Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Chongqing Jianshe Vehicle System Co., Ltd.
The Semi-Annual Report 2019
2019-066
July 2019
1
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
I. Important Prompts, Table of Contents, and Definitions
The Board of Directors, The Supervisory Committee, the supervisors and the directors of the Company guarantee
that there are no significant omissions, fictitious or misleading statements carried in the Report and we will accept
individual and joint responsibilities for the truthfulness, accuracy and completeness of the Report.
Mr. Lv Hongxian, The Company leader, Mr.Tan Mingxian, Chief financial officer and the Ms.Niu Yanli, the
person in charge of the accounting department (the person in charge of the accounting )hereby confirm the
authenticity and completeness of the financial report enclosed in the semi-report.
All directors presented the Board Meeting at which this report was examined.
Prospective statements carried in this report, such as business plans for future are not constituting any substantial
commitment to the investors. Please be cautious to the risks. This report is prepared both in English and Chinese.
When there is any conflict in understanding, the Chinese version shall prevail.
The Company analyzed the risks that may exist in the course of the operation of the Company and the
countermeasures in the section "The Risks Faced by the Company and the Countermeasures " in Section 4
"Discussion and Analysis of Business Operation Situation", so please pay attention to that relevant contents.
The Company will not distribute cash dividend or bonus shares, neither capitalizing of common reserves for the
report period.
2
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Table of Contents
2019 Semi-Annual Report
I.Important Notice and Definitions
II. Corporate Profile and Key Financial Results
III. Business Profile
IV. Performance Discussion and Analysis
V. Important Events
VI. Change of share capital and shareholding of Principal Shareholders
VII. Situation of the Preferred Shares
VIII. Information about Directors, Supervisors and Senior Executives
IX. Corporate Bonds .
X. Financial Report
XI. Documents available for inspection
3
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Definition
Terms to be defined Defined as Definition
Company, the Company, Jianmo Stock,
Defined as Chongqing Jianshe Vehicle System Co., Ltd.
Jianshe Vehicle B
Shenzhen North Jianshe Motorcycle Co., Ltd. (predecessor of the
Shenjianmo Defined as
Company)
Jianmo B Defined as Chongqing Jianshe Motorcycle Co., Ltd. (predecessor of the Company)
Military Equipment Group Defined as China Military Equipment Group Co., Ltd.
Military Finance Co. Defined as Military Equipment Group Finance Co., Ltd.
Southern Motorcycle Defined as Chongqing Southern Motorcycle Co., Ltd.
Chongqing Jianshe Industry Co., Ltd. – former State-owned Jianshe
Jianshe Industry Defined as
Machinery Factory, Jianshe Industry (Group) Co., Ltd.
Jianshe Group Defined as Jianshe Industrial (Group) Co., Ltd.
Jianshe Mechanical and Electric Defined as Chongqing Jianshe Mechanical and Electric Co., Ltd.
HANON,KOREA HANON Refined as Korea Hanon System Co., Ltd.
Chongqing Jianshe HANON Automobile Thermal Management System
Jianshe HANON Refined as
Co., Ltd.
China Jialin Defined as China Jialin Industry Co., Ltd. (Group)
Jinan Qingqi Defined as Jinan Qingqi Motorcycle Co., Ltd.
Changan Auto Defined as Chongqing Changan Automobile Co., Ltd.
Luoyang Northern Defined as Luoyang Northern Enterprise Group Co., Ltd.
Vehicle air conditioner Defined as Chognqing Jianshe Automobile Air-conditioner Co., Ltd.
Import & Export Co. Defined as Chongqing Northern Jianshe Import & Export Co., Ltd.
Shanghai Jianshe Defined as Shanghai Jianshe Motorcycle Co., Ltd.
Chongqing Jianya Defined as Chongqing Jianshe YAMAHA Motorcycle Co., Ltd.
Zhuzhou Jianya Defined as Zhuzhou Jianshe YAMAHA Motorcycle Co., Ltd.
Pingshan Taikai Defined as Chongqing Pingshan Taikai Carburetor Co., Ltd.
South Air International Defined as South Air International Co., Ltd.
The company has made an agreement to sale the 100% stake of Jianshe
Mechanical and Electric Company-the company’s subsidiary funded by
Major asset restructuring Defined as
the liabilities and the motorcycle business related assets held by the
company to Military Equipment Group.
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
II. Corporate Profile and Key Financial Results
1. Basic Information
Stock ID Jianshe Vehicle B Stock Code 200054
Stock Exchange Listed in Shenzhen Stock Exchange
Company Name in Chinese 重庆建设汽车系统股份有限公司
Short form of Company Name
建车 B
in Chinese
Company Name in English Chongqing Jianshe Vehicle System Co., Ltd
Short form of Company Name
JSVS-B
in English
Legal representative: Lv Hongxian
2. Contact person and contact manner
Secretary of the Board Representative of Stock Affairs
Name Zhang Hushan Li Wenling
No.1 Jianshe Road, Huaxi Industrial Zone, No.1 Jianshe Road, Huaxi Industrial Zone, Ba’nan
Address
Ba’nan District, Chongqing District, Chongqing
Tel. 023-66295333 023-66295333
Fax. 023-66295333 023-66295333
E-mail. cqjsmc@jianshe.com.cn cqjsmc@jianshe.com.cn
3.Other
(1)Way to contact the Company
Whether registrations address, offices address and codes as well as website and email of the Company changed in
reporting period or not
□ Applicable □√ Not Applicable
The registered address, office address and their postal codes, website address and email address of the Company
did not change during the reporting period. The said information can be found in the 2018 Annual Report.
（2）About information disclosure and where this report is placed
Did any change occur to information disclosure media and where this report is placed during the reporting period?
□ Applicable √ Not applicable
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
The newspapers designated by the Company for information disclosure, the website designated by CSRC for
disclosing this report and the location where this report is placed did not change during the reporting period. The
said information can be found in the 2018 Annual Report.
4.Summary of Accounting data and Financial index
May the Company make retroactive adjustment or restatement of the accounting data of the previous years
□ Yes √ No
Reporting period Same period of last year YOY+/-（%）
Operating income（Yuan） 418,614,177.29 511,696,731.41 -18.19%
Net profit attributable to the shareholders
-36,884,117.51 66,076,528.49 -155.82%
of the listed company（Yuan）
Net profit after deducting of non-recurring
gain/loss attributable to the shareholders of -35,805,459.18 65,795,940.72 -154.42%
listed company（Yuan）
Cash flow generated by business operation,
119,150,528.53 28,486,030.25 318.28%
net（Yuan）
Basic earning per share(Yuan/Share) -0.3090 0.5535 -155.83%
Diluted gains per share(Yuan/Share) -0.3090 0.5535 -155.83%
Weighted average ROE(%) -13.42% 21.04% -34.46%
As at the end of the reporting As at the end of last
YOY+/-（%）
period year
Gross assets (Yuan) 1,295,002,639.52 1,461,770,573.54 -11.41%
Shareholders’ equity attributable to
256,417,333.03 293,301,450.54 -12.58%
shareholders of the listed company（Yuan）
5. Differences between accounting data under domestic and overseas accounting standards
1. Differences of net profit and net assets disclosed in financial reports prepared under international and Chinese
accounting standards.
□ Applicable √Not applicable
No difference.
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese
accounting standards.
□ Applicable √Not applicable
No difference.
6.Items and amount of deducted non-current gains and losses
6
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
√ Applicable □ Not applicable
In RMB
Items Amount Notes
Non-current asset disposal gain/loss(including the write-off part for which assets impairment
-1,712,382.50
provision is made)
Govemment subsidy recognized in current gain and loss(excluding those closely related to the
30,000.00
Company’s business and granted under the state’s policies)
Other non-business income and expenditures other than the above 603,724.17
Total -1,078,658.33 --
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Compaines Offering their Securities to the Public-Non-recurring Gains and Losses and
its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure
for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as
recurring gains and losses, it is necessary to explain the reason.
□ Applicable √ Not applicable
None of Non-recurring gain /loss items recorgnized as recurring gain /loss/items as defined by the information
disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
III. Outline of Company Business
Ⅰ.Main Business the Company is Engaged in During the Report Period
Whether the company needs to comply with the disclosure requirements of the particular industry
No
The company engages mainly in production and sales of the vehicle air compressor including the vane iron
and aluminous compressor, piston swash-plate fixed discharge rate compressor, piston swash-plate variable
discharge rate compressor and motor compressor (with the discharge rate from 32cc to 480cc), has been awarded
“China Famous Brand”, “High-quality Product of French Technological Quality Surveillance Evaluation
Commission” and “China Recommended Product for Entry into WTO”, etc. for products and has the strategical
cooperative partners including the leading production and sales volume in terms of finished automobile such as
Chanan Auto, PEUGEOT, Dongfeng Nissan and Great Wall Motors, etc.
Ⅱ. Major Changes in Main Assets
1. Major Changes in Main Assets
Main assets Major changes
24.64% equity (RMB 102.74 million) of Jianshe HANON is acquired, and
Equity assets
the registered capital of Pingshan Taikai is reduced by RMB 30.19 million.
2. Main Conditions of Overseas Assets
□ Applicable √Not applicable
III. Analysis On core Competitiveness
Whether the company needs to comply with the disclosure requirements of the particular industry
No
The company has the enterprise technology center which recognized by Chongqing City, established the rotary
vane technology platform and the piston technology platform and formed the three series products of iron,
aluminum and electric-driven. Through continuous independent innovation and introduction, the company has
shaped a strong R&D capability of automotive air conditioner compressor, and the products are mature and
cost-effective with stable performance. In the rotary vane compressor market, the company’s product has
constantly gained a stable market share. The advanced equipment which introduced from countries including the
United States, Germany, Switzerland and Japan accounts for more than 80%, enabling the company to have
precision manufacturing capacity. In the last two years, the company increased the investment in technological
transformation, so the company has realized the production and sales scale of 2.3 million per year, and the
company has made a comprehensive improvement on on-line testing ability, quality testing ability and R&D
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
capability and experimental capability.
IV. Performance Discussion and Analysis
Ⅰ.General
In the first half year, the company sold 1.0526 million sets of auto air-conditioning compressors due to the
decline in the production and sales scale of the auto industry, down 14.28% year-on-year, with 50.1% of the
annual plan completed. The sales volume of domestic trade reached 520,000 sets, with a decrease by 41.21%
compared with the same period; the sales volume of foreign trade reached 530,000 sets, with an increase by
56.30% over the same period.
Affected by such factors as the decline in sales volume of products, the reduction in prices of automotive main
engine plants and the increase in raw materials, the company's main business income decreased by 15.58% year
on year, the cost of main business decreased by 9.73% year on year, and the gross profit margin decreased by
5.76% compared with the same period. Affected by the decline in sales volume of domestic brands, the domestic
market sales revenue of the company's products decreased by 38.62% year on year. Through the expansion of the
foreign automobile market, the sales revenue of the company's products in the foreign market increased by
75.92% year on year.
II.Main business analysis
Refer to relevant contents of “1.Summarization” in “Discussion and Analysis of Management”.
Changes in the financial data
In RMB
This report period Same period last year YOY change（%） Cause change
Operating income 418,614,177.29 511,696,731.41 -18.19%
Operating cost 374,155,299.95 424,270,937.01 -11.81%
Sale expenses 9,005,395.08 12,662,136.26 -28.88%
Administrative expenses 38,337,008.17 38,290,461.08 0.12%
Structural impact of
Financial expenses 11,222,802.17 20,585,397.71 -45.48%
financing due
Income tax expenses 205,333.76 561,775.84 -63.45% Lower profit
R & D Investment 6,342,684.21 5,492,327.34 15.48%
Cash flow generated by Increase in exports,
119,150,528.53 28,486,030.25 318.28%
business operation, net increase in cash receipts
Net cash flow generated Last year, there was a
-8,030,645.77 41,235,623.28 -119.48%
by investment sale of equity income
Net cash flow generated
-163,195,614.16 -34,957,175.84 -366.84% Increase in bill settlement
by financing
Net increasing of cash
-52,075,731.40 34,764,477.69 -249.80% Increase in bill settlement
and cash equivalents
Major changes in profit composition or sources during the report period
9
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
□ Applicable √Not applicable
No major changes.
Breakdown of main business
In RMB
Increase/decrease Increase/decrease
Increase/decrease
of principal of gross profit
of reverse in the
Operating Gross profit business cost over rate over the
operating costs same period of
revenue rate(%) the same period same period of
the previous
of previous year the previous year
year(%)
(%) (%)
On Industries
Industry 418,614,177.29 374,155,299.95 10.62% -13.30% -6.65% -6.37%
On products
Vehicle air
405,277,406.43 360,028,273.54 11.16% -15.58% -9.73% -5.76%
conditioner
Other 13,336,770.86 14,127,026.41 -5.93% 382.10% 625.64% -35.55%
On Area
Domestic 230,853,717.66 199,960,051.78 13.38% -38.62% -33.70% -6.43%
Overseas 187,760,459.63 174,195,248.17 7.22% 75.92% 75.59% 0.17%
III. Non-core business analysis
√ Applicable □Not applicable
In RMB
Ratio to the total
Amount Notes of the causes Recurring or not
profit amount (%)
Equity method long-term equity
Investment income -10,791,697.77 29.42% Yes
investment
Asset impairment 280,777.30 0.76% Bad debt preparation No
Non-operating
232,624.17 0.63% No
income
Asset disposal gains
-1,712,382.50 4.66% Disposal of assets No
and losses
Other earnings 401,100.00 1.09% Government subsidy No
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
IV. Analysis of assets and liabilities
1.Significant changes in asset composition
In RMB
End of Reporting period End of same period of last year
Reason for
As a percentage Change in
As a percentage of significant
Amount of total Amount percentage(%)
total assets(%) change
assets(%)
Monetary fund 175,083,490.58 13.52% 306,009,444.15 21.45% -7.93%
Account
241,375,131.90 18.64% 344,712,842.84 24.16% -5.52%
receivable
Inventories 168,166,967.62 12.99% 190,097,635.16 13.32% -0.33%
Real estate Leased area
34,413,632.16 2.66% 54,413,486.25 3.81% -1.15%
Investment reduction
Long-term equity
246,966,038.98 19.07% 104,127,592.86 7.30% 11.77% New investment
investment
Fixed assets 333,238,183.59 25.73% 364,119,471.83 25.52% 0.21%
Construction in Transfer fixed
212,893.56 0.02% 5,032,611.25 0.35% -0.33%
process assets
Short-term loans 252,000,000.00 19.46% 262,000,000.00 18.36% 1.10%
Note payable 512,840,000.00 39.60% 472,278,000.00 33.10% 6.50%
2.Asset and Liabilities Measured by Fair Value
□ Applicable √ Not applicable
3. Restricted asset rights as of the end of this Reporting Period
Items Ending book value Reason
Monetary fund 154,616,698.79 Bill margin
Total 154,616,698.79
V. Analysis on investment Status
1. General
√ Applicable □Not applicable
Investments made in the Reporting Period
Investments made in the prior year (RMB) Increase/Decrease(%)
（RMB）
102,743,305.30 106,500,000.00 -3.53%
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
2.Condition of Acquiring Significant Share Right Investment during the Report Period
√ Applicable □Not applicable
In RMB
Target Main Invest Invest Shareh Capital Partner Invest Product Progre Predict Investm Litigatio
compan busines ment ment olding source ment type ss to ed ent n
y name s way amount rate period the revenu profit Disclosu Disclos
balanc e and loss re date ure
e sheet of the （if Index(if
date current any) any)
period
See on
www.cn
info.co
m.cn
compan
y
Air announc
conditi ement
Develo on, on
pment, compre January
manufa ssor, 16,2019
cturing, motor Equity , April 1
sales cooling deliver 2019,
Jianshe and 102,74 Korea system, y April
Purcha 50 -7,077,7 April 1，
HANO import 3,305.3 24.64% Self HANO electro proced 0.00 No 12,
se years 33.94 2019
N of the 0 N nic ures 2019
auto compo comple and
thermal nents, ted June 21,
manage related 2019.
ment parts Announ
system and cement
CKD, No.
etc. 2019-00
3,2019-
015,201
9-024
and
2019-06
1.
102,74
-7,077,7
Total -- -- 3,305.3 -- -- -- -- -- -- 0.00 -- -- --
33.94
0
12
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
3.Situation of the Significant Non-equity Investment Undergoing in the Report Period
□ Applicable √ Not applicable
4.Investment of Financial Asset
（1）Securities investment
□ Applicable √ Not applicable
There was no investment in securities by the Company in the Reporting period.
（2）Investment in Derivatives
□ Applicable √ Not applicable
The Company had no investment in derivatives in the reporting period.
VI. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
2.Sales of major equity
□ Applicable √ Not applicable
Ⅶ.Analysis of the Main Share Holding Companies and Share Participating Companies
√ Applicable □ Not applicable
Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the Company
In RMB
Register
Company Operating
Type Main business ed Total assets Net assets Turnover Net Profit
name profit
capital
Air
Manufacturing 405,277,406. -3,237,440.
Subsidiari
Condition and sales of auto 16000 1,077,842,318.16 252,344,368.14 -3,232,822.18
es 43 04
air-conditioners
er Co.
Production and
Pingshan Shareholdi sales of USD 10 28,960,946.8 -5,542,443.
108,811,027.14 94,997,904.31 -5,601,133.87
Taikai ng motorcycles and million 9 92
company parts
Production and
Shareholdi
Jianshe sales of 50,626,815.5 -12,538,67
ng 42000 642,185,542.23 407,283,932.31 -12,538,179.57
HANON Automobile 5 9.57
company
Thermal Energy
13
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Management
system
Acquirement and disposal of subsidiaries in the Reporting period
√ Applicable □Not applicable
Ways of acquisition and
disposal of subsidiaries
Name Impact on overall operation and performance
during the reporting
period
1. Jianshe HANON becomes a joint venture of the company holding 50% equity after
the acquisition is completed. Such a joint venture shall not be included in the
Agreed acquisition of consolidated statement of the company and shall be accounted by the company in
24.64% equity of accordance with the long-term equity investment equity method. 2. During the transition
Jianshe
Jianshe HANON held period of equity transfer and a certain period after the completion of equity transfer,
HANON
by Jianshe Jianshe HANON is in the preparation period and the product market development
Electromechanical period, with the relatively large investment in the initial period. The production and
sales scale has not yet been formed, and there will be a certain loss in the initial period,
which will have an impact on the investment income of the Company.
Notes
VIII．Structured vehicle controlled by the Company
□ Applicable √ Not applicable
IX. Prediction of business performance for January -September 2019
Estimation of accumulative net profit from the beginning of the year to the end of next report period to be loss
probably or the warning of its material change compared with the corresponding period of the last year and
explanation of reason.
□ Applicable √ Not applicable
X. Risks facing the Company and countermeasures
1. Possible risks
1. Influence of industry condition. In the first half year, there was an obvious decline in the domestic
automobile market. The automobile main engine plant further transferred the cost pressure to the parts enterprises,
causing more intense competition in the automobile air-conditioning compressor market.
2. Customer dependencies. At present, more than 84% of the company’s total sales revenue is attributed to
top 5 big customers, indicating strong dependencies on large customers.
3. Investment risk. Jianshe HANON, the newly-established enterprise, is in the preparation period and the
product market development period. The production and sales scale has not yet been formed, and there will be a
certain loss in the initial period, which will have an impact on the investment income of the Company.
2. Solutions
Market shall be further explored to actively respond to changes in the industry and the market; core
competence shall be strengthened and cultivated to build technological and product reserves with core
14
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
competitiveness, thus increasing profit margin; Greater efforts shall be made to realize cost reduction in
procurement to ensure the achievement of the annual profit target. Vigorously develop the electric vehicle market
and accelerate the realization of economies of scale.
V. Important Events
I. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period
1.Annual General Meeting
Investor Index to disclosed
Meeting Type Convened date Disclosure date
participation ratio information
For details please
find the Resolutions
of first provisional
Shareholders’
Meeting of 2019,
First Provisional
Provisional Announcement
Shareholders’
Shareholders’ 76.83% April 11,2019 April 12,2019 2019-024 on
general meeting of
general meeting securities times,
2019
Hongkong
Commercial daily
and
http://www.cninfo.co
m.cn
For details please
find the Resolutions
of Shareholders’
Meeting of 2018,
Announcement
Annual General Annual General 2019-059 on
74.45% May 17,2019 May 18,2019
Meeting of 2018 Meeting securities times,
Hongkong
Commercial daily
and
http://www.cninfo.co
m.cn
2. Preferred stockholders restored voting rights to request to convene Provisional Shareholders’ Meeting.
□Applicable√Not applicable
15
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
II. Proposal for profit distribution and converting capital Reserve into share actual for the reporting period
□ Applicable √Not applicable
For the reporting period, the Company plans not to distribute cash dividends or bonus shares or convert capital
reserve into share capital.
III. The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of the
reporting period made by the company, shareholder, actual controller, acquirer, director, supervisor,
senior management personnel and other related parities.
Not existent
IV. Particulars about engagement and disengagement of CPAs firm
Whether the semi-annual financial report had been audited?
□ Yes √ Not
The semi-annual report was not audited.
V.Explanations given by board of directors and supervisory board regarding “ Modified auditor’s” Issued
by CPAs firm for the reporting period
□ Applicable √Not applicable
VI. Explanations given by Board of Directors regarding “ Modified auditor’s Report” Issued for last year
□ Applicable √Not applicable
VII. Bankruptcy and restructuring
□ Applicable √Not applicable
No such cases in the reporting period.
VIII. Lawsuit
Signifieant lawsuits or arbitrations
√ Applicable □Not applicable
Involved
Index to
General amount Decisions and Execution of Disclosure
Provision Progress disclosed
information （RMB effects decisions date
information
10,000)
Chongqing The case No judgment has See details
November
HYOSOW Parts 2,110.63 No will be been made, and Unknown in the
16,2018
Co., Ltd., heard for a the company fully company’s
16
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Chongqing Bisu third time in accrued bad debts announcem
Yumbo Power July 2019. in 2018. ent
Technology Co., published
Ltd. and on
Chongqing Kaite securities
Engine Technology times,
Co., Ltd. have Hongkong
failed to pay a total Commercial
of 21.1063 million daily and
yuan for the air http//www.c
conditioning ninfo.com.c
compressor and n
products of the (Announce
wholly-owned ment
subsidiary No.:2018-0
automobile air 65)
conditioning
company. The
automobile air
conditioning
company filed a
lawsuit against the
above three
companies with the
Chongqing Yubei
District People's
Court on
November 2, 2018,
and Chongqing
Yubei District
People's Court
accepted the
lawsuit and issued
a Notice of
Acceptance on
November 13,
2018 [(2018)
Y0112MC24010,
(2018)
Y0112MC23992,
(2018)
Y0112MC24011]
A wholly-owned Automobile The company has The case is November See details
399.99 No
subsidiary of the Co., Ltd. fully accrued bad currently under 16,2018 in the
17
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
company, did not issue debts implementation. company’s
Automobile Air the payment announcem
Conditioning on schedule. ent
Company, supplied In published
automotive air December on
conditioning 2018, securities
compressors to Chongqing times,
Hafei Automobile Jianshe Hongkong
Co., Ltd. and Automobile Commercial
fulfilled its supply Air daily and
obligations. Hafei Conditioner http//www.c
Auto has paid part Co., Ltd. ninfo.com.c
of the purchase applied to n
price and still owes the court for (Announce
3,999,900 yuan. compulsory ment
After mediation by enforcement No.:2018-0
the Pingfang . The case is 65)
District People's currently
Court, Harbin City, under
Heilongjiang implementat
Province (Paper of ion.
Civil Mediation
issued on October
24, 2018 [(2018)
H0108MC1416]),
Hafei Auto agreed
to pay 3,999,900
yuan in arrears.
Other legal matters
□ Applicable √ Not applicable
IX. Punishments and rectifications
□ Applicable √ Not applicable
No such cases in the reporting period.
X. Credit conditions of the Company as well as its Controlling shareholder and actual Controller
□ Applicable √ Not applicable
XI.Equity incentive plans, employee stock ownership plans or other incentive measures for employees
□ Applicable √ Not applicable
No such cases in the reporting period.
