Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Chongqing Changan Automobile
Company Limited
2023 Semi-Annual Report
August 2023
Chongqing Changan Automobile Company Limited 2023 Semi-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. All the directors have attended the board meeting for reviewing this Report.
4. Any prospective description such as future business plans and development strategies in this Report
shall not be considered as the Company’s commitment to investors. Investors and relevant 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. For the first half of 2023, the Company has no plans of cash dividend, no bonus shares and no share
converted from capital reserve.
This Report has been prepared in both Chinese and English. Should there be any discrepancies or
misunderstandings between the two versions, the Chinese version shall prevail.
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
CONTENTS
Chapter 1 Important Notice, Contents, and Definitions ............................................. 1
Chapter 2 Company Profile and Main Financial Indexes .......................................... 4
Chapter 3 Management Discussion and Analysis ...................................................... 8
Chapter 4 Corporate Governance ............................................................................. 26
Chapter 5 Environment and Social Responsibility .................................................. 29
Chapter 6 Important Matters .................................................................................... 42
Chapter 7 Changes in the Shareholding of the Company and Shareholders ........... 47
Chapter 8 Preferred Shares ....................................................................................... 53
Chapter 9 Bonds ....................................................................................................... 54
Chapter 10 The Financial Statements....................................................................... 56
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Chongqing Changan Automobile Company Limited 2023 Semi-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. 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.
Definitions
Items Definitions
Changan Auto, Changan
Refers to Chongqing Changan Automobile Co., Ltd.
Automobile, the Company
CSG Refers to China South Industries Group Corporation, the Company’s actual controller
China Changan Automobile Group Co., Ltd., formerly known as China South
China Changan Refers to
Industries Automobile Co., Ltd., a subsidiary company of CSG
Chongqing Changan Industry (Group) Co., Ltd., formerly known as Changan
Changan Industry Refers to
Automobile (Group) Co., Ltd., a subsidiary company of CSG
Nanjing Changan Refers to Nanjing Changan Automobile Co., Ltd., a subsidiary company of the Company
Hebei Changan Refers to Hebei Changan Automobile Co., Ltd., a subsidiary company of the Company
Hefei Changan Refers to Hefei Changan Automobile Co., Ltd., a subsidiary company of the Company
Changan Bus Refers to Baoding Changan Bus Co., Ltd., a subsidiary company of the Company
Kaicheng Automobile Refers to Kaicheng Automobile Technology Co., Ltd., a subsidiary company of the Company
Chongqing Changan Automobile International Sale Service Co., Ltd., a subsidiary
CIC Refers to
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 South
CSG Finance Refers to
Industries
UPI Refers to United Prosperity Investment Co., Ltd., a subsidiary company of China Changan
Changan Technology Refers to Chongqing Changan Technology Co., Ltd., a subsidiary company of the Company
Deepal Auto Refers to Deepal Automobile Technology Co., Ltd., a subsidiary company of the Company
Avatr Refers to Avatr Technology (Chongqing) Co., Ltd., an associate of the Company
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Chongqing Changan Automobile Company Limited 2023 Semi-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 in Chinese
重庆长安汽车股份有限公司
name
Company abbreviation in
长安汽车
Chinese name
Company name in
Chongqing Changan Automobile Co., Ltd.
English
Legal representative Zhu Huarong
II. Contact Information
Secretary of the Board of Directors Securities Affairs Representative
Name Zhang Deyong, Li Jun Jie Zhonghua
Building T2, No. 2, Financial City, No. 61 Building T2, No. 2, Financial City, No.
Contact address Dongshengmen Road, Jiangbei District, 61 Dongshengmen Road, Jiangbei
Chongqing District, Chongqing
TEL 023-67594008 023-67594008
FAX 023-67870261 023-67870261
E-mail address cazqc@changan.com.cn jiezh@changan.com.cn
III. Others
1. Contact information
Whether registration address, office address and its post code as well as website and email of the Company changed in the reporting
period or not
□ Applicable √ Not applicable
The registration address, office address and post code as well as website and email of the Company did not change in the reporting
period. See more details in Annual Report 2022.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
4
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
□ Applicable √ Not applicable
The newspaper appointed for information disclosure, the website for the publishment of the semi-annual report appointed by
CSRC and the preparation place for semi-annual report did not change in the reporting period. See more details in Annual Report 2022.
3. Other relevant information
Whether other relevant information changed in the reporting period or not
□ Applicable √ Not applicable
IV. Key Accounting Data and Financial Indexes
Does the Company need to retrospectively adjust or restate the accounting data of previous years?
□Yes √ No
The reporting period The same period of last year YoY change (%)
Operating revenue (RMB) 65,492,098,869.01 56,573,568,393.71 15.76%
Net profit attributable to shareholders of
7,652,979,346.80 5,857,626,135.78 30.65%
the Company (RMB)
Net profit after deduction of non-recurring
gains or losses attributable to shareholders 1,509,058,024.00 3,100,113,819.34 -51.32%
of the Company(RMB)
Net cash flow from operating activities
6,955,456,713.59 5,852,236,420.20 18.85%
(RMB)
Basic earnings per share (RMB/share) 0.78 0.60 30.00%
Diluted earnings per share (RMB/share) 0.76 0.59 28.81%
Weighted average ROE (%) 11.70% 10.06% 1.64%
30 June 2023 31 December 2022 YoY change (%)
Total assets (RMB) 174,992,803,677.92 146,048,555,951.92 19.82%
Net assets attributable to shareholders of
67,951,132,340.73 62,858,105,705.70 8.10%
the Company (RMB)
V. 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
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
No difference during the reporting period.
3. Reasons for differences in accounting data under Chinese Accounting Standards and International
Financial Reporting Standards.
□ Applicable √ Not applicable
VI. Items and Amounts of Non-Recurring Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
Item Amount Illustration
Non-recurring items and amounts (including accrued
366,667,730.28
reversal assets impairment part)
Government subsidies included in the profit and loss
of the current period (Except closely related to
business operations, in accordance with the national 856,008,089.78
unified standard quota or quantitative enjoyment of
government subsidies)
Capital occupation fees charged to non-financial
17,949,915.40
enterprises included in the current profit and loss
In addition to the effective hedging business related to
the normal business of the company, the gains and
losses from changes in fair value arising from the
holding of trading financial assets, derivative financial
assets, trading financial liabilities, derivative financial -23,334,661.15
liabilities, and disposal of transactional financial
assets, derivative finance Investment income from
assets, trading financial liabilities, derivative financial
liabilities and other debt investments
The company formed a business merger under
non common control through additional
investment in the original joint venture Deepal
Automobile Technology Co., Ltd. (hereinafter
referred to as "Deepal Automobile", formerly
Chongqing Changan New Energy Automobile
Income from business combinations not under Technology Co., Ltd.), as detailed in the
5,021,482,128.74
common control "Announcement on the Acquisition of Partial
Equity of Changan New Energy" (Announcement
No. 2022-78). The transaction completed the
equity delivery procedures on February 1, 2023.
Please refer to the "Progress Announcement on
Acquiring Partial Equity of Changan New
Energy" (Announcement No. 2023-05) for
6
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
details. According to Article 48 of Enterprise
Accounting Preparation No. 33- Consolidated
Financial Statements, the company recognized an
investment income of 5.021 billion yuan in the
first quarter of 2023 based on the financial
information on the purchase date.
Other non-operating income and expenses other than
79,796,614.79
the above items
Subtract: Influenced amount of income tax 171,307,435.24
Influenced amount of minority shareholders’ equity
3,341,059.80
(after tax)
Total 6,143,921,322.80 --
Explanation of why the Company reclassifies recurrent gain/loss as an Extraordinary 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.
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Chapter 3 Management Discussion and Analysis
I. The main business of the Company in the reporting period
1. Business overview
As an automobile manufacturer, Changan Automobile’s businesses cover the R&D, manufacturing, and sales of vehicles, as 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 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 science and technology innovation, and strives to provide
customers with high-quality products and services. The company now owns homegrown brands including Changan Automobile and
Kaicheng Automobile, and has innovatively built three NEV brands, i.e., Avatr, Deepal, and Changan Qiyuan, to promote its own brand
to move upward. 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 and UNI series. Joint ventures
have launched Edge L, Explorer, New Generation Nautilus, Corsair, Aviator, Zephyr, CX-50, CX-5, Axela and other well-received
products. In the field of new energy vehicles, Deepal SL03, Deepal S7, Avatr E11, UNI-V iDD, Lumin have been launched. Many
models of the company are welcomed by consumers.
Our operation attaches “equal importance to homegrown and joint venture brands”. We make determined efforts in developing
iconic homegrown brands, with Changan Auto, Deepal Auto, and Kaicheng Automobile brands as independent entities. For Changan
Ford, Changan Mazda and other joint ventures, we adopt investment management and continue to deepen mutual trust and cooperation
with partners.
2. Industry situation
In the first half of 2023, China’s economy continued to recover, and the “triple pressure” has been alleviated to a certain extent
and all industries have shown varying degrees of recovery momentum. But constrained by weak consumption and other factors, the
internal impetus for economic growth is not strong, and the foundation for economic recovery is not yet solid. In the face of subsidy
withdrawal, insufficient demand and other headwind factors, the auto industry in the first half of the year to increase promotion
campaigns, increase the supply of new models, together with the national and local policies for automobile consumption, and the
gradual recovery of automobile market demand. At the same time, new energy vehicles, automobile exports and Chinese brands
continued to maintain a good momentum, which helped the industry achieve positive growth in the first half of the year. The specific
situation of the industry during the reporting period is as follows:
In the first half of 2023, the domestic automobile industry achieved a cumulative sales volume of 13.239 million units, had a 9.8%
year-over-year growth, and the overall sales volume showed a low trend before and then a high trend. By model, the cumulative sales
volume of passenger vehicles in the first half of the year was 11.268 million units, had an 8.8% year-over-year growth, which was less
than the industry. Due to the favorable factors such as macroeconomic recovery and strengthening of infrastructure investment, the
commercial vehicles market achieved double-digit rapid growth year-over-year, and achieved 1.971 million sales in the first half of the
year, had a 15.8% year-over-year growth, and had an obvious recovery momentum.
New energy vehicles and automobile exports, as the two major growth highlights of the current automobile market, continue to
effectively drive the overall market growth with good performance. Although the new energy subsidy policy has been withdrawn at
the end of 2022, the new energy vehicles market in the first half of 2023 still maintained a sustained growth trend, and the production
and sales reached a new high in the same period, respectively completed 3.788 million units and 3.747 million units, with year-over-
year growth of more than 40%, continuing to show a prosperous trend of production and sales. From the market segment, EV and XEV
have a different performance, affected by battery cost, convenience of use and other factors, XEV model growth rate is significantly
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
higher than EV model. Chinese automobile brands continue to be the main source of growth of the new energy passenger automobile
market, contributing more than 75% sales of the new energy passenger cars. The market share of Chinese automobile brands in the
new energy passenger cars raised to 53.5%, nearing a record high.
Automobile exports grew rapidly, exceeding 2 million units in the first half of 2023, contributing significantly to the overall
growth of the market, of which the export of new energy vehicles reached 534,000 units, had a year-over-year growth more than 150%.
In recent years, with a more complete industrial chain, continuous and rapid iteration of intelligent technology, scale advantages and
abundant product matrix, Chinese automobile brands have promoted the continuous development and growth of China's automobile
export scale.
(The above data/information is collected from “China Automotive Industry Production and Sales Express” published by China
Association of Automobile Manufacturers and its industry information release)
3. Enterprise market performance
In the first half of 2023, in the context of complex and severe internal and external situations, Changan adheres to the guidance of
Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, further promotes the Third Business Venture —
Innovation & Entrepreneurship Program, and firmly transform into an intelligent low-carbon mobility technology company. In the face
of changes in the market competition environment exceeding expectations, Changan actively and decisively took effective measures
to cope with the impact of market changes on the production and operation of the enterprise, and maintained the overall stability of the
production and operation of the enterprise. In the first half of 2023, the sales volume reached 1.216 million units, had an 8.0% year-
over-year growth, and the group's sales volume ranked fourth in the industry, one place higher than that of the same period last year.
Among them, exported 116,218 units overseas; self-owned brand of new energy vehicles sold 176,057 units, had a 107.2% year-over-
year growth, better than the industry growth rate of 63.1 percentage points.
During the reporting period, Changan Automobile focused on the Third Business Venture — Innovation & Entrepreneurship
Program, and paid close attention to the implementation of the strategy, and released the overseas strategy Vast Ocean Plan, making it
clear that the overseas market would realize the development goal of “Four Ones” by 2030. By establishing the Southeast Asia Division
and the European regional headquarters, overseas development will get into a new era. Faced with the challenges of subsidy withdrawal,
insufficient demand, and unexpected market fluctuations, we made every effort to increase the stock and seize the incremental volume,
and took the initiative to formulate and implement the “Ten Billion Yuan Benefits for Vehicle Purchase” and “Equal Price for ICE and
EV”, which effectively responded to the impact of competitors’ price drop on the market segments where Changan Automobile’s
products are located, and the Company’s sales volume and market share have been significantly increased. Terminal retail data showed
that in the first half of 2023, Changan’s passenger brand (ICE) sales ranked first among China’s homegrown brands. CS75 series sales
ranked first in the compact SUV segment. The sales of EADO PLUS remained first among China’s homegrown branded compact sedan
(ICE) for three consecutive months, and sales of DEEPAL SL03 ranked second among new energy medium-sized sedan, and the market
actions have achieved certain results. The Company strengthened technology leadership and unswervingly promoted core technology
research and development for product development acceleration. In the first half of year, the UNI-V iDD, the third generation of CS75
PLUS, Lamore, DEEPAL S7, Ford Edge L, the new generation of the Lincoln Nautilus, Mazda CX-50 and other new or updated
products were launched. Product innovations have yielded fruitful results. Adhering to the user-centered, product-oriented philosophy,
Changan vigorously promoted the new marketing and sales transformation and achieved the direct data connection management of
thousands of stores of Changan Passenger Vehicles, Lumin, and Kaicheng, and the new marketing and sales network model landed in
an orderly manner.
II. Core Competence Analysis
1. Science and technology R&D capability. The company adheres to innovation-driven development and promotes the
implementation of technological development plan at full speed. Driven by sci-tech innovation and ecosystem building and led by a
user-centric approach, Changan strengthens investment in science and technology innovation and delivers first-in-the-industry
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
technologies. New breakthroughs have been made in product development and technological innovation. In the intelligent field,
Changan continues to build intelligence core capabilities of “chips, control units, mapping, components, cloud, network and
algorithms”. The development of the main functions of the SDA-S platform have been completed. UNI-V won Smart Star of 2022 at
International Automotive Test and Assessment Summit. In the field of NEV technologies, the trial production of semi-solid batteries
has been completed, and the batteries have been tested on prototypes. Changan’s second-generation hydrogen FCEVs ran successfully.
The Force ultra-integrated e-drive won the 2nd World Top10 Electric Drive System and “China Heart” 2022 top 10 NEV power system.
As of June 2023, the company owns 9,869 patents globally including 2,658 invention patents.
2. Product definition. With the philosophy of “being user-centric, innovation-driven and building world-class product definition
capabilities”, the company aims to build an industry-leading product definition system to make the process more efficient, more
accurate and more competitive. Changan improves product definition capability, defines use scenarios with an experience-driven EMD
scenario definition approach. Also, the company keeps building a Software as a Service platform which is unified, upgradable and
profitable. The company’s key products are well-received in the market. The CS75 series, UNI-V, Eado series, Deepal SL03 and S7
are selling well. The company will continue to be user-centric, focus on core use cases, and improve Deepal, Avatr and Changan Qiyuan,
product lineup to speed up electrification.
3. Brand power. The company keeps strengthening brand value management and innovative brand promotion, refreshing brand
structure and strategy, and improving brand customer satisfaction. In terms of brand value management, Changan builds the brand
structure with the goal of “a larger scale, higher value and fresher image”. The company launched the overseas business strategy Vast
Ocean Plan to build Changan Auto’s international brand image. Deepal Automobile was recognized as the 2023 China Media Group
Brand Power Project and was awarded the “Leading Homegrown NEV Brand”, which greatly enhanced the customer perception of
Deepal’s NEV products. In terms of brand promotion, in the first half of 2023, the company launched four models including Deepal’s
first SUV product S7, and the third-generation CS75PLUS, with a total of more than 1 billion brand reaches cumulatively. This year
marks the tenth anniversary of the Belt and Road Initiative, the company cooperated with Xinhua News Agency's "Along the Belt and
Road" program to promote the implementation of Changan's overseas strategic plan and enhance the brand's international influence. In
addition, the company won the first place among Chinese homegrown brands in J.D. Power’s 2023 Sales Satisfaction Index.
4. Intelligent manufacturing. With the intelligent manufacturing strategy of “Cloud, Network, Platform and Scenarios”, the
company is exploring the digital transformation in all use cases in new plants. Based on IIOT platform, Changan adopts unified
platforms and technologies to build IoT platforms, data mid-end, and business mid-end to improve the capability of business iteration.
With the production capability of electric drive, ECUs and batteries, Changan has completed an initial layout of the production capacity
of NEV components. The new plant in Nanjing and Chongqing Yubei have applied technologies including 5G, digital twin and AI
machine vision and built more than 40 intelligent manufacturing scenarios to build 5G+ plants with intelligent and green manufacturing
capabilities.
5. Leading culture. Changan continues to build a leading company culture with various measures to promote the entrepreneurial
culture inside the company. Education campaigns and investigation and research have been carried out in a solid manner to solve
development problems. The company organized a speech contest on the theme of leading culture and “oral history” interviews to create
a number of high-quality cultural promotion programs, which were included in the 2023 Changan Automobile Leading Culture Story
Annual. Changan cares for employees and promotes employee mental health services, and updates Employee Health Care Program 2.0
to enhance employees' sense of gain and happiness. We shoulder corporate social responsibilities, continue to engage in rural
revitalization and poverty alleviation and promote the targeted assistance programs in Luxi and Yanshan counties in Yunnan and
Youyang in Chongqing. Changan has offered RMB 10.6 million of assistance funds for the two counties in Yunnan.
6. Mechanism and efficiency. The company continues to build a strong talent team and actively restructures organization to
stimulate talent vitality. In terms of talent building, the company continues to attract top talent globally in design, global marketing,
NEV technologies, software, etc. Also, Changan keeps nurturing talent in operational management strategy to optimize human
resources. In terms of incentives, we optimize the company’s incentive plan, adopt restricted stock and improve the program co-
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
investment to further stimulate the vitality of the organization. In terms of efficiency enhancement, the company has accelerated digital
transformation, improved top-level planning, carried out in-depth digital transformation training and promoted digital transformation
in all business units.
III. Analysis of Main Business
Overview
Whether it is the same as the company’s main business disclosure during the reporting period
√ Yes □ No
Please refer to the relevant content of "I. The main business of the Company in the reporting period" in chapter 3 of this report.
Y-o-y changes in key financial data
Unit: RMB
The reporting period The same period of last year YoY change (%) Reasons for changes
Operating revenue 65,492,098,869.01 56,573,568,393.71 15.76%
Operating cost 54,001,999,268.58 45,360,090,482.20 19.05%
Mainly due to the acquisition
of Deepal Auto, its sales
Sales expense 3,068,434,621.37 2,285,329,821.77 34.27%
expenses were included in the
merger and increased
General and administrative
2,271,960,408.55 2,184,034,305.10 4.03%
expenses
Mainly due to an increase in
R&D expenses 2,964,604,104.48 1,932,294,144.67 53.42% research and development
investment
Financial expenses -453,268,104.89 -437,998,348.99 -3.49%
Mainly due to an increase in
Impairment loss -397,274,160.99 -241,827,585.46 -64.28% impairment of contract assets
and intangible assets
Mainly due to the merger and
acquisition of Deepal Auto,
Investment income 5,023,108,819.32 2,354,040,073.27 113.38% which resulted in the original
equity being remeasured at
fair value
Mainly due to the disposal of
Asset disposal income 366,667,730.28 68,244,082.28 437.29% Tea Garden Factory Three in
this period
Mainly due to an increase in
Other income 657,988,649.18 186,910,289.65 252.03% government subsidies
received in the current period
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Income tax expense 176,620,825.19 -103,280,125.74 271.01%
Mainly due to the year-on-
Subtotal of cash inflow from
6,955,456,713.59 5,852,236,420.20 18.85% year increase in due receipts
operating activities
of bills
Mainly due to the fact that the
balance of cash and cash
equivalents of Deepal auto on
Subtotal of cash inflow from
5,259,673,991.67 -2,383,212,310.03 320.70% the purchase date exceeds the
investment activities
cash offer of the company to
purchase its equity, which is
included in the project
Mainly due to the fact that the
equity distribution in 2022
Net cash flow from financing has not been paid in the
-566,158,268.81 -2,013,951,932.20 71.89%
activities current period and the equity
distribution in the same
period has been paid
Mainly due to the acquisition
Net increase in cash and cash of Deepal Auto and the year-
11,662,231,001.80 1,514,350,653.16 670.11%
equivalents on-year increase in bill
maturity
Major changes on profit composition or profit resources in reporting period
√ Applicable □ Not applicable
During the reporting period, the company's profit was greatly affected by non-recurring gains and losses. For details, please refer to
"VI. Items and Amounts of Non-Recurring Gains and Losses " in Chapter 2 of this report.
Composition of the operating revenue
The reporting period The same period of last year
YoY
Proportion of Proportion of
increase/decrease
Amount (RMB) operating revenue Amount (RMB) operating revenue
(%)
（%） (%)
Operating revenue 65,492,098,869.01 100% 56,573,568,393.71 100% 15.76%
By industry
Automotive business 65,492,098,869.01 100% 56,573,568,393.71 100% 15.76%
By product
Vehicles 61,803,014,700.65 94.37% 53,462,409,290.12 94.50% 15.60%
Services and
3,689,084,168.36 5.63% 3,111,159,103.59 5.50% 18.58%
others
By region
China 57,602,185,093.44 87.95% 49,995,769,261.71 88.37% 15.21%
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Overseas 7,889,913,775.57 12.05% 6,577,799,132.00 11.63% 19.95%
The business, products and regions accounting for over 10% of the Company’s operating revenue or
operating profit
√ Applicable □ Not applicable
YoY YoY YoY
Operating Operating Cost Gross margin increase/decrease increase/decrease increase/decrease
Revenue (RMB) (RMB) (%) of operating of operating cost of gross margin
income (%) (%) (%)
By business
Automotive
65,492,098,869.01 54,001,999,268.58 17.54% 15.76% 19.05% -2.28%
business
By product
Vehicles 61,803,014,700.65 50,899,747,867.52 17.64% 15.60% 18.56% -2.06%
By region
China 57,602,185,093.44 46,823,857,913.11 18.71% 15.21% 19.84% -3.14%
Overseas 7,889,913,775.57 7,178,141,355.47 9.02% 19.95% 14.14% 4.62%
Where the statistical caliber of the main business data of the Company is adjusted, the data is subject to the main business data
after adjustment according to the caliber of the end of the report period in the latest year.
□ Applicable √ Not applicable
IV. Analysis of Non-Main Business
√ Applicable □ Not applicable
Amount (RMB) Proportion of profits (%) Explanation Whether it is sustainable or not
Except for the income of 5.021
Please refer to the Item 54, billion yuan generated by the
Note 7 “Investment company's merger of enterprises
Investment income 5,023,108,819.32 70.32%
income ” in the In Chapter not under the same control as
10 of this report. Deepal Auto, other sustainable
assets
Profits or losses of fair
-23,334,661.15 -0.33% No
value change
Please refer to the Item 57,
Impairment losses on Note 7 “Impairment losses
-397,274,160.99 -5.56% No
assets on assets” in the In Chapter
10 of this report.
Non-operating income 93,295,575.81 1.31% No
13
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Non-operating expenses 13,498,961.02 0.19% No
V. Analysis of Assets and Liabilities
1. Major Changes in Asset Composition
30 June 2023 31 December 2022 Increase/D
Proportio Proportion ecrease in
Description of significant changes
Amount (RMB) n of total Amount (RMB) of total Proportion
assets (%) assets (%) (%)
Monetary fund 65,985,946,564.21 37.71% 53,530,183,827.34 36.65% 1.06%
Receivables 2,477,017,799.35 1.42% 3,068,414,415.29 2.10% -0.68%
Mainly due to the acquisition of
Deepal Auto, the receivable new
energy subsidies have been
Contract assets 2,227,324,510.17 1.27% 458,389,187.10 0.31% 0.96%
included in the consolidated
financial statements, resulting in
an increase
Mainly due to the increase in
exported cars and the acquisition
Inventories 10,252,940,583.44 5.86% 5,823,307,512.90 3.99% 1.87%
of Deepal Motors, which included
their inventory in the merger
Investment
6,309,359.26 0.00% 6,422,715.04 0.00% 0.00%
property
Long-term equity
13,788,910,316.27 7.88% 14,406,662,456.28 9.86% -1.98%
investment
Fixed assets 18,869,352,705.47 10.78% 19,346,764,691.44 13.25% -2.47%
Mainly due to the acquisition of
Deepal Auto, the inclusion of its
Construction in ongoing construction projects in
2,225,500,468.09 1.27% 1,387,898,218.64 0.95% 0.32%
progress the merger, and an increase in the
company's replacement and
upgrading projects
Right-of-use
186,760,454.06 0.11% 100,813,386.01 0.07% 0.04%
assets
Mainly due to the acquisition of
Intangible assets 15,068,479,509.60 8.61% 4,446,385,255.68 3.04% 5.57% Deepal Auto and the increase in
intangible assets
Development Mainly due to the acquisition of
1,393,772,255.65 0.80% 723,211,177.47 0.50% 0.30%
expenditure Deepal Auto, its development
14
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
expenses have been included in the
consolidated financial statements
and increased
Goodwill mainly formed due to the
Goodwill 1,809,337,918.87 1.03% 9,804,394.00 0.01% 1.02%
acquisition of Deepal Auto
Short-term loans 50,000,000.00 0.03% 29,000,000.00 0.02% 0.01%
Mainly due to the merger and
acquisition of Deepal Auto, the
Notes payable 33,712,072,409.02 19.26% 22,072,793,864.83 15.11% 4.15%
increase in notes payable was
included in the merger
Contract liabilities 7,116,078,624.58 4.07% 5,655,256,792.66 3.87% 0.20%
Mainly due to the increase in the
balance of short-term
Payable employee compensation payable and the
4,002,974,882.87 2.29% 2,807,158,489.85 1.92% 0.37%
compensation merger of Deepal Auto, which
included employee compensation
payable in the merger
Mainly due to provision for equity
Other payables 8,462,527,432.79 4.84% 6,082,766,424.67 4.16% 0.68%
distribution in 2022
Long-term loans 76,000,000.00 0.04% 36,000,000.00 0.02% 0.02%
Lease liabilities 120,870,028.21 0.07% 60,205,397.98 0.04% 0.03%
Temporary taxable differences
Deferred Tax
1,641,744,451.94 0.94% 237,036,741.16 0.16% 0.78% mainly arising from the acquisition
Liability
of Deepal Auto
Minority shareholders' equity
Minority
mainly arising from the non
shareholders' 3,979,214,485.66 2.27% 90,698,855.79 0.06% 2.21%
wholly-owned acquisition of
equity
Deepal Auto
2. Major overseas assets
□ applicable √ not applicable
3. Assets and liabilities measured at fair value
√ Applicable □ Not applicable
Unit: RMB
Accumulated Provision Amount
Changes in Fair Amount of
Opening Fair Value for of
Item Value Gains and Sales in Other Changes Closing Balance
Balance Changes Impairment Purchas
Losses in Current Period
Included in in Current e in
15
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Current Period Equity Period Current
Period
Financial assets
1.Financial assets held
for trading (excluding
280,315,571.09 14,575,284.30 21,823,463.97 10,827,945.05 262,239,446.37
derivative financial
assets)
2.Investments in other
489,950,000.00 489,950,000.00
equity instruments
Subtotal financial
770,265,571.09 14,575,284.30 21,823,463.97 10,827,945.05 752,189,446.37
assets
Total 770,265,571.09 14,575,284.30 21,823,463.97 10,827,945.05 752,189,446.37
Financial liabilities - -37,909,945.45 - 96,425.05 37,813,520.40
Note: The trading financial assets and investments in other equity instruments in the table above are detailed in “2. Trading Financial
Assets” and “12. Investments in Other Equity Instruments” in Note 7 of the Financial Statements.
Whether there are major changes on measurement attributes for main assets of the Company in reporting period
□ Yes √ No
4. Property rights limits by the end of report period
Unit: RMB
Item Book Value at the End of This Year Limited Reason
Monetary fund 1,832,280,514.67 Deposit of acceptance bill
Notes receivable 6,379,455,146.47 Pledge for issuing bills payable
Intangible assets 28,900,540.24 Processing release procedures
Fixed assets 16,614,436.08 Processing release procedures
Total 8,257,250,637.46
VI. Analysis of Investment
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 102,000,000.00 1,860,368,900.00 -94.52%
Fixed assets 12,498,803.34 52,569,218.29 -76.22%
Construction in progress 1,542,862,623.35 787,512,886.09 95.92%
16
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Intangible assets 17,122,312.97 95,564,437.69 -82.08%
Total 1,674,483,739.66 2,796,015,442.07 -40.11%
2. The major equity investment obtained in reporting period
□ Applicable √ Not applicable
3. The ongoing major non-equity investment in reporting period
□ Applicable √ Not applicable
4. Investment of Financial Assets
(1) Security investments
√ Applicable □ Not applicable
Accumulate Purchase
Gains and losses Sales amount Gains and
Accounting Book value at the d fair value amount Book value at the
from changes in during the losses of the Source
Security Stock Abbreviatio Initial investment measurement beginning of the changes during the end of the Accounting
fair value during reporting reporting of
type code n cost（RMB） model reporting period included in reporting reporting period subject
the period period period funds
（RMB） equity period （RMB）
（RMB） （RMB） （RMB）
（RMB） （RMB）
Self-
CPG Fair value Trading
Stock 301215 98,999,997.80 125,052,628.80 38,297,367.57 0.00 0.00 0.00 39,704,209.64 163,349,996.37 owned
Securities measurement financial assets
funds
Self-
Southwest Fair value Trading
Stock 600369 50,000,000.00 126,112,500.00 -5,399,586.03 0.00 0.00 21,823,463.97 -5,399,586.03 98,889,450.00 owned
Securities measurement financial assets
funds
Total 148,999,997.80 -- 251,165,128.80 32,897,781.54 0.00 0.00 21,823,463.97 34,304,623.61 262,239,446.37 -- --
(2) Derivative investments
√ Applicable □ Not applicable
（1） Derivative investments for hedging purposes during the reporting period
√ Applicable □ Not applicable
Unit: 10,000 RMB
Investment
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 85,419 -5,623 0 153,162 70,291 168,290 2.48%
Total 85,419 -5,623 0 153,162 70,291 168,290 2.48%
17
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
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
During the reporting period, 702.91 million yuan was sold, and the actual profit and loss amount was 10.73 million yuan.
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
liabilities, and matches the actual foreign exchange receipts and expenditures to ensure that there are sufficient funds for
liquidation at the time of delivery, so as to reduce the cash flow demand on the maturity date.
3. Default risk: Due to inaccurate forecasts, the delivery date signed by the forward exchange transaction is inconsistent
with the actual delivery period, resulting in the delayed delivery risk caused by the failure of the forward exchange
transaction to be delivered at the agreed time.
Risk analysis and control measures for 4. Operational risk: Forward exchange transactions are complex, which may cause risks due to imperfect internal control
derivatives investment during the and unprofessional operators.
reporting period (including but not 5. Legal risks: If the terms of the transaction contract are not clear, the Company may face legal risks.
limited to market risk, liquidity risk, Risk control measures
credit risk, operational risk, legal risk,
1. The Company and its subsidiaries will pay attention to the changes in the exchange rate market, strengthen the study
etc.)
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 management principles, management systems, operational processes, risk control, etc., and
the operation must be handled in strict accordance with the requirements of the measurements.
Changes in market price or fair value
The Company’s measurement of Financial Instruments follows the “Accounting Standard for Business Enterprises
of invested derivatives during the
Article 22 - Recognition and Measurement of Financial Instruments”, and the fair value is basically measured and
reporting period (the specific methods,
recognized with reference to bank pricing. During the reporting period, the loss on the change in fair value of forward
relevant assumptions and parameters
exchange contracts was RMB 56.23 million.
used in the analysis of the fair value
18
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
should be disclosed)
Whether it is involved in a lawsuit Not applicable
Disclosure date of derivatives
investment approval board May 16, 2023
announcement
Disclosure date of derivatives
investment approval shareholders June 29, 2023
meeting announcement
The foreign exchange hedging business carried out by the company and its subsidiaries is based on normal production
and operation, with the principle of stability, with the purpose of currency hedging and avoiding exchange rate risks. By
locking in exchange rates to reduce exchange rate fluctuation risks, it will not affect the normal development of the main
Opinions of independent directors on
business. The company has formulated the "Management Measures for Forward Foreign Exchange Trading Business
the Company’s derivatives investment
(Trial)" and improved relevant internal control processes. The targeted risk control measures taken by the company are
and risk control
feasible, and there are no situations that harm the interests of the company, shareholders, especially small and medium-
sized shareholders. The review process of this proposal complies with relevant laws and regulations as well as the
provisions of the Company’s relevant rules.
（2） Derivative investment for the purpose of speculation during the reporting period
□ Applicable √ Not applicable
During the reporting period, there was no derivative investment for the purpose of speculation.
5. Use of raised funds
√ Applicable □ Not applicable
(1) Overall use of raised funds
√ Applicable □ Not applicable
Unit: 10,000 RMB
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
raised funds 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 61,735.01 530,995.08 0 160,545.86 26.58% 72,934.38 0
account for
shares
raised funds
Total -- 603,929.76 61,735.01 530,995.08 0 160,545.86 26.58% 72,934.38 -- 0
Description of the overall use of raised funds
19
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
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, In the half year of 2023, RMB 617.35 million of raised funds were used. As of June 30, 2023, the Company has
used a total of RMB 5,309.95 million of the raised funds.
(2) Use of the raised funds in committed projects
√ Applicable □ Not applicable
Unit: 10,000 RMB
Cumulative Investment Whether the Whether the
Whether Total Adjusted Whether it
Committed projects and Amount investment progress as of project has Benefits feasibility of
the project committed total meets the
placement of extra funds invested amount as of the end of the reached the realized this the project has
has been investment of investment expected
raised this year the end of the period% (3) = intended year changed
changed raised funds (1) return
period (2) (2)/(1) usable state significantly
Committed projects
H series fifth phase, NE1
series first phase engine Not
Yes 141,568.38 103,313.68 865.59 101,696.60 98.43% Yes 159,608.00 No
production capacity applicable
construction project
Crash Laboratory Capacity Not Not
Yes 11,505.75 8,251.85 300.61 8,342.63 101.10% Yes No
Upgrade Project applicable applicable
CD569 production line Not
Yes 15,576.22 9,418.59 183.36 9,616.63 102.10% Yes 2,284.00 No
construction project applicable
Hefei Changan Automobile
Not
Co., Ltd. adjustment and Yes 249,958.06 142,399.78 343.51 133,552.26 93.79% Yes 49,098.00 No
applicable
upgrade project
Supplementary working Not Not
No 180,000.00 180,000.00 - 180,000.00 100.00% No No
capital applicable applicable
A new generation of
energy-saving products Not Not
No - 160,545.86 60,041.94 97,786.96 60.91% No No
transformation and applicable applicable
upgrading projects
Total 598,608.41 603,929.76 61,735.01 530,995.08 87.92% - - - -
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
20
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Change in implementation
location of the committed N/A
projects
Adjustment to
implementation method of N/A
committed project
On November 18, 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
The company originally planned to invest in four fundraising projects, including the H series phase five, the NE1 series phase I engine
production capacity construction project, the collision test room capacity upgrade construction project, the CD569 production line
construction project, and the adjustment and upgrading project of Hefei Changan Automobile Co., Ltd. Compared with the planning, there
is some unused founds, mainly because the company has reduced the actual investment amount by means of localized substitution of
Amount and cause of imported equipment in the process of project implementation in order to reduce the impact of the overseas epidemic on the project
surplus of funds raised for construction cycle. In the process of project construction, the scheme has been continuously optimized, and the lean investment process
project implementation management has realized the control of the investment scale. According to the company's long-term strategic planning and development
needs at the current stage, after comprehensive research and judgment by the company, in order to further improve the use efficiency of
raised funds, the company plans to adjust the investment scale of the original raised funds investment projects, and use the estimated
surplus funds of RMB 1,605,458,600 for the company's new generation of energy conservation Product transformation and upgrading
project.
