and at the end, RMB 6.34 yuan.
Other information deemed necessary by the company or required by securities regulators to disclose
□ Applicable √ Not applicable
71
Chongqing Changan Automobile Company Limited 2022 Annual Report
2. Changes in restricted shares
√ Applicable □ Not applicable
Unit: share(s)
Number of
Number of shares with sales Number of
Increase during
restricted shares at restriction restricted shares at Reasons for Date of removal of sales
Name of shareholders the reporting
the beginning of removed during the end of the restrictions restriction
period
the period the reporting period
period
Southern Industry Asset Non-public issuance
261,682,243 78,504,673 - 340,186,916 2023-10-26
Management Co., Ltd. of A shares in 2020
China Changan Automobile Non-public issuance
130,841,122 39,252,336 - 170,093,458 2023-10-26
Group Co., Ltd. of A shares in 2020
China South Industries Group Non-public issuance
3,870,280 1,161,084 - 5,031,364 2023-10-26
Co., Ltd. of A shares in 2020
The restricted stock
granted by the incentive
object for the first time
and reserved for the
restricted stock is
released in three batches.
The restriction period of
each batch is 24 months,
36 months and 48
A-share restricted stock 123,398,760 37,019,628 - 160,418,388 Equity incentive
months from the date of
completion of the
corresponding grant
registration. The
proportion of lifting the
restriction is 33 %, 33 %
and 34 % of the total
number of shares granted
by the incentive object.
Locked shares of
senior executives Lift the sale restriction
Other shareholders 26,460 18,888 - 45,348 and outgoing according to the relevant
executives other than rules
Restricted stock
Total 519,818,865 155,956,609 - 675,775,474 -- --
Note: The above "Increase during the reporting period" has been adjusted according to the implementation of the company's 2021
equity distribution plan, which is subject to the registration of China Securities Depository and Clearing Corporation Limited Shenzhen
Branch.
II. Issuing and listing of securities
1. Securities issuance (excluding preference shares) during the reporting period
√ Applicable □ Not applicable
Unit: RMB
Name of the Number
Price (or Closing
share and its approved of Disclosure
Date interest Number Listing date date of Disclosure information
derivative listing and date
rate) trading
securities trading
Convertible corporate bonds, separate transaction convertible corporate bonds, corporate bonds
For details, please see the " Chongqing
Changan Automobile Co., Ltd.in 2022
for Professional Investors to Publicly
22 Changan December December December December
3.00% 1,000,000,000 1,000,000,000 Issued Scientific and Technological
K1 19th, 2022 26th, 2022 20th, 2027 15th, 2022
Innovation Corporate Bonds ( Phase I )
Issuance Announcement " on
http://www.cninfo.com.cn
Explanation on the issuance of securities (excluding preferred shares) during the reporting period
On December 19, 2022, the company publicly issued the technology innovation company bonds (Phase I ) to professional investors,
with the issuance scale of RMB 1,000,000,000 yuan, the bond issuance period of 5 years, and the bond coupon rate of 3.00%. It was
listed and traded on the Shenzhen Stock Exchange on December 26, 2022.
72
Chongqing Changan Automobile Company Limited 2022 Annual Report
2. Changes in the company’s total shares and shareholding structure, and changes in the company's asset
and liability structure
√ Applicable □ Not applicable
Please see Chapter 7, I, 1, “Reasons for share change” for the changes in the total number of ordinary shares and shareholder
structure of the Company during the reporting period.
At the beginning of the reporting period, the total assets were RMB 135,404,623,479.63; the total liabilities were RMB
79,538,383,535.43, and the asset-liability ratio was 58.74%. At the end of the period, the total assets were RMB 146,048,555,951.92,
the total liabilities were RMB 83,099,751,390.43, and the asset-liability ratio was 56.90%.
3. Existing employee shares
□ Applicable √ Not applicable
III. Shareholders and actual controllers
1. Number of shareholders and shareholding
Unit: share(s)
Number of Number of
ordinary shareholders Number of shareholders
shareholders holding preference holding preference shares
At the end of the report period, the at the month- shares with with restored voting
731,125 736,208 0 0
total number of shareholders end prior restored voting rights at the month-end
to the rights at the end of prior to the disclosure
disclosure date the reporting date of this Report
of this Report period
Shareholders holding more than 5% of the shares, or top 10 shareholders
Increase/ Condition of
Number of Number of Number of
decrease shares (pledged,
Percentag shares held as of shares held shares held
Name Nature during the labeled or frozen)
e the end of the with sales without sales
Reporting Amoun
reporting period restrictions restrictions Status
Period t
China Changan Automobile Group State-owned legal
17.97% 1,783,090,143 411,482,340 170,093,458 1,612,996,685
Co., Ltd. person
China South Industries Group Co., State-owned legal
14.22% 1,410,747,155 285,364,756 5,031,364 1,405,715,791
Ltd. person
Southern Industry Asset Management State-owned legal
5.10% 506,243,257 49,175,367 340,186,916 166,056,341
Co., Ltd. person
Domestic general
China Securities Finance Co., Ltd. 4.30% 426,362,905 98,391,439 426,362,905
legal person
United Prosperity Investment Co., Ltd. Foreign legal person 2.83% 280,498,832 64,730,500 280,498,832 Not
Hong Kong Securities Clearing Co., pledged,
Foreign legal person 1.44% 143,126,909 -97,559,531 143,126,909
Ltd. labeled or
China Construction Bank Corporation Funds, wealth frozen
- Huaxia Energy Reform Equity management 0.72% 71,921,430 16,048,986 71,921,430
Securities Investment Fund products, etc.
GUOTAI JUNAN SECURITIES
Foreign legal person 0.43% 42,682,415 12,517,977 42,682,415
（HONG KONG） LIMITED
China Merchants Securities (HK) Co.,
Foreign legal person 0.40% 39,905,619 39,905,619 39,905,619
Ltd.
State-owned legal
Taiping Life Insurance Co., Ltd. 0.35% 34,742,116 34,742,116 34,742,116
person
Among the top 10 shareholders, the actual controller China South Industries Group Co., Ltd. and its
wholly-owned subsidiary Southern Industry Asset Management Co., Ltd., the controlling shareholder
Description of the related party relationship or acting in
China Changan Automobile Group Co., Ltd. and its wholly-owned subsidiary United Prosperity
concert among the above shareholders
Investment Co., Ltd. are parties acting in concert by “Measures for the Administration of Takeover of
Listed Companies”.
Description of the above-mentioned shareholders
entrusting/being entrusted with voting rights and waiver of None
voting rights
Shareholdings of the top 10 ordinary shareholders of unrestricted shares
Number of shares without sales Shares type
Shareholders restrictions at the end of the
Type Number
reporting period
China Changan Automobile Group Co., Ltd. 1,612,996,685 RMB ordinary shares 1,612,996,685
China South Industries Group Co., Ltd. 1,405,715,791 RMB ordinary shares 1,405,715,791
73
Chongqing Changan Automobile Company Limited 2022 Annual Report
China Securities Finance Co., Ltd. 426,362,905 RMB ordinary shares 426,362,905
United Prosperity Investment Co., Limited 280,498,832 Domestic listed foreign shares 280,498,832
Southern Industry Asset Management Co., Ltd. 166,056,341 RMB ordinary shares 166,056,341
Hong Kong Securities Clearing Co., Ltd. 143,126,909 RMB ordinary shares 143,126,909
China Construction Bank Corporation - Huaxia Energy
71,921,430 RMB ordinary shares 71,921,430
Reform Equity Securities Investment Fund
GUOTAI JUNAN SECURITIES（HONG KONG）
42,682,415 Domestic listed foreign shares 42,682,415
LIMITED
China Merchants Securities (HK) Co., Ltd. 39,905,619 Domestic listed foreign shares 39,905,619
Taiping Life Insurance Co., Ltd. 34,742,116 RMB ordinary shares 34,742,116
Among the top 10 shareholders, the actual controller China South Industries Group Co., Ltd. and its
Description of the related relationship or acting in concert
wholly-owned subsidiary Southern Industry Asset Management Co., Ltd., the controlling shareholder
among the top 10 shareholders of unrestricted circulating
China Changan Automobile Group Co., Ltd. and its wholly-owned subsidiary United Prosperity
shares, and between the top 10 shareholders of unrestricted
Investment Co., Ltd. are parties acting in concert as stipulated in the “Measures for the Administration
tradable shares and the top 10 shareholders
of Takeover of Listed Companies”.
Whether the top 10 shareholders of ordinary shares, and the top 10 shareholders of ordinary shares without sales restrictions
agreed on the repurchase transactions during the report period
□ Yes √ No
The top 10 shareholders of ordinary shares, and the top 10 shareholders of ordinary shares without sales restrictions did not agree
on the repurchase transactions during the reporting period.
2. The company's controlling shareholder
Nature of the controlling shareholder: the central state-owned
Type of the controlling shareholder: legal person
Date of
Name Legal /Representative Organization code Business scope and major products:
establishment
Design, development, manufacturing and sales of car,
motorcycle and engine and parts; sales of optical products,
electronic and optoelectronic products, night vision device,
information and communication equipment; technical
China Changan Automobile 91110000710933948
Zhou Kaiquan Dec 26th, 2005 development, transfer, consultation, technical training, and
Group Co., Ltd. 4
other technical service related to the operation mentioned
above; imports and exports; merge and acquisition and
asset restructuring consultation; telecommunications
services and agency bookkeeping.
Equity of other domestic
and overseas listed As of the end of the reporting period, controlling shares of listed companies: Harbin Dongan Auto Engine Co., Ltd.
companies where he has (stock code 600178); Hunan Tianyan Machinery Co., Ltd. (stock code 600698), Chongqing Changan Minsheng APLL
controlled and participated Logistics Co., Ltd (stock code 01292.HK)
during the reporting period
The change of controlling shareholder during the reporting period
□ Applicable √ Not applicable
No changes in controlling shareholder during the reporting period.
3. The actual controller and its parties acting in concert
Nature of the actual controller: the central state-owned asset management institution
Type of the actual controller: legal person
Date of
Name Legal Representative Organization code Businesses
establishment
Investment and management of state-owned assets,
operation and management, R&D, manufacturing,
guarantee and services of vehicles, electrical equipment,
optoelectronic information products and equipment,
China South Industries 9111000071092604
Xu Xianping Jun 29th,1999 mechanical equipment, engineering and construction
Group Corp. 3F
machinery, chemical materials (except hazardous
chemicals), fire-fighting equipment, medical and
environmental protection equipment, metal and non-metal
materials and products.
As of the end of the reporting period, directly or indirectly controlling shares of listed companies: Harbin Dongan Auto
Other domestic and
Engine Co., Ltd. (stock code 600178); Baoding Tianwei Electric Co., Ltd. (stock code 600550); Jiangling Motors Co.,
overseas listed companies
Ltd. (stock code 000550); Hunan Tianyan Machinery Co., Ltd. (stock code 600698); Chongqing Jianshe Automotive
controlled by the actual
Systems Co., Ltd. (stock code 200054); China Optical Group Co., Ltd. (stock code 002189); Yunnan Xiyi Industrial Co.,
controller during the report
Ltd. (stock code 002265); Chongqing Changan Minsheng APLL Logistics Co., Ltd. (stock code 01292.HK); Hubei
period
Huaqiang Technology Co., Ltd. (stock code 688151).
The change of the actual controller during the reporting period
□ Applicable √ Not applicable
74
Chongqing Changan Automobile Company Limited 2022 Annual Report
No changes in the actual controller during the reporting period.
The equity and control relationship between the company and the actual controller:
Actual controlling through trust or other asset management.
□ Applicable √ Not applicable
4. Pledged shares held by controlling shareholder or the largest shareholder and its parties acting in concert
account for 80% of the shares.
□ Applicable √ Not applicable
5. Other corporate shareholders holding over 10% shares.
□ Applicable √ Not applicable
6. Shareholding restriction and reduction of controlling shareholder, actual controller, restructuring party
and other commitment entities
□ Applicable √ Not applicable
IV. Share repurchase during the reporting period
Share repurchase
□ Applicable √ Not applicable
Reducing repurchased shares by centralized bidding
□ Applicable √ Not applicable
75
Chongqing Changan Automobile Company Limited 2022 Annual Report
Chapter 8 Preference Shares
□ Applicable √ Not applicable
There was no preferred share in the Company in the reporting period.
76
Chongqing Changan Automobile Company Limited 2022 Annual Report
Chapter 9 Bonds
√Applicable □ Not applicable
I. Enterprise Bonds
□Applicable √ Not applicable
No enterprise bonds in the Reporting Period
II. Corporate Bonds
√Applicable □ Not applicable
1. Basic Information of the Corporate Bonds
Unit: RMB
Abbreviati Bond Date of Value Maturi Interes Trading
Bond Name Bonds balance Way of redemption
on Code issue date ty t rate place
Chongqing
Single interest is
Changan
calculated on an annual
Automobile Co.,
basis, excluding
Ltd. publicly
Dece Dece Dece compound interest. The
issued science 22 Shenzhen
148147. mber mber mber interest is paid once a
and technology Changan 1,000,000,000 3.00% Stock
SZ 19th, 20th, 20th, year, and the principal is
innovation K1 Exchange
2022 2022 2027 repaid once due. The last
corporate bonds
interest is paid with the
to professional
payment of the
investors in
principal.
2022 ( Phase I )
This bond is issued to professional institutional investors who open A-share securities accounts
Appropriate arrangement of the investors
in Shenzhen Branch of China Securities Depository and Clearing Co., Ltd. (excluding purchasers
(if any)
prohibited by laws and regulations).
Applicable trading mechanism Centralized bidding trade and block trading
Risk of termination of listing transactions
None
(if any) and countermeasures
Overdue bonds
□ Applicable √ Not applicable
2. The Trigger and Execution of the Option Clause of the Issuers or Investors and the Investor Protection
Clause
□Applicable √ Not applicable
3. Intermediary
Signature Contact person of
Bond Intermediary Office address Contact number
accountant intermediary
Chongqing Lead underwriter 22nd Floor, CITIC Securities
Hu Yan,
Changan and bond trustee: Building, No. 48 Liangmaqiao Jiang Haotian,
Qiao Chun, 010-60837490
Automobile CITIC Securities Road, Chaoyang District, Jiang jiarong
Yuan Yong
Co., Ltd. Co., Ltd. Beijing
77
Chongqing Changan Automobile Company Limited 2022 Annual Report
publicly issued Joint lead 27th and 28th Floors, Block 2,
science and underwriter: China Guomao Building, No. 1 Qi Qin, Yan
010-65051166
technology International Capital Jianguomenwai Street, Runan, Li Cong
innovation Corporation Limited Chaoyang District, Beijing
corporate Floor 8-10, Building A,
Law Firm: Beijing
bonds to Rongchao Business Center,
ZhongLun Law Xu Zhigang 0755-33256902
professional 6003 Yitian Road, Futian
Firm
investors in District, Shenzhen
2022 (Phase I ) Accounting firm: 17th Floor, Ernst & Young
Ernst & Young Hua Tower, Oriental Plaza, No. 1 Qiao Chun, Yuan
023-62736177
Ming LLP (Special East Chang An Avenue, Dong Yong
General Partnership) Cheng District, Beijing, China
17th Floor, PICC
Rating agency: Property&Casualty Insurance
Sun Changzheng,
United Credit Building, No. 2 010-85679696
Li Jingyun
Rating Co., Ltd. Jianguomenwai Street,
Chaoyang District, Beijing
Indicate by tick mark whether above intermediary changed in the Reporting Period
□ Yes √ No
4. List of the Usage of the Raised Funds
Unit: RMB
Whether is consistent
Rectification of
Operation of with the usage, using
Unused raised funds for
Bond Total amount Amount spent special account plan and other
amount violation
for raised funds agreements stipulated in
operation
the raising specification
Chongqing Changan
Automobile Co., Ltd. Relevant special
publicly issued science accounts for
and technology raised funds are No illegal use
1,000,000,000 1,000,000,000 0 Yes
innovation corporate used normally of raised funds
bonds to professional according to
investors in 2022 regulations
( Phase I )
The raised funds were used for project construction
□ Applicable √ Not applicable
The Company changed the usage of above funds raised from bonds during the Reporting Period.
□ Applicable √ Not applicable
5. Adjustment of Credit Rating Results during the Reporting Period
□ Applicable √ Not applicable
6. Execution and Changes of Guarantee, Repayment Plan and Other Repayment Guarantee Measures as
well as Influence on Equity of Bond Investors during the Reporting Period
□ Applicable √ Not applicable
III. Debt Financing Instruments of Non-financial Enterprises
□ Applicable √ Not applicable
No such cases in the Reporting Period.
78
Chongqing Changan Automobile Company Limited 2022 Annual Report
IV. Convertible Corporate Bonds
□ Applicable √ Not applicable
No such cases in the Reporting Period.
V. Losses of Scope of Consolidated Financial Statements during the Reporting Period Exceeding
10% of Net Assets up the Period-end of Last Year
□ Applicable √ Not applicable
VI. Matured Interest-bearing Debt excluding Bonds up the Period-end
□ Applicable √ Not applicable
VII. Whether there was any Violation of Rules and Regulations during the Reporting Period
□ Yes √ No
VIII. The Major Accounting Data and the Financial Indicators of the Recent 2 Years of the
Company up the Period-end
Unit: 10,000 RMB
Items 31 December 2022 31 December 2021 Increase/decrease
Current ratio 1.28 1.20 6.67%
Debt/asset ratio 56.90% 58.74% -1.84%
Quick ratio 1.18 1.03 14.56%
31 December 2022 31 December 2021 Increase/decrease
Net profit after deducting
445,891.93 165,277.13 169.78%
non-recurring profit or loss
Debt/EBITDA ratio 46.48% 39.59% 6.89%
Interest cover (times) 137.44 67.31 104.19%
Cash-to-interest cover (times) 116.39 508.67 -77.12%
EBITDA-to-interest cover
793.45 697.23 13.80%
(times)
Loan repayment rate 100% 100% 0
Interest coverage 100% 100% 0
79
Chongqing Changan Automobile Company Limited 2022 Annual Report
Chapter 10 Auditor’s Report
Ernst & Young Hua Ming Shen Zi (2023) No. 60662431_V01
Chongqing Changan Automobile Company Limited
To the shareholders of
Chongqing Changan Automobile Company Limited
80
Auditor’s Report
Ernst & Young Hua Ming Shen Zi (2023) No. 60662431_V01
Chongqing Changan Automobile Company Limited
To the shareholders of
Chongqing Changan Automobile Company Limited:
Opinion
We have audited the accompanying financial statements of Chongqing Changan Automobile
Company Limited, which comprise the consolidated and the company balance sheet as at 31
December 2022, and the consolidated and the company income statements, the statements
of changes in equity and the cash flow statements for the year then ended and notes to the
financial statements.
In our opinion, the accompanying financial statements of Chongqing Changan Automobile
Company Limited present fairly, in all material respects, the consolidated and the Company’s
financial position as at 31 December 2022, and the consolidated and the Company’s financial
performance and cash flows for the year then ended in accordance with Accounting
Standards for Business Enterprises (“ASBEs”).
Basis for opinion
We conducted our audit in accordance with China Standards on Auditing (“CSAs”). Our
responsibilities under those standards are further described in the Auditor’s responsibilities
for the audit of the financial statements section of our report. We are independent of the
Company in accordance with China Code of Ethics for Certified Public Accountants (the
“Code”), and we have fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the financial statements of the current period. These matters were
addressed in the context of our audit of the financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate opinion on these matters. For each
matter below, our description of how our audit addressed the matter is provided in that
context.
81
Auditor’s Report (continued)
Ernst & Young Hua Ming Shen Zi (2023) No. 60662431_V01
Chongqing Changan Automobile Company Limited
Key audit matters (continued)
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of
the financial statements section of our report, including in relation to these matters.
Accordingly, our audit included the performance of procedures designed to respond to our
assessment of the risks of material misstatement of the financial statements. The results of
our audit procedures, including the procedures performed to address the matters below,
provide the basis for our audit opinion on the accompanying financial statements.
Key audit matter How our audit addressed the key audit
matter
Provision for warranties
According to after-sales maintenance contracts or With regard to the warranty provisions
related national laws and regulations, Chongqing audited by us:
Changan Automobile Company Limited provides
warranties on automobile and undertakes to repair We understood and evaluated
or replace items that fail to perform satisfactorily the process of the warranty
based on certain pre-determined conditions. In provisions. In addition, we tested
addition, in order to maintain the quality and safety the key controls and application
of the sold vehicle, Chongqing Changan Automobile controls over the process of the
Company Limited also promotes a recall based on warranty provisions.
needs. Chongqing Changan Automobile Company
Limited should estimate and recognize the warranty We assessed the reasonableness
costs and the corresponding liabilities. and evaluated the major
assumptions of management’s
Provisions for warranties granted by Chongqing warranty provision models. We
Changan Automobile Company Limited for the tested the samples of payment of
vehicles sold are recognized based on sales volume the warranty provisions and tested
and past experience of the cost of repair and the mathematical accuracy of
replacement, and labor cost, which involves a calculations therein by re-
number of assumptions and judgments. Extra performing the calculations
recalls are recognized based on the vehicles regarding the balance of the
involved and the estimated average cost of repair provisions.
and replacement, and labor cost, which involves a
number of assumptions and judgments. Any We reviewed the adequacy of
increase or decrease in the provision would have a disclosures in the financial
significant impact on the financial statements. statements.
Refer to Note III 23, 33 and Note V 28 of the
consolidated financial statements for the
disclosures of the provision for warranties.
82
Auditor’s Report (continued)
Ernst & Young Hua Ming Shen Zi (2023) No. 60662431_V01
Chongqing Changan Automobile Company Limited
Key audit matters (continued)
Key audit matter How our audit addressed the key audit
matter
Capitalization of internal development costs
The research and development activities With regard to the capitalization of internal
launched by Chongqing Changan Automobile development costs audited by us:
Company Limited mainly include technology
development, product process design and We understood, evaluated and
product manufacturing process design. validated the key controls over the
Management capitalized the costs on capitalization of internal development
development projects met the criteria set out in costs.
the accounting standard for capitalization.
We assessed the criteria set by the
The expenditures in development stage are management related to the
capitalized that should meet all the conditions capitalization of the costs under
including technically feasible, use or sale development stage. We assessed
intention, market, finance, resources, and etc. the accuracy of the start point and the
The judgment should be made according to stop point for capitalization of internal
every project and agreed by all related development costs. We also tested
departments. In addition, for projects that samples of projects to review the
have been capitalized in the past, the judgment feasibility reports and other reports for
whether the expenditures in development can important stages.
be continuing capitalized should be made
according the latest progress and future We reviewed the adequacy of
expectations of the project. The judgment disclosures in the financial statements.
made by the management would have a
significant impact on the financial statements.
Refer to Note III 18, 33 and Note V 17 of the
consolidated financial statements for the
disclosures of capitalization of internal
development costs.
83
Auditor’s Report (continued)
Ernst & Young Hua Ming Shen Zi (2023) No. 60662431_V01
Chongqing Changan Automobile Company Limited
Other information
The management of the Chongqing Changan Automobile Company Limited (the
“Management”) is responsible for the other information. The other information comprises
the information included in the annual report, other than the financial statements and our
auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially
inconsistent with the financial statements or our knowledge obtained in the audit or
otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement
of this other information, we are required to report that fact. We have nothing to report in
this regard.
Management’s and governance’ responsibility for the financial statements
The Management is responsible for the preparation and fair presentation of these financial
statements in accordance with ASBEs, and for designing, implementing and maintaining
such internal control as the management determines is necessary to enable the preparation
of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, the Management is responsible for assessing the
Company’s ability to continue as a going concern, disclosing, as applicable, matters related
to going concern and using the going concern basis of accounting, unless the management
either intends to liquidate the Company or to cease operations or has no realistic alternative
but to do so.
Those charged with governance are responsible for overseeing the Company’s financial
reporting process.
84
Auditor’s Report (continued)
Ernst & Young Hua Ming Shen Zi (2023) No. 60662431_V01
Chongqing Changan Automobile Company Limited
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as
a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance
but is not a guarantee that an audit conducted in accordance with CSAs will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are
generally considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these financial
statements.
As part of an audit in accordance with CSAs, we exercise professional judgement and
maintain professional skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the management.
(4) Conclude on the appropriateness of the management’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Company’s
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditor’s report to the related disclosures in the
financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause the Company to cease to
continue as a going concern.
(5) Evaluate the overall presentation including the disclosures, structure and content of the
financial statements, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
85
Auditor’s Report (continued)
Ernst & Young Hua Ming Shen Zi (2023) No. 60662431_V01
Chongqing Changan Automobile Company Limited
Auditor’s responsibilities for the audit of the financial statements (continued)
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the
entities or business activities within the Company to express an opinion on the financial
statements. We are responsible for the direction, supervision and performance of the
Group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the financial statements of the current
period and are therefore the key audit matters. We describe these matters in our auditor’s
report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in
our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
Qiao Chun
Ernst & Young Hua Ming (LLP) Chinese Certified Public Accountant
(Engagement partner)
Yuan Yong
Chinese Certified Public Accountant
Beijing, the People’s Republic of China 16 April 2023
86
Chongqing Changan Automobile Company Limited
CONSOLIDATED BALANCE SHEET
31 December 2022
(Expressed in Renminbi Yuan)
Assets Notes V 2022/12/31 2021/12/31
Current assets
Cash 1 53,530,183,827.34 51,976,242,149.37
Financial assets held for trading 2 280,315,571.09 195,798,300.00
Notes receivable 3 35,849,660,652.96 24,267,633,416.65
Accounts receivable 4 3,068,414,415.29 1,675,427,534.87
Prepayments 5 749,572,262.00 3,241,248,831.28
Other receivables 6 1,261,157,951.14 632,122,942.37
Inventories 7 5,823,307,512.90 6,852,874,420.59
Contract assets 8 458,389,187.10 1,151,292,247.36
Other current assets 9 1,054,779,668.19 1,147,798,871.42
Total current assets 102,075,781,048.01 91,140,438,713.91
Non-current assets
Long-term
equity investments 10 14,406,662,456.28 13,245,374,860.55
Other equity instrument
investment 11 489,950,000.00 701,409,600.00
Investment property 12 6,422,715.04 6,649,426.60
Fixed assets 13 19,346,764,691.44 21,325,959,850.16
Construction in progress 14 1,387,898,218.64 1,460,176,539.43
Right-of-use assets 15 100,813,386.01 66,313,062.98
Intangible assets 16 4,446,385,255.68 4,385,997,657.67
Development expenditure 17 723,211,177.47 727,568,248.78
Goodwill 18 9,804,394.00 48,883,188.37
Long-term deferred expenses 19 26,375,422.17 15,032,814.19
Deferred tax assets 20 3,028,487,187.18 2,280,819,516.99
Total non-current assets 43,972,774,903.91 44,264,184,765.72
TOTAL ASSETS 146,048,555,951.92 135,404,623,479.63
The notes form an integral part of the financial statements.
87
Chongqing Changan Automobile Company Limited
CONSOLIDATED BALANCE SHEET (continued)
31 December 2022
(Expressed in Renminbi Yuan)
Notes V 2022/12/31 2021/12/31
Current liabilities
Short-term loans 21 29,000,000.00 19,000,000.00
Notes payable 22 22,072,793,864.83 24,292,268,371.12
Account payable 23 29,449,664,138.75 23,650,604,870.98
Contract liabilities 24 5,655,256,792.66 9,840,509,514.39
Payroll payable 25 2,807,158,489.85 2,566,570,928.52
Tax payable 26 1,749,946,082.32 1,121,313,397.52
Other payables 27 6,082,766,424.67 4,562,626,344.69
Contingent liabilities 28 4,589,299,321.49 3,839,015,677.84
Non-current liabilities due within
one year 29 885,723,901.34 533,839,583.57
Other current liabilities 30 6,627,044,667.62 5,680,959,029.22
Total current liabilities 79,948,653,683.53 76,106,707,717.85
Non-current liabilities
Long-term loans 31 36,000,000.00 600,000,000.00
Bonds payable 32 999,528,301.88 -
Lease Liabilities 33 60,205,397.98 38,679,735.59
Long-term account payable 34 553,518,750.12 825,473,490.08
Long term payroll payable 35 35,013,000.00 39,103,000.00
Deferred income 36 347,568,549.62 924,749,731.12
Deferred tax liabilities 20 237,036,741.16 217,441,992.37
Other non-current liabilities 37 882,226,966.14 786,227,868.42
Total non-current liabilities 3,151,097,706.90 3,431,675,817.58
Total liabilities 83,099,751,390.43 79,538,383,535.43
The notes form an integral part of the financial statements.
88
Chongqing Changan Automobile Company Limited
CONSOLIDATED BALANCE SHEET (continued)
31 December 2022
(Expressed in Renminbi Yuan)
Notes V 2022/12/31 2021/12/31
Owners’ equity
Share capital 38 9,921,799,422.00 7,632,153,402.00
Capital reserves 39 8,532,806,685.77 9,776,193,360.38
Less: treasury shares 40 627,060,416.52 655,812,327.60
Other
comprehensive Income 41 98,841,615.42 69,442,469.53
Special reserves 42 24,090,898.05 27,988,260.61
Surplus reserves 43 3,528,137,635.53 2,982,292,413.67
Retained earnings 44 41,379,489,865.45 35,900,674,525.13
Equity attributable to owners 62,858,105,705.70 55,732,932,103.72
Minority interests 90,698,855.79 133,307,840.48
Total equity 62,948,804,561.49 55,866,239,944.20
TOTAL LIABILITIES
AND OWNERS’ EQUITY 146,048,555,951.92 135,404,623,479.63
The financial statements have been signed by:
Legal Principal in Charge Chief
Representative: of Accountancy: Accountant:
The notes form an integral part of the financial statements.
89
Chongqing Changan Automobile Company Limited
CONSOLIDATED INCOME STATEMENT
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
Notes V 2022 2021
Operating revenue 45 121,252,864,085.40 105,141,877,237.05
Less: Operating cost 45 96,409,610,873.76 87,648,705,534.14
Tax and surcharges 46 4,101,847,822.50 3,972,433,040.45
Operating expenses 47 5,138,270,162.95 4,645,654,234.59
General and administrative
expenses 48 3,532,458,198.76 3,499,654,508.49
Research and development
expenses 49 4,315,444,864.76 3,515,029,178.76
Financial income 50 (1,017,305,743.08) (780,923,197.18)
Interest expense 48,683,490.36 45,160,385.56
Interest income 1,014,346,758.69 868,952,893.13
Add: Other incomes 51 529,819,888.31 330,174,796.23
Investment income/(loss) 52 (768,957,070.79) 1,013,650,091.28
Including: Investment
income/(loss)
from associates and joint
venture (3,060,648,491.82) 924,827,870.13
Earnings from fair value
changes 53 3,570,229.29 42,078,804.00
Impairment loss of credit 54 (32,242,010.27) (23,050,864.57)
Impairment loss on assets 55 (945,853,716.20) (1,019,254,832.79)
Gain on disposal of assets 56 74,862,481.00 745,601,530.26
Operating profit 7,633,737,707.09 3,730,523,462.21
Add: Non-operating income 57 128,910,416.79 130,170,270.12
Less: Non-operating expenses 58 54,391,039.79 40,084,896.60
Total profit 7,708,257,084.09 3,820,608,835.73
Less: Income tax expense 60 (36,425,271.88) 216,390,645.75
Net profit 7,744,682,355.97 3,604,218,189.98
Classification by going concern
Net profit from
continuing operations 7,744,682,355.97 3,604,218,189.98
Classification by ownership
attribution
Net profit attributable
to owners 7,798,451,093.72 3,552,463,320.03
Minority interests (53,768,737.75) 51,754,869.95
The notes form an integral part of the financial statements.
90
Chongqing Changan Automobile Company Limited
CONSOLIDATED INCOME STATEMENT (continued)
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
Notes V 2022 2021
Other comprehensive income,
net of tax
Total comprehensive income
attributable to owners,
net of tax 34,464,805.89 (8,978,251.25)
Other comprehensive income not to be
reclassified to profit or loss in
subsequent periods
Change in net liability or assets from
defined benefit plan 112,000.00 (1,519,000.00)
Other comprehensive income under
the equity method cannot be converted
into profit or loss 602,832.07 (1,279,985.89)
Changes in fair value of other equity
investment (4,675,000.00) 8,006,660.00
(3,960,167.93) 5,207,674.11
Other comprehensive income to be
reclassified to profit or loss in
subsequent periods:
Other comprehensive income under
the equity method to be converted into
profit or loss (75,815.98) -
Foreign currency reserve 38,500,789.80 (14,185,925.36)
38,424,973.82 (14,185,925.36)
Total comprehensive income attributable
to minority interests, net of tax (1,916.69 ) 19,231.15
Total comprehensive income 7,779,145,245.17 3,595,259,169.88
Including:
Total comprehensive income
7,832,915,899.61 3,543,485,068.78
attributable to owners
Total comprehensive income
attributable to minority interest (53,770,654.44) 51,774,101.10
Earnings per share
Basic earnings per share 61 0.7960 0.3616
Diluted earnings per share 61 0.7799 0.3579
The notes form an integral part of the financial statements.
91
Chongqing Changan Automobile Company Limited
CONSOLIDATED STATMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
2022
Equity attributable to owners
Share capital Capital Less: treasury Other Special Surplus Retained Subtotal Minority Total equity
reserves shares comprehensive reserves reserves earnings interest
income
At 31 December 2021 7,632,153,402.00 9,776,193,360.38 655,812,327.60 69,442,469.53 27,988,260.61 2,982,292,413.67 35,900,674,525.13 55,732,932,103.72 133,307,840.48 55,866,239,944.20
Changes during the year:
Total comprehensive income - - - 34,464,805.89 - - 7,798,451,093.72 7,832,915,899.61 (53,770,654.44) 7,779,145,245.17
Capital contributed by owners and
capital decreases
1.Amount of share-based
payments included in
shareholders' equity - 380,209,900.00 - - - - - 380,209,900.00 - 380,209,900.00
2.Others - 666,049,445.39 - - - - - 666,049,445.39 - 666,049,445.39
Distribution of profit
1.Surplus reserve - - - - - 545,845,221.86 (545,845,221.86) - - -
2.Distribution to owners - - (28,751,911.08) - - - (1,778,856,191.54 ) (1,750,104,280.46) - (1,750,104,280.46)
Internal transfer of shareholder
equity
1.Capital reserve converted into
share capital 2,289,646,020.00 (2,289,646,020.00) - - - - - - - -
2.Other comprehensive income
converted to retained earnings - - - (5,065,660.00) - - 5,065,660.00 - - -
Special reserves
1.Provided - - - - 104,696,987.95 - - 104,696,987.95 3,726,050.64 108,423,038.59
2.Ultilized - - - - (108,594,350.51) - - (108,594,350.51) (3,439,069.58) (112,033,420.09)
Disposal of subsidiaries - - - - - - - - 10,874,688.69 10,874,688.69
At 31 December 2022 9,921,799,422.00 8,532,806,685.77 627,060,416.52 98,841,615.42 24,090,898.05 3,528,137,635.53 41,379,489,865.45 62,858,105,705.70 90,698,855.79 62,948,804,561.49
The notes form an integral part of the financial statements.
92
Chongqing Changan Automobile Company Limited
CONSOLIDATED STATMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (continued)
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
2021
Equity attributable to owners
Share capital Capital Less: treasury Other Special Surplus Retained Subtotal Minority Total equity
reserves shares comprehensive reserves reserves earnings interest
income
At 31 December 2020 5,363,396,174.00 10,930,781,918.64 - 78,420,720.78 40,847,443.41 2,681,698,087.00 34,315,048,892.26 53,410,193,236.09 70,114,229.66 53,480,307,465.75
Changes during the year:
Total comprehensive income - - - (8,978,251.25) - - 3,552,463,320.03 3,543,485,068.78 51,774,101.10 3,595,259,169.88
Capital contributed by owners and
capital decreases
1.Amount of share-based
payments included in
shareholders' equity 93,956,600.00 858,413,347.92 683,830,080.00 - - - - 268,539,867.92 - 268,539,867.92
2.Cancellation of restricted
shares (1,036,000.00) (3,667,440.00) (4,703,440.00) - - - - - - -
3.Others - 166,502,161.82 - - - - - 166,502,161.82 11,376,990.65 177,879,152.47
Distribution of profit
1.Surplus reserve - - - - - 300,594,326.67 (300,594,326.67) - - -
2.Distribution to owners - - (23,314,312.40) - - - (1,666,243,360.49) (1,642,929,048.09) - (1,642,929,048.09)
Internal transfer of shareholder
equity
1.Capital reserve converted into
share capital 2,175,836,628.00 (2,175,836,628.00) - - - - - - - -
Special reserves
1.Provided - - - - 85,032,433.05 - - 85,032,433.05 2,604,021.39 87,636,454.44
2.Ultilized - - - - (97,891,615.85) - - (97,891,615.85) (2,561,502.32) (100,453,118.17)
At 31 December 2021 7,632,153,402.00 9,776,193,360.38 655,812,327.60 69,442,469.53 27,988,260.61 2,982,292,413.67 35,900,674,525.13 55,732,932,103.72 133,307,840.48 55,866,239,944.20
The notes form an integral part of the financial statements.
93
Chongqing Changan Automobile Company Limited
CONSOLIDATED CASH FLOW STATEMENT
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
Notes V 2022 2021
CASH FLOWS FROM
OPERATING ACTIVITIES
Cash received from sale of goods
or rendering of services 122,619,321,871.95 128,548,576,993.05
Refunds of taxes 2,134,224,529.98 1,031,417,236.58
Cash received relating to other
operating activities 62 2,441,682,594.87 3,267,694,695.32
Subtotal of cash inflows 127,195,228,996.80 132,847,688,924.95
Cash paid for goods and services 97,369,979,246.46 90,214,683,838.52
Cash paid to and on behalf of
employees 9,188,241,321.99 7,600,050,569.34
Cash paid for all types of taxes 8,604,964,741.08 6,961,836,584.35
Cash paid relating to other
operating activities 62 6,365,696,828.75 5,099,394,721.90
Subtotal of cash outflows 121,528,882,138.28 109,875,965,714.11
Net cash flows from operating
activities 63 5,666,346,858.52 22,971,723,210.84
CASH FLOWS FROM INVESTING
ACTIVITIES
Cash received from recovery
of investment 131,455,724.43 79,892,280.00
Cash received from return
on investment 1,750,853,747.11 985,428,249.71
Net cash received from disposal of
fixed assets, intangible assets
and other long-term assets 609,907,900.54 85,134,014.22
Cash received relating to other
investing activities 62 - 300,000,000.00
Subtotal of cash inflows 2,492,217,372.08 1,450,454,543.93
Cash paid for acquisition of
fixed assets, intangible assets
and other long-term assets 1,405,004,336.97 2,009,773,990.95
Cash paid for investment 3,226,058,570.32 929,905,994.00
Other cash disbursed
in connection with
investment activities 62 815,126,333.76 -
Subtotal of cash outflows 5,446,189,241.05 2,939,679,984.95
Net cash flows from investing
activities (2,953,971,868.97) (1,489,225,441.02))
94
The notes form an integral part of the financial statements.