18
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
XII. Material related transactions
1. Related transactions in connection with daily operation
√ Applicable □Not applicable
Whether
Trading
Principl over the
limit Market Index
Subjects e of Amount approve price of of
of the pricing of trade Ratio in approve Date of
Related Relation Type of Price of Way of similar inform
related the ten similar d disclosu
parties ship trade trade payment trade ation
transacti related thousan trades d ten re
availabl disclos
ons transacti d yuan limited e ure
ons thousan
or not
d yuan
(Y/N)
http//w
ww.cni
nfo.co
Jianshe Controll
Purchas Fair m.cn.
Mechani ing Spare 100.00 April
e of Market 350 153 350 No Cash 350 Annou
cal and sharehol parts % 25,2019
goods Price nceme
Electric der
nt
No.:20
19-037
China
Changa
n
Automo
Sale of
bile The
finished
Group Under Fair same
Sales of parts April
Co., same Market 18000 4,968 13.00% 18,000 No Cash 18000 as
goods and 25,2019
Ltd. control Price above
compon
And its
ents
affiliate
d
Enterpri
ses
The
Jianshe
Under Rental Fair same
Mechani Sales of 100.00 April
same warehou Market 500 219 500 No Cash 500 as
cal and goods % 25,2019
control se Price above
Electric
Chongqi Joint Sales of Spare Fair 700 81 0.20% 700 No Cash 700 April The
19
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
ng venture goods parts Market 25,2019 same
Jianya of sales Price as
controlli above
ng
sharehol
der
Joint
South venture The
Air of Spare Fair same
Sales of April
Internati controlli parts Market 50 4 50 No Cash 50 as
goods 25,2019
onal ng sales Price above
sharehol
der
The
Under Fair same
Jianshe April
same Services Test fee Market 100 60 12.00% 100 No Cash 100 as
Industry 25,2019
control Price above
China
Changa
n
Automo
bile The
Group Under Accept Fair same
April
Co., same Services mainten Market 250 69 13.00% 250 No Cash 250 as
25,2019
Ltd. control ance Price above
And its
affiliate
d
Enterpri
ses
Total -- -- 5,554 -- 19,950 -- -- -- -- --
Details of any sales return of a large
Nil
amount
Give the actual situation in the report
The total amount of various types of routine connected transactions that occurred in the
period where a forecast had been
Company by categories did not exceed the scope of the examination and approval.
made for the total amounts of routine
related-party transactions by type to
occur in the current period(if any)
Reason for any significant difference
between the transaction price and the Not applicable
market reference price (if applicable)
20
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
2. Related-party transactions arising from asset acquisition or sold
□ Applicable √ Not applicable
No such cases in the reporting period.
3. Related-party transitions with joint investments
□ Applicable √ Not applicable
No such cases in the reporting period.
4.Contact of related credit and debt
√ Applicable □Not applicable
Whether there is non operating related debt and debt
□Yes√ No
No such cases in the reporting period.
5. Other significant related-party transactions
√Applicable □Not applicable
Acquisition of Jianshe HANON Equity Project:
In 2017, the company co-invested with Jianshe Mechanical and Electric and HANON in establishing
Jianshe HANON, a joint venture, in which the Company held 25.36% equity; 24.64% equity are held by Jianshe
Mechanical and Electric; HANON holds 50% equity. In order to highlight the development of the main business
and reduce affiliated transactions, the company purchased 24.64% equity of Jianshe HANON held by Jianshe
Mechanical and Electric with an appraisal value of RMB 102.7433 million through the Resolution on Purchasing
Equity of Chongqing Jianshe HANON Automobile Thermal Management System Co., Ltd. and Related
Transactions was examined and approved at the 15th session of the eighth board meeting of the company held
on March 31, 2019 and the first extraordinary general meeting of 2019 held on April 11, 2019.
The registration of industrial and commercial alteration of foreign-invested enterprises and the filing of the
Articles of Association of Chongqing Jianshe HANON Automobile Thermal Management System Co., Ltd. were
completed on June 14, 2019, with the Business License renewed by Chongqing Municipal Bureau of Market
Supervision and the Notice on the Registration Alteration of Foreign-invested Enterprises WZBZZ (BNSJ)
obtained. The company completed the alteration filing in Chongqing Municipal Commission of Commerce and
obtained the Receipt of Alteration Filing for Foreign-invested Enterprises (YSWZB 201900344) on June 19, 2019.
At this point, the acquisition of Jianshe HANON equity project was fully completed. After the completion of the
transaction, the Company and HANON hold 50% equity in Jianshe HANON respectively.
Website for temporary disclosure of the connected transaction
Announcement Date of disclosure Website for disclosure
See details in the company’s announcement
Announcement of 15th meeting of the Eighth published on securities times, Hongkong
April 1,2019
board of directors Commercial daily and
http//www.cninfo.com.cn (Announcement
21
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
No.:2019-014)
Announcement on Supplementary Notice of http//www.cninfo.com.cn. Announcement
April 1,2019
the First provisional General Meeting in 2019 No.:2019-016
Announcement on Proposed Purchase of
Equity of Chongqing Jianshe HANON http//www.cninfo.com.cn. Announcement
April 1,2019
Automobile Thermal Management System No.:2019-015
Co., Ltd. and Related Transactions
See details in the company’s announcement
Announcement of Resolutions of the first published on securities times, Hongkong
provisional shareholders’ general meeting of April 12,2019 Commercial daily and
2019 http//www.cninfo.com.cn (Announcement
No.:2019-024)
See details in the company’s announcement
Announcement on Completion of Equity
published on securities times, Hongkong
Transfer Procedures for Chongqing Jianshe
June 21,2019 Commercial daily and
HANON Automobile Thermal Management
http//www.cninfo.com.cn (Announcement
System Co., Ltd.
No.:2019-061)
XIII. Particulars about the non-operating occupation of funds by the Controlling shareholder and other
related parties of the Company
□Applicable √ Not applicable
The company was not involved in the non-operating occupation of funds by the controlling shareholder and other
related parties during the reporting period.
XIV. Significant contracts and execution
1.Entrustments, contracting and leasing
(1) Trusteeship
□Applicable √ Not applicable
No trusteeship, contract or leasing for the Company in reporting period.
(2) Contract
□ Applicable √ Not applicable
No any contract for the Company in the reporting period.
(3) Lease
√Applicable □ Not applicable
Lease description
22
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Name of Name of Leased Amount lease start Lease Lease Determinat The impact Whether or Associatio
lessor lessee assets （RMB date Terminatio income ion basis of of Leasing not related n
10,000） n Date recognized lease income on transaction Relationsh
（RMB income. the s ip
10,000） Company
Jianshe Jianshe Plant 481 January December 219 Contract Affect Yes Under
Stock Mechanical 1,2019 31,2019 profit and same
and loss control
Electric
Co., Ltd.
Jianshe Jianshe Plant 325 January December 153 Contract Affect Yes Under
Mechanical Stock 1,2019 31,2019 profit and same
and loss control
Electric
Co., Ltd.
Items which resulted in profit or loss achieving over 10% of the total profit for the Company
□ Applicable √ Not applicable
No such cases in the reporting period.
2.Guarantees
√Applicable □Not applicable
（1）Guarantees
Ten thousand yuan
External Guarantee (Exclude controlled subsidiaries)
Guarante
Relevant e
Date of
disclosure Complete for
happening Actual
Name of the date/No. of Amount of Guarantee Guarantee implemen associate
(Date of mount of
Company the Guarantee type term tation d
signing guarantee
guaranteed or not parties
agreement)
amount (Yes or
no)
Total amount of approved Total actually amount of
external guarantee in the report 0 external guarantee in the 0
period(A1) report period(A2)
Total amount of approved Total actually amount of
external guarantee at the end of 0 external guarantee at the end 0
the report period(A3) of the report period(A4)
23
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Guarantee of the company for its subsidiaries
Guarante
Related Date of Complete
Name of the Actually e for
announcem Amount of happening(date Guarantee Guarantee implemen
company guarantee related
ent date and guarantee of signing type term tation or
guaranteed amount party(yes
no. agreement) not
or no)
Vehicle air April Joint
1,998 October 10,2018 1,998 6 months Yes No
conditioner 26,2018 liabilities
Vehicle air April Joint
1,400 October 11,2018 1,400 6 months Yes No
conditioner 26,2018 liabilities
Vehicle air April Joint
conditioner 2,450 October 12,2018 2,450 liabilities 6 months Yes No
26,2018
Vehicle air April November Joint
2,500 2,500 6 months Yes No
conditioner 26,2018 15,2018 liabilities
Vehicle air April November Joint
2,849 2,849 6 months Yes No
conditioner 26,2018 22,2018 liabilities
Vehicle air April Joint
2,730 May 30,2018 2,730 12 months Yes No
conditioner 26,2018 liabilities
Vehicle air April Joint
conditioner 2,500 May 30,2018 2,500 liabilities 6 months Yes No
26,2018
Vehicle air April November Joint
1,000 1,000 6 months Yes No
conditioner 26,2018 30,2018 liabilities
Vehicle air April December Joint
2,450 2,450 6 months Yes No
conditioner 26,2018 11,2018 liabilities
Vehicle air April December Joint
1,000 1,000 6 months Yes No
conditioner 26,2018 11,2018 liabilities
Vehicle air April December Joint
1,750 1,750 6 months Yes No
conditioner 26,2018 24,2018 liabilities
Vehicle air April December Joint
3,500 3,500 6 months Yes No
conditioner 26,2018 27,2018 liabilities
Vehicle air April Joint
5,000 August 13,2018 5,000 12 months No No
conditioner 26,2018 liabilities
Vehicle air April September Joint
3,000 3,000 12 months No No
conditioner 26,2018 10,2018 liabilities
Vehicle air April September Joint
3,000 3,000 12 months No No
conditioner 26,2018 21,2018 liabilities
Vehicle air April September Joint
4,200 4,200 12 months No No
conditioner 26,2018 30,2018 liabilities
Vehicle air Joint
April 700 September 700 12 months No No
conditioner liabilities
24
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
26,2018 29,2018
Vehicle air April December Joint
5,000 5,000 12 months No No
conditioner 26,2018 6,2018 liabilities
Vehicle air April Joint
1,750 January 4,2019 1,750 6 months No No
conditioner 25,2019 liabilities
Vehicle air April Joint
1,771 January 10,2019 1,771 6 months No No
conditioner 25,2019 liabilities
Vehicle air April Joint
2,000 January 28,2019 2,000 6 months No No
conditioner 25,2019 liabilities
Vehicle air April Joint
2,549 January 31,2019 2,549 6 months No No
conditioner 25,2019 liabilities
Vehicle air April Joint
2,000 March 26,2019 2,000 6 months No No
conditioner 25,2019 liabilities
Vehicle air April Joint
1,400 April 14,2019 1,400 6 months No No
conditioner 25,2019 liabilities
Vehicle air April Joint
2,450 April 15,2019 2,450 6 months No No
conditioner 25,2019 liabilities
Vehicle air April Joint
2,500 April 25,2019 2,500 6 months No No
conditioner 25,2019 liabilities
Vehicle air April Joint
1,000 April 25,2019 1,000 6 months No No
conditioner 25,2019 liabilities
Vehicle air April Joint
2,500 May 14,2019 2,500 6 months No No
conditioner 25,2019 liabilities
Vehicle air April Joint
2,849 May 23,2019 2,849 6 months No No
conditioner 25,2019 liabilities
Vehicle air April Joint
2,730 May 30,2019 2,730 6 months No No
conditioner 25,2019 liabilities
Vehicle air April Joint
1,000 June 5,2019 1,000 6 months No No
conditioner 25,2019 liabilities
Vehicle air April Joint
2,450 June 12,2019 2,450 6 months No No
conditioner 25,2019 liabilities
Vehicle air April Joint
1,750 June 18,2019 1,750 6 months No No
conditioner 25,2019 liabilities
Vehicle air April Joint
3,500 June 24,2019 3,500 6 months No No
conditioner 25,2019 liabilities
Total amount of actual
Total amount of approving
occurred guarantee for
guarantee for subsidiaries in 140,200 34,199
subsidiaries in report period
report period（B1）
（B2）
25
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Total amount of actual
Total amount of approved
occurred guarantee for
guarantee for subsidiaries at the 140,200 55,099
subsidiaries at the end of
end of reporting period（B3）
reporting period（B4）
Guarantee of the subsidiaries for its subsidiaries
Guarante
Related Date of Complete
Name of the Actually e for
announcem Amount of happening(date Guarantee Guarantee implemen
company guarantee related
ent date and guarantee of signing type term tation or
guaranteed amount party(yes
no. agreement) not
or no)
Total amount of guarantee to
Total guarantee quota to the
the subsidiaries actually
subsidiaries approved in the 0 0
incurred in the reporting
reporting period (C1)
period (C2)
Total balance of actual
Total guarantee quota to the
guarantee to the subsidiaries at
subsidiaries approved at the end 0 0
the end of the reporting period
of the reporting period (C3)
(C4)
Total of Company’s guarantee（namely total of the large three aforementioned）
Total of guarantee in the Period Total of actual guarantee in
140,200 34,199
（A1+B1+C1） the Period（A2+B2+C2）
Total of actual guarantee at
Total of guarantee at Period-end
140,200 Period-end 55,099
（A3+B3+C3）
（A4+B4+C4）
The Company’s total guarantee(i.e.total of the first three main
214.88%
items)（A4+B4+C4）
Including：
Amount of guarantee for shareholders, actual controller and its
0
associated parties（D）
The debts guarantee amount provided for the
Guaranteed parties whose assets-liability ratio exceed 55,099
70% directly or indirectly（E）
Proportion of total amount of guarantee in net assets of the
42,278
company exceed 50%（F）
Explanations about joint and several liability for repayment in
Nil
respect of undue guarantee(if any)
Explanation about external guarantee violating established
Nil
procedure if any）
Description of the guarantee with complex method
26
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
(2) Illegal providing of external guarantees
□ Applicable √ Not applicable
No such cases in the reporting period.
3. Other significant contract
□ Applicable √ Not applicable
No such cases in the reporting period.
XV. Social responsibilities
1.Major environmental protection
Listed company and its subsidiary belongs to the key pollution enterprise listed by Department of Environmental
Protection
No
The company shall strictly abide by the national environmental protection laws and regulations, adhere to the
legal and compliant discharge of sewage and pay the sewage charge according to law. The company shall establish
environmental protection management organization and enterprise environmental management system, and
standardize on-site environmental management, with complete environmental protection files. The company was
rated as "Chongqing Ecological Civilization Demonstration Enterprise" and "Good Enterprise in Environmental
Credit in Chongqing" from 2015 to 2018.
1. Environmental Protection Facilities Investment Construction and Operation
(1)In 2007, the company invested 2.63 million yuan and built a sewage treatment station, which uses physical
biochemical process technology and its processing capacity is 33 cubic meters / hour. The treated sewage is
discharged to the municipal pipe network after reaching the first grade standard of GB8978-1996. The company
has carried out a standardized rectification of the discharge of waste water, with environmentally friendly graphic
signs, and installed with automatic online monitoring device.
(2)In 2008, the company invested 300,000 yuan in the new phosphate production line and built a set of acid mist
exhaust gas purification facilities, which uses acid-base neutralization process to neutralize the hydrochloric acid
mist, and the treated flue gas is discharged through the standardized sewage outlet discharge.
(3)In 2009, the company invested 200,000 yuan in the new spraying production line and built a set of sand gas
purification facilities, which uses water washing and filtration treatment, and the treated flue gas emissions is
discharged through the standardized sewage outlet discharge.
(4)In 2009, the company invested 500,000 yuan in the PTFE coating production line and built two sets of
purification facilities, which uses activated carbon adsorption treatment and the treated flue gas emissions is
discharged through the standardized sewage outlet discharge.
(5)In 2009, the company invested 500,000 yuan in the chemical tinning line production line and built two sets of
purification facilities, which uses acid-alkali neutralization process to treat the waste gas, and the treated flue gas
emissions is discharged through the standardized sewage outlet discharge.
(6)In 2012, the company invested 300,000 yuan in the expansion phosphating production line and built a set of
27
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
acid waste gas purification facilities, which uses neutralization process of hydrochloric acid mist neutralization
treatment, and the treated flue gas emissions is discharged through the standardized sewage outlet discharge.
(7)In 2016, according to the requirements of organic waste treatment Chongqing Environmental Protection
Bureau, the company invested 200,000 yuan in the Teflon coating production line of the existing purification
process, adding new purification process facilities to ensure organic waste gas treatment up to 90% of the
standard.
2. Enterprise Internal Environmental Management
The company passed the ISO14001 environmental management system, OHSAS18001 occupational health and
safety management system in 2009. Strictly in accordance with the system requirements to carry out various
activities, focusing on process control. In particular, after the implementation of the new environmental law, the
company carried out a series of special activities, and strive to environmental protection work in line with the
provisions of the new environmental law.
3. Energy conservation and emission reduction
The company shall issue energy conservation and emission reduction plan every year and implement
examination. The energy conservation index reduced by 3% per annum and the pollutant index reduced by 3% per
annum shall be issued. Each unit shall smoothly reach the target, and the energy consumption shall be reduced
steadily. Meanwhile, the pollutant shall be discharged in strict accordance with the national standards.
(1) The cooling tower of central air-conditioning direct-fired unit is upgraded and transformed, and it is
estimated that 2,000 tons of water will be saved every month. "Green Lighting" activities shall be carried out, with
about 3500 degrees of electricity saved per month. It is estimated that about 1500 tons will be saved per month
by changing the helium inspection equipment in long-flow water cooling to oil cooling and recycling.
(2) The daily maintenance and management of water-using equipment shall be strengthened, the leakage
shall be strictly inspected, and the faults shall be promptly removed when they are found; the centralized
production mode shall be carried out to reduce the gas cost of heating and heat preservation of equipment.
4. Cleaner Production, Pollution Control
In 2012, the company passed the clean production audit work of the Chongqing Municipal Environmental
Protection Bureau, and has been in accordance with the idea of sustainable development, the selection of low
energy consumption and pollution of small products, technology, equipment, raw materials, and always adhere to
the "low carbon, environmental protection, energy saving, recycling, green development concept.
(1) Pollution treatment facilities work efficiently, and pollutant discharge reaches the standards
comprehensively: Sewage shall be treated in strict accordance with regulations by strengthening supervision and
management, and the principle of non-discharge without reaching the standards shall be achieved, so that all
wastewater discharge shall meet the standards throughout the year to ensure no environmental pollution accident.
The company shall strictly abide by the "three-simultaneous system of environmental protection", EIA documents
and EIA approval for the construction of pollution control facilities. Meanwhile, the daily management, operation
and maintenance of the management facilities shall be strengthened, with records of dosing, operation and
maintenance made.
(2) Introduction of natural gas clean energy: Pollutant SO2 and dust discharged into the air shall be reduced
to zero, with energy consumption reduced. The original three steam boilers (two coal burning boilers and one
oil-fired boiler) shall be abolished, with natural gas clean energy used and two gas-fired atmospheric pressure hot
water circulating boilers provided. Original four melting holding furnaces use diesel oil and kerosene as fuel, and
the melting cost of aluminum ingots is high, thus the four melting holding furnaces are replaced by natural gas
melting holding furnaces. The total investment in the construction of the coal-to-gas project is RMB 13.41
28
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
million.
(3) Implementation of the volatile organic pollutant treatment project: New volatile organic pollutant
treatment facilities will be built, and the emission reduction of volatile organic compounds produced by painting
and spraying will be achieved. Since 2016, the company, its subsidiaries and joint venture have carried out
treatment of volatile organic pollutants in accordance with the requirements of district and county environmental
protection bureaus. In addition to the use of original water curtain and Venturi adsorption facilities, photocatalytic
oxidation equipment will be added. Subsidiary air conditioning company has added photocatalytic oxidation
equipment. The total investment in the reconstruction of volatile organic pollution facilities of the company is
RMB 12.41 million.
5. Comprehensive utilization of waste sorting treatment
The workshop is equipped with recoverable and non-recoverable general industrial solid waste collection
buckets and hazardous waste collection buckets, with a hazardous waste dump built separately. All hazardous
wastes of the company are entrusted to qualified units for safe transfer and disposal. During the transfer process, a
hazardous waste transfer form has been implemented, a hazardous waste management account has been
established, a temporary hazardous waste storage room in 30 cubic meters has been built, and "three prevention"
measures have been taken to prevent the loss of hazardous waste.
2.Overview of the annual targeted poverty alleviation
The company has no precise social responsibility for poverty alleviation in the period and bas no follow-up plan
either.
XVI. Other material events
√ Applicable □Not applicable
Cancel the Technology Center of the branch Chongqing Jianshe Motorcycle Co., Ltd.
Chongqing Jianshe Motorcycle Co., Ltd. Branch Technology Center's business scope is motorcycle research
and development, which is no longer the company's main business development direction. In order to further
improve the company's business structure and reduce the level of operation, the company convened the 13th
meeting of the eighth Board of Directors on January 14, 2019, and deliberated and passed the Proposal on
Cancellation of Branch Technology Center (for details, see the Announcement on Cancellation of Branch
Technology Center disclosed on January 16, 2019). The cancellation will not change the scope of the company's
consolidated financial statements, will not affect the company's business development and sustained profitability,
and will not harm the interests of the company and all shareholders.
On March 29, 2019, Chongqing Municipal Market Supervision Administration issued the Notice of
Cancellation of Foreign-invested Enterprises (ZY) YZXZ Zi [2019] No. 000137, confirming that the Technology
Center of the company's branch had been canceled.
XVII. Material issues of the subsidiaries
□ Applicable √ Not applicable
29
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
VI. Change of share capital and shareholding of Principal Shareholders
Ⅰ.Changes in share capital
1. Changes in share capital
In Shares
Before the change Increase/decrease（+，-） After the Change
Amount Proportion Capitalizat
ion of
Share Bonus
common Other Subtotal Quantity Proportion
allotment shares
reserve
fund
89,375,00 89,375,00
I. Unlisted shares 74.87% 0 0 0 0 0 74.87%
0 0
89,375,00 89,375,00
1. Founder's stock 74.87% 0 0 0 0 0 74.87%
0 0
Including: State-owned
84,906,25 84,906,25
shares 71.13% 0 0 0 0 0 71.13%
0 0
Shares held by domestic
1,750,000 1.46% 0 0 0 0 0 1,750,000 1.46%
legal persons
Share held by foreign
0 0.00% 0 0 0 0 0 0 0.00%
investors
Other 2,718,750 2.28% 0 0 0 0 0 2,718,750 2.28%
2. Raising legal person
0 0.00% 0 0 0 0 0 0 0.00%
shares
3. Internal staff shares 0 0.00% 0 0 0 0 0 0 0.00%
4. Preferred stock or other 0 0.00% 0 0 0 0 0 0 0.00%
30,000,00 30,000,00
II Listed shares 25.13% 0 0 0 0 0 25.13%
0 0
1. Common shares in
0 0.00% 0 0 0 0 0 0 0.00%
RMB
2. Foreign shares in 30,000,00 30,000,00
25.13% 0 0 0 0 0 25.13%
domestic market 0 0
3. Foreign shares in
0 0.00% 0 0 0 0 0 0 0.00%
overseas market
4. Others 0 0.00% 0 0 0 0 0 0 0.00%
30
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
119,375,0 119,375,0
III. Total of capital shares 100.00% 0 0 0 0 0 100.00%
00 00
Reasons for share changed
□Applicable √Not applicable
Approval of Change of Shares
□Applicable √Not applicable
Ownership transfer of share changes
□Applicable √Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to
common shareholders of Company in latest year and period
□Applicable √Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from security
regulators
□Applicable √Not applicable
Progress on any share repurchase:
□ Applicable √ Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
□ Applicable √ Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to
common shareholders of Company in latest year and period
□ Applicable √ Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from security
regulators
□ Applicable √Not applicable
2. Change of shares with limited sales condition
□ Applicable √ Not applicable
II.Self-defined Chapter
When the company was founded in 1995, North China Industrial Shenzhen Co., Ltd., one of the founders,
held 17,875,000 shares of the company, accounting for 3.74% of the company's total share capital. According to
the Civil Order of the Shenzhen Intermediate People’s Court of Guangdong Province- [2006] Shenzhong Famin
Two Bankruptcy Zi No. 21-4) on March 6th, 2007, it’s ruled that the proprietary rights of the 3.74% stake
(17,875,000 legal person shares) of the company held by North China Industrial Shenzhen Co., Ltd. belongs to the
buyers Gu Zuocheng, Yangpu Xinyufeng Investment Co., Ltd. and Feng Yonghui. Thereinto, Gu Zuocheng held
8,875,000 shares; Yangpu Xinyufeng Investment Co., Ltd. held 7,000,000 shares; Feng Yonghui held 20,000
million shares.