The purpose and placement
Deposited in a dedicated account by the Company for raised funds
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 Actual
The amount The date when
amount of cumulative Investment Benefits Significant
actually the project Whether the
funds to be investment progress as of achieved changes in the
The commitment of invested reached the expected
Changed project invested in amount as the end of the during the feasibility of the
the original project during the intended benefits have
the project of the end period (%) reporting project after the
reporting availability been achieved
after the of the (3)=(2)/(1) period change
period status
change (1) period (2)
21
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
1. H series fifth phas
e, NE1 series first ph
ase engine productio
n capacity constructi
A new on project
generation of 2. Crash Laboratory
energy-saving Capacity Upgrade C
In the year of Not
products onstruction Project 160,545.86 60,041.94 97,786.96 60.91% Not applicable No
2023 applicable
transformation 3. CD569 production
and upgrading line construction pr
projects oject
4. Hefei Changan Au
tomobile Co., Ltd. a
djustment and upgra
de project
合计 -- 160,545.86 60,041.94 97,786.96 -- -- -- -- --
1. There was a balance of the original project investment funds compared to upfront planning. The main reason
is that in order to reduce the impact of the overseas epidemic on the project construction cycle, 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
Reasons for change, decision-making procedures the current development needs, after the company’s comprehensive research. In order to further improve the
and information disclosure (by specific project) 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.
2. Decision-making procedure: The Company held the 38th meeting of the 8th Board of Directors on April 26,
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” (Announcement No.: 2022-23) on http://www.cninfo.com.cn.
Reasons for failure to meet the planned schedule or
Not applicable
projected benefits (by project)
Description of significant changes in the feasibility
Not applicable
of the project after the change
VII. Sale of significant Assets and Equity
1. Sale of significant assets
□ Applicable √ Not applicable
22
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
2. Sale of significant equity
□ Applicable √ Not applicable
VIII. Analysis of Major Shareholding and Joint Stock Companies
√ Applicable □ Not applicable
Major subsidiaries and joint stock companies that affect the company’s net profit by more than 10%
Unit: 10,000 RMB
Main Registered Total Operating Operating Net
Name Type Net assets
businesses capital assets revenue profit profit
Joint Stock Produce and sell
Changan Ford Automobile Co., Ltd. 24,100USD 3,157,448 233,516 2,176,063 139,605 79,923
Company auto and parts
Avatr Technology (Chongqing) Joint Stock Produce and sell
164,466 857,468 102,639 224,465 -175,643 -175,646
Co. Ltd. Company auto and parts
Deepal Automobile Technology Produce and sell
Subsidiary 32,811 1,759,834 -3,805 882,840 -105,900 -105,852
Co., Ltd. auto and parts
Subsidiaries acquired and sold in the reporting period
√ Applicable □ Not applicable
During the reporting period, Changan Automobile acquired the equity of Deepal Automobile Technology Co., Ltd. from
Chongqing Changxin Equity Investment Fund Partnership (Limited Partnership) and Chongqing Liangjiang New Area Chengcheng
Equity Investment Fund Partnership (Limited Partnership), with a shareholding ratio of 51.00%. It was transferred from a joint venture
to a subsidiary for accounting and included in the consolidation scope.
Acquisition and disposal of subsidiaries Impact on overall production,
Name
during the reporting period operation and performance
Business combinations not under common
Deepal Automobile Technology Co., Ltd. Significant impact
control
Description of major holding and participating companies
Avatr Technology (Chongqing) Co., Ltd., due to the initial introduction of the first high-end product in 2023 and the impact of
industry price wars, sales did not meet expectations, and it is still in the strategic investment period, with significant resource investment,
resulting in increased year-on-year losses in profits. Changan Ford Automobile Co., Ltd. was affected by the contraction of the ICE
market and the lower-than-expected development of new energy vehicles, resulting in a year-on-year decrease in sales and a decrease
in net profit.
IX. Structural main business under the company control
□ Applicable √ Not applicable
X. Possible risks and corresponding measures
At present, the foundation of domestic economy is not stable yet with weak demand. The consumer confidence is yet to be boosted,
23
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
especially in major purchases. The recovery of the automobile market still faces pressure.
As for international landscape, the great power and industrial chain competition has intensified with geopolitical conflicts and
frictions, leading to higher risks of local decoupling of the industrial chain and disturbance in the global automotive supply chain.
In terms of overseas markets, inflation in advanced economies remains high, the monetary tightening cycle is still ongoing, and
economic downside risks remain, which may lead to volatility in overseas automobile markets. On the other hand, changes in the
monetary policy of major economies increase the risk of fluctuations in RMB exchange rate, which may lead to foreign exchange
losses in product exports.
Under the Third Business Venture — Innovation & Entrepreneurship Program, Changan is committed to promoting the building
of a new shared community of business and supply ecosystem to integrate the entire industrial chain and reduce supply chain risks. In
overseas markets, we will accelerate the Vast Ocean Plan to build a new international image and enhance competitiveness through the
comprehensive upgrading of brand power, product power, service level and corporate image.
XI. Reception Research, Communication, Interviews and Other Activities during the Reporting
Period
Type of
Date Reception place Research Type Research Index
Object
For details, see the February 2nd, 2023 Shenzhen stock
exchange interactive (http://irm.cninfo.com.cn) on the
On February 1st, 2023 Chongqing Field research Institution
Changan Automobile: February 1st, 2023 investor
relations activities record sheet
For details, see the March 7th, 2023 Shenzhen stock
exchange interactive (http://irm.cninfo.com.cn) on the
On March 3rd, 2023 Chongqing Field research Institution
Changan Automobile: March 3rd, 2023 investor
relations activities record sheet
For details, see the March 20th, 2023 Shenzhen stock
exchange interactive (http://irm.cninfo.com.cn) on the
On March 16th, 2023 Chongqing Field research Institution
Changan Automobile: March 16th, 2023 investor
relations activities record sheet
For details, see the May 10th, 2023 Shenzhen stock
“Panorama Road exchange interactive (http://irm.cninfo.com.cn) on the
On May 8th, 2023 Oneline All investors
Show World” webcast Changan Automobile: May 8th, 2023 investor relations
activities record sheet
For details, see the May 16th, 2023 Shenzhen stock
exchange interactive (http://irm.cninfo.com.cn) on the
On May 12th, 2023 Chongqing Field research Institution
Changan Automobile: May 12th, 2023 investor
relations activities record sheet
For details, see the May 19th, 2023 Shenzhen stock
exchange interactive (http://irm.cninfo.com.cn) on the
On May 17th, 2023 Chongqing Field research Institution
Changan Automobile: May 17th, 2023 investor
relations activities record sheet
24
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
For details, see the June 1st, 2023 Shenzhen stock
exchange interactive (http://irm.cninfo.com.cn) on the
On May 30th, 2023 Chongqing Field research Institution
Changan Automobile: May 30th, 2023 investor
relations activities record sheet
For details, see the June 17th, 2023 Shenzhen stock
exchange interactive (http://irm.cninfo.com.cn) on the
On June 14th, 2023 Chongqing Field research Institution
Changan Automobile: June 14th, 2023 investor
relations activities record sheet
For details, see the June 29th, 2023 Shenzhen stock
exchange interactive (http://irm.cninfo.com.cn) on the
On June 28th, 2023 Chongqing Field research Institution
Changan Automobile: June 28th, 2023 investor
relations activities record sheet
For details, see the June 29th, 2023 Shenzhen stock
exchange interactive (http://irm.cninfo.com.cn) on the
On June 29th, 2023 Chongqing Field research Institution
Changan Automobile: June 29th, 2023 investor
relations activities record sheet
25
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Chapter 4 Corporate Governance
I. 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 Meeting Decision
Ratio
2022 Annual http//www.cninfo.com.cn
Shareholders Annual 50.620% June 28th, 2023 June 29th, 2023 2022 Annual Shareholders Meeting Resolution
Meeting Announcement (Announcement Number: 2023-36)
2. The shareholders of preferred shares with voting right restored request to convene an extraordinary
general meeting
□ Applicable √ Non-applicable
II. Departure and Hiring information of the directors, supervisors and senior manager
√ Available □ Not-available
Name Position Type Date Reason
Zhang Fatao Vice President Appointed January 5th, 2023 Appointment
Secretary of Discipline
Inspection Commission
Pu Xingchuan Appointed March 3rd, 2023 Appointment
(Senior Management
Personnel)
Jia Lishan Director Elected July 27th, 2023 Appointment
Zhao Fei Director Elected July 27th, 2023 Appointment
Chairman of the
Wen Hong Supervisory Board, Elected July 27th, 2023 Appointment
Supervisor
Secretary of Discipline
Inspection Commission Dismissal from
Hua Zhanbiao March 3rd, 2023 Job change
(Senior Management Employment
Personnel)
Zhou Kaiquan Director Outgoing May 30th, 2023 Job change
Lian Jian Chairman of the Outgoing May 31st, 2023 Retirement
26
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Supervisory Board,
Supervisor
Xian Zhigang Director Outgoing July 27th, 2023 General election
Liu Gang Director Outgoing July 27th, 2023 General election
Leave office upon
Ren Xiaochang Independent Director July 27th, 2023 Leaving office after 6 years of tenure
expiration of term
Leave office upon
Wei Xinjiang Independent Director July 27th, 2023 Leaving office after 6 years of tenure
expiration of term
III. Preplan for Company common stock profit distribution and capital reserves converting
into share capital in the reporting period
□ Applicable √ Non-applicable
The company plans not to distribute cash dividends, not to send bonus shares, not to increase equity by provident fund in the first half
of the year.
IV. 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.
27
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
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
release of restricted shares from listing and circulation was March 6th, 2023.
On June 20th, 2023, the Company completed the repurchase and cancellation of all 2.476 million restricted shares that had been
granted to the original 23 incentive objects but still had sales restrictions.
2. Implementation of employee stock ownership plans
□ Applicable √ Not applicable
3. Other employee incentives
□ Applicable √ Not applicable
28
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Chapter 5 Environment 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 the first half of 2023, there will be a total of 4 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
Hefei Changan Automobile Co., Approval Opinions on the Environmental
Hefei Ecology and
Ltd. A158 Series Pure Electric Impact Report of “Hefei Changan
Environment March 27th, 2023
Passenger Vehicle Production Line Automobile Co., Ltd. A158 Series Pure
Bureau
Technical Transformation Project Electric Passenger Vehicle Production Line
29
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Technical Transformation Project”
(HJS [2023] No. 10020)
Chongqing Construction Project Chongqing Ecology
Sino German Industrial Park Office Environmental Impact Assessment and Environment
March 3rd, 2023
R&D Base Reconstruction Project Document Approval Letter Bureau (Liangjiang
(YLJHZ [2023] No. 021) New Area Branch)
Chongqing Construction Project Chongqing Ecology
Yubei Factory Replacement and
Environmental Impact Assessment and Environment
Green Upgrade Construction May 6th, 2023
Document Approval Letter Bureau
Project
(YSHZ [2023] No. 025)
Technical Transformation Project Chongqing Construction Project Chongqing Ecology
of C318 Series New Energy Environmental Impact Assessment and Environment
June 26th, 2023
Passenger Vehicle Production Line Document Approval Letter Bureau (Liangjiang
at Liangjiang Three Factories (YLJHZ [2023] No. 065) New Area Branch)
——Information on administrative permission for pollutant discharge
In the first half of 2023, each base involved a total of 3 pollution discharge license documents, including 1 reapplications, 2
changes, and no 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 Two outlets 41.78 10.27 347.9 —
Integrated Wastewater Discharge
for
Ammonia
Standard（GB8978-1996); The
2.23 0.46 31.31 —
workshop
nitrogen
Intermittent Influent Water Quality
Wastewater 3 facilities,
Total nickel emissions 0.09 Requirements set by the Yubei 0.01 0.17 —
and one
Chongqing District Sewage Treatment Plant in
Total zinc 0.03 0.01 3.48 —
main outlet
Changan Chongqing
Phosphate for the Plant 0.49 0.04 0.70 —
Automobile
Co., Ltd. Sulfur
2.92 Emission Standard of Air Pollutants 0.82 16.95 —
Yubei Plant dioxide
for Surface Coating of
Outlets
Nitrogen Organized Automobile Manufacturing Industry
Exhaust gas 32 around the 46.49 6.27 75.40 —
oxides emissions （DB 50/577-2015);
Plant
Particulate Emission Standards of Air
0.16 0.29 94.33 —
matter Pollutants for Industrial Kiln and
30
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Volatile Furnace（DB 50/659-2016);
organic 0.85 Integrated Emission Standards of 1.02 221.21 —
compounds Air Pollutants（DB 50/418-2016);
Emission Standards of Air
Toluene +
Pollutants for Boiler（DB 50/658-
0.07 0.08 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 2023 with a total of 1,094.97 tons of hazardous waste generated in this period. The 1,094.97 tons have been legally utilized
Soil —
and disposed of by manufacturers with hazardous waste operation permits, produced 11,641.34 tons of general industrial solid waste and
11,271.09 tons of utilization and disposal.
COD An outlet for 107 Integrated Wastewater Discharge 4.12 14.02 —
workshop Standard（GB8978-1996); The
Ammonia
4.35 0.41 1.40 —
Intermittent facilities, Influent Water Quality
Wastewater nitrogen 2
emissions and one Requirements set by Guoyuangang
Total nickel 0.08 0 0.04 —
main outlet Sewage Treatment Plant in
Total zinc for the Plant 0 Chongqing 0.08 0.28 —
Sulfur Emission standard of Air Pollutants
0 0 1.23 —
Chongqing dioxide for Surface Coating of
Changan Automobile Manufacturing Industry
Nitrogen
0.16 0 18.23 —
Automobile
oxides （DB 50/577-2015);
Co., Ltd. Emission Standards of Air
Particulate Outlets
(Liangjiang Organized 0.17 Pollutants for Industrial Kiln and 3.16 36.14 —
Exhaust gas matter 31 around the
Plant, emissions Furnace（DB 50/659-2016);
Plant
Volatile
Campus No. Integrated Emission Standards of
organic 0.19 5.23 63.06 —
1) Air Pollutants（DB 50/418-2016);
compounds
Emission Standards of Air
Toluene + Pollutants for Boiler（DB 50/658-
0.01 0.17 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 2023 with a total of 506.73 tons of hazardous waste in this period. A total of 509.90 tons were legally utilized and
Soil —
disposed of by manufacturers with hazardous waste operation permits, produced 4,386.17 tons of general industrial solid waste and 4,227.98
tons of utilization and disposal.
COD An outlet for 66.56 Integrated Wastewater Discharge 20.91 46 —
workshop Standard（GB8978-1996); The
Chongqing Ammonia
1.98 0.58 4.6 —
Intermittent facilities, Influent Water Quality
Changan Wastewater nitrogen 2
emissions and one Requirements set by the
Automobile
Total nickel 0.07 0 0.14 —
main outlet Guoyuangang Sewage Treatment
Co., Ltd.
Total zinc for the Plant 0.03 Plant in Chongqing 0.01 1.38 —
(Liangjiang
Plant, Sulfur Emission standard of Air Pollutants
Outlets 0.91 0.06 4.12 —
Campus No. dioxide Organized for Surface Coating of
Exhaust gas 50 around the
2) emissions
Nitrogen Automobile Manufacturing Industry
Plant 86.7 15.32 34.72 —
oxides （DB 50/577-2015);
31
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Particulate Emission Standards of Air
7.23 14.19 50.61 —
matter Pollutants for Industrial Kiln and
Furnace（DB 50/659-2016);
Volatile
Integrated Emission Standards of
organic 6.67 18.88 543.23 —
Air Pollutants（DB 50/418-2016);
compounds
Emission Standards of Air
Toluene + Pollutants for Boiler（DB 50/658-
0.69 0.40 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 2023
Soil with a total of 2,005.66 tons of hazardous waste. The 2,033.62 tons were legally utilized and disposed of by manufacturers with hazardous —
waste operation permits, produced 16,699.71 tons of general industrial solid waste and 16,699.71 tons of utilization and disposal.
COD An outlet for 72.3 Integrated Wastewater Discharge 13.92 45 —
workshop Standard（GB8978-1996); The
Total nickel 0.11 0.01 0.1 —
Intermittent facilities, Influent Water Quality
Wastewater 2
Ammonia
emissions and one Requirements set by the
2.38 0.65 4.5 —
nitrogen
main outlet Guoyuangang Sewage Treatment
Total zinc for the Plant 0 Plant in Chongqing 0.02 0.81 —
Particulate Emission standard of Air Pollutants
Chongqing 9.8 5.15 64.24 —
matter for Surface Coating of
Changan
VOCs 7.2 Automobile Manufacturing Industry 3.59 244.36 —
Automobile
（DB 50/577-2015);
Co., Ltd. SO2 0 0 5.34 —
Emission Standards of Air
(Liangjiang Outlets
Toluene + Organized Pollutants for Industrial Kiln and
Plant, Exhaust gas 38 around the 0.71 0.51 0.95 —
xylene emissions Furnace（DB 50/659-2016);
Campus No. Plant
Integrated Emission Standards of
3)
Air Pollutants（DB 50/418-2016);
NOx 64 Emission Standards of Air 3.17 24.78 —
Pollutants for Boiler（DB 50/658-
2016)
During the reporting period, Liangjiang Plant, Campus NO. 3 was included in the List of Key Pollutant Discharge Units in Chongqing in 2023
Soil with a total of 1,036.90 tons of hazardous waste generated in this period. 1,021.50 tons were legally utilized and disposed of by manufacturers —
with hazardous waste operation permits, produced 7,486.78 tons of general industrial solid waste and 7,486.78 tons of utilization and disposal.
Integrated Wastewater Discharge
COD 100.61 6.04 22.5 —
Chongqing Standard（GB8978-1996); The
Changan Influent Water Quality
Intermittent Main outlet
Wastewater Ammonia 2
Automobile emissions for the Plant Requirements set by the
nitrogen 4.16 0.60 2.25 —
Co., Ltd. Guoyuangang Sewage Treatment
（NH3-N）
(Jiangbei Plant in Chongqing
Engine
Particulate Outlets Emission Standards of Air
Plant, Plant Organized 12.43 8.54 — —
Exhaust gas matter 93 around the Pollutants for Industrial Kiln and
No.1） emissions
SO2 Plant 14.47 Furnace（DB 50/659-2016); 2.80 — —
32
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
VOCs 5.99 Integrated Emission Standards of 0.62 — —
Air Pollutants（DB 50/418-2016)
NOx 23.52 4.70 — —
During the reporting period, Jiangbei Engine Plant, Plant NO. 1 was included in the List of Key Pollutant Discharge Units in Chongqing in
2023, and a total of 1,834.49 tons of hazardous waste was generated in this period. 1,834.49 tons were legally utilized and disposed of by
Soil —
manufacturers with hazardous waste operation permits or exemption certificates, produced 1,390.54 tons of general industrial solid waste and
1,390.54 tons of utilization and disposal.
COD 88.23 Integrated Wastewater Discharge 4.80 11.08 —
Standard（GB8978-1996); The
Intermittent Main outlet Influent Water Quality
Wastewater Ammonia 1
emissions for the Plant Requirements set by Guoyuangang
nitrogen 0.54 0.48 1.11 —
Sewage Treatment Plant in
（NH3-N）
Chongqing
Non-
Chongqing methane
Changan total 1.91 1.95 — —
Automobile hydrocarbon
Emission Standards of Air
Co., Ltd. s
Outlets Pollutants for Industrial Kiln and
(Jiangbei Organized
Exhaust gas Nitrogen 37 around the Furnace（DB 50/659-2016);
Engine emissions 8.18 1.56 — —
oxides factory Integrated Emission Standards of
Plant, Plant
Air Pollutants（DB 50/418-2016)
Particulate
No. 2）
10.14 7.87 — —
matter
Sulfur
4.71 0.96 — —
dioxide
During the reporting period, Jiangbei Engine Plant, Plant NO. 2 was included in the List of Key Pollutant Discharge units in Chongqing in
2023, and a total of 3,995.92 tons of hazardous waste was generated in this period. 3,995.92 tons were legally utilized and disposed of by
Soil —
manufacturers with hazardous waste operation permits or exemption certificates, produced 323.08 tons of general industrial solid waste and
323.08 tons of utilization and disposal.
COD 26.58 3.48 25.76 —
An outlet for
Integrated Wastewater Discharge
Ammonia
workshop
3.34 0.28 3.48 —
Standard（GB8978-1996); The
nitrogen
Intermittent facilities,
Wastewater 3 Inlet Water Quality Requirements
Total nickel emissions and two 0 0 — —
set by Guoyuangang Sewage
Chongqing main outlets
Total zinc 0.04 0 — —
Treatment Plant in Chongqing
Lingyao
for the Plant
Phosphate 0.09 0.01 0.13 —
Automobile
Co., Ltd. Particulate Emission standard of Air Pollutants
3.8 4.08 38.03 —
matter Outlets for Surface Coating of
Organized
Exhaust gas Volatile 40 around the Automobile Manufacturing Industry
emissions
organic Plant 3.17 （DB 50/577-2015); 3.22 111.4 —
compounds Integrated Emission Standards of
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Toluene + Air Pollutants（DB 50/418-2016);
1.44 0.48 6.46 —
xylene Emission Standards of Air
Pollutants for Boiler（DB 50/658-
Sulfur
3L 2016) 0 7.12
dioxide
Nitrogen
10.67 0.29 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 2023, and a total of 852.04 tons of hazardous waste was generated in this period, 852.04 tons were legally utilized and
Soil —
disposed of by manufacturers with hazardous waste operation permits or exemption certificates, produced 7,187.50 tons of general industrial
solid waste and 7,187.50 tons of utilization and disposal.
COD An outlet for 51.2 9.18 63.68 —
workshop
Ammonia
4.69 1 3.81 —
Intermittent facilities, Integrated Discharge Standard of
Wastewater nitrogen 2
emissions and a main Water Pollutants (DB11/307-2013)
Total nickel 0.0531 0 0.01 —
outlet for the
Chongqing
Phosphate Plant 1.368 0.23 / —
Changan
Automobile Nitrogen Emission standard of Air Pollutants
9.33 0.15 3.18 —
Co., Ltd. oxides for Surface Coating of
Outlets
Beijing Automobile Manufacturing Industry
Exhaust gas Volatile Organized 52 around the
Changan (DB11/1227-2015);
organic emissions Plant 2.42 3.25 458.76 —
Automobile Integrated Emission Standards of
compounds
Company 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 2023, and a total of 288.34 tons of hazardous waste was generated in this period, 288.34 tons were
Soil —
legally utilized and disposed of by manufacturers with hazardous waste operation permits or exemption certificates, produced 4,280.03 tons of
general industrial solid waste and 4,280.03 tons of utilization and disposal.
COD 44.38 12.17 144.13 —
Two outlets
Total
for 11.24 Integrated Wastewater Discharge 3.08 39.44 —
nitrogen
workshop Standard（GB8978-1996);
Total nickel Intermittent 0.01 0 0.09 —
Wastewater 3 facilities, The Pipe Standards set by Hefei
Hefei emissions
Total and a main West Group Sewage Treatment
0.18 0.05 4.73
Changan
phosphorus outlet for the Plant
Automobile
Plant
Ammonia
Co., Ltd 0.72 0.198 14.41 —
nitrogen
Emission Control Standard for
Outlets
Organized Industrial Enterprises Volatile
VOCs 83 around the 4 6.435 1139.6 —
Exhaust gas emissions Organic Compounds of Tianjin
Plant
（DB12/524-2020）
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
During the reporting period, Hefei Changan Automobile Co., Ltd. was included in the List of Key Pollutant Discharge Units in Hefei in 2023,
and a total of 910.39 tons of hazardous waste was generated in this period, 911.8 tons were legally utilized and disposed of by manufacturers
Soil —
with hazardous waste operation permits or exemption certificates, produced 13,062.06 tons of general industrial solid waste and 13,062.06 tons
of utilization and disposal.
COD 37.55 1.47 13.34 —
Total
An outlet for 2.83 0.08 14.24 —
nitrogen Integrated Wastewater Discharge
workshop
Total nickel 0.19 Standard（GB8978-1996); 0 0.06
Intermittent facilities,
Wastewater 2 The Pipe Standards set by Nanjing
Total emissions and a main
0.19 Lishui Qinyuan Sewage Treatment 0.01 0.08 —
phosphorus outlet for the
Co., Ltd.
Plant
Ammonia
nitrogen 0.94 0.03 0.26 —
（NH3-N）
Nanjing
NOx 9.67 Emission standard of Air Pollutants 0.66 8.79 —
Changan
for Surface Coating of
Automobile Particulate
0.6 0.94 10.24 —
matter Automobile Manufacturing Industry
Co., Ltd.
(DB32/2862 – 2016);
VOCs Organized Outlets 4.3 3.95 38.48 —
6 Integrated Emission Standards of
Exhaust gas emissions around the
Air Pollutants (GB 16297 - 1996);
Plant
Emission Standards of Air
SO2 3 0.08 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
2023, and a total of 617 tons of hazardous waste was generated in this period, 642 tons were legally utilized and disposed of by manufacturers
Soil —
with hazardous waste operation permits or exemption certificates, produced 780 tons of general industrial solid waste and 760 tons of
utilization and disposal.
Ammonia
3.1 0.11 4.8 —
nitrogen
An outlet for
Integrated wastewater discharge
COD 115 3.84 63.71 —
workshop
standard（GB8978-1996);
Total Intermittent facilities,
Wastewater 2 4.57 The Influent Water Quality 0.25 7.32 —
Hebei
nitrogen emissions and a main
Changan Requirements Set by Gezhouba
outlet for the
Total Water Dingzhou Branch
Automobile 0.84 0.04 0.92
Plant
phosphorus
Co., Ltd
Campus Total nickel 0 0 0.03 —
NO.1
Sulfur Integrated Emission Standards of
3 0.18 30.01 —
dioxide Outlets Air Pollutants GB16297-1996;
Organized
51 around the Emission Standards of Air
Non-
Exhaust gas emissions
plant 11.61 Pollutants for Industrial Kiln and 11.43 570.34 —
methane
total Furnace DB1640-2012;
35
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
hydrocarbon Emission Control Standards for
s Volatile Organic Compounds by
Industrial Enterprises DB13/2322-
Particulate
3.53 2.83 53.4 —
2016;
matter
Emission Standards of Air
Nitrogen Pollutants for Boiler（DB13/5161-
14 0.69 31.47 —
oxides
2020)
During the reporting period, Hebei Changan Automobile Co., Ltd Campus NO.1 was included in the List of Key Pollutant Discharge Units in
Dingzhou In 2023, with a total of 325.14 tons of hazardous waste generated in this period, of which 315.18 tons have been legally utilized and
Soil —
disposed of by suppliers with hazardous waste operation permits, produced 4,147.56 tons of general industrial solid waste and 4,147.56 tons of
utilization and disposal.
COD 104.43 7.09 72.71 —
A workshop
Ammonia
facility
1.36 0.28 4.14 —
Integrated Wastewater Discharge
nitrogen
discharge
Standard（GB8978-1996);
Total Intermittent outlet, and
Wastewater 2 15.6 The Influent Water Quality 0.60 5.51 —
nitrogen emissions one factory
Requirements Set by Gezhouba
total
Total
Water Dingzhou Branch
1.1 0.18 1
discharge
phosphorus
Hebei
outlet
Nickel 0.16 0 0.06 —
Changan
Automobile Sulfur Integrated Emission Standards of
3 3.94 88.23 —
Co., Ltd dioxide Air Pollutants GB16297-1996;
Campus Emission Standards of Air
Nitrogen
NO.2 3 4.05 33.75 —
Pollutants for Industrial Kiln and
oxides
(Baoding Furnace DB1640-2012;
Particulate Outlets
Changan Organized 5 Emission Control Standards for 8.75 850.8 —
matter 94 around the
Bus Exhaust gas emissions Volatile Organic Compounds by
plant
Manufacturi Industrial Enterprises DB13/2322-
ng Co., Ltd) Volatile 2016;
organic 6.7 Emission Standards of Air 20.88 880.62 —
compounds Pollutants for Boiler（DB13/5161-
2020)
During the reporting period, Hebei Changan Automobile Co., Ltd Campus NO.2 (Baoding Changan Bus Manufacturing Co., Ltd) was included
in the List of Key Pollutant Discharge Units in Dingzhou in 2023. A total of 473.79 tons of hazardous waste were generated in this period, and
Soil —
456.78 tons were legally utilized and disposed of by suppliers with hazardous waste operation permits , produced 5,528.87 tons of general
industrial solid waste and 5,528.87 tons of utilization and disposal.
All pollutants are discharged to the standard, and there is no discharge exceeding the standard and the total amount. For details 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).
36
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
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 themselves
gas
adsorption ; Low temperature plasma
Deal with by oneself or
Drying VOCs exhaust gas TNV or RTO incineration
themselves
Deal with by oneself or
Other VOCs exhaust gas Activated carbon adsorption
themselves
Exhaust gas 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 the first half of 2023, a new set of exhaust gas treatment facilities will be installed in Nanjing Changan and Hefei Changan
37
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
respectively. 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 the first half of 2023.
Contingency Plan for environmental emergencies
The manufacturing sites, as required, carries out risk assessment of environmental emergencies, emergency resource surveys,
formulated or revised contingency plans for environmental emergencies, prepared on-site response plans for units with environmental
risk, and continuously carried out hidden danger investigation and treatment. In the first half of 2023, Jiangbei Engine Plant (Plot 3)
completed the revision and filing of contingency plan for environmental emergencies, as shown in the following table:
Unit Contingency Plan File Code Filing Authority
Chongqing Ecology and
Jiangbei Engine Chongqing Changan Automobile Co., Ltd. Jiangbei
Environment Bureau
Plant, Plant No. 2 Engine Plant, Plant No. 2 Risk Assessment Report on 500128-2023-030-L
(Liangjiang New Area
(Plot 3) Environmental Emergencies
Branch)
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 the first half of 2023.
Investment in environmental treatment and protection and payment of environmental protection tax
The company’s environmental protection investment mainly includes: the construction of environmental protection facilities,
operation and maintenance of environmental protection facilities, solid waste transportation and disposal (hazardous waste included),
sewage treatment, monitoring, revision of contingency plans, purchase of emergency materials, environmental protection tax, etc.
The company paid environmental protection tax of 605,900 yuan in the first half of 2023.
Environmental self-monitoring plan
In 2023, key units responsible for pollution discharge of the company prepared self-monitoring plans and carried out self-
monitoring in accordance with the requirements of laws and regulations, and disclosed monitoring information on self-monitoring 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
38
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
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
National Pollution Source Monitoring
https://wryjc.cnemc.cn/gkpt/mainZxjc/1
Hebei Changan Automobile Co., Ltd. Information Management and Sharing
30000
Platform
Administrative penalties imposed for environmental reasons during the reporting period are shown below
None.
Measures taken to reduce carbon emissions during the reporting period and effects
√ Applicable □Not applicable
Changan’s dual carbon targets: Changan aims to reach carbon peaking by 2027 and carbon neutrality by 2045. By 2025, the carbon
intensity per unit of manufacturing will reduce by 30%. By 2030, Changan's supply chain will reduce by 30% compared to 2020.
To achieve the carbon peaking and carbon neutrality targets, Changan, in the first half of 2023, has taken solid efforts in energy-
saving and carbon-reduction measures in manufacturing, achieving a 7% year-on-year reduction in carbon emission per unit. We carried
out energy mix shifts. The manufacturing bases in Chongqing Yuzui, Hefei and Hebei have built 79 MW of photovoltaic power stations,
which generated clean energy for their own use. The total consumption of green electricity throughout the first half of the year stood
at 26 million kWh, with carbon emissions down by 21,000 tons. The planning and construction of photovoltaic plants in Chongqing
Lingyao and Yubei New Plant, Nanjing New Plant and Beijing Base are carried out in an orderly manner and on schedule, with an
expected new installed capacity of 77MW, 56 million kWh of new green power per year, and 51,000 tons of new carbon reduction per
year. The company will further raise the proportion of green energy use and reduce corporate carbon emissions.
The company carries out research on low carbon technology in various areas and has achieved tangible results. In the field of
NEVs, the company focuses on the upgrading of electric drive efficiency, the integration and development of battery systems, and the
research on energy consumption under all climate and driving conditions to build a new energy power system and provide users with
a worry-free mobility experience with low energy consumption in all use scenarios. In terms of new powertrains, the company focuses
on multiple energy-saving solutions including high-efficiency engines, high-efficiency e-drives, intelligent plug-in hybrid systems and
hydrogen fuel cell engines. We continue to build industry-leading intelligent iDD powertrain and Force Power systems to provide users
with a “high-efficiency, low-carbon and intelligent” driving experience. In the field of new materials, the company has completed 15
low-carbon material technology studies, realized the application of various types of low-carbon materials and built the ability to
calculate the carbon footprint of products. The Deepal SL03 was awarded the “2023 China’s leading low-carbon model”.
Other environmental protection-related information
In the first half of 2023, various production bases such as Liangjiang Plant, Jiangbei Engine Plant, Yubei Plant, and Chongqing
Lingyao carried out environmental credit evaluation work for the year 2022 in accordance with the requirements of the local ecological
and environmental regulatory authorities.
39
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
II. Social Responsibility
Guided by Xi Jinping's Thought of Socialism with Chinese Characteristics for a New Era, Chang An Automobile comprehensively
implements the spirit of the 20th CPC National Congress, thoroughly carries out the decision-making and deployment of the Central
Committee of the Communist Party of China and the State Council on targeted assistance, consolidates the foundation, gives full play
to its strengths, adds impetus, pushes forward in a coordinated manner, and adopts multi-measures and concurrent measures to
continuously improve the quality and effectiveness of its assistance, comprehensively push forward the revitalization of the countryside,
carry out the role of the centralized enterprise, and fulfill its political and social responsibilities.
1.Strengthen organizational leadership
1. Held six meetings of the leading group for fixed-point assistance work, studied the annual fixed-point assistance work, and
reviewed the report on the plan of the company's fixed-point assistance in two counties of Yunnan province in 2023.
2. Held the thematic work of fixed-point assistance for rural revitalization six times, determined key assistance projects, studied
programs, formulated measures, and promoted the work.
3. The leaders in charge of the company went to Youyang to carry out thematic education research, and exchanged and discussed
with Chongqing Youzhou Tea Oil Technology Co., Ltd. about the problems and optimization suggestions in the operation of the
management system.
2.Guarantee assistance funds
A total of 10.6 million yuan of assistance funds were allocated, including 4.6 million yuan in Luxi County and 6 million yuan in
Yanshan County of Yunnan province, to help rural development, rural construction and rural governance in a solid and orderly manner,
making new progress in rural revitalization and taking new steps in agricultural and rural modernization.