95
Chongqing Changan Automobile Company Limited
CONSOLIDATED CASH FLOW STATEMENT (continued)
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
Notes V 2022 2021
CASH FLOWS FROM
FINANCING ACTIVITIES:
Cash received from absorbing
investments - 942,392,939.15
Including: cash received by the
subsidiary from absorbing
minority shareholders' investment
- 4,812,859.15
Cash received from borrowings 1,086,598,301.88 48,000,000.00
Cash received relating to
other financing activities 62 1,705,726,148.77 836,125,136.66
Sub-total of cash inflows 2,792,324,450.65 1,826,518,075.81
Cash repayments of borrowings 391,370,000.00 708,000,000.00
Cash paid for distribution of
dividends or profits and
interest expenses 1,803,960,937.04 1,704,968,349.69
Cash paid relating to
other financing activities 62 372,563,245.60 2,009,509,141.05
Sub-total of cash outflows 2,567,894,182.64 4,422,477,490.74
Net cash flows from financing activities
224,430,268.01 (2,595,959,414.93)
EFFECT OF CHANGES IN
EXCHANGE RATE ON CASH 36,712,955.19 (24,589,577.53)
NET INCREASE IN CASH
AND CASH EQUIVALENTS 2,973,518,212.75 18,861,948,777.36
Add: Opening balance of
cash and cash equivalents 49,517,916,834.99 30,655,968,057.63
CLOSING BALANCE OF
CASH AND CASH EQUIVLANT 63 52,491,435,047.74 49,517,916,834.99
The notes form an integral part of the financial statements.
96
Chongqing Changan Automobile Company Limited
BALANCE SHEET
31 December 2022
(Expressed in Renminbi Yuan)
Notes
2022/12/31 2021/12/31
XIV
Current assets
Cash 44,742,705,933.76 41,917,770,676.45
Financial assets held
for trading 251,165,128.80 195,798,300.00
Notes receivable 32,497,209,409.96 21,500,746,660.99
Accounts receivable 1 5,538,504,821.82 7,931,510,606.59
Prepayments 519,014,279.72 2,935,068,191.78
Other receivables 2 859,026,748.64 1,756,623,581.93
Inventories 2,872,390,838.54 4,137,987,048.19
Contract assets 221,555,444.48 635,112,994.60
Other current assets 199,954,784.05 21,082,615.46
Total current assets 87,701,527,389.77 81,031,700,675.99
Non-current assets
Long-term equity investments 3 17,385,137,116.25 17,660,819,978.70
Other equity instrument
investment 489,950,000.00 691,156,200.000
Fixed assets 14,214,227,798.06 16,001,089,813.79
Construction in progress 895,860,965.16 475,209,255.90
Right-of-use assets 78,806,182.57 53,789,648.12
Intangible assets 3,299,143,861.49 3,205,472,940.52
Development expenditure 616,814,902.46 422,291,074.50
Long-term deferred expenses 24,406,892.18 12,065,475.24
Deferred tax assets 2,631,189,529.75 1,893,957,371.71
Total non-current assets 39,635,537,247.92 40,415,851,758.48
TOTAL ASSETS 127,337,064,637.69 121,447,552,434.47
The notes form an integral part of the financial statements.
97
Chongqing Changan Automobile Company Limited
BALANCE SHEET (continued)
31 December 2022
(Expressed in Renminbi Yuan)
Notes
2022/12/31 2021/12/31
XIV
Current liabilities
Notes payable 18,728,133,049.99 19,118,739,562.85
Accounts payable 21,488,548,997.96 20,181,845,700.58
Contract liabilities 3,997,514,972.13 8,446,500,016.04
Payroll payable 2,436,938,973.59 2,074,732,440.77
Taxes payable 1,376,448,691.45 784,928,251.22
Other payables 5,425,776,798.83 4,330,506,737.23
Contingent liabilities 3,936,444,965.49 3,050,701,028.41
Non-current liabilities due
within one year 635,180,849.52 374,210,756.73
Other current liabilities 5,932,680,982.04 4,955,516,106.11
Total current liabilities 63,957,668,281.00 63,317,680,599.94
Non-current liabilities
Long term loans 36,000,000.00 600,000,000.00
Bonds Payable 999,528,301.88 -
Lease Liabilities 45,437,270.79 30,751,928.99
Long term payable 144,571,302.45 120,409,242.99
Long term payroll payable 20,565,000.00 21,995,000.00
Deferred income 150,000,000.00 150,000,000.00
Deferred tax liabilities 195,053,909.31 178,583,323.79
Other non-current liabilities 844,435,549.31 715,087,257.75
Total non-current liabilities 2,435,591,333.74 1,816,826,753.52
Total liabilities 66,393,259,614.74 65,134,507,353.46
Owner’s equity
Share capital 9,921,799,422.00 7,632,153,402.00
Capital reserves 8,047,195,325.61 9,293,065,334.91
Less: treasury shares 627,060,416.52 655,812,327.60
Other comprehensive income 157,416,810.63 166,051,336.11
Special reserves 10,285,640.79 7,552,984.45
Surplus reserves 3,528,137,635.53 2,982,292,413.67
Retained earnings 39,906,030,604.91 36,887,741,937.47
Total owner’s equity 60,943,805,022.95 56,313,045,081.01
TOTAL LIABILITIES
AND OWNERS’ EQUITY 127,337,064,637.69 121,447,552,434.47
98
The notes form an integral part of the financial statements.
99
Chongqing Changan Automobile Company Limited
INCOME STATEMENT
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
Notes
XIV 2022/12/31 2021/12/31
Operating revenue 4 106,665,145,289.28 98,302,939,371.97
Less: Operating cost 4 86,241,479,807.95 84,138,585,800.66
Tax and surcharges 2,941,819,015.41 2,898,309,008.73
Operating expenses 3,664,889,410.65 3,670,173,505.37
General and administrative
expenses 2,913,302,431.16 2,610,713,089.51
Research and development
expenses 4,234,015,352.11 3,371,837,869.71
Financial income (825,576,954.93) (695,999,209.03)
Interest expense 26,032,591.55 39,147,654.54
Interest income 868,071,769.55 752,571,893.13
Add: Other incomes 283,581,332.54 40,860,900.00
Investment income 5 (1,923,078,565.61) 1,531,325,711.97
Including: Investment
Income/(loss) from
associates and
joint venture (3,075,237,898.94) 1,441,363,553.71
Income/(loss) from fair value
changes (25,580,213.00) (2,805,696.00)
Credit impairment loss (15,475,196.02) (8,817,825.93)
Impairment loss (659,679,327.77) (861,714,244.01)
Gain/(loss) on disposal of
assets 33,996,713.38 10,187,339.53
Operating profit 5,188,980,970.45 3,018,355,492.58
Add: Non-operating income 50,112,744.21 23,020,197.15
Less: Non-operating expenses 25,461,278.69 23,902,086.95
Total profit 5,213,632,435.97 3,017,473,602.78
Less: Income tax expense (244,819,782.60) 11,530,336.10
Net profit 5,458,452,218.57 3,005,943,266.68
Classification by going concern
Net profit from
continuing operations 5,458,452,218.57 3,005,943,266.68
100
The notes form an integral part of the financial statements.
101
Chongqing Changan Automobile Company Limited
INCOME STATEMENT (continued)
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
Notes
XIV 2022/12/31 2021/12/31
Other comprehensive income,
net of tax
Total comprehensive income
attributable to owners,
net of tax
Other comprehensive income
not to be reclassified to
profit or loss in
subsequent periods
Change in net liability or
assets from defined
benefit plan 141,000.00 (720,000.00)
Other comprehensive income
under the equity method
cannot be converted into
profit or loss 602,832.07 (1,279,985.89)
Changes in fair value of
other equity investment (4,675,000.00) 8,097,270.00
(3,931,167.93) 6,097,284.11
Other comprehensive income
to be reclassified to profit
or loss in subsequent periods
Reclassification of financial
assets recognized in other
comprehensive income
Amounts under equity
method 70,412.45 -
Total comprehensive income 5,454,591,463.09 3,012,040,550.79
The notes form an integral part of the financial statements.
102
Chongqing Changan Automobile Company Limited
STATMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
2022
Share capital Capital reserves Less: treasury Other Special reserves Surplus reserves Retained earnings Total owner’s equity
shares comprehensive income
At 31 December 2021 7,632,153,402.00 9,293,065,334.91 655,812,327.60 166,051,336.11 7,552,984.45 2,982,292,413.67 36,887,741,937.47 56,313,045,081.01
Changes during the year:
Total comprehensive income - - - (3,860,755.48) - - 5,458,452,218.57 5,454,591,463.09
Capital contributed by owners and capital
decreases
1.Amount of share-based payments included
in shareholders' equity - 380,209,900.00 - - - - - 380,209,900.00
2.Others - 663,566,110.70 - - - - - 663,566,110.70
Distribution of profit
1.Surplus reserve - - - - - 545,845,221.86 (545,845,221.86) -
2.Distribution to owners - - (28,751,911.08) - - - (1,778,856,191.54) (1,750,104,280.46)
Internal transfer of shareholder equity
1.Capital reserve converted into share capital 2,289,646,020.00 (2,289,646,020.00) - - - - - -
2.Other comprehensive earnings converted
to retained earnings - - - (4,773,770.00) - - 4,773,770.00 -
Special reserves
1.Provided - - - - 61,019,966.31 - - 61,019,966.31
2.Ultilized - - - - (58,287,309.97 ) - - (58,287,309.97)
Disposition of subsidiaries - - - - - - (120,235,907.73) (120,235,907.73)
At 31 December 2022 9,921,799,422.00 8,047,195,325.61 627,060,416.52 157,416,810.63 10,285,640.79 3,528,137,635.53 39,906,030,604.91 60,943,805,022.95
The notes form an integral part of the financial statements.
103
Chongqing Changan Automobile Company Limited
STATMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (continued)
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
2021
Share capital Capital reserves Less: treasury Other Special reserves Surplus reserves Retained earnings Total owner’s equity
shares comprehensive income
At 31 December 2020 5,363,396,174.00 10,440,896,902.52 - 159,954,052.00 7,505,438.57 2,681,698,087.00 35,848,636,357.95 54,502,087,012.04
Changes during the year:
Total comprehensive income - - - 6,097,284.11 - - 3,005,943,266.68 3,012,040,550.79
Capital contributed by owners and capital
decreases
1.Amount of share-based payments included
in shareholders' equity 93,956,600.00 858,413,347.92 683,830,080.00 - - - - 268,539,867.92
2.Cancellation of restricted shares (1,036,000.00) (3,667,440.00) (4,703,440.00) - - - - -
3.Others - 173,259,152.47 - - - - - 173,259,152.47
Distribution of profit
1.Surplus reserve - - - - - 300,594,326.67 (300,594,326.67) -
2.Distribution to owners - - (23,314,312.40) - - - (1,666,243,360.49) (1,642,929,048.09)
Internal transfer of shareholder equity
1.Capital reserve converted into share capital 2,175,836,628.00 (2,175,836,628.00) - - - - - -
Special reserves
1.Provided - - - - 52,743,013.00 - - 52,743,013.00
2.Ultilized - - - - (52,695,467.12) - - (52,695,467.12)
At 31 December 2021 7,632,153,402.00 9,293,065,334.91 655,812,327.60 166,051,336.11 7,552,984.45 2,982,292,413.67 36,887,741,937.47 56,313,045,081.01
The notes form an integral part of the financial statements.
104
Chongqing Changan Automobile Company Limited
CASH FLOW STATEMENT
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
2022 2021
CASH FLOWS FROM
OPERATING ACTIVITIES
Cash received from sale of goods
or rendering of services 101,043,628,683.39 111,833,846,959.34
Refunds of taxes 215,500,668.27 -
Cash received relating to other
operating activities 2,041,143,114.40 1,467,818,250.53
Subtotal of cash inflows 103,300,272,466.06 113,301,665,209.87
Cash paid for goods and services 80,159,943,881.88 78,605,485,054.62
Cash paid to and on behalf of
employees 6,388,175,996.37 5,542,027,671.21
Cash paid for all types of taxes 5,761,670,921.49 5,258,611,669.40
Cash paid relating to other
operating activities 4,922,708,175.82 4,133,449,098.11
Subtotal of cash outflows 97,232,498,975.56 93,539,573,493.34
Net cash flows from operating
activities 6,067,773,490.50 19,762,091,716.53
CASH FLOWS FROM INVESTING
ACTIVITIES
Cash received from recovery
of investment 121,799,633.86 79,892,280.00
Cash received from return
on investment 1,809,926,134.11 918,427,083.03
Net cash received from disposal of
fixed assets, intangible assets
and other long-term assets 554,362,304.63 14,915,738.17
Cash received relating to other
investing activities - 500,000,000.00
Subtotal of cash inflows 2,486,088,072.60 1,513,235,101.20
Cash paid for acquisition of
fixed assets, intangible assets
and other long-term assets 1,064,936,821.33 1,479,062,944.86
Cash paid for investment 3,506,058,570.32 1,429,902,283.00
Subtotal of cash outflows 4,570,995,391.65 2,908,965,227.86
Net cash flows from investing
activities (2,084,907,319.05) (1,395,730,126.66)
The notes form an integral part of the financial statements.
105
Chongqing Changan Automobile Company Limited
CASH FLOW STATEMENT (continued)
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
2022 2021
CASH FLOWS FROM
FINANCING ACTIVITIES:
Cash received from absorbing
investments - 683,830,080.00
Cash received from borrowings 1,039,528,301.88 -
Sub-total of cash inflows 1,039,528,301.88 683,830,080.00
Cash repayments of borrowings 354,300,000.00 611,000,000.00
Cash paid for distribution of
dividends or profits and
interest expenses 1,802,234,067.67 1,702,697,363.56
Cash paid relating to
other financing activities 23,280,631.67 37,526,537.08
Sub-total of cash outflows 2,179,814,699.34 2,351,223,900.64
Net cash flows from financing activities (1,140,286,397.46) (1,667,393,820.64)
EFFECT OF CHANGES IN
EXCHANGE RATE ON CASH - -
NET INCREASE IN CASH
AND CASH EQUIVALENTS 2,842,579,773.99 16,698,967,769.23
Add: Opening balance of
cash and cash equivalents 41,889,838,553.29 25,190,870,784.06
CLOSING BALANCE OF
CASH AND CASH EQUIVLANT 44,732,418,327.28 41,889,838,553.29
The notes form an integral part of the financial statements.
106
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
I CORPORATE INFORMATION
Chongqing Changan Automobile Company Limited (hereafter referred to as “the Company”) is a
company limited by shares registered in Chongqing, People’s Republic of China. It was
established on 31 October 1996 with an indefinite business period. The ordinary A shares of
Renminbi issued by the company and the B shares of domestically listed foreign shares have been
listed on the Shenzhen Stock Exchange. The company is headquartered at 260 Jianxin East Road,
Jiangbei District, Chongqing, China, and its office address is T2 Building, No. 2, Financial City, No.
61 Dongshengmen Road, Jiangbei District, Chongqing, China.
In 2022, due to the capital reserve conversion plan, the total share capital of the company
increased by RMB2,289,646,020.00. On 31 December 2022, the total share capital of the
company was RMB9,921,799,422.00.
Until December 31, 2022, the controlling shareholder of the company, China Changan
Automobile Group Co., Ltd. (hereinafter referred to as "China Changan"), and its wholly-owned
subsidiary, Zhonghui Futong (Hong Kong) Investment Co., Ltd., hold a total of 2,063,588,975
ordinary shares of the company, representing an equity ratio of 20.80%. China South Industries
Group Co., Ltd. (hereinafter referred to as "South Group"), which is the parent company of China
Changan, and its wholly-owned subsidiaries, Nanfang Industrial Asset Management Co., Ltd.
(hereinafter referred to as "Nanfang Asset") and China Southern Industries International Holdings
(Hong Kong) Co., Ltd., hold a total of 1,921,622,884 ordinary shares of the Company, representing
a shareholding ratio of 19.37%. China Changan and South Group hold a total of 3,985,211,859
ordinary shares of the company, with an equity ratio of 40.17%.
The company and its subsidiaries collectively refer to as “the Group”, and its main business
activities are the manufacturing and sales of automobiles (including cars), automobile engine
products, and supporting parts.
The holding company and ultimate holding company of the Company are China Changan and
China South Group respectively.
According to the Articles of Association, the financial statements, which has been approved by
the board of directors on 16 April 2023, was submitted to general meeting of shareholders for
approval.
The scope of consolidation in the consolidated financial statement is determined based on
control. For the consolidation scope of this year, please refer to Note VI.
107
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
II BASIS OF PREPERATION
The financial statements have been prepared in accordance with Accounting Standards for
Business Enterprises-Basic Standard and the specific standards issued and modified
subsequently, 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.
The financial statements have been prepared under the historical cost convention, except for
certain financial instruments. If the assets are impaired, the corresponding provisions should be
made accordingly.
III SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
According to the actual production and operation characteristics, the Group formulated the
specific accounting policies and accounting estimates, mainly reflected in provision of accounts
receivables, inventory valuation, depreciation of fixed assets, intangible assets amortization,
condition of capitalization of research and development expense and revenue recognition and
measurement.
1. Statement of compliance with Accounting Standards for Business Enterprises
The financial statements present fairly and fully, the financial position of the company on 31
December 2022 and the financial results and the cash flows for the year then ended in accordance
with Accounting Standards for Business Enterprises.
2. Accounting year
The accounting year of the Group is from 1 January to 31 December of each calendar year.
3. Functional currency
The Group’s functional and reporting currency is the Renminbi (“RMB”). Unless otherwise stated,
the unit of the currency is Yuan. Each entity in the Group determines its own functional currency
in accordance with the operating circumstances. At the end of the reporting period, the foreign
currency financial statements are translated into the reporting currency of the Company of RMB.
4. Business combination
Business combinations are classified into business combinations involving entities under
common control and business combinations involving entities not under common control.
108
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
4. Business combination (continued)
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 which, 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 involving
entities under common control 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.
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. 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.
Goodwill is initially recognized and measured at cost, being the excess of the aggregate of the
fair value of the consideration transferred (or the fair value of the equity securities issued) and
any fair value of the Group’s previously held equity interest in the acquiree over the Group’s
interest in the fair value of the acquiree’s net identifiable assets. After initial recognition,
goodwill is measured at cost less any accumulated impairment losses. Where the aggregate of
the fair value of the consideration transferred (or the fair value of the equity securities issued) and
any fair value of the Group’s previously held equity interest in the acquiree is lower than the
Group’s interest in the fair value of the acquiree’s net identifiable assets, the Group reassesses
the measurement of the fair value of the acquiree’s identifiable assets, liabilities and contingent
liabilities and the fair value of the consideration transferred (or the fair value of the equity
securities issued), together with the fair value of the Group’s previously held equity interest in the
acquiree. If after that reassessment, the aggregate of the fair value of the consideration
transferred (or the fair value of the equity securities issued) and the Group’s previously held equity
interest in the acquiree is still lower than the Group’s interest in the fair value of the acquiree’s
net identifiable assets, the Group recognize the remaining difference in profit or loss.
109
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
5. Consolidated financial statements
The scope of the consolidated financial statements, which include the financial statements of the
Company and all of its subsidiaries, is determined on the basis of control. A subsidiary is an entity
that is controlled by the Company (such as an enterprise, a deemed separate entity, or a
structured entity controlled by the Company).
In the preparation of the consolidated financial statements, the financial statements of the
subsidiaries are prepared for the same reporting period as the Company, using consistent
accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows
relating to transactions between members of the Group are eliminated in full on consolidation.
When the current loss belong to minorities of the subsidiary exceeds the beginning equity of the
subsidiary belong to minorities, the exceeded part will still deduct the equity belong to minorities.
With respect to subsidiaries acquired through business combinations involving entities not under
common control, the operating 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.
If the changes of relevant facts and circumstances will result in the changes of one or more control
elements, then the Group should reassess whether it has taken control of the investee.
6. Joint venture arrangement classification and joint operation
Joint venture arrangements are classified into joint operation and joint venture. Joint operation
refers to those joint venture arrangements, relevant assets and liabilities of which are enjoyed
and assumed by the joint ventures. Joint ventures refer to those joint venture arrangements, only
the right to net assets of which is enjoyed by the joint ventures.
Any joint venture shall recognize the following items related to its share of benefits in the joint
operation and conduct accounting treatment in accordance with relevant accounting standards
for business enterprises: assets it solely holds and its share of jointly-held assets based on its
percentage; liabilities it solely assumes and its share of jointly-assumed liabilities based on its
percentage; incomes from sale of output enjoyed by it from the joint operation; incomes from
sale of output from the joint operation based on its percentage; and separate costs and costs for
the joint operation based on its percentage.
110
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
7. Cash and cash equivalents
Cash comprises cash on hand and bank deposits which can be used for payment at any time; Cash
equivalents are short-term, highly liquid investments held by the Group, that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in
value.
8. Foreign currency translation
The Group translates the amount of foreign currency transactions occurred into functional
currency.
The foreign currency transactions are recorded, on initial recognition in the functional currency,
by applying to the foreign currency amount at the spot exchange rate on 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 other comprehensive income
account of the current period.
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; income and expense in income
statement are translated into Renminbi average exchange rate of the period in which the
transaction occurred (unless the exchange rate fluctuation makes it inappropriate to adopt this
exchange rate for conversion, the spot exchange rate on the date of cash flow shall be adopted
for conversion); total difference between translated assets and 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
(unless the exchange rate fluctuation makes it inappropriate to adopt this exchange rate for
conversion, the spot exchange rate on the date of cash flow shall be adopted for conversion). 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.
111
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
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.
Recognition and derecognition
The Group recognizes a financial asset or a financial liability, when the Group becomes a party to
the contractual provision of the instrument.
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar
financial assets) is primarily derecognized (i.e., removed from the Group’s consolidated balance
sheet) when:
1) the rights to receive cash flows from the financial asset have expired;
2) the Group has transferred its rights to receive cash flows from the financial asset, or has
assumed an obligation to pay the received cash flows in full without material delay to a third party
under a “pass-through” arrangement; and either (a) has transferred substantially all the risks and
rewards of the financial asset, or (b) has neither transferred nor retained substantially all the risks
and rewards of the asset, but has transferred control of the financial asset.
A financial liability is derecognized when the obligation under the liability is discharged or
cancelled, or expires. When an existing financial liability is replaced by another from the same
lender on substantially different terms, or the terms of an existing liability are substantially
modified, such an exchange or modification is treated as a derecognition of the original liability
and a recognition of a new liability, and the difference between the respective carrying amounts
is recognized in profit or loss.
Regular way purchases and sales of financial assets are recognized and derecognized using trade
date accounting. Regular way purchases or sales are purchases or sales of financial assets that
require delivery within the period generally established by regulation or convention in the
marketplace. The trade date is the date that the Group committed to purchase or sell a financial
asset.
Classification and measurement of financial assets
The classification of financial assets at initial recognition depends on the financial asset’s
contractual cash flow characteristics and the Group’s business model for managing them:
financial assets at fair value through profit or loss, financial assets at amortized cost and financial
assets at fair value through other comprehensive income. All affected related financial assets will
be reclassified only if the Group changes its business model for managing financial assets.
Financial assets are measured at fair value on initial recognition, but accounts receivable or notes
receivable arising from the sale of goods or rendering of services that do not contain significant
financing components or for which the Group has applied the practical expedient of not adjusting
the effect of a significant financing component due within one year, are initially measured at the
transaction price.
112
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
9. Financial instruments(continued)
Classification and measurement of financial assets(continued)
For financial assets at fair value through profit or loss, relevant transaction costs are directly
recognized in profit or loss, and transaction costs relating to other financial
The subsequent measurement of financial assets depends on their classification as follows:
Debt investments measured at amortized cost
The Group measures financial assets at amortized cost if both of the following conditions are met:
the financial asset is held within a business model with the objective to hold financial assets in
order to collect contractual cash flows; the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding. Financial assets at amortized cost are subsequently measured using the
effective interest method. Gains and losses are recognized in profit or loss when the asset is
derecognized, modified or impaired.
Debt investments at fair value through other comprehensive income
The Group measures debt investments at fair value through other comprehensive income if both
of the following conditions are met: the financial asset is held within a business model with the
objective of both holding to collect contractual cash flows and selling; the contractual terms of
the financial asset give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding. Interest income is recognized using the
effective interest method. The interest income, impairment losses and foreign exchange
revaluation are recognized in profit or loss. The remaining fair value changes are recognized in
other comprehensive income. Upon derecognition, the cumulative fair value change recognized
in other comprehensive income is recycled to profit or loss.
Equity investments at fair value through other comprehensive income
The Group can elect to classify irrevocably its equity investments which are not held for trading
as equity investments designated at fair value through other comprehensive income. Only the
relevant dividend income (excluding the dividend income explicitly recovered as part of the
investment cost) is recognized in profit or loss. Subsequent changes in the fair value are included
in other comprehensive income,
and no provision for impairment is made. When the financial asset is derecognized, the
accumulated gains or losses previously included in other comprehensive income are transferred
from other comprehensive income to retained earnings.
113
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
9. Financial instruments (continued)
Classification and measurement of financial assets (continued)
Financial assets at fair value through profit or loss
The financial assets other than the above financial assets measured at amortized cost and
financial assets at fair value through other comprehensive income are classified as financial
assets at fair value through profit or loss. Such financial assets are subsequently measured at fair
value with net changes in fair value recognized in profit or loss.
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through
profit or loss, other financial liabilities. For financial liabilities at fair value through profit or loss,
relevant transaction costs are directly recognized in profit or loss, and transaction costs relating
to other financial assets 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 financial liabilities designated upon initial recognition as at fair value through profit or loss.
Financial liabilities held for trading are subsequently measured at fair value with net changes in
fair value recognized in profit or loss. Gains or losses on liabilities designated at fair value through
profit or loss are recognized in profit or loss, except for the gains or losses arising from the Group’s
own credit risk which are presented in other comprehensive income with no subsequent
reclassification to profit or loss.
Other financial liabilities
Other financial liabilities are subsequently measured at amortized cost using the effective
interest method.
114
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
9. Financial instruments (continued)
Impairment of financial assets
On the basis of expected credit loss, the Group carries out impairment treatment on financial
assets, measured at amortized cost and contract assets and recognizes loss reserves
For receivables and contract assets that do not contain significant financing components, the
Group uses a simplified measurement method to measure the loss provision based on the
expected credit loss amount for the entire duration.
For financial assets other than the simplified measurement method mentioned above, the Group
assesses on each balance sheet date whether its credit risk has not increased significantly since
initial recognition, it is in the first stage. The Group measures the loss provision based on the
amount equivalent to the expected credit loss in the next 12 months, and calculates the interest
income based on the book balance and the actual interest rate; if the credit risk has increased
significantly since initial recognition but has not yet suffered credit impairment, it is in the second
at this stage, the Group measures the loss provision based on the amount equivalent to the
expected credit loss for the entire duration, and calculates the interest income based on the book
balance and the actual interest rate; If credit impairment occurs after initial recognition, it is in
the third stage. The amount of expected credit losses is measured over the entire duration of the
loss allowance, and interest income is calculated based on amortized cost and effective interest
rate. For financial instruments with low credit risk on the balance sheet date, the Group assumes
that their credit risk has not increased significantly since initial recognition.
The Group assesses the expected credit losses of financial instruments based on individual items
and portfolios. The Group has considered the credit risk characteristics of different customers and
evaluated the expected credit losses of accounts receivable and other receivables based on the
ageing combination.
Please refer to Note VII,3 for the disclosure of the Group’s judgment criteria for significant
increase in credit risk, the definition of credit impairment assets that have occurred, and
assumptions about the expected credit loss measurement.
When the Group no longer reasonably expects to be able to fully or partially recover the
contractual cash flows of financial assets, the Group directly writes down the book balance of the
financial asset.
115
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
9. Financial instruments (continued)
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance
sheet if there is a currently enforceable legal right to offset the recognized amounts; and there is
an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously.
Transfer of financial assets
If the Group transfers substantially all the risks and rewards of ownership of the financial asset,
the Group derecognizes the financial asset; and if the Group retains substantially all the risks and
rewards of the financial asset, the Group does not derecognize the 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) if 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.
10. Inventories
Inventory includes raw materials, goods in transit, work in progress, finished goods, consigned
processing materials, low-value consumables.
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.
The Group applies a perpetual counting method of inventory.
At the balance sheet date, the inventory is stated at the lower of cost and net realizable value. If
the cost is higher than the net 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.
116
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
11. Long-term equity investments
Long-term equity investments include investments in subsidiaries, joint ventures and associates.
Long-term equity investments are recognized at initial investment cost upon acquisition. For a
long-term equity investment acquired through a business combination under common control,
the initial investment cost of the long-term equity investment shall be the absorbing party’s
share of the carrying amount of the owners’ equity of the party being absorbed in the
consolidated financial statements of the ultimate controlling party at combination date. The
difference between the initial investment cost and the carrying amount of cash paid, non-cash
assets transferred and liabilities assumed shall be adjusted to capital reserve. If the balance of
capital reserve is not sufficient, any excess shall be adjusted to retained earnings. Any other
comprehensive income previously recognized shall be accounted for on the same basis as would
have been required if the investee had directly disposed of the related assets or liabilities. The
portion recognized based on changes in the investee’s equity (other than net profit or loss, other
comprehensive income and profit appropriation) is charged to profit or loss upon disposal of such
long-term equity investment. For those partially disposed equity investments, gains or losses
upon disposal are proportionately recognized in profit or loss when they still constitute long-
term equity investments after the disposal and are fully charged to profit or loss when they are
reclassified to financial instruments after the disposal. For business combination involving
entities not under common control, the initial investment cost should be the cost of acquisition
(for step acquisitions not under common control, the initial investment cost is the sum of the
carrying amount of the equity investment in the acquiree held before the acquisition date and
the additional investment cost paid on the acquisition date), which is the sum of the fair value of
assets transferred, liabilities incurred or assumed and equity instruments issued. If the equity
investments in the acquiree involve other comprehensive income prior to the acquisition date,
when disposing of the investments, the relevant other comprehensive income will be accounted
for on the same basis as would have been required if the investee had directly disposed of the
related assets or liabilities. The portion recognized based on changes in the investee’s equity
(other than net profit or loss, other comprehensive income and profit appropriation) is charged
to profit or loss upon disposal of such long-term equity investment. The initial investment cost
of a long-term equity investment acquired otherwise than through a business combination shall
be determined as follows: for a long-term equity investment acquired by paying cash, the initial
investment cost shall be the actual purchase price has been paid plus those costs, taxes and other
necessary expenditures directly attributable to the acquisition of the long-term equity
investment; for those acquired by the issue of equity securities, the initial investment cost shall
be the fair value of the equity securities issued.
117
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
11. Long-term equity investments (continued)
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. The cost of long-term equity investment should be adjusted in case of additional
investment or disinvestments. When cash dividends or profits are declared by the invested
enterprise is recognized as investment income in current period.
The equity method is applied to account for long-term equity investments, when the Group has
jointly control, or significant influence on the investee enterprise. 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 ventures). 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 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.
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.
118
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
11. Long-term equity investments (continued)
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. As to other comprehensive income recognized based on measurement of the original
equity investment by employing the equity method, accounting treatment shall be made on the
same basis as would be required if the invested entity had directly disposed of the assets or
liabilities related thereto when measurement by employing the equity method is terminated. As
to any change in owners' equity of the invested entity other than net profit or loss, other
comprehensive income and profit distribution, the investing party shall be transferred to the
income statement for the current period. If the remaining equities still be measured under the
equity method, accumulative change previously recorded in other comprehensive income shall
be transferred to current profit or loss, in measurement on the same basis as the invested entity
had directly disposed of the assets or liabilities related thereto. 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.
12. Investment property
Investment 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.
The Group adopts the cost method to make follow-up measurement to the investment property.
The buildings are depreciated under straight-line method.
13. Fixed assets
A fixed asset probably 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 during which they are incurred.
Fixed assets are initially measured at actual cost on acquisition. The cost of a purchased fixed
asset comprises the purchase price, relevant taxes and any directly attributable expenditure for
bringing the asset to working condition for its intended use, such as delivery and handling costs,
installation costs and other surcharges.
119
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
13. Fixed assets (continued)
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 35 years 3% 2.77%-4.85%
Machinery (Note) 5 to 20 years 3% 4.85%-19.40%
Vehicles 4 to 10 years 3% 9.70%-24.25%
Others 3 to 21 years 3% 4.62%-32.33%
Note: the molds in machinery should be depreciated in units-of-production method.
The Group reviews the useful life and estimated net residual value of a fixed asset and the
depreciation method applied at least at the end of each year and makes adjustments if necessary.
14. 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.
Construction in progress is transferred to fixed assets when the asset is ready for its intended use.
15. Borrowing costs
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
during 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 is as part of the cost of a qualifying asset shall commence
when:
1) expenditure for the asset is being incurred;
2) borrowing costs are being incurred; and
3) activities that are necessary to prepare the asset for its intended use or sale are in progress.
120
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
15. Borrowing costs (continued)
Capitalization of borrowing costs shall be ceased when substantially all the activities
necessary to prepare the qualifying asset for its intended use or sale have been done. And
subsequent borrowing costs are recognized in the income statement.
During the capitalization period, the amount of interest to be capitalized for each accounting
period shall be determined as follows:
1) where funds are borrowed for a specific-purpose, the amount of interest to be capitalized
is the actual interest expense incurred on that borrowing for the period less any bank interest
earned form depositing the borrowed funds before being used on the asset or any investment
income on the temporary investment of those funds;
2) where funds are borrowed for a general-purpose, the amount of interest to be capitalized
on such borrowings is determined by applying a weighted average interest rate to the weighted
average of the excess amounts of cumulative expenditure on the asset over and above the
amounts of specific-purpose borrowings.
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.
16. Right-of-use assets
The Group's right-of-use assets are mainly buildings.
At the commencement date of the lease period, the Group recognizes its right to use the leased
assets during the lease period as a right-of-use asset, including: the initial measured amount of
the lease liability; the amount of lease payments paid on or before the start date of the lease
period, in addition, the relevant amount of lease incentive should be deducted; Initial direct
expenses incurred by the lessee; the estimated cost incurred by the lessee for dismantling and
removing the leased assets, restoring the site where the leased assets are located, or restoring
the leased assets to the state agreed in the lease terms. the Group adopts the average age
method to depreciate the assets of the right of use. If it can be reasonably determined that the
ownership of the leased asset is obtained at the expiration of the lease term, the Group adopts
depreciation within the remaining service life of the leased asset. If it is impossible to reasonably
determine that the ownership of the leased asset can be obtained at the expiration of the lease
term, the Group adopts depreciation within the shorter of the lease term and the remaining
service life of the leased asset.
When the Group remeasures the lease liability according to the present value of the changed
lease payment and adjusts the book value of the right of use asset, if the carrying amount of the
right-of-use assets has been reduced to zero but the lease liabilities still need to be further
reduced, the Group will include the remaining amount in the profit or loss of the current period.
121
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
17. Intangible assets
An intangible asset probably 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.
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:
Useful life
Land use right 43 to 50 years
Software 2 years
Trademark 10 years
Non-patent technology 5 to 7 years
Patent technology 10 years
Land use rights that are purchased or acquired through the payment of land use fees are
accounted for as intangible assets. With respect to self-developed properties, the corresponding
land use right and buildings should be recorded as intangible and fixed assets separately. As to
the purchased properties, if the reasonable allocation of outlays cannot be made between land
and buildings, all assets purchased will be recorded as fixed assets. The cost of a finite useful life
intangible asset is amortized using the straight-line method during the estimated useful life. For
an intangible asset with a finite useful life, the Group reviews the estimated useful life and
amortization method at least at the end of each year and adjusts if necessary.
The Group should test an intangible asset with an indefinite useful life for impairment by
comparing its recoverable amount with its carrying amount annually, whenever there is an
indication that the intangible asset may be impaired. An intangible asset with an indefinite useful
life shall not be amortized.
The useful life of an intangible asset that is not being amortised shall be reviewed each period to
determine whether events and circumstances continue to support an indefinite useful life
assessment for that asset. If there are indicators that the intangible asset has finite useful life, the
accounting treatment would be in accordance with the intangible asset with finite useful life.
122
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
18. Research and development expenditures
The Group classified the internal research and development expenditures as follows: research
expenditures and development cost.
The expenditures in research stage are charged to the current income on occurrence.
The expenditures in development stage are capitalized that should meet all the conditions of (a)
it is technically feasible to 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. The expenditures incurred before project-determination stage is charged to the
current income, otherwise it is recorded as development cost.
19. Impairment of assets
The Group determines the impairment of assets, other than the impairment of inventory,
contract assets, deferred income taxes, and financial assets, using the following methods:
The Group assesses at the balance sheet date whether there is any indication that an asset may
be impaired. If any indication exists that an asset may be impaired, the Group estimates the
recoverable amount of the asset and performs impairment tests. Goodwill arising from a business
combination and an intangible asset with an indefinite useful life are tested for impairment at
least at the end of every year, irrespective of whether there is any indication that the asset may
be impaired. An intangible asset which is not ready for its intended use is tested for impairment
at least at the end of every year.
The recoverable amount of an asset is the higher of its fair value less costs to sell and the present
value of the future cash flow expected to be derived from the asset. The Group estimates the
recoverable amount on an individual basis. If it is not possible to estimate the recoverable amount
of the individual asset, the Group determines the recoverable amount of the asset group to which
the asset belongs. Identification of an asset group is based on whether major cash flows
generated by the asset group are independent of the cash flows from other assets or asset groups.
123
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
19. Impairment of assets (continued)
When the recoverable amount of an asset or asset group is less than its carrying amount, the
carrying amount is reduced to the recoverable amount. The impairment of asset is provided for
and the impairment loss is recognized in the income statement for the current period.
For the purpose of impairment testing, the carrying amount of goodwill acquired in a business
combination is allocated, on a reasonable basis, to related asset groups; if it is impossible to
allocate to the related asset groups, it is allocated to each of the related sets of asset groups. Each
of the related asset groups or related sets of asset groups is a group or set of asset group that is
able to benefit from the synergies of the business combination and shall not be larger than a
reportable segment determined by the Group.