On September 12, 2013, the company implemented a 4:1 share-shrunk. After the share-shrunk, Gu
Zuocheng held 2,218,750 shares; Anhui Hengsheng Economic Development Group Co., Ltd. (The shares
transferred by Yangpu Xinyufeng Investment Co., Ltd. on March 21, 2012) held 1,750,000 shares; Feng Yonghui
held 500,000 shares.
Therefore, in the above “Changes in Shares” table, the number of shares that’s filled in the “others” for the sponsors’
31
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
shares is the total shares held by the natural persons Gu Zuocheng and Feng Yonghui, namely: 2,718,750 shares.
III.Issuing and listing
□ Applicable √Not applicable
IV. Shareholders and shareholding
In Shares
Total number of preferred
Total number of common shareholders that had restored
shareholders at the end of the 7,950 the 0
reporting period voting right at the end of the
reporting period (if any) (note 8)
Particulars about shares held above 5% by shareholders or top ten shareholders
Amount Number of share pledged/frozen
Number Amount
Changes of
of shares of
Nature of Proportion of in un-restri
Shareholders held at restricte
shareholder shares held（%） reportin cted State of share Amount
period d shares
g period shares
-end held
held
China Military
State-owned legal 84,906,2 84,906,2
Equipment 71.13% 0 0
person 50 50
Group Co., Ltd.
Domestic natural 2,261,00 2,218,75
Gu Zuocheng 1.89% 0 42,250
person 0 0
Domestic
Hengsheng Sun 1,750,00 1,750,00
non-state-owned 1.47% 0 0 Freeze 1,750,000
Group Co., Ltd. 0 0
legal person
Domestic natural 1,083,25 1,083,25
Liu Dan 0.91% 51,050 0
person 1 1
Domestic natural
Xu Yuanhui 0.56% 666,789 0 0 666,789
person
Overseas natural
Yu Lingfeng 0.51% 612,921 0 0 612,921
person
Domestic natural
Chen Xinqiang 0.51% 612,400 0 0 612,400
person
Domestic natural
Zhang Meilan 0.43% 513,560 0 0 513,560
person
Domestic natural
Feng Yonghui 0.42% 500,000 0 500,000 0
person
Domestic natural
Li Jianping person 0.36% 431,500 -24,069 0 431,500
Explanation on associated There isn’t any associated relationship between the sponsoring shareholder and the other
32
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
relationship among the aforesaid shareholders among the top-10 list. None of them are regarded as ‘Acting in concert’ in
shareholders accordance with ‘The rules of information disclosure on change of shareholding.’ Foreign
shareholders are unknown for their condition of ‘Associated relationship’ and ‘Acting in
concert’.
Top 10 holders of unconditional shares
Category of shares
Name of the shareholder Amount of unconditional shares held at end of period Category of
Amount
shares
Foreign shares
placed in
Liu Dan 1,083,251 1,083,251
domestic
exchange
Foreign shares
placed in
Xu Yuanhui 666,789 666,789
domestic
exchange
Foreign shares
placed in
Yu Lingfeng 612,921 612,921
domestic
exchange
Foreign shares
placed in
Chen Xinqiang 612,400 612,400
domestic
exchange
Foreign shares
placed in
Zhang Meilan 513,560 513,560
domestic
exchange
Foreign shares
placed in
Li Jianping 431,500 431,500
domestic
exchange
Foreign shares
CORE PACIFIC-YAMAICHI
placed in
INTERNATIONAL (H.K.) 424,550 424,550
domestic
LIMITED
exchange
Foreign shares
placed in
Chen Houping 423,561 423,561
domestic
exchange
Foreign shares
Liu Guosheng 345,575 345,575
placed in
33
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
domestic
exchange
Foreign shares
placed in
Lv Gang 337,300 337,300
domestic
exchange
There is no affiliated relationship between the top ten non-restricted tradable shareholders and
the controlling shareholder China Military Equipment Group Co., Ltd. nor do they belong to
Action-in-concert among top 10 the consistent actors stipulated in the Administrative Measures for the Acquisition of Listed
non-restricted current share holders, Companies; it is unknown to the company whether there is an affiliated relationship between
top 10 non-restricted current share the top ten non-restricted tradable shareholders as well as between the top ten non-restricted
holders and top 10 shareholders tradable shareholders and the other top ten shareholders, or whether they are included in the
consistent actors stipulated in the Administrative Measures for the Acquisition of Listed
Companies.
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a
buy-back agreement dealing in reporting period.
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company
have no buy –back agreement dealing in reporting period.
V. Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the reporting period
□ Applicable √ Not Applicable
There was no any change of the controlling shareholder of the Company in the reporting period.
Change of the actual controller in the reporting period
□ Applicable √ Not applicable
There was no any change of the actual controller of the Company in the reporting period.
34
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
VII. Situation of the Preferred Shares
□Applicable √Not applicable
The Company had no preferred shares in the reporting period
35
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
VIII. Information about Directors, Supervisors and Senior Executives
I. Change in shares held by directors, supervisors and senior executives
□Applicable √Not applicable
There was no change in shareholding of directors, supervisors and senior management staffs, for the specific
information please refer to the 2018 Annual Report.
II. Changes in directors, supervisors and senior management staffs
√ Applicable □ Not applicable
Name Title Type Date Reason
Director,
The personnel is elected as the director by the
Member of the
Dong Qihong Elected April 11,2019 shareholders' general meeting and the member of the
auditors
Audit Committee by the board of directors.
committee
Director,
The personnel is elected as the director by the
Member of the
Zhang Di Elected April 11,2019 shareholders' general meeting and the member of the
strategic
stratagem Committee by the board of directors.
committee
Yan Xuechuan General Manager Appointment March 25,2019 Board appointment
Deputy General
Yu Wenbiao Appointment March 25,2019 Board appointment
Manager
Deputy General
Fan Aijun Appointment March 25,2019 Board appointment
Manager
Deputy General
Tan Mingxian Appointment March 25,2019 Board appointment
Manager, CFO
Employee
Yu Jiang Elected March 20,2019 Election of Staff Delegation Leader Meeting
director
Director, General
Manger , CFO, In case of any change of work, the personnel shall no
Member of the longer serve as a director, general manager, finance
strategic employee in charge, member of the Strategic
Fan Aijun Appointed March 25,2019
Committee, Committee or the Nomination Committee. The
Member of the personnel is appointed as the deputy general manager of
nominating the company by the board of directors.
committee
In case of any change of work, the personnel shall no
Director,
longer serve as a director and the member of the Audit
Member of the
Tan Mingxian Appointed March 25,2019 Committee. The personnel is appointed as deputy
auditors
general manager and finance employee in charge of the
committee
company by the board of directors.
36
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
In case of any change of work, the personnel shall no
Zhang Deputy General longer serve as Deputy General Manager. The
Appointed March 25,2019
Xiangdong Manager personnel is appointed as the deputy director of
Procurement Department by the company.
In case of any change of work, the personnel shall no
longer serve as Deputy General Manager. The
Deputy General
Deng Xianming Appointed March 25,2019 personnel is appointed by the company as the process
Manager
technology director professional in non-administrative
position.
In case of any change of work, the personnel shall no
longer serve as Deputy General Manager. The
Deputy General
Cao Bing Appointed March 25,2019 personnel is appointed as the deputy director of the
Manager
Sales Department by the Company (presiding over the
work).
In case of any change of work, the personnel shall no
Deputy General longer serve as Deputy General Manager. The
Hu Jiawang Appointed March 25,2019
Manager personnel is appointed as the director of the New
Energy Division by the company.
The Staff Delegation Leader Meeting has resolved that
Deng Gang would no longer serve as the employee
Employee
Deng Gang Appointed March 20,2019 director. The personnel assumes the post of deputy
director
director of the company's research and development
center after leaving the post.
Supervisor,
The personnel is elected as the supervisor by the
Chairman of the
Zhang Lungang Elected April 11,2019 shareholders' general meeting and the chairman of the
board of
board of supervisors by the board of supervisors.
supervisors
Jiang Chaojie Supervisor Elected April 11,2019 Shareholders' meeting election
Qiao Guoan Supervisor Elected April 11,2019 Shareholders' meeting election
Employee
Li Yongjiang Elected March 20,2019 Election of Staff Delegation Leader Meeting
supervisor
Employee
Rao Song Elected March 20,2019 Election of Staff Delegation Leader Meeting
supervisor
The Staff Delegation Leader Meeting resolved that Xu
Dongxia would no longer serve as the employee
Employee
Xu Dongxia Appointed March 20,2019 supervisor. The personnel assumes the post of the
supervisor
deputy director of the Audit Risk Department of the
company after leaving the post.
The Staff Delegation Leader Meeting resolved that Wu
Employee
Wu Yangmin Appointed March 20,2019 Yangmin would no longer serve as the employee
supervisor
supervisor. The personnel will assume the post of the
37
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
director of the company office and the Party Committee
office after leaving the post.
In case of any change of work, the personnel shall no
Supervisor,
longer serve as supervisor and Chairman of the Board
Chairman of the
Lu Cuiwen Appointed April 11,2019 of Supervisors，The personnel is appointed by the
board of
company as the process technology director
supervisors
professional in non-administrative position.
In case of any change of work, the personnel shall no
longer serve as supervisor，The personnel is appointed
as deputy secretary of the Discipline Inspection
Tao Xuqian Supervisor Appointed April 11,2019
Commission, director of the Discipline Inspection
Commission Office, the Supervision Department and
the Inspection Office by the company.
In case of any change of work, the personnel shall no
longer serve as supervisor，The personnel is appointed
Wu Haiwen Supervisor Appointed April 11,2019 as the director of the Operation Planning Department
(Board Secretary's Office) of the company by the
company.
38
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
IX. Corporate Bond
Whether the company has corporate bonds that have been publicly issued and listed on the stock exchange, and
not yet due or due but not folly cashed on the approval date of annual report
No
39
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
X. Financial Report
I. Audit report
Has this semi-annual report been audited?
□ Yes √ No
The semi-annual financial report has not been audited.
II. Financial statements
Currency unit for the statements in the notes to these financial statements: RMB
1. Consolidated balance sheet
Prepared by: Chongqing Jianshe Vehicle System Co., Ltd.
June 30, 2019
In RMB
Items June 30,2019 December 31,2018
Current asset：
Monetary fund 175,083,490.58 351,903,987.18
Settlement provision
Outgoing call loan
Transactional financial assets
Financial assets measured at fair
value with variations accounted into
current income account
Derivative financial assets
Notes receivable 34,449,387.65 28,022,405.38
Account receivable 241,375,131.90 274,941,895.41
Financing of receivables
Prepayments 13,927,030.78 15,797,660.14
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Other account receivable 6,010,600.52 2,414,406.24
40
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Including：Interest receivable
Dividend receivable
Repurchasing of financial assets
Inventories 168,166,967.62 177,566,823.26
Contract assets
Assets held for sales
Non-current asset due within 1 year
Other current asset 4,104,819.54 4,292,742.61
Total of current assets 643,117,428.59 854,939,920.22
Non-current assets：
Loans and payment on other’s behalf
disbursed
Debt investment
Available for sale of financial assets
Other investment on bonds
Expired investment in possess
Long-term receivable
Long term share equity investment 246,966,038.98 187,208,081.45
Other equity instruments investment
Other non-current financial assets
Property investment 34,413,632.16 45,698,993.28
Fixed assets 333,238,183.59 341,863,883.57
Construction in progress 212,893.56
Production physical assets
Oil & gas assets
Use right assets
Intangible assets 23,152,317.07 23,481,249.43
Development expenses
Goodwill
Long-germ expenses to be amortized 2,573,545.84 1,912,833.34
Deferred income tax asset 4,850,090.39 4,850,090.39
Other non-current asset 6,478,509.34 1,815,521.86
Total of non-current assets 651,885,210.93 606,830,653.32
Total of assets 1,295,002,639.52 1,461,770,573.54
41
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Current liabilities
Short-term loans 252,000,000.00 262,000,000.00
Loan from Central Bank
Borrowing funds
Transactional financial liabilities
Financial liabilities measured at fair
value with variations accounted into
current income account
Derivative financial liabilities
Notes payable 512,840,000.00 627,563,000.00
Account payable 248,454,006.37 237,795,755.60
Advance receipts 1,420,366.52 1,982,012.20
Selling of repurchased financial assets
Deposit taking and interbank
deposit
Entrusted trading of securities
Entrusted selling of securities
Employees’ wage payable 5,378,799.21 3,155,693.31
Tax payable 14,249,356.34 19,484,228.95
Other account payable 4,242,778.05 14,988,432.94
Including：Interest payable
Dividend payable
Fees and commissions payable
Reinsurance fee payable
Contract Liabilities
Liabilities held for sales
Non-current liability due within 1
1,500,000.00
year
Other current liability
Total of current liability 1,038,585,306.49 1,168,469,123.00
Non-current liabilities：
Reserve fund for insurance
contracts
Long-term loan
Bond payable
42
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Including：preferred stock
Sustainable debt
Lease liability
Long-term payable
Long-term remuneration payable to
staff
Expected liabilities
Deferred income
Deferred income tax liability
Other non-current liabilities
Total non-current liabilities
Total of liability 1,038,585,306.49 1,168,469,123.00
Owners’ equity
Share capital 119,375,000.00 119,375,000.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 958,565,294.29 958,565,294.29
Less：Shares in stock
Other comprehensive income 9,800.00 9,800.00
Special reserve
Surplus reserves 125,686,000.00 125,686,000.00
Common risk provision
Retained profit -947,218,761.26 -910,334,643.75
Total of owner’s equity belong to the
256,417,333.03 293,301,450.54
parent company
Minority shareholders’ equity
Total of owners’ equity 256,417,333.03 293,301,450.54
Total of liabilities and owners’ equity 1,295,002,639.52 1,461,770,573.54
Legal Representative: Lv Hongxian
Person in charge of accounting：Tan Mingxian
Accounting Dept Leader: Niu Yanli
43
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
2. Balance sheet of Parent Company
In RMB
Items June 30,2019 December 31,2018
Current asset：
Monetary fund 17,345,556.49 66,377,117.54
Transactional financial assets
Financial assets measured at fair
value with variations accounted into
current income account
Derivative financial assets
Notes receivable 3,600,000.00 12,106,000.00
Account receivable 1,309,317.31 1,700,752.51
Financing of receivables
Prepayments 7,086,534.92 7,910,371.97
Other account receivable 2,615,311.15 567,726.24
Including：Interest receivable
Dividend receivable
Inventories 11,085,461.23 14,582,880.35
Contract assets
Assets held for sales
Non-current asset due within 1
year
Other current asset 4,292,742.61
Total of current assets 43,042,181.10 107,537,591.22
Non-current assets：
Debt investment
Available for sale of financial assets
Other investment on bonds
Expired investment in possess
Long-term receivable
Long term share equity investment 406,966,038.98 347,208,081.45
Other equity instruments investment
Other non-current financial assets
Property investment 34,413,632.16 45,698,993.28
Fixed assets 125,476,621.15 121,333,665.76
44
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Construction in progress 212,893.56
Production physical assets
Oil & gas assets
Use right assets
Intangible assets 14,798,606.95 15,007,629.61
Development expenses
Goodwill
Long-germ expenses to be amortized 2,241,777.75 1,418,480.05
Deferred income tax asset
Other non-current asset
Total of non-current assets 584,109,570.55 530,666,850.15
Total of assets 627,151,751.65 638,204,441.37
Current liabilities
Short-term loans
Transactional financial liabilities
Financial liabilities measured at fair
value with variations accounted into
current income account
Derivative financial liabilities
Notes payable
Account payable 194,613,938.33 200,972,608.59
Advance receipts 180,083.38 180,083.38
Contract Liabilities
Employees’ wage payable 2,403,187.72 185,652.20
Tax payable 13,124,656.49 15,239,129.76
Other account payable 252,756,920.83 223,902,707.22
Including：Interest payable
Dividend payable
Liabilities held for sales
Non-current liability due within 1
year
Other current liability
Total of current liability 463,078,786.75 440,480,181.15
Non-current liabilities：
Long-term loan
45
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Bond payable
Including：preferred stock
Sustainable debt
Lease liability
Long-term payable
Long-term remuneration payable to
staff
Expected liabilities
Deferred income
Deferred income tax liability
Other non-current liabilities
Total non-current liabilities
Total of liability 463,078,786.75 440,480,181.15
Owners’ equity
Share capital 119,375,000.00 119,375,000.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 958,565,294.29 958,565,294.29
Less：Shares in stock
Other comprehensive income 9,800.00 9,800.00
Special reserve
Surplus reserves 125,686,000.00 125,686,000.00
Retained profit -1,039,563,129.39 -1,005,911,834.07
Total of owners’ equity 164,072,964.90 197,724,260.22
Total of liabilities and owners’ equity 627,151,751.65 638,204,441.37
3.Consolidated Income Statement
Items Amount in this period Amount in last period
I. Income from the key business 418,614,177.29 511,696,731.41
Incl：Business income 418,614,177.29 511,696,731.41
Interest income
Insurance fee earned
Fee and commission received
46
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
II. Total business cost 443,141,827.64 505,398,898.77
Incl：Business cost 374,155,299.95 424,270,937.01
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Insurance policy dividend paid
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 4,078,638.06 4,097,639.38
Sales expense 9,005,395.08 12,662,136.26
Administrative expense 38,337,008.17 38,290,461.08
R & D expense 6,342,684.21 5,492,327.34
Financial expenses 11,222,802.17 20,585,397.71
Including：Interest expense
Interest income
Add：Other income 401,100.00
Investment gain（“-”for loss） -10,791,697.77 60,830,865.45
Including: investment gains from
-10,791,697.77 60,830,865.45
affiliates
Financial assets measured at amortized
cost cease to be recognized as income
Gains from currency exchange
Net exposure hedging income
Changing income of fair value
Credit impairment loss
Impairment loss of assets -280,777.30 -414,009.12
Assets disposal income -1,712,382.50 -52,595.40
III. Operational profit（“-”for loss） -36,911,407.92 66,662,093.57
Add ：Non-operational income 232,624.17 357,960.24
Less: Non-operating expense 24,777.08
IV. Total profit(“-”for loss) -36,678,783.75 66,995,276.73
Less：Income tax expenses 205,333.76 561,775.84
V. Net profit -36,884,117.51 66,433,500.89
(I) Classification by business
47
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
continuity
1.Net continuing operating profit
2.Termination of operating net profit
(II) Classification by ownership
1.Net profit attributable to the owners of
-36,884,117.51 66,076,528.49
parent company
2.Minority shareholders’ equity 356,972.40
VI. Net after-tax of other comprehensive
income
Net of profit of other comprehensive inco
me attributable to owners of the parent co
mpany.
（I）Other comprehensive income items
that will not be reclassified into
gains/losses in the subsequent accounting
period
1.Re-measurement of defined benefit pla
ns of changes in net debt or net assets
2.Other comprehensive income under the
equity method investee can not be reclass
ified into profit or loss.
3. Changes in the fair value of
investments in other equity instruments
4. Changes in the fair value of the
company’s credit risks
5.Other
（II）
Other comprehensive income that will be
reclassified into profit or loss.
1.Other comprehensive income under the
equity method investee can be reclassifie
d into profit or loss.
2. Changes in the fair value of
investments in other debt obligations
3.Gains and losses from changes in fair v
alue available for sale financial assets
48
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
4. Other comprehensive income arising
from the reclassification of financial
assets
5.Held-to-maturity investments reclassifi
ed to gains and losses of available for sal
e financial assets
6. Allowance for credit impairments in
investments in other debt obligations
7. Reserve for cash flow hedges
8.
Translation differences in currency financ
ial statements
9.Other
Net of profit of other comprehensive inco
me attributable to Minority shareholders’
equity
VII. Total comprehensive income -36,884,117.51 66,433,500.89
Total comprehensive income attributable
-36,884,117.51 66,076,528.49
to the owner of the parent company
Total comprehensive income
356,972.40
attributable minority shareholders
VIII. Earnings per share
（I）Basic earnings per share -0.3090 0.5535
(II)Diluted earnings per share -0.3090 0.5535
The current business combination under common control, the net profits of the combined party before achieved ne
t profit of RMB 0.00, last period the combined party realized RMB0.00.
Legal Representative: Lv Hongxian
Person in charge of accounting：Tan Mingxian
Accounting Dept Leader: Niu Yanli
4. Income statement of the Parent Company
In RMB
Items Amount in this period Amount in last period
I. Income from the key business 313,202,860.70 397,145,699.33
Incl：Business cost 305,109,623.38 362,672,276.66
49
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Business tax and surcharge 868,531.18 1,515,717.24
Sales expense 701,341.96 324,477.46
Administrative expense 21,259,635.13 20,533,457.45
R & D expense 660,149.91 9,412.13
Financial expenses 5,773,466.75 10,591,372.14
Including：Interest expenses
Interest income
Add：Other income
Investment gain（“-”for loss） -10,791,697.77 54,775,798.80
Including: investment gains from
-10,791,697.77 54,775,798.80
affiliates
Financial assets measured at
amortized cost cease to be recognized
as income
Net exposure hedging income
Changing income of fair value
Credit impairment loss
Impairment loss of assets
Assets disposal income -1,712,382.50
II. Operational profit（“-”for loss） -33,673,967.88 56,274,785.05
Add ：Non-operational income 22,672.56 2,096.06
Less：Non -operational expenses 3,797.36
III. Total profit(“-”for loss) -33,651,295.32 56,273,083.75
Less：Income tax expenses
IV. Net profit -33,651,295.32 56,273,083.75
1.Net continuing operating profit
2.Termination of operating net profit
V. Net after-tax of other comprehensive
income
（I）Other comprehensive income items
that will not be reclassified into
gains/losses in the subsequent
accounting period
1.Re-measurement of defined benefit pl
ans of changes in net debt or net assets
2.Other comprehensive income under th
50
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
e equity method investee can not be recl
assified into profit or loss.
3. Changes in the fair value of
investments in other equity instruments
4. Changes in the fair value of the
company’s credit risks
5.Other
（II）
Other comprehensive income that will b
e reclassified into profit or loss.
1.Other comprehensive income under th
e equity method investee can be reclassi
fied into profit or loss.
2. Changes in the fair value of
investments in other debt obligations
3.
Gains and losses from changes in fair v
alue available for sale financial assets
4. Other comprehensive income
arising from the reclassification of
financial assets
5.Held-to-maturity investments reclassif
ied to gains and losses of available for s
ale financial assets
6. Allowance for credit impairments
in investments in other debt obligations
7. Reserve for cash flow hedges
8.