3.Promote industrial assistance
Implement the overall plan of the government on the implementation of rural revitalization, continue to do a good job of fixed-
point assistance Youyang tea oil project, to improve the management ability as the core, to help build a long-term mechanism of
scientific management system. One is to help marketing and channels. Through the company's sales channels, we helped Chongqing
Youzhou Tea Oil Technology Co., Ltd. to achieve sales of 14.54 million yuan, which helped its sales exceed 54.12 million yuan in the
first half of the year. The second is to enhance the brand and corporate image. “Love has new benefits. Share a Better Life” – Changan
Automobile cross-border new public welfare activities, held a sustainable development cooperation signing ceremony. CCTV, Xinhua
News Agency, Xinhua net, Global Times, Guangming Daily and other media attended the conference and in print. Changan Automobile
with Chongqing Youzhou Tea Oil Technology Co., Ltd. to the independent zone of high-end national oil brand image respectively
appeared in Shanghai, Chongqing two international auto show, cross-border new public welfare to expand its influence, to provide help
for enterprises to bear social responsibility samples. The third is to build a management system, assisting Chongqing Youzhou tea oil
Technology Co., Ltd. to carry out the management system 1.0 publicity and implementation work, promoting the management system
landing, to promote sustainable development. The fourth is the research of carbon sink methodology. Organize the exchanges of experts
from the Ministry of Ecology and Environment, establish the biomass estimation equation and evaluation criteria of Chongqing tea oil
tree, establish the carbon sink measurement model, parameter system and measurement standard of tea oil tree, and establish the carbon
sink evaluation method system of tea oil trees.
4. Provide consumer assistance
In response to the call of the government, encourage all units of the company and the majority of employees to directly purchase
agricultural products with regional characteristics, and actively participate in the "Central Enterprise Consumption Assistance Action
Plan " activity. Until June 30, complete consumption assistance 1.328,000 yuan, of which 756,000 yuan in two counties in Yunnan and
572,000 yuan in other regions, taking concrete actions to promote industrial development in poverty-stricken areas and steadily increase
the incomes of people living out of poverty.
5.Promote skill help
40
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
By exploiting the advantages of the automobile industry and taking skills training as the starting point, we conducted 2 experts
campus lectures and 2 social recruitments in Luxi County and Yanshan County of Yunnan Province, recruiting a total of 100 students
and residents, promoting the employment of rural labor force and helping farmers to increase income and achieve prosperity.
41
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Chapter 6 Important Matters
I. Commitments finished in implementation by the Company, shareholders, actual controller,
acquirer, directors, supervisors, senior executives or other related parties in the reporting
period and commitments unfinished in implementation at the end of the reporting period
√ 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 October, 2020 36 Months
months after the offering, progress
or refinancing Southern Industry Asset for 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
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. Appointment and dismissal of the accounting firm
Is the semi-annual financial report audited?
□ Yes √ No
The company's semi-annual report has not been audited.
42
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
V. The board of directors, and supervisors explaining the "nonstandard audit report" from the
accounting firm during the reporting period
□ Applicable √ Not-applicable
VI. The board of directors explaining the "nonstandard audit report" of last year
□ Applicable √ Not-applicable
VII. Bankruptcy and restructuring
□ Applicable √ Not applicable
During the report period, there is no bankruptcy or restructuring.
VIII. Crucial litigation events
Crucial litigation and arbitration events
□ Applicable √ Not-applicable
During the report period, the company has no crucial litigation or arbitration events.
Other litigation events
□ Applicable √ Not-applicable
IX. Punishment and rectification
□ Applicable √ Not applicable
X. The integrity of company, its controlling shareholder and actual controller
□ Applicable √ Not applicable
XI. Significant related-party transactions
1. Related-party transactions related to daily operation
√Applicable □Not-applicable
For details, please refer to Note 12 “Related Party Relationships and Transactions” under Chapter 10.
2. Related-party transaction of acquisition or sales of assets or equity
□ Applicable √ Not applicable
3. Related-party transactions of common foreign investment
□ Applicable √ Not applicable
4. Related rights and debt relations
√Applicable □Not-applicable
For details, please refer to Note 12 “Related Party Relationships and Transactions” under Chapter 10.
Whether there is any non-business-related credits and debts
43
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
□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% 1,986,295 15,951,593 15,952,147 1,985,741
Group Finance controller of
Co., Ltd. Changan
Automobile
A company
Changan controlled by
Automobile the actual
1,500,000 1.85%-2.25% 1,495,000 580,000 605,000 1,470,000
Finance 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% 6,900 6,000 2,900 10,000
Group Finance controller of
Co., Ltd. Changan
Automobile
Credit granting or other financial business
Total amount (RMB: Actual amount incurred
Related party Relationship Business
10,000) (RMB: 10,000)
China South Industries A company controlled by Credit granting 1,150,000 294,709
44
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Group Finance Co., Ltd. the actual controller of
Changan Automobile
6. Transactions between the financial company controlled by the company and related parties
□ Applicable √ Not applicable
7. Other significant related-party transactions
□ Applicable √ Not applicable
XII. Major contracts and their performance
1. Custody, contracting and leasing
（1）Custody
□Applicable √ Not-applicable
There is no custody during the reporting period.
（2）Contracting
□Applicable √ Not-applicable
There is no contracting during the reporting period.
（3）Leasing
√Applicable □Not-applicable
Leasing information
Leasing of related parties can be found in Item 5 (2) of Note twelve 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.
3. Entrust wealth management
□Applicable √ Not-applicable
There’s no entrusting wealth management during the reporting period.
4. Other major contracts
□ Applicable √ Not applicable
There are no other major contracts of the Company during the reporting period.
XIII. Other important events
√ Applicable □Not applicable
During the reporting period, the company has completed the acquisition of partial equity of Deepal Auto, and its shareholding in
Deepal Auto has increased from 40.66% to 51.00%, which has been included in the company's consolidated financial statements since
February 2023. For specific details, please refer to the "Progress Announcement on Acquiring Partial Equity of Changan New Energy"
45
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
(Announcement No. 2023-05) disclosed by the company on February 18th, 2023 on www.cninfo. com. cn.
XIV. Important matters of the Company's subsidiary
□ Applicable √ Not applicable
46
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Chapter 7 Changes in the Shareholding of the Company and
Shareholders
I. Change in shareholdings
1. Change in shareholdings
Unit: One share
Before change Changes（+，-） After change
Additional Stock Provident
Quantity Ratio Other Subtotal Quantity Ratio
issued dividend fund transfer
Shares with sales restrictions 675,775,474 6.81% -46,200,160 -46,200,160 629,575,314 6.35%
1. State-owned legal person
515,311,738 5.19% 515,311,738 5.20%
shares
2. Other domestic shares 159,248,366 1.61% -46,200,160 -46,200,160 113,048,206 1.14%
Including: domestic legal
person shares
domestic natural person
159,248,366 1.61% -46,200,160 -46,200,160 113,048,206 1.14%
shares
3. Foreign shares 1,215,370 0.01% 1,215,370 0.01%
Including: foreign legal
persons shares
foreign natural person
1,215,370 0.01% 1,215,370 0.01%
shares
Shares without sales
9,246,023,948 93.19% 43,723,738 43,723,738 9,289,747,686 93.65%
restrictions
1.Ordinary shares
7,604,409,171 76.64% 43,723,738 43,723,738 7,648,132,909 77.10%
denominated in RMB
2. Domestic listed foreign
1,641,614,777 16.55% 1,641,614,777 16.55%
shares
Total shares 9,921,799,422 100.00% -2,476,422 -2,476,422 9,919,323,000 100.00%
Reasons for share change
√ Applicable □ Not applicable
(1) The first grant of restricted stock incentive plan for A-shares, the first period of lifting restrictions, and the listing and circulation
of restricted shares
On March 6th, 2023, the company's A-share restricted stock incentive plan granted shares for the first time during the first period
of lifting restrictions, and the restricted shares were listed for circulation. A total of 1,210 incentive objects met the conditions for lifting
restrictions this time, The number of restricted stocks that have been lifted from restrictions on sale is 44,275,061 shares (for specific
47
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
details, please refer to the "Notice on the Listing and Circulation of Restricted Shares during the First Release Period of the A-share
Restricted Stock Incentive Plan"). The incentive targets for lifting the restrictions on sales this time include some directors and senior
management personnel of the company, and the stocks obtained will be locked in accordance with relevant laws and regulations.
(2) Cancellation of partial A-share restricted stock repurchase
On June 20th, 2023, the company completed the repurchase and cancellation of a total of 2,476,422 A-share restricted stocks held
by the original 23 incentive subjects (see the "Announcement on the Completion of Repurchase and Cancellation of Some Restricted
Stocks" for details), and the total share capital of the company was reduced from 9,921,799,422 shares to 9,919,323,000 shares.
(3) Other reasons for changes
Other changes in the company's shares with limited sales conditions are caused by changes in the locked shares of supervisors and
retired executives.
Approval of share change
√ Applicable □ Not applicable
(1) The first grant of restricted stock incentive plan for A-shares, the first period of lifting restrictions, and the listing and circulation
of restricted shares
This matter was reviewed and approved at the 52nd meeting of the 8th Board of Directors and the 21st meeting of the 8th Board
of Supervisors of the company on February 17th, 2023.
(2) Cancellation of partial A-share restricted stock repurchase
This matter was reviewed and approved at the 43rd meeting of the 8th Board of Directors and the 18th meeting of the 8th Board
of Supervisors of the company on August 2nd, 2022, and at the 3rd Extraordinary General Meeting of Shareholders of the company on
August 18th, 2022.
Transfer of shares
√ Applicable □ Not applicable
See Chapter 7, I, 1, "Reasons for share change" for details.
Implementation progress of share repurchase
□ Applicable √ Not applicable
Implementation progress of reducing and repurchasing shares by means of centralized bidding
□ Applicable √ Not applicable
Impact of share changes on financial indicators such as basic earnings per share and diluted earnings per share in the 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 0.60 yuan per share, and at the end of the period
is 0.78 yuan per share. The diluted earnings per share at the beginning of the reporting period was RMB 0.59 yuan per share, and at
the end of the period is 0.76 yuan per share. The net assets per share attributable to ordinary shareholders at the beginning were RMB
6.34 per share, and at the end of the period is RMB 6.85 per share.
Other information deemed necessary by the company or required by securities regulators to disclose
□ Applicable √ Not applicable
2. Changes in restricted shares
√ Applicable □ Not applicable
Unit: share(s)
Number of Number of Number of
Increase during
restricted shares shares with sales restricted shares at Reasons for Date of removal of
Name of shareholders the reporting
at the beginning restriction the end of the restrictions sales restriction
period
of the period removed during period
48
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
the reporting
period
Southern Industry Asset Non-public issuance
340,186,916 340,186,916 2023-10-26
Management Co., Ltd. of A shares in 2020
China Changan Automobile Group Non-public issuance
170,093,458 170,093,458 2023-10-26
Co., Ltd. of A shares in 2020
China South Industries Group Co., Non-public issuance
5,031,364 5,031,364 2023-10-26
Ltd. of A shares in 2020
Equity incentive 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 months from the
date of completion of
the corresponding grant
registration. The
A-share restricted stock 160,418,388 44,275,061 -2,476,422 113,666,905
proportion of lifting the
restriction is 33 %,
33 % and 34 % of the
total number of shares
granted by the
incentive object, a total
of 44,275,061 shares
were granted for the
first time during the
first period of lifting
restrictions, and were
listed and circulated on
March 6th, 2023
Locked shares of
supervisor,senior
Lift the sale restriction
executives and
Other shareholders 45,348 551,323 596,671 according to the
outgoing executives
relevant rules
other than Restricted
stock
Total 675,775,474 44,275,061 -1,925,099 629,575,314 -- --
Note: Due to the fact that the 23 original incentive targets in the A-share restricted stock incentive plan no longer meet the
requirements for incentive targets, the above "increased number of restricted shares in this period" refers to a total of 2,476,422
shares held by the company on June 20th, 2023, which have been granted but have not yet been lifted, and have been repurchased
49
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
and cancelled.
II. Issuing and listing of securities
□ Applicable √ Not-applicable
III. Shareholding and shareholders of the company
Unit: share(s)
At the end of the report period, the Number of shareholders holding preference shares with
655,768 0
total number of shareholders restored voting rights at the end of the reporting 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,
shares held as of shares held shares held
Name Nature Percentage during the labeled or frozen)
the end of the with sales without sales
Reporting
reporting period restrictions restrictions Status Amount
Period
China Changan Automobile Group State-owned
17.98% 1,783,090,143 170,093,458 1,612,996,685
Co., Ltd. legal person
China South Industries Group Co., State-owned 1,405,715,791
14.22% 1,410,747,155 5,031,364
Ltd. legal person
Southern Industry Asset State-owned
5.10% 506,243,257 340,186,916 166,056,341
Management Co., Ltd. legal person
Domestic
China Securities Finance Co., Ltd. general legal 4.30% 426,362,905 426,362,905
person
United Prosperity Investment Co., Foreign legal Not
2.83% 280,498,832 280,498,832
Ltd. person pledged,
labeled or
Hong Kong Securities Clearing Co., Foreign legal
1.77% 175,854,458 32,727,549 175,854,458 frozen
Ltd. person
China Construction Bank
Funds, wealth
Corporation - Huaxia Energy
management 0.73% 71,921,430 71,921,430
Reform Equity Securities Investment
products, etc.
Fund
China Construction Bank
Corporation - Guangfa China Funds, wealth
Securities All Index Automotive management 0.35% 34,540,666 6,181,800 34,540,666
Index Initiated Securities products, etc.
Investment Fund
50
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Xinhua Life Insurance Co., Ltd. - Funds, wealth
Dividend - Individual Dividend - management 0.34% 33,336,801 33,336,801 33,336,801
018L-FH002 Shenzhen products, etc.
China Merchants Securities (HK) Foreign legal
0.33% 33,166,598 -6,739,021 33,166,598
Co., Ltd. person
Among the top 10 shareholders, the actual controller China South Industries Group Co., Ltd. and its wholly-
Description of the related party relationship or owned subsidiary Southern Industry Asset Management Co., Ltd., the controlling shareholder China Changan
acting in concert among the above shareholders Automobile Group Co., Ltd. and its wholly-owned subsidiary United Prosperity 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 None
waiver of 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
China Securities Finance Co., Ltd. 426,362,905 RMB ordinary shares 426,362,905
United Prosperity Investment Co., Limited 280,498,832 Domestic listed foreign shares 280,498,832
Hong Kong Securities Clearing Co., Ltd. 175,854,458 RMB ordinary shares 175,854,458
Southern Industry Asset Management Co., Ltd. 166,056,341 RMB ordinary shares 166,056,341
China Construction Bank Corporation - Huaxia
71,921,430 RMB ordinary shares 71,921,430
Energy Reform Equity Securities Investment Fund
China Construction Bank Corporation - Guangfa
China Securities All Index Automotive Index 34,540,666 RMB ordinary shares 34,540,666
Initiated Securities Investment Fund
Xinhua Life Insurance Co., Ltd. - Dividend -
33,336,801 RMB ordinary shares 33,336,801
Individual Dividend -018L-FH002 Shenzhen
China Merchants Securities (HK) Co., Ltd. 33,166,598 Domestic listed foreign shares 33,166,598
Description of the related relationship or acting in Among the top 10 shareholders, the actual controller China South Industries Group Co., Ltd. and its wholly-
concert among the top 10 shareholders of owned subsidiary Southern Industry Asset Management Co., Ltd., the controlling shareholder China Changan
unrestricted circulating shares, and between the top Automobile Group Co., Ltd. and its wholly-owned subsidiary United Prosperity Investment Co., Ltd. are
10 shareholders of unrestricted tradable shares and parties acting in concert as stipulated in the “Measures for the Administration of Takeover of Listed
the top 10 shareholders Companies”.
Description of the top 10 ordinary shareholders
participating in the margin trading and securities None
lending business
Whether the top 10 shareholders of ordinary shares, and the top 10 shareholders of ordinary shares without sales restrictions
51
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
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.
IV. Changes in the shareholding of directors, supervisors and senior management
√ Applicable □ Not applicable
Number of Number of
shares held Number of restricted Number of Number of
at the shares held stocks granted restricted restricted stocks
Employment Increase Reduce
Name Duties beginning at the end of at the stocks granted granted at the end
status (shares) (shares)
of the the period beginning of in the current of the period
period (shares) the period period (shares) (shares)
(shares) (shares)
Employee
Luo Yan Incumbent 0 500 500
supervisor
Total 0 500 500
Note: The shareholding of other directors, supervisors, and senior management personnel of the company did not change during the
reporting period. Please refer to the 2022 annual report for details.
V. The change of the controlling shareholders and the actual controllers
During the reporting period the change of controlling shareholders
□ Applicable √ Not-applicable
No changes in controlling shareholders during the reporting period.
The change of the actual controllers during the reporting period
□ Applicable √ Not-applicable
No changes in the actual controllers during the reporting period.
52
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Chapter 8 Preferred Shares
□ Available √ Not- available
During the reporting period, there were no preferred shares in the company.
53
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Chapter 9 Bonds
√Available □ Not- available
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. Adjustment of Credit Rating Results during the Reporting Period
□ Applicable √ Not applicable
4. Execution and Changes of Guarantee, Repayment Plan and Other Repayment Guarantee Measures as well as Influence on
Equity of Bond Investors during the Reporting Period
□ Applicable √ Not applicable
54
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
III. Debt Financing Instruments of Non-financial Enterprises
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV. Convertible Corporate Bonds
□ Applicable √ Not applicable
No such cases in the Reporting Period.
V. Losses of Scope of Consolidated Financial Statements during the Reporting Period Exceeding
10% of Net Assets up the Period-end of Last Year
□ Applicable √ Not applicable
VI. The Major Accounting Data and the Financial Indicators of the Recent 2 Years of the
Company up the Period-end
Unit: 10,000 RMB
Items 30 June 2023 31 December 2022 Increase/decrease
Current ratio 1.27 1.28 -0.78%
Debt/asset ratio 58.90% 56.90% 2.00%
Quick ratio 1.16 1.20 -3.33%
The reporting period Same period last year Increase/decrease
Net profit after deducting
150,905.80 310,011.38 -51.32%
non-recurring profit or loss
Debt/EBITDA ratio 9.04% 9.90% -0.86%
Interest cover (times) 181.73 296.09 -38.62%
Cash-to-interest cover (times) 188.93 327.08 -42.24%
EBITDA-to-interest cover
252.97 431.43 -41.36%
(times)
Loan repayment rate 100% 100% 0
Interest coverage 100% 100% 0
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Chapter 10 The Financial Statements
I. Auditing Report
No audit on the semi-annual financial report.
II. Financial statements
Financial in notes to the statements of the unit is: RMB yuan
1. Consolidated Balance Sheet
In RMB Yuan
Account 2023.6.30 2023.1.1
Current assets:
Cash 65,985,946,564.21 53,530,183,827.34
Trading financial assets 262,239,446.37 280,315,571.09
Notes receivable 33,963,917,823.31 35,849,660,652.96
Accounts receivable 2,477,017,799.35 3,068,414,415.29
Prepayments 662,389,388.99 749,572,262.00
Other receivables 959,635,940.20 1,261,157,951.14
Including: dividends receivable 180,656,814.04
Inventories 10,252,940,583.44 5,823,307,512.90
Contract assets 2,227,324,510.17 458,389,187.10
Assets held for sale 327,144.11 -
Other current assets 1,126,348,926.89 1,054,779,668.19
Total current assets 117,918,088,127.04 102,075,781,048.01
Non-current assets:
Long-term equity investments 13,788,910,316.27 14,406,662,456.28
Investment in other equity instruments 489,950,000.00 489,950,000.00
Investment properties 6,309,359.26 6,422,715.04
Fixed assets 18,869,352,705.47 19,346,764,691.44
Construction in progress 2,225,500,468.09 1,387,898,218.64
Right-of-use asset 186,760,454.06 100,813,386.01
Intangible assets 15,068,479,509.60 4,446,385,255.68
Development expenditure 1,393,772,255.65 723,211,177.47
Goodwill 1,809,337,918.87 9,804,394.00
Long-term deferred expenses 25,237,506.61 26,375,422.17
Deferred tax assets 3,211,105,057.00 3,028,487,187.18
Total non-current assets 57,074,715,550.88 43,972,774,903.91
TOTAL ASSETS 174,992,803,677.92 146,048,555,951.92
Current liabilities:
Short-term loans 50,000,000.00 29,000,000.00
Trading financial liabilities 37,813,520.40 -
Notes payable 33,712,072,409.02 22,072,793,864.83
Accounts payable 30,465,634,254.25 29,449,664,138.75
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Contract liability 7,116,078,624.58 5,655,256,792.66
Payroll payable 4,002,974,882.87 2,807,158,489.85
Taxes payable 1,546,790,269.12 1,749,946,082.32
Other payables 8,462,527,432.79 6,082,766,424.67
Including: interest payable 16,112,069.40 1,478,888.85
Dividends payable 2,341,524,610.92 79,742.80
Non-current liabilities within one year 69,596,855.90 885,723,901.34
Other current liabilities 7,391,295,648.04 6,627,044,667.62
Total current liabilities 92,854,783,896.97 75,359,354,362.04
Non-current liabilities:
Long-term loans 76,000,000.00 36,000,000.00
Bonds payable 999,558,490.56 999,528,301.88
Lease liability 120,870,028.21 60,205,397.98
Long-term payables 136,176,629.42 553,518,750.12
Long-term payroll payable 32,144,585.90 35,013,000.00
Estimated liabilities 5,663,765,591.18 4,589,299,321.49
Deferred Revenue 350,542,948.42 347,568,549.62
Deferred tax liabilities 1,641,744,451.94 237,036,741.16
Other non-current liabilities 1,186,870,228.93 882,226,966.14
Total non-current liabilities 10,207,672,954.56 7,740,397,028.39
Total liabilities 103,062,456,851.53 83,099,751,390.43
Owners’ equity (or Shareholders’ equity):
Share capital 9,919,323,000.00 9,921,799,422.00
Capital reserves 8,055,341,447.46 8,532,806,685.77
Less: treasury shares 442,866,474.72 627,060,416.52
Other comprehensive income 146,575,802.76 98,841,615.42
Special reserves 53,566,585.57 24,090,898.05
Surplus reserves 3,528,137,635.53 3,528,137,635.53
Retained earnings 46,691,054,344.13 41,379,489,865.45
Equity attributable to owners 67,951,132,340.73 62,858,105,705.70
Minority interests 3,979,214,485.66 90,698,855.79
Total Owners’ equity (or Shareholders’ equity) 71,930,346,826.39 62,948,804,561.49
Liabilities and owners' equity (or shareholders'
174,992,803,677.92 146,048,555,951.92
equity) in total
Legal person: Zhu Huarong Chief financial officer: Zhang Deyong The head of accounting department: Chen Jianfeng
2. Balance sheet
In RMB Yuan
Account 2023.6.30 2023.1.1
Current assets:
Cash 49,612,761,169.23 44,742,705,933.76
Trading financial assets 262,239,446.37 251,165,128.80
Notes receivable 30,191,885,135.89 32,497,209,409.96
Accounts receivable 9,034,639,091.77 5,538,504,821.82
Prepayments 384,123,437.64 519,014,279.72
Other receivables 287,117,037.30 859,026,748.64
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Including: dividends receivable 180,656,814.04
Inventories 3,116,400,210.80 2,872,390,838.54
Contract assets 190,244,001.11 221,555,444.48
Other current assets 1,585,516.57 199,954,784.05
Total current assets 93,080,995,046.68 87,701,527,389.77
Non-current assets:
Long-term equity investments 18,677,206,479.38 17,385,137,116.25
Investment in other equity instruments 489,950,000.00 489,950,000.00
Fixed assets 13,738,675,532.50 14,214,227,798.06
Construction in progress 1,302,130,391.01 895,860,965.16
Right-of-use asset 146,496,392.45 78,806,182.57
Intangible assets 3,107,507,892.58 3,299,143,861.49
Development expenditure 842,475,143.40 616,814,902.46
Long-term deferred expenses 23,330,341.50 24,406,892.18
Deferred tax assets 2,742,289,372.93 2,631,189,529.75
Total non-current assets 41,070,061,545.75 39,635,537,247.92
TOTAL ASSETS 134,151,056,592.43 127,337,064,637.69
Current liabilities:
Notes payable 22,929,207,918.01 18,728,133,049.99
Accounts payable 21,951,564,942.03 21,488,548,997.96
Contract liability 3,889,013,319.36 3,997,514,972.13
Payroll payable 3,205,228,940.22 2,436,938,973.59
Taxes payable 723,833,589.23 1,376,448,691.45
Other payables 6,307,174,533.43 5,425,776,798.83
Including: interest payable 16,022,222.20 1,478,888.85
Dividends payable 2,341,414,868.12
Non-current liabilities within one year 52,058,482.61 635,180,849.52
Other current liabilities 5,933,407,026.04 5,932,680,982.04
Total current liabilities 64,991,488,750.93 60,021,223,315.51
Non-current liabilities:
Long-term loans 76,000,000.00 36,000,000.00
Bonds payable 999,558,490.56 999,528,301.88
Lease liability 94,497,087.94 45,437,270.79
Long-term payables 136,736,360.65 144,571,302.45
Long-term payroll payable 17,938,948.80 20,565,000.00
Estimated liabilities 4,103,060,663.98 3,936,444,965.49
Deferred Revenue 150,000,000.00 150,000,000.00
Deferred tax liabilities 200,127,370.94 195,053,909.31
Other non-current liabilities 999,203,989.60 844,435,549.31
Total non-current liabilities 6,777,122,912.47 6,372,036,299.23
Total liabilities 71,768,611,663.40 66,393,259,614.74
Owners’ equity (or Shareholders’ equity):
Share capital 9,919,323,000.00 9,921,799,422.00
Capital reserves 8,227,900,416.30 8,047,195,325.61
Less: treasury shares 442,866,474.72 627,060,416.52
Other comprehensive income 157,416,810.63 157,416,810.63
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Special reserves 24,136,173.85 10,285,640.79
Surplus reserves 3,528,137,635.53 3,528,137,635.53
Retained earnings 40,968,397,367.44 39,906,030,604.91
Total Owners’ equity (or Shareholders’ equity) 62,382,444,929.03 60,943,805,022.95
Liabilities and owners' equity (or shareholders'
134,151,056,592.43 127,337,064,637.69
equity) in total
3. Consolidated Income Statement
In RMB Yuan
Account Current Period Prior Period
1.Operating revenue 65,492,098,869.01 56,573,568,393.71
Less: Operating cost 54,001,999,268.58 45,360,090,482.20
Tax and surcharges 2,186,174,248.99 1,946,300,231.77
Operating expenses 3,068,434,621.37 2,285,329,821.77
General and administrative expenses 2,271,960,408.55 2,184,034,305.10
Research and development expenses 2,964,604,104.48 1,932,294,144.67
Financial expenses (453,268,104.89) (437,998,348.99)
Interest expense 36,814,471.44 17,892,411.14
Interest income 532,594,819.89 438,428,075.90
Add: Other income 657,988,649.18 186,910,289.65
Investment income 5,023,108,819.32 2,354,040,073.27
Including: Investment income from associates and joint
(180,436,966.53) 78,821,605.75
venture
Gains from changes in fair value (23,334,661.15) 26,136,888.77
Credit impairment loss (15,513,488.10) (10,774,686.62)
Asset impairment loss (397,274,160.99) (241,827,585.46)
Gain on disposal of assets 366,667,730.28 68,244,082.28
2.Operating profit 7,063,837,210.47 5,686,246,819.08
Add: Non-operating income 93,295,575.81 54,366,637.51
Less: Non-operating expenses 13,498,961.02 4,870,215.23
3.Total profit 7,143,633,825.26 5,735,743,241.36
Less: Income tax expense 176,620,825.19 (103,280,125.74)
4.Net profit 6,967,013,000.07 5,839,023,367.10
Classification by going concern
Net profit from continuing operations 6,967,013,000.07 5,839,023,367.10
Net profit from discontinued operations
Classification by ownership attribution
Net profit attributable to owners 7,652,979,346.80 5,857,626,135.78
Minority interests (685,966,346.73) (18,602,768.68)
5.Other comprehensive income, net of tax 47,734,187.34 121,654.81
Net after-tax net of other comprehensive income
47,734,187.34 121,654.81
attributable to the parent company owner
Other comprehensive income that will be
47,734,187.34 121,654.81
reclassified into profit or loss
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Other comprehensive income that can be
146,228.18
transferred to profit or loss under the equity method
Foreign currency financial statement translation
47,734,187.34 (24,573.37)
difference
6.Total comprehensive income 7,014,747,187.41 5,839,145,021.91
Total comprehensive income attributable to owners 7,700,713,534.14 5,857,747,790.59
Total comprehensive income attributable to minority
(685,966,346.73) (18,602,768.68)
interest
7.Earnings per share
Basic earnings per share 0.78 0.60
Diluted earnings per share 0.76 0.59
Legal person: Zhu Huarong Chief financial officer: Zhang Deyong The head of accounting department: Chen Jianfeng
4. Income Statement
In RMB Yuan
Account Current Period Prior Period
1.Operating revenue 54,376,375,197.21 50,290,300,571.12
Less: Operating cost 45,316,394,387.31 40,914,984,492.63
Tax and surcharges 1,453,554,280.40 1,434,768,916.69
Operating expenses 1,594,619,192.27 1,475,590,737.64
General and administrative expenses 1,686,722,665.70 1,915,207,107.81
Research and development expenses 2,538,873,301.65 1,851,660,640.99
Financial expenses (368,021,413.76) (342,363,432.16)
Interest expense 22,584,078.19 13,595,854.23
Interest income 399,510,519.70 365,385,141.66
Add: Other income 657,920,000.00 54,300,000.00
Investment income 585,161,578.54 986,054,122.33
Including: Investment income from associates and
(141,552,078.57) (92,372,274.55)
joint venture
Gains from changes in fair value 32,897,781.54 26,136,888.77
Credit impairment loss 949,935.35 (286,476.97)
Asset impairment loss (288,325,731.15) (128,723,015.24)
Gain on disposal of assets 365,125,023.58 42,691,501.37
2.Operating profit 3,507,961,371.50 4,020,625,127.78
Add: Non-operating income 81,107,919.29 25,372,227.33
Less: Non-operating expenses 11,520,621.79 2,696,319.99
3.Total profit 3,577,548,669.00 4,043,301,035.12
Less: Income tax expense 173,767,038.35 (136,087,013.13)
4.Net profit 3,403,781,630.65 4,179,388,048.25
Net profit from continuing operations 3,403,781,630.65 4,179,388,048.25
Net profit from discontinued operations
5.Other comprehensive income, net of tax 146,228.18
6.Total comprehensive income 3,403,781,630.65 4,179,534,276.43
5. Consolidated cash flow statement
In RMB Yuan
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Account Current Period Prior Period
1.Cash flows from operating activities:
Cash received from sale of goods or rendering of services 73,931,703,144.09 61,813,960,686.95
Refunds of taxes 1,199,246,444.10 896,338,589.28
Cash received relating to other operating activities 1,753,218,395.89 1,401,417,655.54
Subtotal of cash inflows 76,884,167,984.08 64,111,716,931.77
Cash paid for goods and services 54,711,756,692.18 46,918,151,331.30
Cash paid to and on behalf of employees 4,415,366,034.62 3,773,793,442.65
Cash paid for all types of taxes 5,442,991,004.83 4,028,962,242.26
Cash paid relating to other operating activities 5,358,597,538.86 3,538,573,495.36
Subtotal of cash outflows 69,928,711,270.49 58,259,480,511.57
Net cash flows from operating activities 6,955,456,713.59 5,852,236,420.20
2.Cashflows from investing activities:
Cash received from investment recovery 14,839,200.00
Cash received from investment income 1,406,842.07 381,628,412.00
Net cash received from disposal of fixed assets, intangible
35,915,330.45 280,603,391.85
assets and other long-term assets
Cash received relating to other investing activities 6,216,944,276.29
Subtotal of cash inflows 6,254,266,448.81 677,071,003.85
Cash paid for acquisition of fixed assets, intangible assets and
857,592,457.14 783,516,340.12
other long-term assets
Cash paid for acquisition of investments 137,000,000.00 1,461,640,640.00
Cash paid relating to other investing activities 815,126,333.76
Subtotal of cash outflows 994,592,457.14 3,060,283,313.88
Net cash flows from investing activities 5,259,673,991.67 (2,383,212,310.03)
3.Cash flows from financing activities:
Absorb cash received from investment 35,190,000.00
Cash received from borrowing 90,000,000.00 68,070,000.00
Cash received relating to other financing activities 362,339,945.61 715,239,432.26
Subtotal of cash inflows 487,529,945.61 783,309,432.26
Cash repayments of borrowings 629,000,000.00 300,903,500.00
Cash paid for distribution of dividends or profits and interest
6,163,524.40 1,797,127,172.44
expenses
Cash paid relating to other financing activities 418,524,690.02 699,230,692.02
Subtotal of cash outflows 1,053,688,214.42 2,797,261,364.46
Net cash flows from financing activities (566,158,268.81) (2,013,951,932.20)
4.Effect of changes in exchange rate on cash 13,258,565.35 59,278,475.19
5.Net increase in cash and cash equivalents 11,662,231,001.80 1,514,350,653.16
Add: Opening balance of cash and cash equivalents 52,491,435,047.74 49,517,916,834.99
6.Closing balance of cash and cash equivalents 64,153,666,049.54 51,032,267,488.15
6. Cash flow statement
In RMB Yuan
Account Current Period Prior Period
1.Cash flows from operating activities:
Cash received from sale of goods or rendering of services 57,757,311,678.85 51,488,841,934.67
Cash received relating to other operating activities 30,303,650.49 46,609,602.87
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Cash received relating to other operating activities 1,828,991,752.50 676,108,022.43
Subtotal of cash inflows 59,616,607,081.84 52,211,559,559.97
Cash paid for goods and services 42,458,816,511.21 38,192,576,888.27
Cash paid to and on behalf of employees 2,826,100,179.04 2,615,212,696.17
Cash paid for all types of taxes 3,421,770,360.23 2,892,112,750.99
Cash paid relating to other operating activities 3,661,788,216.38 2,383,343,811.11
Subtotal of cash outflows 52,368,475,266.86 46,083,246,146.54
Net cash flows from operating activities 7,248,131,814.98 6,128,313,413.43
2.Cashflows from investing activities:
Cash received from investment recovery 14,839,200.00
Cash received from return on investments 1,556,842.07 381,628,412.00
Net cash received from disposal of fixed assets, intangible
8,857,134.39 255,368,088.61
assets and other long-term assets
Subtotal of cash inflows 10,413,976.46 651,835,700.61
Cash paid for acquisition of fixed assets, intangible assets and
723,218,813.52 633,161,880.29
other long-term assets
Cash paid for acquisition of investments 1,069,135,009.18 1,461,640,640.00
Subtotal of cash outflows 1,792,353,822.70 2,094,802,520.29
Net cash flows from investing activities (1,781,939,846.24) (1,442,966,819.68)
3.Cash flows from financing activities:
Cash received from borrowings 40,000,000.00 40,000,000.00
Subtotal of cash inflows 40,000,000.00 40,000,000.00
Cash paid for debt repayment 600,000,000.00 300,000,000.00
Cash paid for distribution of dividends or profits and interest
3,470,000.00 1,795,680,672.36
expenses
Cash paid relating to other financing activities 32,666,733.27 12,551,861.64
Subtotal of cash outflows 636,136,733.27 2,108,232,534.00
Net cash flows from financing activities (596,136,733.27) (2,068,232,534.00)
4.Effect of changes in exchange rate on cash
5.Net increase in cash and cash equivalents 4,870,055,235.47 2,617,114,059.75
Add: Opening balance of cash and cash equivalents 44,732,418,327.28 41,889,838,553.29
6.Closing balance of cash and cash equivalents 49,602,473,562.75 44,506,952,613.04
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
7. Consolidated statement of changes in shareholders’ equity
Current Period
In RMB Yuan
Current period
Equity attributable to owners
Items Other Minority
Less: Treasury Special Surplus Retained Total equity
Share capital Capital reserves comprehensiv interest
shares reserve reserve earnings
e income
I. At end of last year 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 90,698,855.79 62,948,804,561.49
II. At beginning of year 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 90,698,855.79 62,948,804,561.49
III. Changes during the year (2,476,422.00) (477,465,238.31) (184,193,941.80) 47,734,187.34 29,475,687.52 5,311,564,478.68 3,888,515,629.87 8,981,542,264.90
1.Total comprehensive
47,734,187.34 7,652,979,346.80 (685,966,346.73) 7,014,747,187.41
income
2. Capital contributed by
owners and capital (2,476,422.00) (477,465,238.31) (157,449,592.97) (322,492,067.34)
decreases
(1) Ordinary shares
invested by owners
(2) The amount of share-
based payment included in 187,899,000.00 187,899,000.00
owner's equity
(3) Others (2,476,422.00) (665,364,238.31) (157,449,592.97) (510,391,067.34)
3. Distribution of profit (26,744,348.83) (2,341,414,868.12) (150,000.00) (2,314,820,519.29)
(1) Distribution to
(26,744,348.83) (2,341,414,868.12) (150,000.00) (2,314,820,519.29)
owners
(2) Others
4.Internal carry forward of
owner's equity
5. Special reserves 29,475,687.52 29,475,687.52
(1) Pick-up in current
64,708,453.30 64,708,453.30
period
(2) Used in current
(35,232,765.78) (35,232,765.78)
period
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
6.Others 4,574,631,976.60 4,574,631,976.60
IV. At end of current period 9,919,323,000.00 8,055,341,447.46 442,866,474.72 146,575,802.76 53,566,585.57 3,528,137,635.53 46,691,054,344.13 3,979,214,485.66 71,930,346,826.39
Prior period
In RMB Yuan
Prior period
Equity attributable to owners
Items Other Minority
Less: Treasury Special Surplus Total equity
Share capital Capital reserves comprehens Retained earnings interest
shares reserve reserve
ive income
I. At end of last year 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 35,900,674,525.13 133,307,840.48 55,866,239,944.20
II. At beginning of year 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 35,900,674,525.13 133,307,840.48 55,866,239,944.20
III. Changes during the
2,289,646,020.00 (1,433,769,009.30) 121,654.81 21,158,894.87 4,078,769,944.24 (7,729,996.65) 4,948,197,507.97
year
1.Total comprehensive
121,654.81 5,857,626,135.78 (18,602,768.68) 5,839,145,021.91
income
2. Capital contributed by
owners and capital 855,877,010.70 855,877,010.70
decreases
(1) The amount of
share-based payment
192,310,900.00 192,310,900.00
included in owner's
equity
(2) Others 663,566,110.70 663,566,110.70
3. Distribution of profit (1,778,856,191.54) (1,778,856,191.54)
Distribution to
(1,778,856,191.54) (1,778,856,191.54)
owners
4.Internal carry forward
2,289,646,020.00 (2,289,646,020.00)
of owner's equity
Capital reserve
converted into capital 2,289,646,020.00 (2,289,646,020.00)
(or share capital)
5. Special reserves 21,158,894.87 21,158,894.87
(1) Pick-up in 46,183,489.83 46,183,489.83
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
current period
(2) Used in current
(25,024,594.96) (25,024,594.96)
period
6.Others 10,872,772.03 10,872,772.03
IV. At end of current
9,921,799,422.00 8,342,424,351.08 655,812,327.60 69,564,124.34 49,147,155.48 2,982,292,413.67 39,979,444,469.37 125,577,843.83 60,814,437,452.17
period
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
8. Statement of changes in shareholders’ equity
Current Period
In RMB Yuan
Current period
Items Other
Less: Treasury
Share capital Capital reserves comprehensive Special reserve Surplus reserve Retained earnings Total equity
shares
income
I. At end of last year 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
II. At beginning of year 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
III. Changes during the
(2,476,422.00) 180,705,090.69 (184,193,941.80) 13,850,533.06 1,062,366,762.53 1,438,639,906.08
year
1.Total comprehensive
3,403,781,630.65 3,403,781,630.65
income
2. Capital contributed by
owners and capital (2,476,422.00) 180,705,090.69 (157,449,592.97) 335,678,261.66
decreases
(1) The amount of
share-based payment 187,899,000.00 187,899,000.00
included in owner's equity
(2) Others (2,476,422.00) (7,193,909.31) (157,449,592.97) 147,779,261.66
3. Distribution of profit (26,744,348.83) (2,341,414,868.12) (2,314,670,519.29)
(1) Distribution to
(26,744,348.83) (2,341,414,868.12) (2,314,670,519.29)
owners
(2) Others
4.Internal carry forward of
owner's equity
Capital reserve
converted into capital (or
share capital)
5. Special reserves 13,850,533.06 13,850,533.06
(1) Pick-up in current
32,871,513.66 32,871,513.66
period
(2) Used in current
(19,020,980.60) (19,020,980.60)
period
6.Disposal of subsidiaries
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
IV. At end of current period 9,919,323,000.00 8,227,900,416.30 442,866,474.72 157,416,810.63 24,136,173.85 3,528,137,635.53 40,968,397,367.44 62,382,444,929.03
Prior period
In RMB Yuan
Prior period
Items Other
Less: Treasury
Share capital Capital reserves comprehensiv Special reserve Surplus reserve Retained earnings Total equity
shares
e income
I. At end of last year 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
II. At beginning of year 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
III. Changes during the
2,289,646,020.00 (1,433,769,009.30) 146,228.18 8,998,316.80 2,280,296,154.31 3,145,317,709.99
year
1.Total comprehensive
146,228.18 4,179,388,048.25 4,179,534,276.43
income
2. Capital contributed by
owners and capital 855,877,010.70 855,877,010.70
decreases
(1) The amount of
share-based payment
192,310,900.00 192,310,900.00
included in owner's
equity
(2) Others 663,566,110.70 663,566,110.70
3. Distribution of profit (1,778,856,191.54) (1,778,856,191.54)
Distribution to
(1,778,856,191.54) (1,778,856,191.54)
owners
4.Internal carry forward
2,289,646,020.00 (2,289,646,020.00)
of owner's equity
Capital reserve
converted into capital 2,289,646,020.00 (2,289,646,020.00)
(or share capital)
5. Special reserves 8,998,316.80 8,998,316.80
(1) Pick-up in
30,492,980.10 30,492,980.10
current period
(2) Used in current
(21,494,663.30) (21,494,663.30)
period
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
6.Disposal of
(120,235,702.40) (120,235,702.40)
subsidiaries
IV. At end of current
9,921,799,422.00 7,859,296,325.61 655,812,327.60 166,197,564.29 16,551,301.25 2,982,292,413.67 39,168,038,091.78 59,458,362,791.00