When an impairment test is conducted on an asset group or a set of asset groups that contains
goodwill, if there is any indication of impairment, the Group firstly tests the asset group or the
set of asset groups excluding the amount of goodwill allocated for impairment, i.e., it determines
and compares the recoverable amount with the related carrying amount and then recognize
impairment loss if any. Thereafter, the Group tests the asset group or set of asset groups including
goodwill for impairment, the carrying amount (including the portion of the carrying amount of
goodwill allocated) of the related asset group or set of asset groups is compared to its recoverable
amount. If the carrying amount of the asset group or set of asset groups is higher than its
recoverable amount, the amount of the impairment loss is firstly eliminated by and amortized to
the book value of the goodwill included in the asset group or set of asset groups, and then
eliminated by the book value of other assets according to the proportion of the book values of
assets other than the goodwill in the asset group or set of asset groups.
Once the above impairment loss is recognized, it cannot be reversed in subsequent periods.
20. 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.
21. Employee benefits
Employee benefits refer to all kinds of remunerations or compensation made by enterprises to
their employees in exchange for services provided by the employees or termination of labor
relation. Employee compensation includes short-term compensation and post-employment
benefits. The benefits offered by enterprises to the spouse, children, the dependents of the
employee, the family member of deceased employee and other beneficiaries are also employee
compensation.
124
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
21. Employee benefits (continued)
Short-term employee salaries
During the accounting period of employee rendering service, the actual employees salaries and
are charged to the statement of profit or loss as they become payable in balance sheet.
Post-employment benefits (Defined contribution plans)
The employees of the Group participate in pension insurance, which is managed by local
government and the relevant expenditure, is recognized, when incurred, in the costs of relevant
assets or the profit and loss for the current period.
Post-employment benefits (Defined benefit plan)
The Group operates a defined benefit pension plan which requires contributions to be made to a
separately administered fund. The benefits are unfunded. The cost of providing benefits under
the defined benefit plan is determined using the projected unit credit actuarial valuation method.
Remeasurements arising from defined benefit pension plans are recognized immediately in the
consolidated statement of financial position with a corresponding debit or credit to retained
profits through other comprehensive income in the period in which they occur.
Remeasurements are not reclassified to profit or loss in subsequent periods.
Past service costs are recognized in profit or loss at the earlier of: the date of the plan amendment
or curtailment; and the date that the Group recognizes restructuring-related costs.
Net interest is calculated by applying the discount rate to the net defined benefit liability or asset.
The Group recognizes the following changes in the net defined benefit obligation under
administrative expenses in the consolidated statement of profit or loss by function: service costs
comprising current service costs, past-service costs, gains and losses on curtailments and non-
routine settlements; net interest expense or income.
Termination benefits
Termination benefits are recognized at the earlier of when the Group can no longer withdraw the
offer of those benefits and when the Group recognizes restructuring costs involving the payment
of termination benefits.
125
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
22. Lease liabilities
At the commencement date of the lease period, the Group recognizes the present value of the
outstanding lease payments as a lease liability, excluding short-term leases and leases of low-
value assets. When calculating the present value of the lease payment, the Group uses the lease
implied rate as the discount rate, and if the lease implied interest rate cannot be determined, the
lessee incremental borrowing rate is used as the discount rate. The Group calculates the interest
expense of the lease liability in each period of the lease term according to the fixed periodic
interest rate and records it into the current profit and loss, unless otherwise specified, it is
included into the cost of relevant assets. Variable lease payments that are not included in the
measurement of lease liabilities are included in the profit or loss of the current period when
actually incurred, unless otherwise specified to be included in the cost of the underlying assets.
After the commencement date of the lease period, the Group remeasures the lease liability
against the present value of the changed lease payment amount when there is a change in the
amount of substantial fixed payments, a change in the amount expected to pay due to the
residual value of the guarantee, a change in the index or ratio used to determine the amount of
the lease payment, the assessment of the purchase option, the renewal option or the option to
terminate the lease.
23. Provisions
An obligation related to a contingency shall be recognized by the Group as a provision when all
of the following conditions are satisfied, except for contingent considerations and contingent
liabilities assumed in a business combination not involving entities under common control:
1) the obligation is a present obligation of the Group;
2) it is probable that an outflow of economic benefits from the Group will be required to settle
the obligation;
3) a reliable estimate can be made of the amount of the obligation.
Contingent liabilities are initially measured according to the current best estimate for the
expenditure necessary for the performance 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.
The contingent liabilities of the acquiree acquired in the business combination involving entities
not under common control are measured at fair value upon initial recognition. After initial
recognition, the balance of the amount recognized according to the estimated liabilities and the
amount initially recognized after deducting the accumulated amortization determined by the
revenue recognition principle is subsequently measured at the higher of the two.
126
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
24. Share-based payments
A share-based payment is classified as either an equity-settled share-based payment or a cash-
settled share-based payment. An equity-settled share-based payment is a transaction in which
the Group receives services and uses shares or other equity instruments as consideration for
settlement.
An equity-settled share-based payment in exchange for services received from employees is
measured at the fair value of the equity instruments granted to the employees. If such equity-
settled share-based payment could vest immediately, related costs or expenses at an amount
equal to the fair value on the grant date are recognized, with a corresponding increase in capital
reserves; if such equity-settled share-based payment could not vest until the completion of
services for a vesting period, or until the achievement of a specified performance condition, the
Group at each balance sheet date during the vesting period recognizes the services received for
the current period as related costs and expenses, with a corresponding increase in capital
reserves, at an amount equal to the fair value of the equity instruments at the grant date, based
on the best estimate of the number of equity instruments expected to vest. The fair value is
determined using the closing price of the company's shares on the grant date.
For awards that do not ultimately vest because non-market performance and/or service
conditions have not been met, no expense is recognized. Where awards include a market or
non-vesting condition, the transactions are treated as vesting irrespective of whether the market
or non-vesting condition is satisfied, provided that all other performance and/or service
conditions are satisfied.
Where the terms of an equity-settled share-based award are modified, as a minimum an expense
is recognized as if the terms had not been modified. In addition, an expense is recognized for
any modification that increases the total fair value of the share-based payment or is otherwise
beneficial to the employee as measured at the date of modification.
Where an equity-settled share-based award is cancelled, it is treated as if it had vested on the
date of cancellation, and any expense not yet recognized for the award is recognized
immediately. This includes any award where non-vesting conditions within the control of either
the Group or the employee are not met. However, if a new award is substituted for the cancelled
award and is designated as a replacement on the date that it is granted, the cancelled and new
awards are treated as if they were a modification of the original award.
127
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
25. Revenue from contracts with customers
The Group has fulfilled its performance obligations in the contracts, that is, the revenue is
recognized when the customer obtains control of the relevant goods or services. Obtaining
control over related goods or services means being able to lead the use of the goods or the
provision of the services and obtain almost all of the economic benefits from it.
Contracts for the sale of goods
A contract for the sale of goods between the Group and the customer usually includes the
performance obligation to transfer of goods, transportation services and free maintenance. The
Group allocates the transaction price to each individual performance obligation in accordance
with the relative proportion of the stand-alone selling price of the goods or services promised by
each individual performance obligation on the date of contract commencement. Regarding the
performance obligations of the transferred goods, the Group usually recognizes revenue at the
point when the performance obligations are fulfilled based on the following indicators, which
include: a present right to payment for goods, the transfer of significant risks and rewards of
ownership of goods, the transfer of legal title to goods, the transfer of physical possession of
goods, the customer’s acceptance of goods.
Provide service contract
The performance obligations of the service provision contract between the Group and the
customer are due to the fact that the customer obtains and consumes the economic benefits
brought by the performance of the Group at the same time the Group performs the contract, and
the Group has the right to accumulate the economic benefits during the entire contract period.
The Group regards it as a performance obligation performed within a period, and recognizes the
revenue according to the performance progress, unless the performance progress cannot be
reasonably determined. In accordance with the output method, the Group determines the
progress of the performance of the service provided based on the completed or delivered
products. When the performance progress cannot be reasonably determined, if the cost incurred
by the Group is expected to be compensated, the revenue will be recognized according to the
amount of the cost incurred until the performance progress can be reasonably determined.
Variable consideration
Some contracts between the Group and customers have sales rebate arrangements, forming
variable consideration. The Group determines the best estimate of the variable consideration
based on the expected value or the most likely amount, but the transaction price including the
variable consideration does not exceed the amount that the accumulated recognized revenue
will most likely not be materially reversed when the relevant uncertainty is eliminated.
128
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
25. Revenue from contracts with customers (continued)
Warranty obligations
In accordance with contractual agreements and legal provisions, the Group provides quality
assurance for the goods sold. For guarantee quality assurance to ensure that the products sold
meet the established standards, the Group conducts accounting treatment in accordance with
Note III, 23. For the service quality assurance that provides a separate service in addition to the
established standards to ensure that the goods sold meet the established standards, the Group
regards it as a single performance obligation, based on the stand-alone selling price of the quality
assurance of the goods and services provided. In a relative proportion, part of the transaction
price is allocated to service quality assurance, and revenue is recognized when the customer
obtains control of the service. When assessing whether the quality assurance provides a separate
service in addition to ensuring that the products sold meet the established standards, the Group
considers whether the quality assurance is a legal requirement, the quality assurance period, and
the nature of the Group's commitment to perform tasks.
Principal/agent
For the Group to lead a third party to provide services to customers on behalf of the Group, the
Group has the right to independently determine the price of the goods or services traded, that is,
the Group can control the relevant goods before transferring the goods to the customers, so the
Group is the main responsible person, and recognize revenue based on the total consideration
received or receivable. Otherwise, the Group acts as an agent and recognizes revenue based on
the amount of commission or fees expected to be charged. This amount should be based on the
net amount of the total consideration received or receivable minus the price payable to other
related parties, or based on the established commission amount or proportions, etc.
26. Contract assets and contract liabilities
The Group lists contract assets or contract liabilities in the balance sheet based on the
relationship between performance obligations and customer payments. The Group offsets the
contract assets and contract liabilities under the same contract as net amount.
Contract assets
Contract assets refer to the right to receive consideration for the transfer of goods or services to
customers, and this right depends on factors other than the passage of time.
The determination method and accounting treatment method of the expected credit loss of the
contract assets of the Group refer to Note III, 9.
129
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
26. Contract assets and contract liabilities (continued)
Contract liabilities
Contract liabilities refer to the obligation to transfer goods or services to customers for the
consideration received or receivable from customers, such as the payment received by
companies before the transfer of promised goods or services.
27. Government grants
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 a nominal amount.
A government grant which is specified by the government documents to be used to purchase and
construct the long-term assets shall be recognized as the government grant related to assets. A
government grant which is not specified by the government documents shall be judged based on
the basic conditions to obtain the government grant. The one whose basic condition was to
purchase and construct the long-term assets shall be recognized as the government grant related
to assets.
The Group uses the net method to account for government grants.
Government grants related to income to be used as compensation for future expenses or losses
shall be recognized as deferred income and shall be charged to the current profit or loss or be
used to write down the relevant loss, during the recognition of the relevant cost expenses or
losses; or used as compensation for relevant expenses or losses already incurred by enterprises
shall be directly charged to the profit and loss account in the current period or used to write down
the relevant cost.
The government grants related to assets shall be used to write down the book value of the
relevant assets or be recognized as deferred income. The government grants related to assets,
recognized as deferred income, shall be charged to the profit and loss reasonably and
systematically in stages over the useful lives of the relevant assets. The government grants
measured at nominal amount shall be directly charged to the current profit and loss. The
remaining book value of the government grants related to assets should be charged to the profit
and loss account in the current period when the relative assets sold, transferred, disposed or
damaged.
130
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
28. Income taxes
Income tax comprises current and deferred tax. Income tax is recognized as an income or an
expense and include in the income statement for the current period, except to the extent that the
tax arises from a business combination or if it relates to a transaction or event which is recognized
directly in equity.
Current income tax liabilities or assets for the current and prior periods, are measured at the
amount expected to be paid (or recovered) according to the requirements of tax laws.
For temporary differences at the balance sheet date between the tax bases of assets and
liabilities and their carrying amounts, and temporary differences between the carrying amounts
and the tax bases of items, the tax bases of which can be determined for tax purposes, but which
have not been recognized as assets and liabilities, deferred taxes are provided using the liability
method.
A deferred tax liability is recognized for all taxable temporary differences, except:
(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.
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 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.
131
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
28. Income taxes (continued)
At the balance sheet date, deferred tax assets and liabilities are measured at the tax rates that
are expected to apply to the period when the asset is realized or the liability is settled, according
to the requirements of tax laws. The measurement of deferred tax assets and deferred tax
liabilities reflects the tax consequences that would follow from the manner in which the Group
expects at the balance sheet date, to recover the assets or settle the liabilities.
At the balance sheet date, the Group reviews the book value of deferred tax assets. If it is
probable that sufficient taxable income cannot be generated to use the tax benefits of deferred
tax assets, the book value of deferred tax assets should be reduced. When it is probable that
sufficient taxable income can be generated, the amount of such reduction should be reversed.
When it is probable that sufficient taxable income can be generated, the amount of such
reduction should be reversed.
When the following conditions are met at the same time, the deferred tax assets and deferred
tax liabilities are listed at the net amount after offset: the legal right to settle the current income
tax assets and current income tax liabilities at the net amount; the deferred tax assets and
deferred tax liabilities are related to the income tax levied by the same tax collection and
management department on the same taxable subject or different taxpaying subjects However,
in the future, during each period when the significant deferred tax assets and deferred tax
liabilities are reversed, the tax payer involved intends to settle the current income tax assets and
current income tax liabilities with net amount or obtain assets and pay off debts at the same time.
29. Leases
Identification of leases
At inception of a contract, the Group assesses whether the contract is, or contains, a lease. A
contract is, or contains, a lease if the contract conveys the right to control the use of an identified
asset for a period of time in exchange for consideration. To assess whether a contract conveys
the right to control the use of an identified asset for a period of time, the Group assesses whether,
throughout the period of use, the customer has both of the right to obtain substantially all of the
economic benefits from use of the identified asset and the right to direct the use of the identified
asset.
132
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
29. Leases (continued)
Assessment of the lease term
The lease term is the non-cancellable period of a lease for which the Group has the right to use
an underlying asset. If the Group has an option to extend the lease, that is, the Group has the
right to extend the lease, and is reasonably certain to exercise that option, the lease term also
includes periods covered by an option to extend the lease. If the Group has an option to
terminate the lease, that is, the Group has the right to terminate the lease, but is reasonably
certain not to exercise that option, the lease term includes periods covered by an option to
terminate the lease. The Group reassesses whether it is reasonably certain to exercise an
extension option, purchase option, or not to exercise a termination option, upon the occurrence
of either a significant event or a significant change in the circumstances that is within the control
of the Group and affects whether the Group is reasonably certain to exercise an option not
previously included in its determination of the lease term.
As lessee
The Group's general accounting treatment as a lessee is provided in Notes III, 16 and 22.
Short-term leases and leases of low-value assets
The Group considers a lease that, at the commencement date of the lease, has a lease term of 12
months or less, and does not contains any purchase option as a short-term lease; and a lease with
a lower value of a single leased asset is recognized as a low value asset lease.
As lessor
A lease is classified as a finance lease if it transfers substantially all the risks and rewards
incidental to ownership of an underlying asset, except that a lease is classified as an operating
lease at the inception date.
The Group recording the operating lease as a lessor
Rental income under an operating lease is recognized on a straight-line basis over the lease term,
through profit or loss. Variable lease payments that are not included in the measurement of lease
receivables are charged to profit or loss as incurred.
133
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
29. Leases (continued)
The Group accounts for a modification to an operating lease as a new lease from the effective
date of the modification, considering any prepaid or accrued lease payments relating to the
original lease as part of the lease payments for the new lease.
A finance lease is a lease that transfers in substance all the risks and rewards incident to
ownership of an asset. An operating lease is a lease other than a finance lease.
30. Profit distribution
The cash dividend of the Group is recognized as liabilities after the approval of general meeting
of stockholders.
31. Safety fund
The safety fund extracted by the Group shall be recognized as the cost of the related products or
income statement, while be recognized as special reserve. When using safety fund, it shall be
distinguished whether it will form fixed assets or not. The expenditure shall write down the
special reserve; the capital expenditure shall be recognized as fixed assets when meet the
expected conditions for use, and write down the special reserve while recognizing accumulated
depreciation with the same amount.
32. Fair value measurement
The Group measures its equity investments at fair value at the end of each reporting period.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date. The fair value
measurement is based on the presumption that the transaction to sell the asset or transfer the
liability takes place either in the principal market for the asset or liability, or in the absence of a
principal market, in the most advantageous market for the asset or liability. The principal or the
most advantageous market must be accessible by the Group. The fair value of an asset or a
liability is measured using the assumptions that market participants would use when pricing the
asset or liability, assuming that market participants act in their economic best interest.
The Group measures equity investments at fair value at the end of each reporting period. Fair
value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The fair value measurement
is based on the presumption that the transaction to sell the asset or transfer the liability takes
place in the principal market for the asset or liability or in the most advantageous market for the
asset or liability when a principal market is absent. The principal or the most advantageous
market must be accessible to by the Group. The fair value of an asset or a liability is measured
using the assumptions that market participants would use when pricing the asset or liability,
assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant’s
ability to generate economic benefits by using the asset in its highest and best use or by selling
it to another market participant that would use the asset in its highest and best use.
134
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
32. Fair value measurement (continued)
The Group uses valuation techniques that are appropriate in the circumstances and for which
sufficient data and other supporting information are available to measure fair value, giving
priority to the use of relevant observable inputs, and using unobservable inputs only when
observable inputs are unavailable or not feasible to obtain.
All assets and liabilities for which fair value is measured or disclosed in the financial statements
are categorized within the fair value hierarchy, described as follows, based on the lowest level
input that is significant to the fair value measurement as a whole:
Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 – Valuation techniques for which the lowest level input that is significant to the fair
value measurement is directly or indirectly observable
Level 3 – Valuation techniques for which the lowest level input that is significant to the fair
value measurement is unobservable
For assets and liabilities that are recognized in the financial statements on a recurring basis, the
Group determines whether transfers have occurred between levels in the hierarchy by
reassessing categorization at the end of each reporting period.
33. Significant accounting judgments and estimates
The preparation of financial statements requires management to make judgments, estimates
and assumptions that affect the amounts and disclosures of revenues, expenses, assets and
liabilities, and the disclosure of contingent liabilities, at the balance sheet date. However,
uncertainty about these assumptions and estimates could result in outcomes that could require
a material adjustment to 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:
Business model
The classification of financial assets at initial recognition depends on the business model of the
Group’s management of financial assets. When judging the business model, the Group considers
the methods including enterprise evaluation and reporting of financial asset performance to key
management personnel, risks affecting financial asset performance and its arangement method
and the way in which related business managers get paid. When evaluating whether to take
contract cash flow as the goal, the Group needs to analyze and judge the reasons, time, frequency
and value of the sale of financial assets before the due date.
135
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
33. Significant accounting judgments and estimates (continued)
Judgments (continued)
Contract cash flow characteristics
The classification of financial assets at initial recognitions depends on the contractual cash flow
characteristics of the financial assets. It is necessary to determine whether the contractual cash
flow is only for the payment of principal and interest based on outstanding principal, including
correction of the time value of money during the evaluation, it is necessary to determine whether
there is a significant difference compared to the benchmark cash flow. For financial assets that
include prepayment characteristics, it is necessary to determine whether the fair value of the
prepayment characteristics is very small, etc.
Uncertainty of accounting estimates
The crucial assumptions of significant accounting estimates in future and other crucial sources of
estimated uncertainty, which may result in the significant adjustments to the book value of the
subsequent accounting period, are as the following:
Impairment of financial instruments and contract assets
The Group uses the expected credit loss model to assess the impairment of financial instruments
and contract assets. The application of the expected credit loss model requires significant
judgments and estimates. All reasonable and valid information must be considered, including
forward-looking information. In making these judgments and estimates, the Group infers the
expected changes in the credit risk of the debtor based on historical repayment data combined
with economic policies, macroeconomic indicators, industry risks and other factors. Different
estimates may affect the provision for impairment losses. The provision for impairment losses
may not be equal to the actual amount of future impairment losses.
Uncertainty of accounting estimates (continued)
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 present 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.
Fair value of unlisted equity investments
For unlisted equity instrument investments, several valuation models are used to estimate the
fair value. This requires the Group to make estimates of unobservable market parameters such as
price-to-book ration, discount rate, sustainable growth rate, asset price index, etc., and is
therefore uncertain.
136
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
33. Significant accounting judgments and estimates (continued)
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. Factors that influence
estimation of related warranty claim include: 1) renewal of laws and regulations; 2) quality
promotion of Group products; 3) change of parts and labour cost. In general, the Group records
warranty based on selling volume and estimated compensatory unit warranty cost, deduction
multi-agreed compensation from suppliers. As at balance sheet day, the Group launches
retrospective analysis on warranty carrying amount in consideration of accrual warranty payment
during relative warranty period, and recent trends of product renovation and replacement, and
further adjustment if necessary. Any increase or decrease in the provision would affect profit or
loss in future years.
Uncertainty of accounting estimates (continued)
The lessee's incremental borrowing rate
For leases where the interest rate embedded in the lease cannot be determined, the Group uses
the lessee's incremental borrowing rate as the discount rate to calculate the present value of the
lease payment. When determining the incremental borrowing rate, the Group uses the
observable interest rate as the reference basis for determining the incremental borrowing rate
according to its economic environment, and on this basis, adjusts the reference interest rate
according to its own circumstances, the underlying assets, the lease period and the amount of
lease liabilities and other leasing business conditions to derive the applicable incremental
borrowing rate.
137
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
IV TAXES
1. Main taxes and tax rates
Value added tax (“VAT”) - The income from the sale of goods and the income from the provision
of services are calculated at the tax rates of 13% and 6%, respectively,
and the VAT is calculated on the basis of the difference after
deducting the input tax that is allowed to be deducted in the current
period.
Consumption tax - Consumption tax is calculated at 1%, 3% or 5% of taxable income.
City maintenance and 5% or 7% of the turnover tax paid is calculated and paid.
-
construction tax
Educational surcharge - 3% of the actual turnover tax paid is calculated and paid.
Local educational 2% of the turnover tax actually paid is calculated and paid.
-
surcharge
Corporate income tax - Corporate income tax is paid at 15%, or 25% of taxable income.
2. Tax benefits
According to the relevant provisions of the national high-tech identification and relevant tax
preferential policies, the following companies of the Group are identified as high-tech enterprises and
are subjected to the preferential corporate income tax rate of 15% within the prescribed period: the
company (2021-2023), and the Company’s subsidiaries including Hebei Changan Automobile
Company Limited (2020-2022) and Baoding Changan Bus Manufacturing Company Limited (2020-
2022).
According to the Announcement on Continuing the Income Tax Policy for Enterprises in the Large-
scale Development of the Western Region jointly issued by the Ministry of Finance, the State
Administration of Taxation and the National Development and Reform Commission, from January 1,
2021 to December 31, 2030, enterprise income tax will be levied at a reduced rate of 15% for
encouraged industrial enterprises located in the western region. Chongqing Changan Automobile
International Sales Service Co., Ltd., Chongqing Changan Special Purpose Vehicle Co., Ltd., Chongqing
Changan Automobile Customer Service Co., Ltd., Chongqing Lingyao Automobile Co., Ltd. and
Chongqing Chehemei Technology Co., Ltd., subsidiaries of the Company, meet the above
requirements and are subject to corporate income tax calculated at a 15% corporate income tax rate.
According to the Announcement on Enterprise Income Tax Policies on Promoting the High-quality
Development of the Integrated Circuit Industry and the Software Industry jointly issued by the
Ministry of Finance, the State Administration of Taxation, the Development and Reform Commission
and the Ministry of Industry and Information Technology, software enterprises encouraged by the
state are exempt from enterprise income tax from the first to second year from the year of profit, and
from the third to the fifth year, the statutory tax rate of 25% is halved. Chongqing Changan
Automobile Software Technology Co., Ltd., a subsidiary of the Company, meets the above conditions,
and this year is the second profit year and is exempt from corporate income tax.
138
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
V NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. Cash
2022 2021
Cash 32,155.77 36,881.35
Cash at bank 52,455,913,791.28 49,517,879,953.64
Other cash 1,074,237,880.29 2,458,325,314.38
Total 53,530,183,827.34 51,976,242,149.37
On 31 December 2022, the book value of restricted cash was RMB1,038,748,779.60, which was
mainly restricted for the issuance of acceptance bill (December 2021: RMB2,458,325,314.38).
On December 2022, the cash at bank overseas is equivalent to RMB 231,286,316.97 (31 December
2021: RMB 300,347,944.86).
On December 31, 2022, the cash deposited by the Group in the finance company (related party)
was RMB 34,812,952,043.78 (December 31, 2021: RMB 31,652,980,551.77). Refer to note IX,7.
Cash at banks earns interest at floating rates based on daily bank deposit rates. The 7-day bank
notice deposits and fixed deposits can be withdrawn at any time according to the cash
requirements of the Group, and interest income is obtained according to the corresponding bank
deposit rates.
2. Financial assets held for trading
2022 2021
Equity instrument investment 251,165,128.80 177,902,700.00
Others 29,150,442.29 17,895,600.00
Total 280,315,571.09 195,798,300.00
As of December 31, 2022, the equity instrument investment was 33.63 million ordinary shares of
Southwest Securities Co., Ltd. held by the Group without selling restrictions (December 31, 2021:
33.63 million) and 26.05 million restricted shares of CATARC Automotive Proving Ground Co., Ltd.
(December 31, 2021: Nil comments).
139
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
3. Notes receivable
(1) Classification of notes receivable
2022 2021
Commercial acceptance bill 10,010,938,909.34 7,080,362,856.62
Bank acceptance bill 25,838,721,743.62 17,187,270,560.03
Total 35,849,660,652.96 24,267,633,416.65
(2) Pledged notes receivable
2022 2021
Commercial acceptance bill 508,288,620.00 1,042,916,400.00
Bank acceptance bill 5,831,967,343.00 6,164,348,540.74
Total 6,340,255,963.00 7,207,264,940.74
As at 31 December 2022 and 2021, notes receivable with above carrying amount were pledged to
issue notes payable.
(3) Endorsed or discounted but unexpired notes receivable as at the end of reporting period
are as follow:
2022 2021
Derecognition Un- Derecognition Un-derecognition
derecognition
Commercial acceptance bill 518,527,457.01 - 10,249,473.84 -
Bank acceptance bill 4,775,896,824.61 - 2,381,317,582.00 -
Total 5,294,424,281.62 - 2,391,567,055.84 -
(4) As at 31 December 2022, there was no note receivables converted to accounts receivable
due to the inability of the drawer to perform the contract. (As at 31 December 2021: Nil
comments)
140
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
4. Accounts receivable
(1) Aging analysis of the accounts receivable on 31 December 2022 is as follows:
2022 2021
Within 1 year 2,905,353,787.00 1,605,244,476.97
1 to 2 years 176,712,124.08 28,484,908.94
2 to 3 years 25,732,015.24 116,846,682.50
Over 3 years 201,045,330.53 140,125,844.08
Total 3,308,843,256.85 1,890,701,912.49
Less: Provision (240,428,841.56) (215,274,377.62)
3,068,414,415.29 1,675,427,534.87
(2) The movements in provision for impairment of accounts receivable are as
follows:
Beginning Accrual Reversal Write-off Ending balance
balance
2022 215,274,377.62 35,457,297.58 4,945,346.85 5,357,486.79 240,428,841.56
2021 189,491,038.22 31,121,598.40 3,933,948.00 1,404,311.00 215,274,377.62
(3) Analysis of accounts receivable by category as at 31 December 2022 is as follows:
2022
Balance Accrual
Amount (%) Amount (%)
Individually analyzed for provision 2,059,626,543.23 62.25 152,800,930.19 7.42
Provision based on the combination
of credit risk characteristics 1,249,216,713.62 37.75 87,627,911.37 7.01
Total 3,308,843,256.85 100.00 240,428,841.56 7.27
2021
Balance Accrual
Amount (%) Amount (%)
Individually analyzed for provision 1,116,005,410.48 59.03 161,822,950.43 14.50
Provision based on the combination
of credit risk characteristics 774,696,502.01 40.97 53,451,427.19 6.90
Total 1,890,701,912.49 100.00 215,274,377.62 11.39
141
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
4. Accounts receivable (continued)
(4) The Group’s accounts receivable was analyzed for provision by expected credit
loss model
2022 2021
Estimated face Expected Expected credit Face balance Provision Provision for bad
value for default credit loss loss for the entire ratio (%) debt
rate (%) duration
Within 1 year 1,031,532,359.36 0.41 4,211,660.35 572,882,251.72 0.13 759,937.11
1 to 2 years 30,724,065.06 7.24 2,225,905.84 28,352,246.25 8.57 2,429,794.47
2 to 3 years 25,707,148.00 16.02 4,118,732.53 92,634,562.67 12.47 11,548,535.79
Over 3 years 161,253,141.20 47.80 77,071,612.65 80,827,441.37 47.90 38,713,159.82
Total 1,249,216,713.62 7.01 87,627,911.37 774,696,502.01 6.90 53,451,427.19
(5) As at 31 December 2022, accounts receivable from Top 5 clients amounted to
RMB1,880,530.647.71, accounted for 56.83%. (2021：RMB924,920,983.66, accounted for
48.92% of the total accounts receivable).
(6) There were no accounts receivable derecognized due to transfer of financial assets during
2022 (2021: Nil).
5. Prepayments
(1) Aging analysis of the prepayments is as follows:
2022 2021
Aging Amount Percentage Amount Percentage
(%) (%)
Within 1 year 523,061,724.51 69.78 3,223,697,503.44 99.46
1 to 2 years 217,460,711.49 29.01 12,192,890.74 0.38
2 to 3 years 8,858,465.69 1.18 3,934,439.12 0.12
Over 3 years 191,360.31 0.03 1,423,997.98 0.04
Total 749,572,262.00 100.00 3,241,248,831.28 100.00
(2) As at 31 December 2022, prepayments to Top 5 suppliers amounted to RMB
341,251,881.85 , which accounted for 45.53% of the total prepayments (2021:
RMB1,151,298,912.20, which accounted for 35.52% of the total prepayments).
142
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
6. Other receivables
(1) Aging analysis of other receivables as at 31 December 2022 is as follows:
2022 2021
Within 1 year 1,192,972,701.51 617,564,020.74
1 to 2 years 57,855,077.50 1,762,913.64
2 to 3 years 1,364,188.70 2,737,081.98
Over 3 years 18,062,282.93 17,525,165.97
Total 1,270,254,250.64 639,589,182.33
Less: Provision (9,096,299.50) (7,466,239.96)
1,261,157,951.14 632,122,942.37
(2) Other receivables are classified by nature as follows:
2022 2021
New energy subsidy 667,729,527.63 409,468,872.96
Investment 399,486,432.52 26,670,000.00
Reserve 63,703,195.18 23,921,846.41
Margin 16,618,938.83 84,465,512.53
Other 113,619,856.98 87,596,710.47
Total 1,261,157,951.14 632,122,942.37
(3) For other receivables, the changes in the provision for bad debts based on 12-month
expected credit losses and the entire duration of expected credit losses are as follows:
Beginning Provision Reversal Write-off Ending balance
balance
2022 7,466,239.96 1,886,641.46 156,581.92 100,000.00 9,096,299.50
2021 11,821,252.79 68,455.17 4,205,241.00 218,227.00 7,466,239.96
143
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
6. Other receivables (continued)
(4) at 31 December 2022, top five debtors of other receivables are as follows:
2022
Amount Nature Aging Proportion of total Provision
other receivables
(%)
First 338,394,118.63 New energy subsidy Within 1year 26.64 -
Second 297,876,247.07 Equity investment Within 1year 23.45 -
Third 206,328,464.00 New energy subsidy Within 1year 16.24 -
Fourth 123,006,945.00 New energy subsidy Within 1year 9.68 -
Fifth 101,610,185.45 Equity investment Within 1year 8.00 -
Total 1,067,215,960.15 84.01 -
2021
Amount Nature Aging Proportion of total Provision
other receivables
(%)
First 358,470,077.96 New energy subsidy Within 1year 56.05 -
Second 50,998,795.00 New energy subsidy Within 1year 7.97 -
Third 49,018,367.96 Disposal income of assets Within 1year 7.66 -
Fourth 33,331,404.62 Margin Within 1year 5.21 -
Fifth 26,670,000.00 Equity investment Within 1year 4.17 -
Total 518,488,645.54 81.06 -
(5) For the year ended 2022, there were no accounts receivable derecognized due to transfer
of financial assets. (2021: Nil).
144
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
7. Inventories
(1) Classification of inventories
2022 2021
Balance Provision Net value Balance Provision Net value
Raw materials 1,230,104,093.50 439,269,923.99 790,834,169.51 814,952,436.64 313,721,126.17 501,231,310.47
Material in
transit 130,255,961.90 - 130,255,961.90 355,550,319.54 - 355,550,319.54
Work in
progress 1,719,902,124.07 53,609,953.08 1,666,292,170.99 2,759,775,787.47 72,995,707.72 2,686,780,079.75
Finish goods 3,264,190,903.27 87,522,918.36 3,176,667,984.91 3,420,908,192.91 166,294,516.69 3,254,613,676.22
Consigned
processing
material 26,582,772.70 - 26,582,772.70 29,535,580.80 - 29,535,580.80
Consumables 32,674,452.89 - 32,674,452.89 25,163,453.81 - 25,163,453.81
Total 6,403,710,308.33 580,402,795.43 5,823,307,512.90 7,405,885,771.17 553,011,350.58 6,852,874,420.59
(2) Provision for inventories
2022
Beginning balance Provision Deduction Ending balance
Reversal Written off
Raw materials 313,721,126.17 208,865,490.81 160,368.68 83,156,324.31 439,269,923.99
Work in progress 72,995,707.72 48,288,507.37 44,851.63 67,629,410.38 53,609,953.08
Finish goods 166,294,516.69 27,948,697.61 - 106,720,295.94 87,522,918.36
Total 553,011,350.58 285,102,695.79 205,220.31 257,506,030.63 580,402,795.43
2021
Beginning balance Provision Deduction Ending balance
Reversal Written off
Raw materials 361,595,043.64 63,699,792.10 25,532.23 111,548,177.34 313,721,126.17
Work in progress 74,926,608.94 33,974,479.46 25,024.29 35,880,356.39 72,995,707.72
Finish goods 214,237,621.88 82,003,406.68 1,522.21 129,944,989.66 166,294,516.69
Total 650,759,274.46 179,677,678.24 52,078.73 277,373,523.39 553,011,350.58
(3) Note for inventory provision
The Group assesses whether the cost of inventory is higher than the net realizable value and
makes provision of the difference. Net realizable value is the estimated by selling price in the
ordinary course of business deduct estimated costs in further production to sell and estimated
necessary distribution expense and tax expense. The reversal of inventory provisions is due to
price rebound of previous impaired inventories by net realizable value test, while written off
inventory provisions are due to selling off of previous impaired inventories in current year.
145
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
8. Contract assets
2022
Book balance Impairment Book value
Contract assets 747,871,586.89 289,482,399.79 458,389,187.10
2021
Book balance Impairment Book value
Contract assets 1,320,954,229.34 169,661,981.98 1,151,292,247.36
The movement of impairment for contract assets is as follows:：
Balance at the beginning of the Provision Reverse Write off end of year balance
year
2022 169,661,981.98 129,619,022.81 9,798,605.00 - 289,482,399.79
2021 134,148,932.88 49,094,830.06 7,431,781.00 6,149,999.96 169,661,981.98
9. Other current assets
2022 2021
Input VAT to be deducted 803,647,039.82 1,140,996,871.24
Prepaid taxes and fees 250,386,657.89 3,078,565.10
Others 745,970.48 3,723,435.08
Total 1,054,779,668.19 1,147,798,871.42
146
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
10. Long-term equity investments
2022
Beginning balance Addition less Investment Other Other equity Cash dividends Ending balance Ending
Income/(loss) under comprehensive variation declared balance of
equity method income provision
Joint Venture
Changan Ford Automobile Co., Ltd. 2,934,876,043.99 - - (1,222,416,692.14) - - (1,000,000,000.00) 712,459,351.85 -
Changan Mazda Automobile Co., Ltd. 1,867,086,106.67 - - 45,093,349.65 - - (478,875,000.00) 1,433,304,456.32 -
Changan Mazda Engine Co., Ltd. 835,121,564.38 - - 30,420,484.67 - - (41,500,000.00) 824,042,049.05 -
Nanchang Jiangling Holding Co., Ltd. 1,630,596,420.97 - - 179,430,391.82 602,832.07 - - 1,810,629,644.86 -
Subtotal 7,267,680,136.01 - - (967,472,466.00) 602,832.07 - (1,520,375,000.00) 4,780,435,502.08 -
Associates
Chongqing Changan Kuayue Automobile Co., Ltd. 242,792,196.86 - - (33,023,260.52) - - - 209,768,936.34 -
Chongqing Changan Kuayue Automobile Sales Co., Ltd. (note1) - - - - - - - - -
Beijing Fang’an cresent taxi Co., Ltd. (note1) - - - - - - - - -
Changan Automobile Financing Co.,Ltd 2,520,349,332.44 - - 325,492,694.33 - - (66,943,616.44) 2,778,898,410.33 -
Hainan Anxinxing Information Technology Co., Ltd. - 368,900.00 (849.01) (368,050.99) - - - - -
Nanjing Chelai Travel Technology Co., Ltd. 866,888.90 - - (242,115.59) - - - 624,773.31 -
Hunan Guoxin Semiconductor Technology Co., Ltd. 25,285,116.95 - - 167,308.31 - - - 25,452,425.26 -
Jiangling Holding Co., Ltd. (note1) 70,492,790.08 - - (70,492,790.08) - - - - -
Nanjing Leading Equity Investment Management Co., Ltd. (Limited
Partnership) 2,424,143,949.52 - - 146,277,515.18 - - - 2,570,421,464.70 -
Nanjing Leading Equity Investment Partnership 1,133,065.60 - - (20,854.91) - - - 1,112,210.69 -
Chongqing Changan New Energy Vehicles Technology Co., Ltd. 425,266,071.28 1,360,000,000.00 - (1,508,341,243.99) - 663,566,110.70 - 940,490,937.99 -
Zhongqi Chuangzhi Technology Co., Ltd. 190,534,997.15 - - (22,042,206.37) - - - 168,492,790.78 -
Chongqing Changxin Zhiqi Private Equity Investment Fund Partnership
(Limited Partnership) 25,007,587.62 133,187,500.00 - 12,244,966.46 - - - 170,440,054.08 -
Anhe Chongqing Dingfeng Auto Contractual Private Equity
Investment Fund - 61,744,000.00 - (175,293.92) - - - 61,568,706.08 -
Avatr Technology (Chongqing) Co., Ltd. - 3,611,526,800.00 - (966,915,043.54) (75,815.98) - - 2,644,535,940.48 -
Chongqing Changan Innovation private Equity Investment Fund
Partnership (Limited Partnership) - 1,000,000.00 - 844.59 - - - 1,000,844.59 -
Chongqing Wutong Chelian Technology Co., Ltd (note1). - - - (2,483,334.69) - 2,483,334.69 - - -
Anhe (Chongqing) Stock Right Investment Fund Management Co.,Ltd. 2,199,216.74 2,640,640.00 - 310,930.67 - - - 5,150,787.41 -
Hangzhou Chelizi Intelligent Technology Co., Ltd. 9,456,236.58 - - (6,436,209.78) - - - 3,020,026.80 -
Master Changan Automobile Limited 40,167,274.82 - - 5,081,370.54 - - - 45,248,645.36 -
Subtotal 5,977,694,724.54 5,170,467,840.00 (849.01) (2,120,964,774.30) (75,815.98) 666,049,445.39 (66,943,616.44) 9,626,226,954.20 -
Total 13,245,374,860.55 5,170,467,840.00 (849.01) (3,088,437,240.30) 527,016.09 666,049,445.39 (1,587,318,616.44) 14,406,662,456.28 -
Note 1: On 2022 December 31, the Group of Chongqing Changan Kuayue Automobile Co., Ltd., Beijing Fang’an cresent taxi Co., Ltd., Jiangling Holding Co., Ltd. and Chongqing
Wutong Chelian Technology Co., Ltd. did not have the obligation to undertake extra losses, so the excess loss when it occurs, only the long-term equity investment was
written down to zero. The excess losses related to the investment in the above three companies were not recognized.