Translation differences in currency fina
ncial statements
9.Other
VI. Total comprehensive income -33,651,295.32 56,273,083.75
VII. Earnings per share
（I）Basic earnings per share -0.2819 0.4714
(II)Diluted earnings per share -0.2819 0.4714
5. Consolidated Cash flow statement
In RMB
51
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Items Amount in this period Amount in last period
I.Cash flows from operating activities
Cash received from sales of goods or
244,731,519.75 183,435,859.06
rending of services
Net increase of customer deposits
and capital kept for brother company
Net increase of loans from central bank
Net increase of inter-bank loans from
other financial bodies
Cash received against original insurance
contract
Net cash received from reinsurance
business
Net increase of client deposit and
investment
Cash received from interest,
commission charge and commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Net cash received by agent in
securities trading
Tax returned 9,272,854.78 3,865,269.30
Other cash received from business
2,694,008.36 14,049,354.57
operation
Sub-total of cash inflow 256,698,382.89 201,350,482.93
Cash paid for purchasing of
76,167,238.32 77,479,182.57
merchandise and services
Net increase of client trade and advance
Net increase of savings in central bank
and brother company
Cash paid for original contract claim
Net increase in financial assets held
for trading purposes
Net increase for Outgoing call loan
Cash paid for interest, processing fee
and commission
Cash paid for policy dividend
52
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Cash paid to staffs or paid for staffs 45,547,443.61 38,274,323.44
Taxes paid 7,087,627.07 14,899,387.30
Other cash paid for business activities 8,745,545.36 42,211,559.37
Sub-total of cash outflow from business
137,547,854.36 172,864,452.68
activities
Net cash generated from /used in
119,150,528.53 28,486,030.25
operating activities
II. Cash flow generated by investing
Cash received from investment
30,193,650.00 8,160,000.00
retrieving
Cash received as investment gains 2,000,000.00 56,540,000.00
Net cash retrieved from disposal of
fixed assets, intangible assets, and other 21,742.92
long-term assets
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash received
Sub-total of cash inflow due to
32,215,392.92 64,700,000.00
investment activities
Cash paid for construction of fixed
assets, intangible assets and other 3,573,143.11 2,164,376.72
long-term assets
Cash paid as investment 36,672,895.58 21,300,000.00
Net increase of loan against pledge
Net cash received from subsidiaries and
other operational units
Other cash paid for investment
activities
Sub-total of cash outflow due to
40,246,038.69 23,464,376.72
investment activities
Net cash flow generated by investment -8,030,645.77 41,235,623.28
III.Cash flow generated by financing
Cash received as investment
Including: Cash received as investment
from minor shareholders
Cash received as loans 110,000,000.00 20,000,000.00
Cash received from bond placing
53
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Other financing –related cash received 141,753,830.08 399,577,250.28
Sub-total of cash inflow from financing
251,753,830.08 419,577,250.28
activities
Cash to repay debts 121,530,208.33 136,123,111.10
Cash paid as dividend, profit, or
13,548,041.75 20,924,052.91
interests
Including: Dividend and profit paid by
subsidiaries to minor shareholders
Other cash paid for financing activities 279,871,194.16 297,487,262.11
Sub-total of cash outflow due to
414,949,444.24 454,534,426.12
financing activities
Net cash flow generated by financing -163,195,614.16 -34,957,175.84
IV. Influence of exchange rate
alternation on cash and cash equivalents
V.Net increase of cash and cash
-52,075,731.40 34,764,477.69
equivalents
Add: balance of cash and cash
72,542,523.19 126,225,466.46
equivalents at the beginning of term
VI ..Balance of cash and cash
20,466,791.79 160,989,944.15
equivalents at the end of term
6. Cash flow statement of the Parent Company
In RMB
Items Amount in this period Amount in last period
I.Cash flows from operating activities
Cash received from sales of goods or
115,565,043.01 60,926,056.16
rending of services
Tax returned
Other cash received from business
196,811.23 20,455.50
operation
Sub-total of cash inflow 115,761,854.24 60,946,511.66
Cash paid for purchasing of
27,745,984.32 94,856,965.27
merchandise and services
Cash paid to staffs or paid for staffs 23,631,994.07 21,685,566.62
Taxes paid 633,031.98 4,378,220.07
Other cash paid for business activities 1,090,431.80 2,035,778.28
Sub-total of cash outflow from business 53,101,442.17 122,956,530.24
54
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
activities
Net cash generated from /used in
62,660,412.07 -62,010,018.58
operating activities
II. Cash flow generated by investing
Cash received from investment
30,193,650.00 8,160,000.00
retrieving
Cash received as investment gains 2,000,000.00 56,540,000.00
Net cash retrieved from disposal of
fixed assets, intangible assets, and other 21,742.92
long-term assets
Net cash received from disposal of
subsidiaries or other operational units
Other investment-related cash received
Sub-total of cash inflow due to
32,215,392.92 64,700,000.00
investment activities
Cash paid for construction of fixed
assets, intangible assets and other 3,567,182.57 602,707.13
long-term assets
Cash paid as investment 36,672,895.58 21,300,000.00
Net cash received from subsidiaries and
other operational units
Other cash paid for investment
activities
Sub-total of cash outflow due to
40,240,078.15 21,902,707.13
investment activities
Net cash flow generated by investment -8,024,685.23 42,797,292.87
III. Cash flow generated by financing
Cash received as investment
Cash received as loans
Cash received from bond placing
Other financing –related ash received 322,910,000.00 266,746,000.00
Sub-total of cash inflow from
322,910,000.00 266,746,000.00
financing activities
Cash to repay debts
Cash paid as dividend, profit, or
7,475,284.26 10,829,540.25
interests
Other cash paid for financing activities 419,102,003.63 234,470,060.33
55
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Sub-total of cash outflow due to
426,577,287.89 245,299,600.58
financing activities
Net cash flow generated by financing -103,667,287.89 21,446,399.42
IV. Influence of exchange rate
alternation on cash and cash equivalents
V.Net increase of cash and cash
-49,031,561.05 2,233,673.71
equivalents
Add: balance of cash and cash
66,377,117.54 93,728,199.64
equivalents at the beginning of term
VI ..Balance of cash and cash
17,345,556.49 95,961,873.35
equivalents at the end of term
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
Amount in this period
Owner’s equity Attributable to the Parent Company
Other Equity
Other Total
instrument Minor
Less: Compr Surplu Comm of
Items share Capital Specia Retain shareh
Shares ehensi s on risk Subtot owners
Capit prefe Susta reserve lized ed Other olders’
in ve reserve provisi al ’
a rred inabl Other s reserve profi equity
stock Incom s on equity
stock e
e
debt
119,3 958,57 125,68 -910,3 293,30 293,30
I.Balance at the
75,00 5,094. 6,000. 34,643 1,450. 1,450.
end of last year
0.00 29 00 .75 54 54
Add: Change of
accounting
policy
Correcting of
previous errors
Merger of
entities under
common control
Other
II.Balance at the 119,3 958,57 125,68 -910,3 293,30 293,30
beginning of 75,00 5,094. 6,000. 34,643 1,450. 1,450.
current year 0.00 29 00 .75 54 54
56
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
-36,88 -36,88 -36,88
III.Changed in
4,117. 4,117. 4,117.
the current year
51 51 51
（1）Total -36,88 -36,88 -36,88
comprehensive 4,117. 4,117. 4,117.
income 51 51 51
（II）Investment
or decreasing of
capital by
owners
1 ． Ordinary Sh
ares invested by
shareholders
2．Holders of o
ther equity instr
uments invested
capital
3．Amount of
shares paid and
accounted as
owners’ equity
4．Other
（III）Profit
allotment
1.Providing of
surplus reserves
2.Providing of
common risk
provisions
3．Allotment to
the owners (or
shareholders)
4．Other
(IV) Internal
transferring of
owners’ equity
1. Capitalizing
of capital
reserves (or to
capital shares)
57
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
2. Capitalizing
of surplus
reserves (or to
capital shares)
3．Making up
losses by
surplus
reserves.
4.Change
amount of
defined benefit
plans that carry
forward
Retained
earnings
5．Other
comprehensive
income
carry-over
retained
earnings
6．Other
(V). Special
reserves
1. Provided this
year
2．Used this
term
（VI）Other
IV. Balance at 119,3 958,57 125,68 -947,2 256,41 256,41
the end of this 75,00 5,094. 6,000. 18,761 7,333. 7,333.
term 0.00 29 00 .26 03 03
Amount in last year
In RMB
Amount in last year
Owner’s equity Attributable to the Parent Company
Other Equity Minor
Less: Other Surplu Comm Total of
Items share instrument Capital Specia Retain shareho
Shares Compr s on risk Subtot owners’
Capit reserve lized ed Other lders’
prefe in ehensi reserve provisi al equity
a Susta Other s reserve profi equity
rred stock ve s on
inabl
58
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
stock e Incom
debt e
119,3 958,57 125,68 -920,8 282,75
I.Balance at the 1,665,4 284,423
75,00 5,094. 6,000. 77,890 8,203.
end of last year 14.53 ,618.02
0.00 29 00 .80 49
Add: Change of
accounting
policy
Correcting of
previous errors
Merger of
entities under
common
control
Other
II.Balance at 119,3 958,57 125,68 -920,8 282,75
1,665,4 284,423
the beginning 75,00 5,094. 6,000. 77,890 8,203.
14.53 ,618.02
of current year 0.00 29 00 .80 49
10,543 10,543
III.Changed in -1,665, 8,877,8
,247.0 ,247.0
the current year 414.53 32.52
5 5
（1）Total 10,543 10,543
356,972 10,900,
comprehensive ,247.0 ,247.0
.40 219.45
income 5 5
（II）
Investment or
-2,022, -2,022,
decreasing of
386.93 386.93
capital by
owners
1．Ordinary Sh
ares invested b
y shareholders
2 ． Holders of
other equity ins
truments invest
ed capital
3．Amount of
shares paid and
accounted as
owners’ equity
59
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
-2,022, -2,022,
4．Other
386.93 386.93
（III）Profit
allotment
1.Providing of
surplus reserves
2.Providing of
common risk
provisions
3．Allotment to
the owners (or
shareholders)
4．Other
(IV) Internal
transferring of
owners’ equity
1. Capitalizing
of capital
reserves (or to
capital shares)
2. Capitalizing
of surplus
reserves (or to
capital shares)
3．Making up
losses by
surplus
reserves.
4.Change
amount of
defined benefit
plans that carry
forward
Retained
earnings
5．Other
comprehensive
income
carry-over
retained
earnings
60
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
6．Other
(V). Special
reserves
1. Provided this
year
2．Used this
term
（VI）Other
IV. Balance at 119,3 958,57 125,68 -910,3 293,30
293,301
the end of this 75,00 5,094. 6,000. 34,643 1,450.
,450.54
term 0.00 29 00 .75 54
8. Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
Amount in this period
Other Equity instrument
Other
Less: Specializ Total of
Items Share preferr Capital Compreh Surplus Retaine
Sustain Shares in ed Other owners’
capital ed Other reserves ensive reserves d profit
able stock reserve equity
stock Income
debt
119,37 -1,005,
I.Balance at the 958,575, 125,686, 197,724,2
5,000.0 911,83
end of last year 094.29 000.00 60.22
0 4.07
Add: Change of
accounting
policy
Correcting of
previous errors
Other
II.Balance at the 119,37 -1,005,
958,575, 125,686, 197,724,2
beginning of 5,000.0 911,83
094.29 000.00 60.22
current year 0 4.07
III.Changed in -33,651 -33,651,29
the current year ,295.32 5.32
（I）Total
-33,651 -33,651,29
comprehensive
,295.32 5.32
income
61
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
(II) Investment
or decreasing of
capital by
owners
1．Ordinary Sha
res invested by s
hareholders
2．Holders of ot
her equity instru
ments invested c
apital
3.Amount of
shares paid and
accounted as
owners’ equity
4．Other
（III）Profit
allotment
1.Providing of
surplus reserves
2．Allotment to
the owners (or
shareholders)
3．Other
(IV) Internal
transferring of
owners’ equity
1. Capitalizing
of capital
reserves (or to
capital shares)
2. Capitalizing
of surplus
reserves (or to
capital shares)
3．Making up
losses by surplus
reserves.
4.Change
amount of
62
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
defined benefit
plans that carry
forward
Retained
earnings
5．Other
comprehensive
income
carry-over
retained earnings
6．Other
(V) Special
reserves
1. Provided this
year
2．Used this term
（VI）Other
IV. Balance at 119,37 -1,039,
958,575, 125,686, 164,072,9
the end of this 5,000.0 563,12
094.29 000.00 64.90
term 0 9.39
Amount in last year
In RMB
Amount in last year
Other Equity
instrument Other
Less: Specializ Total of
Items Share Capital Compre Surplus Retained
preferr Shares ed Other owners’
Capital Sustai reserves hensive reserves profit
ed Other in stock reserve equity
nable Income
stock
debt
119,37
I.Balance at the 958,575 125,686 -1,005,06 198,575,84
5,000.
end of last year ,094.29 ,000.00 0,247.56 6.73
00
Add: Change of
accounting
policy
Correcting of
previous errors
Other
63
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
II.Balance at 119,37
958,575 125,686 -1,005,06 198,575,84
the beginning 5,000.
,094.29 ,000.00 0,247.56 6.73
of current year 00
III.Changed in -851,586.
-851,586.51
the current year 51
（I）Total
-851,586.
comprehensive -851,586.51
51
income
(II) Investment
or decreasing of
capital by
owners
1．Ordinary Sh
ares invested by
shareholders
2．Holders of o
ther equity instr
uments invested
capital
3.Amount of
shares paid and
accounted as
owners’ equity
4．Other
（III）Profit
allotment
1.Providing of
surplus reserves
2．Allotment to
the owners (or
shareholders)
3．Other
(IV) Internal
transferring of
owners’ equity
1. Capitalizing
of capital
reserves (or to
capital shares)
2. Capitalizing
64
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
of surplus
reserves (or to
capital shares)
3．Making up
losses by
surplus
reserves.
4.Change
amount of
defined benefit
plans that carry
forward
Retained
earnings
5．Other
comprehensive
income
carry-over
retained
earnings
6．Other
(V) Special
reserves
1. Provided this
year
2．Used this
term
（VI）Other
IV. Balance at 119,37
958,575 125,686 -1,005,91 197,724,26
the end of this 5,000.
,094.29 ,000.00 1,834.07 0.22
term 00
III. Corporate Information
Chongqing Jianshe Vehicle System Co.,Ltd. (hereinafter referred to as the "Company", "Company" or "Chongqing
Jianshe")，the company’s original name is Chongqing Jianshe Motorcyle Co.,Ltd.，was jointly set up in July 1995
by the Construction Industry (Group) Co., Ltd. and China North Industries Shenzhen Corporation. The Business
License of the Enterprise: No. 915000007474824231. The Company was listed in July 1995 at the Shenzhen
Stock Exchange. The Company is engaged in the manufacturing industry.
On December 27, 2017, the company issued an announcement that it has completed the relevant business
registration procedures for the change in Chinese, obtained the notice of approval for change of registration of
65
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
chongqing administration of industry and commerce (Chongqing Industrial and commercial registration of
changes [2017] No.1206-1)，got an issue of a business license and approval rear of implementing the shenzhen
stock exchange. The name of the company was changed from " Chongqing Jianshe Motorcycle Co., Ltd." to "
Chongqing Jianshe Vehicle System Co.,Ltd.". Abbreviation of the company was changed from "Jianmo B" to
"Jianche B", and the securities code of the company was unchanged at 200054.
On October 22, 2018, Chongqing Jianshe mechanical and electrical Co., Ltd., the controlling shareholder of the
company, signed the "Equity transfer Agreement for State-owned listed companies" with China South Industries
Group Corporation (hereinafter referred to as "GSGC"). The Chongqing Jianshe mechanical and electrical co.,
LTD. transferred 84,906,250 shares of its state-owned legal person shares to the GSGC, it accounts for 71.13% of
the Chongqing Jianshe 's total share capital.
On December 21, 2018 , The company received the " Confirmation of registration of securities transfer " issued
by the Shenzhen Branch of China Securities Registration and Clearing Co., Ltd., and the registration procedures
for the transfer of shares under this agreement have been completed in the Shenzhen branch of China Securities
Registration and settlement Co., Ltd.
After the completion of this agreement transfer, Chongqing Jianshe mechanical and electrical co., LTD., would no
longer hold shares of the company. GSGC became the controlling shareholder of the company, the proportion of
shareholding is 71.13%, and the nature of the shares is State-owned legal person shares.
The ultimate controller of the Company is the State-owned Assets Supervision and Administration Commission
(SASAC).
As at June 30, 2019, the Company issued 119,375,000 shares in total and had the registered capital of 119,375,000.
The registration place: NO.1, JIANSHE ROAD HUAXI INDUSTRY PARK, BANAN DISTRICT, CHONGQING;
the headquarters address: Banan District, Chongqing Municipality. Legal representative: Lv Hongxian. The main
business activities: research and development, processing, manufacturing and related technical services of
Motorcycles, auto parts, accessories, machinery products, design , manufacturing and related technical services of
tooling (except for those subject to national special provisions) ; R & D, production and sales of motorcycle
engines; research , development and processing of mechanical and electrical products, home appliances, bicycles,
environmental protection product; imports, wholesale, retail, commission agency (except auction) of similar
products of these products.
The disclosure of the financial report was approved by the Board of Directors on July 29, 2019.
As at June 30, 2019, one subsidiaries were included in the scope of consolidated financial statements of the
Company，See "Note 7 Equity in other entities" for details of scope consolidated financial statements and the
change therein.
The company and Chongqing Jianshe Automobile A/C Co., Ltd., its important subsidiary, mainly engaged in the
manufacture, sale of air conditioners and accessories, air conditioning and spare parts maintenance.
IV.Basis of preparation for financial statements
1 Basis of preparation
66
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
The Company prepares the financial statements on the basis of going concern, according to actual transactions and
events, and in accordance with the Accounting Standards for Business Enterprises – Basic Standards and 38
concrete accounting standards issued by the Ministry of Finance on February 15, 2006, the subsequently issued
Accounting Standards for Business Enterprises – Application Guidelines, and the Accounting Standards for
Business Enterprises – Interpretations and other relevant provisions (hereinafter collectively referred to as –
Accounting Standards for Business Enterprises‖), as well as Compilation Rules for Information Disclosure by
Companies Offering Securities to the Public No. 15 - General Provisions on Financial Reports issued by China
Securities Regulatory Commission.
In accordance with relevant provisions of the Accounting Standards for Business Enterprises, the Group adopted
the accrual basis in accounting. Except for some financial instruments, where impairment occurred on an asset, an
impairment reserve was withdrawn accordingly pursuant to relevant requirements.
2. Going Concern
The Company was on a going concern basis in 12 months as of the end of the current reporting period and was not
affected by any material event having impact on the going concern.
V. Principal accounting policies and accounting estimates
Specific accounting policies and accounting estimates:
Whether the company needs to comply with the disclosure requirements of the particular industry
No
Specific accounting policies and accounting estimates:
See the accounting policy for details.
1. Statement on compliance with accounting standards for business Enterprises
The Company state: the financial statements prepared are in line with the requirements in enterprise accounting st
andards in line with of system, and have truly and completely reflected of the financial status in Juneber
30, 2019 operational results, cash flow, and other relevant information of January–June 2019.
2 .Accounting period
The Company’s fiscal periods include fiscal years and fiscal periods shorter than a complete fiscal year from
January 1 to December 31 as one accounting year.
3.Operating cycle
The normal operating cycle refers to the period from the assets used for processing after purchased by the
company to the cash or cash equivalents achieved. 12 months are regarded as one operating cycle in the company,
and which is as the division criterion for the liquidity of assets and liabilities.
4.Functional currency
The functional currency is Renminbi.
5.Accounting treatments of the combination of enterprises under common control and the combination of
enterprises not under the common control
Business combination refers to the transactions or items with one reporting entity formed by the combination of
67
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
two or more separate enterprises. The business combination shall be divided into the business combination under
common control and the business combination under non-common control.
（1）Business combination under common control
The business combination under common control refers to the business combination in which all of the combining
enterprises are ultimately controlled by the same party or parties both before and after the combination, and that
control is not transitory. Of which, the combining party is that acquiring the control right to other combining
enterprises at combining date, and the combining date means the date that the combining party actually acquires
the control right of the combined party. The acquisition date means the date that the acquirer actually obtains the
control right of the acquiree.
The assets and liabilities acquired by the combining party are measured in accordance with the book value of the
combined party at the combining date. For the balance between the book value of net assets acquired by the
combining party and the book value of the combining valuable consideration (or the nominal amount of issued
shares), the capital reserves (stock premium) shall be adjusted, or the retained earnings shall be adjusted when the
capital reserves (stock premium) are insufficient.
All the costs directly incurred for the business combination by the combining party shall be recorded into the
current profits and losses when occurred.
（2）Combination of enterprises not under the common control
The business combination under non-common control refers to the business combination in which all of the
combining enterprises are not ultimately controlled by the same party or parties both before and after the
combination. Of which, the acquirer is that obtaining the control right to other combining enterprises at
acquisition date, and other combining enterprises refers to the acquiree. The acquisition date means the date that
the acquirer actually obtains the control right of the acquiree.
For the business combination under non-common control, the merger costs include the assets paid for obtaining
the control right of acquiree by the acquirer, the liabilities occurred or borne and the fair value of equity securities
issued, the intermediary fees for audit, legal services, evaluation and consultation when the business combination
issued, and other management costs shall be recorded into the current profits and losses when occurred. The
transaction costs of equity securities or debt securities issued for the merger consideration by the acquirer shall be
included into the initially recognized amount of the equity securities or the debt securities. The contingent
consideration involved shall be recorded into the merger cost as per the fair value at the acquisition date. Within
12 months after the acquisition date, the combining business reputation should be adjusted correspondingly if the
contingent consideration is required to adjust because of new or further evidence for the existed situation on the
acquisition date. The merger cost issued by the acquirer and the identifiable net assets acquired in the combination
are measured as per the fair value on the acquisition date. The difference of the merger cost minus the fair value
shares of identifiable net assets obtained by the acquiree during the merger on the acquisition date, is recognized
68
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
as the business reputation. While the merger cost is less than the fair value shares of identifiable net assets
obtained by the acquiree during the merger, all the measurement on the identifiable assets, the liabilities, the fair
value of liabilities and the merger cost obtained by the acquiree should firstly be rechecked, and the difference
shall be recorded into the current profits and costs if the merger cost is still less than the fair value shares of
identifiable net assets obtained by the acquiree during the merger after rechecking.
If the deductible temporary difference of acquiree obtained by the acquirer is not recognized due to the
recognition condition of the deferred income tax assets unmet on the acquisition date within 12 months after the
acquisition date, the relevant deferred income tax assets shall be recognized and the business reputation shall be
reduced if the acquired new or further evidence shows that the relevant situation has already existed and the
economic benefit gained by the acquiree from the deductible temporary difference is expected to achieve, and the
differences are recognized as the current profits and losses if the business reputation is insufficient to offset. With
the exception of the above, the deferred income tax assets related to the business combination are recorded into
the current profits and losses.
For the business combination under non-common control realized step-by-step through multiple transactions, the
multiple transactions shall be judged if belong to “the package deal” according to the “Notice on Issuance of
Interpretation of Accounting Standards for Business Enterprises from Ministry of Finance” (Finance and
Accounting [2012] No.19) and the judgment standards on “the package deal” in Article 51st of “Accounting
Standards for Business Enterprises No.33 – Consolidated Financial Statement” (please see Note 3.6 (2)). For the
package deal, please refer to above description of this section and Note 3.14 “Long-term Equity Investment” to
conduction the accounting treatment. For the non-package deal, the relevant accounting treatment should be
respectively conducted for the individual financial statement and the consolidated financial statements:
For the individual financial statements, the sum of the book value of equity investment from the purchased party
held before the purchase date and the new investment cost at the purchase date shall be as the initial investment
cost of the investment. For the other comprehensive incomes involved in the equity of the acquiree held before the
acquisition date, the investment and the relevant other comprehensive incomes shall be disposed through the
accounting treatment on the same basis of the direct disposal of the relevant assets or liabilities by the acquiree
(Namely, the rest is transferred into the current investment incomes with the exception of the corresponding shares
of changes caused by the net liabilities or the net assets of the defined benefit plans re-measured by the acquiree as
per the equity method).
In the consolidated financial statements, the equity of the acquiree held before the acquisition date shall be
measured again as per the fair value of the equity on the acquisition date, and the difference between the fair value
and the book value is recorded into the current investment income. For the other comprehensive incomes involved
in the equity of the acquire held before the acquisition date, the relevant other comprehensive incomes shall be
disposed through the accounting treatment on the same basis of the direct disposal of the relevant assets or
liabilities by the acquire (Namely, the rest is transferred into the current investment incomes on the acquisition
69
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
date, with the exception of the corresponding shares of changes caused by the net liabilities or the net assets of the
defined benefit plans re-measured by the acquire as per the equity method).
6. Preparation of consolidated financial statements
（1）Principle for determining the consolidation scope
The consolidation scope for financial statements is determined on the basis of control. The term “control” is the
power of the Group upon an investee, with which it can take part in relevant activities of the investee to obtain
variable returns and is able to influence the amount of returns. The scope of consolidation includes the Company
and its all subsidiaries. A subsidiary is an enterprise or entity controlled by the Group.
Once any changes in the relevant facts or situations resulted in any changes in the elements involved in the
aforesaid definition of “control”, the Company shall carry out a reassessment.