period
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
III. 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.
After the establishment of the company, the share capital and shareholding structure have undergone several changes. As of June 30,
2023, the company’s controlling shareholder China Changan Automobile Group Company Limited (hereinafter referred to as “China
Changan”) and its wholly-owned subsidiary United Prosperity Investment Co., Ltd. held a total of ordinary shares of the company
2,063,588,975 shares with an equity ratio of 20.80%. China South Industries Group Co., Ltd. (hereinafter referred to as “China South
Group”), the parent company of China Changan, and its wholly-owned subsidiary, South Industries International Holdings (Hong Kong)
Company Limited, hold 1,921,622,884 ordinary shares of the company, with a 19.37% shareholding ratio. China Changan and China
South Group holds ordinary shares 3,985,211,859 in total with a shareholding ratio of 40.18%.
The Company and its subsidiaries collectively refer to as the Group, and its main business activities are: the manufacturing and 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.
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 VIII.
IV. BASIS OF PREPARATION
1. Basis of compilation
The financial statements have been prepared in accordance with Accounting Standards for Business Enterprises-Basic Standard 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”).
1. Going-concern
The financial statements are presented on a going concern basis.
The financial statements have been prepared under the historical cost convention, except for certain financial instruments. If the assets
are impaired, the corresponding provisions should be made accordingly.
V. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
According to the actual production and operation characteristics, the group formulated the specific accounting policies and 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 30 June 2023 and the financial results and
the cash flows in the half year of 2023 then ended in accordance with Accounting Standards for Business Enterprises.
2. Accounting year
The accounting year of the Group is from 1 January to 31 December of each calendar year.
3. Functional currency
The Group’s functional and reporting currency is the Renminbi (“RMB”). Unless otherwise stated, the unit of the currency is Yuan.
Each entity in the Group determines its own functional currency in accordance with the operating circumstances. At the end of the
reporting period, the foreign currency financial statements are translated into the reporting currency of the Company of RMB.
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
4. Business combination
Business combinations are classified into business combinations involving entities under common control and business combinations
involving entities not under common control.
Business combination involving entities under common control
If the enterprise participating in the merger is ultimately controlled by the same party or the same parties before and after the merger,
and the control is not temporary, it is a business merger under the same control.
Assets and liabilities that are obtained by the acquiring party in a business combination involving entities under common control 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
If the enterprise participating in the merger is not ultimately controlled by the same party or the same parties before and after the merger,
it is a business merger not under the same control.
The acquirer shall measure the acquiree’s identifiable assets, liabilities and contingent liabilities acquired in the business 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.
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.
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
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.
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.
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
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
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 measured at amortized cost, financial assets measured at fair value with
changes included in other comprehensive income, and financial assets measured at fair value with changes included in current profit
and loss. All affected related financial assets are reclassified when and only when 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.
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.
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.
Classification and measurement of financial liabilities
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Financial liabilities are classified as: financial liabilities measured at fair value through profit or loss, and other financial liabilities
measured at amortized cost. For financial liabilities measured at fair value and whose changes are included in the current profit and
loss, the relevant transaction costs are directly included in the current profit and loss, and the relevant transaction costs of other financial
liabilities measured at amortized cost are included in their initial recognition amount.
The subsequent measurement of financial liabilities depends on their classification as follows:
Financial liabilities at fair value through profit or 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.
Financial liabilities measured at amortized cost
Other financial liabilities are subsequently measured at amortized cost using the effective interest method.
Impairment of financial assets
On the basis of expected credit loss, the Group carries out impairment treatment on financial assets, measured at amortized cost 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 and the definition of
credit impairment assets that have occurred.
The factors reflected in the group's method of measuring expected credit losses on financial instruments include the unbiased probability
weighted average amount determined by evaluating a series of possible results, the time value of money, and reasonable and evidentiary
information on past events, current conditions and forecasts of future economic conditions available at the balance sheet date without
unnecessary additional costs or efforts.
When the Group no longer reasonably expects to be able to fully or partially recover the contractual cash flows of financial assets, the
Group directly writes down the book balance of the financial asset.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently 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
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
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.
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.
11.Assets held for sale
The group divides non current assets or asset groups that meet the following conditions into held for sale categories:
1) In accordance with the practice of selling such assets or groups of assets in similar transactions, they can be sold immediately
under current conditions;
2) The sale is likely to occur, that is, the group has made a decision on a sale plan and obtained a definite purchase commitment, and
the sale is expected to be completed within one year.
If the book value of non current assets (excluding financial assets, deferred income tax assets and assets formed by employee
remuneration) or disposal groups held for sale is higher than the net value of fair value minus selling expenses, the book value shall
be written down to the net value of fair value minus selling expenses, and the amount written down shall be recognized as asset
impairment losses and included in the current profits and losses. At the same time, provision for impairment of assets held for sale
shall be made.
Non current assets held for sale or non current assets in the disposal group are not depreciated or amortized, and interest and other
expenses on liabilities in the disposal group held for sale continue to be recognized.
When non current assets or disposal groups no longer meet the criteria for the classification of held for sale categories, the group will
no longer continue to classify them as held for sale categories or remove noncurrent assets from the disposal groups held for sale, and
will measure them according to the lower of the following:
1) The book value before being classified as held for sale is adjusted according to the depreciation, amortization or impairment that
should have been recognized under the assumption that it is not classified as held for sale;
2) Recoverable amount.
12. Long-term equity investments
Long-term equity investments include investments in subsidiaries, joint ventures and associates.
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
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.
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.
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
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
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.
13. 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.
14. Fixed assets
A fixed asset probably shall be recognized only when the economic benefits associated with the asset will flow to the Group and 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.
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.
15. 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.
16. Borrowing costs
The borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized,
otherwise the borrowing costs are expensed in the period during which they are incurred. A qualifying asset is an asset (an item 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
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
3) activities that are necessary to prepare the asset for its intended use or sale are in progress.
Capitalization of borrowing costs shall be ceased when substantially all the 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.
17. Right-of-use assets
At the commencement date of the lease period, the Group recognizes its right to use the leased assets during the lease period as a right-
of-use asset, initial measurement is made at cost. Cost of right to use assets including: the initial measured amount of the lease liability;
the amount of lease payments paid on or before the start date of the lease period, in addition, the relevant amount of lease 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. If the group remeasures the lease liabilities due to changes in lease payments, the book value of the right to use assets shall be
adjusted accordingly. 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.
18. 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 11 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.
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
The useful life of an intangible asset that is not being amortized 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.
19. Research and development expenditures
The Group classified the internal research and development expenditures as follows: research expenditures and development cost.
The expenditures in research stage are charged to the current income on occurrence.
The expenditures in development stage are capitalized that should meet all the conditions of (a) it is technically feasible to 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.
20. Impairment of assets
The impairment of assets other than inventory, contract assets, deferred income tax assets and financial assets is determined according
to the following methods: on the balance sheet date, it is judged whether there are signs of possible impairment of assets. If there are
signs of impairment, the group will estimate its recoverable amount and conduct an impairment test. Impairment tests shall be
conducted at least at the end of each year for goodwill formed by business combination, intangible assets with uncertain service life
and intangible assets that have not yet reached the usable state, regardless of whether there are signs of impairment.
The recoverable amount is determined according to the higher of the net amount of the fair value of the asset minus the disposal
expenses and the present value of the expected future cash flow of the asset. The group estimates its recoverable amount on the basis
of individual assets; If it is difficult to estimate the recoverable amount of a single asset, the recoverable amount of the asset group
shall be determined on the basis of the asset group to which the asset belongs. The recognition of an asset group shall be based on
whether the main cash inflow generated by the asset group is independent of the cash inflow of other assets or asset groups.
The recoverable amount of an asset is the higher of its fair value less costs to sell and the present value of the future cash flow 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.
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.
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Once the above impairment loss is recognized, it cannot be reversed in subsequent periods.
21. Long-term deferred expenses
The long-term deferred expenses represent the payment for the improvement on buildings and other expenses, which have been 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.
22. 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.
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.
23. Lease liabilities
At the beginning of the lease term, the Group recognizes the present value of the unpaid lease payments as a lease liability, except for
short-term leases and low value asset leases. Lease payments include fixed and substantially fixed payments after deducting lease
incentives, variable lease payments depending on an index or ratio, amounts expected to be payable based on the guaranteed residual
value, and also includes the exercise price of the purchase option or amounts payable to exercise the termination lease option, provided
that the group reasonably determines that the option or lease term will be exercised to reflect the group's exercise of the termination
lease option.
In calculating the present value of lease payments, the group uses the embedded interest rate of the lease as the discount rate; If the
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
embedded interest rate of the lease cannot be determined, the incremental loan interest rate of the lessee shall be used as the discount
rate. The group calculates the interest expense of lease liabilities during each period of the lease term at a fixed cyclical interest rate
and includes it in the current profit and loss, unless otherwise specified in the cost of related assets. The amount of variable lease
payments not included in the measurement of lease liabilities shall be included in the current profit and loss when actually incurred,
unless otherwise stipulated in the cost of related assets.
After the beginning date of the lease term, the group increases the carrying amount of the lease liabilities when it recognizes interest,
and decreases the carrying amount of the lease liabilities when it pays the lease payments. When the substantial fixed payment changes,
the estimated amount payable of the guarantee residual value changes, the index or ratio used to determine the lease payment changes,
the evaluation results or actual exercise of the purchase option, renewal option or termination option changes, the group remeasures
the lease liability according to the present value of the changed lease payment.
24. Provisions
An obligation related to a contingency shall be recognized by the Group as a provision when all of the following conditions are satisfied,
except for contingent considerations and contingent liabilities assumed in a business combination not involving entities under 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.
25. Share-based payments
A share-based payment is classified as either an equity-settled share-based payment or a cash-settled share-based payment. An equity-
settled share-based payment is a transaction in which the Group receives services and uses shares or other equity instruments 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.
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
26. Revenue from contracts with customers
The Group has fulfilled its performance obligations in the contracts, that is, the revenue is recognized when the customer obtains 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.
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 V, 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.
Reward points program
The group grants reward points to customers when selling goods or providing services, and customers can exchange reward points for
free or discounted goods or services. The incentive points plan provides customers with a significant right, which the group regards as
a single performance obligation, apportions part of the transaction price to the incentive points in accordance with the relative
proportion of the separate selling price of the goods or services provided and the incentive points, and recognizes revenue when the
customer obtains control of the points exchanged goods or services or when the points expire.
Principal/agent
For the Group to lead a third party to provide services to customers on behalf of the Group, the Group has the right to 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.
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
27. 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.
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.
28. 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.
29. Deferred income tax
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:
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.
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
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.
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.
30. Leases
At inception of a contract, the Group assesses whether the contract is, or contains, a lease. A contract is, or contains, a lease if the
contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
As lessee
In addition to short-term leases and low value asset leases, the Group recognizes right to use assets and lease liabilities for leases. See
notes 5, 17 and 23 for accounting treatment.
Short-term leases and leases of low-value assets
The Group considers a lease that, at the commencement date of the lease, has a lease term of 12 months or less, and does not 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 from operating leases is recognized as current profit and loss on a straight line basis during each period of the lease
term, and variable lease payments not included in lease receipts are included in current profit and loss when actually incurred. The
initial direct expenses are capitalized and amortized on the same basis as the recognition of rental income during the lease period, and
are included in the current profit and loss by stages.
31. Profit distribution
The cash dividend of the Group is recognized as liabilities after the approval of general meeting of stockholders.
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
32. Safety fund
The safety fund extracted by the Group shall be recognized as the cost of the related products or income statement, while be 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.
33. Fair value measurement
The Group measures derivatives and equity investments at fair value at the end of each reporting period. Fair value is the price 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 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.
34. 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 arrangement 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.
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
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
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.
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
The group uses the market method to determine the fair value of unlisted equity investments. This requires the group to determine
comparable listed companies, select market multipliers, estimate liquidity discounts, etc., so it is uncertain.
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.
Lessee Incremental Borrowing Rate
For leases for which the interest rate implicit 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 lease payments. When determining the incremental borrowing rate, the Group
takes the observable interest rate as the reference basis for determining the incremental borrowing rate according to the economic
environment in which it is located. The reference interest rate is adjusted according to the specific conditions of the leasing business to
obtain the applicable incremental borrowing rate.
35. Significant accounting judgments and estimates
(1) Significant accounting policy changes
□ Applicable √ Not applicable
(2) Changes in significant accounting estimates
□ Applicable √ Not applicable
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
VI. TAXES
1. Main taxes and tax rates
The income from the sale of goods and the income from the provision of services are calculated at the tax
Value added tax
rates of 13% and 6%, respectively, and the VAT is calculated on the basis of the difference after deducting
(“VAT”)
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 actual turnover tax 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), Deepal Automobile Technology Company Limited (2021-2023).
According to the Announcement on Continuing the Income Tax Policy for Enterprises in the Large-scale Development of the 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 policy for promoting the high-quality development of integrated circuit
industry and 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, integrated circuit design, equipment, materials,
packaging, testing enterprises and software enterprises encouraged by the State shall be exempted from enterprise income tax from the
first year to the second year from the profit making year, From the third year to the fifth year, the enterprise income tax shall be reduced
by half at the statutory tax rate of 25%. Chongqing Changan Automotive Software Technology Co., Ltd., a subsidiary of the company,
meets the above conditions and is subject to enterprise income tax at the statutory tax rate of half this year.
VII. Notes to the consolidated financial statements
1. Cash
In RMB Yuan
Item Ending balance Beginning balance
Cash 1,886.16 32,155.77
Cash at bank 64,133,735,374.29 52,455,913,791.28
Other cash 1,852,209,303.76 1,074,237,880.29
Total 65,985,946,564.21 53,530,183,827.34
As at 30 June 2023, the book value of restricted cash and cash equivalents is RMB 1,832,280,514.67, which was mainly restricted for
the issuance of acceptance bill (December 31, 2022: RMB 1,038,748,779.60).
As at 30 June 2023, the cash at bank oversea is equivalent to RMB 1,186,263,774.58 (December 31, 2022: RMB 231,286,316.97).
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
As of June 30, 2023, the monetary capital deposited by the group in the financial company of the related party was RMB
34,557,412,889.08 (December 31, 2022: RMB 34,812,952,043.78). See note XII and 5 for details.
The interest income of bank demand deposits is obtained according to the interest rate of bank demand deposits. 7-day bank call
deposits and time deposits can be withdrawn at any time according to the group's cash demand, and interest income is obtained
according to the corresponding bank deposit interest rate.
2. Transactional financial assets
In RMB Yuan
Item Ending balance Beginning balance
Equity instrument investment 262,239,446.37 251,165,128.80
Others 29,150,442.29
Total 262,239,446.37 280,315,571.09
As of June 30, 2023, the trading financial assets measured at fair value are 27.09 million ordinary shares of Southwest Securities Co.,
Ltd. held by the group (December 31, 2022: 33.63 million shares), and 26.05 million restricted shares held by the group in China
Automobile Research automobile testing ground Co., Ltd. (December 31, 2022: Nil).
3. Notes receivable
(1) Classification of notes receivable
In RMB Yuan
Item Ending balance Beginning balance
Commercial acceptance bill 22,559,968,628.70 25,838,721,743.62
Bank acceptance bill 11,403,949,194.61 10,010,938,909.34
Total 33,963,917,823.31 35,849,660,652.96
(2)Notes receivable pledged
In RMB Yuan
Item Pledged amount
Commercial acceptance bill 6,179,911,994.47
Bank acceptance bill 199,543,152.00
Total 6,379,455,146.47
As of June 30, 2023, the bills receivable of the above amount had been pledged for issuing bills payable.
(3)Endorsed or discounted but unexpired notes receivable as at the end of reporting period
In RMB Yuan
Amount derecognized at the end of the Amount not derecognized at the end of
Item
period the period
Commercial acceptance bill 5,501,433,908.49 -
Bank acceptance bill 228,955.19 -
Total 5,501,662,863.68 -
(4)At the end of the period, the company transferred the bills to accounts receivable due to the drawer's non performance
As at 30 June 2023, there was no note receivables converted to accounts receivable due to the inability of the drawer to perform the
contract. (As at 31 December 2022: Nil)
4. Accounts receivable
(1)Aging analysis of the accounts receivable
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
In RMB Yuan
Aging Ending balance Beginning balance
Within 1 year 2,416,543,623.42 2,905,353,787.00
1 to 2 years 71,350,324.51 176,712,124.08
2 to 3 years 6,060,396.21 25,732,015.24
Over 3 years 208,767,029.46 201,045,330.53
Total 2,702,721,373.60 3,308,843,256.85
Less: Provision (225,703,574.25) (240,428,841.56)
Total 2,477,017,799.35 3,068,414,415.29
(2)The movements in provision for impairment of accounts receivable are as follows:
In RMB Yuan
Change amount in the current period
Beginning
Category Merger Withdrawal Ending balance
balance Provision Write-off
increase or reversal
2023.6.30 240,428,841.56 21,786,720.49 8,683,488.91 6,323,653.99 38,871,822.72 225,703,574.25
2022.12.31 215,274,377.62 35,457,297.58 4,945,346.85 5,357,486.79 240,428,841.56
(3)Analysis of accounts receivable by category
In RMB Yuan
Ending balance
Category Balance Provision
Book value
Amount % Amount %
Individually analyzed for provision 1,717,016,214.88 63.53 128,730,126.47 7.50 1,717,016,214.88
Accounts receivable analyzed as
985,705,158.72 36.47 96,973,447.78 9.84 985,705,158.72
groups for provision
Total 2,702,721,373.60 100.00 225,703,574.25 8.35 2,702,721,373.60
Beginning balance
Category Balance Provision
Book value
Amount % Amount %
Individually analyzed for provision 2,059,626,543.23 62.25 152,800,930.19 7.42 2,059,626,543.23
Accounts receivable analyzed as
1,249,216,713.62 37.75 87,627,911.37 7.01 1,249,216,713.62
groups for provision
Total 3,308,843,256.85 100.00 240,428,841.56 7.27 3,308,843,256.85
(4)The Group’s accounts receivable was analyzed for provision by expected credit loss model
In RMB Yuan
Ending balance
Aging Expected credit loss rate Expected credit loss for the
Estimated face value for default
(%) entire duration
Within 1 year 754,808,931.73 0.19 1,407,868.22
1 to 2 years 58,832,021.35 6.24 3,669,447.39
2 to 3 years 5,803,750.00 16.02 929,861.76
Over 3 years 166,260,455.64 54.71 90,966,270.41
Total 985,705,158.72 9.84 96,973,447.78
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Beginning balance
Aging Expected credit loss rate Expected credit loss for the
Estimated face value for default
(%) entire duration
Within 1 year 1,031,532,359.36 0.41 4,211,660.35
1 to 2 years 30,724,065.06 7.24 2,225,905.84
2 to 3 years 25,707,148.00 16.02 4,118,732.53
Over 3 years 161,253,141.20 47.80 77,071,612.65
Total 1,249,216,713.62 7.01 87,627,911.37
(5) Accounts receivable with top five ending balances collected by debtors
As at June 30, 2023, accounts receivable from Top 5 clients amounted to RMB 910,077,900.68, accounted for 33.67% of the total
accounts receivable (December 31, 2022: RMB 1,880,530,647.71, accounted for 56.83% of the total amount).
(6) Accounts receivable derecognized due to transfer of financial assets
As of June 30, 2023, the Group has no accounts receivable that are derecognized as the transfer of financial assets (December 31, 2022:
Nil).
5. Prepayments
(1) Prepayments listed by aging
In RMB Yuan
Ending balance Beginning balance
Aging
Amount % Amount %
Within 1 year 622,741,040.66 94.01 523,061,724.51 69.78
1 to 2 years 30,083,298.85 4.54 217,460,711.49 29.01
2 to 3 years 8,860,304.45 1.34 8,858,465.69 1.18
Over 3 years 704,745.03 0.11 191,360.31 0.03
Total 662,389,388.99 100.00 749,572,262.00 100.00
(2) Prepayments of the top five ending balances collected by prepayment object
As at 30 June 2022, the total amount of the top five prepayments was RMB 1,474,271,190.88, accounting for 38.15% of the total
amount of prepayments (2021: RMB 1,151,298,912.20, accounting for 35.52%).
6. Other receivables
In RMB Yuan
Item Ending balance Beginning balance
Dividend receivable 180,656,814.04
Other receivables 778,979,126.16 1,261,157,951.14
Total 959,635,940.20 1,261,157,951.14
(1)Dividend receivable
In RMB Yuan
Project (or investee) Ending balance Beginning balance
Weaponry Group Finance Co., Ltd 180,656,814.04
Total 180,656,814.04
(2)Other receivables
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
1) Aging analysis of other receivables
In RMB Yuan
Aging Ending balance Beginning balance
Within 1 year 404,062,220.98 1,192,972,701.51
1 to 2 years 324,136,540.21 57,855,077.50
2 to 3 years 48,742,138.29 1,364,188.70
Over 3 years 11,184,947.78 18,062,282.93
Total 788,125,847.26 1,270,254,250.64
Less: Provision (9,146,721.10) (9,096,299.50)
Total 778,979,126.16 1,261,157,951.14
2) Other receivables are classified by nature
In RMB Yuan
Nature Ending balance Beginning balance
Bond 382,933,957.10 16,618,938.83
Subsidies for new energy vehicles 191,328,464.00 667,729,527.63
Petty cash 52,817,507.27 63,703,195.18
Investment funds 35,000,000.00 399,486,432.52
Other 116,899,197.79 113,619,856.98
Total 778,979,126.16 1,261,157,951.14
3) The changes in the provision for bad debts for other receivables based on the 12-month expected credit losses and the expected
credit losses for the entire duration
In RMB Yuan
Change amount in the current period
Beginning
Category Withdrawal or Ending balance
balance Provision Write-off
reversal
2023.6.30 9,096,299.50 74,667.40 24,245.80 9,146,721.10
2022.12.31 7,466,239.96 1,886,641.46 156,581.92 100,000.00 9,096,299.50
4) Other receivables with top five ending balances collected by debtors
In RMB Yuan
Proportion in Ending
ending balance of balance of
Name Nature Ending balance Aging
other receivables bad debt
(%) provision
First Bond 300,000,000.00 1 to 2 years 38.06
Subsidies for new energy
Second 191,328,464.00 Within 1 year 24.28
vehicles
Third Disposal of assets 48,350,040.00 2 to 3 years 6.13
Fourth Bond 44,615,500.00 Within 1 year 5.66
Fifth Equity investment funds 35,000,000.00 Within 1 year 4.44
Total 619,294,004.00 - 78.57
5) Other receivables derecognized due to transfer of financial assets
As of June 30, 2023, the Group has no other receivables derecognized as financial asset transfers. (December 31, 2022: Nil).
7. Inventory
(1) Classification of inventory
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
In RMB Yuan
Ending balance Beginning balance
Provision for Provision for
impairment of impairment of
inventories or inventories or
Item provision for provision for
Balance Net value Balance Net value
impairment of impairment of
contract contract
performance performance
costs costs
Raw
926,643,222.25 387,861,235.15 538,781,987.10 1,230,104,093.50 439,269,923.99 790,834,169.51
materials
Work in
178,075,579.62 178,075,579.62 130,255,961.90 130,255,961.90
transit
Work in
1,126,031,029.08 68,920,010.07 1,057,111,019.01 1,719,902,124.07 53,609,953.08 1,666,292,170.99
progress
Commodity
8,543,057,327.85 97,202,201.72 8,445,855,126.13 3,264,190,903.27 87,522,918.36 3,176,667,984.91
stock
Consigned
processing 26,582,772.70 26,582,772.70
material
Spare parts 33,116,871.58 33,116,871.58 32,674,452.89 32,674,452.89
Total 10,806,924,030.38 553,983,446.94 10,252,940,583.44 6,403,710,308.33 580,402,795.43 5,823,307,512.90
(2) Provision for inventory
In RMB Yuan
Beginning Increase Decrease
Item Ending balance
balance Provision Other Reversal Write-off
Raw materials 439,269,923.99 68,334,317.49 19,789,507.89 240,682.47 139,291,831.75 387,861,235.15
Work in
53,609,953.08 28,045,494.93 330,076.99 12,405,360.95 68,920,010.07
progress
Commodity
87,522,918.36 17,771,158.05 160,909,600.79 3,234,731.90 165,766,743.58 97,202,201.72
stock
Total 580,402,795.43 114,150,970.47 180,699,108.68 3,805,491.36 317,463,936.28 553,983,446.94
8. Contract assets
In RMB Yuan
Ending balance Beginning balance
Item Provision for Provision for
Balance Net value Balance Net value
impairment impairment
Contract
2,712,885,743.74 485,561,233.57 2,227,324,510.17 747,871,586.89 289,482,399.79 458,389,187.10
assets
Total 2,712,885,743.74 485,561,233.57 2,227,324,510.17 747,871,586.89 289,482,399.79 458,389,187.10
Current contract assets provision for impairment：
In RMB Yuan
Beginning balance Provision Turn back Resale Ending balance
2023.6.30 289,482,399.79 65,572,656.78 135,456,176.99 4,950,000.00 485,561,233.56
2022.12.31 169,661,981.98 129,619,022.81 9,798,605.00 289,482,399.79
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
9. Assets held for sale
In RMB Yuan
Provision for Estimated Expected
Item Balance Net value Fair Value
impairment disposal costs disposal time
Assets held for
327,144.11 327,144.11 Within 1 year
sale
Total 327,144.11 327,144.11
10. Other current assets
In RMB Yuan
Item Ending balance Beginning balance
Accrual input tax 874,407,379.73 803,647,039.82
Prepaid taxes 237,176,376.68 250,386,657.89
Others 14,765,170.48 745,970.48
Total 1,126,348,926.89 1,054,779,668.19
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
11. Long-term equity investments
In RMB Yuan
Increase / decrease Provision
Investee Beginning balance Investment income under Ending balance ending
Addition Other decreases balance
equity method
I. Joint Venture
Changan Ford Automobile Co., Ltd. 712,459,351.85 399,619,898.50 1,112,079,250.35
Changan Mazda Automobile Co., Ltd. 1,433,304,456.32 (100,026,283.01) 1,333,278,173.31
Changan Mazda Engine Co., Ltd. 824,042,049.05 4,107,980.55 828,150,029.60
Nanchang Jiangling Holding Co., Ltd. 1,810,629,644.86 146,167,915.87 1,956,797,560.73
Subtotal 4,780,435,502.08 449,869,511.91 5,230,305,013.99
II. Associates
Chongqing Changan Kuayue Automobile Co.,
209,768,936.34 5,402,511.72 215,171,448.06
Ltd.
Changan Automobile Financing Co.,Ltd 2,778,898,410.33 172,182,412.71 2,951,080,823.04
Nanjing Chelai Travel Technology Co., Ltd. 624,773.31 (92,277.85) 532,495.46
Hunan Guoxin Semiconductor Technology Co.,
25,452,425.26 71,917.19 25,524,342.45
Ltd.
Jiangling Holding Co., Ltd.(note 1)
Chongqing Changan Kuayue Automobile Sales
Co., Ltd. (note 1)
Nanjing Leading Equity Investment
2,570,421,464.70 (51,784.35) 2,570,369,680.35
Management Co., Ltd. (Limited Partnership)
Nanjing Leading Equity Investment Partnership 1,112,210.69 (5,089.84) 1,107,120.85
Zhongqi Chuangzhi Technology Co., Ltd. 168,492,790.78 (6,754,636.46) 161,738,154.32
Chongqing Changxin Zhiqi Private Equity
Investment Fund Partnership (Limited 170,440,054.08 242,103.89 170,682,157.97
Partnership)
Anhe Chongqing Dingfeng Automobile
61,568,706.08 4.26 61,568,710.34
Contract Private Equity Investment Fund
Avatr Technology (Chongqing) Co., Ltd 2,644,535,940.48 (745,447,867.08) 1,899,088,073.40
Chongqing Changan Innovation Private Equity 1,000,844.59 446.93 1,001,291.52
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Investment Fund Partnership Enterprise
(Limited Partnership)
Anhe (Chongqing) Equity Investment Fund
5,150,787.41 (553,650.85) 4,597,136.56
Management Co., Ltd.
Hangzhou Chelizi Intelligent Technology Co.,
3,020,026.80 3,020,026.80
Ltd.
Master Changan Automobile Co., Ltd. 45,248,645.36 6,823,643.69 52,072,289.05
Chongqing Changxian Intelligent Technology
102,000,000.00 66,933.68 102,066,933.68
Co., Ltd
Deepal Automobile Technology Co., Ltd.(note
940,490,937.99 (67,105,457.17) (873,385,480.82)
2)
Time FAW Power Battery Co., Ltd.(note 3) 252,012,401.16 2,691,403.28 254,703,804.44
Chongqing Wutong Chelian Technology Co.,
75,267,178.90 6,686,538.61 81,953,717.51
Ltd. (note 3)
Western Car Network (Chongqing) Co., Ltd.
2,478,830.94 (151,734.46) 2,327,096.48
(note 3)
Beijing Fang’an cresent taxi Co., Ltd. (note 4)
Subtotal 9,626,226,954.20 431,758,411.00 (625,994,582.10) (873,385,480.82) 8,558,605,302.28
Total 14,406,662,456.28 431,758,411.00 (176,125,070.19) (873,385,480.82) 13,788,910,316.27
Note 1: As of June 30, 2023, the Group had no obligation to bear additional losses to Chongqing Changan Kuayue Vehicle Marketing Co., Ltd. and Jiangling Holdings Co., Ltd. Therefore, when
they incurred excess losses, only long-term equity investments were written down to zero, and no excess losses related to investments in the aforementioned companies were recognized.
Note 2: In February 2023, due to the acquisition of equity in Deepal Automobile Technology Co., Ltd. by the group, it changed from an associate to a subsidiary.