147
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
10. Long-term equity investments (continued)
2021
Beginning balance Addition Investment Other equity Cash dividends Other Deduction Provision Ending balance Ending
income under variation declared balance of
equity method provision
Joint Venture
Changan Ford Automobile Co., Ltd. 1,791,533,495.17 - 1,143,342,548.82 - - - - 2,934,876,043.99 -
Changan Mazda Automobile Co., Ltd. 1,995,998,622.28 - 417,328,331.92 - 173,259,152.47 (719,500,000.00) - 1,867,086,106.67 -
Changan Mazda Engine Co., Ltd. 832,869,256.44 - 41,752,307.94 - - (39,500,000.00) - 835,121,564.38 -
Nanchang Jiangling Holding Co., Ltd. 1,545,807,633.84 - 86,068,773.02 (1,279,985.89) - - - 1,630,596,420.97 -
Subtotal 6,166,209,007.73 - 1,688,491,961.70 (1,279,985.89) 173,259,152.47 (759,000,000.00) - 7,267,680,136.01 -
Associates
Chongqing Changan Kuayue Automobile Co., Ltd. 237,736,134.21 - 8,486,062.65 - - (3,430,000.00) - 242,792,196.86 -
Chongqing Changan Kuayue Automobile Sales Co., Ltd. (note1) - - - - - - - - -
Beijing Fang’an cresent taxi Co., Ltd. (note1) - - - - - - - - -
Changan Automobile Financing Co.,Ltd 2,337,849,374.75 - 247,691,770.61 - - (65,191,812.92) - 2,520,349,332.44 -
Hainan Anxinxing Information Technology Co., Ltd. (note1) 2,316,052.92 - (2,316,052.92) - - - - - -
Nanjing Chelai Travel Technology Co., Ltd. 1,192,605.27 - (325,716.37) - - - - 866,888.90 -
Hunan Guoxin Semiconductor Technology Co., Ltd. 25,373,809.47 - 47,460.39 - - (136,152.91) - 25,285,116.95 -
Chongqing Wutong Chelian Technology Co., Ltd. (note1) - 3,711.00 (3,711.00) - - - - - -
Anhe (Chongqing) Equity Investment Fund Management Co., Ltd. 1,518,177.47 - 681,039.27 - - - - 2,199,216.74 -
Hangzhou Chelizi Intelligent Technology Co., Ltd. 9,692,964.92 - (236,728.34) - - - - 9,456,236.58 -
Nanjing Leading Equity Investment Management Co., Ltd. (Limited
Partnership) 999,636,607.63 741,732,283.00 682,775,058.89 - - - - 2,424,143,949.52 -
Nanjing Leading Equity Investment Partnership 1,262,180.39 - (129,114.79) - - - - 1,133,065.60 -
Pakistan Master Automobile Co., Ltd. 33,550,101.47 - 6,617,173.35 - - - - 40,167,274.82 -
Jiangling Holding Co., Ltd. 201,736,644.25 - (131,243,854.17) - - - - 70,492,790.08 -
Chongqing Changan New Energy Vehicles Technology Co., Ltd. 1,991,016,135.19 - (1,565,750,063.91) - - - - 425,266,071.28 -
Zhongqi Chuangzhi Technology Co., Ltd. 100,000,000.00 100,000,000.00 (9,465,002.85) - - - - 190,534,997.15 -
Chongqing Changxin Zhiqi Private Equity Investment Fund
Partnership (Limited Partnership) - 25,500,000.00 (492,412.38) - - - - 25,007,587.62 -
Subtotal 5,942,880,787.94 867,235,994.00 (763,664,091.57) - - (68,757,965.83) - 5,977,694,724.54 -
Total 12,109,089,795.67 867,235,994.00 924,827,870.13 (1,279,985.89) 173,259,152.47 (827,757,965.83) - 13,245,374,860.55 -
148
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
11. Investment in other equity instruments
2022
Accumulative changes in Fair value Dividends Income Reason for being designated
fair value included in other as fair value through other
comprehensive income comprehensive income
China South Industry Group Finance Co., Ltd 181,979,200.00 339,000,000.00 143,737,363.49 Unlisted equity instruments
National Innovation Center of Intelligent and connected Vehicles 2,700,000.00 52,700,000.00 73,034.00 Unlisted equity instruments
Guolian Automobile Power Battery Research Institute Co.,Ltd. - 40,000,000.00 - Unlisted equity instruments
China South Industries Financial Leasing Co., Ltd. 3,698,000.00 34,250,000.00 411,666.67 Unlisted equity instruments
Zhong Fa Lian Investment Co., Ltd. - 21,000,000.00 15,866,100.00 Unlisted equity instruments
CAERI(Beijing) automobile Lightweight Technology Research
Institution Co., Ltd. - 3,000,000.00 - Unlisted equity instruments
Total 188,377,200.00 489,950,000.00 160,088,164.16
2021
Accumulative changes in Fair value Dividends Income Reason for being designated
fair value included in other as fair value through other
comprehensive income comprehensive income
Corun Hybrid Power Technology Co. Ltd 5,959,600.00 205,959,600.00 - Unlisted equity instruments
China South Industries Financial Leasing Co., Ltd. 174,979,200.00 332,000,000.00 70,203,905.15 Unlisted equity instruments
Guoqi (Beijing) Intelligent Network Association Automotive Research
Institute Co., Ltd. 100,000.00 50,100,000.00 - Unlisted equity instruments
Guoqi Automobile Power Cell Research Co., Ltd. 6,700,000.00 46,700,000.00 - Unlisted equity instruments
China South Industry Group Financial Leasing Co., Ltd. 12,098,000.00 42,650,000.00 - Unlisted equity instruments
Zhong Fa Lian Investment Co., Ltd. - 21,000,000.00 8,296,000.00 Unlisted equity instruments
CAERI(Beijing) automobile Lightweight Technology Research
Institution Co., Ltd. - 3,000,000.00 - Unlisted equity instruments
Total 199,836,800.00 701,409,600.00 78,499,905.15
In 2022,the Group disposed of investments in other equity instruments of RMB205,959,600.00, totaling RMB5,065,660.00 from other comprehensive income to retained earnings.
149
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
12. Investment property
Cost Model
Buildings 2022 2021
Original cost
Beginning and Ending balance 10,050,100.00 10,050,100.00
Accumulated depreciation and amortization
Beginning 3,400,673.40 3,173,961.84
Accrual 226,711.56 226,711.56
Ending 3,627,384.96 3,400,673.40
Impairment Provision
Beginning and Ending - -
Carrying amount
Ending 6,422,715.04 6,649,426.60
Beginning 6,649,426.60 6,876,138.16
The investment property is rented to third parties in the form of operating lease.
As at 31 December 2022, there was no investment property without property certificate (As at 31
December 2021: Nil).
150
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
13. Fixed assets
(1) Details of fixed assets
2022
Buildings Machinery Vehicles Other Equipment Total
Original cost
Beginning 9,881,301,151.22 26,013,931,324.85 1,421,170,657.53 9,442,094,973.15 46,758,498,106.75
Purchase 1,265,124.39 3,890,620.93 1,608,965.83 10,537,259.44 17,301,970.59
Transfer from
Construction in
progress 15,846,963.74 576,973,067.51 670,805,017.81 373,187,890.97 1,636,812,940.03
Government
grants 16,984,544.50 146,643,567.32 - 24,611,126.55 188,239,238.37
Disposal 52,803,557.15 153,014,327.54 109,955,267.54 316,751,699.72 632,524,851.95
Other deduction - - 433,482.76 8,742,126.24 9,175,609.00
Ending 9,828,625,137.70 26,295,137,118.43 1,983,195,890.87 9,475,715,171.05 47,582,673,318.05
Accumulated depreciation
Beginning 2,830,770,398.43 14,770,986,696.00 537,352,883.68 4,988,689,213.76 23,127,799,191.87
Accrual 319,496,770.54 1,708,030,839.79 228,535,233.82 580,979,774.97 2,837,042,619.12
Disposal 26,785,669.57 91,638,342.44 52,941,050.82 225,100,138.35 396,465,201.18
Other deduction - - 205,021.23 1,225,713.14 1,430,734.37
Ending 3,123,481,499.40 16,387,379,193.35 712,742,045.45 5,343,343,137.24 25,566,945,875.44
Impairment provision
Beginning 99,421,052.16 1,772,417,722.74 99,933,602.55 332,966,687.27 2,304,739,064.72
Accrual 858,451.71 465,342,187.03 763,786.28 6,436,099.39 473,400,524.41
Disposal 2,561,175.92 47,971,857.94 42,928,054.22 15,715,749.88 109,176,837.96
Ending 97,718,327.95 2,189,788,051.83 57,769,334.61 323,687,036.78 2,668,962,751.17
Carrying amount
Ending 6,607,425,310.35 7,717,969,873.25 1,212,684,510.81 3,808,684,997.03 19,346,764,691.44
Beginning 6,951,109,700.63 9,470,526,906.11 783,884,171.30 4,120,439,072.12 21,325,959,850.16
151
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
13. Fixed assets (continued)
(1) Details of fixed assets (continued)
2021
Buildings Machinery Vehicles Other Equipment Total
Original cost
Beginning
10,066,169,441.77 26,288,090,298.73 1,226,140,443.01 8,865,870,472.93 46,446,270,656.44
Purchase 11,306.95 17,077,558.92 3,115,387.73 6,458,371.45 26,662,625.05
Transfer from
Construction in
progress 10,913,289.22 56,958,774.50 389,549,047.56 647,311,794.62 1,104,732,905.90
Government
grants 58,219,853.53 280,095,599.82 14,203,669.96 29,234,649.46 381,753,772.77
Disposal 137,573,033.19 68,099,707.48 183,430,550.81 48,311,016.39 437,414,307.87
Ending 9,881,301,151.22 26,013,931,324.85 1,421,170,657.53 9,442,094,973.15 46,758,498,106.75
Accumulated depreciation
Beginning 2,477,068,266.00 13,020,076,877.36 507,000,274.31 4,428,190,094.09 20,432,335,511.76
Accrual 389,459,177.13 1,811,920,566.61 118,631,361.81 605,254,490.57 2,925,265,596.12
Disposal 35,757,044.70 61,010,747.97 88,278,752.44 44,755,370.90 229,801,916.01
Ending 2,830,770,398.43 14,770,986,696.00 537,352,883.68 4,988,689,213.76 23,127,799,191.87
Impairment provision
Beginning 100,679,400.66 1,255,840,090.86 124,040,034.63 232,784,768.51 1,713,344,294.66
Accrual 6,495,998.00 521,868,181.56 556,175.52 102,761,810.82 631,682,165.90
Disposal 7,754,346.50 5,290,549.68 24,662,607.60 2,579,892.06 40,287,395.84
Ending 99,421,052.16 1,772,417,722.74 99,933,602.55 332,966,687.27 2,304,739,064.72
Carrying amount
Ending 6,951,109,700.63 9,470,526,906.11 783,884,171.30 4,120,439,072.12 21,325,959,850.16
Beginning 7,488,421,775.11 12,012,173,330.51 595,100,134.07 4,204,895,610.33 24,300,590,850.02
(2) Fixed assets that are temporarily unused
On December 31, 2022, fixed assets with a book value of approximately RMB 191,192,253.37
(December 31, 2021: book value of approximately RMB 150,232,534.30) were temporarily idle due
to product planning and other reasons.
152
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
(3) The fixed assets which are rented out under operating leases is as follow:
2022
Buildings Machinery Vehicles Total
Original cost
Beginning 407,385,917.78 193,922,403.14 1,142,516,412.19 1,743,824,733.11
Addition 2,106,368,074.56 4,818,277,154.51 655,644,459.59 7,580,289,688.66
Deduction 24,869,567.09 116,543,579.08 107,604,264.51 249,017,410.68
Ending 2,488,884,425.25 4,895,655,978.57 1,690,556,607.27 9,075,097,011.09
Accumulated depreciation
Beginning 98,821,531.20 68,789,989.43 438,775,091.17 606,386,611.80
Addition 1,078,562,000.71 3,157,041,669.93 193,774,365.75 4,429,378,036.39
Deduction 3,907,592.46 52,571,903.60 84,324,631.38 140,804,127.44
Ending 1,173,475,939.45 3,173,259,755.76 548,224,825.54 4,894,960,520.75
Impairment provision
Beginning 13,971,205.80 63,528,839.55 - 77,500,045.35
Addition 400,000.00 338,636,738.17 - 339,036,738.17
14,371,205.80 402,165,577.72 - 416,536,783.52
Carrying amount
Ending 1,301,037,280.00 1,320,230,645.09 1,142,331,781.73 3,763,599,706.82
Beginning 294,593,180.78 61,603,574.16 703,741,321.02 1,059,938,075.96
153
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
13. Fixed assets (continued)
(3) The fixed assets which are rented out under operating leases is as follow:
2021
Buildings Machinery Vehicles Total
Original cost
Beginning 262,415,513.45 156,809,971.64 896,182,876.14 1,315,408,361.23
Addition 144,970,404.33 37,112,431.50 388,057,070.59 570,139,906.42
Deduction - - 141,723,534.54 141,723,534.54
Ending 407,385,917.78 193,922,403.14 1,142,516,412.19 1,743,824,733.11
Accumulated depreciation
Beginning 76,364,071.98 61,385,064.83 415,268,200.97 553,017,337.78
Addition 22,457,459.22 7,404,924.60 108,398,037.71 138,260,421.53
Deduction - - 84,891,147.51 84,891,147.51
Ending 98,821,531.20 68,789,989.43 438,775,091.17 606,386,611.80
Impairment provision
Beginning and
ending balance 13,971,205.80 63,528,839.55 - 77,500,045.35
Carrying amount
Ending 294,593,180.78 61,603,574.16 703,741,321.02 1,059,938,075.96
Beginning 172,080,235.67 31,896,067.26 480,914,675.17 684,890,978.10
154
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
13. Fixed assets (continued)
(4) Fixed assets without property certificate as at 31 December 2022 are as follow:
Carrying amount Reason for incomplete
Assembly workshop 282,128,369.30 In process
Painting workshop 249,774,785.51 In process
Welding workshop 185,112,742.30 In process
Other plants 88,726,117.42 In process
Engine workshop 69,319,545.23 In process
Stamping Workshop 65,725,773.29 In process
S series machine plant 56,059,727.15 In process
H plant Phase IV 48,377,664.60 In process
R&D Center 30,473,938.22 In process
Yuzui Auto City 21,440,076.05 In process
Staff cafeteria 12,232,566.28 In process
Other supporting facilities 10,170,587.87 In process
Emission Capability Laboratory 9,115,582.70 In process
Office building 171,633.38 In process
155
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
14. Construction in progress
(1) Details of construction in progress
Item 2022 2021
Balance Provision Carrying amount Balance Provision Carrying amount
Mini-bus production
equipment 75,025,377.82 - 75,025,377.82 110,892,336.09 - 110,892,336.09
Car production
equipment 242,918,939.86 22,624,011.22 220,294,928.64 304,941,771.34 21,313,648.08 283,628,123.26
Engine plant 504,558,659.05 - 504,558,659.05 127,069,581.90 - 127,069,581.90
Vehicle research
institution 17,740,102.50 - 17,740,102.50 27,661,450.64 - 27,661,450.64
Car production
Project of
Hefei Changan 55,863,516.26 - 55,863,516.26 13,073,052.88 - 13,073,052.88
Light vehicle
project 13,541,208.87 - 13,541,208.87 20,953,663.84 - 20,953,663.84
Car-sharing project 9,631,578.61 - 9,631,578.61 721,192,899.46 - 721,192,899.46
Others 514,351,814.01 23,108,967.12 491,242,846.89 206,083,453.28 50,378,021.92 155,705,431.36
Total 1,433,631,196.98 45,732,978.34 1,387,898,218.64 1,531,868,209.43 71,691,670.00 1,460,176,539.43
The movement of impairment for construction in progress is as follows:
Beginning balance Provision Write-off Ending balance
2022 71,691,670.00 1,533,334.00 27,492,025.66 45,732,978.34
2021 71,352,959.12 558,034.00 219,323.12 71,691,670.00
156
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
14. Construction in progress (continued)
(2) Movements of significant construction in progress in 2022
Budget Beginning balance Addition Other deduction Transfer to fixed assets The project Progress of Source of funds Ending balance
(RMB0,000) investments’ construction
proportion of
budget
Mini-bus production
137,470.00 110,892,336.09 191,447,800.99 - 227,314,759.26 62% 62% Self-funded 75,025,377.82
equipment
Car production Self-raised and additional
360,738.00 283,628,123.26 282,894,772.61 120,121,061.17 226,106,906.06 35% 35% 220,294,928.64
equipment issuance
Self-raised and additional
485,216.00 127,069,581.90 507,405,858.99 - 129,916,781.84 63% 63% 504,558,659.05
Engine plant issuance
Vehicle research
209,906.00 27,661,450.64 36,536,296.38 - 46,457,644.52 75% 75% Self-funded 17,740,102.50
institution
Car production project of Self-raised and additional
394,980.00 13,073,052.88 80,152,211.39 - 37,361,748.01 88% 88% 55,863,516.26
Hefei Changan issuance
Light vehicle project 65,828.00 20,953,663.84 58,492,273.87 - 65,904,728.84 44% 44% Self-funded 13,541,208.87
Car-sharing project 721,192,899.46 19,868,623.27 64,969,026.54 666,460,917.58 9,631,578.61
Others 155,705,431.36 572,826,869.45 - 237,289,453.92 491,242,846.89
Total 1,460,176,539.43 1,749,624,706.95 185,090,087.71 1,636,812,940.03 1,387,898,218.64
157
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
14. Construction in progress (continued)
(2) Movements of significant construction in progress in 2021：(continued)
Budget Beginning balance Addition Other Transfer to fixed assets The project Progress of Source of funds Ending balance
(RMB0,000) deduction investments’ construction
proportion of
budget
Mini-bus production
equipment 104,349.00 17,743,577.36 108,291,158.23 - 15,142,399.50 63% 63% Self-funded 110,892,336.09
Car production Self-raised and additional
equipment 335,015.50 308,892,683.21 307,662,699.16 - 332,927,259.11 35% 35% issuance 283,628,123.26
Self-raised and additional
Engine plant 445,907.12 146,394,397.19 1,726,013.42 - 21,050,828.71 57% 57% issuance 127,069,581.90
Vehicle research
institution 209,906.00 38,021,494.37 39,150,347.51 - 49,510,391.24 73% 73% Self-funded 27,661,450.64
Car production project of Self-raised and additional
Hefei Changan 394,980.00 336,334.75 21,135,448.23 - 8,398,730.10 86% 86% issuance 13,073,052.88
Light vehicle project 52,008.34 8,029,777.67 47,344,748.00 - 34,420,861.83 45% 45% Self-funded 20,953,663.84
Car-sharing project 391,178,598.20 750,682,874.26 - 420,668,573.00 721,192,899.46
Others 137,439,285.95 240,880,007.82 - 222,613,862.41 155,705,431.36
Total 1,048,036,148.70 1,516,873,296.63 - 1,104,732,905.90 1,460,176,539.43
158
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
15. Right-of-use assets
2022
Buildings Buildings
2022 2021
Cost
Beginning 92,864,546.90 55,163,093.63
Addition 141,510,763.34 37,701,453.27
Disposal 2,689,483.42 -
Other deduction 78,792,400.21 -
Ending 152,893,426.61 92,864,546.90
Accumulated depreciation
Beginning 26,551,483.92 -
Accrual 29,882,264.96 26,551,483.92
Disposal 582,721.40 -
Other deduction 3,770,986.88 -
Ending 52,080,040.60 26,551,483.92
Carrying amount
Ending 100,813,386.01 66,313,062.98
Beginning 66,313,062.98 55,163,093.63
159
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
16. Intangible assets
2022
Land use rights Software use Trademark use Non-patent Patent Total
rights rights technology technology
Original cost
Beginning 2,284,655,025.60 785,360,545.01 211,864,157.55 6,643,349,368.90 - 9,925,229,097.06
Purchase - 60,419,074.89 - - 85,556,571.30 145,975,646.19
Internal
research and
development - - - 1,052,395,491.38 - 1,052,395,491.38
Other deduction - 388,564.73 - - - 388,564.73
Disposal 46,688,334.00 - - - - 46,688,334.00
Ending 2,237,966,691.60 845,391,055.17 211,864,157.55 7,695,744,860.28 85,556,571.30 11,076,523,335.90
Accumulated amortization
Beginning 440,258,024.63 671,428,815.01 211,786,800.00 3,969,781,572.32 - 5,293,255,211.96
Accrual 48,341,991.87 55,422,065.44 4,716.98 934,762,871.41 7,129,714.27 1,045,661,359.97
Other deduction - 388,564.73 - - - 388,564.73
Disposal 20,568,118.91 - - - - 20,568,118.91
Ending 468,031,897.59 726,462,315.72 211,791,516.98 4,904,544,443.73 7,129,714.27 6,317,959,888.29
Impairment provision
Beginning - 23,617,923.17 - 222,358,304.26 - 245,976,227.43
Accrual - - - 66,201,964.50 - 66,201,964.50
Ending - 23,617,923.17 - 288,560,268.76 - 312,178,191.93
Carrying amount
Ending 1,769,934,794.01 95,310,816.28 72,640.57 2,502,640,147.79 78,426,857.03 4,446,385,255.68
Beginning 1,844,397,000.97 90,313,806.83 77,357.55 2,451,209,492.32 - 4,385,997,657.67
160
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
16. Intangible assets(continued)
2021
Land use rights Software use Trademark use Non-patent Total
rights rights technology
Original cost
Beginning 2,303,983,300.91 730,114,323.90 211,784,400.00 7,564,874,038.93 10,810,756,063.74
Purchase 5,790,686.14 55,246,221.11 79,757.55 4,716.98 61,121,381.78
Internal
research and
development - - - 1,147,021,839.86 1,147,021,839.86
Disposal 25,118,961.45 - - 2,068,551,226.87 2,093,670,188.32
Ending 2,284,655,025.60 785,360,545.01 211,864,157.55 6,643,349,368.90 9,925,229,097.06
Accumulated amortization
Beginning 402,078,843.59 618,795,694.50 205,953,466.62 4,744,811,854.08 5,971,639,858.79
Accrual 50,147,493.85 52,633,120.51 5,833,333.38 966,237,928.00 1,074,851,875.74
Disposal 11,968,312.81 - - 1,741,268,209.76 1,753,236,522.57
Ending 440,258,024.63 671,428,815.01 211,786,800.00 3,969,781,572.32 5,293,255,211.96
Impairment provision
Beginning - 23,617,923.17 - 383,915,337.04 407,533,260.21
Accrual - - - 165,725,984.32 165,725,984.32
Disposal - - - 327,283,017.10 327,283,017.10
Ending - 23,617,923.17 - 222,358,304.26 245,976,227.43
Carrying amount
Ending 1,844,397,000.97 90,313,806.83 77,357.55 2,451,209,492.32 4,385,997,657.67
Beginning 1,901,904,457.32 87,700,706.23 5,830,933.38 2,436,146,847.81 4,431,582,944.74
As of December 31, 2022, intangible assets formed through internal research and development
accounted for 56.28% of the year-end book value of intangible assets (December 31, 2021:
55.89%).
As of December 31, 2022, there is no land use rights that have not completed the land use right
certificate (December 31, 2021: Nil)
161
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
17. Development expenditure
2022
Beginning balance Addition Deduction Ending balance
Internal research and Recognized as Charged to income Other
development intangible assets Statement of the deduction
current year
Automobile
Development 727,568,248.78 1,362,363,103.60 1,052,395,491.38 62,815,604.46 251,509,079.07 723,211,177.47
2021
Beginning balance Addition Deduction Ending balance
Internal research Recognized as Charged to income Other deduction
and development intangible assets Statement of the
current year
Automobile
Development 596,577,787.95 1,311,917,325.01 1,147,021,839.86 33,905,024.32 - 727,568,248.78
18. Goodwill
2022
Beginning Addition Deduction Ending balance
balance
Hebei Changan Automobile Co., Ltd. 9,804,394.00 - - 9,804,394.00
Nanjing Changan Automobile Co., Ltd. - - - -
Avatr Technology (Chongqing) Co., Ltd. 39,078,794.37 - 39,078,794.37 -
Total 48,883,188.37 - 39,078,794.37 9,804,394.00
2021
Beginning Addition Deduction Ending balance
balance
Hebei Changan Automobile Co., Ltd. 9,804,394.00 - - 9,804,394.00
Nanjing Changan Automobile Co., Ltd. - - - -
Avatr Technology (Chongqing) Co., Ltd. 39,078,794.37 - - 39,078,794.37
Total 48,883,188.37 - - 48,883,188.37
The movement of provision for goodwill is as follow:
2022 and 2021
Beginning balance Addition Deduction Ending balance
Nanjing Changan Automobile Co., Ltd. 73,465,335.00 - - 73,465,335.00
Due to the accumulated losses of Nanjing Changan Automobile Co., Ltd., provision for related
goodwill has been fully accrued and amounted to RMB73,465,335.00.
162
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
19. Long-term deferred expenses
Beginning balance Addition Deduction Ending balance
2022 15,032,814.19 15,184,585.04 3,841,977.06 26,375,422.17
2021 10,642,512.51 8,950,773.44 4,560,471.76 15,032,814.19
20. Deferred tax assets and liabilities
Deferred income tax assets and deferred income tax liabilities that are not offset:
2022 2021
Deferred tax assets Deductible Deferred tax assets Deductible Deferred tax assets
temporary temporary
differences differences
Assets provision 3,278,951,051.51 491,238,489.39 2,777,356,777.37 416,729,166.66
Accrued expenses and
contingent liabilities 8,585,308,052.56 1,298,584,169.65 6,824,636,821.50 1,034,344,964.94
Unpaid tech development
expense and advertisement
expense 372,397,166.51 55,859,574.98 371,602,577.37 55,740,386.60
Deferred income 2,699,509,959.27 457,007,113.15 2,897,724,045.52 434,658,606.83
Unpaid salary and bonus and
others 4,831,140,039.89 725,797,840.01 2,252,471,662.68 339,346,391.96
Total 19,767,306,269.74 3,028,487,187.18 15,123,791,884.44 2,280,819,516.99
2022 2021
Deferred tax liabilities： Taxable temporary Deferred tax Taxable temporary Deferred tax
differences liabilities differences liabilities
Available-for-sale financial
assets on the changes in
fair value recorded in
capital reserve 358,180,218.36 53,727,032.75 366,226,945.07 54,934,041.76
Fair value adjustment of
business combination not
under common control 204,733,319.00 30,709,997.85 223,598,108.60 33,539,716.29
Long-term equity
investment 971,329,619.28 145,699,442.89 824,671,946.85 123,700,792.03
Other 46,001,784.40 6,900,267.67 35,116,281.93 5,267,442.29
Total 1,580,244,941.04 237,036,741.16 1,449,613,282.45 217,441,992.37
Unrecognized deductible temporary differences and tax losses of unrecognized are as follows:
2022 2021
The deductible temporary difference 1,785,535,297.97 2,557,584,132.14
The deductible tax loss 3,908,340,793.95 7,599,963,296.27
Total 5,693,876,091.92 10,157,547,428.41
163
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
20. Deferred tax assets and liabilities (continued)
Note: Due to the uncertainty of whether there will be enough taxable profit in future to utilize the
above deductible loss, no deferred tax assets have been recognized accordingly.
Maturity period for unrecognized deductible tax losses:
2022 2021
2022 - 186,827,208.01
2023 719,486,343.29 719,486,343.29
2024 644,243,430.69 644,243,430.69
2025 669,056,651.63 804,477,322.53
2026 172,527,777.26 191,081,327.12
2027 and beyond 1,703,026,591.08 5,053,847,664.63
Total 3,908,340,793.95 7,599,963,296.27
21. Short-term loans
Classification of short-term loans：
2022 2021
Mortgage loans 29,000,000.00 19,000,000.00
Total 29,000,000.00 19,000,000.00
As at 31 December 2022, the interest rates of the above loans were 4.6%-4.75% (as at 31
December 2021: 4.75%).
As at 31 December 2022, there was no overdue short-term loan (as at 31 December 2021: Nil).
In 2022, the Group used land use rights with a book value of RMB 16,823,861.76 and fixed assets
with a book value of RMB 29,963,526.50 as collateral to obtain a working capital mortgage loan
of RMB 29,000,000.00 from the China South Industries Group Finance Co., Ltd. (2021: The Group
used land use rights with a book value of RMB 17,242,713.12 and fixed assets with a book value of
RMB 16,987,667.52 to obtain a liquidity mortgage loan of RMB 19,000,000.00 from the China
South Industries Group Finance Co., Ltd.).
164
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
22. Notes payable
2022 2021
Commercial acceptance bill 5,001,155,687.84 5,419,108,409.88
Bank acceptance bill 17,071,638,176.99 18,873,159,961.24
Total 22,072,793,864.83 24,292,268,371.12
As at 31 December 2022, there is no overdue unpaid notes payable (as at 31 December 2021: Nil)
23. Accounts payable
2022 2021
Accounts payable 29,449,664,138.75 23,650,604,870.98
As at 31 December 2022, there were no significant accounts payable aged over one year (as at 31
December 2021: Nil).
24. Contract liabilities/Advances from customers
2022 2021
Advance payment 4,808,762,223.46 9,274,445,050.60
Advance service payment 846,494,569.20 566,064,463.79
Total 5,655,256,792.66 9,840,509,514.39
165
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
25. Payroll payable
2022
Beginning Addition Deduction Other Ending
balance deduction balance
Short term salary benefits 2,474,414,390.26 8,829,988,102.78 8,546,570,667.33 41,347,085.59 2,716,484,740.12
Defined contribution plans 89,216,538.26 667,430,841.13 665,797,989.33 1,991,640.33 88,857,749.73
Early retirement benefits 2,940,000.00 2,323,630.24 3,447,630.24 - 1,816,000.00
Total 2,566,570,928.52 9,499,742,574.15 9,215,816,286.90 43,338,725.92 2,807,158,489.85
2021
Beginning Addition Deduction Ending balance
balance
Short term salary benefits 1,920,693,265.47 7,623,229,078.65 7,069,507,953.86 2,474,414,390.26
Defined contribution plans 91,080,101.10 558,047,277.44 559,910,840.28 89,216,538.26
Early retirement benefits 4,095,000.00 2,728,535.70 3,883,535.70 2,940,000.00
Total 2,015,868,366.57 8,184,004,891.79 7,633,302,329.84 2,566,570,928.52
166
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
25. Payroll payable (continued)
Short term salary benefits：
2022
Beginning Addition Deduction Other Ending
balance deduction balance
Salary, bonus, allowance
and subsidy 2,051,402,711.53 7,146,292,092.31 6,945,040,964.14 30,997,758.66 2,221,656,081.04
Employee benefit 50,630,435.22 386,349,815.91 386,037,939.85 185,939.60 50,756,371.68
Social insurance
Medical insurance 21,021,344.24 395,967,753.79 394,480,490.19 1,158,414.89 21,350,192.95
Industrial injury
insurance 11,118,683.26 40,723,587.86 40,684,896.28 54,852.60 11,102,522.24
Maternity insurance 1,382,325.53 1,172,637.29 1,159,217.83 - 1,395,744.99
Housing accumulation
fund 82,772,742.30 491,467,767.44 488,154,268.15 2,142,079.87 83,944,161.72
Labor fund and employee
education fund 256,086,148.18 368,014,448.18 291,012,890.89 6,808,039.97 326,279,665.50
Total 2,474,414,390.26 8,829,988,102.78 8,546,570,667.33 41,347,085.59 2,716,484,740.12
2021
Beginning Addition Deduction Ending balance
balance
Salary, bonus, allowance
and subsidy 1,575,687,212.16 6,202,178,861.73 5,726,463,362.36 2,051,402,711.53
Employee benefit 50,451,868.33 316,335,971.16 316,157,404.27 50,630,435.22
Social insurance
Medical insurance 19,319,679.31 332,968,337.05 331,266,672.12 21,021,344.24
Industrial injury
insurance 9,388,780.46 35,224,367.34 33,494,464.54 11,118,683.26
Maternity insurance 1,337,197.59 767,729.44 722,601.50 1,382,325.53
Housing accumulation fund 74,632,036.37 386,080,540.13 377,939,834.20 82,772,742.30
Labor fund and employee
education fund 189,876,491.25 349,673,271.80 283,463,614.87 256,086,148.18
Total 1,920,693,265.47 7,623,229,078.65 7,069,507,953.86 2,474,414,390.26
167
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
25. Payroll payable (continued)
Defined contribution plans：
2022
Beginning Addition Deduction Other Ending balance
balance Deduction
Basic retirement
security 79,483,988.05 646,286,750.65 644,976,261.42 1,763,392.69 79,031,084.59
Unemployment
insurance 9,732,550.21 21,144,090.48 20,821,727.91 228,247.64 9,826,665.14
Total 89,216,538.26 667,430,841.13 665,797,989.33 1,991,640.33 88,857,749.73
2021
Beginning Addition Deduction Ending balance
balance
Basic retirement
security 82,228,882.36 539,914,162.66 542,659,056.97 79,483,988.05
Unemployment
insurance 8,851,218.74 18,133,114.78 17,251,783.31 9,732,550.21
Total 91,080,101.10 558,047,277.44 559,910,840.28 89,216,538.26
The salary, bonus, allowance and subsidy, employee benefits and other social insurances
mentioned above are paid in time according to related laws and regulations and sets of the Group.
26. Taxes payable
2022 2021
Value-added tax 655,162,944.40 226,203,631.00
Consumption tax 378,822,293.63 677,686,833.74
Corporate income tax 550,250,134.24 105,632,071.69
City maintenance and construction tax and 106,797,577.85 40,480,950.08
Others 58,913,132.20 71,309,911.01
Total 1,749,946,082.32 1,121,313,397.52
168
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
27. Other payables
2022 2021
Purchase and construction of fixed assets, intangible
1,190,478,260.12 949,561,307.22
assets and engineering deposits
Customer and supplier margin 839,653,876.07 614,910,836.94
New energy vehicle subsidiaries 697,956,559.00 -
Advanced receipt of land and plant disposal fees 635,268,035.18 -
Treasury stock repurchase 627,060,416.52 655,812,327.60
Advertisement fees 505,569,065.16 890,826,555.71
Storage fees and freight 382,409,902.25 159,463,618.29
Maintenance fees 278,765,596.52 212,946,188.78
Capital increase from third parties received in advance
- 253,750,000.00
by subsidiaries
Others 925,604,713.85 825,355,510.15
Total 6,082,766,424.67 4,562,626,344.69
28. Contingent liabilities
2022
Beginning Addition Deduction Ending
Warranty 3,295,272,783.50 1,595,486,879.87 738,758,003.06 4,152,001,660.31
Contingent liabilities of contract
performance 543,742,894.34 26,346,680.32 132,791,913.48 437,297,661.18
Total 3,839,015,677.84 1,621,833,560.19 871,549,916.54 4,589,299,321.49
2021
Beginning Addition Deduction Ending
Warranty 2,555,699,406.23 1,573,355,355.84 833,781,978.57 3,295,272,783.50
Contingent liabilities of contract
performance 569,471,536.23 144,904,107.11 170,632,749.00 543,742,894.34
Total 3,125,170,942.46 1,718,259,462.95 1,004,414,727.57 3,839,015,677.84
29. Non-current liability within 1 year
2022 2021
Long-term loan within 1 year 604,000,000.00 354,300,000.00
Long-term payables within 1 year 244,429,325.65 154,593,759.05
Lease liabilities within 1 year 37,294,575.69 24,945,824.52
885,723,901.34 533,839,583.57
Non-current liability within 1 year refer to refer to Note V 31, 33 and 34.
169
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
30. Other current liabilities
2022 2021
Accrued commercial discount payable 3,837,216,057.38 3,367,324,452.66
Accrued market development expense 1,004,950,610.70 808,031,552.57
Accrued transportation fee 728,264,657.72 729,390,155.06
Accrued technology royalty 534,463,454.23 342,675,110.58
Accrued labor service fee 107,051,967.02 63,197,022.32
Accrued integrated services fee 87,715,544.50 79,555,300.00
Accrued utilities 60,370,787.91 48,068,943.51
Accrued negative points for fuel consumption 59,308,609.28 33,239,495.00
Others 207,702,978.88 209,476,997.52
Total 6,627,044,667.62 5,680,959,029.22
31. Long-term Loan
2022 2021
Credit loan 640,000,000.00 954,300,000.00
Deduction: Loan within 1 year 604,000,000.00 354,300,000.00
Net long-term borrowings 36,000,000.00 600,000,000.00
As at 31 December 2022, the interest rates of the above loans were 1.00%-3.00% (as at 31 December 2021: 1.00%-
3.00%).