（2）Compiling method of consolidated accounting statements
The company starts to include the actual control right to the net assets and the production and management
decisions of the subsidiaries into the combination scope since the date of the actual right acquired, and will stop
covering into the combination scope on the date of the actual right lost. For the disposed subsidiaries, the business
performance and the cash flow before the disposal date have been properly covered in the consolidated profit
statement and the consolidated cash flow statement. For the subsidiaries disposed in the current period, the
opening balance of the consolidated balance sheet shall not be adjusted. through the business combination under
non-common control, the business performance and the cash flow after the acquisition date have been properly
included in the consolidated profit statement and the consolidated cash flow statement, and the opening balance
and the comparison balance of the consolidated financial statement shall not be adjusted. For the subsidiaries
increased through the business combination under common control, the business performance and the cash flow
from the beginning of current combination period to the combination date have been properly included in the
consolidated profit statement and the consolidated cash flow statement, and the comparison balance of the
consolidated financial statement shall be adjusted simultaneously.
With the preparation of the consolidated financial statement, the necessary adjustment shall be made according to
the accounting policy of the company and the financial statement of the subsidiaries during the fiscal period if the
accounting policy or the fiscal period adopted by the subsidiaries and the company is discrepant. For the
subsidiaries acquired through the business combination under non-common control, the financial statement shall
be adjusted on the basis of the fair value of the identifiable net assets on the acquisition date.
All the major balances, transactions and the unrealized profits of the company shall be offset in the preparation of
the consolidated financial statement.
Those not belong to the company in the shareholders’ equity and the current net profit or loss of the subsidiaries
shall be respectively as the minority equity and the minority interest income and individually listed under the
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shareholders’ equity and the net profit of the consolidated financial statement. The minority equity portion from
the net profit or loss in current period shall be as “minority interest income” and listed under the net profit in the
consolidated financial statement. Moreover, the minority equity is still offset even if the losses of the subsidiaries
undertaken by the minority shareholders are beyond the portion of the shareholders’ equity shared by the minority
shareholders of the company at the beginning of period.
When the control on the original subsidiaries lost due to the disposal of partial equity investment or other reasons,
the remaining equity should be measured again according to the fair value on the control lost date. The difference
of the consideration acquired by the disposal of equity and the fair value of the surplus equity minus the net assets
portion of the original subsidiaries calculated from the purchase date as per the original stock proportion shall be
recorded into the current investment income after the control lost. Other comprehensive returns relevant to the
original subsidiary shares investment shall be disposed through the accounting treatment on the same basis of the
direct disposal of the relevant assets or liabilities by the acquiree when the control lost (Namely, all the rest are
transferred into the current investment incomes, with the exception of the changes caused by the net liabilities or
the net assets of the defined benefit plans re-measured by the original subsidiaries). Thereafter, the subsequent
measurement shall be made for the rest equity according to the relevant provisions of “Accounting Standards for
Business Enterprises No. 2 – Long-term Equity Investment” or “Accounting Standards for Business Enterprises
No. 22 – Recognition and Measurement of Financial Instruments”. For the details, please see Notes 3.14
“Long-term Equity Investment” or Notes 3.10 “Financial Instruments”.
For the equity investment in the subsidiary through the step-by-step disposal of multiple transactions till the
control right lost, the company should respectively dispose all the transactions if belong to the package deal. As
long as the terms, conditions and economic influence on all the transactions of the disposal of the equity
investment in the subsidiary meet one status below, it usually shows that the multiple transactions matters should
be conducted the accounting treatment as the package deal: ① these transactions are made simultaneously or
under the consideration of the influence each other. ② these transactions shall be as the whole to achieve one
complete business results. ③ one transaction occurs depending on the appearance of other one transaction at least.
④ one transaction is economic under the consideration with other transactions even if it is not economic when
individually considerate. For the non-package deal, each transaction shall be respectively conducted the
accounting treatment according to the applicable principles of “Partial Disposal of Long-term Equity Investment
in Subsidiary without Control Lost” (please refer to (2) ④ in Note 3.14) and “The Control on Original
Subsidiary Lost due to Disposal of Part of Equity Investment or Other Reasons” (details please see forepart). For
the package deal from the transactions after the disposal of equity investment in the subsidiary till the control right
lost, the transactions shall be as one transaction of the disposal of subsidiary and the control lost for the
accounting treatment. Therefore, every balance between the net assets proportion of the subsidiary shared relative
to the disposal price and the disposal investment before the control right lost, shall be recognized as other
comprehensive incomes in the consolidated financial treatment and transferred into the current profits and losses
when the control lost.
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7. Joint venture arrangements classification and Co-operation accounting treatment
Joint enterprise arrangement is two or more parties jointly control the enterprise. The company enjoys rights and
bears obligations based on joint enterprise arrangement. Joint enterprise arrangement is composed of joint
operation and joint enterprises. Joint operation means the company has the right to arrange related assets and
related liabilities. Joint enterprises means the company only has the right to arrange the net asset.
The company adopts equity method to calculate investment to joint enterprises by referring to accounting policies
stated in "Long-term Stock Ownership for Equity Method Calculation" (please refer to (2) ④ in Note 3.14)
As one party of joint operation, the company confirms assets and liabilities only held by itself and confirms joint
assets and liabilities as proportion of the company’s shares; confirm incomes from sales and production in the way
of joint operation as proportion of the company’s shares; confirm the company’s own expenses and all expenses in
the way of joint operation as proportion.
As a party of joint operation, the company funds or sells assets (not used for operation, the same below) of joint
operation or purchases assets from joint operation. Before the assets are sold to a third party, the company only
confirms the loss and benefit in the trade which belong to other parties in the joint operation. In case the assets is
in conformity to the asset impairment loss regulated in Asset Impairment --No.8 of Accounting Criteria for
Enterprises, the company confirms all losses in full amount for the company funding or selling assets of joint
operation. The company confirms the loss as proportion of shares for the company purchasing assets from joint
operation.
8.Recognition criteria of cash and cash equivalents
For the purpose of preparing the statement of cash flows, the term “cash” refers to cash on hand and deposits of
that are readily available for payment. And the term “cash equivalents” refers to short-term (maturing within three
months from acquisition) and highly liquid investments that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of change in value.
9. Foreign currency business and foreign currency translation
（1）Translation Method of Foreign Currency Transaction
The shot exchange rate (usually refers to the middle rate at the date of currency exchange published by the
People’s Bank of China, hereinafter inclusive) on the transaction date is adopted to convert to the amount of
functional currency when the foreign currency transaction issued in the company is initially recognized. However,
the foreign currency exchanges or the transactions relative to the foreign currency exchanges occurred in the
company shall be translated into the amount of functional currency as per the actually adopted exchange rate.
（2）Translation Method for Monetary Items of Foreign Currency and Non-monetary Items of Foreign Currency
On the balance sheet date, the monetary items of foreign currency are translated as per the shot exchange rate on
the balance sheet date, and the foreign exchange conversion gap arising from which shall be recorded into the
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profits and losses of the current period, except for ① the balance of exchange arising from special foreign
currency borrowings for the purchase and construction of qualified assets subject to the principle of borrowing
costs. ② the exchange balance generated from other book balances in the foreign currency monetary items
available for sale with the exception of the post-amortization costs shall be recorded into other comprehensive
incomes.
When it involves overseas business in preparing the consolidated financial statement, for the translation difference
of foreign currency monetary items of net investment in overseas business arising from the change in exchange
rate, it shall be recorded into the other comprehensive income; and be recorded into disposal gains and losses at
current period when disposing overseas business.
The non-monetary items of foreign currency measured at the historical cost shall still be measured by the amount
of functional currency translated at the spot exchange rate on the transaction date. The non-monetary items of
foreign currency measured at the fair value shall be translated at the spot exchange rate on the fair value
recognized date, and the gap of the translated amount of functional currency and the original the amount of
functional currency shall be as the fair value variation (change in exchange rate included) to make treatment and
recorded into the current profits and losses or recognized as other comprehensive incomes.
（3）Translation Method of Foreign Currency Financial Statement
For the overseas business operation involved in the preparation of the consolidated financial statement, the
exchange balance arising from the change in exchange rate for the foreign currency monetary items of the net
investment in the overseas business, shall be as “translation reserve of foreign currency statement” and recognized
as other comprehensive incomes. The profits and losses of the current disposal period shall be recorded when
disposal of the overseas business operations.
The foreign currency financial statement of the overseas business operation shall be translated as RMB statement
as per the following methods: the assets and liabilities in the balance sheet shall be translated at a spot exchange
rate on the balance sheet date. For the shareholders’ equity items, other items shall be translated at a spot exchange
rate when occurring, except for the “undistributed profit” items. The earnings and expenses items in the profit
statement shall be translated at a spot exchange rate on the transaction date. Moreover, the undistributed profits at
the beginning of this year are the profits translated at the end of last year which shall be distributed and listed all
the items measurement as per the translated profits. The difference between the translated assets items and the sum
of the liabilities items and the shareholders’ equity items shall be as the translation reserve of foreign currency
statement and recognized as other comprehensive incomes. When disposing the overseas business operation and
losing the control right, the translation reserves of foreign currency statement related to the overseas business
operation which listed in the shareholders’ equity items in the balance sheet, are all recorded into the current
disposal profits and losses or shifted as per the disposal proportion of the overseas business operation.
The cash flows of foreign currency and overseas subsidiary shall be translated at the spot exchange rate on the
cash flow date. The influence amount of the change in exchange rate on the cash shall be individually listed and
reported as the adjustment items in the cash flow statement.
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The amount at the beginning of this year and the actual amount of last year shall be listed according to the
translated amount of the financial statement.
If the control on the overseas business operation lost due to the disposal of partial equity investment or other
reasons when disposing all the owners’ equity of the overseas business operation of the company, the translation
reserves of foreign currency statement belong to the owners’ equity of the parent company related to the overseas
business operation which listed in the shareholders’ equity items in the balance sheet, are all recorded into the
current disposal profits and losses.
If the held equity proportion of the overseas business operation reduced due to the disposal of partial equity
investment or other reasons, but the control on the overseas business operation not lost, the translation reserves of
foreign currency statement related to the partial disposal of the overseas business operation shall be belong to the
minority equity and not recorded into the current profits and losses. When disposing partial equity of the joint
ventures or the cooperative enterprises of the overseas business operations, the translation reserves of foreign
currency statement related to the overseas business operations shall be recorded into the current disposal profits
and losses as per the disposal proportion of the overseas business operations.
10. Financial instruments
One financial asset or financial liability shall be recognized when the company becomes the party in the financial
instrument contract. The financial assets and the financial liabilities are measured at the fair value in the initial
recognition. For the financial assets and liabilities that measured at the fair values and the variation included in the
current profits and losses, the relative transaction expenses shall be directly recorded into the profits and losses.
For the financial assets and liabilities of other categories, the expenses related to transactions are recognized as
initial amount.
（1）Determination Method for the Fair Value of Financial Assets and Liabilities
The fair value refers to the price that receivable for the sale of one asset or paid for the transfer of one liability in
the orderly transactions occurring on the measurement date for the market participants. If there exists the active
market for the financial instrument, the company shall recognize the fair value according to the quotation in the
active market which refers to the price that easy to periodically acquire from Exchanges, Commission Brokers,
Guilds and Pricing Services, and stands for the price of the market transactions actually occurred in the fair
dealing. For there isn’t the active market for the financial instrument, the company shall recognize the fair value
with adopting the valuation technique which includes the price used in the market transactions recently conducted
by the parities with voluntary trade and under the consideration and acquainting of the situation, the current fair
value in reference to other same financial instruments, the discount cash flow method and the option pricing
model.
（2）Classification、recognition and measurement of financial instruments
The accounting recognition and de-recognition shall be conducted at the transaction date in the conventional way
for the financial assets dealing. The financial assets are divided into the financial assets, the held-to-maturity
investment, the loans, the receivables and the sellable financial assets which are measured at their fair values and
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of which the variation are recorded into the current profits and losses when recognized initially.
① Financial assets (financial liabilities) measured at fair value through current profit and loss
Including the tradable financial assets and the financial assets designated at their fair values and of which the
variation is recorded into the current profits and losses.
The tradable financial assets refer to the financial assets meeting any of the following requirements: A. the
purpose to acquire the financial assets is for selling in the short-term. B. forming a part of the identifiable
combination of financial instruments which are managed in a centralized way and for which there are objective
evidences proving that the company may manage the combination by way of short-term profit making in the near
feature. C. being a derivative instrument, excluding the designated derivative instruments which are effective
hedging instruments, or derivative instruments belong to financial guarantee contracts, and the derivative
instruments which are connected with the equity instrument investments for which there is no quotation in the
active market and whose fair value cannot be reliably measured, and which shall be settled by the delivery of the
equity instruments.
The financial assets meeting any of the following requirements can be designated when they are initially
recognized as financial assets measured at their fair values and of which the variation is recorded into the current
profits and losses: A. the designation is able to eliminate or obviously reduce the discrepancies in the recognition
or measurement of relevant gains or losses arisen from the different basis of measurement of the financial assets.
B. the official written documents on risk management or investment strategies of the company have recorded that
the combination of the financial assets, or the combination of the financial assets and liabilities will be managed
and evaluated on the basis of the fair value and reported to the key management personnel.
The financial assets measured at their fair values and of which the variation is recorded into the current profits and
losses shall be made the subsequent measurement as per the fair value, and the gains or losses formed from the
variation of the fair value as well as the dividend and interest incomes related to the financial assets shall be
recorded into the current profits and losses.
②Held-to-maturity investments
The held-to-maturity investment refers to a non-derivative financial asset with a fixed date of maturity, a fixed or
determinable amount of report price and the company holds for a definite purpose or is able to hold until its
maturity.
The held-to-maturity investments shall be made the subsequent measurement on the basis of the actual interest
rate and the post-amortization costs, and the gains or losses arising from de-recognition, impairment or
amortization shall recorded into the current profits and losses.
The actual interest rate method is the way to calculate the post-amortization costs and the interest incomes or
expenditure at each period as per the actual interest rate of the financial assets or liabilities (a group of financial
assets or liabilities included). The actual interest rate means that the future cash flow of the financial assets or
liabilities within the predicted term of existence or within a shorter applicable term shall be discounted as the rate
used for the current book value of the financial assets or liabilities.
When calculating the actual interest rate, the company should consider all the contract terms of the financial assets
or liabilities to estimate the future cash flow (without regard to the future credit loss), and take account of all the
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charges, transaction expenses and discounts or premium belong to the actual interest rate and paid or received
between all the parties of the financial assets or liabilities contracts.
③ Loans and Accounts receivable
The loans and the receivables refer to a non-derivative financial asset without the quotation, a fixed or
determinable amount of repo price in the active market. The financial assets divided into loans and receivables of
the company shall include the bill receivable, the accounts receivable, the interest receivable, the dividends
receivable and other receivables.
The loans and the receivables shall be made the subsequent measurement on the basis of the actual interest rate
and the post-amortization costs, and the gains or losses arising from de-recognition, impairment or amortization
shall recorded into the current profits and losses.
④ Available-for-sale financial assets
The sellable financial assets refer to the non-derivative financial assets which are designated as sellable when they
are initially recognized as well as the financial assets other than the financial assets, the loans, the receivables and
the held-to-maturity investments measured at the fair value and of which the variation recorded into the current
profits and losses.
The costs of the sellable liability instrument investments at the end of period shall be recognized as per the
post-amortization cost method, which is the amount that the accumulated amortization amount, formed after the
amortization for the initially recognized amount with the compensated capital deducted plus or minus the
difference between the initially recognized amount and the amount at the maturity date with use of the actual
interest rate method, with deduction of the impairment losses occurred. The costs of the sellable equity instrument
investments at the end of period are the initially acquired costs.
The sellable financial assets shall be conducted the subsequent measurement at the fair value，the gains or losses
arising from the change in the fair value, except that the impairment losses and the exchange balance related to the
monetary financial assets of foreign currency and the post-amortization costs are recorded into the current profits
and losses, shall be recognized as other comprehensive incomes, transferred out and recorded into the current
profits and losses when the de-recognition of the financial assets. However, The equity instrument investment
which has no quotation in the active market and whose fair value cannot be reliably measured, and the derivative
financial assets which are connected with the equity instrument and required to settle by the delivery of the equity
instrument shall be conducted the subsequent measurement by costs.
The interests acquired from the sellable financial assets during the holding period and the cash dividends declared
to deliver by the investee shall be recognized as the investment returns.
（3）Impairment of financial assets
The Company assesses at the balance sheet date the carrying amount of every financial asset except for the
financial assets that measured by the fair value. If there is objective evidence indicating a financial asset may be
impaired, a provision is provided for the impairment.
The Group carries out a separate impairment test for every financial asset which is individually significant. As for
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a financial asset which is individually insignificant, an impairment test is carried out separately or in the financial
asset group with similar credit risk. Where the financial asset (individually significant or insignificant) is found
not impaired after the separate impairment test, it is included in the financial asset group with similar credit risk
and tested again on the group basis. Where the impairment loss is recognized for an individual financial asset, it is
not included in the financial asset group with similar credit risk for an impairment test.
① Impairment of held-to- maturity investments、loans and accounts receivable
The financial assets measured by cost or amortized cost write down their carrying value by the estimated present
value of future cash flow. The difference is recorded as impairment loss. If there is objective evidence to indicate
the recovery of value of financial assets after impairment, and it is related with subsequent event after recognition
of loss, the impairment loss recorded originally can be reversed. The carrying value of financial assets after
impairment loss reversed shall not exceed the amortized cost of the financial assets without provisions of
impairment loss on the reserving date.
②Impairment of available-for-sale financial assets
The decline for the fair value of the sellable equity instrument investments can be judged as serious or
non-transient depreciation by the relevant comprehensive factors, which shows that the sellable equity instrument
investments have the impairment. Of which, the “serious depreciation” refers to the decline range of the fair value
accumulatively over 20%, and the “non-transient depreciation” is the decline period of the fair value continuously
beyond 12 months.
When the sellable financial assets impair, the accumulated losses formed due to the depreciation of the fair value
for other comprehensive incomes originally recorded shall be transferred out and recognized as the current profits
and losses, and the transferred accumulative losses are the balances of the costs of the assets initially acquired
with deduction of the withdrawn capitals, the amortized amount, the current fair value and the impairment losses
initially recorded into profits and losses.
After the impairment losses recognized and if there are objective evidences proving that the financial assets values
have resumed after the period and have objectively involved in the matters occurred after the losses recognized,
the impairment losses originally recognized shall be switched back, the reverse of the impairment losses for the
sellable equity instrument investments shall be recognized as other comprehensive incomes and the reverse of the
impairment losses for the sellable liability instrument shall be recorded into the current profits and losses.
The equity instrument investment which has no quotation in the active market and whose fair value cannot be
reliably measured, or the impairment losses of the derivative financial assets which are connected with the equity
instrument and required to settle by the delivery of the equity instrument shall not be reversed.
（4）Recognition and measurement for transfer of financial assets
For financial asset that satisfies the following criteria, it shall stop recognizing the financial asset: 1) the contract
rights to collect the cash flow of the financial assert has been terminated; 2) the financial assert has been
transferred with nearly all of the risks and rewards related to the ownership of the financial assert transferred to
transferee; 3) the financial assert has been transferred with the control to such financial asserts waived, though this
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enterprise has not transferred or retained nearly all the risks and rewards related to the ownership of the financial
asset.
If this enterprise has neither transferred nor retained almost all the risks and rewards on the asset ownership, it
shall, within the extent of its continuous involvement in the transferred financial asset and recognize the relevant
liability. The term "continuous involvement in the transferred financial asset" shall refer to the risk level that this
enterprise faces resulting from the change of the value of the financial asset.
If the transfer of an entire financial asset satisfies the conditions for stopping recognition, the difference between
the amounts of the book value of the transferred financial asset and the sum of consideration received from the
transfer, and the accumulative amount of the changes of the fair value originally recorded in the owner's equities
of other comprehensive income, shall be recorded in the profits and losses of the current period.
If the transfer of partial financial asset satisfies the conditions to stop the recognition, the book value of the
transferred financial asset shall, between the portion whose recognition has been stopped and the portion whose
recognition has not been stopped, be apportioned according to their respective relative fair value, and the
difference between the amounts of the following 2 items shall be included into the profits and losses of the current
period: 1)sum of consideration the portion whose recognition has been stopped and the accumulative amount
changes in fair value originally recorded owner’s equities which is corresponding to stopped, the book value of
the portion whose recognition has been stopped; 2) the book value of the portion whose recognition has been
stopped.
For the financial asset sold with recourse attached, it is to transfer the financial asset held by endorsement, prior to
confirmation that nearly all of the risks and rewards related to the ownership of the financial asset has been
transferred to transferee. Where this enterprise has transferred nearly all of the risks and rewards related to the
ownership of the financial asset to the transferee, it shall stop recognizing the financial asset. If it retained nearly
all of the risks and rewards related to the ownership of the financial asset, it shall not stop recognizing the
financial asset. Where this enterprise does not transfer or retain nearly all of the risks and rewards related to the
ownership of a financial asset, it shall deal with it according to principles stipulated above.
（5）Classification and measurement of financial liabilities
Financial liabilities shall be classified into the two categories when they are initially recognized: the financial
liabilities which are measured at their fair values and of which the variation is included in the current profits and
losses; other financial liabilities. The initial recognition of financial liabilities shall be measured at fair value. For
the financial liabilities which are measured at their fair values and of which the variation is included in the current
profits and losses, the related transaction cost shall be included directly in the current profits and losses; for other
financial liabilities, the related transaction cost included in the initially recognized amount.
① Financial liabilities measured at fair value through current profit and loss
Such financial liabilities are divided into transactional financial liabilities and financial liabilities designated to be
measured at fair values and whose changes are recorded in current gains and losses in the initial recognition under
the same conditions where such financial assets are divided into transactional financial assets and financial assets
designated to be measured at fair values and whose changes are recorded in current gains and losses in the initial
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recognition.
Financial liabilities measured at fair values and whose changes are recorded in current gains and losses are
subsequently measured at their fair values. Gains or losses arising from the fair value changes, as well as the
dividend and interest expenses in relation to the said financial liabilities, are recorded in the profits and losses for
the current period.
② Other Financial liabilities
And are not quoted in an active market, for which there is no quoted price in the active market and whose fair
value cannot be reliably measured, this enterprise shall make subsequent measurement according to its cost. For
other financial liabilities, this enterprise shall make subsequent measurement on the basis of the post-amortization
costs by adopting the actual interest rate method, with profits or losses resulting from stopping recognition or
amortization recorded into the profits and losses of the current period.
③ Financial guarantee contract and loan commitment
For the financial guarantee contracts which are not designated as a financial liability measured at its fair value and
the variation thereof is recorded into the profits and losses of the current period, or the loan commitment which is
not designated as a financial liability measured at its fair value and the variation thereof is recorded into the gains
and losses that will be loaned lower than the market interest rate, which shall be initially recognized by fair value,
and the subsequent measurement shall be made after they are initially recognized according to the higher one of
the following: a. the amount as determined according to the Accounting Standards for Enterprises No. 13 –
Contingencies; b. the surplus after accumulative amortization as determined according to the principles of the
Accounting Standards for Enterprises No. 14 - Revenues is subtracted from the initially recognized amount.
（6）Conditions for derecognition of financial liabilities
Financial liabilities shall be entirely or partially derecognized if the present obligations derived from them are
entirely or partially discharged. Where the Company enters into an agreement with a creditor so as to substitute
the current financial liabilities with new ones, and the contract clauses of which are substantially different from
those of the current ones, it shall recognize the new financial liabilities in place of the current ones.
Upon entire or partial derecognition of financial liabilities, differences between the carrying amounts of the
derecognized financial liabilities and the consideration paid (including non-monetary assets surrendered or new
financial liabilities assumed) are charged to profit or loss for the current period.
（7）Derivatives and embedded derivatives
Derivative financial instruments include derivatives are initially measured at fair value at the date when the
derivative contracts are entered into and are substantially re-measured at fair value. The resulting gain and loss is
recognized in profit or loss.
An embedded derivative is separated from the hybrid instrument, where the hybrid instrument is not designated as
a financial asset or financial liability at fair value though profit or loss, and the treated as a standalone derivative if
(a) the economic characteristics and risks of the embedded derivative are not closely related to the economic
characteristics and risks of the host contract; and (b) a separate instrument with the same terms as the embedded
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derivative would meet the definition of a derivative. If the Company is unable to measure the embedded derivative
separately either at acquisition or at a subsequent balance sheet date, it designates the entire hybrid instrument as a
financial asset or financial liability at fair value through profit or loss.