Note 3: This year, the Group increased the investment of 329,758,411.00 yuan in the affiliated enterprises Time FAW Power Battery Co., Ltd., wutong Chelian Technology Co., Ltd., and Western
Chewang (Chongqing) Co., Ltd., which is the result of the Group's acquisition of Deepal Automobile Technology Co., Ltd., and its long-term equity investment in the affiliated enterprises is
included in the consolidation scope.
Note 4: In January 2023, the Group completed the equity disposal of Beijing Fangan Crescent Taxi Co., Ltd.
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
12. Investment in other equity instruments
In RMB Yuan
Accumulative Reason for being
changes in fair designated
value included in as fair value
Item Fair value Dividends Income
other through other
comprehensive comprehensive
income income
China South Industry Group Finance Co., Unlisted equity
181,979,200.00 339,000,000.00 180,656,814.04
Ltd. instruments
Guoqi (Beijing) Intelligent Network
Unlisted equity
Association Automotive Research Institute 2,700,000.00 52,700,000.00
instruments
Co., Ltd.
Guoqi Automobile Power Cell Research Unlisted equity
40,000,000.00
Co., Ltd. instruments
China South Industry Group Financial Unlisted equity
3,698,000.00 34,250,000.00
Leasing Co., Ltd. instruments
Unlisted equity
Zhong Fa Lian Investment Co., Ltd. 21,000,000.00
instruments
CAERI(Beijing) automobile Lightweight
Technology Research Unlisted equity
3,000,000.00
instruments
Institution Co., Ltd.
Total 188,377,200.00 489,950,000.00 180,656,814.04
13. Investment property
Cost Model
In RMB Yuan
Item Buildings Total
I. Original cost
1. Opening balance 10,050,100.00 10,050,100.00
2. Increase in current period
3. Decrease in current period
4. Ending balance 10,050,100.00 10,050,100.00
II. Accumulated depreciation and amortization
1. Opening balance 3,627,384.96 3,627,384.96
2. Increase in current period 113,355.78 113,355.78
3. Decrease in current period
4. Ending balance 3,740,740.74 3,740,740.74
III. Impairment provision
1. Opening balance
2. Increase in current period
3. Decrease in current period
4. Ending balance
IV. Net Value
1. Ending 6,309,359.26 6,309,359.26
2. Beginning 6,422,715.04 6,422,715.04
The investment property is rented to third parties in the form of operating lease.
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
As at 30 June 2023, there was no investment property without property certificate (As at 31 December 2021: Nil).
14. Fixed assets
(1) Details of fixed assets
In RMB Yuan
Item Buildings Machinery Vehicles Other Equipment Total
I. Original cost
Beginning 9,828,625,137.70 26,295,137,118.43 1,983,195,890.87 9,475,715,171.05 47,582,673,318.05
Purchase 4,473,693.57 215,663.71 7,809,446.06 12,498,803.34
Transfer from
Construction in 61,804,269.27 340,347,569.12 13,604,766.67 440,568,271.53 856,324,876.59
progress
Increase in
470,810,107.30 97,376.64 96,160,690.62 567,068,174.56
business merger
Other additions 6,587,437.89 5,495,575.99 60,580.42 445,449.63 12,589,043.93
Disposal 299,969,783.23 170,283,554.82 39,508,903.91 102,557,039.61 612,319,281.57
Government grants 25,065,921.11 36,347,887.20 61,413,808.31
Other decrease 361,031.96 9,923,097.01 205,904.59 10,490,033.56
Ending 9,596,686,029.67 26,910,991,491.47 1,921,111,582.61 9,918,141,989.28 48,346,931,093.03
II.Accumulated
depreciation
Beginning 3,123,481,499.40 16,387,379,193.35 712,742,045.45 5,343,343,137.24 25,566,945,875.44
Accrual 171,728,462.63 801,278,672.10 141,340,209.22 378,124,663.67 1,492,472,007.62
Increase in
88,078,845.80 11,806.91 30,208,499.83 118,299,152.54
business merger
Other additions 2,817,640.69 4,561,751.68 8,603.52 775,586.11 8,163,582.00
Disposal 215,472,125.28 133,916,182.37 28,858,045.79 97,997,712.86 476,244,066.30
Other decrease 358,999.11 8,831,258.30 102,262.81 9,292,520.22
Ending 3,082,196,478.33 17,138,551,022.26 825,142,356.50 5,654,454,173.99 26,700,344,031.08
III.Impairment
Provision
Beginning 97,718,327.95 2,189,788,051.83 57,769,334.61 323,687,036.78 2,668,962,751.17
Accrual 4,087,988.86 121,158,826.10 42,369,038.67 17,229,525.66 184,845,379.29
Increase in
62,029.55 252,215.89 314,245.44
business merger
Disposal 34,731,080.99 34,393,754.16 4,415,040.34 3,348,143.93 76,888,019.42
Ending 67,075,235.82 2,276,615,153.32 95,723,332.94 337,820,634.40 2,777,234,356.48
IV. Net Value
Ending 6,447,414,315.52 7,495,825,315.89 1,000,245,893.17 3,925,867,180.89 18,869,352,705.47
Beginning 6,607,425,310.35 7,717,969,873.25 1,212,684,510.81 3,808,684,997.03 19,346,764,691.44
(2) Fixed assets that are temporarily unused
On June 30, 2023, the fixed assets with a book value of RMB 108,924,744.94 (December 31, 2022: RMB 191,192,253.37) were tem
porarily idle due to product upgrading and other reasons.
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
(3) The fixed assets which are rented out under operating leases
In RMB Yuan
Item Ending
Buildings 184,106,042.14
Vehicles 915,602,548.69
Total 1,099,708,590.83
(4) Fixed assets with incomplete property rights certificates
In RMB Yuan
Reasons for not completing the property
Item Book value
rights certificate
Engine and vehicle project 917,466,884.66 Processing
Global R&D Center Project 9,246,434.77 Processing
Total 926,713,319.43
15. Construction in progress
(1) Details of construction in progress
In RMB Yuan
Ending balance Beginning balance
Item
Balance Provision Carrying amount Balance Provision Carrying amount
Mini-bus
production 80,451,176.96 80,451,176.96 75,025,377.82 75,025,377.82
equipment
Car production
298,244,431.71 1,310,363.23 296,934,068.48 242,918,939.86 22,624,011.22 220,294,928.64
equipment
Engine plant 608,138,520.52 608,138,520.52 504,558,659.05 504,558,659.05
Vehicle research
24,918,534.16 24,918,534.16 17,740,102.50 17,740,102.50
institution
Car production
Project of 52,500,806.38 52,500,806.38 55,863,516.26 55,863,516.26
Hefei Changan
Yubei Factory
Replacement
and Upgrading 426,535,063.94 426,535,063.94 41,224,362.58 41,224,362.58
Construction
Project
Nanjing
493,667,793.08 493,667,793.08 385,922,235.89 385,922,235.89
Changan Project
Others 265,463,471.46 23,108,966.89 242,354,504.57 110,378,003.02 23,108,967.12 87,269,035.90
Total 2,249,919,798.21 24,419,330.12 2,225,500,468.09 1,433,631,196.98 45,732,978.34 1,387,898,218.64
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
(2) Movements of significant construction in progress
In RMB Yuan
The project
Budget investments’ Progress of
Beginning Transferred to Other
Item Addition Ending balance proportion construction Source of funds
(In 1,000 RMB) balance fixed assets deduction
of budget (%)
(%)
Mini-bus
production 137,470.00 75,025,377.82 116,170,932.89 110,715,639.06 29,494.69 80,451,176.96 70.00 70.00 Self-funded
equipment
Car production Self-raised and
360,738.00 220,294,928.64 88,627,425.25 11,987,406.41 879.00 296,934,068.48 37.00 37.00 additional
equipment issuance
Self-raised and
Engine plant 485,216.00 504,558,659.05 175,347,789.87 71,758,364.90 9,563.50 608,138,520.52 67.00 67.00 additional
issuance
Vehicle research
209,906.00 17,740,102.50 36,321,076.06 29,142,644.40 24,918,534.16 77.00 77.00 Self-funded
institution
Car production Self-raised and
project of 394,980.00 55,863,516.26 29,114,023.06 15,540,120.15 16,936,612.79 52,500,806.38 89.00 89.00 additional
Hefei Changan issuance
Yubei Factory
Replacement
and Upgrading 450,000.00 41,224,362.58 386,152,904.19 842,202.83 426,535,063.94 10.00 10.00 Self-funded
Construction
Project
Nanjing
231,028.77 385,922,235.89 117,819,350.58 9,443,204.39 630,589.00 493,667,793.08 22.00 22.00 Self-funded
Changan Project
Others 87,269,035.90 762,822,965.95 607,737,497.28 242,354,504.57
Total 1,387,898,218.64 1,712,376,467.85 856,324,876.59 18,449,341.81 2,225,500,468.09
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
(3) The movement of impairment for construction in progress is as follows:
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
June 30, 2023 45,732,978.34 21,313,648.22 24,419,330.12
December 31, 2022 71,691,670.00 1,533,334.00 27,492,025.66 45,732,978.34
16. Right-of-use assets
In RMB Yuan
Item Buildings Total
I. Original cost
1. Beginning 152,893,426.61 152,893,426.61
2. Purchase 91,206,361.68 91,206,361.68
3. Disposal 34,586,561.85 34,586,561.85
4. Other deduction 216,647.90 216,647.90
5. Ending 278,469,702.24 278,469,702.24
II. Accumulated depreciation
1. Beginning 52,080,040.60 52,080,040.60
2. Purchase 32,246,838.71 32,246,838.71
3. Disposal 7,382,368.87 7,382,368.87
4. Other deduction
5. Ending 91,709,248.18 91,709,248.18
III. Impairment provision
1. Beginning
2. Purchase
3. Disposal
4. Other deduction
5. Ending
III. Carrying amount 186,760,454.06 186,760,454.06
1. Ending 100,813,386.01 100,813,386.01
2. Beginning 152,893,426.61 152,893,426.61
17. Intangible assets
(1) Details of intangible assets
In RMB Yuan
Non-patent Software use Trademark use
Item Land use rights Patent Total
technology rights rights
I. Original cost
Beginning 2,237,966,691.60 85,556,571.30 7,695,744,860.28 845,391,055.17 211,864,157.55 11,076,523,335.90
Purchase 841,400.00 16,280,912.97 17,122,312.97
Internal
research and 891,781,541.36 891,781,541.36
development
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Increase in
8,751,791,175.80 3,812,679.22 2,412,758,750.00 11,168,362,605.02
business merger
Other
244,259.88 244,259.88
additions
Government
696,933.96 696,933.96
subsidies
Ending 2,237,966,691.60 85,556,571.30 17,340,158,977.44 865,031,973.28 2,624,622,907.55 23,153,337,121.17
II. Accumulated
amortization
Beginning 468,031,897.59 7,129,714.27 4,904,544,443.73 726,462,315.72 211,791,516.98 6,317,959,888.29
Accrual 23,244,982.66 4,515,887.14 492,517,355.98 17,725,650.40 100,531,614.60 638,535,490.78
Increase in
658,468,887.40 1,531,371.38 660,000,258.78
business merger
Ending 491,276,880.25 11,645,601.41 6,055,530,687.11 745,719,337.50 312,323,131.58 7,616,495,637.85
III. Impairment
provision
Beginning 288,560,268.76 23,617,923.17 312,178,191.93
Accrual 41,460,645.81 41,460,645.81
Increase in
114,723,135.98 114,723,135.98
business merger
Ending 444,744,050.55 23,617,923.17 468,361,973.72
IV 、 Carrying
amount
Ending 1,746,689,811.35 73,910,969.89 10,839,884,239.78 95,694,712.61 2,312,299,775.97 15,068,479,509.60
Beginning 1,769,934,794.01 78,426,857.03 2,502,640,147.79 95,310,816.28 72,640.57 4,446,385,255.68
As of June 30, 2023, intangible assets formed through internal research and development accounted for 71.94% of the year-end book
value of intangible assets (December 31, 2022: 56.28%).
As of June 30, 2023, there is no land use rights that have not completed the land use right certificate (December 31, 2022: Nil).
18. Development expenditure
In RMB Yuan
Deduction
Beginning Charged to income
Item Recognized as Ending balance
balance Statement of the Other deduction
intangible assets
current year
Automobile
723,211,177.47 1,063,209,112.26 568,748,628.02 891,781,541.36 69,615,120.74
Development
Total 723,211,177.47 1,063,209,112.26 568,748,628.02 891,781,541.36 69,615,120.74
19. Development expenditure
(1) Original book value of goodwill
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
Hebei Changan Automobile Co., Ltd 9,804,394.00 9,804,394.00
Nanjing Changan Automobile Co., Ltd
Deepal Automobile Technology Co., Ltd 1,799,533,524.87 1,799,533,524.87
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Total 9,804,394.00 1,799,533,524.87 1,809,337,918.87
(2) Provision for goodwill
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
Nanjing Changan Automobile Co., Ltd. 73,465,335.00 73,465,335.00
Total 73,465,335.00 73,465,335.00
20. Long-term deferred expenses
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
Long-term
26,375,422.17 330,568.52 1,468,484.08 25,237,506.61
deferred expenses
Total 26,375,422.17 330,568.52 1,468,484.08 25,237,506.61
21. Deferred tax assets and liabilities
(1) Deferred income tax assets that are not offset:
In RMB Yuan
Ending balance Beginning balance
Item Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
differences differences
Assets provision 3,335,103,631.55 500,307,251.00 3,278,951,051.51 491,238,489.39
Accrued expenses and
8,746,751,245.95 1,322,800,648.65 8,585,308,052.56 1,298,584,169.65
contingent liabilities
Unpaid tech development
expense and advertisement 148,198,861.26 22,229,829.19 372,397,166.51 55,859,574.98
expense
Deferred income 2,681,013,729.64 452,674,206.27 2,699,509,959.27 457,007,113.15
Unpaid salary and bonus and
6,041,961,732.14 913,093,121.89 4,831,140,039.89 725,797,840.01
others
Total 20,953,029,200.54 3,211,105,057.00 19,767,306,269.74 3,028,487,187.18
(2) Deferred income tax liabilities that are not offset:
In RMB Yuan
Ending balance Beginning balance
Item Taxable temporary Deferred tax Taxable temporary Deferred tax
differences liabilities differences liabilities
Changes in fair value of trading financial
392,544,668.53 58,881,700.28 358,180,218.36 53,727,032.75
assets
Fair value adjustment of business
9,556,125,001.53 1,433,418,750.23 204,733,319.00 30,709,997.85
combination not under common control
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Long-term equity investment 941,637,804.40 141,245,670.66 971,329,619.28 145,699,442.89
Other 43,149,109.32 8,198,330.77 46,001,784.40 6,900,267.67
Total 10,933,456,583.78 1,641,744,451.94 1,580,244,941.04 237,036,741.16
(3) Details of unrecognized deferred tax assets
In RMB Yuan
Item Ending balance Beginning balance
The deductible temporary difference 1,365,435,669.75 1,785,535,297.97
The deductible tax loss 10,857,072,476.10 3,908,340,793.95
Total 12,222,508,145.85 5,693,876,091.92
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.
(4) Maturity period for unrecognized deductible tax losses:
In RMB Yuan
Year Ending balance Beginning balance Notes
2023 719,486,343.29 719,486,343.29
2024 644,243,430.69 644,243,430.69
2025 669,056,651.63 669,056,651.63
2026 172,527,777.26 172,527,777.26
2027 and beyond 8,651,758,273.23 1,703,026,591.08
Total 10,857,072,476.10 3,908,340,793.95
22. Short-term loans
In RMB Yuan
Item Ending balance Beginning balance
Mortgage loans 29,000,000.00
Guaranteed loan 50,000,000.00
Total 50,000,000.00 29,000,000.00
As at 30 June 2023, there was no overdue short-term loan (as at 31 December 2022: Nil).
23. Trading financial liabilities
In RMB Yuan
Item Ending balance Beginning balance
Trading financial liabilities 37,813,520.40
Total 37,813,520.40
24. Notes payable
In RMB Yuan
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Item Ending balance Beginning balance
Commercial acceptance bill 2,778,006,144.76 5,001,155,687.84
Bank acceptance bill 30,934,066,264.26 17,071,638,176.99
Total 33,712,072,409.02 22,072,793,864.83
As at 30 June 2023, there were no significant accounts payable aged over one year (as at 31 December 2022: Nil).
25. Accounts payable
In RMB Yuan
Item Ending balance Beginning balance
Accounts payable 30,465,634,254.25 29,449,664,138.75
Total 30,465,634,254.25 29,449,664,138.75
As at 30 June 2023, there were no significant accounts payable aged over one year (as at 31 December 2022: Nil).
26. Contract liabilities
In RMB Yuan
Item Ending balance Beginning balance
Advance payment 6,085,144,617.15 4,808,762,223.46
Advance service payment 1,030,934,007.43 846,494,569.20
Total 7,116,078,624.58 5,655,256,792.66
27. Payroll payable
(1) Payroll payable
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
Short term salary
2,716,484,740.12 5,070,477,217.90 3,908,885,458.12 3,878,076,499.90
benefits
Defined contribution
88,857,749.73 427,650,480.66 393,425,847.42 123,082,382.97
plans
Early retirement
1,816,000.00 1,816,000.00
benefits
Total 2,807,158,489.85 5,498,127,698.56 4,302,311,305.54 4,002,974,882.87
(2) Short term salary benefits：
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
1. Salary, bonus, allowance
2,221,656,081.04 4,158,712,198.93 2,906,028,582.43 3,474,339,697.54
and subsidy
2. Employee benefit 50,756,371.68 187,911,611.89 231,383,764.66 7,284,218.91
3. Social insurance 33,848,460.18 317,201,669.69 290,720,761.46 60,329,368.41
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Medical insurance 21,350,192.95 268,524,262.03 246,361,315.68 43,513,139.30
Industrial injury
11,102,522.24 29,456,054.74 23,747,390.13 16,811,186.85
insurance
Maternity insurance 1,395,744.99 442,746.86 1,833,449.59 5,042.26
Supplementary
18,778,606.06 18,778,606.06
medical insurance
4. Housing accumulation
83,944,161.72 259,477,229.93 309,278,181.88 34,143,209.77
fund
5. Labor fund and employee
326,279,665.50 147,174,507.46 171,474,167.69 301,980,005.27
education fund
Total 2,716,484,740.12 5,070,477,217.90 3,908,885,458.12 3,878,076,499.90
(3) Defined contribution plans：
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
1. Basic retirement
79,031,084.59 405,052,440.21 374,117,320.86 109,966,203.94
security
2. Unemployment
9,826,665.14 22,598,040.45 19,308,526.56 13,116,179.03
insurance
Total 88,857,749.73 427,650,480.66 393,425,847.42 123,082,382.97
The salary, bonus, allowance and subsidy, employee benefits and other social insurances mentioned above are paid in time according
to related laws and regulations and sets of the Group.
28. Taxes payable
In RMB Yuan
Item Ending balance Beginning balance
Value-added tax 726,595,058.42 655,162,944.40
Consumption tax 427,033,929.08 378,822,293.63
Corporate income tax 261,659,659.74 550,250,134.24
City maintenance and construction tax 90,984,717.30 106,797,577.85
Others 40,516,904.58 58,913,132.20
Total 1,546,790,269.12 1,749,946,082.32
29. Other payables
In RMB Yuan
Item Ending balance Beginning balance
Interest payable 16,112,069.40 1,478,888.85
Dividend Payable 2,341,524,610.92 79,742.80
Other payables 6,104,890,752.47 6,081,207,793.02
Total 8,462,527,432.79 6,082,766,424.67
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
（1） Interest payable
In RMB Yuan
Item Ending balance Beginning balance
Interest on long-term loans with
installment payments and due repayment 22,222.21 562,222.18
of principal
Interest payable on short-term loans 89,847.20
Interest payable on corporate bonds 15,999,999.99 916,666.67
Total 16,112,069.40 1,478,888.85
（2） Dividend Payable
In RMB Yuan
Item Ending balance Beginning balance
Common stock dividends 2,341,414,868.12
Minority shareholder dividends 109,742.80 79,742.80
Total 2,341,524,610.92 79,742.80
（3） Other payables
In RMB Yuan
Item Ending balance Beginning balance
Payment for the purchase and construction of fixed
1,660,151,791.66 1,190,478,260.12
assets, intangible assets, and engineering deposit
Customer and supplier deposit 1,394,012,215.84 839,653,876.07
Advertising expenses 689,677,376.28 505,569,065.16
Storage and shipping fees 595,944,380.19 382,409,902.25
Treasury stock repurchase obligation 442,866,474.72 627,060,416.52
Repair and processing costs 272,324,171.31 278,765,596.52
National Supplementary Advance Appropriation 175,967,030.00 697,956,559.00
Advance payment for land and plant disposal 635,268,035.18
Other 873,947,312.47 924,046,082.20
Total 6,104,890,752.47 6,081,207,793.02
30. Non-current liability within 1 year
In RMB Yuan
Item Ending balance Beginning balance
Long-term loan within 1 year 4,000,000.00 604,000,000.00
Long-term payables within 1 year 244,429,325.65
Lease liabilities within 1 year 65,596,855.90 37,294,575.69
Total 69,596,855.90 885,723,901.34
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
31. Other current liabilities
In RMB Yuan
Item Ending balance Beginning balance
Accrued commercial discount payable 4,467,809,005.78 3,837,216,057.38
Accrued market development expense 976,607,722.67 1,004,950,610.70
Accrued transportation fee 803,463,091.70 728,264,657.72
Accrued technology royalty 650,010,691.12 534,463,454.23
Accrued integrated services fee 83,460,160.55 87,715,544.50
Accrued negative points for fuel
73,106,266.32 59,308,609.28
consumption
Accrued labor service fee 51,173,874.83 107,051,967.02
Accrued utilities 35,050,613.99 60,370,787.91
Others 250,614,221.08 207,702,978.88
Total 7,391,295,648.04 6,627,044,667.62
32. Long-term Loan
In RMB Yuan
Item Ending balance Beginning balance
Credit loan 80,000,000.00 640,000,000.00
Deduction: Loan within 1 year 4,000,000.00 604,000,000.00
Net Long-term Loan 76,000,000.00 36,000,000.00
As at June 30, 2023, the interest rates of the above loans were 1.00% (as at 31 December 2022: 1.00%-3.00%).
As at June 30, 2023, there is no overdue long-term loans (as at 31 December 2022: Nil).
33. Bonds payable
In RMB Yuan
Item Ending balance Beginning balance
Corporate bonds 999,558,490.56 999,528,301.88
Total 999,558,490.56 999,528,301.88
Our company publicly issued technology innovation company bonds (Phase 1) to professional investors in December 2022, with a face
value of RMB 1000000000.00 and a fixed coupon rate of 3%. The simple interest is paid annually from December 20, 2023 to 2027,
and the final redemption date is December 20, 2027.
34. Lease liabilities
In RMB Yuan
Item Ending balance Beginning balance
Lease liabilities 186,466,884.11 97,499,973.67
Less：Lease liabilities within 1 year 65,596,855.90 37,294,575.69
Net lease liabilities 120,870,028.21 60,205,397.98
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
35. Long-term payables
In RMB Yuan
Item Ending balance Beginning balance
Long-term payables 408,939,511.34
Special payables 136,176,629.42 144,579,238.78
Total 136,176,629.42 553,518,750.12
(1) Long-term payables:
In RMB Yuan
Item Ending balance Beginning balance
Purchase of fixed assets 653,368,836.99
Less：Long-term payables within 1 year 244,429,325.65
Total 408,939,511.34
(2) Special payables:
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
Intelligent manufacturing
54,122,972.00 42,324,009.53 44,438,445.62 52,008,535.91
project
Lightweight design of
14,410,557.94 390,000.00 1,962,400.84 12,838,157.10
automobile structure
Others 76,045,708.84 23,993,009.70 28,708,782.13 71,329,936.41
Total 144,579,238.78 66,707,019.23 75,109,628.59 136,176,629.42
36. Long-term payroll payable
In RMB Yuan
Item Ending balance Beginning balance
Net obligation of defined benefit plan 26,358,585.90 29,227,000.00
Early retirement 5,786,000.00 5,786,000.00
Total 32,144,585.90 35,013,000.00
37. Contingent liabilities
In RMB Yuan
Item Ending balance Beginning balance
Warranty 5,228,857,409.75 4,152,001,660.31
Contingent liabilities of contract
434,908,181.43 437,297,661.18
performance
Total 5,663,765,591.18 4,589,299,321.49
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
38. Deferred income
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
Government grants related to
222,169,206.66 63,820,286.00 72,095,887.20 213,893,605.46
assets
Government grants related to
125,399,342.96 11,700,000.00 450,000.00 136,649,342.96
gains
Total 347,568,549.62 75,520,286.00 72,545,887.20 350,542,948.42
Details of government grants are as follows:
In RMB Yuan
Liability Beginning balance Addition Deduction Ending balance
Related to assets: 222,169,206.66 63,820,286.00 9,985,144.93 62,110,742.27
Production and
166,416,924.20 63,820,286.00 9,985,144.93 62,110,742.27
construction subsidies
Other government
55,752,282.46
subsidies
Related to gains: 125,399,342.96 11,700,000.00 450,000.00
R&D technology
121,750,757.27 11,700,000.00 450,000.00
subsidies
Other government
3,648,585.69
subsidies
Total 347,568,549.62 75,520,286.00 10,435,144.93 62,110,742.27
39. Other non-current liabilities
In RMB Yuan
Item Ending balance Beginning balance
Advance service payment 2,217,804,236.36 1,728,721,535.34
Deduction: Advance service payment
1,030,934,007.43 846,494,569.20
within 1 year
Net other non-current liabilities 1,186,870,228.93 882,226,966.14
40. Share capital
In RMB Yuan
Changes（+，-）
Beginning Provident
Additional Stock Ending balance
balance fund Others
issued dividend
transfer
I. Shares with sales
675,775,474.00 (46,200,160.00) 629,575,314.00
restrictions
1. State-owned legal
515,311,738.00 515,311,738.00
person shares
2. Other domestic shares 159,248,366.00 (46,200,160.00) 113,048,206.00
Including: Domestic legal
person shares
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Domestic natural person
159,248,366.00 (46,200,160.00) 113,048,206.00
shares
3. Foreign shares 1,215,370.00 1,215,370.00
Including: Foreign legal
person shares
Foreign natural person
shares
II. Shares without sales
9,246,023,948.00 43,723,738.00 9,289,747,686.00
restrictions
1.Ordinary shares
7,604,409,171.00 43,723,738.00 7,648,132,909.00
denominated in RMB
2. Domestic listed foreign
1,641,614,777.00 1,641,614,777.00
shares
III. Total shares 9,921,799,422.00 (2,476,422.00) 9,919,323,000.00
41. Capital reserves
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
Share premium 6,485,177,332.59 286,327,307.00 7,193,909.31 6,764,310,730.28
Share-based payments 648,749,767.92 187,899,000.00 286,327,307.00 550,321,460.92
Capital reserve
transferred arising from 44,496,899.00 44,496,899.00
the old standards
reserve of equity
17,015,985.20 17,015,985.20
investments
Other capital reserves
1,337,366,701.06 5,395,781.70 663,566,110.70 679,196,372.06
(Note)
Total 8,532,806,685.77 479,622,088.70 957,087,327.01 8,055,341,447.46
Note : In 2023, the decrease in other capital reserves was mainly due to the transfer of changes in capital reserves under the equity
method accounting involved in the original holding of equity in Deepal Automobile Technology Co., Ltd. into the current period's
profit and loss.
42. Treasury stock
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
Treasury stock 627,060,416.52 184,193,941.80 442,866,474.72
Total 627,060,416.52 184,193,941.80 442,866,474.72
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
43. Other comprehensive income
In RMB Yuan
Amount for this reporting period
Deduct: other Amount
Deduct: amounts
comprehensiv attributa
transferred to
e income in ble to
income statement
Beginning the previous minority
Item which were Deduct: Ending balance
balance Amount period and Amount attributable interests
recognized in Income
before tax transferred to to owners
other tax
retained
comprehensive
earnings in
income in prior
the current
period
period
I. Other comprehensive income that cannot be
transferred to profit or loss under the equity 157,170,398.18 157,170,398.18
method
Change in net liability or assets from
(185,000.00) (185,000.00)
defined benefit plan
Other comprehensive income that
cannot be transferred to profit or loss under the (2,765,221.82) (2,765,221.82)
equity method
Changes in the fair value of other
160,120,620.00 160,120,620.00
equity instrument investments
II. Other comprehensive income will be
reclassified to profit or loss in subsequent (58,328,782.76) 47,734,187.34 47,734,187.34 (10,594,595.42)
period
Other comprehensive income that can
be transferred to profit or loss under the equity (75,815.98) (75,815.98)
method
Foreign currency translation difference (58,252,966.78) 47,734,187.34 47,734,187.34 (10,518,779.44)
Total 98,841,615.42 47,734,187.34 47,734,187.34 146,575,802.76
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
44. Special reserves
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
Safety fund 24,090,898.05 64,708,453.30 35,232,765.78 53,566,585.57
Total 24,090,898.05 64,708,453.30 35,232,765.78 53,566,585.57
45. Surplus reserves
In RMB Yuan
Item Beginning balance Addition Deduction Ending balance
Statutory surplus 3,528,137,635.53 3,528,137,635.53
Total 3,528,137,635.53 3,528,137,635.53
46. Retained earnings
In RMB Yuan
Item Current period Prior period
Retained earnings at beginning of the year 41,379,489,865.45 35,900,674,525.13
Add: Profits attributable to parent company for the
7,652,979,346.80 5,857,626,135.78
current year
Less: Ordinary share dividend of cash 2,341,414,868.12 1,778,856,191.54
Retained earnings at the end of year 46,691,054,344.13 39,979,444,469.37
47. Operating revenue and cost
In RMB Yuan
Amount for this period Amount for prior period
Item
Revenue Cost Revenue Cost
Main business 64,198,056,038.61 53,253,026,788.59 55,281,269,652.99 44,486,900,457.55
Other business 1,294,042,830.40 748,972,479.99 1,292,298,740.72 873,190,024.65
Total 65,492,098,869.01 54,001,999,268.58 56,573,568,393.71 45,360,090,482.20
48. Tax and surcharges
In RMB Yuan
Item Amount for this period Amount for prior period
Consumption tax 1,666,317,085.12 1,469,234,309.60
City maintenance and construction tax 208,432,679.24 194,046,087.99
Educational surcharge 140,534,177.17 133,244,356.31
Others 170,890,307.46 149,775,477.87
Total 2,186,174,248.99 1,946,300,231.77
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49. Operating expenses
In RMB Yuan
Item Amount for this period Amount for prior period
Sales service fee 1,248,854,504.34 1,151,982,258.69
Promotion, advertising fee 1,084,798,251.79 552,426,701.41
Payroll and welfare 430,787,399.64 297,621,384.05
Transportation and storage fees 220,838,227.15 205,973,233.78
Travelling expenses 47,325,735.92 30,218,731.48
Package expenses 11,749,644.92 28,619,986.39
Others 24,080,857.61 18,487,525.97
Total 3,068,434,621.37 2,285,329,821.77
50. General and administrative expenses
In RMB Yuan
Item Amount for this period Amount for prior period
Payroll and welfare 1,787,629,699.79 1,766,803,412.30
Depreciation and amortization 231,626,256.31 110,312,454.37
Traffic expenses and travelling expenses 34,511,835.46 21,235,281.45
Others 218,192,616.99 285,683,156.98
Total 2,271,960,408.55 2,184,034,305.10
51. Research and development expenses
In RMB Yuan
Item Amount for this period Amount for prior period
Payroll and welfare 1,349,892,332.55 819,010,682.93
Depreciation and amortization 1,015,646,669.62 614,117,321.15
Subcontract fee 287,631,512.09 272,218,189.13
Material fee 173,948,774.18 112,662,406.81
Test fee 64,510,633.02 17,479,289.63
Others 72,974,183.02 96,806,255.02
Total 2,964,604,104.48 1,932,294,144.67
52. Financial income
In RMB Yuan
Item Amount for this period Amount for prior period
Interest income 532,594,819.89 438,428,075.90
Less: Foreign exchange gain or loss 24,815,219.82 (40,733,323.13)
Interest expense 36,814,471.44 17,892,411.14
Others 17,697,023.74 23,270,638.90
Total 453,268,104.89 437,998,348.99
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
53. Other income
Government subsidies related to daily activities
In RMB Yuan
Item Amount for this period Amount for prior period
Production and construction subsidies 657,988,649.18 186,910,289.65
54. Investment income
In RMB Yuan
Item Amount for this period Amount for prior period
Long-term equity investment losses accounted for by the equity
(180,436,966.53) 78,821,605.75
method
Investment income from disposal of long-term equity investments 1.00
The investment income of financial asset held for trading during
1,406,842.07 2,690,400.00
its holding period
Dividend income from remaining investments in other equity
180,656,814.04 144,222,128.67
instruments
Gains from the remeasurement of the remaining equity at fair
2,128,305,938.85
value after the loss of control
Income generated from business combinations not under the same
5,021,482,128.74
control
Total 5,023,108,819.32 2,354,040,073.27
55. Fair value change
In RMB Yuan
Source of income from changes in fair value Amount for this period Amount for prior period
Financial assets held for trading 14,575,284.30 26,136,888.77
Financial liabilities held for trading (37,909,945.45)
Total (23,334,661.15) 26,136,888.77
56. Impairment loss of credit
In RMB Yuan
Item Amount for this period Amount for prior period
Bad debt for account receivable 15,463,066.50 10,913,106.06
Bad debt for other receivables 50,421.60 （138,419.44）
Total 15,513,488.10 10,774,686.62
57. Impairment loss on assets
In RMB Yuan
Item Amount for this period Amount for prior period
Impairment of inventory 110,345,479.11 72,131,985.60
Impairment of fixed assets 184,845,379.29 165,117,956.10
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Impairment of intangible assets 41,460,645.81 2,920,133.24
Impairment of contract assets 60,622,656.78 1,657,510.52
Total 397,274,160.99 241,827,585.46
58. Gain on disposal of assets
In RMB Yuan
Item Amount for this period Amount for prior period
Gain on disposal of fixed-assets 366,667,730.28 68,244,082.28
Total 366,667,730.28 68,244,082.28
59. Non-operating income
In RMB Yuan
Amount recognized in current
Item Amount for this period Amount for prior period period as non-recurring profit
and loss
Fines, penalties and others 93,295,575.81 54,366,637.51 93,295,575.81
Total 93,295,575.81 54,366,637.51 93,295,575.81
60. Non-operating expenses
In RMB Yuan
Amount recognized in current
Item Amount for this period Amount for prior period period as non-recurring profit
and loss
Donation 10,600,000.00 10,600,000.00
Vehicle reward 841,680.00 1,711,728.00 841,680.00
Fines and penalties 52,548.37 1,327,232.91 52,548.37
Others 2,004,732.65 1,831,254.32 2,004,732.65
Total 13,498,961.02 4,870,215.23 13,498,961.02
61. Income tax expense
(1) Table of income tax expense
In RMB Yuan
Item Amount for this period Amount for prior period
Current income tax expense 429,737,792.88 48,946,847.14
Deferred income tax expense (253,116,967.69) (152,226,972.88)
Total 176,620,825.19 (103,280,125.74)
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
(2) The relationship between profit before tax and income tax expense
In RMB Yuan
Item Amount for this period
Total profit 7,143,633,825.26
Tax at the applicable tax rate 1,071,545,073.79
Impact of different tax rates of subsidiaries 24,441,849.80
Adjustments to current income tax of previous period 20,812,467.28
Non-taxable income (28,463,044.30)
Usage previous deductible losses 164,951,569.37
Utilize previous deductible losses (16,643,751.06)
Profit or loss attributable to joint ventures and associates (723,007,804.69)
Additional deduction (337,015,535.00)
Income tax expense 176,620,825.19
62. Other comprehensive income
Please refer to notes VII, 43.