As at 31 December 2022, there is no overdue long-term loans (as at 31 December 2021: Nil).
32. Bonds Payable
2022 2021
Corporate Bonds 999,528,301.88 -
In December 2022, the Company publicly issued technology innovation corporate bonds (Phase I) to professional
investors, with a face value of RMB1,000,000,000.00, a coupon rate of 3%, simple interest payable annually, the
interest payment date is December 20 of each year from 2023 to 2027, and the final redemption date is December
20, 2027.
33. Lease liabilities
2022 2021
Lease liabilities 97,499,973.67 63,625,560.11
Less：Lease liabilities within 1 year 37,294,575.69 24,945,824.52
60,205,397.98 38,679,735.59
170
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
34. Long-term payables
2022 2021
Long-term payables 408,939,511.34 642,513,537.69
Special payables 144,579,238.78 182,959,952.39
Total 553,518,750.12 825,473,490.08
Long-term payables:
2022 2021
Purchase of fixed assets 653,368,836.99 797,107,296.74
Less：Long-term payables within 1 year 244,429,325.65 154,593,759.05
Total 408,939,511.34 642,513,537.69
Special payables:
2022
Beginning Addition Deduction Ending
Land relocation compensation of Nanjing
changan 55,350,709.40 - 55,350,709.40 -
Intelligent manufacturing project 82,777,201.36 6,169,200.00 34,823,429.36 54,122,972.00
Lightweight design of automobile structure 18,903,766.50 4,900,000.00 9,393,208.56 14,410,557.94
Others 25,928,275.13 71,133,518.47 21,016,084.76 76,045,708.84
Total 182,959,952.39 82,202,718.47 120,583,432.08 144,579,238.78
2021
Beginning Addition Deduction Ending
Land relocation compensation of Nanjing
changan 55,350,709.40 - - 55,350,709.40
Intelligent manufacturing project 131,865,237.97 38,618,400.00 87,706,436.61 82,777,201.36
Lightweight design of automobile structure 6,914,468.49 24,922,500.00 12,933,201.99 18,903,766.50
Others 67,130,512.84 18,126,077.00 59,328,314.71 25,928,275.13
Total 261,260,928.70 81,666,977.00 159,967,953.31 182,959,952.39
171
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
35. Long-term payroll payable
2022 2021
Net obligation of defined benefit plan 29,227,000.00 30,917,000.00
Early retirement 5,786,000.00 8,186,000.00
Total 35,013,000.00 39,103,000.00
In addition to basic retirement security and unemployment insurance, which are managed by
local government, the Group offers different kinds of overall pension and annual compensation
to some retired employees until their death. The Group provides subsidies to former military
personnel who participated in specific wars and offers large medical treatment insurance for all
retired personnel. The Group also offered early-retired salary, social insurances and housing
accumulation fund with different standards until their formal retirement (Male: Age 60; Female:
Age 50 or 55). These amounts of social insurances and housing accumulation fund are based on
cost base and statutory proportion.
The present value of the defined benefits plans is valued by expected cumulative welfare units
determination, which was ensured by Aon Enterprise Solutions Shanghai Co Ltd. at 31 December
2022.
The related plans recognized in the profit and loss of the defined benefit plan are as follows:
2022 2021
Service costs- current period 56,000.00 47,000.00
Net interest 818,000.00 964,000.00
Net post-employment benefit costs 874,000.00 1,011,000.00
Recorded in general administrative expenses 874,000.00 1,011,000.00
Movement of present value of defined benefits plan is as follows:
Defined Benefit Plan Obligation
2022 2021
Beginning balance 30,917,000.00 30,832,000.00
Charged to income Statement of the current period
Service costs- current period 56,000.00 47,000.00
Interest expense, net 818,000.00 964,000.00
Actuarial losses charged to other
comprehensive income (112,000.00) 1,519,000.00
Benefits Payment (2,452,000.00) (2,445,000.00)
Ending balance 29,227,000.00 30,917,000.00
172
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
36. Deferred income
2022
2021.12.31 Addition Deduction Other deduction 2022.12.31
Government grants
related to assets 224,903,605.46 185,504,839.57 188,239,238.37 - 222,169,206.66
Government grants
related to gains 699,846,125.66 - 299,235,506.09 275,211,276.61 125,399,342.96
924,749,731.12 185,504,839.57 487,474,744.46 275,211,276.61 347,568,549.62
2021
2020.12.31 Addition Deduction 2021.12.31
Government grants related
to assets 205,752,282.46 400,905,095.77 381,753,772.77 224,903,605.46
Government grants related
to gains 612,646,147.76 599,550,000.00 512,350,022.10 699,846,125.66
818,398,430.22 1,000,455,095.77 894,103,794.87 924,749,731.12
As at 31 December 2022, details of liabilities related to government grants are as follows:
2021.12.31 Addition Deduction 2022.12.31
Related to assets: 224,903,605.46 185,504,839.57 188,239,238.37 222,169,206.66
Production and
construction
subsidies 158,141,323.00 185,504,839.57 177,229,238.37 166,416,924.20
Other government
subsidies 66,762,282.46 - 11,010,000.00 55,752,282.46
Related to gains: 699,846,125.66 - 574,446,782.70 125,399,342.96
R&D technology
subsidies 569,842,539.65 - 448,091,782.38 121,750,757.27
Other government
subsidies 130,003,586.01 - 126,355,000.32 3,648,585.69
Total 924,749,731.12 185,504,839.57 762,686,021.07 347,568,549.62
173
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
36. Deferred income (continued)
As at 31 December 2021, details of liability related to government grants are as follows(Restated)：
2021.12.31 Addition Deduction 2022.12.31
Related to assets: 205,752,282.46 400,905,095.77 381,753,772.77 224,903,605.46
Production and
construction
subsidies 150,000,000.00 389,895,095.77 381,753,772.77 158,141,323.00
Other government
subsidies 55,752,282.46 11,010,000.00 - 66,762,282.46
Related to gains: 612,646,147.76 599,550,000.00 512,350,022.10 699,846,125.66
R&D technology
subsidies 356,547,561.96 599,000,000.00 385,705,022.31 569,842,539.65
Other government
subsidies 256,098,585.80 550,000.00 126,644,999.79 130,003,586.01
Total 818,398,430.22 1,000,455,095.77 894,103,794.87 924,749,731.12
37. Other non-current liabilities
2022 2021
Advance service payment 1,728,721,535.34 1,352,292,332.21
Deduction: Advance service payment within 1 year 846,494,569.20 566,064,463.79
882,226,966.14 786,227,868.42
174
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
38. Share capital
2022
movement
Beginning Issuance of shares Stock dividend Transfer of reserve to Others Sub-total Ending
common shares
I. Restricted shares
1
Shares held by state-owned legal persons 396,393,645.00 - - 118,918,093.00 - 118,918,093.00 515,311,738.00
2 Other domestic
shareholdings 122,490,320.00 - - 36,747,096.00 10,950.00 36,758,046.00 159,248,366.00
Including：
shares held by
domestic legal persons - - - - - - -
shares held by
domestic natural persons 122,490,320.00 - - 36,747,096.00 10,950.00 36,758,046.00 159,248,366.00
3 Foreign shareholdings 934,900.00 - - 280,470.00 - 280,470.00 1,215,370.00
Total of restricted shares 519,818,865.00 - - 155,945,659.00 10,950.00 155,956,609.00 675,775,474.00
II. Unrestricted shares
1 RMB ordinary shares 5,849,553,939.00 - - 1,754,866,182.00 (10,950.00 ) 1,754,855,232.00 7,604,409,171.00
2 Foreign-funded shares listed
domestically 1,262,780,598.00 - - 378,834,179.00 - 378,834,179.00 1,641,614,777.00
Total of unrestricted shares 7,112,334,537.00 - - 2,133,700,361.00 (10,950.00 ) 2,133,689,411.00 9,246,023,948.00
III. Total shares 7,632,153,402.00 - - 2,289,646,020.00 - 2,289,646,020.00 9,921,799,422.00
Note: According to the Company's 2021 profit distribution and capital reserve conversion plan to increase share capital, the Company will increase the
capital reserve to all shareholders by 3 shares for every 10 shares, increasing the share capital by RMB 2,289,646,020.00 and reducing the capital reserve by
RMB 2,289,646,020.00.
175
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
38. Share capital (continued)
2021
movement
Beginning Issuance of shares Stock dividend Transfer of reserve to Others Sub-total Ending
common shares
I. Restricted shares
1 Shares held by state-owned legal
persons 283,138,318.00 - - 113,255,327.00 - 113,255,327.00 396,393,645.00
2 Other domestic
shareholdings 244,917,965.00 93,956,600.00 - 30,485,720.00 (245,935,065.00) (122,427,645.00) 122,490,320.00
Including：
shares held by
domestic legal persons 244,899,065.00 - - - (244,899,065.00) (244,899,065.00) -
shares held by
domestic natural persons 18,900.00 93,956,600.00 - 30,485,720.00 (1,036,000.00) 122,471,420.00 122,490,320.00
3 Foreign shareholdings 32,710,280.00 - - - (32,710,280.00) (31,775,380.00) 934,900.00
Total of restricted shares 560,766,563.00 93,956,600.00 - 143,741,047.00 (278,645,345.00) (40,947,698.00) 519,818,865.00
II. Unrestricted shares
1 RMB ordinary shares 3,900,643,469.00 - - 1,671,301,125.00 277,609,345.00 1,948,910,470.00 5,849,553,939.00
2 Foreign-funded shares listed
domestically 901,986,142.00 - - 360,794,456.00 - 360,794,456.00 1,262,780,598.00
Total of unrestricted shares 4,802,629,611.00 - - 2,032,095,581.00 277,609,345.00 2,309,704,926.00 7,112,334,537.00
III. Total shares 5,363,396,174.00 93,956,600.00 - 2,175,836,628.00 (1,036,000.00) 2,268,757,228.00 7,632,153,402.00
176
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
39. Capital reserves
2022
Beginning Addition Deduction Ending
Share premium 8,774,823,352.59 - 2,289,646,020.00 6,485,177,332.59
Share-based payments 268,539,867.92 380,209,900.00 - 648,749,767.92
Capital reserve
transferred arising
from the old
standards 44,496,899.00 - - 44,496,899.00
Restricted capital
reserve of equity
investments 17,015,985.20 - - 17,015,985.20
Others (Note 1) 671,317,255.67 666,049,445.39 - 1,337,366,701.06
Total 9,776,193,360.38 1,046,259,345.39 2,289,646,020.00 8,532,806,685.77
Note 1: In 2022, the increase in other capital reserves was mainly due to the absorption of
new investments by Chongqing Changan New Energy Automobile Technology Co., Ltd., an
associate of the Company.
2021
Beginning Addition Deduction Ending
Share premium 10,364,453,940.59 589,873,480.00 2,179,504,068.00 8,774,823,352.59
Share-based payments - 268,539,867.92 - 268,539,867.92
Capital reserve
transferred arising
from the old
standards 44,496,899.00 - - 44,496,899.00
Restricted capital
reserve of equity
investments 17,015,985.20 - - 17,015,985.20
Others (Note 1) 504,815,093.85 166,502,161.82 - 671,317,255.67
Total 10,930,781,918.64 1,024,915,509.74 2,179,504,068.00 9,776,193,360.38
177
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
40. Treasury stock
2022
Beginning Addition Deduction Ending
Treasury stock 655,812,327.60 - 28,751,911.08 627,060,416.52
2021
Beginning Addition Deduction Ending
Treasury stock - 683,830,080.00 28,017,752.40 655,812,327.60
Note: The decrease in treasury shares for the year was due to the Group's distribution of
dividends to incentive recipients during the year.
41. Other comprehensive income
Accumulated other comprehensive income in consolidated balance sheet attributable to parent
company is as follows:
2022
2021.12.31 Movement 2022.12.31
Re-measurement of changes in defined
benefit plans (297,000.00) 112,000.00 (185,000.00 )
Other comprehensive income that cannot be
transferred to profit or loss under the equity
method (3,368,053.89) 602,832.07 (2,765,221.82 )
Other comprehensive income on convertible
gains and losses under the equity method - (75,815.98) (75,815.98 )
Changes in the fair value of other equity
instrument investments 169,861,280.00 (9,740,660.00) 160,120,620.00
Translation difference of foreign currency
financial statements (96,753,756.58) 38,500,789.80 (58,252,966.78 )
Total 69,442,469.53 29,399,145.89 98,841,615.42
2021
2020.12.31 Movement 2021.12.31
Re-measurement of changes in defined
benefit plans 1,222,000.00 (1,519,000.00) (297,000.00)
Other comprehensive income that cannot be
transferred to profit or loss under the equity
method (2,088,068.00) (1,279,985.89) (3,368,053.89)
Changes in the fair value of other equity
instrument investments 161,854,620.00 8,006,660.00 169,861,280.00
Translation difference of foreign currency
financial statements (82,567,831.22) (14,185,925.36) (96,753,756.58)
Total 78,420,720.78 (8,978,251.25) 69,442,469.53
178
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
41. Other comprehensive income (continued)
Current occurrence amount of other comprehensive income in consolidated income statement attributable to parent company:
2022
Amount before tax Deduct: amounts Deduct: amounts Deduct: Income Amount attributable to Amount attributable
transferred to income transferred to tax owners to minority interests
statement which were retained earnings
recognized in other which were
comprehensive income recognized in other
in prior period comprehensive
income in prior
period
Other comprehensive income not to be reclassified to profit or loss in subsequent period
Change in net liability or assets from defined benefit plan (112,000.00 ) - - - (112,000.00 ) -
Other comprehensive income that cannot be transferred to profit or loss under the equity
method (602,832.07 ) - - - (602,832.07 ) -
Fair value change of Investment in other
equity instruments 5,500,000.00 - (5,065,660.00 ) 825,000.00 9,740,660.00 -
Subtotal 4,785,167.93 - (5,065,660.00 ) 825,000.00 9,025,827.93 -
Other comprehensive income will be reclassified to profit or loss in subsequent period -
Other comprehensive income which can convert to gain and loss under the equity method 75,815.98 - - - 75,815.98 -
Foreign currency translation difference (37,775,975.99 ) 722,897.12 - - (38,500,789.80 ) 1,916.69
Subtotal (37,700,160.01 ) 722,897.12 - - (38,424,973.82 ) 1,916.69
Total (32,914,992.08 ) 722,897.12 (5,065,660.00 ) 825,000.00 (29,399,145.89 ) 1,916.69
179
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
41. Other comprehensive income (continued)
2021
Amount before tax Deduct: amounts Deduct: Income tax Amount attributable to owners Amount attributable to
transferred to income minority interests
statement which were
recognized in other
comprehensive income in
prior period
Other comprehensive income not to be reclassified to profit or loss in subsequent period
Change in net liability or assets from defined benefit plan 1,519,000.00 - - 1,519,000.00 -
Other comprehensive income that cannot be transferred to profit or loss under the equity method 1,279,985.89 - - 1,279,985.89 -
Fair value change of Investment in other
equity instruments (9,419,600.00) - (1,412,940.00 ) (8,006,660.00) -
Subtotal (6,620,614.11) - (1,412,940.00 ) (5,207,674.11) -
Other comprehensive income will be reclassified to profit or loss in subsequent period
Foreign currency translation difference 14,166,694.21 - - 14,185,925.36 (19,231.15)
Subtotal 14,166,694.21 - - 14,185,925.36 (19,231.15)
Total 7,546,080.10 - (1,412,940.00 ) 8,978,251.25 (19,231.15)
180
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
42. Special reserves
2022
Beginning Addition Deduction Ending
Safety fund 27,988,260.61 104,696,987.95 108,594,350.51 24,090,898.05
2021
Beginning Addition Deduction Ending
Safety fund 40,847,443.41 85,032,433.05 97,891,615.85 27,988,260.61
The special reserve is the safety production fee accrued by the Group in accordance with the
Administrative Measures for the Withdrawal and Use of Enterprise Safety Production Expenses
(Caizi [2022] No. 136) promulgated by the Ministry of Finance and the Ministry of Emergency
Response on 21 November 2022.
43. Surplus reserves
2022
Beginning Addition Deduction Ending
Statutory surplus 2,982,292,413.67 545,845,221.86 - 3,528,137,635.53
2021
Beginning Addition Deduction Ending
Statutory surplus 2,681,698,087.00 300,594,326.67 - 2,982,292,413.67
The Company appropriated statutory surplus reserves based on profit after tax. When statutory
surplus reserves account for 50% of paid-in capital, no further surplus reserve will be appropriated.
181
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
44. Retained earnings
2022 2021
Retained earnings at beginning of the year 35,900,674,525.13 34,315,048,892.26
Add: Profits attributable to parent company for the
current year 7,798,451,093.72 3,552,463,320.03
Add: Other comprehensive income transferred to retained
earnings 5,065,660.00 -
Less: Appropriation to statutory surplus reserves 545,845,221.86 300,594,326.67
Less: Ordinary share dividend of cash 1,778,856,191.54 1,666,243,360.49
Retained earnings at the end of year 41,379,489,865.45 35,900,674,525.13
According to the decision of the fifty-sixth meeting of the eighth session of the company’s board
of directors, the 2022 profit distribution plan is: based on the total share capital of
9,921,799,422.00 shares on the date of announcement, to distribute cash of RMB2.36 (including
tax) for every 10 shares to all shareholders, totaling the distribution cash RMB 2,341,544,663.59
(tax included). The above plan is yet to be reviewed and approved by the company's general
meeting of shareholders.
45. Operating revenue and cost
2022 2021
Revenue Cost Revenue Cost
Main business 117,565,143,198.95 94,573,428,488.62 102,696,170,307.57 86,348,567,579.13
Other business 3,687,720,886.45 1,836,182,385.14 2,445,706,929.48 1,300,137,955.01
Total 121,252,864,085.40 96,409,610,873.76 105,141,877,237.05 87,648,705,534.14
Operating revenue listed as follows:
2022 2021
Sale of goods 114,066,406,439.25 99,238,618,010.70
Provide labor and other services 7,186,457,646.15 5,903,259,226.35
Total 121,252,864,085.40 105,141,877,237.05
The breakdown of operating revenue generated from contracts with customers is as follows:
182
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
45. Operating revenue and cost (continued)
2022 2021
Revenue recognition time
Recognize revenue at a certain point in
time 120,203,760,630.11 104,253,879,828.51
Recognize revenue within a certain period
of time 1,049,103,455.29 887,997,408.54
Total 121,252,864,085.40 105,141,877,237.05
The income recognized in the current year and included in the book value of contract liabilities at
the beginning of the year is as follows:
2022 2021
Sales of goods 9,274,445,050.60 3,779,593,859.42
Provision of services and others 566,064,463.79 154,187,357.35
Total 9,840,509,514.39 3,933,781,216.77
The estimated time when the total transaction price that has not been fulfilled (or partially fulfilled)
performance obligations allocated to the end of the year is recognized as revenue is as follows:
2022 2021
Within 1 year 5,655,256,792.66 9,840,509,514.39
More than 1 year 882,226,966.14 786,227,868.42
Total 6,537,483,758.80 10,626,737,382.81
46. Tax and surcharges
2022 2021
Consumption tax 3,022,759,216.21 3,002,762,967.36
City maintenance and construction tax 454,863,299.03 373,005,368.21
Educational surcharge 229,702,527.01 188,365,736.49
Others 394,522,780.25 408,298,968.39
Total 4,101,847,822.50 3,972,433,040.45
183
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
47. Operating expenses
2022 2021
Sales service fee 2,132,352,506.82 1,657,420,104.39
Promotion, advertising fee 1,760,645,464.70 1,872,615,623.45
Payroll and welfare 718,415,703.07 570,208,149.45
Transportation and storage fees 296,302,707.75 347,165,629.82
Travelling expenses 71,192,697.52 71,196,292.69
Package expenses 42,180,208.06 35,130,297.34
Consulting fee 31,870,498.85 7,580,858.70
Training fee 27,499,082.32 29,950,509.42
Others 57,811,293.86 54,386,769.33
Total 5,138,270,162.95 4,645,654,234.59
48. General and administrative expenses
2022 2021
Payroll and welfare 2,361,704,245.03 2,239,444,389.16
Share-based payments 380,209,900.00 268,539,867.92
Administrative expenses 342,662,496.31 351,316,057.92
Depreciation and amortization 209,021,291.13 196,426,684.61
Traffic expenses 54,685,498.40 43,244,134.99
Travelling expenses 7,465,840.51 16,681,419.45
Negative points for fuel consumption - 175,899,501.68
Others 176,708,927.38 208,102,452.76
Total 3,532,458,198.76 3,499,654,508.49
49. Research and development expenses
2022 2021
Payroll and welfare 1,744,089,751.78 1,320,641,894.55
Depreciation and amortization 1,221,653,901.00 1,223,956,918.63
Subcontract fee 580,052,391.93 339,472,444.83
Material fee 192,475,951.44 168,390,304.98
Test fee 109,549,382.65 135,140,093.55
Others 467,623,485.96 327,427,522.22
Total 4,315,444,864.76 3,515,029,178.76
184
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
50. Financial income
2022 2021
Interest income 1,014,346,758.69 868,952,893.13
Less: Foreign exchange gain or loss (79,104,476.10) 16,412,404.08
Interest expense 48,683,490.36 45,160,385.56
Others 27,462,001.35 26,456,906.31
Total 1,017,305,743.08 780,923,197.18
51. Other income
2022 2021 Amount recognized in
2021 as non-recurring
profit and loss
Government subsidies related to
daily activities 529,819,888.31 330,174,796.23 529,819,888.31
Government subsidies related to daily activities are as follows:
2022 2021
Production and construction subsidies 385,172,523.26 248,073,126.32
Other government subsidies 144,647,365.05 82,101,669.91
529,819,888.31 330,174,796.23
52. Investment income
2022 2021
Long-term equity investment income/(loss)
accounted for by the equity method (3,060,648,491.82) 924,827,870.13
The investment income of financial asset
held for trading during its holding period 3,289,610.51 3,363,000.00
Dividend income from remaining investments
in other equity instruments 160,088,164.16 78,499,905.15
Gains from the remeasurement of the
remaining equity at fair value
after the loss of control 2,128,313,646.36 -
Interest income from entrusted loan - 6,959,316.00
Total (768,957,070.79) 1,013,650,091.28
185
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
53. Fair value change
2022 2021
Equity instrument investment (25,737,569.00) (3,026,700.00)
Others 29,307,798.29 45,105,504.00
Total 3,570,229.29 42,078,804.00
54. Impairment loss of credit
2022 2021
Bad debt for account receivable 30,511,950.73 27,187,650.40
Bad debt for other receivables 1,730,059.54 (4,136,785.83)
Total 32,242,010.27 23,050,864.57
55. Impairment loss on assets
2022 2021
Impairment of inventory 284,897,475.48 179,625,599.51
Impairment of contract assets 119,820,417.81 41,663,049.06
Impairment of fixed assets 473,400,524.41 631,682,165.90
Impairment of intangible assets 66,201,964.50 165,725,984.32
Impairment of construction in progress 1,533,334.00 558,034.00
Total 945,853,716.20 1,019,254,832.79
56. Gain on disposal of assets
2022 2021 Amount recognized
in 2022 as non-
recurring profit and
loss
Gain on disposal of fixed-assets 74,862,481.00 745,601,530.26 74,862,481.00
186
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
57. Non-operating income
2022 2021 Amount recognized
in 2021 as non-
recurring profit and
loss
Fines, penalties and others 128,910,416.79 130,170,270.12 128,910,416.79
58. Non-operating expenses
2022 2021 Amount recognized in
2022 as non-recurring
profit and loss
Donation 19,172,451.80 16,259,600.00 19,172,451.80
Fines and penalties 1,168,042.33 6,225,500.39 1,168,042.33
Others 34,050,545.66 17,599,796.21 31,050,545.66
Total 54,391,039.79 40,084,896.60 51,391,039.79
59. Government grants
The government grants accounted by the Group with the net method offset the book value of
relevant assets and related costs as follows:
2022 2021
Government grants related to assets
Write down:Fixed assets 188,239,238.37 381,753,772.77
Government grants related to income
Write down:Operating cost 87,580,801.54 169,371,137.15
Operating expenses 4,958,904.12 9,941,452.49
General and administrative
expenses 62,862,742.73 30,312,480.16
Research and development
expenses 179,583,821.24 521,570,527.20
Financial income - 91,000.00
For other government grants, refer to notes V, 51.
187
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
60. Income tax expense
2022 2021
Current income tax expense 689,928,709.52 265,219,161.46
Deferred income tax expense (726,353,981.40) (48,828,515.71)
Total (36,425,271.88) 216,390,645.75
The relationship between income tax expense and profit/(loss) before tax is as follows:
2022 2021
Profit before tax 7,708,257,084.09 3,820,608,835.73
Tax at the applicable tax rate 1,156,238,562.61 573,091,325.37
Impact of different tax rates of subsidiaries 44,322,786.54 65,824,174.22
Adjustments to current income tax of previous period (34,234,083.88 ) (28,003,351.23
Profit or loss attributable to joint ventures and
associates 484,159,369.97 (37,003,883.24)
Non-taxable income (347,606,111.09 ) (13,064,084.90)
Non-deductible tax expense 17,534,017.22 10,747,006.40
Usage previous deductible losses (689,321,898.12 ) (104,980,345.46)
Unrecognized deductible temporary differences and
deductible losses (121,558,547.51 ) 209,941,859.03
Additional deduction arising from research and
development expense (480,741,014.87 ) (460,162,054.44)
Changes in the applicable tax rate for deferred tax
assets (65,218,352.75) -
Tax expense under actual tax rate of the Group (36,425,271.88) 216,390,645.75
188
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
61. Earnings per share (“EPS”)
2022 2021
Basic EPS
Going concern 0.7960 0.3616
Diluted EPS
Going concern 0.7799 0.3579
The basic EPS is calculated by dividing the net profit of the current period attributable to the
ordinary shareholders of the Company by the weighted average number of outstanding ordinary
shares.
The numerator of diluted earnings per share is determined based on the current net profit
attributable to the ordinary shareholders of the company after adjusting the following factors: (1)
the interest of diluted potential ordinary shares that have been recognized as expenses in the
current period; (2) The proceeds or expenses that will be incurred upon conversion of diluted
potential ordinary shares; (3) the income tax impact related to the above adjustment.
The denominator of diluted earnings per share is equal to the sum of the following two items: (1)
the weighted average number of ordinary shares issued by the parent company in the basic
earnings per share; (2) the weighted average number of ordinary shares increased by assuming
the conversion of diluted potential ordinary shares into ordinary shares.
When calculating the weighted average number of ordinary shares increased by the conversion
of diluted potential ordinary shares into issued ordinary shares, the diluted potential ordinary
shares issued in previous periods are assumed to be converted at the beginning of the current
period; Diluted potential ordinary shares issued in the current period are assumed to be converted
on the issuance date. In 2022, the restricted stock incentive plan implemented by the company
diluted earnings per share.
Note: According to the plan of converting capital reserve into share capital approved by the
general meeting of shareholders, in July 2022, the Company converted 3 shares for every 10 shares
with capital reserve. Accordingly, basic earnings per share and diluted earnings per share for each
presentation period are calculated on an adjusted share basis. For details of the conversion of
capital reserve into share capital, see Note 5 and 38.
62. Notes to cash flow statement
(1) Items of cash received relating to other operating activities are as follows:
2022 2021
Interest income 1,014,346,758.69 868,952,893.13
Government grants 711,835,358.28 1,580,573,924.48
Others 715,500,477.90 818,167,877.71
Total 2,441,682,594.87 3,267,694,695.32
189
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
62. Notes to cash flow statement (continued)
(2) Items of cash paid relating to other operating activities are as follows:
2022 2021
Selling expense 4,057,275,191.41 2,851,733,499.00
Administrative expense 594,849,261.20 635,117,562.52
Research and development expenses 951,048,522.32 1,146,120,474.66
Others 762,523,853.82 466,423,185.72
Total 6,365,696,828.75 5,099,394,721.90
(3) Items of cash received relating to other investing activities are as follows:
2022 2021
Entrusted loan received - 300,000,000.00
Total - 300,000,000.00
(4) Items of cash received relating to other investing activities are as follows:
2022 2021
Cash transferred out from the loss of
control of the subsidiary 815,126,333.76 -
(5) Items of cash received relating to other financing activities are as follows:
2022 2021
Withdraw for deposit of bill 1,705,726,148.77 836,125,136.66
(6) Items of cash paid relating to other financing activities are as follows:
2022 2021
Payment for deposit of bill 328,638,801.53 1,967,854,026.77
Repurchase restricted share - 4,703,440.00
Others 43,924,444.07 36,951,674.28
Total 372,563,245.60 2,009,509,141.05
190
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
63. Supplementary information of cash flow statement
(1) Supplementary information of cash flow statement
Cash flows from operating activities calculated by adjusting the net profit:
2022 2021
Net profit 7,744,682,355.97 3,604,218,189.98
Add: Impairment provision for assets 978,095,726.47 1,042,305,697.36
Depreciation of fixed assets 2,837,042,619.12 2,925,265,596.12
Right-of-use assets depreciation 29,882,264.96 26,551,483.92
Depreciation and amortization of investment property 226,711.56 226,711.56
Amortization of intangible assets 1,045,661,359.97 1,074,851,875.74
Amortization of long-term deferred expense 3,841,977.06 4,560,471.76
Increase/(decrease) in deferred income (113,730,666.52 ) 464,611,919.67
Disposal income on fixed assets, intangible
assets and others
long-term assets (74,862,481.00) (745,601,530.26)
Loss/(income) of abandonment of fixed assets - 964,155.31
Income of fair value movement (3,570,229.29) (42,078,804.00)
Financial expense 8,976,404.49 45,450,807.95
Investment income/(loss) 768,957,070.79 (1,013,650,091.28)
Increase in deferred tax assets (747,667,670.19) (149,552,839.47)
Increase/(decrease) in inventory 744,669,432.21 (1,064,983,789.53)
Deferred income tax liabilities Increased/(decreased) 21,313,688.79 100,724,323.76
Increase/(decrease) in operating receivables (10,855,537,441.91) 2,050,313,410.12
Increase in operating payables 2,901,766,217.54 14,395,488,567.44
Share-based payments cost 380,209,900.00 268,539,867.92
Others (3,610,381.50) (16,482,813.23)
Net cash flows from operating activities 5,666,346,858.52 22,971,723,210.84
Movement of cash and cash equivalents:
Ending balance of cash 52,491,435,047.74 49,517,916,834.99
Less: beginning balance of cash 49,517,916,834.99 30,655,968,057.63
Increase in cash and cash equivalents 2,973,518,212.75 18,861,948,777.36
191
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
63. Supplementary information of cash flow statement (continued)
(2) Endorsement of bills:
2022 2021
Endorsed bank acceptance received by
sales and providing service 10,213,830,689.47 5,101,549,250.90
(3) Cash and cash equivalents
2022 2021
Cash
Including: Cash 32,155.77 36,881.35
Bank deposits that can be readily used 52,455,913,791.28 49,517,879,953.64
Other cash and cash equivalents that can be
35,489,100.69
readily used -
Cash equivalents - -
Ending balance of cash and cash equivalents 52,491,435,047.74 49,517,916,834.99
Note: The restricted cash and cash equivalents of the Group are not included in the cash and cash
equivalents.
64. The assets with ownership or right restricted
2022 2021 Notes
Cash and cash equivalents 1,038,748,779.60 2,458,325,314.38 Note V 1
Note receivables 6,340,255,963.00 7,207,264,940.74 Note V 3(2)
Intangible assets 16,823,861.76 17,242,713.12 Note V 21
Fixed assets 29,963,526.50 16,987,667.52 Note V 21
7,425,792,130.86 9,699,820,635.76
192
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
65. Foreign Monetary Item
2022 2021
Original Currency Exchange Translated to RMB Original Currency Exchange Translated to RMB
Rate Rate
Cash
USD 56,180,945.38 6.9646 391,277,812.22 57,387,026.02 6.3757 365,882,461.80
GBP 3,256,961.22 8.3941 27,339,258.18 5,209,847.34 8.6064 44,838,030.15
EUR 10,611,483.98 7.4229 78,767,984.44 9,516,883.92 7.2197 68,709,046.84
JPY 92,191,272.00 0.0524 4,826,950.62 179,758,385.00 0.0554 9,961,310.90
SUR 5,653,760.56 0.0942 532,404.26 1,529,465,059.95 0.0855 130,719,040.37
BRL - 1.3174 - 571,122.09 1.1443 653,558.85
Accounts receivable
USD 40,416,598.13 6.9646 281,485,439.30 36,727,588.87 6.3757 234,164,088.36
Other receivables
USD 31,960.50 6.9646 222,592.10 32,000.00 6.3757 204,022.40
JPY 14,581,471.00 0.0524 763,456.66 13,365,572.00 0.0554 740,653.17
EUR 1,685,080.00 7.4229 12,508,180.33 1,587,999.00 7.2197 11,464,876.38
GBP 466,250.99 8.3941 3,913,757.44 606,906.32 8.6064 5,223,278.55
Accounts Payable
JPY 13,886,600.00 0.0524 727,074.60 - 0.0554 -
EUR 2,821,453.00 7.4229 20,943,363.47 - 7.2197 -
GBP 41,575.10 8.3941 348,985.55 - 8.6064 -
SUR 16,777,602.67 0.0942 1,579,916.07 - 0.0855 -
USD 59,626.10 6.9646 415,271.94 - 6.3757 -
Other Payables
USD 1,175,603.03 6.9646 8,187,604.86 33,900.00 6.3757 216,136.23
GBP 209,186.02 8.3941 1,755,928.37 11,860.01 8.6064 102,071.99
EUR - 7.4229 - 7,790.84 7.2197 56,247.53
193
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
VI Changes in the scope of consolidation
1. Disposition of subsidiaries
Registration Nature of Shareholding Proportion of Reason of dispo
place business Ratio of the Group voting rights of sition
（%） the Group
（%）
Production and The introduction
AVATR Technology (Chongqing) sales of new of investors leads
Co., Ltd. ("AVATR Technology") energy vehicles to dilution of
ChongQing and parts 39.018% 39.018% equity
According to the capital increase agreement signed by the Company with Shanghai NIO
Automobile Co., Ltd., CATL New Energy Technology Co., Ltd., Fujian Mindong Times Rural
Investment and Development Partnership (Limited Partnership), Chongqing Chengan Private
Equity Investment Fund Partnership (Limited Partnership), Chongqing Liangjiang Xizheng Equity
Investment Fund Partnership (Limited Partnership), Southern Industrial Asset Management Co.,
Ltd. and Chongqing Southern Industrial Equity Investment Fund Partnership (Limited Partnership)
(Collectively referred to as “investors”), the Company and the investors increased their capital
to AVATR Technology by RMB 500,000,000.00 and RMB 1,920,000,000.00, respectively, for a
total capital increase of RMB 2,420,000,000.00. After the completion of the capital increase, the
investors held a total of 60.9820% of the equity of AVATR Technology, the equity of AVATR
Technology held by the Company decreased from 95.38% to 39.0180%, and AVATR Technology
was changed from a subsidiary of the Company to an associate. As of the completion date of the
capital increase (March 11, 2022), the Group will no longer include AVATR Technology in the
scope of the merger.
194
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
1. Disposition of subsidiaries (Continued)
The relevant financial information of Avita Technology is set out below:
2022/3/11 2021/12/31
Book Value Book Value
Current Assets 2,542,310,614.22 1,018,554,547.61
Non-Current Asset 454,396,428.20 288,663,663.28
Current Liability 483,860,747.75 1,193,023,674.26
Non-Current Liability 328,229,166.81 309,005,514.38
Shareholder’s Equity 2,184,617,127.86 (194,810,977.75)
Less: Capital Increase 2,420,000,000.00
Less: Minority interests (10,874,688.69 )
The Company’s share of net assets on the date of disposal (224,508,183.45 )
Add:Capital Increase from this company 500,000,000.00
Add:Goodwill 39,078,794.37
Less:Other comprehensive income transferred out 357,457.28
314,213,153.64
Fair Value of Residual Equity 2,442,526,800.00
Disposal income 2,128,313,646.36
The operating results of AVATR Technology from January 1,2022 to the completion date of
capital increase are listed as follows :
2022/1/1-2023/3/11
Operating Revenue -
Operating Costs -
Net loss (40,527,007.50)
195
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
VII Shares in other entities
1. Shares in subsidiaries
The subsidiaries of the Company are as follows：
Company name Main Registered Nature of Registered Total proportion of
operating place business capital shareholders (%)
place (0,000)
direct indirect
I.The subsidiary formed by establish or investment
Chongqing Changan International Automobile Sales Co.,
Ltd. Chongqing Chongqing Sales 20,375.64 100.00 -
Chongqing Changan Connected Car Technology Co., Ltd. Chongqing Chongqing Lease 8,850.00 100.00 -
Chongqing Changan Special Automobile Co., Ltd.(note 2) Chongqing Chongqing Sales 2,000.00 50.00 -
Changan Brazil Holdings Limited (note 3) St. Paul, Brazil St. Paul, Brazil Sales BRL100 99.00 1.00
Chongqing Changan Automobile Supporting Service Co., Ltd. Chongqing Chongqing Sales 3,000.00 99.00 1.00
Chongqing Changan New Energy Automobile Co. Ltd. Chongqing Chongqing R&D 2,900.00 100.00 -
Chongqing Changan Europe Design Academy Co., Ltd. Turin, Italy Turin, Italy R&D EUR1,738 100.00 -
Nottingham, Nottingham,
Changan United Kingdom R&D Center Co., Ltd. United United
Kingdom Kingdom R&D GBP2,639 100.00 -
Beijing Changan R&D Center Co., Ltd. Beijing Beijing R&D 100.00 100.00 -
Yokohama, Yokohama,
Changan Japan Designing Center Co.,Ltd.
Japan Japan R&D JPY1,000 100.00 -
Troy, United Detriot,
Changan United States R&D Center Co., Ltd.
states United states R&D USD154 100.00 -
Moscow,
Changan Automobile Russia Co., Ltd.