（8）Offset of Financial Asset and Financial Liability
Where this enterprise has the legal right to offset its recognized financial asset and financial liability, and it is able
to perform this legal right, and if it plans to settle with the net amount of and cash the financial asset and liquidate
the financial liability, it shall itemize and show in the balance sheet the amounts after the financial asset and the
financial liability offset each other. For any other circumstances, the financial asset and financial liability shall not
offset each other, and shall be itemized and shown separately in the balance sheet.
（9）Equity Instruments
The "equity instruments" refers to the contracts which can prove that this enterprise holds the surplus equities of
the assets after the deduction of all the debts. This enterprise deal the equity instruments issued (including
refinancing), repurchased, sold or cancelled as changes of equity. It shall not recognize the changes of fair value of
equity instruments. The transaction expenses associated with equity transactions shall be deducted from the
equity.
This enterprise shall deduct the shareholders' equity for various kinds of distributions (not including stock
dividends) to the holders of equity instruments. It shall not recognize the amount of changes in the fair value of
equity instruments.
11.Notes receivable
12.Account receivable
(1) Bad debt provision on receivable accounts with major amount individually
Accounts receivable have an individual amount of more than
Assessment basis or standard of individually significant amount RMB5 million, and other receivables have an individual amount
of RMB3 million.
The separate impairment tests are carried out for the accounts
receivable. Provision for bad debts shall be made at the difference
Individual provision for bad debt of significant accounts
of present values of estimated future cash flows in short of their
receivable
book values and included in current profit and loss, if any
objective evidence indicates the impairment.
(2) Accounts receivable with provision for bad debts accrued by credit risk features portfolio
Name Basis of bad debt provision
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Accounts receivable without provision for bad debt Age analysis method
In Group ,Accounts on age basis in the portfolio：
√ Applicable □ Not applicable
Proportion of provision for accounts Provision for bad debt of other receivables
Aging
receivable (%) (%)
1-6 months（including 6 months） 0.00% 0.00%
6 months -within 1 year 5.00% 5.00%
1－2 years 10.00% 10.00%
2－3 years 30.00% 30.00%
3－4 years 50.00% 50.00%
4－5 years 80.00% 80.00%
Over 5 years 100.00% 100.00%
Receivable accounts on which had debt provisions are provided on percentage analyze basis in a portfolio
□Applicable √Not applicable
Receivable accounts on which had debt provisions are provided by other ways in the portfolio
□Applicable √Not applicable
(3)Account receivable with non-material specific amount but specific bad debt preparation
Reasons for individual provision for bad debts: If there is any
clear evidence indicating that the receivables cannot or are
unlikely to be recovered, for example, the bankruptcy, insolvency,
insufficient cash flow of the debtor, or the insolvency in a short
Reasons of Withdrawing Individual Bad Debt Provision time due to the production halt resulting from the severe natural
disaster, or the accounts receivable may be exposed to risk as
indicated by other evidence, the individual provision for bad debt
will be made.
Method of provision for bad debt: The provision for bad debt is
individually recognized at the difference between the book value
and the present value of estimated future cash flow. Method of
Withdrawing Method of Bad Debt Provision
provision for bad debt: The provision for bad debt is individually
recognized at the difference between the book value and the
present value of estimated future cash flow.
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13. Financing of receivables
14.Other account receivable
Determination method of expected credit loss of other receivables and accounting treatment method
15. Inventories
Whether the company needs to comply with the disclosure requirements of the particular industry
No
（1）Classification of inventories
Inventories are classified into: raw materials, consigned processing materials, low-cost consumables, packaging
materials, stock commodities, goods in progress, semi-finished goods, finished goods, etc.
（2）Obtaining and Measurement of Inventories
The perpetual inventory systems are adopted for this enterprise's inventories. The inventories shall be measured by
their actual cost when they are obtained. Raw materials, works in process, finished products, etc. shall be
measured with the weighted average method when they are being sent out. Low-value consumption goods shall be
written off by one-off write-off method when they are withdrawn for use. Circulation packaging materials shall be
recorded into cost according to the predicted usage times.
（3）Methods to make provision for loss on decline in value of inventories
If the cost of inventories is higher than the net realizable value at the end of each period, this enterprise shall make
the provision for the loss on decline in value of inventories. This enterprise makes provision for the loss on
decline in value of inventories on the ground of each item of inventories. If the factors causing any write-down of
the inventories have disappeared, the amount of write-down shall be resumed and be reversed from the provision
for the loss on decline in value of inventories that has been made.
（4）Method for confirming the net realizable value of inventories
The net realizable value of inventories refers to the amount of the estimated selling price, less the estimated costs
of completion, the estimated selling costs and related tax payments.
16. Contract assets
17.Contract cost
18. Held-for-sale assets
The Company will retrieve its book value by means of selling assets (including the exchange of commercial
non-monetary assets) instead of sequentially using a non-monetary asset or a disposal group, and when meeting
two of the following conditions, the book value will be divided into held-for-sale category: (1) When a certain
non-monetary assets or a certain disposal group sells such kind of assets in similar transactions in accordance with
the convention , assets can be sold immediately under the current situation. (2)The Company has made decision
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for the selling plans and has acquired assured purchase commitment, predicting that selling will be completed
within one year.( The selling, which can only be sold after acquiring approval from relevant authorities or
supervision departments according to relevant provision requirement , has acquired its approval ).
The Company will be specifically for dividing the non-current assets or disposal group which are acquired from
reselling into on-sales category on acquisition date if on acquisition date they can meet the stipulated condition
that the predicted selling will be completed within one year , and in a short term (usually 3 months) they are likely
to meet other conditions of dividing into on-sales category.
When the non-monetary assets and disposal group were measured by the Company at the beginning or remeasured
and divided into held-for-sale category on balance sheet date, if its book value is higher than the net amount after
fair value deducts selling expense, the book value will be written down to the net amount after fair value deducts
selling expense, and the written-down amount will be confirmed as assets impairment losses and counted into the
current profits and losses, and the impairment provision with held-for-sale assets will be withdrawn in the
meanwhile. For the held-for-sale disposal group’s confirmed amount of loss of asset impairment, the book value
of goodwill will be deducted first, and its book value will then be deducted proportionally according to the book
value’s percentages of all non-current assets in the disposal group which can be adopted by the measurement
stipulations of Accounting Standards for Business Enterprises NO.42- Held-for-sale Non-current Assets, Disposal
Groups and Operation Termination
If any increment occurs in the net amount after the held-for-sale non-current assets on the subsequent balance
sheet date deducts selling expense, the amount deducted previously will be recovered and will be transferred back
within the amount of asset impairment losses confirmed after being divided into held-for-sale category, and the
amount transferred back will be counted into the current profits and losses. There will be no restitution for asset
impairment losses confirmed before being divided into held-for-sale category. The amount deducted previously of
held-for-sale disposal group shall be recovered, and when after being divided into held-for-sale category, it will be
transferred back within the amount of impairment confirmed by non-current assets by the means of the measure
stipulations of Accounting Standards for Business Enterprises NO.42- Held-for-sale Non-current Assets, Disposal
Groups and Operation Termination, and the amount transferred back will be counted into the current profits and
losses. There will be no restitution for the book value of goodwill which has been deducted and for asset
impairment losses confirmed before being divided into held-for-sale category which can be adopted by the
measure stipulation of this principle.
Non-current held-for-sale assets or non-current assets in the disposal group shall not be depreciated or amortized,
and interest and other expenses on liabilities held in the disposal group for sale shall continue to be recognized.
When the non-current assets or the disposal group can not meet the conditions of dividing into on-sales category,
the Company will not continue to divide it into on-sales category or remove the non-current assets from the
on-sales disposal group, and the valuation will be made according to the lower one between two of followings:
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（1）Book value before being divided into on-sales category, and the amount of money after being under the
situation where book value is supposed not to be divided into on-sales category and adjustment is made in
depreciation, amortization or impairment which should have been confirmed. （2）Recoverable amount.
When derecognizing the on-sales non-current assets or disposal group, the Company will count the gains and
losses which are yet to be confirmed into the current profits and losses.
19. Debt investment
20.Other debt investment
21.Long-term account receivable
22. Long-term equity investment
The long-term equity investment in this section refers to the long-term equity investment of this enterprise that is
able to control to or does joint control with or significant influences over the invested enterprise. For the
long-term equity investment of this enterprise that is not able to control to or does not do joint control with or
have significant influences over the invested enterprise, this enterprise shall record it as available-for-sale
financial asset or the financial asset measured by its fair value with its changes in fair value recorded into the
profits or losses of current period as the changes. For details of its accounting policy, please refer to Note 3.10
"Financing Instruments".
The term "joint control" refers to the joint control over an arrangement of this enterprise in accordance with the
contracts and agreements, and decisions over relevant activity of such arrangement shall not be unless the assent
on sharing the control power. The term "significant influences" refers to this enterprise's power to participate in
making decisions on the financial and operating policies of the invested enterprise, but not to control or do joint
control together with other parties over the formulation of these policies.
（1）Determination of investment cost
For the merger of enterprises under the same control, it shall, on the date of merger, regard the share of the book
value of the owner's equity of the merged enterprise as the initial cost of the long-term equity investment. The
difference between the initial cost of the long-term equity investment and the payment in cash, no-cash assets
transferred as well as the book value of the debts borne by the merging party shall offset against the capital reverse.
If the capital reserve is insufficient to dilute, the retained earnings shall be adjusted. If the consideration of the
merging enterprise is that it issues equity securities, it shall, on the date of merger, regard the share of book value
of the owner’s equity of the merged enterprise as the initial cost of the long-term equity investment. The total face
value of the stocks issued shall be regarded as the capital stock, while the difference between the initial cost of the
long-term equity investment and total face value of the shares issued shall offset against the capital reserve. If the
capital reserve is insufficient to dilute, the retained earnings shall be adjusted. For the merger of enterprises under
the same control through gaining the shares of the combined enterprise by multiple steps of deals, it shall deal
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with it in the following two ways depending on that if it belongs to "a package deal": if it belongs to "a package
deal", it shall deal with all the deals as one obtaining the control power; if it does not belong to "a package deal",
it shall, on the date of merger, regard the share of book value of the owner’s equity of the merged enterprise as the
initial cost of the long-term equity investment. The total face value of the stocks issued shall be regarded as the
capital stock, while the difference between the initial cost of the long-term equity investment and total face value
of the shares issued shall offset against the capital reserve. If the capital reserve is insufficient to dilute, the
retained earnings shall be adjusted. The equity investment held by this enterprise before the date of merger shall
be accounted for by equity method, or shall be recorded as the other comprehensive income recognized as
available-for-sale financial asset and not accounted for.
For the merger of enterprises not under the same control, it shall, on the date of merger, regard the share of the
book value of the owner's equity of the merged enterprise as the initial cost of the long-term equity investment.
The merger costs include the assets paid, liabilities occurred or borne and sum of the fair value of the equity
securities issued by the purchaser. For the merger of enterprises not under the same control through gaining the
shares of the combined enterprise by multiple steps of deals, it shall deal with it in the following two ways
depending on that if it belongs to "a package deal": if it belongs to "a package deal", it shall deal with all the deals
as one obtaining the control power; if it does not belong to "a package deal", it shall, on the date of merger, regard
the sum of book value of the owner’s original equity of the merged enterprise and the newly increased investment
cost as the initial cost of the long-term equity investment. For the shares originally held by this enterprise
accounted for by weighted equity method, the relevant other comprehensive income shall not be accounted for
temporarily. For the equity investment accounted for as available-for-sale financial asset, the difference of its fair
value and its face value and the accumulated changes in its fair value originally recorded as other comprehensive
income shall be switched to the profits or losses of the current period.
The audit cost, law service cost, evaluation and consultation fees and agent commissions as well as other related
administration costs occurred and borne by the merging or purchasing enterprise for the purpose of merger, shall
be recorded into the profits or losses of current period at the time when the costs occurred.
Other equity investments except the long-term equity investment formed by merger of enterprises shall be initially
ascertained by their costs which, depending on the different ways in acquiring the long-term equity investments,
shall be recognized separately as cash purchasing prices actually paid by this enterprise, fair value of the equity
securities issued by this enterprise, agreed value of the investment contracts or agreements, fair value or original
book value of the assets obtained by exchange of no-monetary assets, the fair value of the long-term equity
investment itself, etc. The relevant expenses, tax payments as well as other necessary expenses directly associated
with obtaining the long-term equity investment shall be recorded into the investment costs as well. If this
enterprise is able to do joint control or significant influence, which does not constitute control, over the invested
entity as a result of additional investment, the long-term equity investment cost shall be the sum of the fair value
of the equity investment ascertained in accordance with the Accounting Standards for Enterprises No. 22 -
Recognition and Measurement of Financial Instrument and the cost of the increased investment.
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（2）Subsequent measurement and recognition of profit or loss
A long-term equity investment of this enterprise that does joint control (not including joint venture) or significant
influences over the invested entity shall be measured by employing the equity method. Besides, the cost method is
employed in this enterprise's financial reports to measure the long-term equity investment that could form control
over the invested entity.
① Long-term equity investment calculated under the cost method
The price of a long-term equity investment measured by employing the cost method shall be included at its initial
investment cost. If there are additional investments, the cost of the long-term equity investment shall be adjusted.
Except the prices actually paid when obtaining the investment or cash dividends or profits being approved in the
consideration but not yet issued, the investment income of the current period shall be recognized in accordance
with the cash dividends or profits being approved by the invested entity.
② Long-term equity investment calculated under the equity method
If the initial cost of a long-term equity investment is more than the investing enterprise's attributable share of the
fair value of the invested entity's identifiable net assets for the investment, the initial cost of the long-term equity
investment may not be adjusted. If the initial cost of a long-term equity investment is less than the investing
enterprise's attributable share of the fair value of the invested entity's identifiable net assets for the investment, the
difference shall be included in the current profits and losses and the cost of long-term equity investment shall be
adjusted simultaneously.
When employing the equity method, this enterprise shall, in accordance with the attributable share of the net
profits or losses of the invested entity, recognize the investment profits or losses and adjust the book value of the
long-term equity investment. This enterprise shall, in the light of the profits or cash dividends declared to
distribute by the invested entity, calculate the proportion it shall obtain, and shall reduce the book value of the
long-term equity investment correspondingly. Where any change is made to the owner's equity other than the net
profits and losses of the invested entity, the book value of the long-term equity investment shall be adjusted and
included in the capital reserves. This enterprise shall, on the ground of the fair value of all identifiable assets of
the invested entity when it obtains the investment, recognize the attributable share of the net profits and losses of
the invested entity after it adjusts the net profits of the invested entity. If the accounting policies and accounting
periods adopted by the invested entity are different from those adopted by this enterprise, an adjustment shall be
made to the financial statements of the invested entity in accordance with the accounting policies and accounting
periods of this enterprise and recognize the investment profits or losses and other comprehensive incomes. For the
transactions between this enterprise and its joint ventures and associated entities, where the assets invested or sold
do not constitute a business, the unrealized internal transaction profits or losses shall be calculated in accordance
with proportion shared, with the proportion shared by this enterprise offset and recognize the investment profits or
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losses based thereof. However, if losses occurred in the internal transaction between the invested entities is the
impairment loss of transferred assets, they shall not be offset. When the assets invested by this enterprise to its
joint ventures or associated entities constitute a business, and the investing party obtains long-term equity but
without control power, the fair value of the invested business shall be recognized as the initial investment cost of
the additional long-term equity investment. The total difference between the original investment cost and the book
face of the invested business shall be recorded into the profits or losses of the current period. If the assets
purchased from the joint ventures or associated entities constitute a business, this enterprise shall account for the
business in accordance with this enterprise Accounting Standard No. 20 - Business Combinations, with the total
profits or losses associated with the transaction recognized.
The Company bears the net losses of its invested business to the limit of the book value of its long-term equity
investment and other long-term equity that in real terms constitutes investment on the business. For additional loss
of its invested business, if the Company is obligated to undertake, it shall be recognized as estimated liabilities
accordingly and recorded in current investment losses. If the invested business earns profits afterwards, the
Company shall reinstate and recognize its share of gains after compensating its unrecognized share of losses.
③ Purchase of minority interest
While compiling consolidated financial statements, the Company adjusts its capital reserve in terms of the
difference between the increase of long-term equity investments due to purchase of minority interest and its share
of the subsidiaries’ net assets since the purchase (or combination) date or dates. If its capital reserve is not
sufficient to write down the difference, then the Company adjusts its retained income.
④ Disposal of long-term equity investment
In consolidated financial statements, the Company records in shareholders’ equity the difference between partial
disposals of its long-term equity investments in its subsidiaries and its share of the subsidiaries’ net assets if it
does not lose control of the subsidiaries; and if such partial disposals result in loss of its control of the subsidiaries,
the difference shall be treated in accordance with the accounting policies related and specified in “Compiling
Principles for Consolidated Financial Statements”. ( Please refer to (2) in Note 3.6 )
For disposals of long-term equity investments under other circumstances, the difference between the book value
and the actual received consideration is recorded in current profit and loss.
For the long-term equity investments calculated by equity method, the same method applies to the remaining
equity after disposal. Meanwhile, the other comprehensive gains originally recorded in shareholders’ equity is
treated pro rata by the same method how the invested businesses handle the accounts while directly disposing the
related assets or liabilities. The investor recognizes the ownership interest due to equity changes except net profit
and loss, other comprehensive gains and profit distribution, and carries it over pro rata to current profit and loss.
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For long-term equity investments calculated by costs method, the same method applies to the remaining equity
after disposal. Other comprehensive gains calculated and recognized by equity method or recognition and
measurement principles for financial instruments before the Company obtains control of the invested businesses
are treated on the same basis that the invested businesses directly dispose the related assets or liabilities, and it
will be carried over pro rata to current profit and loss; and among the invested businesses’ net assets that are
calculated and recognized by equity method are all other equity changes than net profit and loss, other
comprehensive gains and profit distribution carried over pro rata to current profit and loss.
For disposals of long-term investment equity resulting in loss of control over the invested businesses, when
compiling individual financial statements, the Company changes to adopt equity method to calculate the
remaining equity that is still sufficient to exert joint control or significant influence, and to make adjustments as
since it was acquired; and if the remaining equity is not sufficient, it will be handled in accordance with the
relevant recognition and measurement principles for financial instruments and the difference between its fair value
and book value will be recorded in current profit and loss since the Company loses control of the invested
businesses. For other comprehensive gains recognized by equity method or recognition and measurement
principles for financial instruments before the Company obtains control over the invested businesses, the
Company adopts the same basis to handle the accounts as the invested businesses directly dispose the related
assets or liabilities, and among the invested businesses’ net assets that are calculated and recognized by equity
method are all other equity changes than net profit and loss, other comprehensive gains and profit distribution
carried over pro rata to current profit and loss. For the remaining equity calculated by equity method, other
comprehensive gains and other ownership interests will be carried over pro rata while for those treated in
accordance with the recognition and measurement principles for financial instruments, other comprehensive gains
and other ownership interests will be carrier over entirely.
Under the circumstances that the Company loses joint control over or has no significant influence on the invested
businesses due to partial equity disposal, the remaining equity changes to be calculated in accordance with the
recognition and measurement principles for financial instruments, and the difference between its fair value on the
date that the Company loses the joint control and significant influence and the book value is recorded in current
profit and loss. For other comprehensive gains recognized due to calculation of the original equity investments by
equity method, the Company adopts the equity method no longer but the same basis to handle the accounts as the
invested businesses directly dispose the related assets or liabilities while carrying over to current profit and loss all
the ownership interest recognized due to other equity changes than net profit and loss, other comprehensive gains
and profit distribution.
If the Company gradually loses control of a subsidiary through multiple transactions, which is a package deal as a
whole, then all these transactions will be treated as control losing equity disposal, and before loss of control, the
difference between each transaction consideration and the book value of the corresponding long-term equity
investment is recognized as other comprehensive gains and in the end, carried over to current profit and loss upon
loss of control.
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23. Investment property
The measurement mode of investment property
The measurement by the cost method
Depreciation or amortization method
Investment properties are properties to earn rentals or for capital appreciation or both. Examples include land
leased out under operating leases, land held for long-term capital appreciation, buildings leased out under
operating leases, (including buildings that have been constructed or developed for future lease out under operating
leases, and buildings that are being constructed or developed for future lease out under operating leases).
The Company makes initial measurement at the costs that the properties is acquired and records as part of the property costs the
subsequent expenses that could bring economic benefit inflows and be measured reliably while other subsequent expenses as part of
current profit and loss. Such properties are depreciated or amortized in accordance with the relevant regulations for fixed assets or
intangible assets.
24. Fixed assets
(1) Recognition criteria for fixed assets
Fixed assets are tangible assets that are held for use in the production or supply of goods or services, for
rental to others, or for administrative purposes, and have useful lives of more than one accounting year.
A fixed asset is recognized only when it is probable that economic benefits associated with the asset will flow to
the Company and the cost of the asset can be measured reliably. Fixed assets are initially measured at cost.
（2）Depreciation method
The method for
Category Expected useful life Estimated residual value Depreciation
depreciation
Buildings and
Straight-line method 25-35 3 2.77-3.88
constructions
Straight-line method 7-15 3 6.47-13.86
Machinery equipment
Transportation
Straight-line method 8-10 3 9.70-12.13
equipment
Other equipment Straight-line method 5-10 3 9.70-19.40
（3）Recognition basis, pricing and depreciation method of fixed assets by finance lease
Fixed assets leased by the Company are recognized as financing leased fixed assets when they meet one or
more of the following criteria:
①At the end of the lease term, ownership of the leased assets is transferred to the Company.
②The Company has the option to purchase leased assets, and the contracted purchase price is expected to be
well below the fair value of the leased assets at the time of exercise of the option, So it can be reasonably
certain that the Company will exercise this option on the date of commencement of the lease.
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③Even if ownership of the assets is not transferred, the lease term accounts for the majority of the useful life
of the leased assets.
④The present value of the minimum lease payment of the Company at the date of commencement of the
lease is almost equivalent to the fair value of the leased assets on the date of commencement of the lease.
⑤The leased assets are of a special nature, if no major modifications are made, only the company can use
them.
Fixed assets from financial leasing are depreciated during the useful life if it is reasonable to determine
that the ownership could be obtained upon lease expiration; otherwise, the Company should choose the
shorter of the lease period and the remaining useful life to depreciate the assets.
25 .Projects under construction
The costs of construction in progress include all necessary project expenditures, the borrowing expenses that
should be capitalized before the works reaches the expected usable status and other relevant expenses.
Construction in progress changes to fixed assets when it reaches the expected usable status.
26. Borrowing expenses
Borrowing expenses include interest, amortization of discount or premium, auxiliary expenses, translation
differences arising from borrowings in foreign currency etc. The Company starts to capitalize the borrowing
expenses in direct connection to purchase, construction or production of the assets that meet capitalization
conditions when there are assets expenditures and borrowing expenses incurred and/or the Company starts all the
necessary events to purchase, construct or produce such assets till the assets can be used and sold. Other
borrowing expenses are recognized as costs when incurred.
The Company capitalizes the actual interest expense incurred by use of special borrowings, minus the interest
income from the remaining borrowing funds in bank or any investment income earned from the interim
investment of those borrowings; and for general borrowings, the amount to capitalize is the weighted average of
the accumulated assets expenditures in exceed of the special borrowings times the capitalization rate of the used
general borrowings, which is determined by the weighted average interest rate of the general borrowings.
During capitalization, all translation differences of special borrowings in foreign currency should be capitalized
while those of general borrowings in foreign currency are recorded in current profit and loss.
The qualifying assets to be capitalized are fixed assets, investment properties and inventories which need to be
acquired, constructed or produced through a long period of time, in order to become ready for its intended use or
sale.
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The Company stops capitalization of borrowing costs if an abnormal interruption more than 3 consecutive months
occurs during purchase, construction or production of the assets that are eligible to capitalization till all those
restart.
For the special loan borrowed for the purchase or production of assets eligible for capitalization, the amount of the
borrowing costs incurred in the current period of a special loan, minus the amount of interest earned in the bank
on unused borrowed funds or the return on the investment obtained by a temporary investment, to determine the
amount of capitalization of borrowing costs.
If general borrowings are used to purchase, construct or produce the capitalization eligible assets, the borrowing
cost to capitalize is the weighted average of the accumulated assets expenditures in exceed of the special
borrowings times the capitalization rate of the used general borrowings, which is determined by the weighted
average interest rate of the general borrowings.