63. Notes to cash flow statement
(1) Items of cash received relating to other operating activities
In RMB Yuan
Item Amount for this period Amount for prior period
Interest income 527,001,902.34 438,428,075.90
Government grants 863,412,085.63 401,800,087.37
Others 362,804,407.92 561,189,492.27
Total 1,753,218,395.89 1,401,417,655.54
(2) Items of cash paid relating to other operating activities
In RMB Yuan
Item Amount for this period Amount for prior period
Selling expense 2,429,716,985.74 1,980,235,740.95
Administrative expense 617,746,243.11 569,553,555.35
Research and development expenses 1,384,809,950.23 609,764,742.34
Others 926,324,359.78 379,019,456.72
Total 5,358,597,538.86 3,538,573,495.36
(3) Items of cash received relating to other investing activities
In RMB Yuan
Item Amount for this period Amount for prior period
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Net cash received from business merger 6,216,944,276.29
Total 6,216,944,276.29
(4) Items of cash paid relating to other investing activities
In RMB Yuan
Item Amount for this period Amount for prior period
Cash transferred out from the loss of
815,126,333.76
control of the subsidiary
Total 815,126,333.76
(5) Items of cash received relating to other financing activities
In RMB Yuan
Item Amount for this period Amount for prior period
Withdraw for deposit of bill 362,339,945.61 715,239,432.26
Total 362,339,945.61 715,239,432.26
(6) Items of cash paid relating to other financing activities
In RMB Yuan
Item Amount for this period Amount for prior period
Payment for deposit of bill 377,810,786.49 669,560,830.95
Repurchase of restricted stocks 1,327,927.25
Others 39,385,976.28 29,669,861.07
Total 418,524,690.02 699,230,692.02
64. Supplementary information of cash flow statement
(1) Supplementary information of cash flow statement
In RMB Yuan
Supplementary information Amount for this period Amount for prior period
1. Cash flows from operating activities calculated by adjusting the
net profit
Net profit 6,967,013,000.07 5,839,023,367.10
Add: Impairment provision for assets 412,787,649.09 252,602,272.08
Depreciation of fixed assets 1,492,472,007.62 1,435,681,140.90
Right-of-use assets depreciation 32,246,838.71 16,605,322.98
Depreciation and amortization of investment real estate 113,355.78
Amortization of intangible assets 638,535,490.78 528,117,679.23
Amortization of long-term deferred expense 1,468,484.08 1,826,783.84
Increase in deferred income 65,085,141.07 (139,049,041.50)
Disposal income on fixed assets, intangible assets and
(366,667,730.28) (68,244,082.28)
others
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Income of fair value movement 23,334,661.15 (26,136,888.77)
Financial expense 36,814,471.44 17,892,411.14
Investment income (5,023,108,819.32) (2,354,040,073.27)
Increase in deferred tax assets (182,617,869.82) (154,489,446.55)
Decrease in deferred tax liabilities 1,404,707,710.78 2,262,473.67
Decrease in inventory (4,429,633,070.54) (244,183,357.63)
Decrease in operating payables 1,025,339,747.77 1,273,807,337.63
Increase in operating payables 4,665,879,442.66 (722,465,767.08)
Share-based payments cost 187,899,000.00 192,310,900.00
Others 3,787,202.55 715,388.71
Net cash flows from operating activities 6,955,456,713.59 5,852,236,420.20
2．Movement of cash and cash equivalents:
Ending balance of cash 64,153,666,049.54 51,032,267,488.15
Less: beginning balance of cash 52,491,435,047.74 49,517,916,834.99
Increase in cash and cash equivalents 11,662,231,001.80 1,514,350,653.16
(2) Cash and cash equivalents
In RMB Yuan
Item Ending balance Beginning balance
I. Cash
Including: Cash 1,886.16 32,155.77
Bank deposits that can be
64,133,735,374.29 52,455,913,791.28
readily used
Other monetary funds that can
19,928,789.09 35,489,100.69
be used for payment at any time
II. Ending balance of cash and cash
64,153,666,049.54 52,491,435,047.74
equivalents
65. The assets with ownership or right restricted
In RMB Yuan
Item Ending balance Explanation
Cash and cash equivalents 1,832,280,514.67 Acceptance bill deposit
Note receivables 6,379,455,146.47 Pledge for issuing bills payable
Fixed assets 28,900,540.24 Processing release procedures
Intangible assets 16,614,436.08 Processing release procedures
Total 8,257,250,637.46
66. Foreign Monetary Item
In RMB Yuan
Item Original Currency Exchange Rate Translated to RMB
Cash
Including: USD 29,760,695.54 7.2258 215,044,833.83
GBP 8,367,752.13 7.8771 65,913,620.30
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
EUR 3,968,271.98 9.1432 36,282,704.37
JPY 148,663,225.00 0.0501 7,448,027.57
RUB 7,733,842,927.23 0.0834 645,002,500.13
Accounts receivable
Including: USD 56,418.30 7.2258 407,667.35
EUR 3,523,830.00 7.8771 27,757,561.29
GBP 414,688.44 9.1432 3,791,579.34
Other receivables
Including: USD 1,318.04 7.2258 9,523.89
EUR 2,723,874.52 7.8771 21,456,231.98
GBP 49,632.42 9.1432 453,799.14
JPY 100,000.00 0.0501 5,010.00
Accounts Payable
Including: USD 6,995.00 7.2258 50,544.47
EUR 199,529.46 9.1432 1,824,337.76
GBP 29,760,695.54 7.2258 215,044,833.83
Other Payables 8,367,752.13 7.8771 65,913,620.30
Including: USD 3,968,271.98 9.1432 36,282,704.37
GBP 148,663,225.00 0.0501 7,448,027.57
67. Government grants
The government grants accounted by the Group with the net method offset the book value of relevant assets and related costs as follows:
In RMB Yuan
Amount for this period Amount for prior period
Government grants related to assets 62,110,742.27 132,421,192.00
Write down: Fixed assets 61,413,808.31 132,421,192.00
Intangible assets 696,933.96
Government grants related to income 50,967,519.78 177,846,131.22
Write down: Operating cost 23,614,843.48 73,489,574.95
Operating expenses 6,763,467.92 964,950.11
General and administrative expenses 8,254,895.38 10,761,122.82
Research and development expenses 12,334,313.00 92,433,583.34
Financial income 196,900.00
For other government grants, refer to notes V, 38 and 53.
VIII. The change of consolidation scope
1. Business combination not under the Same Control
（1） Business combinations not under common control that occurred in the current period
The Company originally held 40.66% equity in Deepal Automobile Technology Co., Ltd. (referred as “Deepal Auto”), which can have
a significant impact on it and is accounted for using the equity method. The Company has signed an Equity Transfer Agreement with
Chongqing Changxin Equity Investment Fund Partnership (Limited Partnership) (referred as “Changxin Fund”) and Chongqing
Liangjiang New Area Chengwei Equity Investment Fund Partnership (Limited Partnership) (referred as “Chengwei Fund”),
shareholders of Deep Blue Automobile, to acquire 10.34% of the equity of Deepal Auto for cash of RMB 1,331.6214 million, The
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
transaction completed equity delivery procedures on February 1, 2023. After the completion of the acquisition, the company held a
total of 51.00% equity in Deepal Auto. On the acquisition date, the company recognized a profit of RMB 5,021,482,128.74 from the
merger of enterprises not under the same control.
From the date of purchase to the end of the current period, the operating income of Deepal Auto was RMB 8,828,401,817.81, and the
net loss was RMB 1,058,521,570.86.
(2) Merger costs and goodwill
In RMB Yuan
Consolidation costs Deepal Auto
-- Cash 1,331,621,441.70
-- Fair value of non cash assets ——
--Fair value of debt issued or assumed ——
-- Fair value of equity securities issued ——
-- Fair value of contingent consideration ——
--Fair value of equity held before the purchase date at the
5,248,006,233.55
purchase date
--Other ——
Total consolidated costs 6,579,627,675.25
Minus: Fair value share of identifiable net assets obtained 4,780,094,150.38
The amount of goodwill/merger cost less than the fair value
1,799,533,524.87
share of identifiable net assets obtained
Method for determining the fair value of merger costs: income method
(3) The identifiable assets and liabilities of the purchased party on the purchase date
In RMB Yuan
Deepal Auto
Fair value on purchase date Book value on purchase date
Assets:
inventory 2,750,696,247.99 2,668,394,136.79
fixed assets 446,508,547.00 434,621,131.80
intangible assets 10,744,244,703.94 1,028,260,675.89
Total other current assets 14,258,866,595.00 14,258,866,595.00
Total other non current assets 1,604,398,095.47 1,605,804,945.65
Total Assets 29,804,714,189.40 19,995,947,485.13
Liabilities:
Total Current Liabilities 18,184,591,739.10 18,184,591,739.10
Total Non-current Liabilities 816,971,121.83 821,924,907.70
Total liabilities 19,001,562,860.93 19,006,516,646.80
Shareholders' (or owners') equity 10,803,151,328.47 989,430,838.33
Method for determining the fair value of identifiable assets and liabilities: asset based method
(4) Gains or losses arising from remeasuring equity held before the purchase date at fair value
Is there any transaction that achieves business merger through multiple transactions and obtains control during the reporting period
□ Yes √ No
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
2. Combination under the same control
□ Applicable √ Not Applicable
3. Counter purchase
□ Applicable √ Not Applicable
4. Disposing subsidiary
Whether there is a single disposal of the subsidiary company investment that is the loss of control of the situation
□ Applicable √ Not Applicable
5. Change of consolidation scope due to other reasons
□ Applicable √ Not Applicable
IX. Stake in other entities
1. Rights in subsidiaries
The subsidiaries of the Company are as follows：
Registered Total proportion of
Main operating shareholders (%)
Company name Registered place Nature of business capital (ten
place
thousand) Direct Indirect
I. The subsidiary formed by establishment or investment
Chongqing Changan International
Chongqing Chongqing Sales 20,375.64 100.00 -
Automobile Sales Co., Ltd.
Chongqing Changan Vehicle
Networking Technology Co., Chongqing Chongqing Lease 8,850.00 100.00 -
Ltd.
Chongqing Changan Special
Automobile Sales Co., Ltd Chongqing Chongqing Sales 2,000.00 50.00 -
(Note 1)
Chongqing Changan Automobile
Chongqing Chongqing Sales 3,000.00 99.00 1.00
Supporting Service Co., Ltd.
Chongqing Changan New Energy
Chongqing Chongqing R&D 2,900.00 100.00 -
Automobile Co. Ltd.
Chongqing Changan Europe
Turin, Italy Turin, Italy R&D EUR 1,738 100.00 -
Design Center Co., Ltd.
Changan United Kingdom R&D Nottingham, United Nottingham, United
R&D GBP 2,639 100.00 -
Center Co., Ltd. Kingdom Kingdom
Beijing Changan R&D Center
Beijing Beijing R&D 100.00 100.00 -
Co., Ltd.
Changan Japan Designing Center
Habin Habin R&D JYP1,000 100.00 -
Co.,Ltd
Changan United States R&D
Troy, United states Troy, United states R&D USD154 100.00 -
Center Co., Ltd.
Changan Automobile Russia Co., RUB
Moscow, Russia Moscow, Russia Sales 100.00 -
Ltd. 220,382
Changan Automobile Changan Automobile Changan Automobile
Changan Automobile Investment Investment Investment Investment
23,789.00 100.00
(Shenzhen) Co., Ltd. (Shenzhen) Co., (Shenzhen) Co., (Shenzhen) Co.,
Ltd. Ltd. Ltd.
Nanjing Changan New Energy
Automobile Sales & Service Nanjing Nanjing Sales 5,000.00 100.00 -
Co., Ltd.
Chongqing Anyi Automotive Chongqing Chongqing Sales 200.00 100.00 -
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Technology Service Co., Ltd.
Xiamen Changan New Energy
Automobile Sales & Service Xiamen Xiamen Sales 200.00 100.00 -
Co., Ltd.
Guangzhou Changan New Energy
Automobile Sales & Service Guangzhou Guangzhou Sales 400.00 100.00 -
Co., Ltd.
Chongqing Chehemei Technology
Chongqing Chongqing Sales 1,000.00 100.00
Co., Ltd.
Chongqing Changan Kaicheng
Automobile Technology Co., Chongqing Chongqing Sales 100,000.00 83.64
Ltd.
Chongqing Changan Automobile
Chongqing Chongqing R&D 9,900.00 100.00
Software Technology Co., Ltd.
Chongqing Chehemei Technology
Chongqing Chongqing Sales 4,900.00 100.00
Co., Ltd.
Chongqing Changan Technology
Chongqing Chongqing R&D 9,000.00 100.00
Co., Ltd
II. The subsidiary formed by business combination not under common control
Nanjing Changan Automobile
Nanjing Nanjing Manufacturing 60,181.00 84.73 -
Co., Ltd.(Note 2)
Chongqing Lingyao Automobile
Chongqing Chongqing Manufacturing 133,764.00 100.00 -
Co., Ltd.
Deepal Automobile Technology
Chongqing Chongqing Manufacturing 32,810.83 51.00
Co., Ltd
III. The subsidiary formed by business combination under common control
Hefei Changan Automobile
Hefei Hefei Manufacturing 227,500.00 100.00 -
Co.,Ltd.
Note 1: The remaining shareholders of Chongqing Changan Special Automobile Co., Ltd. made an agreement with the Company that
the remaining shareholders are to vote in accordance with the Company. The main financial and operating policies have been controlled
by the Company, so it is included in the scope of consolidated financial statements.
Note 2: The Company owns 91.53% of voting shares of Nanjing Changan Automobile Co., Ltd., the difference between proportion of
voting shares and proportion of shares held is due to the voting right consigned from minority shareholders.
As at June 30, 2023, the Group has no subsidiaries with important minority interests.
2. Transactions result in change of holding share proportion but no effect in control of subsidiaries
□ Applicable √ Not applicable
3. Stakes in joint ventures and associates
(1) Significant joint ventures or associates
Main Registered Total proportion of
Registered shareholders (%) Accounting
Company name operating Nature of business capital (ten
place treatment
place thousand) Direct Indirect
I. Joint ventures
Changan Ford Manufacture and sale of
Chongqing Chongqing USD24,100 50.00 - Equity
Automobile Co., Ltd. automobiles, and components
Changan Mazda Manufacture and sale of
Nanjing Nanjing USD11,681 47.50 - Equity
Automobile Co., Ltd. automobiles, and components
Changan Mazda
Manufacture and sale of
Engine Co., Ltd. Nanjing Nanjing USD20,996 50.00 - Equity
automobiles, and components
(Note 1)
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Jiangling Investment Investment Management, Industrial
Co., Ltd.
Nanchang Nanchang
Investment, and Asset Management
100,000.00 50.00 - Equity
II. Associates
Chongqing Changan Develop, product and sale of
Kuayue Automobile Chongqing Chongqing automobile and components; import 6,533.00 34.30 - Equity
Co., Ltd. and export goods.
Sale of Changan Kuayue’ s
Chongqing Changan
automobile and agricultural cars and
Kuayue Automobile Chongqing Chongqing
components. Technical advisory
300.00 34.30 - Equity
Sales Co., Ltd.
services for automobile
Beijing Fang’an Taxi
Co., Ltd.
Beijing Beijing For the car loan business 2,697.96 22.24 - Equity
Provide car loan; provide vehicle
loans and operating equipment loans
Chongqing Auto to car dealers, including the
Finance Co., ltd.
Chongqing Chongqing
construction loans of exhibition
476,843.10 28.66 - Equity
hall,spare parts loans and
maintenance equipment loans, etc.
Car sales, leasing, software
Nanjing Chelai Travel
Technology Co., Ltd.
Nanjing Nanjing technology development, technical 10,000.00 10.00 - Equity
services
Technology development
Hunan Guoxin
consulting, technical services,
Semiconductor Zhuzhou Zhuzhou
technology transfer in the field of
50,000.00 25.00 - Equity
Technology Co., Ltd.
power semiconductors
Beijing Wutong Technology development, technical
Chelian Technology Beijing Beijing consulting, technical services, 56,055.88 - 41.30 Equity
Co., Ltd. technology transfer
Anhe (Chongqing)
Equity Investment
Fund Management
Chongqing Chongqing Equity investment management 1,260.00 - 44.44 Equity
Co., Ltd.
Hangzhou Chelizi
Intelligent Hangzhou Hangzhou Car travel service 630.00 - 20.00 Equity
Technology Co., Ltd.
Pakistan Master Lahore, Lahore, Manufacture and sale of
Motors Co., Ltd. Pakistan Pakistan automobiles, and components
PKR75,000 30.00 Equity
Jiangling Holding Manufacture and sale of
Co., Ltd.
Nanchang Nanchang
automobiles, and components
200,000.00 25.00 - Equity
Nanjing Leading
Equity investment and related
Equity Investment Nanjing Nanjing
services
976,000.00 16.39 - Equity
Partnership
Nanjing Leading
Equity Investment Private equity investment fund
Management Co.,
Nanjing Nanjing
management and related services
1,000.00 15.00 - Equity
Ltd.
Zhongqi Chuangzhi 1,600,000.0
Technology Co., Ltd. Nanjing Nanjing R&D 3.125 - Equity
0
Chongqing Changxin
Zhiqi Private Equity
Investment Fund Chongqing Chongqing Equity Investment 50,200.00 49.80 - Equity
Partnership (Limited
Partnership)
AVATR. Co., Ltd Nanjing Nanjing R&D 164,466.00 40.9939 Equity
Chongqing Changan
Innovation Private
Equity Investment
Fund Partnership
Chongqing Chongqing Private equity investment funds 65,100.00 46.08 Equity
Enterprise (Limited
Partnership)
Development, production, sales, and
provision of related after-sales and
technical consulting services for
Time FAW Power
Battery Co., Ltd
Ningde Ningde lithium-ion batteries, power 200,000.00 - 10.00 Equity
batteries, ultra large capacity energy
storage batteries, and battery
systems
Western Car Network Chongqing Chongqing Internet information services; 10,000.00 - 5.00 Equity
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
(Chongqing) Co., Ltd Inspection and testing services
Anhe Chongqing
Dingfeng Automobile
Contract Private Chongqing Chongqing Private equity investment funds 15,436.00 40.00 - Equity
Equity Investment
Fund
Chongqing
Changxian Intelligent Chongqing Chongqing Software development and sales 25,500.00 45.00 - Equity
Technology Co., Ltd
(2) Key financial information of significant joint ventures
Changan Ford Automobile Co., Ltd. is the important joint venture to the Group and makes great influence in the share of profit 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.
In RMB Yuan
Beginning balance/Amount for prior
Ending balance/Amount for this period
period
Current assets 11,465,596,213.84 15,159,099,717.00
Including: cash and cash
4,625,531,681.38 6,818,327,323.00
equivalent
Non-current assets 20,108,880,589.29 20,859,166,829.00
31,574,476,803.13 36,018,266,546.00
Total assets 19,534,096,219.77 26,771,621,602.00
Non-current liabilities 9,705,223,801.71 7,716,321,374.00
Total liabilities 29,239,320,021.48 34,487,942,976.00
Minority interests
Equity attributable to owners 2,335,156,781.65 1,530,323,570.00
Net asset owned according to share
1,167,578,390.83 765,161,785.00
proportion
Adjustment （55,499,140.48） （52,702,433.15）
Book value of investment 1,112,079,250.35 712,459,351.85
Operating income 21,760,633,483.51 23,377,802,470.94
Financial expenses 131,187,660.08 228,432,281.92
Income tax expense 592,223,920.46 158,336,533.41
Net profit 799,233,915.94 1,045,203,295.40
(3) The financial status of the less important joint ventures and associates
In RMB Yuan
Ending balance Beginning balance
Joint venture:
Total book value of the investment 4,118,225,763.64 4,067,976,150.23
Total amount calculated by shareholding
proportion
--Net profit 50,249,613.41 340,098,900.17
--Other comprehensive income
--Total comprehensive income 50,249,613.41 340,098,900.17
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Associates:
Total book value of the investment 8,558,605,302.28 9,626,226,954.20
Total amount calculated by shareholding
proportion
--Net profit (630,303,537.91) (784,138,202.60)
--Other comprehensive income 146,228.18
--Total comprehensive income (630,303,537.91) (783,991,974.42)
(4) Excessive losses incurred by joint ventures or associates
As at 30 June 2023, since the Group has no obligation to undertake the extra loss of Chongqing Changan Kuayue Automobile Sales
Co., Ltd, Jiangling Holdings Co., Ltd. When extra loss occurs, the Group writes down the long-term investment to zero without
recognizing the extra loss.
X. Risks associated with financial instruments
1. Classification of financial instruments
As at balance sheet day, the book values of financial instruments are as follows:
Financial assets
In RMB Yuan
Financial assets Financial assets
measured at fair value measured at fair value
Financial assets
and whose changes and whose changes are
2023.6.30 measured at amortized Total
are recorded in the recorded in Other
cost
current profit and loss comprehensive income
(standard required) (specified)
Cash 65,985,946,564.21 65,985,946,564.21
Financial assets for
262,239,446.37 262,239,446.37
trading
Notes receivable 33,963,917,823.31 33,963,917,823.31
Accounts receivable 2,477,017,799.35 2,477,017,799.35
Other receivables 924,635,940.20 924,635,940.20
Other current assets 14,765,170.48 14,765,170.48
Investment in other
489,950,000.00 489,950,000.00
equity instrument
Total 262,239,446.37 103,366,283,297.55 489,950,000.00 104,118,472,743.92
In RMB Yuan
Financial assets
Financial assets measured
measured at fair value
Financial assets at fair value and whose
and whose changes are
2022.12.31 measured at amortized changes are recorded in Total
recorded in the current
cost Other comprehensive
profit and loss
income (specified)
(standard required)
Cash 53,530,183,827.34 53,530,183,827.34
Financial assets for
280,315,571.09 280,315,571.09
trading
Notes receivable 35,849,660,652.96 35,849,660,652.96
Accounts receivable 3,068,414,415.29 3,068,414,415.29
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Other receivables 861,671,518.62 861,671,518.62
Other current assets 745,970.48 745,970.48
Investment in other
489,950,000.00 489,950,000.00
equity instrument
Total 280,315,571.09 93,310,676,384.69 489,950,000.00 94,080,941,955.78
Financial liabilities
In RMB Yuan
2023.6.30 2022.12.31
Short-term loans 50,000,000.00 29,000,000.00
Trading financial liabilities 37,813,520.40 -
Notes payable 33,712,072,409.02 22,072,793,864.83
Accounts payable 30,465,634,254.25 29,449,664,138.75
Other payables 8,286,560,402.79 4,749,541,830.49
Non-current liabilities due within 1 year 69,596,855.90 885,723,901.34
Long-term loan 76,000,000.00 36,000,000.00
Lease liabilities 120,870,028.21 60,205,397.98
Long-term payables 408,939,511.34
Bonds payable 999,558,490.56 999,528,301.88
Total 73,818,105,961.13 58,691,396,946.61
2. Transfer of financial assets
The transferred financial assets that entirely derecognized but continuing involved
As at June 30, 2023, the book value of the bank acceptance bill that the Group has endorsed to the supplier to settle accounts payable
is RMB 5,501,662,863.68 (December 31, 2022: RMB 5,294,424,281.62). On June 30, 2023, its maturity date is 1 to 6 months.
According to the relevant provisions of the "Negotiable Instruments Law", if the accepting bank refuses to pay, its holder has the right
to recourse against the Group ("continued involvement "). The Group believes that the Group has transferred almost all of its risks and
rewards, and therefore, terminates the confirmation of the book value of the settlement accounts payable and the related accounts
payable. The maximum loss and undiscounted cash flow of continuing involvement and repurchase are equal to its book value. The
Group believes that continued involvement in fair value is not significant.
In the first half of 2023, the Group did not recognize gains or losses on its transfer date. The Group shall continue to be involved in the
proceeds or expenses of the year in which the recognition of financial assets has been terminated and the cumulative recognition thereof.
Endorsements occur roughly and evenly during the year.
3. Risks of financial instruments
The Group faces risks of various financial instruments in its daily activities, mainly including credit risk, liquidity risk and market risk
(including exchange rate risk, interest rate risk and price risk). The main financial instruments of the Group include monetary funds,
equity investments, loans, bills receivable, accounts receivable, bills payable, accounts payable, lease liabilities, bonds payable etc.
The risks associated with these financial instruments and the risk management strategies adopted by the Group to reduce these 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.
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
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.
Other financial assets of the Group include commercial acceptance bills receivable, accounts receivable, other receivables, etc. The
credit risk of these financial assets and contract assets comes from counterparty default, and the maximum risk exposure is equal to the
carrying amount of these instruments. In 2022, there was no credit risk arising from financial guarantee.
Since the Group only trades with approved and reputable customers, there is no need for collateral. Credit risk is centralized and
managed according to customers. As at the balance sheet date, the Group has a specific concentration of credit risks. 33.67% of the
Group's accounts receivable (December 31, 2022: 56.83%) 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.
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.
A parameter for measuring expected credit losses
According to whether the credit risk has significantly increased and whether the credit impairment has occurred, the Group measures
the impairment provision for different assets with the expected credit loss of 12 months or the whole duration respectively. The key
parameters of expected credit loss measurement include default probability, default loss rate and default risk exposure. The Group takes
into account the quantitative analysis and forward-looking information of historical statistical data (such as counterparty rating,
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
guarantee method and types of collateral, repayment method, etc.) to establish default probability, default loss rate and default risk
exposure models.
The relevant definition is as follows:
probability of default is the probability that the debtor will not be able to meet its repayment obligations in the next 12 months or
throughout the remaining period. The default probability of the Group is adjusted based on the results of the historical credit loss model
and forward-looking information is added to reflect the default probability of the debtor in the current macroeconomic environment.
the default loss rate refers to the Group's expectation of the extent of losses from default risk exposure. Default loss rates also vary
depending on the type of counterparty, the type and priority of recourse, and the collateral. The default loss rate is the percentage of
the risk exposure loss at the time of default, calculated on the basis of the next 12 months or the whole duration;
default exposure is the amount that should be paid to the Group at the time of default over the next 12 months or throughout the
remaining duration.
The assessment of a significant increase in credit risk and the calculation of expected credit losses involve forward-looking information.
Through the analysis of historical data, the Group identifies the key economic indicators that affect the credit risks and expected credit
losses of each business type.
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.
Market risk
Interest rate risk
The Group’s revenue and operating cash flows are seldomly influenced by the interest fluctuation. As at 30 June 2023, the Group’s
loans and bonds are bearing fixed interest rate and the Group is not hedging the risk currently.
Foreign currency risk
The Group’s exposures to fluctuation in foreign currency exchange rate mainly arise from operating activities where transactions are
settled in currencies other than the units' functional currency and net investment to offshore subsidiary.
In 30 June, 2022, the Group only has limited transactional currency exposures of its total revenue that is valued in currencies other than
the units' functional currency. 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 June 30, 2023, the Group's listed equity instrument
investment (Note VII 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.
In RMB Yuan
Carrying amount of equity Change in fair Increase/(decrea
investments value se) in equity
2023.6.30
Shanghai- Equity investment included in financial
assets at 98,889,450.00 5% 4,202,801.63
fair value through profit or loss
Shanghai- Equity investment included in financial
98,889,450.00 (5%) (4,202,801.63)
assets at
127
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
fair value through profit or loss
Shenzhen- Equity investment included in financial
assets at 163,349,996.37 5% 6,942,374.85
fair value through profit or loss
Shenzhen- Equity investment included in financial
assets at 163,349,996.37 (5%) (6,942,374.85)
fair value through profit or loss
2022.12.31
Shanghai- Equity investment included in financial
assets at 126,112,500.00 5% 5,359,781.25
fair value through profit or loss
Shanghai- Equity investment included in financial
assets at 126,112,500.00 (5%) (5,359,781.25)
fair value through profit or loss
Shenzhen- Equity investment included in financial
assets at 125,052,628.80 5% 5,314,736.72
fair value through profit or loss
Shenzhen- Equity investment included in financial
assets at 125,052,628.80 (5%) (5,314,736.72)
fair value through profit or loss
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 30, June 2023.
The Group’s leverage ratio on the balance sheet date is as follows:
June 30, 2023 December 31, 2022
Leverage ratio 58.90% 56.90%
XI. Disclosure of fair value
1. Assets and liabilities measured at fair value
June 30, 2023
In RMB Yuan
Input measured at fair value
Quoted price in Important and Important but
active market observable input unobservable input Total
(The first level) (The second level) (The third level)
Trading financial assets 262,239,446.37 262,239,446.37
Equity instrument investment 262,239,446.37 262,239,446.37
Other equity instrument investments 489,950,000.00 489,950,000.00
Trading financial liabilities 37,813,520.40 37,813,520.40
Total 262,239,446.37 37,813,520.40 489,950,000.00 790,002,966.77
128
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
December 31, 2022
In RMB Yuan
Input measured at fair value
Quoted price in Important and Important but
active market observable input unobservable input Total
(The first level) (The second level) (The third level)
Trading financial assets 126,112,500.00 154,203,071.09 280,315,571.09
Equity instrument investment 126,112,500.00 125,052,628.80 251,165,128.80
Derivative financial assets 29,150,442.29 29,150,442.29
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
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.
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 30 June 2023, 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 instrument investments are estimated at fair value using the market method based
on unobservable market prices or interest rate assumptions. 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
2023.6.30 489,950,000.00 Market approach Comparable transaction value multiplier
2022.12.31 489,950,000.00 Market approach Comparable transaction value multiplier
XII. Related party relationships and transactions
1. Parent company of the Company
129
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Proportion of Proportion of
Place of
Parent company Nature of the business Registered capital shares in the voting rights in the
registration
Company (%) company (%)
China Changan Manufacture and sale of
Automobile Group Beijing automobiles, engine, and 6,092,273,400.00 20.80% 20.80%
Co ,Ltd. components
The Final controlling party is China South Industries Group corporation
2. Subsidiaries
See subsidiaries in IX（1）. Stake in other entities.
3. Joint ventures and associates
See Joint ventures and associates in IX（3） Stake in other entities.
4. Other related parties
Related parties Relationship
Chongqing Changan Intelligent Industrial Technology Service Co., Ltd. Controlled by the same ultimate holding company
Chongqing Changan Construction Co., Ltd. Controlled by the same ultimate holding company
Chongqing Changan industry (Group) Co., Ltd Controlled by the same ultimate holding company
Chongqing Changan Real Estate Development Co., Ltd Controlled by the same ultimate holding company
Chongqing Yihong Engineering Plastic Products Co., Ltd. Controlled by the same ultimate holding company
Chongqing Xiyi Automobile Connecting Rod Co., Ltd. Controlled by the same ultimate holding company
Chongqing Wanyou Zunda Automobile Sales & Service Co., Ltd. Controlled by the same ultimate holding company
Chongqing Wanyou Economic Development Co., Ltd. Controlled by the same ultimate holding company
Chongqing Wanyou Xingjian Auto Sales & Service 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 Changan Property Management Co., Ltd. Controlled by the same ultimate holding company
Chongqing Qingshan Transmission Sales Co., Ltd. Controlled by the same ultimate holding company
Chongqing Shangfang Automobile Fittings Co., Ltd. Controlled by the same ultimate holding company
Chongqing Qingshan Industrial Co., Ltd Controlled by the same ultimate holding company
Chongqing Construction Tongda Industrial Co., Ltd. Controlled by the same ultimate holding company
Chongqing Jianshe Mechanical & Electrical Equipment Co., Ltd. Controlled by the same ultimate holding company
Chongqing Changrong Machinery Co., Ltd. Controlled by the same ultimate holding company
Chongqing Jianshe Automobile Air-conditioner Co., Ltd. Controlled by the same ultimate holding company
Chongqing Jialing Yimin Special Equipment Co., Ltd. Controlled by the same ultimate holding company
Chongqing Fuji Supply Chain Management Co., Ltd Controlled by the same ultimate holding company
Chongqing Dajiang Jiexin Forging Co., Ltd. Controlled by the same ultimate holding company
Chongqing Anfu Automobile Co., Ltd. Controlled by the same ultimate holding company
China Changan Automobile Group Tianjin Sales Co., Ltd Controlled by the same ultimate holding company
China Changan Automobile Group Hefei Investment Co., Ltd Controlled by the same ultimate holding company
China South Industries Group Commercial Factoring Co., Ltd. Controlled by the same ultimate holding company
China Ordnance Equipment Group Finance Leasing Co., Ltd Controlled by the same ultimate holding company
Yunnan Xiyi Industries Co., Ltd. Controlled by the same ultimate holding company
Yunnan Wanyou Automobile Sales and Service Co., Ltd Controlled by the same ultimate holding company
Yaan Wanyou Automobile Sales and Service Co., Ltd Controlled by the same ultimate holding company
130
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Related parties Relationship
Southwest Ordnance Industry Chongqing Environmental Protection
Controlled by the same ultimate holding company
Research Institute Co., Ltd.
Wanyou Automobile Investment Co., Ltd Controlled by the same ultimate holding company
Sichuan Ningjiang Shanchuan Machinery Co., Ltd Controlled by the same ultimate holding company
Sichuan Jianan Industrial Co., Ltd Controlled by the same ultimate holding company
Panzhihua Wanyou Automobile Sales and Service Co., Ltd Controlled by the same ultimate holding company
Luzhou Wanyou Automobile Service Co., Ltd Controlled by the same ultimate holding company
Longchang Shanchuan Precision Welded Tube Co., Ltd. Controlled by the same ultimate holding company
Jiangsu Wanyou Automobile Sales and Service Co., Ltd Controlled by the same ultimate holding company
Hubei Xiaogan Huazhong Car Lamp Co., Ltd Controlled by the same ultimate holding company
Hubei Huazhong Marelli Automotive Lighting Co., Ltd Controlled by the same ultimate holding company
Harbin Dongan Automotive Engine Manufacturing Co., Ltd Controlled by the same ultimate holding company
Harbin Dongan Automotive Power Co., Ltd Controlled by the same ultimate holding company
Guizhou Wanyou Automobile 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
Chengdu Wanyou Xiangyu Automobile Sales and Service Co., Ltd Controlled by the same ultimate holding company
Chengdu Wanyou Automobile Trading Service Co., Ltd Controlled by the same ultimate holding company
Chengdu Wanyou Automobile Sales and Service Co., Ltd Controlled by the same ultimate holding company
Chengdu Wanyou Trading Co., Ltd Controlled by the same ultimate holding company
Chengdu Wanyou Filter Co., Ltd Controlled by the same ultimate holding company
Chengdu Lingchuan Automotive Fuel Tank 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 Huachuan Electric Equipment Co., Ltd Controlled by the same ultimate holding company
Ordnance Equipment Group Finance Co., Ltd Controlled by the same ultimate holding company
Beijing Beiji Electromechanical Industry Co., Ltd Controlled by the same ultimate holding company
Bazhong Wanyou Automobile Sales and Service Co., Ltd Controlled by the same ultimate holding company
Anhui Wanyou Automobile Sales and Service Co., Ltd Controlled by the same 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
Chongqing Lingchuan Auto Parts Manufacturing Technology Co., Ltd. Participated by the Ultimate holding company
Chongqing Hanon Jianshe Automotive Thermal Systems Co., Ltd. Participated by the Ultimate holding company
Chongqing Dajiang Yuqiang Plastic Co., Ltd. Participated by the Ultimate holding company
Dajiang Yapp Automotive Systems Co., Ltd. Participated by the Ultimate holding company
Chongqing Dajiang Guoli Precision Machinery Manufacturing Co., Ltd. Participated by the Ultimate holding company
Chongqing Dajiang Tongyang Plastics Co., Ltd. Participated by the Ultimate holding company
China Ordnance Equipment Group Human Resources Development
Participated by the Ultimate holding company
Center
China Ordnance News Participated by the Ultimate holding company
Changan Laisi (Chongqing) robot intelligent equipment Co., Ltd Participated by the Ultimate holding company
Tiannak Lingchuan (Chongqing) exhaust system Co., Ltd Participated by the Ultimate holding company
South Inter Air-conditioner Co.,Ltd. Participated by the Ultimate holding company
South Tianhe Chassis System Co., Ltd. Participated by the Ultimate holding company
CSM Faurecia Automotive Parts Co., Ltd. Participated by the Ultimate holding company
GKN HUAYU Driveline Systems (Chongqing) Co., Ltd Participated by the Ultimate holding company
United Automotive Electronics (Chongqing) Co., Ltd Participated by the Ultimate holding company
Lear Changan (Chongqing) Automotive System Co., Ltd Participated by the Ultimate holding company
131
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Related parties Relationship
Hunan Tianyan Machinery Co., Ltd Participated by the Ultimate holding company
Hafei Automobile Co., Ltd Participated by the Ultimate holding company
Chengdu Zhongzi Guangming Catalytic Technology Co., Ltd Participated by the Ultimate holding company
Chengdu Ningjiang Zhaohe Automotive Parts Co., Ltd Participated by the Ultimate holding company
Beijing Zhongbing Insurance Brokerage Co., Ltd. Participated by the Ultimate holding company
Ald Fortune Auto Leasing & Renting (Shanghai) Co., Ltd. Companies in which the company participates
Nanjing LingHang Technology Co., Ltd. Companies in which the company participates
Nanjing Chelai Travel Technology Co., Ltd Companies in which the company participates
Jiangling Automobile Co., Ltd Companies in which the company participates
Beijing Wutong Chelian Technology Co., Ltd. Companies in which the company participates
5. Related-party transaction
(1) Transactions of goods and services
Goods purchased and services received
In RMB Yuan
Related parties Nature of Current amount Approved Whether it Prior-period
the transaction exceeds the amount
transaction amount transaction
amount
Changan Mazda Automobile Co., Accept
1,270,637.36 - Yes -
Ltd labor
Procurement
Jiangling Holdings Co., Ltd. 514,070,488.27 8,778,224,627.96 No 585,345.00
of parts
Nanjing Chelai Travel Technology Accept
15,222.66 114,017.07 No -
Co., Ltd labor
Purchasing
parts and
Deepal Automobile Technology
accepting 666,172,597.14 1,510,689,568.63 No 716,672,719.94
Co., Ltd
labor
services
Purchasing
parts and
Beijing Wutong Chelian
accepting 32,740,169.65 194,226,725.34 No 67,885,814.09
Technology Co., Ltd.
labor
services
Anhui Wanyou Automobile Sales Accept
2,622,805.44 2,514,824.71 Yes 2,284,126.26
Service Co., Ltd. labor
Chengdu Huachuan Electric Procurement
265,398,399.77 832,589,256.66 No 201,518,601.15
Equipment Co., Ltd. of parts
Chengdu Ningjiang Zhaohe
Procurement
Automobile Components Co., 303,637.08 9,343,729.88 No 7,248,464.81
of parts
Ltd.