Moscow, Russia Russia Sales SUR220,382 100.00 -
Changan Automobile Investment (Shenzhen) Co., Ltd. Shenzhen Shenzhen Sales 23,789.00 100.00 -
Nanjing Changan New Energy Automobile Sales & Service Co.,
Ltd. Nanjing Nanjing Sales 5,000.00 100.00 -
Chongqing Anyi Automobile Technical Service Co., Ltd. Chongqing Chongqing Sales 200.00 100.00 -
Xiamen Changan New Energy Automobile Co. Ltd. Xiamen Xiamen Sales 200.00 100.00 -
Guangzhou Changan New Energy Automobile Co. Ltd. Guangzhou Guangzhou Sales 400.00 100.00 -
Chongqing Chehemei Technology Co., Ltd. Chongqing Chongqing Sales 1,000.00 100.00 -
Chongqing Changan Kaicheng Automobile Technology Co., Ltd. Chongqing Chongqing Sales 100,000.00 83.64 -
Chongqing Changan Automobile Software Technology Co., Ltd. Chongqing Chongqing R&D 9,900.00 100.00 -
Chongqing Xingzhi Technology Co., Ltd. Chongqing Chongqing Sales 4,900.00 100.00 -
Chongqing Changan Technology Co., Ltd. Chongqing Chongqing R&D 9,000.00 100.00 -
II.Subsidiaries acquired through business combinations not under common control
Nanjing Changan Automobile Co., Ltd. (note 1) Nanjing Nanjing Manufacturing 60,181.00 84.73 -
Chongqing Changan Lingyao Automobile Co., Ltd. Chongqing Chongqing Manufacturing 133,764.00 100.00 -
III.The subsidiary formed by business combination under common control
Hefei Changan Automobile Co.,Ltd. Hefei Hefei Manufacturing 227,500.00 100.00 -
Note 1: The proportion of the company's voting rights in Nanjing Changan Automobile Co., Ltd. is 91.53%. The
reason for the inconsistency between the shareholding ratio and the proportion of voting rights is that
some minority shareholders entrust the company to exercise their voting rights.
Note 2: The remaining shareholders of Chongqing Changan Special Purpose Vehicle Co., Ltd. have signed the
"Concerted Acting Persons Agreement" with the company, all agreeing to vote in accordance with the
company's voting intentions, so the company can exercise control over it, so it is included in the scope
of consolidated financial report.
Note 3: In 2022, Changan Brazil Holding Co., Ltd. was liquidated and canceled.
As at 31 December 2022, the Group has no subsidiaries with important minority interests.
196
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
2. Shares in joint ventures and associates
Company name Main Registered Nature of business Registered Total proportion of Accounting
operating place capital shareholders (%) treatment
place (0,000)
direct indirect
I. Joint ventures
Changan Ford Automobile Co., Ltd. Chongqing Chongqing Manufacture and sale of automobiles, and components USD24,100 50.00 - The equity method
Changan Mazda Automobile Co., Ltd. Nanjing Nanjing Manufacture and sale of automobiles, and components USD11,681 47.50 - The equity method
Changan Mazda Engine Co., Ltd. Nanjing Nanjing Manufacture and sale of automobiles, and components USD20,996 50.00 - The equity method
Nanchang Jiangling Investment Co., Ltd. Nanchang Nanchang Management of investment, industry and assets 100,000 50.00 - The equity method
II. Associates
Chongqing Changan Kuayue Automobile Co., Ltd. Chongqing Chongqing Develop, product and sale of automobile and components; import and export goods. 6,533 34.30 - The equity method
Sale of Changan Kuayue’ s automobile and agricultural cars and components. Technical advisory
Chongqing Changan Kuayue Automobile Sales Co.,Ltd.
Chongqing Chongqing services for automobile 300 34.30 - The equity method
Chongqing Changan New Energy Vehicles Technology Co., Ltd. Chongqing Chongqing Production and sales of new energy vehicles and parts 32,811 40.6559 - The equity method
Beijing Fang’an cresent taxi Co., Ltd. Beijing Beijing Regional taxi operation 2,898 22.24 - The equity method
Provide car loan; provide vehicle loans and operating equipment loans to car dealers, including
Changan Automobile Finacing Co., Ltd. the construction loans of exhibition hall,spare parts loans and maintenance equipment loans,
Chongqing Chongqing etc. 476,843 28.66 - The equity method
Hainan Anxinxing Information Technology Co., Ltd. (note 1) Chengmai Chengmai Software and hardware technology development, technical consulting, auto parts sales 3,000 30.00 - The equity method
Nanjing Chelai Travel Technology Co., Ltd. Nanjing Nanjing Car sales, leasing, software technology development, technical services 10,000 10.00 - The equity method
Technology development consulting, technical services, technology transfer in the field of
Coresing Semiconductor Technology Co., Ltd.
Zhuzhou Zhuzhou power semiconductors 50,000 25.00 - The equity method
Chongqing Wutong Chelian Technology Co., Ltd. Chongqing Chongqing Technology development, transfer and consulting services 56,056 - 27.05 The equity method
Anhe (Chongqing) Equity Investment Fund Management Co., Ltd. Chongqing Chongqing Equity investment management 1,260 - 44.44 The equity method
Hangzhou Chelizi Intelligent Technology Co., Ltd. Hangzhou Hangzhou Car travel service 630 - 20.00 The equity method
Master Changan Motors Ltd. (note 2) Pakistan Pakistan Car travel service PKR75,000 - 30.00 The equity method
Jiangling Holding Co., Ltd. Nanchang Nanchang Production and sales of automobiles and auto parts 200,000 25.00 - The equity method
Nanjing Leading Equity Investment Partnership (Limited Equity investment, venture capital; investment in non-publicly traded equity such as non-listed
Partnership) Nanjing Nanjing companies 'equity, listed companies' non-publicly issued equity, and related services. 976,000 16.39 - The equity method
Entrusted with the management of private equity investment funds, engaged in equity
Nanjing Leading Equity Investment Management Co., Ltd.
Nanjing Nanjing investment management and related services 1,000 15.00 - The equity method
Zhongqi Chuangzhi Technology Co., Ltd. Nanjing Nanjing R&D 1,600,000 3.125 - The equity method
Chongqing Changxin Zhiqi Private Equity Investment Fund Partnership
(Limited Partnership) Chongqing Chongqing Private equity 50,200 49.80 - The equity method
AVATR Technology (Chongqing) Co., Ltd.
Chongqing Chongqing Production and sales of new energy automobiles and auto parts 164,466 40.9939 - The equity method
Anhe Chongqing Dingfeng Auto Contractual Private Equity Investment
Fund Chongqing Chongqing Private equity 15,436 40.00 - The equity method
Chongqing Changan Innovation Private Equity Investment Fund
Partnership (Limited Partnership) Chongqing Chongqing Private equity 65,100 46.08 - The equity method
197
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
2. Shares in joint ventures and associates (Continued)
Note 1 : In 2022, Hainan Anxinxing Information Technology Co., Ltd. was liquidated and cancelled.
Note 2 : The former Pakistan Master Automobile Co., Ltd. has been renamed Master Changan
Automobile Limited.
Note 3 : In March 2022, Avita Technology ( Chongqing ) Co., Ltd. completed the capital increase and
equity expansion to introduce new investors. After the completion of the capital increase, it changed
from a subsidiary to an associate.
Changan Ford Automobile Co., Ltd. is the important joint venture to the Group and makes great
influence in the share of profit and loss in joint venture and associates, the Group adopts equity
method to deal with the investment to it.
The table below shows the financial status of Changan Ford Automobile Co., Ltd., and all the
information has been adjusted to eliminate the difference of the accounting policies.
2022 2021
Current assets 15,159,099,717.00 13,985,198,069.00
Including: cash and cash
equivalent 6,818,327,323.00 5,495,088,974.00
Non-current assets 20,859,166,829.00 26,699,638,722.00
Total assets 36,018,266,546.00 40,684,836,791.00
Current liabilities 26,771,621,602.00 28,816,791,001.00
Non-current liabilities 7,716,321,374.00 5,889,087,187.00
Total liabilities 34,487,942,976.00 34,705,878,188.00
Minority interests - -
Equity attributable to owners 1,530,323,570.00 5,978,958,603.00
Net asset owned according to share
proportion 765,161,785.00 2,989,479,301.50
Adjustment (52,702,433.15) (54,603,257.51)
Book value of investment 712,459,351.85 2,934,876,043.99
Operating revenue 51,066,908,933.00 61,765,317,548.00
Financial expenses- interest income 127,367,165.00 117,633,590.00
Financial expenses- interest expense 326,852,062.00 453,750,578.00
Income tax expense 1,343,872,002.00 235,034,761.00
Net profit/ (loss) (2,448,635,033.00) 2,283,913,708.00
198
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
2. Shares in joint ventures and associates (continued)
The table below shows the financial status of the less important joint ventures and associates:
2022 2021
Joint venture
Total book value of the investment 4,067,976,150.23 4,332,804,092.02
Total amount calculated by
shareholding proportion
Net profit 254,944,226.14 545,149,412.88
Other comprehensive income 602,832.07 (1,279,985.89)
Total comprehensive income 255,547,058.21 543,869,426.99
Associates
Total book value of the investment 9,626,226,954.20 5,977,694,724.54
Total amount calculated by
shareholding proportion
Net profit (2,120,964,774.30) (763,664,091.57)
Other comprehensive income (75,815.98) -
Total comprehensive income (2,121,040,590.28) (763,664,091.57)
As at 31 December 2022, since the Group has no obligation to undertake the extra loss of
Chongqing Changan Kuayue Automobile Sales Co., Ltd, Beijing Fang’an cresent taxi Co., Ltd.,
Chongqing Wutong Chelian Technology Co., Ltd and Jiangling Motors Co., Ltd.. When extra loss
occurs, the Group writes down the long-term investment to zero without recognizing the extra
loss.
199
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
VIII Risks associated with financial instruments
1. Classification of financial instruments
As at balance sheet day, the book values of financial instruments are as follows:
Financial assets
2022 Financial assets Financial assets Financial assets measured Total
measured at fair value measured at amortized at fair value and whose
and whose changes are cost changes are recorded in
recorded in the current Other comprehensive
profit and loss (standard income (specified)
required)
Cash - 53,530,183,827.34 - 53,530,183,827.34
Financial assets for
trading 280,315,571.09 - - 280,315,571.09
Notes receivable - 35,849,660,652.96 - 35,849,660,652.96
Accounts receivable - 3,068,414,415.29 - 3,068,414,415.29
Other receivables - 861,671,518.62 - 861,671,518.62
Other current assets - 745,970.48 - 745,970.48
Investment in other
equity instrument - - 489,950,000.00 489,950,000.00
Total 280,315,571.09 93,310,676,384.69 489,950,000.00 94,080,941,955.78
2021 Financial assets Financial assets Financial assets measured Total
measured at fair value measured at amortized at fair value and whose
and whose changes are cost changes are recorded in
recorded in the current Other comprehensive
profit and loss (standard income (specified)
required)
Cash - 51,976,242,149.37 - 51,976,242,149.37
Financial assets for
trading 195,798,300.00 - - 195,798,300.00
Notes receivable - 24,267,633,416.65 - 24,267,633,416.65
Accounts receivable - 1,675,427,534.87 - 1,675,427,534.87
Other receivables - 632,122,942.37 - 632,122,942.37
Other current assets - 3,723,435.08 - 3,723,435.08
Investment in other
equity instrument - - 701,409,600.00 701,409,600.00
Total 195,798,300.00 78,555,149,478.34 701,409,600.00 79,452,357,378.34
200
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
1. Classification of financial instruments (continued)
Financial liabilities
Financial liabilities measured at amortized cost
2022 2021
Short-term loans 29,000,000.00 19,000,000.00
Notes payable 22,072,793,864.83 24,292,268,371.12
Accounts payable 29,449,664,138.75 23,650,604,870.98
Other payables 4,749,541,830.49 4,562,626,344.69
Non-current liabilities due within 1 year 885,723,901.34 533,839,583.57
Long-term loan 36,000,000.00 600,000,000.00
Lease liabilities 60,205,397.98 38,679,735.59
Long-term payables 408,939,511.34 642,513,537.69
Bonds payable 999,528,301.88 -
Total 58,691,396,946.61 54,085,782,443.64
2. Transfer of financial assets
The transferred financial assets that entirely derecognized but continuing involved
As at 31 December 2022, the Group has endorsed acceptance bill with a carrying amount of
RMB5,294,424,281.62 (31 December 2021: RMB2,391,567,055.84) to suppliers to settle the
accounts payable. The maturities of the notes are between 1 to 6 months. According to the
relevant provisions of the "law of negotiable instruments", if the banks refuse the payment, the
holder may exercise the right of recourse against any one, several or all of the debtors of the bill,
including the Group, regardless of the order of the debtors of the bill (the "continuing
involvement"). The Group holds the view that almost all the risks and rewards concerned have
been transferred; therefore, the book value of the accounts payable should be derecognized. The
maximum loss and the undiscounted cash flow of the continuing involvement and repurchase is
equal to its book value, the Group regards the fair value of the continuing involvement is not
significant.
In 2022, the Group didn’t recognize profit or loss on the transferring date. No revenue or expense
should be recognized in accordance with the continuing involvement in the current period. The
indorsement occurred flatly in this period.
201
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
3. Risks of financial instruments
The Group faces risks of various financial instruments in its daily activities, mainly including credit
risk, liquidity risk and market risk (including exchange rate risk, interest rate risk and price risk).
The main financial instruments of the Group include monetary funds, equity investments, loans,
bills receivable, accounts receivable, bills payable, accounts payable, lease liabilities, etc. The risks
associated with these financial instruments and the risk management strategies adopted by the
Group to reduce these risks are described below.
The Group has formulated risk management policies to identify and analyze the risks faced by the
Group, set appropriate risk acceptance levels and design corresponding internal control
procedures to monitor the Group's risk levels. The Group will periodically re-examine these risk
management policies and related internal control systems to adapt to changes in market
conditions or the Group ’s operating activities. The internal audit department also regularly and
irregularly checks whether the implementation of the internal control system complies with the
risk management policy.
Credit risk
The Group only deals with recognized and reputable customers. In accordance with the Group's
policy, a credit review is required for all customers who require credit transactions. In addition, the
Group continuously monitors the balance of accounts receivable to ensure that the Group does
not face significant bad debt risk. For transactions that are not settled with the relevant business
unit's bookkeeping standard currency, the Group does not provide credit transaction conditions
unless specifically approved by the Group's credit control department.
Since the counterparties of monetary funds and bank acceptance receivables are reputable banks
with higher credit ratings, these financial instruments have lower credit risk.
With respect to credit risk arising from the other financial assets of the Group, which comprise
accounts receivable, other receivables, dividend receivables and certain derivatives financial
instruments, the Group’s exposure to credit risk arising from default of the counterparty, with a
maximum exposure equal to the carrying amount of these instruments, listed as book value of
financial assets in consolidated financial statements. In 2022, there was no credit risk arising from
financial guarantee.
Since the Group only trades with approved and reputable customers, there is no need for
collateral. Credit risk is centralized and managed according to customers. As at the balance sheet
date, the Group has a specific concentration of credit risks. 56.83% of the Group's accounts
receivable (December 31, 2021: 48.92%) originated from the top five customers with the balance
of accounts receivable. The Group does not hold any collateral or other credit enhancements for
the balance of accounts receivable.
202
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
3. Risks of financial instruments (continued)
Credit risk (continued)
Judgment criteria for significant increase in credit risk
The Group evaluates on each balance sheet date whether the credit risk of the relevant financial
instruments has increased significantly since the initial recognition. In determining whether credit
risk has increased significantly since the initial recognition, the Group considers that reasonable
and evidence-based information can be obtained without unnecessary additional cost or effort,
including qualitative and quantitative analysis based on the Group's historical data, external credit
risk ratings and forward-looking information. Based on a single financial instrument or a portfolio
of financial instruments with similar credit risk characteristics, the Group compares the default
risk of financial instruments on the balance sheet date with the default risk on the initial
confirmation date to determine the change of default risk of financial instruments during their
expected duration.
When one or more of the following quantitative or qualitative criteria are triggered, the Group
believes that the credit risk of financial instruments has significantly increased:
the quantitative criterion is that the default probability of the remaining duration on the report
date increases by more than a certain percentage compared with the initial confirmation;
qualitative criteria mainly include material adverse changes in the operating or financial
situation of the debtor, early warning customer list, etc.;
Definition of assets that have incurred credit impairment
In order to determine whether credit impairment occurs, the Group adopts a definition standard
consistent with the internal credit risk management objectives for relevant financial instruments,
and considers both quantitative and qualitative indicators. The Group mainly takes the following
factors into consideration when evaluating whether the debtor has credit impairment:
significant financial difficulties of the issuer or debtor;
debtor breaches the contract, such as default or overdue payment of interest or principal;
the creditor gives the debtor concessions that the debtor would not have made under any other
circumstances for economic or contractual reasons related to the debtor's financial difficulties;
the debtor is likely to go bankrupt or undergo other financial restructuring;
the financial difficulties of the issuer or debtor result in the disappearance of an active market
for the financial asset;
purchase or source a financial asset at a substantial discount that reflects the fact that a credit
loss has occurred.
The credit impairment of financial assets may be caused by the joint action of multiple events, but
not by events that can be identified separately.
203
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
3. Risks of financial instruments (continued)
Liquidity risk
The Group adopts cycle liquidity planning instrument to manage capital shortage risks. The
instrument takes into consideration the maturity date of financial instruments plus estimated
cash flow from the Group’s operations.
The Group’s objective is to maintain a balance between continuity of funding and flexibility and
sufficient cash to support operating capital through financing functions by the use of bank loans,
debentures, etc.
The table below summarizes the maturity profile of the Group’s financial liabilities based on the
non-discounted cash flow of the contracts:
2022
Within 1 year 1 to 2 years 2 to 3 years Over 3 years Total
Short-term loans 29,621,345.00 - - - 29,621,345.00
Notes payable 22,072,793,864.83 - - - 22,072,793,864.83
Accounts payable 29,449,664,138.75 - - - 29,449,664,138.75
Other payable 4,749,541,830.49 - - - 4,749,541,830.49
Non-current
liabilities due
within 1 year 907,011,961.68 - - - 907,011,961.68
Long-term loan - 360,000.00 36,090,000.00 - 36,450,000.00
Lease liabilities - 28,446,270.64 13,141,937.62 23,324,609.18 64,912,817.44
Long-term payables - 195,656,936.33 192,710,708.33 36,552,833.33 424,920,477.99
Bonds payable 30,000,000.00 30,000,000.00 30,000,000.00 1,060,000,000.00 1,150,000,000.00
Total 57,238,633,140.75 254,463,206.97 271,942,645.95 1,119,877,442.51 58,884,916,436.18
2021
Within 1 year 1 to 2 years 2 to 3 years Over 3 years Total
Short-term loans 19,795,625.00 - - - 19,795,625.00
Notes payable 24,292,268,371.12 - - - 24,292,268,371.12
Accounts payable 23,650,604,870.98 - - - 23,650,604,870.98
Other payable 4,308,876,344.69 - - - 4,308,876,344.69
Non-current
liabilities due
within 1 year 586,179,931.75 - - - 586,179,931.75
Long-term loan - 609,000,000.00 - - 609,000,000.00
Lease liabilities - 28,962,720.73 12,810,301.90 763,259.70 42,536,282.33
Long-term payables - 212,672,500.00 212,672,500.00 248,724,166.67 674,069,166.67
Total 52,857,725,143.54 850,635,220.73 225,482,801.90 249,487,426.37 54,183,330,592.54
204
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
3. Risks of financial instruments (continued)
Market risk
Interest rate risk
The Group’s revenue and operating cash flows are seldomly influenced by the interest fluctuation.
As at 31 December 2022, the Group’s loans are bearing fixed interest rate and the Group is not
hedging the risk currently.
Foreign currency risk
The Group’s exposures to fluctuation in foreign currency exchange rate mainly arise from
operating activities where transactions are settled in currencies other than the units' functional
currency and net investment to offshore subsidiary.
In 2022, the Group only has transactional currency exposures of 7.33% (2021: 5.41%) of its total
revenue that is valued in currencies other than the units' functional currency. Since most of the
Group’s businesses are operated in China mainland, the estimated influence of fluctuation of
foreign currency is insignificant; therefore, the Group hasn’t carried out large amount of hedging
to reduce the risk.
Equity instruments investment price risk
The price risk of equity instrument investment refers to the risk that the fair value of equity
securities is reduced due to changes in the level of stock indexes and changes in the value of
individual securities. On December 31, 2022, the Group's listed equity instrument investment
(Note V. 2) was listed on the Shanghai Stock Exchange and measured on the basis of market
quotes on the balance sheet date. The following table illustrates the sensitivity of the Group’s net
profit and loss to every 5% change in the fair value of equity instrument investments (based on
the book value at the balance sheet date) under the assumption that all other variables remain
constant.
2022
Carrying amount of Change in fair Increase/ Increase/
equity instrument value (decrease) in net (decrease) in equity
investments profit
Shanghai- Equity investment
included in financial assets at
fair value through profit or loss 126,112,500.00 5% 5,359,781.25 5,359,781.25
Shanghai- Equity investment
included in financial assets at
fair value through profit or loss 126,112,500.00 (5% ) (5,359,781.25 ) (5,359,781.25)
Shenzhen- Equity investment
included in financial assets at
fair value through profit or loss 125,052,628.80 5% 5,314,736.72 5,314,736.72
Shenzhen- Equity investment
included in financial assets at
fair value through profit or loss 125,052,628.80 (5% ) (5,314,736.72 ) (5,314,736.72)
205
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
3. Risks of financial instruments (continued)
Market risk(continued)
Equity instruments investment price risk (continued)
2021
Carrying amount of Change in fair Increase/ Increase/
equity instrument value (decrease) in net (decrease) in equity
investments profit
Shanghai- Equity investment
included in financial assets at
fair value through profit or loss 177,902,700.00 5% 7,560,864.75 7,560,864.75
Shanghai- Equity investment
included in financial assets at
fair value through profit or loss 177,902,700.00 (5%) (7,560,864.75) (7,560,864.75)
4. Capital management
The main goal of the Group’s capital management is to ensure that the ability of continuous
operation and maintain healthy capital ratios in order to support business development, and to
maximize shareholder value.
The Group manages the capital structure and adjusts it with the change of economy trend and
the risk feature of the assets. To maintain or adjust the capital structure, the Group can rectify
dividend distribution, return capital to shareholders or issue new shares. The Group is not subject
to external mandatory capital requirements constraints. The goal, principle and procedure of
capital management stay the same in 2022 and 2021.
The Group’s leverage ratio on the balance sheet date is as follows:
31 December 2022 31 December 2021
Leverage ratio 56.90% 58.74%
206
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
IX Disclosure of fair value
1. Assets and liabilities measured at fair value
2022
Input measured at fair value
Quoted price in Important and Important but Total
active market observable input unobservable input
(The first level) (The second (The third level)
level）
Financial asset held for trading
Equity instrument investment 126,112,500.00 125,052,628.80 - 251,165,128.80
Others - 29,150,442.29 - 29,150,442.29
Investment in other equity
instruments - - 489,950,000.00 489,950,000.00
Total 126,112,500.00 154,203,071.09 489,950,000.00 770,265,571.09
2021
Input measured at fair value
Quoted price in Important and Important but Total
active market observable input unobservable input
(The first level) (The second (The third level)
level）
Financial asset held for trading
Equity instrument investment 177,902,700.00 - - 177,902,700.00
Others - - 17,895,600.00 17,895,600.00
Investment in other equity
instruments - - 701,409,600.00 701,409,600.00
Total 177,902,700.00 - 719,305,200.00 897,207,900.00
2. Fair value estimation
Management has assessed and concluded accounts, including cash, notes receivable, accounts
receivable, other receivables, other payables, notes payable and accounts payable and so on,
whose fair value equals to book value because of its short term to overdue.
Financial assets and financial liabilities are measured at the amount that an asset could be
exchanged for or by which a liability could be incurred or settled by knowledge, willing parties in
a current arm’s-length transaction, other than liquidation or unwilling sales. Methods and
hypothesis followed are used for determining fair value.
207
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
2. Fair value estimation (continued)
Long-term loans and long-term payables use discounted cash flow method to determine its fair
value, with discount rate in accordance with market return of other financial instruments based
on similar terms, credit risks and remaining terms. As at 31 December 2022, the default risk of
long-term loans and short-term loans were considered immaterial.
The equity instruments listed by the Group are ordinary shares with unrestricted sale conditions,
and their fair value is determined at the quoted market price. The Group's unlisted equity
instruments use a series of valuation models to estimate the fair value, and the assumptions used
are not supported by observable market prices or interest rates. The Group mainly refers to the
evaluation reports of independent qualified professional appraisers. The Group believes that the
fair value and its changes estimated by valuation techniques are reasonable and are also the most
appropriate value on the balance sheet date.
The Group entered into a derivative financial instrument contract with the bank. The Group's
derivative financial instruments are foreign exchange forward contracts, which are measured
using valuation techniques similar to the present value method. The observable input value of the
market covered by the model is the forward exchange rate. The book value of a foreign exchange
forward contract is the same as the fair value.
3. Unobservable input
The following is an overview of the important unobservable input value of the third level fair value
measurement:
Fair value Valuation techniques Non-observable input value
Investment in other equity instrument
Comparable transaction value
2022 489,950,000.00 Market approach multiplier / Post-tax discount rate
Comparable transaction value
2021 701,409,600.00 Market approach multiplier / Post-tax discount rate
Financial asset held for trading-Others
Expected yield contained in the
2021 17,895,600.00 Expected yield as per the contract contract
208
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
X Related party relationships and transactions
1. The holding company
Holding company Place of Registered capital Nature of the business Proportion of Proportion of
registration shares in the voting rights in
Company the company
Automobile and its
engines, spare parts
China Changan Automobile Group manufacturing,
Co., Ltd. Beijing 6,092,273,400.00 marketing 20.80% 20.80%
The ultimate holding company is China South Industries Group Corporation.
2. Subsidiaries
Refer to Note VII 1 for details of the Group’s subsidiaries.
3. Joint ventures and associates
Refer to Note VII 2 for details of the Group’s joint ventures and associates.
209
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
4. Other related parties
Related parties Relationship
Anhui Wanyou Automobile Sales Service Co., Ltd. Controlled by the same ultimate holding company
Chengdu Huachuan Electric Equipment Co., Ltd. Controlled by the same ultimate holding company
Chengdu Wanyou Auto Trade Service Co., Ltd. Controlled by the same ultimate holding company
Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. Controlled by the same ultimate holding company
Guizhou Wanyou Auto Sales and Service Co., Ltd. Controlled by the same ultimate holding company
Harbin Dongan Auto Engine Co., Ltd. Controlled by the same ultimate holding company
Harbin Dongan Automotive Engine Manufacturing Co., Ltd. Controlled by the same ultimate holding company
Jiangsu Wanyou Automobile Sales Service Co., Ltd. Controlled by the same ultimate holding company
Sichuan Jian'an Industrial Co.,Ltd. Controlled by the same ultimate holding company
Sichuan Ningjiang Shanchuan Machinery Co, Ltd. Controlled by the same ultimate holding company
Ya'an Wanyou Auto Sales and Service Co., Ltd. Controlled by the same ultimate holding company
Yunnan Wanyou Auto Sales and Service Co., Ltd. Controlled by the same ultimate holding company
Yunnan Wanxing Automobile Sales and Service Co., Ltd Controlled by the same ultimate holding company
China Changan Automobile Group Tianjin Sales Co., Ltd. Controlled by the same ultimate holding company
Chongqing Tsingshan Industrial Co., Ltd. Controlled by the same ultimate holding company
Chongqing Wanyou Ducheng Auto Sales Service Co., Ltd. Controlled by the same ultimate holding company
Chongqing Wanyou Economic Development Co., Ltd. Controlled by the same ultimate holding company
Chengdu Jialing Huaxi Optical & Precision Machinery Co., Ltd. Controlled by the same ultimate holding company
Chengdu Lingchuan Vehicle Oil Tank Co., Ltd. Controlled by the same ultimate holding company
Chengdu Wanyou Filter Co., Ltd. Controlled by the same ultimate holding company
Hubei Huazhong Marelli Automobile Lighting Co., Ltd. Controlled by the same ultimate holding company
Hubei Xiaogan Huazhong Automobile Light Co., Ltd. Controlled by the same ultimate holding company
Yunnan Xiyi Industries Co., Ltd. Controlled by the same ultimate holding company
Chongqing Dajiang Jiexin Forging Co., Ltd. Controlled by the same ultimate holding company
Chongqing Jianshe Automobile Air-conditioner Co., Ltd. Controlled by the same ultimate holding company
210
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
4. Other related parties (continued)
Related parties Relationship
Chongqing Construction Tongda Industrial Co., Ltd. Controlled by the same ultimate holding company
Chongqing Shangfang Automobile Fittings Co., Ltd. Controlled by the same ultimate holding company
Chongqing Yihong Defense Technology Co., Ltd Controlled by the same ultimate holding company
Chongqing Changan Industries Group Co. Ltd. Controlled by the same ultimate holding company
Chongqing Changan Property Management Co., Ltd. Controlled by the same ultimate holding company
Chongqing Changan Intelligent Industrial Technology Service Co., Ltd. Controlled by the same ultimate holding company
Longchang Shanchuan Precision Welded Tube Co., Ltd. Controlled by the same ultimate holding company
Chongqing Changrong Machinery Co., Ltd. Controlled by the same ultimate holding company
Controlled by the same ultimate holding company
Southwest Ordnance Industry Chongqing Environmental Protection Research Institute Co., Ltd
Chongqing Qingshan Transmission Sales Co., Ltd. Controlled by the same ultimate holding company
Beijing Beiji Mechanical and Electrical Industry Co., Ltd. Controlled by the same ultimate holding company
Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. Controlled by the same ultimate holding company
Panzhihua Wanyou Auto Sales & Service Co., Ltd. Controlled by the same ultimate holding company
Luzhou Wanyou Automobile Service Co., Ltd. Controlled by the same ultimate holding company
Chengdu Wanyou Trading Co., Ltd. Controlled by the same ultimate holding company
Chongqing Wanyou Xingjian Auto Sales & Service Co., Ltd. Controlled by the same ultimate holding company
Chengdu Wanyou Auto Sales and Service co.,Ltd. Controlled by the same ultimate holding company
Chongqing Pingshan Tk Carburetor Co., Ltd. Controlled by the same ultimate holding company
Chongqing Wanyou Zhicheng Automobile Sales and Service Co., Ltd Controlled by the same ultimate holding company
Chongqing Jianshe Industry (Group) Co., Ltd. Controlled by the same ultimate holding company
Chongqing Changan Construction Co., Ltd. Controlled by the same ultimate holding company
Bazhong Wanyou Auto Sales & Service Co., Ltd. Controlled by the same ultimate holding company
China South Industries Group Information Center Co., Ltd. Controlled by the same ultimate holding company
Chongqing Changfeng Jiquan Machinery Co., Ltd. Controlled by the same ultimate holding company
211
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
4. Other related parties (continued)
Related parties Relationship
Wanyou Automobile Investment Co., Ltd. Controlled by the same ultimate holding company
China South Industries Group Financial Leasing Co., Ltd. Controlled by the same ultimate holding company
Chongqing Anfu Automobile Co., Ltd. Controlled by the same ultimate holding company
China South Industries Group Commercial Factoring Co., Ltd. Controlled by the same ultimate holding company
China Changan Automobile Group Hefei Investment Co., Ltd. Controlled by the same ultimate holding company
China South Industry Group Finance Co., Ltd. Controlled by the same ultimate holding company
Ya'an Changan Affordable Housing Construction Co., Ltd. Controlled by the same ultimate holding company
Chongqing Dajiang Xinda Vehicles Shares Co., Ltd. Controlled by the same ultimate holding company
Chongqing Jialing Yimin Special Equipment Co., Ltd. Controlled by the same ultimate holding company
Chongqing Jianshe Mechanical & Electrical Equipment Co., Ltd. Controlled by the same ultimate holding company
Chongqing Xiyi Automobile Connecting Rod Co., Ltd. Controlled by the same ultimate holding company
Chengdu Lingchuan Special Industry Co., Ltd. Controlled by the same ultimate holding company
Chongqing Automobile Air-conditioner Co., Ltd. Controlled by the same ultimate holding company
Guangxi Wanyou Auto Sales and Service Co., Ltd. Controlled by the same ultimate holding company
Dali Wanfu Automobile Sales and Service Co., Ltd Controlled by the same ultimate holding company
SIAMC Management Co., Ltd. Controlled by the same ultimate holding company
Chengdu Ningjiang Zhaohe Automobile Components Co., Ltd. Participated by the Ultimate holding company
Southern Fojiya Auto Parts Co., Ltd. Participated by the Ultimate holding company
South Tianhe Chassis System Co., Ltd. Participated by the Ultimate holding company
South Inter Air-conditioner Co.,Ltd. Participated by the Ultimate holding company
Chongqing Changan Minsheng Logistics Co. Ltd. Participated by the Ultimate holding company
Chongqing Nexteer Steering System Co.,Ltd. Participated by the Ultimate holding company
Lear Changan (Chongqing) Automotive System Co., Ltd. Participated by the Ultimate holding company
United Automotive Electronis Systems (Chongqing) Co., Ltd. Participated by the Ultimate holding company
212
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
4. Other related parties (continued)
Related parties Relationship
Gkn Huayu Driveline Systems(chongqing) Co., Ltd. Participated by the Ultimate holding company
Tenneco Lingchuan (Chongqing) Exhaust System Company Ltd. Participated by the Ultimate holding company
Chongqing Dajiang Tongyang Plastics Co., Ltd. Participated by the Ultimate holding company
Chongqing Dajiang Guoli Precision Machinery Manufacturing Co., Ltd. Participated by the Ultimate holding company
Dajiang Yapp Automotive Systems Co., Ltd. Participated by the Ultimate holding company
Chongqing Hanon Jianshe Automotive Thermal Systems Co., Ltd. Participated by the Ultimate holding company
Chongqing Lingchuan Auto Parts Manufacturing Technology Co., Ltd. Participated by the Ultimate holding company
Chongqing Dajiang Yuqiang Plastic Co., Ltd. Participated by the Ultimate holding company
Beijing Zhongbing Insurance Brokerage Co., Ltd. Participated by the Ultimate holding company
Hunan Tyen Machinery Co., Ltd. Participated by the Ultimate holding company
Changan Reis (Chongqing) Robotic Intelligent Equipment Co., Ltd. Participated by the Ultimate holding company
Chongqing Chang'an Minsheng Boyu Logistics Co., Ltd. Participated by the Ultimate holding company
Nanjing CMSC Logistics Co., Ltd. Participated by the Ultimate holding company
Hafei Motor Co., Ltd. Participated by the Ultimate holding company
Chengdu Zhongzi Guangming Catalytic Technology Co., Ltd Participated by the Ultimate holding company
Nanjing LingHang Technology Co., Ltd. Companies in which the company participates
Jiangling Motors Co., Ltd Companies in which the company participates
Ald Fortune Auto Leasing & Renting (Shanghai) Co., Ltd. Companies in which the company participates
Beijing Wutong Chelian Technology Co., Ltd. Companies in which the company participates
213
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
5. Major transactions between the Group and its related parties
(1) Transactions of goods and services
Purchases of goods and services from related parties
Related parties Nature of the transaction 2022 2021
Chongqing Tsingshan Industrial Co., Ltd. Purchase of spare parts and accept service 5,929,105,477.16 4,785,993,498.79
Chongqing Changan New Energy Vehicles Technology Co., Ltd. Purchase of spare parts and accept service 4,693,770,740.03 1,157,433,115.64
Chongqing Changan Minsheng Logistics Co. Ltd. Purchase of spare parts and accept service 3,463,898,449.23 2,367,887,858.81
Harbin Dongan Automotive Engine Manufacturing Co., Ltd. Purchase of spare parts and accept service 1,059,383,069.06 1,470,076,695.64
Hubei Huazhong Marelli Automobile Lighting Co., Ltd. Purchase of spare parts 1,000,676,703.53 1,103,986,382.45
South Tianhe Chassis System Co., Ltd. Purchase of spare parts and accept service 850,217,286.61 855,650,728.58
Chongqing Nexteer Steering System Co.,Ltd. Purchase of spare parts and accept service 831,405,194.98 772,763,837.57
United Automotive Electronis Systems (Chongqing) Co., Ltd. Purchase of spare parts and accept service 822,043,773.13 514,909,546.70
Sichuan Jian'an Industrial Co.,Ltd. Purchase of spare parts and accept service 797,061,806.68 833,678,868.10
Harbin Dongan Auto Engine Co., Ltd. Purchase of spare parts and accept service 510,666,022.83 737,712,816.89
Southern Fojiya Auto Parts Co., Ltd. Purchase of spare parts and accept service 474,902,181.20 522,797,081.51
Chengdu Huachuan Electric Equipment Co., Ltd. Purchase of spare parts and accept service 433,491,184.42 419,242,322.52
South Inter Air-conditioner Co.,Ltd. Purchase of spare parts 417,113,793.15 429,818,507.26
Lear Changan (Chongqing) Automotive System Co., Ltd. Purchase of spare parts 398,441,173.61 626,890,790.17
Chongqing Dajiang Tongyang Plastics Co., Ltd. Purchase of spare parts and accept service 390,094,811.70 157,108,911.96
Subtotall of this page 22,072,271,667.32 16,755,950,962.59
214
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
5. Major transactions between the Group and its related parties (continued)
(1) Transactions of goods and services (continued)
Purchases of goods and services from related parties (continued)
Related parties Nature of the transaction 2022 2021
Dajiang Yapp Automotive Systems Co., Ltd. Purchase of spare parts 367,878,744.52 339,075,086.11
Chongqing Dajiang Guoli Precision Machinery Manufacturing Co., Ltd. Purchase of spare parts 353,842,435.47 276,472,478.63
Gkn Huayu Driveline Systems(chongqing) Co., Ltd. Purchase of spare parts 349,384,726.01 329,353,847.13
Sichuan Ningjiang Shanchuan Machinery Co, Ltd. Purchase of spare parts 236,368,439.32 218,229,152.25
Chongqing Changrong Machinery Co., Ltd. Purchase of spare parts 188,542,642.58 208,657,447.92
Chongqing Wutong Chelian Technology Co., Ltd. Accept service 162,264,149.40 -
Chongqing Hanon Jianshe Automotive Thermal Systems Co., Ltd. Purchase of spare parts 151,002,052.30 192,644,714.03
Purchase of spare parts and accept
Jiangling Holding Co., Ltd. 138,548,818.43 -
service
Chongqing Lingchuan Auto Parts Manufacturing Technology Co., Ltd. Purchase of spare parts 136,745,996.51 116,001,208.39
Purchase of spare parts and accept
Chengdu Wanyou Filter Co., Ltd. 131,651,417.70 130,985,512.13
service
Yunnan Xiyi Industries Co., Ltd. Purchase of spare parts 107,396,789.80 104,765,620.44
Purchase of spare parts and accept
Beijing Wutong Chelian Technology Co., Ltd. 104,475,718.53 72,575,303.13
service
Hubei Xiaogan Huazhong Automobile Light Co., Ltd. Purchase of spare parts 100,374,013.64 108,537,666.51
Chongqing Shangfang Automobile Fittings Co., Ltd. Purchase of spare parts 84,981,815.82 94,792,739.82
Purchase of spare parts and accept
Tenneco Lingchuan (Chongqing) Exhaust System Company Ltd. 67,353,980.86 56,309,042.36
service
Purchase of spare parts and accept
Chongqing Wanyou Economic Development Co., Ltd. 66,255,194.45 603,419,863.12
service
Chongqing Jianshe Automobile Air-conditioner Co., Ltd. Purchase of spare parts 60,528,242.94 159,688,393.32
Subtotal of this page 2,807,595,178.28 3,011,508,075.29
215
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
5. Major transactions between the Group and its related parties (continued)
(1) Transactions of goods and services (continued)
Purchases of goods and services from related parties (continued)
Related parties Nature of the transaction 2022 2021
Chengdu Lingchuan Vehicle Oil Tank Co., Ltd. Purchase of spare parts 33,992,791.02 38,128,016.68
Chongqing Qingshan Transmission Sales Co., Ltd. Purchase of spare parts 32,926,122.52 23,973,681.31
Chongqing Yihong Defense Technology Co., Ltd Purchase of spare parts 36,665,517.10 14,709,194.40
Chengdu Zhongzi Guangming Catalytic Technology Co., Ltd Purchase of spare parts 29,580,684.02 -
Longchang Shanchuan Precision Welded Tube Co., Ltd. Purchase of spare parts 27,909,131.44 28,967,949.24
Chongqing Construction Tongda Industrial Co., Ltd. Purchase of spare parts 25,814,511.10 37,055,895.63
Yunnan Wanyou Auto Sales and Service Co., Ltd. Accept service 25,188,983.36 22,766,515.25
Guizhou Wanyou Auto Sales and Service Co., Ltd. Accept service 13,511,730.91 14,259,779.04
Chongqing Changan Industries Group Co. Ltd. Accept service 12,292,136.25 17,861,163.78
Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. Accept service 12,062,273.95 10,395,446.00
Chengdu Ningjiang Zhaohe Automobile Components Co., Ltd. Purchase of spare parts 10,745,694.02 60,296,426.94
Chengdu Wanyou Auto Trade Service Co., Ltd. Accept service 9,348,028.62 8,507,457.55
Jiangsu Wanyou Automobile Sales Service Co., Ltd. Accept service 7,102,848.68 1,986,071.15
Anhui Wanyou Automobile Sales Service Co., Ltd. Accept service 5,293,300.68 2,404,928.50
Chongqing Changan Property Management Co., Ltd. Accept service 4,134,339.52 4,176,911.94
Chongqing Wanyou Ducheng Auto Sales Service Co., Ltd. Accept service 4,101,094.51 3,338,044.36
Chongqing Dajiang Jiexin Forging Co., Ltd. Purchase of spare parts 3,078,583.33 5,121,697.47
Chongqing Changan Intelligent Industrial Technology Service Co., Ltd. Accept service 2,946,005.80 -
Chengdu Jialing Huaxi Optical & Precision Machinery Co., Ltd. Purchase of spare parts 2,786,069.10 10,043,682.64
Subtotal of this page 299,479,845.93 303,992,861.88
216
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
5. Major transactions between the Group and its related parties (continued)
(1) Transactions of goods and services (continued)
Purchases of goods and services from related parties (continued)
Related parties Nature of the transaction 2022 2021
Purchase of spare parts and accept
Hunan Tyen Machinery Co., Ltd. 2,092,525.14 70,511,666.83
service
Southwest Ordnance Industry Chongqing Environmental Protection
Accept service 2,049,165.81 -
Research Institute Co., Ltd
Ya'an Wanyou Auto Sales and Service Co., Ltd. Accept service 1,946,181.65 1,736,024.66
Chongqing Wanyou Xingjian Auto Sales & Service Co., Ltd. Accept service 1,423,274.77 1,919,504.03
China Changan Automobile Group Tianjin Sales Co., Ltd. Accept service 1,371,694.94 1,808,381.51
Chongqing Jianshe Industry (Group) Co., Ltd. Purchase of spare parts 1,197,461.49 1,732,643.94
Chengdu Wanyou Auto Sales and Service co.,Ltd. Accept service 678,453.32 187,650.50
Luzhou Wanyou Automobile Service Co., Ltd. Accept service 509,671.25 669,657.17
Purchase of spare parts and accept
Beijing Zhongbing Insurance Brokerage Co., Ltd. 226,434.19 340,815.00
service
Chongqing Dajiang Yuqiang Plastic Co., Ltd. Purchase of spare parts 459,367.27 93,797,140.57
Panzhihua Wanyou Auto Sales & Service Co., Ltd. Accept service 451,213.56 514,551.95
Purchase of spare parts and accept
Nanjing LingHang Technology Co., Ltd. 348,114.07 378,892.59
service
Zhongqi Chuangzhi Technology Co., Ltd. Accept service 320,000.00 -
Chongqing Pingshan Tk Carburetor Co., Ltd. Purchase of spare parts 170,426.18 256,266.00
Chongqing Wanyou Zhicheng Automobile Sales and Service Co., Ltd Purchase of spare parts 127,433.63 -
Yunnan Wanxing Automobile Sales and Service Co., Ltd Accept service 76,719.72 981,350.81
Chengdu Wanyou Trading Co., Ltd. Accept service 55,017.09 35,404.55
Beijing Beiji Mechanical and Electrical Industry Co., Ltd. Purchase of spare parts 38,462.43 3,933.64
Subtotal of this page 13,541,616.51 174,873,883.75
217
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
5. Major transactions between the Group and its related parties (continued)
(1) Transactions of goods and services (continued)
Purchases of goods and services from related parties (continued)
Related parties Nature of the transaction 2022 2021
Changan Ford Automobile Co., Ltd. Purchase of spare parts 35,475.70 329,133.98
China South Industries Financial Leasing Co., Ltd. Accept service 22,339.62 -
Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. Purchase of spare parts 12,900.95 -
Purchase of spare parts and accept
Changan Reis (Chongqing) Robotic Intelligent Equipment Co., Ltd. - 44,892,792.39
service
Hangzhou Chelizi Intelligent Technology Co., Ltd. Purchase of spare parts - 2,148,762.81
Chongqing Changan Construction Co., Ltd. Accept service - 564,840.03
China Changan Automobile Group Co., Ltd. Accept service - 120,000.00
Bazhong Wanyou Auto Sales & Service Co., Ltd. Accept service - 64,894.12
Chongqing Chang'an Minsheng Boyu Logistics Co., Ltd. Accept service - 47,627.52
China South Industries Group Information Center Co., Ltd. Accept service - 27,169.81
Chongqing Changfeng Jiquan Machinery Co., Ltd. Purchase of spare parts - 7,254.24
Nanjing CMSC Logistics Co., Ltd. Accept service - 2,752.29
Subtotal of this page 70,716.27 48,205,227.19
Total 25,192,959,024.31 20,294,531,010.70
The price of the Group’s purchase from related parties is based on contracts agreed by both parties.