27. Biological assets
28. Oil-gas assets
29. Assets of the right to use
30. Intangible assets
1 Pricing method, useful life and impairment test
The Company makes initial measurements on intangible assets in terms of the costs and determines the useful life
when obtaining the assets. For intangible assets of a limited useful life, from the time the assets are available for
use, the Company adopts the amortization method that reflects realization of the expected economic benefits, or
the straight-line amortization method if unable reliably to determine how to realize the expected economic
benefits; and no amortization are made for intangible assets of an unlimited useful life.
At the end of each year, the Company reviews the useful life and amortization methods of intangible assets of a
limited useful life and makes adjustments and accounting treatment if different from the previous estimates.
For the intangible assets that are estimated to produce no more economic benefits in the future, the Company
records the book value of such assets all in current profit and loss.
（2）Research and development expenses
The expenditures for internal research and development projects of an enterprise shall be classified into research
expenditures and development expenditures.
The research expenditures shall be recorded into the profit or loss for the current period.
The development expenditures shall be capitalized when they satisfy the following conditions simultaneously: It is
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feasible technically to finish intangible assets for use or sale; Having the intention to complete the intangible asset
and use or sell it; 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 for the intangible assets will be used
internally; 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; Expenditures attributable to
the development phase of the intangible assets can be measured reliably. Development expenditures that do not
meet the above conditions are included in the profits and losses of the current period.
After meeting the above conditions, the corresponding projects of the company study their technical feasibility
and economic feasibility, and enter the development stage after the formation of the project.
31 Impairment of the long-term assets
On balance sheet dates, the Company determines whether there are impairments occurring to fixed assets,
construction in progress, intangible assets of a limited life, investment properties measured in the cost model as
well as non-current and non-financial assets like the long-term equity investments on subsidiaries, joint ventures
and associated companies. If impaired, the Company estimates the retrievable amount and conducts an
impairment test. Impairment tests need to be done on goodwill, intangible assets of an unlimited life and the
intangible assets that are not yet to reach the usable status, no matter they are impaired or not.
If the impairment test result shows the retrievable amount lower than the book value, impairment provisions will
be set aside and recorded in impairment loss. The retrievable amount is the fair value of the assets minus the
disposal expenses or the present value of the estimated future cash flows of the assets, whichever is higher. The
fair value of the assets is determined in terms of the price specified in the selling agreement that is fair trade; if no
selling agreement but there is an active assets market existing, it is determined in terms of the buyer’s offer; and if
no selling agreement and active assets market, the fair value can be estimated based on the best available
information. Disposal expenses include all related legal charges, taxes, delivery fees or the direct expenses
incurred to have the assets reach the usable or sellable status. To determine the present value of the estimated
future cash flows from the assets, the Company chooses an appropriate discount rate in the light of the continual
usage of the assets and the estimated future cash flows occurring upon final disposal. Impairment provisions of the
assets are calculated and recognized on the basis of individual assets. If unable to estimate the retrievable amount
of individual assets, the Company determines the amount by reference to the asset group that includes the
individual assets. Asset groups are the minimum assets combination that independently produces cash inflows.
For the goodwill separately listed in financial statements, while an impairment test being conducted, the book
value is apportioned to the asset groups or combination of asset groups expected to benefit from the synergy
effects arising from business combinations. The Company recognizes impairment losses when the test result
shows that the retrievable amount of the asset groups or combination of asset groups is lower than their book
values. The impairment loss will be first used to write down the book values of the asset groups or combination of
asset groups and then those of other assets pro rata.
Once the aforesaid impairment losses are recognized, they cannot be reinstated in the future.
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32. Long-term amortizable expenses
Long-term unamortized expenses are valued at the actual costs and amortized at average in an estimated beneficial
period of time. If those cannot benefit the Company in future accounting periods, the remaining will be recorded
all in current profit and loss.
33.Constract Liabilities
34. Employee compensation
1.Accounting treatment of short-term remuneration
Employee compensation refers to all kinds of rewards or compensations given in return for employees’ services or
employment termination. It includes short-term compensation, post-employment benefits, demission benefit.
Short-term compensation includes payroll, bonus, allowances and subsidies, employee welfare, medical insurance,
injury insurance and birth insurance, housing fund, labor union and employee training expenditures, non-monetary
benefits and other short-term rewards. It recognizes as liabilities the actual short-term compensation incurred
during the accounting period that the employees provide their services and records in current profit and loss or the
relevant asset costs. Non-monetary benefits are measured at the fair value.
2.Accounting treatment of benefits paid after departure
Post-service benefits mainly include defined contribution plan and defined benefit plan. The defined contribution
plan mainly includes basic pension, unemployment insurance etc. The corresponding contributions are recorded in
the relevant asset costs or current profit and loss when incurred.
3.Accounting treatment of dismissal welfare
When terminating labor relations before expiration of contract, or layoffs with compensations, and the Company
cannot terminate the labor relations unilaterally or reduce the demission welfare, remuneration and liabilities
produced from the demission welfare should be determined and included in current profits and losses when
determining the costs of demission welfare and recombination. However, demission welfare not fully paid within
12 months after annual Reporting Period should be handled the same as other long-term employees’ payrolls.
4 .Accounting treatment of other long term employee benefits
The inside employee retirement plan is treated by adopting the same principle with the above demission welfare.
The Company would recorded the salary and the social security insurance fees paid and so on from the
employee’s service terminative date to normal retirement date into current profits and losses (demission welfare)
under the condition that they meet the recognition conditions of Retained Earnings.
35. Lease liabilities
36. Estimated Liabilities
The Company recognizes obligations relating to contingent events as estimated liabilities if they meet the
following conditions:
A. That obligation is a present obligation of the enterprise;
B. It is probable that an outflow of economic benefits from the enterprise will be required to settle the obligation;
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C. A reliable estimate can be made of the amount of the obligation.
The estimated liabilities is initially measured on the basis of the best estimate of the expenditure required to meet
the relevant current obligations, taking into account factors such as risks, uncertainties and the time value of the
currency associated with contingencies. Where the time value of the currency has a significant impact, the best
estimate is determined by discounting the relevant future cash outflows.
When all or some of the expenses necessary for the liquidation of an estimated liabilities of an enterprise is
expected to be compensated by a third party, the compensation should be separately recognized as an asset only
when it is virtually certain that the reimbursement will be obtained. Besides, the amount recognized for the
reimbursement should not exceed the book value of the estimated liabilities.
37.Share-based Payment
（1）Types of Share-based Payment
It is divided into equity-settled share-based payment and cash-settled share-based payment.
（2）Recognition of Equity Instruments’ Fair Value
For the granted equity instruments that there is an active market for, e.g. options, the Company determines the fair
value by reference to the quotation prevailing in the active market. For those that there is no active market for, the
options pricing model is adopted to determine the fair value.
（3）Recognition Basis for the Best Estimates on Exercisable Equity Instruments
On each balance sheet date during the vesting period, the Company makes best estimates based on the latest
number changes of its employees and adjusts the quantity of estimated exercisable equity. The final quantity of
estimated exercisable equity instruments should be consistent with that of the actual ones on vesting dates.
38 . Other financial instruments such as preferred shares and perpetual capital securities
39.Revenues
Whether the company needs to comply with the disclosure requirements of the particular industry
No
Whether implemented new revenue guidelines?
√ Yes □No
Accounting policies used for revenue recognition and measurement
（1）Merchandise sales
After transferring the significant risks and compensation of the merchandise ownership to the buyer, the company
no longer holds the rights to manage and have control over the merchandise, and recognizes the revenue if the
economic benefits arising from the related transactions can flow into the Company and all the costs and revenues
related to such product sales can be measured reliably.
（2）The concrete principle of Major income
94
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
The sales revenue of Chongqing Jianshe Automobile A/C is divided into three categories according to customer
groups:
① Big customer. The mode of cooperation is mainly according to the customer's production needs; the company
will ship the goods to the designated or cooperative tripartite logistics company, which is responsible for the
warehousing and distribution services. Each month, the customer would issue a hang account notice according to
the actual consumption of the production plan, sales clerk issued a letter of notice for invoices according to the
customer's bill hang notice combined with customer consumption, contract unit price and hang account notice, etc.,
The finance department shall issue invoices to confirm the sales income.
② Customers - Delivery after payment. Sales personnel confirm upon receipt of payment by the customer, in
accordance with customer requirements and related information of bill, the contract of sale price and customer
demand quantity shipment, and issue a letter of notice, then the finance department completes the transaction.
③ Customers - After-sales market. Sales personnel deliver the goods to the customer according to the contract
and customer demand. After arrival time node, sales personnel issues a letter of notice according to the unit
contract price and shipment quantity, and the finance department issues invoices to confirm the sales revenue.
Different business models of similar businesses lead to differences in revenue recognition accounting policies.
40. Governmental subsidy
Government subsidy means the Company gratuitously obtains monetary assets or non-monetary assets from the
government, not including the capital into which the government invests as an investor who has relevant
ownership interest. Government subsidies are divided into the subsidy related to assets and the other related to
earnings. Government subsidies related to monetary assets will be measured according to the amount received or
the amount receivable. Those which related to non-monetary assets will be measured according to fair value; For
any fair value which cannot be reliable to be obtained, the assets will be measured according to the nominal
amount, and the one measured according to the nominal amount will be directly counted into the current profits
and losses.
Government subsidies can only be recognized when the company is able to meet the conditions attached to
government subsidies and is able to receive government subsidies.
Government subsidies are divided into asset-related government subsidies and income-related government
subsidies. Government subsidies related to assets refer to government subsidies obtained by companies for the
purchase, construction or other formation of long-term assets. Government subsidies related to income refer to
government subsidies in addition to those related to assets.
The government grants pertinent to assets are recognized as deferred income and are credited to profit or loss by
stages in accordance with a reasonable and systematic method within the useful life of the pertinent assets. If the
pertinent assets are sold, transferred, scrapped or destroyed before the end of their useful life, the non-allocated
pertinent deferred income balance shall be transferred to the profit or loss of the period of assets disposal, and the
recognized government grant needs to be refunded, then it shall write down the carrying amount of the relevant
deferred income and the excess part shall be included in the current profit and loss. The government grants
95
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
pertinent to income that are used to compensate the relevant costs or losses of the subsequent period of the
enterprise are recognized as deferred income and are credited to the current profit or loss for the period when the
relevant costs, expenses or losses are recognized; those government grants used for compensating the related
expenses or losses incurred to the enterprise shall be directly included in the current profits and losses.
For the government subsidy which includes both the assets related part and the income related part, the different
parts are treated separately; if it is difficult to distinguish, the whole is classified as the government subsidy related
to the income.
Government subsidies related to the daily activities of the company shall be included in other earnings in
accordance with the substance of the economic business. Government subsidies not related to the daily activities
of the company shall be included in the non-operating income and expenditure.
41.Deferred income tax assets and deferred income tax liabilities
The balance between the book value and the tax basis of some items of assets and liabilities, as well as the
temporary differences issued as the balance between the book value and the tax basis of the tax basis items that
unrecognized as assets and liabilities but can be determined as per the provisions of tax law, which shall be
determined as the deferred income tax assets and the deferred income tax liabilities in accordance with the balance
sheet debt law.
Taxable temporary differences related to the initial recognition of goodwill, as well as the initial recognition of an
asset or liability in a transaction that neither belongs to a business consolidation, nor affects the accounting profit
and taxable income (or deductible loss) when it happens, the relevant deferred income tax liabilities shall not be
recognized. In addition, as for taxable temporary differences associated with investments in subsidiaries,
associates and joint ventures, if the Company could control the reverse time of such differences and such
differences cannot be reversed in the foreseeable future, the relevant deferred income tax liabilities also shall not
be recognized. Apart from the above-mentioned exceptional cases, the Company recognizes all other deferred
income tax liabilities caused by taxable temporary differences.
Deductible temporary differences related to the initial recognition of an asset or liability in a transaction that
neither belongs to a business consolidation, nor affects the accounting profit and taxable income (or deductible
loss) when it happens, the relevant deferred income tax assets shall not be recognized. In addition, as for
deductible temporary differences associated with investments in subsidiaries, associates and joint ventures, if such
differences cannot be reversed in the foreseeable future or are not likely to obtain the taxable income to deduct the
deductible temporary differences of the taxable income, the relevant deferred income tax assets shall not be
recognized. Apart from the above-mentioned exceptional cases, the Company recognizes other deferred income
tax assets caused by deductible temporary differences within the limit of likely obtained taxable income that can
be used to deduct the deductible temporary differences of the taxable income.
The corresponding deferred tax assets of deductible loss and tax reduction that can be carried forward during
subsequent years shall be recognized within the limit of likely obtained future taxable income that can be used to
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
deduct the deductible loss and tax reduction.
As per the provisions of tax law, the deferred income tax assets and deferred income tax liabilities shall be
measured at the applicable tax rates used during the period of expectation recovery of relevant assets or pay-off
relevant liabilities at the balance sheet date.
The book value of the deferred income tax assets shall be re-checked at the balance sheet date. The book value of
the deferred income tax assets shall be written-down if it is unlikely to obtain sufficient taxable income in the
future to deduct the benefit of the deferred tax assets and the written-down amount shall be carried forward if it is
likely to obtain sufficient taxable income.
42.Operational leasing
1.Accounting treatment of operating lease
The Company will transfer substantially all the risks and rewards of ownership of an asset lease are recognized as
a finance lease. Other forms of lease besides financial leasing are considered as operating leasing.
At the commencement of the lease term, an amount equal to the lower of the fair value of the leased asset and the
present value of the minimum lease payments shall be regarded as the recorded value of the leased assets and an
amount equal to the minimum lease payments shall be recognized as a long-term recorded value of the leased
assets of payables. The balance between the recorded amount of the leased asset and the recorded amount of the
payable shall be accounted for as unrecognized finance charge.
Lease payments under an operating lease shall be accounted into the relevant asset cost or current profit or loss
over the lease term on a straight-line basis.
2.Accounting treatment of financing lease
43. Other significant accounting policies and estimates
（1）Discontinued Operation
Discontinued operation means enterprises which can meet one of the following conditions and can be
distinguished into a constituent part separately, and this part has been disposed or divided into a on-sales category.
① This constituent part represents an independent main business or a separate main business area;
② This part is a one of the related parts which proposes to dispose an independent main business or an
independent main business area.
③This part is a subsidiary acquired from being specifically for reselling.
For accounting treatment methods for discontinued operation, see the relevant descriptions at Article 13-
Possession of On-Sales Asset in Note III
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
44.Change of main accounting policies and estimations
(1)Change of main accounting policies
□ Applicable √ Not applicable
(2) Change of main accounting estimations
□ Applicable √ Not applicable
（3）Adjustments to the Financial Statements at the Beginning of the First Execution Year of any New Standards
Governing Financial Instruments, Revenue or Leases
□ Applicable √ Not applicable
（4）Retrospective Restatement of Previous Comparative Data due to the First Execution of any New Standards
Governing Financial Instruments or Leases
□ Applicable √ Not applicable
45.Other
VI. Taxation
1. Main categories and rates of taxes
Class of tax Tax basis Tax rate
Calculated on tax law from selling goods
and taxable services based on the
VAT calculation of output tax, after deduction of 17、16、11、10、9、6
input tax deductibility of the current
period, the balance part of VAT payable
Consumption tax Revenue of taxable consumables 3
Value-added tax, operating tax and
City maintenance and construction tax 7
consumption tax paid
Enterprise income tax Taxable income 15
The disclosure on the rate of income tax of taxpayers in different enterprises is stated below
Name of Taxpayer Rate of Income Tax
2.Preferential tax treatment
The company is subject to the enterprise income tax rate of 15% in 2018, as a result of the preferential enterprise
income tax policies to promote the large-scale development of the western region in accordance with the
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Announcement on Issues of Enterprise Income Tax concerning In-depth Implementation of Western Region
Large-scale Development Strategy (Announcement of the State Administration of Taxation [2012] No.12).
Chongqing Jianshe Automobile A/C Co., Ltd. by high and new technology enterprise qualification on December 5,
2016, acquire the qualification of new high-tech enterprises, Certificate No. GR201651100400, valid for three
years. The company calculates and pay enterprise income tax shall be levied at the reduced tax rate 15% from
2017 to 2019.
3.Other
VII. Notes on major items in consolidated financial statements of the Company
1. Monetary funds
In RMB
Items Closing balance Opening balance
Bank deposits 20,466,791.79 72,551,130.34
Other cash and cash equivalents 154,616,698.79 279,352,856.84
Total 175,083,490.58 351,903,987.18
Other notes
2. Transactional financial assets
In RMB
Items Closing balance Opening balance
Of which ：
Of which：
Other notes
3. Derivative financial assets
In RMB
Items Closing balance Opening balance
Other notes
4. Notes receivable
(1) Notes receivable listed by category
In RMB
Items Closing balance Opening balance
99
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Bank acceptance bill 34,228,387.65 24,252,405.38
Trade acceptance bill 221,000.00 3,770,000.00
Total 34,449,387.65 28,022,405.38
In RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Book Book
Proportio Proportio Proportio Proportio
Amount Amount value Amount Amount value
n% n% n% n%
Including：
Including：
Accrual of bad debt provision by single item:
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion Reason
Accrual of bad debt provision by portfolio:
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion
Notes：
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
□ Applicable √ Not applicable
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Category Opening balance Reversed or Closing balance
Accrual Write-off
collected amount
Of which the significant actual write-off accounts receivable:
□ Applicable √ Not applicable
（3）Notes receivable pledged by the Company at the end of the period
In RMB
Items Pledged amount
100
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
（4）Notes receivable which had endorsed by the Company or had discounted and had not due on the balance
sheet date at the period-end
In RMB
Amount of recognition termination at the Amount of not terminated recognition at
Items
period-end the period-end
Bank acceptance bill 999,488,892.11
Trade acceptance bill 328,000.00
Total 999,816,892.11
（5）Notes transferred to accounts receivable because drawer of the notes fails to executed the contract or
agreement
In RMB
Amount of the notes transferred to account receivable at the
Items
period-end
Other notes
（6） The actual write-off accounts receivable
In RMB
Items Amount
Of which the significant actual write-off accounts receivable:
In RMB
Whether occurred
Name Nature Amount Reason Process from the related
transactions
Notes of the write-off the accounts receivable:
5. Accounts receivable
(1) Accounts receivable disclosed by category
In RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Book
Proportio Proportio Proportio Proportio Book value
Amount Amount value Amount Amount
n% n% n% n%
Accrual of bad debt 23,815,4 8.70% 23,815,4 100.00% 23,822,67 7.76% 23,822,67 100.00%
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
provision by single 66.24 66.24 1.78 1.78
item
Including：
Accrual of bad debt
249,829, 8,454,80 241,375,1 283,108,7 8,166,821 274,941,89
provision by 91.30% 3.38% 92.24% 2.88%
936.56 4.66 31.90 17.23 .82 5.41
portfolio
Including：
273,645, 32,270,2 241,375,1 306,931,3 31,989,49 274,941,89
Total 100.00% 100.00%
402.80 70.90 31.90 89.01 3.60 5.41
Accrual of bad debt provision by single item:
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion Reason
Chongqing Huansu Auto Individually determined
12,723,992.31 12,723,992.31 100.00%
Parts Co.,Ltd. and unable to recover
Chongqing Bisu Yunbo
Individually determined
Power Technology 5,396,775.35 5,396,775.35 100.00%
and unable to recover
Co.,Ltd.
Hafei Automobile co., Individually determined
3,999,944.43 3,999,944.43 100.00%
Ltd. and unable to recover
Chongqing Kaite Power Individually determined
1,481,654.59 1,481,654.59 100.00%
Technology Co.,Ltd. and unable to recover
Guangqi Jiao Auto Individually determined
75,821.20 75,821.20 100.00%
Co.,Ltd..Luqiao Branch and unable to recover
Guangqi Jiao Auto Individually determined
67,998.51 67,998.51 100.00%
Co.,Ltd. and unable to recover
Dongying Jiao Auto Individually determined
48,579.85 48,579.85 100.00%
Co.,Ltd. and unable to recover
Beiqi Yinxiang Auto Individually determined
20,700.00 20,700.00 100.00%
Co.,Ltd. and unable to recover
Total 23,815,466.24 23,815,466.24 -- --
Accrual of bad debt provision by single item:
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion Reason
Accrual of bad debt provision by portfolio:
In RMB
Name Closing balance
102
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Book balance Bad debt provision Proportion
Notes：
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
□ Applicable √ Not applicable
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year（Including 1 year） 238,838,915.04
1-2 years 1,085,940.74
2-3 years 962,466.00
3-4 years 2,115,568.58
4-5 years 6,153.00
Over 5 years 6,820,893.20
Total 249,829,936.56
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Category Opening balance Reversed or Closing balance
Accural Write-off
collected amount
loss on bad debt 31,989,493.60 280,777.28 32,270,270.88
Total 31,989,493.60 280,777.28 32,270,270.88
Of which the significant amount of the reversed or collected part during the reporting period
In RMB
Items Reversed or collected amount Method
(3) The actual write-off accounts receivable
In RMB
Items Amount
Of which the significant actual write-off accounts receivable:
In RMB
Name Nature Amount Reason Process Whether occurred
103
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
from the related
transactions
Notes of the write-off the accounts receivable:
(4) Top 5 of the closing balance of the accounts receivable colleted according to the arrears party
Proportion of Amount of
Amount of
Company Name Aging total accounts ending balance
ending balance
receivable % for bad debts
PSA group 134,649,333.42 Within 6 months 49.75%
Zhejiang Yuanjing Auto 22,258,764.62 Within 6 months 8.22%
Parts Co.,Ltd.
Chongqing Yongchuan 17,801,683.09 Within 6 months 6.57%
Great Wall Auto Parts Co.,
Ltd.
Chongqing Huansu Auto 12,723,992.31 1-2 years 4.70% 12,723,992.31
Parts Co.,Ltd.
Sunlong Automobile Co., 9,526,072.50 Within 1 year 3.52% 55,841.39
Ltd.
Total 196,959,845.94 72.76% 12,779,833.70
(5) Account receivable which terminate the recognition owning to the transfer of the financial assets
(6) The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
Other notes:
6. Financing of receivables
In RMB
Items Closing balance Opening balance
Changes in the current period of receivables financing and fair value
□ Applicable √ Not applicable
Relevant information of the financing provision for bad debts will be disclosed with reference to the disclosure
method of other receivables if the provision for bad debts of bills receivable is accrued according to the general
model of expected credit loss:
□ Applicable √ Not applicable
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Other notes:
7.Prepayments
(1) List by aging analysis:
In RMB
Closing balance Opening balance
Aging
Amount Proportion % Amount Proportion %
Within 1 year 13,231,184.03 14,020,455.63 88.75%
1-2 years 587,652.36 1,669,010.12 10.56%
2-3 years 44,159.59 44,159.59 0.28%
Over 3 years 64,034.80 64,034.80 0.41%
Total 13,927,030.78 -- 15,797,660.14 --
Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time
(2) Top 5 of the closing balance of the prepayment collected according to the prepayment target
Proportion % of
Relations with the Reason for
Company Name Amount total prepaid Aging
Company non-settle accounts
accounts
Huayang（Shanghai） 2,764,263.61 19．84% non-arrival
Non-related party Within 1 year
trade Co.,Ltd. settlement period
Suzhou Ruichang 2,745,740.00 19.71% non-arrival
Electromechanical Non-related party Within 1 year
Engineering Co.,Ltd. settlement period
Chongqing Bangzhou 1,587,430.00 11.39% non-arrival
Import and Export Non-related party Within 1 year
Trade Co., Ltd. settlement period
Zhongming 1,421,720.28 10.20%
Construction Group
non-arrival
Non-related party Within 1 year
settlement period
Co., Ltd.