Chengdu Wanyou Trading Co., Accept
44,034.79 85,826.66 No 22,527.44
Ltd labor
Chengdu Wanyou Automobile Accept
826,173.26 119,774.35 Yes 368,483.54
Sales and Service Co., Ltd labor
132
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Related parties Nature of Current amount Approved Whether it Prior-period
the transaction exceeds the amount
transaction amount transaction
amount
Chengdu Wanyou Auto Trade Accept
3,136,714.77 7,373,745.99 No 5,421,148.49
Service Co., Ltd. labor
Chengdu Wanyou Xiangyu Auto Accept
8,781,051.72 3,797,209.13 Yes 6,376,107.26
Sales and Service Co., Ltd. labor
Guizhou Wanyou Auto Sales and Accept
6,496,124.73 7,491,378.51 No 6,881,968.71
Service Co., Ltd. labor
Purchasing
parts and
Harbin Dongan Auto Engine Co.,
accepting 201,477,650.66 600,127,415.35 No 263,267,944.07
Ltd.
labor
services
Harbin Dongan Automotive Procurement
286,555,317.12 697,042,854.91 No 653,853,009.25
Engine Manufacturing Co., Ltd. of parts
Hunan Tianyan Machinery Co., Procurement
59,035,655.33 8,302,082.10 Yes 2,617,013.13
Ltd of parts
Jiangsu Wanyou Automobile Accept
3,530,670.99 4,080,339.68 No 2,015,418.16
Sales Service Co., Ltd. labor
Luzhou Wanyou Automobile Accept
208,109.30 569,722.83 No 307,508.81
Service Co., Ltd. labor
CSM Faurecia Automotive Parts Procurement
293,507,822.63 1,597,097,938.30 No 252,639,803.32
Co., Ltd. of parts
Southern Tianhe Chassis Systems Procurement
547,250,941.45 1,899,968,522.28 No 459,025,340.96
Co., Ltd of parts
South Inter Air-conditioner Procurement
324,599,906.01 1,348,876,494.10 No 202,161,276.20
Co.,Ltd. of parts
Panzhihua Wanyou Auto Sales & Accept
148,176.37 661,829.31 No 257,324.00
Service Co., Ltd. labor
Purchasing
parts and
Sichuan Jian'an Industrial Co., Ltd accepting 569,748,423.73 1,696,226,350.55 No 534,985,354.14
labor
services
Sichuan Ningjiang Shanchuan Procurement
250,225,299.36 630,594,357.18 No 159,762,835.80
Machinery Co, Ltd. of parts
Ya'an Wanyou Auto Sales and Accept
1,014,389.55 1,056,331.27 No 846,681.30
Service Co., Ltd. labor
Yunnan Wanyou Auto Sales and Accept
10,507,634.88 16,222,898.50 No 13,728,699.67
Service Co., Ltd. labor
China Changan Automobile Accept
2,515,157.69 812,228.08 Yes 692,160.09
Group Tianjin Sales Co., Ltd. labor
Chongqing Qingshan Industrial Procurement
4,247,550,166.24 No 3,637,088,928.81
Co., Ltd of parts 11,215,297,928.42
Chongqing Wanyou Ducheng Accept
973,308.83 2,870,066.24 No 2,584,670.89
Auto Sales Service Co., Ltd. labor
Chongqing Wanyou Xingjian Accept
810,225.03 555,113.26 Yes 716,753.30
Auto Sales & Service Co., Ltd. labor
Purchasing
parts and
Chongqing Wanyou Economic
accepting 14,785,490.80 59,570,534.71 No 40,779,608.17
Development Co., Ltd.
labor
services
133
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Related parties Nature of Current amount Approved Whether it Prior-period
the transaction exceeds the amount
transaction amount transaction
amount
Chongqing Wanyou Zunda
Procurement
Automobile Sales & Service Co., 38,252.00 - Yes 114.95
of parts
Ltd.
Chongqing Changan Minsheng Accept
2,685,849,489.33 8,082,612,973.07 No 1,760,470,945.02
Logistics Co. Ltd. labor
Beijing Beiji Mechanical and Procurement
55,471.89 60,001.39 No 18,410.18
Electrical Industry Co., Ltd. of parts
Chengdu Zhongzi Guangming Procurement
277,552,589.96 51,855,210.76 Yes -
Catalytic Technology Co., Ltd of parts
Chengdu Jialing Huaxi Optical & Procurement
501,828.63 4,336,389.65 No 1,538,164.71
Precision Machinery Co., Ltd. of parts
Chengdu Lingchuan Vehicle Oil Procurement
22,896,846.34 53,576,855.25 No 18,148,367.15
Tank Co., Ltd. of parts
Purchasing
parts and
Chengdu Wanyou Filter Co., Ltd. accepting 60,828,232.32 256,871,985.48 No 76,561,417.56
labor
services
Hubei Huazhong Marelli Procurement
425,498,458.56 3,093,309,593.37 No 473,880,131.14
Automobile Lighting Co., Ltd. of parts
Hubei Xiaogan Huazhong Car Procurement
62,177,934.16 228,392,134.24 No 51,876,744.41
Lamp Co., Ltd of parts
Procurement
Yunnan Xiyi Industries Co., Ltd. 65,386,027.01 174,256,873.80 No 53,637,731.83
of parts
China Ordnance Equipment
Accept
Group Human Resources 5,377.35 - Yes -
labor
Development Center
China Ordnance Equipment
Accept
Group Commercial Factoring Co., 76,040.43 123,178.62 No -
labor
Ltd
Chongqing Dajiang Jiexin Procurement
916,320.42 4,355,976.69 No 1,845,245.27
Forging Co., Ltd of parts
Chongqing Dajiang Yuqiang Procurement
196,038.83 138,773.63 Yes 344,226.01
Plastic Co., Ltd. of parts
Chongqing Jianshe Automobile Procurement
30,929,139.50 110,627,918.48 No 38,555,506.77
Air-conditioner Co., Ltd. of parts
Chongqing Construction Tongda Procurement
27,756,255.26 70,281,670.64 No 16,331,004.84
Industrial Co., Ltd. of parts
Chongqing Nexteer Steering Procurement
482,284,076.02 1,872,399,642.19 No 400,416,384.73
System Co.,Ltd. of parts
Chongqing Shangfang Procurement
56,847,951.59 182,911,907.96 No 52,075,600.58
Automobile Fittings Co., Ltd. of parts
Chongqing Qingshan Procurement
29,495,148.15 47,903,411.54 No 18,687,536.60
Transmission Sales Co., Ltd. of parts
Chongqing Yihong Engineering Procurement
35,614,480.95 71,088,788.77 No 14,903,524.92
Plastic Products Co., Ltd. of parts
Chongqing Changan industry Accept
6,981,144.30 16,940,554.44 No 6,341,330.87
(Group) Co., Ltd labor
Chongqing Changan Property Accept
5,556,152.45 11,211,104.18 No 1,928,927.46
Management Co., Ltd. labor
Beijing Zhongbing Insurance Procurement
179,456.11 284,148.54 No 45,762.00
Brokerage Co., Ltd. of parts
134
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Related parties Nature of Current amount Approved Whether it Prior-period
the transaction exceeds the amount
transaction amount transaction
amount
Lear Changan (Chongqing) Procurement
186,552,716.15 671,258,752.46 No 229,595,709.77
Automotive System Co., Ltd of parts
Purchasing
parts and
United Automotive Electronics
accepting 489,858,832.36 1,429,975,183.76 No 411,241,559.03
(Chongqing) Co., Ltd
labor
services
GKN HUAYU Driveline Systems Procurement
175,750,765.78 790,510,541.08 No 210,241,479.79
(Chongqing) Co., Ltd. of parts
Nanjing LingHang Technology Accept
33,388.14 784,986.19 No 304,110.83
Co., Ltd. labor
Tiannak Lingchuan (Chongqing) Procurement
23,033,580.78 94,817,712.44 No 30,942,900.59
exhaust system Co., Ltd of parts
Changan Laisi (Chongqing) robot Procurement
1,756,066.31 6,080,910.24 No -
intelligent equipment Co., Ltd of parts
Purchasing
parts and
Chongqing Dajiang Tongyang
accepting 251,637,351.95 642,430,775.12 No 191,978,923.57
Plastics Co., Ltd.
labor
services
Purchasing
Chongqing Dajiang Guoli parts and
Precision Machinery accepting 243,266,094.33 602,237,925.04 No 167,524,798.04
Manufacturing Co., Ltd. labor
services
Dajiang Yapp Automotive Procurement
218,898,950.45 639,666,919.95 No 167,401,222.48
Systems Co., Ltd. of parts
Chongqing Hanon Jianshe
Procurement
Automotive Thermal Systems 75,943,637.67 262,419,840.76 No 71,943,120.72
of parts
Co., Ltd.
Chongqing Lingchuan Auto Parts
Procurement
Manufacturing Technology Co., 101,723,761.38 246,500,284.04 No 67,077,513.30
of parts
Ltd.
Chongqing Changan Intelligent
Industrial Technology Service Accept labor 11,279,433.62 5,609,648.20 Yes 513,085.15
Co., Ltd
Longchang Shanchuan Precision Procurement
12,373,330.60 46,371,255.34 No 16,006,962.03
Welded Tube Co., Ltd. of parts
Purchasing
goods and
Zhongqi Chuangzhi Technology
accepting 480,000.94 416,000.00 Yes -
Co., Ltd
labor
services
Chongqing Changrong Procurement
136,845,945.08 471,572,232.84 No 105,095,477.66
Machinery Co., Ltd. of parts
Purchasing
parts and
Chongqing Wutong Chelian
accepting 157,766,418.74 2,421,865,920.85 No 18,867,924.00
Technology Co., Ltd.
labor
services
Purchased
China Ordnance News Agency 18,555.76 20,726.01 No 8,235.84
Items
Avatr Technology (Chongqing) Procurement
928,938.06 - Yes -
Co., Ltd of parts
135
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Related parties Nature of Current amount Approved Whether it Prior-period
the transaction exceeds the amount
transaction amount transaction
amount
Southwest Ordnance Industry
Chongqing Environmental
Accept labor 445,897.62 3,371,826.69 No 643,025.04
Protection Research Institute Co.,
Ltd.
Changan Ford Automobile Co., Procurement
- 21,351.61 No 33,177.65
Ltd. of parts
Changan Auto Finance Co., Ltd. Accept labor 40,003,766.38 83,784,480.00 No 154,563,517.61
Southwest Ordnance Industry Procurement
- 1,300,000.00 No -
Co., Ltd of parts
Chongqing Changrong Procurement
- 60,989.98 No -
Machinery Co., Ltd of parts
Nanyang Lida Optoelectronics Procurement
- 9,739.85 No -
Co., Ltd of parts
Yunnan Wanxing Auto Sales
Accept labor - 143,000.00 No 92,971.05
Service Co., Ltd.
Chongqing Changxian Intelligent
Accept labor - 910,000,000.00 No -
Technology Co., Ltd
Chongqing construction industry Procurement
- - No 726,973.62
(Group) Co., Ltd of parts
Chongqing Pingshan Tk Procurement
- - No 113,625.19
Carburetor Co., Ltd. of parts
Chongqing Wanyou Advertising Procurement
- - No 144,000.00
Co.,Ltd. of parts
Ald Fortune Auto Leasing & Procurement
- - No 2,081,065.28
Renting (Shanghai) Co., Ltd. of parts
Avatr (Chongqing) Automobile Procurement
61,949,625.77 - Yes -
Sales Service Co., Ltd of parts
Total: 14,784,492,172.04 54,791,273,787.10 12,077,344,092.00
Goods sold and services offered
In RMB Yuan
Related parties Nature of the transaction Current amount Prior-period Amount
Selling parts and providing labor
Changan Ford Automobile Co., Ltd. 2,017,778.68 1,977,509.38
services
Changan Mazda Automobile Co., Ltd Selling parts 7,133,803.72 -
Jiangling Holdings Co., Ltd. Providing labor services 207,500.00 384,888.69
Changan Automobile Financing Co., Ltd. Providing labor services 174,835,059.92 233,886,141.47
Chongqing Changan Kuayue Automobile Selling complete vehicles and
105,713,055.00 35,175,120.00
Co., Ltd. components
Chongqing Changan Kuayue Automobile
Selling parts 129,155.26 84,044.68
Sales Co., Ltd.
Selling vehicle parts and
Deepal Automobile Technology Co., Ltd 111,103,766.19 941,495,311.87
providing labor services
Pakistan Master Automobile Co., Ltd. Selling complete vehicles 109,372,901.50 686,073,063.37
China Changan Automobile Group Co.,
Providing labor services 23,760.00 -
Ltd
Anhui Wanyou Automobile Sales Service Selling vehicle parts and
140,376,222.36 101,714,909.87
Co., Ltd. providing labor services
136
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Related parties Nature of the transaction Current amount Prior-period Amount
Chengdu Huachuan Electric Equipment Selling complete vehicles and
99,293.70 -
Co., Ltd. providing labor services
Selling parts and providing labor
Chengdu Wanyou Trading Co., Ltd. 95,348.42 8,176.99
services
Chengdu Wanyou Auto Sales and Service Selling vehicle parts and
832,930.32 472,725.21
Co.,Ltd. providing labor services
Chengdu Wanyou Auto Trade Service Selling vehicle parts and
329,514,962.73 312,041,141.75
Co., Ltd. providing labor services
Chengdu Wanyou Xiangyu Auto Sales Selling vehicle parts and
697,109,803.93 699,738,917.76
and Service Co., Ltd. providing labor services
Guizhou Wanyou Auto Sales and Service Selling vehicle parts and
565,501,997.62 501,259,585.12
Co., Ltd. providing labor services
Harbin Dongan Automotive Engine
Selling parts 1,993,518.61 24,251,252.09
Manufacturing Co., Ltd.
Hunan Tianyan Machinery Co., Ltd Providing labor services 169,811.32 -
Jiangsu Wanyou Automobile Sales Selling vehicle parts and
314,630,817.93 105,718,270.77
Service Co., Ltd. providing labor services
Luzhou Wanyou Automobile Service Co., Selling complete vehicles and
592,242.82 450,709.55
Ltd. components
Panzhihua Wanyou Auto Sales & Service Selling parts and providing labor
329,795.23 383,700.50
Co., Ltd. services
Selling complete vehicles and
Wanyou Automobile Investment Co., Ltd. 291,309,672.29 327,743,125.35
providing labor services
Ya'an Wanyou Auto Sales and Service Selling vehicle parts and
1,523,835.89 889,767.43
Co., Ltd. providing labor services
Yunnan Wanyou Auto Sales and Service Selling vehicle parts and
555,923,788.70 546,916,400.91
Co., Ltd. providing labor services
China South Industries Group Financial
Provide services 16,343,690.21 7,077,169.81
Leasing Co., Ltd.
China Changan Automobile Group Hefei
Selling complete vehicles 201,106.20 -
Investment Co., Ltd.
China Changan Automobile Group Selling vehicle parts and
131,130,406.12 113,428,610.55
Tianjin Sales Co., Ltd. providing labor services
Selling complete vehicles and
Chongqing Anfu Automobile Co., Ltd. 29,676,902.67 7,775,221.22
components
Chongqing Fuji Supply Chain
Selling complete vehicles 69,216,929.01 -
Management Co., Ltd
Selling vehicle parts and
Chongqing Tsingshan Industrial Co., Ltd. 470,541.17 72,087,696.68
providing labor services
Chongqing Wanyou Ducheng Auto Sales Selling complete vehicles and
2,029,066.92 1,472,801.11
Service Co., Ltd. components
Chongqing Wanyou Xingjian Auto Sales
Selling parts 914,070.23 853,360.20
& Service Co., Ltd.
Chongqing Wanyou Economic Selling vehicle parts and
895,356,870.07 924,172,360.80
Development Co., Ltd. providing labor services
Chongqing Wanyou Zunda Automobile
Selling parts 1,211,267,157.57 319,697,765.86
Sales & Service Co., Ltd.
Chongqing Changan Minsheng Logistics Selling parts and providing labor
1,389,240.00 1,018,913.85
Co., Ltd. services
China South Industry Group Finance Co.,
Provide services 667,592.00 550,714.07
Ltd.
Hubei Huazhong Marelli Automotive
Selling goods 1,313.00 -
Lighting Co., Ltd
137
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Related parties Nature of the transaction Current amount Prior-period Amount
Yunnan Xiyi Industries Co., Ltd. Selling parts 663,752.00
China South Industries Group
Provide services 5,913.36 44,333.22
Commercial Factoring Co., Ltd.
Chongqing Jianshe Automobile Air-
Selling parts 7,964.60 11,946.90
conditioner Co., Ltd.
Chongqing Nexteer Steering System
Selling parts 5,921,500.00 1,552,230.09
Co.,Ltd.
United Automotive Electronics
Selling parts 4,577,309.74 -
(Chongqing) Co., Ltd
Nanjing LingHang Technology Co., Ltd. Providing labor services 850,308.10 1,873,252.38
Ald Fortune Auto Leasing & Renting
Providing labor services 91,754.87 13,010,318.55
(Shanghai) Co., Ltd.
Tiannak Lingchuan (Chongqing) exhaust
Selling parts 937,224.65 2,651,092.85
system Co., Ltd
Chongqing Dajiang Guoli Precision Selling parts and providing labor
5,757,279.81 14,217,387.85
Machinery Manufacturing Co., Ltd. services
Chongqing Lingchuan Auto Parts
Selling parts 765,342.53 1,214,708.00
Manufacturing Technology Co., Ltd.
Zhongqi Chuangzhi Technology Co., Ltd Selling goods 0.94 -
Chongqing Wutong Chelian Technology
Selling goods 271.68 -
Co., Ltd
Selling parts and providing labor
Avatr Technology (Chongqing) Co., Ltd. 966,811,840.03 52,471,011.00
services
Dali Wanfu Automobile Sales and
Selling parts 11,752.21 -
Service Co., Ltd
Hainan Anxinxing Information
Providing labor services - 28,301.89
Technology Co., Ltd.
Sales of parts and maintenance
Harbin Dongan Auto Engine Co., Ltd. - 1,173.00
services
Yunnan Wanxing Auto Sales Service Co., Selling complete vehicles and
- 18,951,586.08
Ltd. components
Chongqing Changan Minsheng Boyu Sales of complete vehicles and
- 23,716.98
Logistics Co., Ltd. training fees
Chengdu Lingchuan Vehicle Oil Tank
Selling parts - 938,416.81
Co., Ltd.
Chongqing Dajiang Yuqiang Plastic Co.,
Selling parts - 131,400.00
Ltd.
Chongqing construction industry (Group)
Selling parts - 193,218.11
Co., Ltd
Chongqing Dajiang Tongyang Plastics
Selling parts - 533,842.98
Co., Ltd.
Avatr (Chongqing) Automobile Sales
Selling goods 660.38 -
Service Co., Ltd
Total: 6,754,944,830.21 6,077,311,065.60
(2) Related-party leasing
Rent assets to related parties
In RMB Yuan
Lessee Type of leased assets Report period Amount Same period of last
138
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
period Amount
South Inter Air-conditioner Co.,Ltd. Vehicle 48,849.56 67,752.21
Chongqing Changan Industries Group
Building 3,283,373.71 3,397,373.71
Co. Ltd.
Nanjing LingHang Technology Co.,
Vehicle 2,624,149.56 63,932,417.73
Ltd.
Ald Fortune Auto Leasing & Renting
Vehicle 22,935,079.52 2,696,360.42
(Shanghai) Co., Ltd.
Deepal Automobile Technology Co., Building, land and battery
27,782,737.08 10,675,075.50
Ltd Workshop
Chongqing Changan Minsheng
Building 348,266.98 354,900.63
Logistics Co. Ltd.
Chongqing Wanyou Economic
Building and land 321,100.92 321,100.92
Development Co., Ltd.
Chongqing Changan Real Estate
Vehicle 24,424.78 -
Development Co., Ltd
Total 81,444,981.12 57,367,982.11
Rent assets from related parties
In RMB Yuan
Rent paid
Lessor Type of leased assets Same period of last period
Report period Amount
Amount
Chongqing Changan Minsheng
Land 8,133,557.01 1,730,062.80
Logistics Co., Ltd
Chongqing Changan Property
Land 2,977,660.00 -
Management Co., Ltd
Total 11,111,217.01
(3) Other related transactions
Integrated service charges
In RMB Yuan
Related parties Nature of the transaction Report period Amount Same period of last
period Amount
Payment of land rental fees - 3,091,095.90
Payment of building rental fees - 1,197,968.00
Changan Industries (Group) Co. Ltd
Payment of utilities 37,806,926.34 27,574,790.98
Others - 513,677.67
Total 32,377,532.55 37,806,926.34
Purchase of project materials
In RMB Yuan
Same period of last period
Related parties Report period Amount
Amount
139
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Chongqing Changan Minsheng Logistics Co., Ltd - 8,150.95
Changan Laisi (Chongqing) robot intelligent equipment Co., Ltd - 7,830,088.50
Chongqing Changan Intelligent Industrial Technology Service
2,743,362.86 -
Co., Ltd
Total 2,743,362.86 7,838,239.45
Staff expenses for technical supporting
In RMB Yuan
Same period of last period
Related parties Report period Amount
Amount
Changan Mazda Automobile Co., Ltd 9,131,656.92 222,474.38
Changan Ford Automobile Co., Ltd 5,605,674.97 7,943,502.33
Changan Mazda Engine Co., Ltd. 6,703,950.04 242,821.56
Hainan Anxinxing Information Technology Co., Ltd. - 634,354.87
Chongqing Shangfang Auto Parts Co., Ltd 37,002.00 -
Jiangling Holdings Co., Ltd 7,343,774.35 -
Chongqing Changan Crossing Vehicle Co., Ltd 1,212,194.63 -
China Changan Automobile Group Co., Ltd 169,811.32 -
Chongqing Nexteer Steering System Co., Ltd 18,026.66 -
Chongqing Dajiang National Precision Machinery
2,520.00 -
Manufacturing Co., Ltd
Jiangling Automobile Co., Ltd 826,370.83 -
Chongqing Construction Transmission Technology Co., Ltd 27,872.04 -
Chongqing WutongChelian Technology Co., Ltd 208,063.02 -
Avatr Technology (Chongqing) Co., Ltd 682,780.43 -
Total 31,969,697.21 9,043,153.14
Techonology development service charges
In RMB Yuan
Same period of last period
Related parties Report period Amount
Amount
Chongqing Tsingshan Industrial Co., Ltd. 10,144,721.22
Changan Mazda Automobile Co., Ltd 397,572.54
Total 10,542,293.76
Collection of trademark use rights fees
In RMB Yuan
Same period of last period
Related parties Report period Amount
Amount
Chongqing Changan Kuayue Automobile Co., Ltd. 6,009,433.96 270,188.68
140
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Related party monetary funds
In RMB Yuan
Related parties Ending Amount Beginning Amount
China South Industries Group Finance Co., Ltd 19,857,412,889.08 19,862,952,043.78
Changan Automobile Finance Co., Ltd 14,700,000,000.00 14,950,000,000.00
Total 34,557,412,889.08 34,812,952,043.78
First half of 2023, the annual interest rate of deposits deposited with related parties is 0.35% - 2.25%, and the term is 0-12 months.
Borrowing
Short-term borrowing
In RMB Yuan
Related parties Ending Amount Beginning Amount
China South Industries Group Finance Co., Ltd 20,000,000.00 29,000,000.00
Long-term borrowing
In RMB Yuan
Related parties Ending Amount Beginning Amount
China South Industries Group Finance Co., Ltd 80,000,000.00 40,000,000.00
Interest income of deferred payment
In RMB Yuan
Related parties Report period Amount Same period of last period Amount
Jiangsu Wanyou Automobile Sales Service Co., Ltd 1,380.53 -
Chongqing Wanyou Economic Development Co., Ltd - 6,588.40
China Changan Automobile Group Tianjin Sales Co., - 2,489.29
Ltd.
Total 1,380.53 9,077.69
6. Payment and receivables of related parties
(1) Payment receivables of related listed companies
In RMB Yuan
Items Related parties Ending balance Beginning balance
Notes Chongqing Changan Kuayue Automobile
37,452,780.00 -
receivable Sales Co., Ltd.
141
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Items Related parties Ending balance Beginning balance
Notes
Deepal Automobile Technology Co., Ltd - 3,623,354,650.53
receivable
Notes Chengdu Wanyou Auto Trade Service Co.,
22,000,000.00 22,500,000.00
receivable Ltd.
Notes Guizhou Wanyou Auto Sales and Service
5,000,000.00 7,300,000.00
receivable Co., Ltd.
Notes Harbin Dongan Automotive Engine
1,000,729.17 3,029,467.77
receivable Manufacturing Co., Ltd.
Notes
Wanyou Automobile Investment Co., Ltd. 2,214,980,000.00 3,047,690,000.00
receivable
Notes Yunnan Wanyou Auto Sales and Service
35,000,000.00 43,000,000.00
receivable Co., Ltd.
Notes
Chongqing Tsingshan Industrial Co., Ltd. 40,822,710.36 40,463,588.91
receivable
Notes Chongqing Wanyou Economic
27,000,000.00 20,250,000.00
receivable Development Co., Ltd.
Notes
Avatr Technology (Chongqing) Co., Ltd. 494,166,303.64 121,822,864.29
receivable
Subtotal 2,877,422,523.17 6,929,410,571.50
Account
Changan Ford Automobile Co., Ltd. 6,885,149.43 195,582,372.52
receivable
Account
Changan Mazda Automobile Co., Ltd 9,148,414.64 72,378,357.38
receivable
Account
Changan Mazda Engine Co., Ltd. 3,373,248.04 3,494,661.85
receivable
Account
Jiangling Holdings Co., Ltd. 49,384,266.38 121,166,512.75
receivable
Account
Changan Auto Finance Co., Ltd. 29,156,758.91 68,199,053.80
receivable
Account Chongqing Changan Kuayue Vehicle Co.,
17,920,237.90 39,592,219.39
receivable Ltd
Account
Beijing Fang’an cresent taxi Co., Ltd. - 38,600,000.00
receivable
Account Chongqing Changan Kuayue Automobile
14,942.80 31,861.79
receivable Sales Co., Ltd.
Account
Deepal Automobile Technology Co., Ltd - 1,011,838,777.69
receivable
Account
Pakistan Master Automobile Co., Ltd. 30,444,169.62 37,958,837.25
receivable
Account China Changan Automobile Group Co.,
180,000.00 -
receivable Ltd
Account Chengdu Huachuan Electric Equipment
50,000.00 -
receivable Co., Ltd
Account Harbin Dongan Automotive Engine
391,043.25 147,532.81
receivable Manufacturing Co., Ltd.
Account China South Industries Group Financial
5,410,074.20 9,734,968.89
receivable Leasing Co., Ltd.
Account
Chongqing Tsingshan Industrial Co., Ltd. 31,864,429.19 29,579,405.37
receivable
Account Chongqing Changan industry (Group)
3,626,628.57 3,626,628.57
receivable Co., Ltd
Account
Nanjing LingHang Technology Co., Ltd. 1,428,345.48 4,209,516.65
receivable
142
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Items Related parties Ending balance Beginning balance
Account Ald Fortune Auto Leasing & Renting
4,315,640.00 5,181,800.00
receivable (Shanghai) Co., Ltd.
Account
Avita Technology (Chongqing) Co., Ltd. 394,779,882.78 320,592,883.29
receivable
Account
JMC - 1,176,831.13
receivable
Account Chongqing Changan Minsheng Logistics
- 688,099.86
receivable Co. Ltd.
Account Chengdu Wanyou Xiangyu Automobile
- 127,548.00
receivable Sales and Service Co., Ltd
Account Guizhou Wanyou Auto Sales and Service
- 63,900.00
receivable Co., Ltd.
Account China South Industries Group
- 1,841.34
receivable Commercial Factoring Co., Ltd.
Account Chongqing Changan Intelligent Industrial
- 0.15
receivable Technology Service Co., Ltd
Account Tiannak Lingchuan (Chongqing) exhaust
- 0.03
receivable system Co., Ltd
Subtotal 588,373,231.19 1,963,973,610.51
Other Chongqing Changan Minsheng Logistics
475,374.49 436.57
receivable Co. Ltd.
Other China South Industry Group Finance Co.,
243,650.67 859,049.92
receivable Ltd.
Other
Nanjing LingHang Technology Co., Ltd. 107,028.38 -
receivable
Chongqing Changxin Zhiqi Private Equity
Other
Investment Fund Partnership (Limited 35,000,000.00 -
receivable
Partnership)
Other Chongqing Changan industry (Group)
1,157,446.69 1,157,446.69
receivable Co., Ltd
Other China South Industries Group
44,615,500.00 -
receivable Commercial Factoring Co., Ltd.
Other China Changan Automobile Group Hefei
282,382.49 -
receivable Investment Co., Ltd
Subtotal 81,881,382.72 2,016,933.18
Advanced
Deepal Automobile Technology Co., Ltd - 10,397,480.50
payment
Advanced Beijing Wutong Chelian Technology Co.,
12,769,380.30 12,438,660.30
payment Ltd.
Subtotal 12,769,380.30 22,836,140.80
(2) Accounts payable to related parties of listed companies
In RMB Yuan
Items Related parties Ending balance Beginning balance
Notes payable Jiangling Holdings Co., Ltd. 772,650,078.38 59,248,188.59
Notes payable Deepal Automobile Technology Co., Ltd - 293,766,946.00
Notes payable Harbin Dongan Auto Engine Co., Ltd. 69,720,000.00 59,090,000.00
143
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Items Related parties Ending balance Beginning balance
Harbin Dongan Automotive Engine Manufacturing
Notes payable 181,260,000.00 197,280,000.00
Co., Ltd.
Notes payable Hunan Tianyan Machinery Co., Ltd 3,680,000.00 -
Notes payable CSM Faurecia Automotive Parts Co., Ltd. 71,521,000.00 36,370,000.00
Notes payable South Tianhe Chassis System Co., Ltd. 46,898,358.00 118,961,825.13
Notes payable South Inter Air-conditioner Co.,Ltd. 188,840,000.00 130,650,474.98
Notes payable Sichuan Ningjiang Shanchuan Machinery Co, Ltd. 109,816,824.00 60,759,442.02
Notes payable Chongqing Tsingshan Industrial Co., Ltd. 1,313,041,354.00 1,078,658,254.05
Notes payable Chongqing Changan Minsheng Logistics Co. Ltd. 336,484,318.39 300,858,223.58
Notes payable CDGM Tanaka Environmental Catalyst Co.,Ltd. 62,940,000.00 560,000.00
Chengdu Jialing Huaxi Optical & Precision
Notes payable 330,000.00 950,000.00
Machinery Co., Ltd.
Notes payable Chengdu Lingchuan Vehicle Oil Tank Co., Ltd. 2,620,000.00 -
Notes payable Chengdu Wanyou Filter Co., Ltd. 26,550,000.00 34,373,849.84
Hubei Huazhong Marelli Automobile Lighting Co.,
Notes payable 144,870,000.00 139,690,000.00
Ltd.
Notes payable Hubei Xiaogan Huazhong Automobile Light Co., Ltd. 36,940,000.00 15,650,000.00
Notes payable Chongqing Dajiang Jiexin Forging Co., Ltd. 1,010,000.00 1,090,000.00
Chongqing Jianshe Automobile Air-conditioner Co.,
Notes payable 21,560,000.00 20,050,000.00
Ltd.
Notes payable Chongqing Construction Tongda Industrial Co., Ltd. 14,439,729.00 10,640,000.00
Notes payable Chongqing Nexteer Steering System Co.,Ltd. 192,490,000.00 327,738,252.79
Notes payable Chongqing Shangfang Automobile Fittings Co., Ltd. 34,683,825.00 33,869,017.86
Chongqing Yihong Engineering Plastic Products Co.,
Notes payable 19,740,000.00 19,560,000.00
Ltd.
GKN HUAYU Driveline Systems (Chongqing) Co.,
Notes payable 118,680,000.00 98,250,000.00
Ltd
Tiannak Lingchuan (Chongqing) exhaust system Co.,
Notes payable 29,740,000.00 32,530,000.00
Ltd
Notes payable Chongqing Dajiang Tongyang Plastics Co., Ltd. 205,123,800.00 145,840,000.00
Chongqing Dajiang Guoli Precision Machinery
Notes payable 4,463,262.00 7,765,999.95
Manufacturing Co., Ltd.
Notes payable Dajiang Yapp Automotive Systems Co., Ltd. 199,010,000.00 175,450,000.00
Chongqing Hanon Jianshe Automotive Thermal
Notes payable 49,510,000.00 82,600,000.00
Systems Co., Ltd.
144
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Items Related parties Ending balance Beginning balance
Chongqing Lingchuan Auto Parts Manufacturing
Notes payable 90,380,000.00 80,530,000.00
Technology Co., Ltd.
Longchang Shanchuan Precision Welded Tube Co.,
Notes payable 4,942,403.00 6,140,145.72
Ltd.
Southwest Ordnance Industry Chongqing
Notes payable 1,012,449.43 -
Environmental Protection Research Institute Co., Ltd.