218
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
5. Major transactions between the Group and its related parties (continued)
(1) Transactions of goods and services (continued)
Sales of goods and services to related parties
Related parties Nature of the transaction 2022 2021
Chongqing Changan New Energy Vehicles Technology Co., Ltd. Sales of vehicle parts and services 2,609,084,124.78 2,087,692,782.62
Chongqing Wanyou Economic Development Co., Ltd. Sales of vehicle parts and services 1,684,301,990.87 1,720,993,540.69
Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. Selling parts and services 1,476,308,931.64 436,822,730.06
Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. Sales of vehicle parts and services 1,284,359,479.27 1,257,537,353.64
Yunnan Wanyou Auto Sales and Service Co., Ltd. Sales of vehicle parts and services 1,142,270,993.20 1,046,987,731.08
Pakistan Master Automobile Co., Ltd. Sales of vehicles and parts 924,463,919.88 825,606,129.36
Guizhou Wanyou Auto Sales and Service Co., Ltd. Sales of vehicle parts and services 884,848,504.37 929,945,622.49
Avatr Technology (Chongqing) Co., Ltd. Sales of vehicle parts and services 714,145,977.09 -
Wanyou Automobile Investment Co., Ltd. Selling vehicles and services 598,010,950.82 535,094,553.91
Chengdu Wanyou Auto Trade Service Co., Ltd. Sales of vehicle parts and services 549,991,470.85 513,214,521.29
Changan Automobile Finacing Co., Ltd. Provide labor services 490,826,007.07 399,039,103.55
Jiangsu Wanyou Automobile Sales Service Co., Ltd. Sales of vehicle parts and services 470,683,276.14 200,741,980.03
Anhui Wanyou Automobile Sales Service Co., Ltd. Sales of vehicle parts and services 260,352,341.97 199,372,254.88
China Changan Automobile Group Tianjin Sales Co., Ltd. Sales of vehicle parts and services 247,493,153.78 227,233,799.93
Changan Ford Automobile Co., Ltd. Selling parts and services 179,318,692.12 10,926,158.29
Chongqing Tsingshan Industrial Co., Ltd. Selling parts and services 158,523,290.48 82,201,791.51
Chongqing Changan Kuayue Automobile Co., Ltd. Selling parts and services 77,335,639.06 71,993,694.98
Changan Mazda Automobile Co., Ltd. Selling goods and services 64,329,600.00 -
China South Industries Group Financial Leasing Co., Ltd. Provide labor services 48,064,780.21 7,132,075.48
Chongqing Dajiang Guoli Precision Machinery Manufacturing Co., Ltd. Selling parts 37,118,575.61 10,746.64
Harbin Dongan Automotive Engine Manufacturing Co., Ltd. Selling parts 28,271,075.57 62,194,464.21
Subtotal of this page 13,930,102,774.78 10,614,741,034.64
219
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
5. Major transactions between the Group and its related parties (continued)
(1) Transactions of goods and services (continued)
Sales of goods and services to related parties (continued)
Related parties Nature of the transaction 2022 2021
Chongqing Anfu Automobile Co., Ltd. Sales of vehicles and parts 27,875,221.32 14,756,637.21
Yunnan Wanxing Automobile Sales and Service Co., Ltd Sales of vehicles and parts 18,948,851.57 93,848,306.63
Tenneco Lingchuan (Chongqing) Exhaust System Company Ltd. Selling parts 4,244,013.23 -
Ya'an Wanyou Auto Sales and Service Co., Ltd. Sales of vehicle parts and services 3,074,292.53 1,555,063.32
Chongqing Wanyou Ducheng Auto Sales Service Co., Ltd. Sales of vehicle parts and services 2,714,289.11 2,356,554.96
China Changan Automobile Group Hefei Investment Co., Ltd. Selling vehicles 2,169,330.09 40,568,514.45
Chongqing Changan Minsheng Logistics Co. Ltd. Selling parts and services 2,148,551.67 3,311,934.58
Nanjing LingHang Technology Co., Ltd. Provide labor services 1,871,703.43 -
Chongqing Lingchuan Auto Parts Manufacturing Technology Co., Ltd. Selling parts 1,866,175.08 12,045,145.12
China South Industry Group Finance Co., Ltd. Provide labor services 1,852,079.79 365,474.29
Chongqing Wanyou Xingjian Auto Sales & Service Co., Ltd. Selling parts and services 1,575,307.62 1,356,654.72
Chengdu Lingchuan Vehicle Oil Tank Co., Ltd. Selling parts 1,480,056.13 2,246,031.95
Yunnan Xiyi Industries Co., Ltd. Selling parts 1,365,240.00 131,376.00
Chengdu Wanyou Auto Sales and Service co.,Ltd. Sales of vehicle parts and services 934,370.23 219,077.77
Luzhou Wanyou Automobile Service Co., Ltd. Selling parts and services 820,143.92 1,026,650.15
Chongqing Dajiang Tongyang Plastics Co., Ltd. Selling parts 750,186.19 1,536,134.53
Panzhihua Wanyou Auto Sales & Service Co., Ltd. Selling parts and services 712,145.73 479,039.76
Jiangling Holding Co., Ltd. Selling parts and services 397,278.07 -
Subtotal of this page 74,799,235.71 175,802,595.44
220
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
5. Major transactions between the Group and its related parties (continued)
(1) Transactions of goods and services (continued)
Sales of goods and services to related parties (continued)
Related parties Nature of the transaction 2022 2021
Chongqing Changan Kuayue Automobile Sales Co., Ltd. Selling parts 281,930.93 279,576.78
Chongqing Jianshe Industry (Group) Co., Ltd. Selling parts 253,525.27 -
Lear Changan (Chongqing) Automotive System Co., Ltd. Selling parts and services 147,535.15 14,716.98
Chongqing Dajiang Yuqiang Plastic Co., Ltd. Selling parts 131,400.00 -
China South Industries Group Commercial Factoring Co., Ltd. Provide labor services 106,858.13 113,315.44
China Changan Automobile Group Co., Ltd. Provide labor services 84,905.66 -
Hainan Anxinxing Information Technology Co., Ltd. Provide labor services 28,301.89 180,405.38
Chengdu Wanyou Trading Co., Ltd. Selling parts and services 25,171.68 -
Sichuan Ningjiang Shanchuan Machinery Co, Ltd. Provide labor services 13,329.40 349,056.60
Chongqing Jianshe Automobile Air-conditioner Co., Ltd. Selling parts 11,946.90 -
Chongqing Wutong Chelian Technology Co., Ltd. Provide labor services 11,320.75 -
South Inter Air-conditioner Co.,Ltd. Provide labor services 2,943.40 -
Harbin Dongan Auto Engine Co., Ltd. Provide labor services 1,173.00 54,540.16
Chongqing Chang'an Minsheng Boyu Logistics Co., Ltd. Selling vehicles - 103,326,580.61
China South Industries Group Information Center Co., Ltd. Provide labor services - 690,566.04
Changan Mazda Engine Co., Ltd. Selling parts - 138,073.58
Chongqing Nexteer Steering System Co.,Ltd. Selling parts - 104,655.66
Chengdu Huachuan Electric Equipment Co., Ltd. Selling parts and services - 103,773.58
United Automotive Electronis Systems (Chongqing) Co., Ltd. Selling parts - 56,120.75
Southern Fojiya Auto Parts Co., Ltd. Provide labor services - 1,490.57
Subtotal of this page 1,100,342.16 105,412,872.13
Total 14,006,002,352.65 10,895,956,502.21
The price of the Group’s sales to related parties is based on contracts agreed by all parties.
221
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
5. Major transactions between the Group and its related parties (continued)
(2) Other major related-party transactions
The price of the Group’s other major related-party transactions is based on contracts agreed by
all parties.
Expenses of integrated service charges
Related parties 2022 2021
Chongqing Changan Industries Group Co. Ltd. 72,388,391.31 87,217,070.27
Purchase of project materials
Related parties 2022 2021
Changan Reis (Chongqing) Robotic Intelligent
Equipment Co., Ltd. 14,202,332.81 607,600.00
Chongqing Changan Minsheng Logistics Co. Ltd. 13,862.82 -
Sichuan Jian'an Industrial Co.,Ltd. 44.14 -
Chongqing Changan Construction Co., Ltd. - 26,233,377.55
Total 14,216,239.77 26,840,977.55
Staff expenses for technical supporting
Related parties 2022 2021
Chongqing Changan New Energy Vehicles Technology
Co., Ltd. 87,739,303.52 17,151,364.69
Changan Ford Automobile Co., Ltd. 26,618,313.54 33,193,267.38
Changan Mazda Automobile Co., Ltd. 20,766,828.90 22,076,355.37
Changan Mazda Engine Co., Ltd. 13,623,103.29 14,413,961.51
Chongqing Changan Kuayue Automobile Co., Ltd. 2,724,505.28 3,113,694.01
Jiangling Holding Co., Ltd. 1,465,987.40 3,663,424.01
Jiangling Motors Co., Ltd 1,158,831.59 -
Hainan Anxinxing Information Technology Co., Ltd. 634,354.87 -
Chongqing Changan Minsheng Logistics Co. Ltd. - 654,146.65
Chongqing Shangfang Automobile Fittings Co., Ltd. - 53,900.00
Total 154,731,228.39 94,320,113.62
222
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
5. Major transactions between the Group and its related parties (continued)
(2) Other major related-party transactions (continued)
Deferred interest income from funds
Related parties 2022 2021
Yunnan Wanyou Auto Sales and Service Co., Ltd. 297,408.89 228,308.44
Chengdu Wanyou Auto Trade Service Co., Ltd. 109,002.02 127,015.84
Chongqing Wanyou Economic Development Co., Ltd. 66,581.59 43,143.18
Anhui Wanyou Automobile Sales Service Co., Ltd. 42,256.63 2,723.01
Jiangsu Wanyou Automobile Sales Service Co., Ltd. 32,918.60 8,148.67
China Changan Automobile Group Tianjin Sales Co., Ltd. 21,429.12 5,878.76
Wanyou Automobile Investment Co., Ltd. 19,690.27 46,188.50
Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. 9,988.50 50,616.82
Chongqing Changan Minsheng Logistics Co. Ltd. 4,584.91 -
Guizhou Wanyou Auto Sales and Service Co., Ltd. 3,686.97 75,045.17
Yunnan Wanxing Automobile Sales and Service Co., Ltd - 28,390.27
Total 607,547.50 615,458.66
(3) Lease between related parties
As lessor
Related parties Type of 2022 2021
leased assets
Nanjing LingHang Technology Co., Ltd. Vehicle 89,060,494.43 125,060,344.01
Chongqing Changan New Energy Vehicles Building and
Technology Co., Ltd. equipment 129,219,487.60 20,690,813.54
Ald Fortune Auto Leasing & Renting (Shanghai) Co.,
Ltd. Vehicle 28,781,100.74 70,778,756.80
Chongqing Changan Industries Group Co. Ltd. Building 6,667,632.38 6,650,384.59
Chongqing Changan Minsheng Logistics Co. Ltd. Building 703,167.61 675,912.67
Chongqing Wanyou Economic Development Co., Ltd. Building 642,201.84 645,346.00
South Inter Air-conditioner Co.,Ltd. Vehicle 67,752.21 67,752.21
Nanjing CMSC Logistics Co., Ltd. Vehicle - 172,460.17
Zhongqi Chuangzhi Technology Co., Ltd. Vehicle - 116,037.74
Ya'an Changan Affordable Housing Construction Co.,
Ltd. Vehicle - 36,106.19
Chongqing Dajiang Jiexin Forging Co., Ltd. Vehicle - 38,123.89
Total 255,141,836.81 224,932,037.81
223
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
5. Major transactions between the Group and its related parties (continued)
(3) Lease between related parties (continued)
As lessee
Related parties Type of leased assets 2022 2021
Chongqing Changan Minsheng Logistics
Co. Ltd Warehouse 21,845,685.75 15,940,585.06
Note: The lease with Chongqing Changan Minsheng Logistics Co. Ltd. is a short-term lease, and
the right-of-use asset is not recognized.
(4) Deposits and loan interest from related parties
Interest income
Related parties Type of leased assets 2022 2021
China South Industry Group Finance Co., Deposit interest
Ltd. income 323,932,186.89 192,425,074.21
Deposit Interest
Changan Automobile Finacing Co., Ltd. income 220,175,000.00 249,750,000.00
Entrusted loan
Jiangling Holding Co., Ltd. interest income - 6,959,316.00
Total 544,107,186.89 449,134,390.21
Interest expense
Related parties Type of transaction 2022 2021
China South Industry Group Finance
Co., Ltd. Loan interest expense 2,546,530.48 10,158,888.89
(5) Other related party transactions
Related parties 2022 2021
Compensation of key management personal 29,192,727.00 30,376,486.00
Stock-based compensation of key management personal 13,446,227.88 10,771,483.50
Total 42,638,954.88 41,147,969.50
224
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
6. Amounts due from/to related parties
(1) Notes receivable
Related parties 2022 2021
Chongqing Changan New Energy Vehicles Technology
Co., Ltd. 3,623,354,650.53 1,707,657,373.40
Wanyou Automobile Investment Co., Ltd. 3,047,690,000.00 2,175,240,000.00
Avatr Technology (Chongqing) Co., Ltd. 121,822,864.29 -
Yunnan Wanyou Auto Sales and Service Co., Ltd. 43,000,000.00 47,000,000.00
Chongqing Tsingshan Industrial Co., Ltd. 40,463,588.91 7,995,373.20
Chengdu Wanyou Auto Trade Service Co., Ltd. 22,500,000.00 24,800,000.00
Chongqing Wanyou Economic Development Co., Ltd. 20,250,000.00 25,500,000.00
Guizhou Wanyou Auto Sales and Service Co., Ltd. 7,300,000.00 5,500,000.00
Harbin Dongan Automotive Engine Manufacturing Co.,
Ltd. 3,029,467.77 9,132,765.60
Chongqing Changan Kuayue Automobile Co., Ltd. - 13,841,516.24
Chongqing Changan Minsheng Logistics Co. Ltd. - 1,895,178.03
Chongqing Changan Kuayue Automobile Sales Co., Ltd. - 1,450,000.00
Total 6,929,410,571.50 4,020,012,206.47
225
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
6. Amounts due from/to related parties (continued)
(2) Accounts receivable
Related parties 2022 2021
Chongqing Changan New Energy Vehicles Technology Co.,
Ltd. 1,011,838,777.69 664,390,126.60
Avatr Technology (Chongqing) Co., Ltd. 320,592,883.29 -
Changan Ford Automobile Co., Ltd. 195,582,372.52 27,571,894.33
Jiangling Holding Co., Ltd. 121,166,512.75 43,263,418.79
Changan Mazda Automobile Co., Ltd. 72,378,357.38 10,443,141.10
Changan Automobile Finacing Co., Ltd. 68,199,053.80 27,000,000.00
Chongqing Changan Kuayue Automobile Co., Ltd. 39,592,219.39 31,600,512.92
Beijing Fang Anxin Yue Rental Auto Co.,Ltd. 38,600,000.00 38,600,000.00
Pakistan Master Automobile Co., Ltd. 37,958,837.25 70,424,616.57
Chongqing Tsingshan Industrial Co., Ltd. 29,579,405.37 15,547,355.69
China South Industries Group Financial Leasing Co., Ltd. 9,734,968.89 -
Ald Fortune Auto Leasing & Renting (Shanghai) Co., Ltd. 5,181,800.00 -
Nanjing LingHang Technology Co., Ltd. 4,209,516.65 16,622,454.93
Chongqing Changan Industries Group Co. Ltd. 3,626,628.57 192,632.17
Changan Mazda Engine Co., Ltd. 3,494,661.85 -
Jiangling Motors Co., Ltd 1,176,831.13 -
Chongqing Changan Minsheng Logistics Co. Ltd. 688,099.86 32,259,206.05
Harbin Dongan Automotive Engine Manufacturing Co.,
147,532.81 21,179,345.59
Ltd.
Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. 127,548.00 -
Guizhou Wanyou Auto Sales and Service Co., Ltd. 63,900.00 -
Chongqing Changan Kuayue Automobile Sales Co., Ltd. 31,861.79 128,646.00
China South Industries Group Commercial Factoring Co.,
1,841.34 1,841.34
Ltd.
Chongqing Changan Intelligent Industrial Technology
0.15 -
Service Co., Ltd.
Tenneco Lingchuan (Chongqing) Exhaust System Company
0.03 0.03
Ltd.
Total 1,963,973,610.51 999,225,192.11
226
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
6. Amounts due from/to related parties (continued)
(3) Prepayments
Related parties 2022 2021
Beijing Wutong Chelian Technology Co., Ltd. 12,438,660.30 21,982,556.75
Chongqing Changan New Energy Vehicles Technology
Co., Ltd. 10,397,480.50 5,660,917.50
Chongqing Tsingshan Industrial Co., Ltd. - 180,000,000.00
Chongqing Nexteer Steering System Co.,Ltd. - 50,000,000.00
Total 22,836,140.80 257,643,474.25
(4) Other receivables
Related parties 2022 2021
Chongqing Changan Industries Group Co. Ltd. 1,157,446.69 1,157,446.69
China South Industry Group Finance Co., Ltd. 859,049.92 -
Chongqing Changan Minsheng Logistics Co. Ltd. 436.57 596,131.62
Chongqing Changxin Zhiqi Private Equity Investment
Fund Partnership (Limited Partnership) - 26,670,000.00
Chongqing Changan New Energy Vehicles
Technology Co., Ltd. - 25,935,000.00
Hafei Motor Co., Ltd. - 1,500,000.00
Nanjing LingHang Technology Co., Ltd. - 1,027,352.32
Total 2,016,933.18 56,885,930.63
227
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
6. Amounts due from/to related parties (continued)
(5) Notes payable
Related parties 2022 2021
Chongqing Tsingshan Industrial Co., Ltd. 1,078,658,254.05 997,630,000.00
Chongqing Nexteer Steering System Co.,Ltd. 327,738,252.79 345,500,000.00
Chongqing Changan Minsheng Logistics Co. Ltd. 300,858,223.58 293,970,489.20
Chongqing Changan New Energy Vehicles Technology Co., Ltd. 293,766,946.00 100,200,000.00
Harbin Dongan Automotive Engine Manufacturing Co., Ltd. 197,280,000.00 449,050,000.00
Dajiang Yapp Automotive Systems Co., Ltd. 175,450,000.00 172,180,000.00
Chongqing Dajiang Tongyang Plastics Co., Ltd. 145,840,000.00 72,710,000.00
Hubei Huazhong Marelli Automobile Lighting Co., Ltd. 139,690,000.00 115,860,000.00
South Inter Air-conditioner Co.,Ltd. 130,650,474.98 76,300,000.00
South Tianhe Chassis System Co., Ltd. 118,961,825.13 33,896,189.65
Gkn Huayu Driveline Systems(chongqing) Co., Ltd. 98,250,000.00 76,420,000.00
Chongqing Hanon Jianshe Automotive Thermal Systems Co., Ltd. 82,600,000.00 83,160,000.00
Chongqing Lingchuan Auto Parts Manufacturing Technology Co., Ltd. 80,530,000.00 50,210,000.00
Sichuan Ningjiang Shanchuan Machinery Co, Ltd. 60,759,442.02 71,204,039.75
Jiangling Holding Co., Ltd. 59,248,188.59 -
Harbin Dongan Auto Engine Co., Ltd. 59,090,000.00 144,790,000.00
Southern Fojiya Auto Parts Co., Ltd. 36,370,000.00 27,690,000.00
Chengdu Wanyou Filter Co., Ltd. 34,373,849.84 34,230,000.00
Chongqing Shangfang Automobile Fittings Co., Ltd. 33,869,017.86 40,747,850.00
Tenneco Lingchuan (Chongqing) Exhaust System Company Ltd. 32,530,000.00 9,110,000.00
Chongqing Jianshe Automobile Air-conditioner Co., Ltd. 20,050,000.00 57,320,000.00
Chongqing Yihong Defense Technology Co., Ltd 19,560,000.00 7,990,000.00
Hubei Xiaogan Huazhong Automobile Light Co., Ltd. 15,650,000.00 15,230,000.00
Chongqing Construction Tongda Industrial Co., Ltd. 10,640,000.00 12,789,350.84
Chongqing Dajiang Guoli Precision Machinery Manufacturing Co., Ltd. 7,765,999.95 -
Longchang Shanchuan Precision Welded Tube Co., Ltd. 6,140,145.72 700,000.00
Chongqing Changrong Machinery Co., Ltd. 1,314,548.20 -
Chongqing Dajiang Jiexin Forging Co., Ltd. 1,090,000.00 2,230,000.00
Chengdu Jialing Huaxi Optical & Precision Machinery Co., Ltd. 950,000.00 4,420,000.00
Hunan Tyen Machinery Co., Ltd. 630,000.00 45,800,000.00
Chengdu Zhongzi Guangming Catalytic Technology Co., Ltd 560,000.00 -
Chengdu Ningjiang Zhaohe Automobile Components Co., Ltd. - 29,530,000.00
Changan Reis (Chongqing) Robotic Intelligent Equipment Co., Ltd. - 16,298,837.60
Chongqing Changan Construction Co., Ltd. - 2,417,746.00
Total 3,570,865,168.71 3,389,584,503.04
228
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
6. Amounts due from/to related parties (continued)
(6) Accounts payable
Related parties 2022 2021
Jiangling Holding Co., Ltd. 1,116,408,615.48 37,578,608.85
Chongqing Changan New Energy Vehicles Technology
Co., Ltd. 822,638,571.39 45,785,722.56
Chongqing Nexteer Steering System Co.,Ltd. 278,876,988.05 303,819,542.94
Hubei Huazhong Marelli Automobile Lighting Co., Ltd. 236,096,916.60 276,099,169.78
Chongqing Tsingshan Industrial Co., Ltd. 153,454,423.03 289,136,235.05
Dajiang Yapp Automotive Systems Co., Ltd. 152,806,662.74 130,308,165.60
South Tianhe Chassis System Co., Ltd. 142,620,012.97 218,042,109.95
Lear Changan (Chongqing) Automotive System Co.,
Ltd. 109,342,564.03 59,478,481.96
Harbin Dongan Auto Engine Co., Ltd. 103,616,123.17 155,019,007.24
Harbin Dongan Automotive Engine Manufacturing Co.,
Ltd. 99,563,867.81 79,164,395.58
South Inter Air-conditioner Co.,Ltd. 87,495,633.58 156,165,656.54
Chongqing Dajiang Tongyang Plastics Co., Ltd. 86,558,622.08 122,247,111.17
Southern Fojiya Auto Parts Co., Ltd. 79,576,674.87 111,176,628.27
United Automotive Electronis Systems (Chongqing)
Co., Ltd. 72,864,235.98 43,729,758.05
Gkn Huayu Driveline Systems(chongqing) Co., Ltd. 49,148,122.03 67,131,433.77
Chengdu Huachuan Electric Equipment Co., Ltd. 41,958,250.19 42,505,846.09
Sichuan Jian'an Industrial Co.,Ltd. 40,868,455.07 114,453,923.31
Chengdu Zhongzi Guangming Catalytic Technology
Co., Ltd 32,759,347.97 83,175.03
Chongqing Lingchuan Auto Parts Manufacturing
Technology Co., Ltd. 25,869,763.88 23,129,987.81
Hubei Xiaogan Huazhong Automobile Light Co., Ltd. 19,359,970.66 22,108,475.58
Chongqing Changrong Machinery Co., Ltd. 18,773,538.36 48,459,589.80
Chengdu Wanyou Filter Co., Ltd. 14,115,700.51 14,085,492.47
Chongqing Shangfang Automobile Fittings Co., Ltd. 13,575,599.30 26,347,971.01
Chongqing Changan Minsheng Logistics Co. Ltd. 12,696,301.88 26,921,418.99
Chongqing Construction Tongda Industrial Co., Ltd. 11,268,342.31 16,219,154.70
Sichuan Ningjiang Shanchuan Machinery Co, Ltd. 11,108,409.24 24,528,900.28
Chongqing Jianshe Automobile Air-conditioner Co., Ltd. 10,360,465.69 22,265,092.41
Chongqing Qingshan Transmission Sales Co., Ltd. 10,199,151.11 10,260,951.97
Changan Reis (Chongqing) Robotic Intelligent
Equipment Co., Ltd. 8,537,490.14 129,036.87
Chengdu Lingchuan Vehicle Oil Tank Co., Ltd. 8,056,699.53 16,297,923.33
Chongqing Dajiang Guoli Precision Machinery
Manufacturing Co., Ltd. 6,417,935.77 14,889,297.76
Tenneco Lingchuan (Chongqing) Exhaust System
Company Ltd. 5,380,229.34 8,304,368.73
Subtotal of this page 3,882,373,684.76 2,525,872,633.45
229
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
6. Amounts due from/to related parties (continued)
(6) Accounts payable (continued)
Related parties 2022 2021
Chongqing Yihong Defense Technology Co., Ltd 4,247,025.85 1,278,419.64
Beijing Wutong Chelian Technology Co., Ltd. 4,301,349.18 5,798,358.99
Yunnan Xiyi Industries Co., Ltd. 4,210,156.64 1,815,316.79
Chongqing Hanon Jianshe Automotive Thermal Systems Co.,
Ltd. 2,388,277.76 22,651,086.10
Changan Ford Automobile Co., Ltd. 1,878,695.33 1,943,909.28
Longchang Shanchuan Precision Welded Tube Co., Ltd. 1,759,775.48 2,359,553.08
Chengdu Ningjiang Zhaohe Automobile Components Co.,
Ltd. 1,358,424.58 8,406,255.55
Southwest Ordnance Industry Chongqing Environmental
Protection Research Institute Co., Ltd 963,651.26 -
Chongqing Wanyou Economic Development Co., Ltd. 757,763.87 3,256,626.28
Chengdu Jialing Huaxi Optical & Precision Machinery Co.,
Ltd. 559,576.76 1,137,544.54
Chongqing Dajiang Yuqiang Plastic Co., Ltd. 496,894.20 4,627,147.80
Chongqing Dajiang Jiexin Forging Co., Ltd. 312,203.77 103,404.61
Chongqing Changan Industries Group Co. Ltd. 236,355.17 601,702.05
Chengdu Lingchuan Special Industry Co., Ltd. 220,175.48 325,142.83
Chongqing Automobile Air-conditioner Co., Ltd. 205,041.51 205,041.51
Hunan Tyen Machinery Co., Ltd. 143,359.78 2,083,314.54
Chongqing Jialing Yimin Special Equipment Co., Ltd. 104,496.50 104,496.50
Chongqing Dajiang Xinda Vehicles Shares Co., Ltd. 56,251.08 56,251.08
Chongqing Jianshe Mechanical & Electrical Equipment Co.,
Ltd. 47,265.91 47,265.91
Chongqing Xiyi Automobile Connecting Rod Co., Ltd. 38,422.14 38,422.14
Chongqing Wanyou Xingjian Auto Sales & Service Co., Ltd. 20,842.80 20,842.80
Hangzhou Chelizi Intelligent Technology Co., Ltd. 12,350.00 12,350.00
Beijing Beiji Mechanical and Electrical Industry Co., Ltd. 3,165.30 29,268.25
Chongqing Changan Kuayue Automobile Co., Ltd. 1,382.56 5,271,250.56
Chongqing Changfeng Jiquan Machinery Co., Ltd. 1,340.91 1,850,577.35
Hafei Motor Co., Ltd. 344.04 949,114.25
Chengdu Wanyou Auto Trade Service Co., Ltd. 250.00 -
China Changan Automobile Group Co., Ltd. - 14,756.94
Chongqing Jianshe Industry (Group) Co., Ltd. - 857,195.55
Chongqing Pingshan Tk Carburetor Co., Ltd. - 70,083.18
Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. - 1,544.70
Subtotal of this page 24,324,837.86 65,916,242.80
Total 3,906,698,522.62 2,591,788,876.25
230
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
6. Amounts due from/to related parties (continued)
(7) Contract liabilities
Related parties 2022 2021
Chongqing Wanyou Economic Development Co., Ltd. 124,667,991.83 269,281,235.61
Guizhou Wanyou Auto Sales and Service Co., Ltd. 96,702,773.24 133,567,022.54
Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. 74,694,999.66 22,362,432.39
Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. 64,279,954.50 118,480,778.11
Jiangsu Wanyou Automobile Sales Service Co., Ltd. 58,420,002.39 41,137,071.23
Yunnan Wanyou Auto Sales and Service Co., Ltd. 49,769,852.59 101,043,742.82
Wanyou Automobile Investment Co., Ltd. 47,689,212.74 68,334,467.34
China Changan Automobile Group Tianjin Sales Co., Ltd. 33,057,138.53 37,209,408.83
Chengdu Wanyou Auto Trade Service Co., Ltd. 18,393,074.44 51,006,262.19
Anhui Wanyou Automobile Sales Service Co., Ltd. 12,540,522.24 36,775,197.75
Jiangling Holding Co., Ltd. 6,854,200.00 6,854,200.00
Avatr Technology (Chongqing) Co., Ltd. 5,832,549.46 -
Pakistan Master Automobile Co., Ltd. 5,213,676.57 -
Changan Automobile Finacing Co., Ltd. 685,200.00 -
Changan Ford Automobile Co., Ltd. 493,954.43 -
Hafei Motor Co., Ltd. 471,942.49 670,500.00
Chongqing Changan Minsheng Logistics Co. Ltd. 416,441.17 -
Chongqing Wanyou Ducheng Auto Sales Service Co., Ltd. 373,179.91 21,566.76
Chongqing Wanyou Xingjian Auto Sales & Service Co., Ltd. 155,719.35 68,346.03
Chongqing Anfu Automobile Co., Ltd. 149,000.00 73,268.00
Chengdu Wanyou Auto Sales and Service co.,Ltd. 101,869.64 30,005.78
Luzhou Wanyou Automobile Service Co., Ltd. 91,342.25 50,528.84
Ya'an Wanyou Auto Sales and Service Co., Ltd. 75,083.25 23,611.57
Bazhong Wanyou Auto Sales & Service Co., Ltd. 50,426.48 50,426.48
Chengdu Wanyou Trading Co., Ltd. 18,900.00 -
Panzhihua Wanyou Auto Sales & Service Co., Ltd. 16,305.41 17,855.01
Chongqing Shangfang Automobile Fittings Co., Ltd. 12,979.98 12,979.98
China Changan Automobile Group Hefei Investment Co., Ltd. 10,273.00 10,273.00
Yunnan Wanxing Automobile Sales and Service Co., Ltd 6,816.00 15,033,974.67
Dali Wanfu Automobile Sales and Service Co., Ltd 3,486.06 -
Guangxi Wanyou Auto Sales and Service Co., Ltd. 302.40 302.40
Changan Mazda Engine Co., Ltd. - 3,060,368.00
Chongqing Chang'an Minsheng Boyu Logistics Co., Ltd. - 2,646,426.62
Ya'an Changan Affordable Housing Construction Co., Ltd. - 10,000.00
Chongqing Hanon Jianshe Automotive Thermal Systems Co., Ltd. - 147,080.20
Total 601,249,170.01 907,979,332.15
231
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
6. Amounts due from/to related parties (continued)
(8) Other payables
Related parties 2022 2021
Chongqing Changan Minsheng Logistics Co. Ltd. 392,075,910.69 123,243,509.52
Chongqing Changan New Energy Vehicles Technology Co., Ltd. 113,039,584.99 28,204,667.10
Chongqing Changan Construction Co., Ltd. 26,391,448.08 26,391,448.08
Yunnan Wanyou Auto Sales and Service Co., Ltd. 10,068,122.20 3,756,167.26
Chongqing Tsingshan Industrial Co., Ltd. 7,868,918.85 565,792.16
Chengdu Wanyou Xiangyu Auto Sales and Service Co., Ltd. 7,732,620.00 5,204,000.00
Chongqing Wanyou Economic Development Co., Ltd. 7,660,147.80 245,798.56
Jiangsu Wanyou Automobile Sales Service Co., Ltd. 4,970,000.00 504,400.00
Chongqing Changan Intelligent Industrial Technology Service
4,404,413.09 1,507,567.09
Co., Ltd.
Guizhou Wanyou Auto Sales and Service Co., Ltd. 4,007,517.20 828,912.03
China Changan Automobile Group Tianjin Sales Co., Ltd. 3,729,000.00 -
Chengdu Wanyou Auto Trade Service Co., Ltd. 3,607,415.80 1,296,988.78
United Automotive Electronis Systems (Chongqing) Co., Ltd. 3,439,700.00 263,423.01
Chongqing Changan Industries Group Co. Ltd. 2,960,859.38 2,010,787.85
Sichuan Jian'an Industrial Co.,Ltd. 2,101,400.49 709,839.37
Ya'an Wanyou Auto Sales and Service Co., Ltd. 2,063,900.00 733,079.80
Chongqing Changan Property Management Co., Ltd. 1,935,184.57 1,587,169.00
South Inter Air-conditioner Co.,Ltd. 1,567,432.39 425,490.20
Anhui Wanyou Automobile Sales Service Co., Ltd. 1,475,600.00 -
Chongqing Dajiang Tongyang Plastics Co., Ltd. 1,423,800.00 1,067,850.00
Chengdu Wanyou Filter Co., Ltd. 1,266,573.71 143,553.10
Hunan Tyen Machinery Co., Ltd. 1,235,044.80 951,324.40
Chongqing Shangfang Automobile Fittings Co., Ltd. 1,113,793.54 3,390.00
Chongqing Wanyou Ducheng Auto Sales Service Co., Ltd. 1,096,014.24 42,215.90
Changan Reis (Chongqing) Robotic Intelligent Equipment Co.,
917,118.52 18,027,403.31
Ltd.
Chengdu Wanyou Auto Sales and Service co.,Ltd. 790,000.00 350,000.00
Chongqing Wanyou Xingjian Auto Sales & Service Co., Ltd. 400,000.00 -
South Tianhe Chassis System Co., Ltd. 293,868.55 606,242.21
Chongqing Lingchuan Auto Parts Manufacturing Technology
219,898.32 332,961.91
Co., Ltd.
Harbin Dongan Automotive Engine Manufacturing Co., Ltd. 203,155.92 1,258,466.14
Chongqing Anfu Automobile Co., Ltd. 200,000.00 200,000.00
Chengdu Huachuan Electric Equipment Co., Ltd. 173,206.40 356,673.20
Chongqing Dajiang Xinda Vehicles Shares Co., Ltd. 150,000.00 50,000.00
Subtotal 610,581,649.53 220,869,119.98
232
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
6. Amounts due from/to related parties (continued)
(8) Other payables (continued)
Related parties 2022 2021
Yunnan Xiyi Industries Co., Ltd. 148,030.00 25,130.48
Luzhou Wanyou Automobile Service Co., Ltd. 129,140.00 4,401.62
China Changan Automobile Group Hefei Investment Co., Ltd. 106,890.47 -
Harbin Dongan Auto Engine Co., Ltd. 106,468.60 4,839.23
Jiangling Holding Co., Ltd. 47,703.40 1,182,839.61
Chongqing Construction Tongda Industrial Co., Ltd. 33,787.00 21,164.90
Hubei Xiaogan Huazhong Automobile Light Co., Ltd. 27,828.32 1,349.36
Chengdu Wanyou Trading Co., Ltd. 11,391.20 12,333.20
Dajiang Yapp Automotive Systems Co., Ltd. 10,855.59 -
Panzhihua Wanyou Auto Sales & Service Co., Ltd. 4,550.30 24,646.80
China Changan Automobile Group Co., Ltd. 1,000.00 1,000.00
SIAMC Management Co., Ltd. - 253,750,000.00
Chongqing Changan Kuayue Automobile Co., Ltd. - 163,007,855.00
Ald Fortune Auto Leasing & Renting (Shanghai) Co., Ltd. - 1,500,000.00
Hubei Huazhong Marelli Automobile Lighting Co., Ltd. - 530,196.00
Gkn Huayu Driveline Systems(chongqing) Co., Ltd. - 89,857.60
Subtotal 627,644.88 420,155,613.80
Total 611,209,294.41 641,024,733.78
233
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
6. Amounts due from/to related parties (continued)
(9) Non-current liability within 1 year
Related parties 2022 2021
Chongqing Changan New Energy Vehicles Technology Co.,
Ltd. 244,429,325.65 154,593,759.05
(11) Long-term payables
Related parties 2022 2021
Chongqing Changan New Energy Vehicles Technology Co.,
Ltd. 408,939,511.34 642,513,537.69
7. Cash deposited in related party
Related parties 2022 2021
China South Industry Group Finance Co., Ltd. 19,862,952,043.78 19,652,980,551.77
Changan Automobile Finacing Co., Ltd. 14,950,000,000.00 12,000,000,000.00
Total 34,812,952,043.78 31,652,980,551.77
In 2022, deposit rates in related party are 0.455%-2.25%, deposit terms are 0 to 12 months. (in
2021, deposit rate was 0.35% to 3.5%, terms are 0 to 12 months.)
8. Loans from related parties
Short-term loans
2022
Related parties Category Beginning balance Addition Repay Ending balance
China South Industry Group Finance Co., Ltd. Credit loan - 18,070,000.00 18,070,000.00 -
Mortgage
China South Industry Group Finance Co., Ltd. loan 19,000,000.00 29,000,000.00 19,000,000.00 29,000,000.00
Total 19,000,000.00 47,070,000.00 37,070,000.00 29,000,000.00
2021
Related parties Category Beginning balance Addition Repay Ending balance
China South Industry Group Finance Co., Ltd. Credit loan 530,000,000.00 - 530,000,000.00 -
Mortgage
China South Industry Group Finance Co., Ltd. loan 48,000,000.00 48,000,000.00 77,000,000.00 19,000,000.00
Total 578,000,000.00 48,000,000.00 607,000,000.00 19,000,000.00
Refer to Note V 21 for the details of the interest rates of the short-term loan.
234
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
8. Loans from related parties (continued)
Long-term loans and non-current liability within 1 year
2022
Related parties Category Beginning balance Addition Repay Ending balance
China South Industry Group Finance Co., Ltd. Credit loan 54,300,000.00 40,000,000.00 54,300,000.00 40,000,000.00
2021
Related parties Category Beginning balance Addition Repay Ending balance
China South Industry Group Finance Co., Ltd. Credit loan 55,300,000.00 - 1,000,000.00 54,300,000.00
Refer to Note V 31 for the details of the interest rates of the long-term loan.
XI Share-based payments
2022 2021
Total amount of equity instruments granted 92,920,600.00 92,920,600.00
Services provided by employees in exchange for
share-based payments 380,209,900.00 268,539,867.92
Equity-settled share payments are as follows:
2022 2021
Accumulated amount of equity-settled share-based
payments included in capital reserve 648,749,767.92 268,539,867.92
Equity-settled share-based payments recognized as
expenses 380,209,900.00 268,539,867.92
With the approval of the Board of Directors and the General Meeting of Shareholders of the
Company, the equity incentive plan implemented in 2021 is as follows: 1) the Company granted a
total of 76,195,400 restricted A-share ordinary shares to a total of 1,247 directors, senior
management, middle management and core technical (business) backbone personnel of the
Company in February 2021 at a grant price of RMB6.66 per share. 2) the Company repurchased
and cancelled 1,036,000 A shares of 11 incentive objects at the price of RMB 4.54/share in
September 2021. 3) the Company granted a total of 17,761,200 reserved restricted A-share shares
to a total of 356 specific senior management, middle management and core technical (business)
personnel of the Company in November 2021 at a grant price of RMB9.93 per share. The fair value
of the equity instrument on the grant date is determined based on the closing price of the
outstanding shares on the grant date of the company.
The arrangements for the restricted shares mentioned above are as follows:
235
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
XI Share-based payments(continued)
Release restricted Release restricted timeline Release
arrangement restricted
percentage
The first release From the first trading day 24 months after the completion of the 33%
restricted period registration of the corresponding restricted stock to the date of
completion of the registration of the corresponding restricted stock
on the last trading day within 36 months from the date of completion
of the registration of the corresponding restricted stock
The second released From the first trading day after 36 months from the date of 33%
restricted period completion of the registration of the corresponding restricted stock
to the date of completion of the registration of the corresponding
restricted stock, the last trading day within 48 months from the date
of completion of the registration of the corresponding restricted
stock
The third released From the first trading day after 48 months from the date of 34%
restricted period completion of the registration of the corresponding restricted stock
to the date of completion of the registration of the corresponding
restricted stock, the date of completion of the last trading day within
60 months
The arrangements for the release of the restricted shares mentioned above are as follows:
Release restricted Performance appraisal conditions
period
The first release Based on the performance of 2019, the compound annual growth rate of net profit
restricted period in 2021 ≥50%, and should not be lower than the average level of the same industry
or the 75th quartile value of the benchmark enterprise, and the 2021 △ EVA is
positive. The return on net assets in 2021 ≥ 1.7%, and should not be lower than
the average level of the same industry or the 75th quartile value of the benchmark
enterprise.
The second released Based on the performance of 2019, the compound annual growth rate of net profit
restricted period in 2022 ≥ 42%, and should not be lower than the average level of the same
industry or the 75th quartile value of the benchmark enterprise, and the 2022 △
EVA is positive. The return on net assets in 2022 ≥ 4.8%, and should not be lower
than the average level of the same industry or the 75th quartile value of the
benchmark enterprise.
The third released Based on the performance of 2019, the compound annual growth rate of net profit
restricted period in 2023 ≥32%, and should not be lower than the average level of the same industry
or the 75th quartile value of the benchmark enterprise, and the 2023 △ EVA is
positive. The return on net assets in 2023 ≥ 5.5%, and should not be lower than
the average level of the same industry or the 75th quartile value of the benchmark
enterprise.
236
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
XII Contingencies and commitments
1. Commitments
Contracted, but not provided for
2022 2021
Capital commitments 11,675,534,857.57 9,188,776,086.05
Investment commitments 1,782,940,000.00 1,509,000,000.00
Total 13,458,474,857.57 10,697,776,086.05
For the lease commitment as the lessee, please see Note 14, 2.
2. Contingencies
As at 31 December 2022, no material contingencies needed to be disclosed.
XIII Events after the balance sheet date
1. The dividends after balance sheet date
The profit distribution plan for 2022 is detailed in note V 44.
2. Other events after the balance sheet date
In December 2022, with the approval of the 49th meeting of the 8th Board of Directors and the
4th extraordinary general meeting of shareholders, the company will acquire 2.63% of the
equity of Chongqing Changan New Energy Vehicles Technology Co., Ltd (hereinafter referred to
as "New Energy Technology") from Chongqing Liangjiang New Area Chengwei Equity
Investment Fund Partnership (Limited Partnership) and 7.71% of equity of New Energy
Technology from Changxin Equity Investment Fund Partnership (Limited Partnership) for RMB
1.332 billion. After the completion of the acquisition, the company’s shareholding in New Energy
Technology increased from 40.6559% to 50.9960%, and New Energy Technology will change
from an associate accounted for by the equity method to a holding subsidiary. As at the date of
this report, the relevant acquisitions have been completed and New Energy Technology has
been included in the scope of the Group's consolidated statements since February 2023.
237
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
XIV Other important event
1. Segment report
The Group identifies operating segments based on the internal organization structure,
managerial requirements and internal reporting system, and identifies reportable segments
based on operating segments and discloses segment information by operating segment.
An operating segment is a component of the Group that meets all the following conditions:
(1) it engages in business activities from which it may earn revenues and incur expenses;
(2) its operating results are regularly reviewed by the Company’s management to make
decisions about resources to be allocated to the segment and assess its performance; and
(3) the Group can obtain relevant accounting information such as its financial position,
operating results and cash flows.
If two or more segments have similar economic characteristics and meet certain conditions, they
can be aggregated into a single operating segment.
The revenue and profit of the Group mainly consist of the automobile manufacturing and
domestic sales. The Group’s principal assets are in China. The operating performance of the Group
has been evaluated as a whole by the management. So the segment report has not been prepared
for this year.
2. Lease arrangements
(1) As lessor
The Group leases buildings, machinery and equipment and vehicles for a lease term of 1-15
years, forming an operating lease. Details for investment property and operating leased fixed
assets refer to note V 12 and 13.
The income related to operating leases are listed as follows:
2022 2021
Leasehold Income 414,625,233.74 269,945,865.23
238
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
2. Lease arrangements (continued)
According to the lease contract signed with the lessee, the minimum lease collection amount
of irrevocable lease is as follows:
2022 2021
Less than 1 year (including 1 year) 485,069,034.35 431,996,621.28
1 to 2 years (including 2 years) 393,916,228.04 367,687,620.42
2 to 3 years (including 3 years) 258,908,078.26 327,218,497.55
3 to 4 years (including 3 years) 116,180,073.26 240,066,615.96
4 to 5 years (including 3 years) 33,175,628.20 95,177,907.96
Over 5 years 25,435,140.79 29,888,877.61
1,312,684,182.90 1,492,036,140.78
(2) As lessee
2022 2021
Interest expense of lease liabilities 3,315,624.26 3,238,026.58
Short term lease expenses with simplified treatment
included in current profit and loss 68,405,663.80 78,921,021.42
Lease expense of low value assets with simplified
treatment included in current profit and loss 3,208,292.72 2,566,698.86
Total cash outflow related to leasing 96,132,331.89 119,748,677.95
The leased assets leased by the Group include buildings and other equipment used in the
operation activities. The lease term of houses and buildings is usually 1-5 years, and that of
other equipment is usually 2-5 years.
239
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
XV Notes to the Company’s financial statements
1. Accounts Receivable
(1) Aging analysis of accounts receivable as at 31 December 2022 is as follows:
2022 2021
Less than 1 year (including 1 year) 4,445,068,297.55 6,741,369,355.22
1 to 2 years (including 2 years) 997,705,973.80 353,774,325.51
2 to 3 years (including 3 years) - 227,529,170.91
Over 3 years 213,599,440.84 711,074,867.37
5,656,373,712.19 8,033,747,719.01
Less：Provision (117,868,890.37) (102,237,112.42)
5,538,504,821.82 7,931,510,606.59
(2) Movements of provision for accounts receivable are as follows:
Beginning balance Provision Write-off Ending balance
2022 102,237,112.42 17,018,007.91 1,386,229.96 117,868,890.37
2021 93,484,241.66 8,752,870.76 - 102,237,112.42
(3) Analysis of the accounts receivable by category as at 31 December 2022 is as follows:
2022
Balance Provision
Amount % Amount %
Individually analyzed provision 5,137,221,177.03 90.82 76,252,846.20 1.48
Provision for bad debts based on credit risk
characteristics 519,152,535.16 9.18 41,616,044.17 8.02
Total 5,656,373,712.19 100.00 117,868,890.37 2.08
2021
Balance Provision
Amount % Amount %
Individually analyzed provision 7,844,348,937.41 97.64 77,639,076.15 0.99
Provision for bad debts based on credit risk
characteristics 189,398,781.60 2.36 24,598,036.27 12.99
Total 8,033,747,719.01 100.00 102,237,112.42 1.27
240
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
1. Accounts Receivable (continued)
(4) Accounts receivable was analyzed for provision by expected credit loss model:
2022 2021
Balance amount % Provision Balance amount % Provision
Within 1 year 452,608,491.21 0.89 4,009,679.22 153,480,402.70 0.42 642,592.90
1 to 2 years 30,625,665.06 7.23 2,214,135.18 - - -
2 to 3 years - - - 655,000.31 10.84 71,031.12
Over 3 years 35,918,378.89 98.54 35,392,229.77 35,263,378.59 67.73 23,884,412.25
Total 519,152,535.16 8.02 41,616,044.17 189,398,781.60 12.99 24,598,036.27
(5) As at 31 December 2022, accounts receivable from top 5 clients amounted to RMB
3,044,844,058.24, accounted for 53.83% of the total amount (2021：RMB 4,129,668,343.88,
accounted for 51.40% of the total amount).
(6) There are no accounts receivable derecognized due to transference of financial assets
during 2022 (2021: Nil).
2. Other receivables
(1) Aging analysis of other receivables as at 31 December 2022 is as follows:
2022 2021
Within 1 year 842,446,117.27 1,745,128,693.03
1 to 2 years 7,116,112.63 1,413,046.51
2 to 3 years 1,226,346.51 497,065.04
Over 3 years 15,300,830.26 16,804,017.31
866,089,406.67 1,763,842,821.89
Less：Provision (7,062,658.03) (7,219,239.96)
Total 859,026,748.64 1,756,623,581.93
(2) Analysis of other receivables by nature is as follows:
2022 2021
Prepaid equity investment 399,486,432.52 526,670,000.00
Energy-saving and new energy subsidy 338,394,118.63 358,470,077.96
Pretty cash 62,920,147.86 21,998,665.75
Internal transactions 32,946,539.47 791,370,940.07
Others 25,279,510.16 58,113,898.15
Total 859,026,748.64 1,756,623,581.93
241
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
2. Other Receivable (continued)
(3) In 2022, the changes in the provision for bad debts for other receivables based on the 12-
month expected credit loss and the expected credit loss for the entire duration are as
follows
Beginning balance Provision Reversal Ending balance
2022 7,219,239.96 - 156,581.93 7,062,658.03
2021 7,154,284.79 64,955.17 - 7,219,239.96
(4) As at 31 December 2022, top five debtors of other receivables are as follows:
Amount Aging Proportion of Ending
total other balance of
Debtors receivables (%) provision
1st 338,394,118.63 Within 1 year 39.07 -
2nd 297,876,247.07 Within 1 year 34.39 -
3nd 101,610,185.45 Within 1 year 11.73 -
4th 18,673,042.75 Within 1 year 2.16 -
5th 16,186,569.01 Within 1 year 1.87 -
Total 772,740,162.91 89.22
(5) As of December 31, 2022, the company had no other receivables that were derecognized as
a transfer of financial assets (December 31, 2021: Nil).
242
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
3. Long-term investments
2022
Investee Opening Balance Addition Reduction Investment Other Other changes in Dividend of cash Other Ending Balance Ending Balance
income/loss under comprehensive equity declared deduction of provision
equity method income
comprehensive
income
Joint ventures
Changan Ford Automobile Co., Ltd. 2,934,876,043.99 - - (1,222,416,692.14 ) - - (1,000,000,000.00 ) - 712,459,351.85 -
Changan Mazda Automobile Co., Ltd. 1,867,086,106.67 - - 45,093,349.65 - - (478,875,000.00 ) - 1,433,304,456.32 -
Changan Mazda Engine Co., Ltd. 835,121,564.38 - - 30,420,484.67 - - (41,500,000.00 ) - 824,042,049.05 -
Nanchang Jiangling Investment Co., Ltd. 1,630,596,420.97 - - 179,430,391.82 602,832.07 - - - 1,810,629,644.86 -
Subtotal of joint ventures 7,267,680,136.01 - - (967,472,466.00 ) 602,832.07 - (1,520,375,000.00 ) - 4,780,435,502.08 -
Associates
Chongqing Changan Kuayue Automobile Co., Ltd. 242,792,196.86 - - (33,023,260.52 ) - - - - 209,768,936.34 -
Chongqing Changan Kuayue Automobile Sales Co., Ltd. - - - - - - - - - -
Beijing Fang Anxin Yue Rental Auto Co.,Ltd. - - - - - - - - - -
Changan Automobile Finacing Co., Ltd. 2,520,349,332.44 - - 325,492,694.33 - - (66,943,616.44 ) - 2,778,898,410.33 -
Hainan Anxinxing Information Technology Co., Ltd. - 368,900.00 (849.01 ) (368,050.99 ) - - - - - -
Nanjing Chelai Travel Technology Co., Ltd. 866,888.90 - - (242,115.59 ) - - - - 624,773.31 -
Coresing Semiconductor Technology Co., Ltd. 25,285,116.95 - - 167,308.31 - - - - 25,452,425.26 -
Nanjing Leading Equity Investment Partnership (Limited
Partnership) 2,424,143,949.52 - - 146,277,515.18 - - - - 2,570,421,464.70 -
Nanjing Leading Equity Investment Management Co., Ltd. 1,133,065.60 - - (20,854.91 ) - - - - 1,112,210.69 -
Jiangling Holding Co., Ltd. 70,492,790.08 - - (70,492,790.08 ) - - - - - -
Chongqing Changan New Energy Vehicles Technology Co.,
Ltd. - 1,360,000,000.00 - (1,653,680,684.65 ) - 663,566,110.70 - - 369,885,426.05 -
Zhongqi Chuangzhi Technology Co., Ltd. 190,534,997.15 - - (22,042,206.37 ) - - - - 168,492,790.78 -
Chongqing Changxin Zhiqi Private Equity Investment Fund
Partnership (Limited Partnership) 25,007,587.62 133,187,500.00 - 12,244,966.46 - - - - 170,440,054.08 -
Anhe Chongqing Dingfeng Auto Contractual Private Equity
Investment Fund - 61,744,000.00 - (175,293.92 ) - - - - 61,568,706.08 -
Avatr Technology (Chongqing) Co., Ltd. - 2,040,266,561.89 - (811,903,504.78 ) (75,815.98 ) - - - 1,228,287,241.13 -
Chongqing Changan Innovation Private Equity Investment
Fund Partnership (Limited Partnership) - 1,000,000.00 - 844.59 - - - - 1,000,844.59 -
Subtotal of associates 5,500,605,925.12 3,596,566,961.89 (849.01 ) (2,107,765,432.94 ) (75,815.98 ) 663,566,110.70 (66,943,616.44 ) - 7,585,953,283.34 -
243
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
3. Long-term investments (continued)
2022 (continued)
Investee Opening Balance Addition Reduction Investment Other Other changes in Dividend of cash Others Ending Balance Ending Balance of
income/loss under comprehensive equity declared provision
equity method income
comprehensive
income
Subsidiaries
Nanjing Changan Automobile Co., Ltd. 422,533,259.00 - - - - - - - 422,533,259.00 -
Chongqing Changan International 13,068,581.00 190,000,000.00 - - - - - - 203,068,581.00 -
Chongqing Changan Automobile Supporting 29,700,000.00 - - - - - - - 29,700,000.00 -
Chongqing Changan Connected Car 88,500,000.00 - - - - - - - 88,500,000.00 -
Chongqing Changan Special Automobile Co., 2,500,000.00 - - - - - - - 2,500,000.00 -
Chongqing Changan Europe Design 155,469,913.50 - - - - - - - 155,469,913.50 -
Chongqing Changan New Energy - - - - - - - - - (49,194,195.00 )
Changan United Kingdom R&D Center Co., 250,093,850.95 - - - - - - - 250,093,850.95 -
Beijing Changan R&D Center Co., Ltd. 1,000,000.00 - - - - - - - 1,000,000.00 -
Changan Japan Designing Center Co.,Ltd. 1,396,370.15 - - - - - - - 1,396,370.15 -
Changan United States R&D Center Co., Ltd. 10,243,460.00 - - - - - - - 10,243,460.00 -
Hefei Changan Automobile Co.,Ltd. 1,535,367,765.23 - - - - - - - 1,535,367,765.23 -
Changan Automobile Russia Co., Ltd. 251,242,589.15 - - - - - - - 251,242,589.15 -
Changan Brazil Holdings Limited 2,584,556.97 - (2,584,556.97 ) - - - - - - -
Changan Automobile Investment 235,248,871.00 2,640,640.00 - - - - - - 237,889,511.00 -
Nanjing Changan New Energy Automobile 50,000,000.00 - - - - - - - 50,000,000.00 -
Chongqing Anyi Automobile Technical 2,000,000.00 - - - - - - - 2,000,000.00 -
Xiamen Changan New Energy Automobile 2,000,000.00 - - - - - - - 2,000,000.00 -
Guangzhou Changan New Energy 4,000,000.00 - - - - - - - 4,000,000.00 -
Chongqing Changan Lingyao Automobile 594,949,059.30 - - - - - - - 594,949,059.30 -
Chongqing Chehemei Technology Co., Ltd. 10,000,000.00 - - - - - - - 10,000,000.00 -
Chongqing Changan Kaicheng Automobile 977,793,971.55 - - - - - - - 977,793,971.55 -
Chongqing Changan Automobile Software 99,000,000.00 - - - - - - - 99,000,000.00 -
Chongqing Changan Technology Co., Ltd. - 90,000,000.00 - - - - - - 90,000,000.00 -
Avatr Technology (Chongqing) Co., Ltd. 153,841,669.77 - - - - - - (153,841,669.77 ) - -
Subtotal of subsidiaries 4,892,533,917.57 282,640,640.00 (2,584,556.97 ) - - - - (153,841,669.77 ) 5,018,748,330.83 (49,194,195.00 )
Total 17,660,819,978.70 3,879,207,601.89 (2,585,405.98 ) (3,075,237,898.94 ) 527,016.09 663,566,110.70 (1,587,318,616.44 ) (153,841,669.77 ) 17,385,137,116.25 (49,194,195.00 )
244
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
3. Long-term investments (continued)
2021
Investee Opening Balance Addition Investment income/loss Other comprehensive Other changes in Dividend of cash Ending Balance Ending Balance
under equity method income equity declared of provision
Joint ventures
Changan Ford Automobile Co., Ltd. 1,791,533,495.17 - 1,143,342,548.82 - - - 2,934,876,043.99 -
Changan Mazda Automobile Co., Ltd. 1,995,998,622.28 - 417,328,331.92 - 173,259,152.47 (719,500,000.00) 1,867,086,106.67 -
Changan Mazda Engine Co., Ltd. 832,869,256.44 - 41,752,307.94 - - (39,500,000.00) 835,121,564.38 -
Nanchang Jiangling Investment Co., Ltd. 1,545,807,633.84 - 86,068,773.02 (1,279,985.89) - - 1,630,596,420.97 -
Subtotal of joint ventures 6,166,209,007.73 - 1,688,491,961.70 (1,279,985.89) 173,259,152.47 (759,000,000.00) 7,267,680,136.01 -
Associates
Chongqing Changan Kuayue Automobile Co., Ltd. 237,736,134.21 - 8,486,062.65 - - (3,430,000.00) 242,792,196.86 -
Chongqing Changan Kuayue Automobile Sales Co., Ltd. - - - - - - - -
Beijing Fang’an cresent taxi Co., Ltd. - - - - - - - -
Changan Automobile Finacing Co., Ltd. 2,337,849,374.75 - 247,691,770.61 - - (65,191,812.92) 2,520,349,332.44 -
Hainan Anxinxing Information Technology Co., Ltd. 2,316,052.92 - (2,316,052.92) - - - - -
Nanjing Chelai Travel Technology Co., Ltd. 1,192,605.27 - (325,716.37) - - - 866,888.90 -
Coresing Semiconductor Technology Co., Ltd. 25,373,809.47 - 47,460.39 - - (136,152.91) 25,285,116.95 -
Nanjing Leading Equity Investment Partnership (Limited -
Partnership) 999,636,607.63 741,732,283.00 682,775,058.89 - - 2,424,143,949.52 -
Nanjing Leading Equity Investment Management Co., Ltd. 1,262,180.39 - (129,114.79) - - - 1,133,065.60 -
Jiangling Holding Co., Ltd. 201,736,644.25 - (131,243,854.17) - - - 70,492,790.08 -
Chongqing Changan New Energy Vehicles Technology Co., -
Ltd. 1,042,156,607.05 - (1,042,156,607.05) - - - -
Zhongqi Chuangzhi Technology Co., Ltd. 100,000,000.00 100,000,000.00 (9,465,002.85) - - - 190,534,997.15 -
Chongqing Changxin Zhiqi Private Equity Investment Fund
Partnership (Limited Partnership) - 25,500,000.00 (492,412.38) - - - 25,007,587.62 -
Subtotal of associates 4,949,260,015.94 867,232,283.00 (247,128,407.99) - - (68,757,965.83) 5,500,605,925.12 -
245
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
3. Long-term investments (continued)
2021 (continued)
Investee Opening Balance Addition Investment income/loss Other Other changes in Dividend of cash Ending Balance Ending Balance of
under equity method comprehensive equity declared provision
income
Subsidiaries - - - - - - -
Nanjing Changan Automobile Co., Ltd. 422,533,259.00 - - - - - 422,533,259.00 -
Chongqing Changan International Automobile Sales Co., Ltd. 13,068,581.00 - - - - - 13,068,581.00 -
Chongqing Changan Automobile Supporting Service Co., Ltd. 29,700,000.00 - - - - - 29,700,000.00 -
Chongqing Changan Connected Car Technology Co., Ltd. 88,500,000.00 - - - - - 88,500,000.00 -
Chongqing Changan Special Automobile Co., Ltd. 2,500,000.00 - - - - - 2,500,000.00 -
Chongqing Changan Europe Design Academy Co., Ltd. 155,469,913.50 - - - - - 155,469,913.50 -
Chongqing Changan New Energy Automobile Co. Ltd. - - - - - - - (49,194,195.00)
Changan United Kingdom R&D Center Co., Ltd. 250,093,850.95 - - - - - 250,093,850.95 -
Beijing Changan R&D Center Co., Ltd. 1,000,000.00 - - - - - 1,000,000.00 -
Changan Japan Designing Center Co.,Ltd. 1,396,370.15 - - - - - 1,396,370.15 -
Changan United States R&D Center Co., Ltd. 10,243,460.00 - - - - - 10,243,460.00 -
Hefei Changan Automobile Co.,Ltd. 1,535,367,765.23 - - - - - 1,535,367,765.23 -
Changan Automobile Russia Co., Ltd. 251,242,589.15 - - - - - 251,242,589.15 -
Changan Brazil Holdings Limited 2,584,556.97 - - - - - 2,584,556.97 -
Changan Automobile Investment (Shenzhen) Co., Ltd. 235,248,871.00 - - - - - 235,248,871.00 -
Nanjing Changan New Energy Automobile Sales & Service 50,000,000.00 - - - - - 50,000,000.00 -
Chongqing Anyi Automobile Technical Service Co., Ltd. 2,000,000.00 - - - - - 2,000,000.00 -
Xiamen Changan New Energy Automobile Co. Ltd. 2,000,000.00 - - - - - 2,000,000.00 -
Guangzhou Changan New Energy Automobile Co. Ltd. 4,000,000.00 - - - - - 4,000,000.00 -
Chongqing Changan Lingyao Automobile Co., Ltd. 594,949,059.30 - - - - - 594,949,059.30 -
Chongqing Chehemei Technology Co., Ltd. 10,000,000.00 - - - - - 10,000,000.00 -
Chongqing Changan Kaicheng Automobile Technology Co., 976,475,558.18 1,318,413.37 - - - - 977,793,971.55 -
Chongqing Changan Automobile Software Technology Co., 99,000,000.00 - - - - - 99,000,000.00 -
Avatr Technology (Chongqing) Co., Ltd. 58,461,669.77 95,380,000.00 - - - - 153,841,669.77 -
Subtotal of subsidiaries 4,795,835,504.20 96,698,413.37 - - - - 4,892,533,917.57 (49,194,195.00)
Total 15,911,304,527.87 963,930,696.37 1,441,363,553.71 (1,279,985.89) 173,259,152.47 (827,757,965.83) 17,660,819,978.70 (49,194,195.00)
246
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
4. Operating revenue and cost
2022 2021
Revenue Cost Revenue Cost
Primary Operation 99,659,461,376.20 83,039,189,231.43 90,985,611,205.39 80,344,375,608.83
Other Operation 7,005,683,913.08 3,202,290,576.52 7,317,328,166.58 3,794,210,191.83
Total 106,665,145,289.28 86,241,479,807.95 98,302,939,371.97 84,138,585,800.66
Operating revenue listed as follows:
2022 2021
Sales of goods 100,724,925,838.45 93,345,887,353.11
Provision of services and others 5,940,219,450.83 4,957,052,018.86
Total 106,665,145,289.28 98,302,939,371.97
The breakdown of operating revenue generated from contracts with customers is as follows:
2022 2021
Revenue recognition time
Recognize revenue at a certain point in time 105,965,019,826.80 97,549,755,107.36
Recognize revenue within a certain period of
time 700,125,462.48 753,184,264.61
Total 106,665,145,289.28 98,302,939,371.97
The income recognized in the current year and included in the book value of contract liabilities at the
beginning of the year is as follows:
2022 2021
Sales of goods 8,024,058,722.97 3,305,994,526.82
Provision of services and others 422,441,293.07 137,381,961.13
Total 8,446,500,016.04 3,443,376,487.95
247
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
4. Operating revenue and cost (continued)
The estimated time when the total transaction price that has not been fulfilled (or partially fulfilled)
performance obligations allocated to the end of the year is recognized as revenue is as follows:
2022 2021
Within 1 year 3,997,514,972.13 8,446,500,016.04
More than 1 year 844,435,549.31 715,087,257.75
Total 4,841,950,521.44 9,161,587,273.79
5. Investment income/loss
(1) Details of investment income
2022 2021
Long-term equity investment income
accounted for by the cost method 653,072,387.00 -
Long-term equity investment income/(loss)
accounted for by the equity method (3,075,237,898.94) 1,441,363,553.71
The investment income of financial asset held for trading
during its holding period 3,289,610.51 3,363,000.00
Dividend income from remaining investments in
other equity instruments 160,088,164.16 78,499,905.15
Investment income from disposal of long-term equity
investments (1,805,399.76) -
Gains from the remeasurement of the remaining equity
at fair value after the loss of control 337,514,571.42 -
Interest income from entrusted loan - 8,099,253.11
Total (1,923,078,565.61) 1,531,325,711.97
248
Chongqing Changan Automobile Company Limited
Notes to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan)
5. Investment income/loss (continued)
(2) Long-term equity investment income under equity method
Investee 2022 2021 Reason for the
fluctuation
Decrease in profit due
Changan Ford Automobile Co., Ltd. (1,222,416,692.14 ) 1,143,342,548.82 to sales decline
Decrease in profit due
Changan Mazda Automobile Co., Ltd. 45,093,349.65 417,328,331.92 to sales decline
Changan Mazda Engine Co., Ltd. 30,420,484.67 41,752,307.94
Increase in
Nanchang Jiangling Investment Co., Ltd. 179,430,391.82 86,068,773.02 investment income
Jiangling Holding Co., Ltd. (70,492,790.08 ) (131,243,854.17)
Decrease in profit due
Chongqing Changan Kuayue Automobile Co., Ltd. (33,023,260.52) 8,486,062.65 to sales decline
Changan Automobile Finacing Co., Ltd. 325,492,694.33 247,691,770.61
Loss at the beginning
Avatr Technology (Chongqing) Co., Ltd. (811,903,504.78 ) - of operations
Hainan Anxinxing Information Technology Co., Ltd. (368,050.99 ) (2,316,052.92)
Nanjing Chelai Travel Technology Co., Ltd. (242,115.59 ) (325,716.37)
Nanjing Leading Equity Investment Partnership Decrease in fair value
(Limited Partnership) 146,277,515.18 682,775,058.89 premium
Nanjing Leading Equity Investment Management Co., Ltd. (20,854.91 ) (129,114.79)
Coresing Semiconductor Technology Co., Ltd. 167,308.31 47,460.39
Chongqing Changan New Energy Vehicles Technology Co.,
Ltd. (1,653,680,684.65 ) (1,042,156,607.05) Increase in loss
Zhongqi Chuangzhi Technology Co., Ltd. (22,042,206.37 ) (9,465,002.85)
Chongqing Changxin Zhiqi Private Equity Investment Fund
Partnership (Limited Partnership) 12,244,966.46 (492,412.38)
Anhe Chongqing Dingfeng Auto Contractual Private Equity
Investment Fund (175,293.92 ) -
Chongqing Changan Innovation Private Equity Investment
Fund Partnership (Limited Partnership) 844.59 -
Total (3,075,237,898.94) 1,441,363,553.71
249
Chongqing Changan Automobile Company Limited
Supplementary Information to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan) Supplementary information
1. Schedule of non-recurring profit and loss
2022
Non-current asset disposal gains and losses (including the write-off portion of the
asset impairment provision) 74,862,481.00
Government subsidies included in the current profit and loss (closely related to the
business of the enterprise, except for government subsidies that
are fixed or quantified according to the national unified standard) 1,134,358,181.32
Interest on late payment of funds charged to non-financial enterprises 40,505,154.81
In addition to the effective hedging business related to the company's normal business
operations, the fair value changes in gains and losses
arising from holding trading financial assets 3,570,229.29
Reversal of impairment provision for accounts receivable that are tested separately
for impairment 2,847,641.57
Investment income from the disposal of long-term equity investments 2,128,313,646.36
Other non-operating income and expenses other than the above 77,519,377.00
Income tax impact (94,817,746.44)
Minority shareholders' equity impact (after tax) (27,627,185.99)
Total 3,339,531,778.92
The Group disclosed non-recurring profit and loss items in accordance with the regulations issued
by China Security Regulation Commission, No 1 Regulation of Information Disclosure of Public
Companies-Non-recurring Profit and Loss
250
Chongqing Changan Automobile Company Limited
Supplementary Information to Financial Statement
Year ended 31 December 2022
(Expressed in Renminbi Yuan) Supplementary information
2. Return on equity and earnings per share
2022
Weighted average Earnings per share
return on equity
Basic EPS Diluted EPS
(%)
Net profit attributable to the Company’s ordinary
shareholders 13.07 0.7960 0.7799
Net profit attributable to the Company’s ordinary
shareholders after deducting non-recurring profit and loss 7.47 0.4538 0.4459
2021
Weighted average Earnings per share
return on equity
Basic EPS Diluted EPS
(%)
Net profit attributable to the Company’s ordinary
shareholders 6.53 0.3616 0.3579
Net profit attributable to the Company’s
ordinary shareholders after deducting non-recurring
profit and loss 3.04 0.1670 0.1665
In accordance with the regulations issued by China Security Regulation Commission, Regulation
of Information Disclosure of Public Companies—the Calculation and Disclosure of Return of Net
Assets and Earning per Share (2010 Revision), the Group disclosed the return of net assets and
earnings per share in the reporting period.
251