Notes payable Chongqing Changrong Machinery Co., Ltd. - 1,314,548.20
Notes payable Hunan Tianyan Machinery Co., Ltd. - 630,000.00
Subtotal 4,354,947,401.20 3,570,865,168.71
Account
Jiangling Holdings Co., Ltd. 164,547,071.39 1,116,408,615.48
payable
Account
Hangzhou Chelizi Intelligent Technology Co., Ltd. 12,350.00 12,350.00
payable
Account
Deepal Automobile Technology Co., Ltd - 822,638,571.39
payable
Account
Beijing Wutong Chelian Technology Co., Ltd. 1,632,357.66 4,301,349.18
payable
Account
Chengdu Huachuan Electric Equipment Co., Ltd. 57,494,293.50 41,958,250.19
payable
Account Chengdu Ningjiang Zhaohe Automobile Components
1,175,453.90 1,358,424.58
payable Co., Ltd.
Account
Harbin Dongan Auto Engine Co., Ltd. 41,477,760.18 103,616,123.17
payable
Account Harbin Dongan Automotive Engine Manufacturing
480,894.09 99,563,867.81
payable Co., Ltd.
Account
Hafei Automobile Co., Ltd 344.04 344.04
payable
Account
Hunan Tianyan Machinery Co., Ltd 62,773,650.28 -
payable
Account
CSM Faurecia Automotive Parts Co., Ltd. 106,611,292.57 79,576,674.87
payable
Account
South Tianhe Chassis System Co., Ltd. 188,361,446.89 142,620,012.97
payable
Account
South Inter Air-conditioner Co.,Ltd. 130,716,589.27 87,495,633.58
payable
Account
Sichuan Jian'an Industrial Co.,Ltd. 107,350,795.49 40,868,455.07
payable
Account
Sichuan Ningjiang Shanchuan Machinery Co, Ltd. 32,663,780.69 11,108,409.24
payable
Account
Chongqing Tsingshan Industrial Co., Ltd. 711,328,381.80 153,454,423.03
payable
Account Chongqing Wanyou Xingjian Auto Sales & Service
20,842.80 20,842.80
payable Co., Ltd.
Account
Chongqing Wanyou Economic Development Co., Ltd. 4,575,091.49 757,763.87
payable
Account
Chongqing Changan Minsheng Logistics Co. Ltd. 10,622,441.06 12,696,301.88
payable
Account
CDGM Tanaka Environmental Catalyst Co.,Ltd. 257,112,640.35 32,759,347.97
payable
145
Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Items Related parties Ending balance Beginning balance
Account Chengdu Jialing Huaxi Optical & Precision
202,481.66 559,576.76
payable Machinery Co., Ltd.
Account
Chengdu Lingchuan Vehicle Oil Tank Co., Ltd. 11,183,506.80 8,056,699.53
payable
Account
Chengdu Wanyou Filter Co., Ltd. 26,556,287.37 14,115,700.51
payable
Account Hubei Huazhong Marelli Automobile Lighting Co.,
146,612,808.09 236,096,916.60
payable Ltd.
Account
Hubei Xiaogan Huazhong Automobile Light Co., Ltd. 17,446,057.16 19,359,970.66
payable
Account
Yunnan Xiyi Industries Co., Ltd. 28,768,504.82 4,210,156.64
payable
Account
Chongqing Dajiang Jiexin Forging Co., Ltd. 107,645.85 312,203.77
payable
Account
Chongqing Dajiang Yuqiang Plastic Co., Ltd. 38,651.31 496,894.20
payable
Account
Chongqing Jialing Yimin Special Equipment Co., Ltd. 104,496.50 104,496.50
payable
Account Chongqing Jianshe Automobile Air-conditioner Co.,
15,637,578.08 10,360,465.69
payable Ltd.
Account Chongqing Jianshe Mechanical & Electrical
47,265.91 47,265.91
payable Equipment Co., Ltd.
Account
Chongqing Construction Tongda Industrial Co., Ltd. 20,074,980.69 11,268,342.31
payable
Account
Chongqing Nexteer Steering System Co.,Ltd. 330,092,881.48 278,876,988.05
payable
Account
Chongqing Shangfang Automobile Fittings Co., Ltd. 19,581,178.77 13,575,599.30
payable
Account
Chongqing Qingshan Transmission Sales Co., Ltd. 6,031,563.88 10,199,151.11
payable
Account
Chongqing Xiyi automobile connecting rod Co., Ltd 38,422.14 38,422.14
payable
Account Chongqing Yihong Engineering Plastic Products Co.,
10,554,570.55 4,247,025.85
payable Ltd.
Account
Chongqing Changan industry (Group) Co., Ltd 234,239.51 236,355.17
payable
Account Lear Changan (Chongqing) Automotive System Co.,
9,335.39 109,342,564.03
payable Ltd
Account
United Automotive Electronics (Chongqing) Co., Ltd 98,553,343.25 72,864,235.98
payable
Account GKN HUAYU Driveline Systems (Chongqing) Co.,
41,873,286.99 49,148,122.03
payable Ltd
Account Tiannak Lingchuan (Chongqing) exhaust system Co.,
43,743.18 5,380,229.34
payable Ltd
Account
Chongqing Dajiang Tongyang Plastics Co., Ltd. 74,791,702.46 86,558,622.08
payable
Account Chongqing Dajiang Guoli Precision Machinery
17,036,265.16 6,417,935.77
payable Manufacturing Co., Ltd.
Account
Dajiang Yapp Automotive Systems Co., Ltd. 158,843,424.75 152,806,662.74
payable
Account Chongqing Hanon Jianshe Automotive Thermal
1,646,423.15 2,388,277.76
payable Systems Co., Ltd.
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Items Related parties Ending balance Beginning balance
Account Chongqing Lingchuan Auto Parts Manufacturing
37,859,893.35 25,869,763.88
payable Technology Co., Ltd.
Account Chongqing Changan Intelligent Industrial Technology
1,443,978.00 -
payable Service Co., Ltd
Account Longchang Shanchuan Precision Welded Tube Co.,
3,273,547.80 1,759,775.48
payable Ltd.
Account
Chongqing Changrong Machinery Co., Ltd. 40,659,325.37 18,773,538.36
payable
Account
Chongqing Wutong Chelian Technology Co., Ltd 2,379,826.71 -
payable
Account
Avatr Technology (Chongqing) Co., Ltd 1,049,700.00 -
payable
Account Changan Reis (Chongqing) Robotic Intelligent
- 8,537,490.14
payable Equipment Co., Ltd.
Account
Changan Ford Automobile Co., Ltd. - 1,878,695.33
payable
Account Southwest Ordnance Industry Chongqing
- 963,651.26
payable Environmental Protection Research Institute Co., Ltd.
Account
Chengdu Lingchuan Special Industry Co., Ltd. - 220,175.48
payable
Account
Chongqing Automobile Air-conditioner Co., Ltd. - 205,041.51
payable
Account
Hunan Tianyan Machinery Co., Ltd. - 143,359.78
payable
Account
Chongqing Dajiang Xinda Vehicles Shares Co., Ltd. - 56,251.08
payable
Account Beijing Beiji Mechanical and Electrical Industry Co.,
- 3,165.30
payable Ltd.
Account
Chongqing Changan Kuayue Vehicle Co., Ltd - 1,382.56
payable
Account
Chongqing Changfeng Jiquan Machinery Co., Ltd. - 1,340.91
payable
Account
Chengdu Wanyou Auto Trade Service Co., Ltd. 426,628.98 250
payable
Account Chongqing Wanyou Ducheng Auto Sales Service Co.,
3,486.65 -
payable Ltd.
Subtotal 2,992,164,509.21 3,906,698,522.62
Contract
Changan Ford Automobile Co., Ltd. 0.36 493,954.43
liabilities
Contract
Changan Automobile Finance Co., Ltd 685,200.00 685,200.00
liabilities
Contract
Anhui Wanyou Automobile Sales Service Co., Ltd. 13,745,063.04 12,540,522.24
liabilities
Contract
Bazhong Wanyou Auto Sales & Service Co., Ltd. 50,426.48 50,426.48
liabilities
Contract
Chengdu Wanyou Trading Co., Ltd. 34,357.00 18,900.00
liabilities
Contract
Chengdu Wanyou Auto Sales and Service Co.,Ltd. 111,561.78 101,869.64
liabilities
Contract
Chengdu Wanyou Auto Trade Service Co., Ltd. 29,592,086.71 18,393,074.44
liabilities
Contract Chengdu Wanyou Xiangyu Auto Sales and Service
94,127,263.38 64,279,954.50
liabilities Co., Ltd.
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Items Related parties Ending balance Beginning balance
Contract
Guizhou Wanyou Auto Sales and Service Co., Ltd. 51,855,145.20 96,702,773.24
liabilities
Contract
Hafei Automobile Co., Ltd 471,942.49 471,942.49
liabilities
Contract
Jiangsu Wanyou Automobile Sales Service Co., Ltd. 87,805,094.37 58,420,002.39
liabilities
Contract
Luzhou Wanyou Automobile Service Co., Ltd. 76,183.28 91,342.25
liabilities
Contract
Panzhihua Wanyou Auto Sales & Service Co., Ltd. 44,578.01 16,305.41
liabilities
Contract
Wanyou Automobile Investment Co., Ltd. 13,995,992.74 47,689,212.74
liabilities
Contract
Ya'an Wanyou Auto Sales and Service Co., Ltd. 94,915.31 75,083.25
liabilities
Contract
Yunnan Wanyou Auto Sales and Service Co., Ltd. 24,818,155.28 49,769,852.59
liabilities
Contract China Changan Automobile Group Hefei Investment
10,273.00 10,273.00
liabilities Co., Ltd.
Contract China Changan Automobile Group Tianjin Sales Co.,
20,689,970.87 33,057,138.53
liabilities Ltd.
Contract Chongqing Wanyou Ducheng Auto Sales Service Co.,
288,575.24 373,179.91
liabilities Ltd.
Contract Chongqing Wanyou Xingjian Auto Sales & Service
163,077.92 155,719.35
liabilities Co., Ltd.
Contract
Chongqing Wanyou Economic Development Co., Ltd. 112,755,890.79 124,667,991.83
liabilities
Contract Chongqing Wanyou Zunda Automobile Sales &
67,022,495.88 74,694,999.66
liabilities Service Co., Ltd.
Contract
Chongqing Changan Minsheng Logistics Co. Ltd. 239,944.56 416,441.17
liabilities
Contract
Chongqing Shangfang Automobile Fittings Co., Ltd. 12,979.98 12,979.98
liabilities
Contract
Avatr Technology (Chongqing) Co., Ltd 587,105.03 5,832,549.46
liabilities
Contract
Dali Wanfu Automobile Sales and Service Co., Ltd 206.06 3,486.06
liabilities
Contract
Jiangling Holdings Co., Ltd. - 6,854,200.00
liabilities
Contract
Pakistan Master Automobile Co., Ltd. - 5,213,676.57
liabilities
Contract
Chongqing Anfu Automobile Co., Ltd. - 149,000.00
liabilities
Contract
Yunnan Wanxing Auto Sales Service Co., Ltd. - 6,816.00
liabilities
Contract
Guangxi Wanyou Auto Sales and Service Co., Ltd. - 302.4
liabilities
Subtotal 519,278,484.76 601,249,170.01
Other
Nanjing Chelai Travel Technology Co., Ltd 17,201.61 -
payables
Other
Deepal Automobile Technology Co., Ltd - 113,039,584.99
payables
Other
China Changan Automobile Group Co., Ltd. 1,000.00 1,000.00
payables
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Items Related parties Ending balance Beginning balance
Other
Anhui Wanyou Automobile Sales Service Co., Ltd. 735,600.00 1,475,600.00
payables
Other
Chengdu Huachuan Electric Equipment Co., Ltd. 593.85 173,206.40
payables
Other
Chengdu Wanyou Auto Sales and Service co.,Ltd. 190,000.00 790,000.00
payables
Other
Chengdu Wanyou Auto Trade Service Co., Ltd. 2,843,347.45 3,607,415.80
payables
Other Chengdu Wanyou Xiangyu Auto Sales and Service
6,069,300.00 7,732,620.00
payables Co., Ltd.
Other
Guizhou Wanyou Auto Sales and Service Co., Ltd. 1,119,300.00 4,007,517.20
payables
Other
Harbin Dongan Auto Engine Co., Ltd. 80,465.04 106,468.60
payables
Other Harbin Dongan Automotive Engine Manufacturing
205,660.00 203,155.92
payables Co., Ltd.
Other
Jiangsu Wanyou Automobile Sales Service Co., Ltd. 4,609,714.52 4,970,000.00
payables
Other
Luzhou Wanyou Automobile Service Co., Ltd. 121,800.00 129,140.00
payables
Other
South Tianhe Chassis System Co., Ltd. 442,571.34 293,868.55
payables
Other
South Inter Air-conditioner Co.,Ltd. 57,987.25 1,567,432.39
payables
Other
Sichuan Jian'an Industrial Co.,Ltd. 7,726,533.47 2,101,400.49
payables
Other
Sichuan Ningjiang Shanchuan Machinery Co, Ltd. 57,554.22 -
payables
Other
Ya'an Wanyou Auto Sales and Service Co., Ltd. 1,863,900.00 2,063,900.00
payables
Other
Yunnan Wanyou Auto Sales and Service Co., Ltd. 5,277,100.00 10,068,122.20
payables
Other China Changan Automobile Group Tianjin Sales Co.,
4,329,000.00 3,729,000.00
payables Ltd.
Other
Chongqing Tsingshan Industrial Co., Ltd. 20,421,377.38 7,868,918.85
payables
Other Chongqing Wanyou Ducheng Auto Sales Service Co.,
572,718.72 1,096,014.24
payables Ltd.
Other Chongqing Wanyou Xingjian Auto Sales & Service
400,880.00 400,000.00
payables Co., Ltd.
Other
Chongqing Wanyou Economic Development Co., Ltd. 7,013,538.00 7,660,147.80
payables
Other Chongqing Wanyou Zunda Automobile Sales &
2,150,000.00 -
payables Service Co., Ltd.
Other
Chongqing Changan Minsheng Logistics Co. Ltd. 702,549,204.53 392,075,910.69
payables
Other
Chengdu Wanyou Filter Co., Ltd. 1,257,067.02 1,266,573.71
payables
Other Hubei Huazhong Marelli Automobile Lighting Co.,
16,218.04 -
payables Ltd.
Other Chongqing Jianshe Automobile Air-conditioner Co.,
72,772.00 -
payables Ltd.
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Items Related parties Ending balance Beginning balance
Other
Chongqing Construction Tongda Industrial Co., Ltd. 43,645.91 33,787.00
payables
Other
Chongqing Nexteer Steering System Co.,Ltd. 2,580,821.97 -
payables
Other
Chongqing Shangfang Automobile Fittings Co., Ltd. 560,706.00 1,113,793.54
payables
Other Chongqing Yihong Engineering Plastic Products Co.,
81.06 -
payables Ltd.
Other
Chongqing Changan industry (Group) Co., Ltd 791,056.30 2,960,859.38
payables
Other
Chongqing Changan Property Management Co., Ltd. 5,865,755.49 1,935,184.57
payables
Other
Chongqing Changan Construction Co., Ltd. 26,375,786.10 26,391,448.08
payables
Other
United Automotive Electronics (Chongqing) Co., Ltd 33,324.83 3,439,700.00
payables
Other GKN HUAYU Driveline Systems (Chongqing) Co.,
308,222.97 -
payables Ltd.
Other
Nanjing Lingxing Technology Co., Ltd 7,275.64 -
payables
Other Ald Fortune Auto Leasing & Renting (Shanghai) Co.,
7,500,000.00 -
payables Ltd.
Other Changan Reis (Chongqing) Robotic Intelligent
1,913,989.51 917,118.52
payables Equipment Co., Ltd.
Other Chongqing Dajiang Guoli Precision Machinery
141,250.00 -
payables Manufacturing Co., Ltd.
Other Chongqing Lingchuan Auto Parts Manufacturing
26,668.00 219,898.32
payables Technology Co., Ltd.
Other Chongqing Changan Intelligent Industrial Technology
1,467,227.64 4,404,413.09
payables Service Co., Ltd
Other
Chongqing Changrong Machinery Co., Ltd. 283,545.60 -
payables
Other
China Ordnance News 17,100.00 -
payables
Other Southwest Ordnance Industry Chongqing
8,269,753.03 -
payables Environmental Protection Research Institute Co., Ltd.
Other
Dali Wanfu Automobile Sales and Service Co., Ltd 26,793.40 -
payables
Other
Chongqing Dajiang Tongyang Plastics Co., Ltd. - 1,423,800.00
payables
Other
Hunan Tianyan Machinery Co., Ltd. - 1,235,044.80
payables
Other
Chongqing Anfu Automobile Co., Ltd. - 200,000.00
payables
Other
Chongqing Dajiang Xinda Vehicles Shares Co., Ltd. - 150,000.00
payables
Other
Yunnan Xiyi Industries Co., Ltd. - 148,030.00
payables
Other China Changan Automobile Group Hefei Investment
- 106,890.47
payables Co., Ltd.
Other
Jiangling Holdings Co., Ltd. - 47,703.40
payables
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Items Related parties Ending balance Beginning balance
Other
Hubei Xiaogan Huazhong Automobile Light Co., Ltd. - 27,828.32
payables
Other
Chengdu Wanyou Trading Co., Ltd. - 11,391.20
payables
Other
Dajiang Yapp Automotive Systems Co., Ltd. - 10,855.59
payables
Other
Panzhihua Wanyou Auto Sales & Service Co., Ltd. - 4,550.30
payables
Other
Chongqing Changan Kuayue Vehicle Co., Ltd 43,187,810.00 -
payables
Subtotal 869,603,217.89 611,209,294.41
XIII. Share-based payments
1. General information
√ Applicable □ Non-applicable
Unit: share currency: RMB
Total amount of equity instruments granted by the
0.00
company in the current period
Total amount of equity instruments exercised by the
44,275,061.00
company in the current period
Total amount of various equity instruments expired
2,476,422.00
in the current period of the company
The scope of exercise price of stock options issued
by the company at the end of the period and the No
remaining term of the contract
Restricted shares were granted for the first time in February 2021, the grant
The scope of exercise price of other equity price was 6.66 yuan/share (before adjustment), and the remaining term is 32
instruments issued at the end of the period and the months;
remaining term of the contract Restricted shares were reserved for grant in November 2021, the grant price was
9.93 yuan/share (before adjustment), and the remaining term is 42 months
2. Equity settled share based payment
√ Applicable □ Non-applicable
In RMB Yuan
Determination method of fair value of equity
Market price method model calculation
instruments on the grant date
Basis for determining the number of exercisable Based on the best estimate of the number of exercisable equity instruments, the
equity instruments relevant expenses and costs are calculated according to the fair value of the
equity instruments on the grant date
Reasons for significant differences between the
No
current estimate and the previous estimate
Cumulative amount of equity settled share based
550,321,460.92
payment included in capital reserve
Total recognized expenses of equity settled share
187,899,000.00
based payment in the current period
3. Cash settled share based payment
□ Applicable √ Not applicable
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
4. Modification and termination of share based payment
□ Applicable √ Not applicable
5. Other
□ Applicable √ Not applicable
XIV. Commitments and Contingencies
1. Significant commitments
Contracted, but not provided for
Items 2023.6.30 2022.12.31
Capital commitments 10,900,775,809.89 11,675,534,857.57
Investment commitments 714,150,001.00 1,782,940,000.00
Total 11,614,925,810.89 13,458,474,857.57
2. Contingencies
By June 30, 2023, no material contingencies needed to be disclosed.
XV. Events after the balance sheet date
None
XVI. Other important events
1. Segment information
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.
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2. Lease arrangements
(1) As lessor
The Group leases buildings, machinery and equipment and vehicles for a lease term of 1-15 years, forming an operating lease.
Details for investment property and operating leased fixed assets refer to note VII 13 and 14.
The income related to operating leases are listed as follows:
In RMB Yuan
Report period Amount
Leasehold Income 233,112,047.46
According to the lease contract signed with the lessee, the minimum lease collection amount of irrevocable lease is as follows:
In RMB Yuan
Ending balance
Less than 1 year (including 1 year) 472,029,012.94
1 to 2 years (including 2 years) 332,018,203.12
2 to 3 years (including 3 years) 192,256,798.72
3 to 4 years (including 3 years) 78,908,912.59
4 to 5 years (including 3 years) 20,943,996.69
Over 5 years 47,276,700.94
Total 1,143,433,625.00
(2) As lessee
In RMB Yuan
Report period Amount
Interest expense of lease liabilities 7,350,104.73
Short term lease expenses with simplified treatment included in current profit and loss 39,773,086.74
Lease expense of low value assets with simplified treatment included in current profit and loss 123,052.14
Total cash outflow related to leasing 67,798,755.00
The leased assets leased by the Group include buildings and other equipment used in the operation activities. The lease term of
houses and buildings is usually 1-5 years, and that of other equipment is usually 2-5 years.
XVII. Notes to the main items of the parent company’s financial statements
1. Account Receivables
(1) Aging analysis of accounts receivable is as follow:
In RMB Yuan
Account receivable age Ending balance Beginning balance
Less than 1 year (including 1 year) 8,025,560,564.12 4,445,068,297.55
1 to 2 years (including 2 years) 316,966,984.01 997,705,973.80
2 to 3 years (including 3 years) 587,836,483.56 -
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Over 3 years 182,543,593.50 213,599,440.84
Total 9,112,907,625.19 5,656,373,712.19
Minus：Provision (78,268,533.42) (117,868,890.37)
Net value of accounts receivable 9,034,639,091.77 5,538,504,821.82
(2) Movements of provision for accounts receivable are as follows:
In RMB Yuan
Report period Amount
Items Beginning balance Ending balance
Accrual Reversal Write-off
2023.6.30 117,868,890.37 1,000,356.95 38,600,000.00 78,268,533.42
2022.12.31 102,237,112.42 17,018,007.91 1,386,229.96 117,868,890.37
(3) Disclosure of accounts receivable
In RMB Yuan
Ending balance
Items Book balance Provision for bad-debts
Book value
Amount （%） Amount （%）
Individual assessment of credit 8,780,451,896.59 96.35 37,652,846.20 0.43 8,742,799,050.39
expected loss and provision for bad
debts
Assess bad debt provision for 332,455,728.60 3.65 40,615,687.22 12.22 291,840,041.38
expected credit expected loss
according to credit risk characteristics
combination
Total 9,112,907,625.19 100.00 78,268,533.42 0.86 9,034,639,091.77
Beginning balance
Items Book balance Provision for bad-debts
Book value
Amount （%） Amount （%）
Individual assessment of credit 5,137,221,177.03 90.82 76,252,846.20 1.48 5,060,968,330.83
expected loss and provision for bad
debts
Assess bad debt provision for 519,152,535.16 9.18 41,616,044.17 8.02 477,536,490.99
expected credit expected loss
according to credit risk
characteristics combination
Total 5,656,373,712.19 100.00 117,868,890.37 2.08 5,538,504,821.82
(4) Accounts receivable of the top five ending balances collected by the debtor
As of June 30, 2023, the top five accounts receivable amounted to RMB 7003710837.32, accounting for 76.85% of the total accounts
receivable (December 31, 2022: RMB 3044844058.24, accounting for 53.83% of the total accounts receivable).
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
2. Other receivables
In RMB Yuan
Items Ending balance Beginning balance
Dividends receivable 180,656,814.04
Other receivables 106,460,223.26 859,026,748.64
Total 287,117,037.30 859,026,748.64
(1) Dividends receivable
In RMB Yuan
Items ( or invested units ) Ending balance Beginning balance
China South Industry Group Finance Co., Ltd. 180,656,814.04
Total 180,656,814.04
(2) Other receivables
1) Aging analysis of other receivables is as follows:
In RMB Yuan
Account receivable age Ending balance Beginning balance
Within 1 year 101,340,518.06 842,446,117.27
1 to 2 years 3,795,520.37 7,116,112.63
2 to 3 years 100,000.00 1,226,346.51
Over 3 years 8,337,264.46 15,300,830.26
Total 113,573,302.89 866,089,406.67
Minus:Provision (7,113,079.63) (7,062,658.03)
Net value of other receivables 106,460,223.26 859,026,748.64
2) Analysis of other receivables by nature is as follows:
In RMB Yuan
Items Ending balance Beginning balance
Petty cash 52,736,507.27 62,920,147.86
Prepaid equity investment 35,000,000.00 399,486,432.52
Internal transactions 5,815,029.62 32,946,539.47
Energy-saving and new energy subsidy 338,394,118.63
Others 12,908,686.37 25,279,510.16
Total 106,460,223.26 859,026,748.64
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
3) The changes in the provision for bad debts for other receivables based on the 12-month expected credit loss and the
expected credit loss for the entire duration are as follows:
In RMB Yuan
Report period Amount
Items Beginning balance Ending balance
Accrual Reversal
2023.6.30 7,062,658.03 74,667.40 24,245.80 7,113,079.63
2022.12.31 7,062,658.03 74,667.40 24,245.80 7,113,079.63
4) Top five debtors of other receivables are as follows:
In RMB Yuan
Ending
Proportion of total
Items Nature of payment Ending balance Aging balance of
other receivables (%)
provision
First place Investment funds 35,000,000.00 Within 1 year 30.82
Second place Internal transactions 4,628,877.79 Within 1 year 4.08
Third place Margin 4,058,265.28 Within 1 year 3.57
Fourth place Margin 3,200,000.00 Within 1 year 2.82
Fifth place Margin 2,000,000.00 Over 5 years 1.76
Total 48,887,143.07 43.05
5) Other receivables derecognized due to transfer of financial assets
As of June 30, 2023, the Group had no other receivables derecognized as financial asset transfers (December 31, 2022: None).
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
3. Long-term equity investment
（1） Investment in subsidiaries
In RMB Yuan
Changes during report period
Ending Balance of
Investee Opening Balance reduce Ending Balance
Addition Provision for impairment provision
investment
Nanjing Changan Automobile Co., Ltd. 422,533,259.00 422,533,259.00
Chongqing Changan International Automobile 203,068,581.00 203,068,581.00
Sales Co., Ltd.
Chongqing Changan Automobile Supporting 29,700,000.00 29,700,000.00
Service Co., Ltd.
Chongqing Changan Special Automobile Co., 2,500,000.00 2,500,000.00
Ltd.
Chongqing Changan Europe Design Center 155,469,913.50 155,469,913.50
Co., Ltd.
Chongqing Changan New Energy Automobile 49,194,195.00
Co. Ltd.
Changan United Kingdom R&D Center Co., 250,093,850.95 250,093,850.95
Ltd.
Chongqing Changan Connected Car 88,500,000.00 88,500,000.00
Technology Co., Ltd.
Beijing Changan R&D Center Co., Ltd. 1,000,000.00 1,000,000.00
Changan United States R&D Center Co., Ltd. 10,243,460.00 10,243,460.00
Changan Japan Designing Center Co.,Ltd. 1,396,370.15 1,396,370.15
Hefei Changan Automobile Co.,Ltd. 1,535,367,765.23 1,535,367,765.23
Changan Automobile Russia Co., Ltd. 251,242,589.15 251,242,589.15
Chongqing Changan Lingyao Automobile Co., 594,949,059.30 594,949,059.30
Ltd.
Changan Automobile Investment (Shenzhen) 237,889,511.00 237,889,511.00
Co., Ltd
Chongqing Anyi Automobile Technical Service 2,000,000.00 2,000,000.00
Co., Ltd.
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Guangzhou Changan New Energy Automobile 4,000,000.00 4,000,000.00
Co. Ltd.
Xiamen Changan New Energy Automobile Co. 2,000,000.00 2,000,000.00
Ltd.
Chongqing Chehemei Technology Co., Ltd. 10,000,000.00 10,000,000.00
Nanjing Changan New Energy Automobile 50,000,000.00 50,000,000.00
Sales & Service Co., Ltd.
Chongqing Changan Automobile Software 99,000,000.00 99,000,000.00
Technology Co., Ltd.
Chongqing Changan Kaicheng Automobile 977,793,971.55 977,793,971.55
Technology Co., Ltd.
Chongqing Xingzhi Technology Co., Ltd
Chongqing Changan Technology Co., Ltd 90,000,000.00 90,000,000.00
Deepal Automobile Technology Co., Ltd 1,655,606,604.29 1,655,606,604.29
Total 5,018,748,330.83 1,655,606,604.29 6,674,354,935.12 49,194,195.00
（2） Investment in associates and joint ventures
In RMB Yuan
Changes during report period
Investee Opening Balance Investment income/loss under equity Ending Balance
Addition Others
method
1. Joint ventures
Changan Ford Automobile Co., Ltd. 2,934,876,043.99 522,860,908.17 3,457,736,952.16
Changan Mazda Automobile Co.,
Ltd.
Changan Mazda Engine Co., Ltd.
Nanchang Jiangling Investment Co.,
Ltd.
Subtotal 7,267,680,136.01 862,959,808.34 (423,000,000.00) 7,707,639,944.35
2. Associates
Chongqing Changan Kuayue
209,768,936.34 5,402,511.72 215,171,448.06
Automobile Co., Ltd.
Chongqing Changan Kuayue Vehicle
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Marketing Co., Ltd
Beijing Fang'an Crescent Taxi Co.,
Ltd
Changan Automobile Financing Co.,
2,778,898,410.33 172,182,412.71 2,951,080,823.04
Ltd.
Avatr Technology (Chongqing) Co.,
1,228,287,241.13 (716,583,868.90) 511,703,372.23
Ltd.
Nanjing Chelai Travel Technology
624,773.31 (92,277.85) 532,495.46
Co., Ltd.
Coresing Semiconductor Technology
25,452,425.26 71,917.19 25,524,342.45
Co., Ltd.
Nanjing Leading Equity Investment
1,112,210.69 (5,089.84) 1,107,120.85
Management Co., Ltd.
Nanjing Leading Equity Investment
2,570,421,464.70 (51,784.35) 2,570,369,680.35
Partnership (Limited Partnership)
Zhongqi Chuangzhi Technology Co.,
168,492,790.78 (6,754,636.46) 161,738,154.32
Ltd.
Chongqing Changxin Zhiqi Private
Equity Investment Fund Partnership 170,440,054.08 242,103.89 170,682,157.97
(Limited Partnership)
Anhe Chongqing Dingfeng
Automobile Contract Private Equity 61,568,706.08 4.26 61,568,710.34
Investment Fund
Chongqing Changan Innovation
Private Equity Investment Fund
1,000,844.59 446.93 1,001,291.52
Partnership Enterprise (Limited
Partnership)
Deepal Automobile Technology Co.,
369,885,426.05 (45,900,263.46) (323,985,162.59)
Ltd
Chongqing Changxian Intelligent
102,000,000.00 66,933.68 102,066,933.68
Technology Co., Ltd
Jiangling Holding Co., Ltd.
Subtotal 7,585,953,283.34 102,000,000.00 (591,421,590.48) (323,985,162.59) 6,772,546,530.27
Total 12,366,388,785.42 102,000,000.00 (141,552,078.57) (323,985,162.59) 12,002,851,544.26
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
4. Operating revenue and cost
In RMB Yuan
Report period Same period of last year
Items
Revenue Cost Revenue Cost
Main business 51,607,236,773.22 44,256,352,201.98 47,015,290,808.29 39,177,855,123.67
Other business 2,769,138,423.99 1,060,042,185.33 3,275,009,762.83 1,737,129,368.96
Total 54,376,375,197.21 45,316,394,387.31 50,290,300,571.12 40,914,984,492.63
5. Investment income
In RMB Yuan
Items Current amount Prior-period amount
Long-term equity investment losses
544,650,000.00 594,000,000.00
accounted for by the cost method
Long-term equity investment losses
(141,552,078.57) (92,372,274.55)
accounted for by the equity method
Investment income from disposal of long-term equity investments 1.00
The investment income of financial asset held for trading during its
1,406,842.07 2,690,400.00
holding period
Dividend income from remaining investments in
180,656,814.04 144,222,128.67
other equity instruments
Gains from the remeasurement of the remaining equity at fair value after
337,513,868.21
the loss of control
Total 585,161,578.54 986,054,122.33
Long-term equity investment income under equity method
In RMB Yuan
Investee Current amount Prior-period amount
Changan Ford Automobile Co., Ltd. 399,619,898.50 522,860,908.17
Changan Mazda Automobile Co., Ltd. (100,026,283.01) 236,050,510.98
Changan Mazda Engine Co., Ltd. 4,107,980.55 15,784,275.65
Nanchang Jiangling Investment Co., Ltd. 146,167,915.87 88,264,113.54
Jiangling Holding Co., Ltd. (41,202,595.77)
Chongqing Changan Kuayue Automobile Co., Ltd. 5,402,511.72 (20,594,524.55)
Changan Automobile Financing Co., Ltd. 172,182,412.71 152,764,747.43
Avatr Technology (Chongqing) Co., Ltd. (716,583,868.90) (82,620,701.16)
Hainan Anxinxing Information Technology Co., Ltd. (368,900.00)
Nanjing Chelai Travel Technology Co., Ltd. (92,277.85) (97,213.22)
Coresing Semiconductor Technology Co., Ltd. 71,917.19 (552,714.09)
Nanjing Leading Equity Investment Management Co., Ltd. (5,089.84) (9,266.61)
Nanjing Leading Equity Investment Partnership (Limited (51,784.35) (42,899.72)
Partnership)
Zhongqi Chuangzhi Technology Co., Ltd. (6,754,636.46) (9,012,542.48)
Chongqing Changxin Zhiqi Private Equity Investment Fund 242,103.89 (5,754.39)
Partnership (Limited Partnership)
Anhe Chongqing Dingfeng Automobile Contract Private 4.26
Equity Investment Fund
Chongqing Changan Innovation Private Equity Investment 446.93
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
Fund Partnership Enterprise (Limited Partnership)
Chongqing Changxian Intelligent Technology Co., Ltd 66,933.68
Deepal Automobile Technology Co., Ltd (45,900,263.46) (953,589,718.33)
Total (141,552,078.57) (92,372,274.55)
XVIII. Additional information
1. Non-recurring profit and loss statement of current period
√ Applicable □ Non-applicable
In RMB Yuan
Items Amount explanation
Profit and loss of non-current assets disposition 366,667,730.28
Government subsidies counted in current profit and loss (except the 856,008,089.78
government subsidies which are closely related with business events,
and given certain amount according to national standards)
Interest on late payment of funds charged to non-financial enterprises 17,949,915.40
In addition to the effective hedging business related to the company's (23,334,661.15)
normal business operations, the fair value changes in gains and losses
arising from holding trading financial assets
Income from business combinations not under common control 5,021,482,128.74
Other non-operating income and expenses other than the above items 79,796,614.79
Minus:Income tax impact 171,307,435.24
Minority shareholders' equity impact (after tax) 3,341,059.80
Total 6,143,921,322.80 --
If the company identifies non-recurring profit and loss defined by Information Disclosure by Companies Offering Securities to the
Public No. 1--non-recurring profit and loss and non-recurring profit and loss defined by Information Disclosure by Companies Offering
Securities to the Public No. 1--non-recurring profit and loss as recurring profit and loss, explain the reasons.
2. Return on equity and earnings per share
Weighted average Earnings per share
Profit in report period return on equity
（%） Basic EPS(yuan/share) Diluted EPS(yuan/share)
Net profit belonging to the Company’s common
11.70% 0.78 0.76
stockholders
Net profit belonging to the Company’s common
stockholders after deducting non-recurring profit 2.31% 0.15 0.15
and loss
The group's presentation of return on net assets and earnings per share is in accordance with the preparation rules for information
disclosure of companies offering securities to the public No. 9 - Calculation and disclosure of return on net assets and earnings per
share (revised in 2010) of the CSRC.
3. Accounting data difference by domestic and foreign accounting standards
(1) Net profit and net asset differences from financial statements by international accounting standards and PRC GAAP
□ Applicable √ Not applicable
(2) Net profit and net asset differences from financial statements by overseas accounting standards and PRC GAAP
□ Applicable √ Not applicable
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Chongqing Changan Automobile Company Limited 2023 Semi-Annual Report
(3) Description on accounting data differences by domestic and foreign accounting standards. If auditing institutions abroad
have adjusted the data differences, identify the name of the auditing institution abroad.
None
4. Others
□ Applicable √ Not applicable
162