Jithun Machinery 968,128.21 6.95%
Spindle Trading
non-arrival
Non-related party Within 1 year
settlement period
(Shanghai) Co., Ltd
Total 9,487,282.10 68.09%
Other notes:
8. Other accounts receivable
In RMB
Items Closing balance Opening balance
Other accounts receivable 6,010,600.52 2,414,406.24
Total 6,010,600.52 2,414,406.24
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
（1）Interest receivable
1) Category of interest receivable
In RMB
Items Closing balance Opening balance
2) Significant overdue interest
Whether occurred
Borrower Closing balance Overdue time Reason impairment and its
judgment basis
Other notes：
3）Bad-debt provision
□ Applicable √ Not applicable
(2)Dividend receivable
1) Dividend receivable
In RMB
Items Closing balance Opening balance
2) Significant dividend receivable aged over 1 year
In RMB
Whether occurred
Items Closing balance Aging Reason impairment and its
judgment basis
Other notes：
3）Bad-debt provision
□ Applicable √ Not applicable
Other notes：
（3） Other accounts receivable
1) Other accounts receivable classified by the nature of accounts
In RMB
Nature Closing book balance Opening book balance
106
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Petty cash and borrowings with small
5,407,857.86 2,497,623.23
amount
Fully provided provision for bad debts
regarding long-term receivables and 5,083,333.94 5,083,333.94
payables
Total 10,491,191.80 7,580,957.17
2）Bad-debt provision
In RMB
Stage 1 Stage 2 Stage 3
Expected credit Expected credit losses for
Bad Debt Reserves Expected credit loss over Total
losses over the next the entire duration (credit
life (no credit impairment)
12 months impairment occurred)
Balance as at January 1,
5,166,550.93 5,166,550.93
2019
Balance as at January 1,
—— —— —— ——
2019 in current
Banlance as at June
5,166,550.93 5,166,550.93
20,2019
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √Not applicable
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year(Including 1 year） 6,126,373.56
1-2 years 75,563.85
3-4 years 55,045.80
Over 5 years 4,234,208.59
Total 10,491,191.80
3) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Category Opening balance Reversed or collected Closing balance
Accrual
amount
loss on bad debt 5,166,550.93 5,166,550.93
Total 5,166,550.93 5,166,550.93
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Of which the significant amount of the reversed or collected part during the reporting period
In RMB
Items Reversed or collected amount Method
4) The actual write-off accounts receivable
In RMB
Items Amount
Of which the significant actual write-off accounts receivable:
In RMB
Whether occurred
Name Nature Amount Reason Process from the related
transactions
Notes of the write-off other accounts receivable:
5) Top 5 of the closing balance of the other accounts receivable colleted according to the arrears party
In RMB
Proportion of the
total year end Closing balance of
Name Nature Closing balance Aging
balance of the bad debt provision
accounts receivable
Shenzhen Jianshe
Other 3,013,664.00 Over 5 years 28.73% 3,013,664.00
Motorcycle Co.,Ltd.
Ningbo Jianshe
Other 692,035.31 Over 5 years 6.60% 692,035.31
Chongqing Office
Chongqing
Jiulongpo District
Urban and Rural Other 488,000.00 Over 5 years 4.65% 488,000.00
Development
Commission.
Ningbo Jianshe
Other 329,628.73 Over 5 years 3.14% 329,628.73
Motorcycle Co., Ltd.
Chongqing Huicai
Steel Structure Other 209,000.00 Within 3 years 1.99% 209,000.00
Co.,Ltd.
Total -- 4,732,328.04 -- 45.11% 4,732,328.04
6) Accounts receivable involved with government subsidies
In RMB
108
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Estimated received time,
Name Project of government Opening balance Closing balance
amount and basis
7) Other account receivable which terminate the recognition owning to the transfer of the financial assets
8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts
receivable
Other notes:
9. Inventories
Whether implemented new revenue guidelines?
√ Yes □ Not
（1）Category of Inventory
In RMB
Closing book balance Opening book balance
Items Provision for Provision for
Book balance inventory Book value Book balance inventory Book value
impairment impairment
Raw materials 35,346,555.57 35,346,555.57 41,509,342.09 41,509,342.09
Goods in progress 13,338,022.39 13,338,022.39 6,267,556.55 6,267,556.55
Stock goods 121,023,691.93 1,541,302.27 119,482,389.66 131,331,226.89 1,541,302.27 129,789,924.62
Total 169,708,269.89 1,541,302.27 168,166,967.62 179,108,125.53 1,541,302.27 177,566,823.26
Whether the company is required to comply with the "Shenzhen Stock Exchange Industry Information Disclosure
Guidelines No. 4 - listed companies engaged in seed industry, planting business" disclosure requirements
No
(2) Falling price reserves of inventory
In RMB
Increased amount Decreased amount
Items Opening balance Reverse or Closing balance
Withdrawal Other Other
write-off
Stock goods 1,541,302.27 1,541,302.27
Total 1,541,302.27 1,541,302.27
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
(3) Notes of the closing balance of the inventory which includes capitalized borrowing expenses
(4) Completed unsettled assets formed from the construction contact at the period-end
10.Contact assets
In RMB
Closing balance Opening balance
Items Provision for Provision for
Book balance inventory Book value Book balance inventory Book value
impairment impairment
Amount and reason of material change of book value of contract assets in the current period:
In RMB
Items Amount Reason
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of contract assets is accrued according to the general model of
expected credit loss:
□ Applicable √ Not applicable
Provision for impairment of contract assets in the current period
In RMB
Items Withdrawal switch back or write-off write-off Reason
Other notes:
11. Assets divided as held-to-sold
In RMB
Book balance at
Impairment Closing book Estimated Estimated
Items the end of the fair value
provision value disposal cost disposal time
period
Other notes:
12. Non-current assets due within 1 year
In RMB
Items Closing balance Opening balance
Important creditor's rights Investment/other creditor's rights investment
In RMB
Closing balance Opening balance
Creditor's rights item
Face value Contract Actual rate Expiration Face value Contract Actual rate Expiration
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
interest rate, date interest rate, date
stated rate stated rate
Other notes:
13. Other current assets
Whether implemented new revenue guidelines?
√ Yes □No
In RMB
Items Closing balance Opening balance
Tax allowance
Total
Other notes:
14. Debt investment
In RMB
Closing balance Opening balance
Items Provision for Provision for
Book balance inventory Book value Book balance inventory Book value
impairment impairment
Important creditor's rights Investment/
In RMB
Closing balance Opening balance
Contract Contract
Items Expiration Expiration
Face value interest rate, Actual rate Face value interest rate, Actual rate
date date
stated rate stated rate
Provision for bad debts
In RMB
Stage 1 Stage 2 Stage 3
Expected credit Expected credit losses for
Bad Debt Reserves Expected credit loss over Total
losses over the next the entire duration (credit
life (no credit impairment)
12 months impairment occurred)
Balance as at January 1,
—— —— —— ——
2019 in current period
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √ Not applicable
111
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Other notes:
15.Other creditor's rights investment
In RMB
Cumulative Remark
provision for
Change in
Change in losses
Opening Accrued fair value in Closing
Items Costs cumulative recognized in
balance interest the current balance
fair value other
period
consolidated
income
Important creditor's rights Investment/
In RMB
Closing balance Opening balance
Contract Contract
Items Expiration Expiration
Face value interest rate, Actual rate Face value interest rate, Actual rate
date date
stated rate stated rate
Provision for bad debts
In RMB
Stage 1 Stage 2 Stage 3
Expected credit Expected credit losses for
Bad Debt Reserves Expected credit loss over Total
losses over the next the entire duration (credit
life (no credit impairment)
12 months impairment occurred)
Balance as at January 1,
—— —— —— ——
2019 in current period
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √ Not applicable
Other notes:
16. Long-term accounts receivable
(1) List of long-term accounts receivable
In RMB
Closing balance Opening balance
Discount rate
Items Provision for Provision for
Book balance inventory Book value Book balance inventory Book value interval
impairment impairment
Provision for bad debts
In RMB
112
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Stage 1 Stage 2 Stage 3
Expected credit Expected credit losses for
Bad Debt Reserves Expected credit loss over Total
losses over the next the entire duration (credit
life (no credit impairment)
12 months impairment occurred)
Balance as at January 1,
—— —— —— ——
2019 in current period
Loss provision changes in current period, change in book balance with significant amount
□ Applicable √ Not applicable
(2) Long-term accounts receivable which terminate the recognition owning to the transfer of the financial assets
(3) The amount of the assets and liabilities formed by the transfer and the continues involvement of long-term
accounts receivable
Other notes
17. Long-term equity investment
In RMB
Increase /decrease
Closing
Profits
and losses Cash Withdraw balance
Opening Additiona Decrease on Other Closing of
bonus or al of
Investees investmen Changes
balance l in comprehe balance impairme
ts in other profits impairme Other
investmen investmen nsive
Recogniz equity announce nt
t t nt
ed under income
the equity d to issue provision provision
method
I.Joint ventures
Chongqin
g
Pingshan
83,923,46 30,193,65 -3,713,96 2,000,000 48,015,84
TK
0.57 0.00 3.83 .00 6.74
Carburett
or Co.,
Ltd.
Chongqin
g Jianshe
Hanon
Automobi 103,284,6 102,743,3 -7,077,73 198,950,1
le heat 20.88 05.30 3.94 92.24
managem
ent
system
113
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
co., Ltd.
187,208,0 102,743,3 30,193,65 -10,791,6 2,000,000 246,966,0
Subtotal
81.45 05.30 0.00 97.77 .00 38.98
II. Associates
187,208,0 102,743,3 30,193,65 -10,791,6 2,000,000 246,966,0
Total
81.45 05.30 0.00 97.77 .00 38.98
Other notes
18. Other equity instruments investment
In RMB
Items Closing balance Opening balance
Itemized disclosure of the current non - trading equity instrument investment
In RMB
Reasons for being
Amount of other measured at fair Reasons for other
comprehensive value and whose comprehensive
Recognized Recognized Accumulating
Name income changes are income
dividend income dividend income losses
transferred to included in other transferred to
retained earnings comprehensive retained earnings
income
Other notes
19.Other non-current assets
In RMB
Items Closing balance Opening balance
Other notes
20. Investment property
(1) Investment property adopted the cost measurement mode
√Applicable □ Not applicable
In RMB
Items House, Building Land use right Construction in process Total
I. Original price 66,163,724.17 66,163,724.17
1. Balance at
66,163,724.17 66,163,724.17
period-beginning
2.Increase in the current
period
114
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
(1) Purchase
(2)Inventory\Fixed
assets\ Transferred from
construction in progress
(3)Increased of
Enterprise Combination
3.Decreased amount of
15,144,960.74 15,144,960.74
the period
（1）Dispose
（2）Other out 15,144,960.74 15,144,960.74
4. Balance at period-end 51,018,763.43 51,018,763.43
II.Accumulated
amortization
1.Opening balance 20,464,730.89 20,464,730.89
2.Increased amount of
824,803.34 824,803.34
the period
(1) Withdrawal 824,803.34 824,803.34
3.Decreased amount of
4,684,402.96 4,684,402.96
the period
（1）Dispose
（2）Other out 4,684,402.96 4,684,402.96
4. Balance at
16,605,131.27 16,605,131.27
period-end
III. Impairment provision
1. Balance at
period-beginning
2.Increased amount of
the period
(1) Withdrawal
3.Decreased amount of
the period
（1）Dispose
115
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
（2）Other out
4. Balance at period-end
IV.Book value 34,413,632.16
1.Book value at period
34,413,632.16 34,413,632.16
-end
2.Book value at
45,698,993.28 45,698,993.28
period-beginning
(2) Investment property adopted fair value measurement mode
□ Applicable √Not applicable
(3) Details of investment property failed to accomplish certification of property
In RMB
Items Book value Reason
Other notes
21. Fixed assets
In RMB
Items Closing balance Opening balance
Fixed assets 333,238,183.59 341,863,883.57
Total 333,238,183.59 341,863,883.57
(1) List of long-term accounts receivable
In RMB
Items House and Buildings Total
I. Original book
value：
1. Opening balance 144,534,304.17 621,578,230.38 15,250,817.92 7,750,397.67 789,113,750.14
2.Increased amount
0.00 0.00 0.00 0.00 0.00
of the period
（1）Purchase 0.00 273,031.28 155,602.63 28,358.62 456,992.53
（2）Transfer of
project under 1,515,969.62 3,552,982.27 0.00 0.00 5,068,951.89
Construction
116
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
（3）Increased from
0.00 0.00 0.00 0.00 0.00
enterprise merger
（4）Investment
15,144,960.75 0.00 0.00 0.00 15,144,960.75
property transfer
3.Decreased amount
0.00 0.00 0.00 0.00 0.00
of the period
（1）Disposal or
0.00 15,798,770.59 0.00 389,136.15 16,187,906.74
scrap
0.00 0.00 0.00 0.00
4.Closing balance 161,195,234.54 609,605,473.34 15,406,420.55 7,389,620.14 793,596,748.57
II. Accumulative
0.00 0.00 0.00 0.00 0.00
depreciation
1.Opening balance 44,739,651.61 363,248,451.36 12,373,717.17 7,098,431.89 427,460,252.03
2.Increased amount
0.00 0.00 0.00 0.00 0.00
of the period
（1）Withdrawal 2,448,026.14 11,996,897.92 586,792.81 50,383.93 15,082,100.80
（2）Investment
4,684,402.96 0.00 0.00 0.00 4,684,402.96
property transfer
3.Decreased amount
0.00 0.00 0.00 0.00 0.00
of the period
（1）Disposal or
0.00 7,426,706.36 0.00 377,462.16 7,804,168.52
scrap
0.00 0.00 0.00 0.00
4.Closing balance 51,872,080.71 367,818,642.92 12,960,509.98 6,771,353.66 439,422,587.27
III. Impairment
0.00 0.00 0.00 0.00 0.00
provision
1. Opening
0.00 26,858,566.44 0.00 0.00 26,858,566.44
balance
2.Increased
0.00 0.00 0.00 0.00 0.00
amount of the period
（1）Withdrawal 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
3.Decreased
0.00 0.00 0.00 0.00 0.00
amount of the period
（1）Disposal or
0.00 5,922,588.73 0.00 0.00 5,922,588.73
scrap
0.00 0.00 0.00 0.00
117
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
4.Closing balance 0.00 20,935,977.71 0.00 0.00 20,935,977.71
IV. Book Value 0.00 0.00 0.00 0.00 0.00
1.Closing book value 109,323,153.83 220,850,852.71 2,445,910.57 618,266.48 333,238,183.59
2.Opening book
99,794,652.56 231,471,212.58 2,877,100.75 651,965.78 334,794,931.67
value
(2) List of temporarily idle fixed assets
In RMB
Accumulative Accumulative
Items Original Book value Book value Notes
depreciation depreciation
Machinery
101,381,388.64 77,421,009.10 20,935,977.71 3,024,401.83
equipment
Transportation 267,500.00 259,475.25 8,024.75
Total 101,648,888.64 77,680,484.35 20,935,977.71 3,032,426.58
(3) Fixed assets leased in from financing lease
In RMB
Accumulative
Items Original book value Impairment provision Book value
depreciation
(4) Fixed assets leased out from operation lease
In RMB
Items
(5) Details of fixed assets failed to accomplish certification of property
In RMB
Items Book value Reason
Buildings and constructions 46,607,348.76 Waiting for final acceptance
Other notes
（6）Liquidation of fixed assets
In RMB
Items Closing balance Opening balance
Other notes
118
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
22. Construction in progress
In RMB
Items Closing balance Opening balance
Construction in progress 212,893.56 4,800,176.35
Total 212,893.56 4,800,176.35
(1) List of construction in progress
In RMB
Closing balance Opening balance
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Construction
212,893.56 212,893.56 4,800,176.35 4,800,176.35
engineering
Total 212,893.56 212,893.56 4,800,176.35 4,800,176.35
(2) Changes of significant construction in progress
In RMB
Of
Amount Proporti which：
Accumul
that on The Capitaliz
Other ative
Increase transferr estimate amount ation rate
Estimate decrease amount
Name of Opening d amount ed to Closing d of the Project of the of the Capital
d d amount of
items balance of the fixed balance project progress capitaliz interests resources
number of the capitaliz
period assets of accumul ed of the
period ed
the ative interests period
interests
period input of the
period
(3) List of the withdrawal of the impairment provision of the construction in progress
In RMB
Items Withdrawn amount Reason
Other notes:
（4）Engineering material
In RMB
119
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Closing balance Opening balance
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Other notes:
23. Productive biological assets
(1) Productive biological assets measured at cost methods
□ Applicable √ Not applicable
(2) Productive biological assets measured at fair value
□ Applicable √ Not applicable
24. Oil and gas assets
□ Applicable √ Inapplicable
25. Right to use assets
In RMB
Items Total
Other notes:
26. Intangible assets
(1) Information
In RMB
Items Land use right Patent Non-patents Total
I. Total original book
32,933,611.45 32,933,611.45
value
1. Opening balance 32,933,611.45 32,933,611.45
2. Increase in the
reporting period
（1）Purchase
（2）Internal R&D
（3）Increase from
enterprise
combination
3.Decrease in the
120
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
reporting period
（1）Disposal
4.Closing balance 32,933,611.45 32,933,611.45
II. Total accrued
amortization
1.Opening balance 9,452,362.02 9,452,362.02
2.Increased in the
209,022.66 209,022.66
reporting period
（1）Withdrawal 119,909.70 119,909.70
3.Decrease in the
reporting period
（1）Disposal
4.Closing balance 9,781,294.38 9,781,294.38
III. Impairment
provision
1.Opening balance
2.Increases in the
reporting period
（1）Withdrawal
3.Decrease in the
reporting period
（1）Disposal
4.Closing balance
IV. Book value
1.Book value of the
23,152,317.07 23,152,317.07
period-end
2.Book value of the
23,481,249.43 23,481,249.43
period-begin
The proportion the intangible assets formed from the internal R&D through the Company amount the balance of
the intangible assets at the period-end.
(2) Details of fixed assets failed to accomplish certification of land use right
In RMB
121
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Items Book value Reasons for absence of certificate of title
Other notes：
27. R&D expenses
In RMB
Opening Closing
Items Increase Decrease
balance balance
Other notes
28. Goodwill
(1) Original book value of goodwill
In RMB
Name of the
investees or the
Opening balance Increase Decrease Closing balance
events formed
goodwill
（2）Goodwill Impairment provision
In RMB
Items Opening balance Increase Decrease Closing balance
Notes of the testing process of goodwill impairment, parameters and the recognition method of goodwill
impairment losses:
Other notes
29. Long-term unamortized expenses
In RMB
Amortization
Items Opening balance Increase Decrease Closing balance
amount
83 Aluminum
1,545,518.47 1,081,980.00 385,720.72 2,241,777.75
machine entry fee
96 Aluminum
machine technology 367,314.87 35,546.78 331,768.09
transfer fee
Total 1,912,833.34 1,081,980.00 421,267.50 2,573,545.84
Other notes
122
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
30. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets had not been off-set
In RMB
Closing balance Opening balance
Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Assets impairment
32,333,935.93 4,850,090.39 32,333,935.93 4,850,090.39
provision
Total 32,333,935.93 4,850,090.39 32,333,935.93 4,850,090.39
(2) Deferred income tax liabilities had not been off-set
In RMB
Closing balance Opening balance
Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference liabilities difference liabilities
(3) Deferred income tax assets or liabilities listed by net amount after off-set
In RMB
Mutual set-off amount of Amount of deferred Mutual set-off amount of Amount of deferred
deferred income tax income tax assets or deferred income tax income tax assets or
Items
assets and liabilities at liabilities after off-set at assets and liabilities at liabilities after off-set at
the period-end the period-end the period-begin the period-begin
Deferred income tax
4,850,090.39
assets
(4) List of unrecognized deferred income tax assets
In RMB
Items Closing amount Opening amount
Deductible temporary difference 34,362,892.35 34,362,892.35
Deductible losses 108,084,389.85 108,084,389.85
Total 142,447,282.20 142,447,282.20
(5) Deductible losses of unrecognized deferred income tax assets will due the following years
In RMB
123
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Year Closing balance Opening balance Notes
Other notes：
31. Other non-current assets
Whether implemented new revenue guidelines?
√ Yes □No
In RMB
Closing balance Opening balance
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Advance purchase of long-term assets 6,478,509.34 6,478,509.34 1,815,521.86 1,815,521.86
Total 6,478,509.34 6,478,509.34 1,815,521.86 1,815,521.86
Other notes：
32. Short-term borrowings
(1) Category of short-term borrowings
In RMB
Items Closing balance Opening balance
Guaranteed borrowings 202,000,000.00 202,000,000.00
Credit borrowings 50,000,000.00 60,000,000.00
Total 252,000,000.00 262,000,000.00
Notes of short-term borrowings category
Unit Closing balance Start date Expiration date Annual interest rate Remark
Bank of China .Ninth 50,000,000.00 2018/8/13 2019/8/12 5.0025 Guarantee
Branch
Agricultural 30,000,000.00 2018/9/10 2019/9/5 4.57 Guarantee
Commercial Bank
Head Office Sales
Department
Agricultural 30,000,000.00 2018/9/21 2019/9/20 4.57 Guarantee
Commercial Bank
Head Office Sales
Department
Agricultural 42,000,000.00 2018/9/30 2019/9/28 4.57 Guarantee
Commercial Bank
Head Office Sales
124
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Department
Agricultural 50,000,000.00 2018/12/6 2019/12/5 4.57 Guarantee
Commercial Bank
Head Office Sales
Department
Bank of 30,000,000.00 2018/8/30 2019/8/30 4.785 Credit
communications nine
branches
Military Finance Co. 20,000,000.00 2019/4/9 2020/4/9 4.785 Credit
Total 252,000,000.00
(2) List of the short-term borrowings overdue but not return
The total amount of the overdue but not return short-term borrowings at the period-end was of RMB 000, of
which the situation of the significant overdue but not return short-term borrowings as follows:
In RMB
Borrower Closing balance Borrowing rate Overdue time Overdue rate
Other notes:
33. Transactional financial liabilities
In RMB
Items Closing balance Opening balance
Including：
Including：
Other notes：
34. Derivative financial liability
In RMB
Items Closing balance Opening balance
Other notes：
35.Notes payable
In RMB
Items Closing balance Opening balance
Bank acceptance bill 512,840,000.00 627,563,000.00
125
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Total 512,840,000.00 627,563,000.00
The total amount of the due but not pay notes payable at the period-end was of RMB 0.00.
36. Accounts payable
(1) List of accounts payable
In RMB
Items Closing balance Opening balance
Within 1 year 244,854,231.21 233,423,453.69
1-2 years 1,091,154.43 2,226,270.35
2-3 years 564,020.75 615,256.93
Over 3 years 1,944,599.98 1,530,774.63
Total 248,454,006.37 237,795,755.60
(2) Notes of the accounts payable aging over one year
In RMB
Items Closing balance Unpaid/un-carry-over reason
Other notes：
37. Advance from customers
(1) List of advance from customers
In RMB
Items Closing balance Opening balance
Within 1 year 712,970.46 1,097,390.90
Over 1 year 707,396.06 884,621.30
Total 1,420,366.52 1,982,012.20
(2) Significant advance from customers aging over one year
In RMB
Items Closing balance Unpaid/un-carry-over reason
38.Contract liabilities
In RMB
Items Closing balance Opening balance
126
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Amount and reason for significant changes in book value during the reporting period
In RMB
Items Amount Reason
39. Payroll payable
(1) List of Payroll payable
In RMB
Items Opening balance Increase Decrease Closing balance
Short-term compensation 2,063,455.21 52,654,309.27 52,015,501.51 2,702,262.97
Post-employment
benefits - defined 1,092,238.10 9,522,732.14 7,938,434.00 2,676,536.24
contribution plans
Dismissal welfare 525,658.80 525,658.80
Total 3,155,693.31 62,702,700.21 60,479,594.31 5,378,799.21
（2）Presentation of short-term compensation
In RMB
Items Opening balance Increase Decrease Closing balance
(1) Salary, bonus,
1,509,304.52 35,042,271.31 35,740,224.75 811,351.08
allowance and subsidy
(2) Employee benefits 3,455,776.28 3,455,776.28
(3) Social insurance
171,269.41 6,336,907.92 5,809,822.94 698,354.39
expenses
Including: medical
171,269.41 5,901,101.63 5,433,358.93 639,012.11
insurance premium
Work-related injury
388,217.94 345,634.07 42,583.87
insurance premium
Maternity insurance
47,588.35 30,829.94 16,758.41
premium
(4) Housing fund 339,702.00 6,878,280.55 6,319,026.00 898,956.55
(5) Labor union
expenditures and
43,179.28 941,073.21 690,651.54 293,600.95
employee education
expenses
Total 2,063,455.21 52,654,309.27 52,015,501.51 2,702,262.97
(3) List of drawing scheme
In RMB
127
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Items Opening balance Increase Decrease Closing balance
Basic endowment
940,220.65 9,202,253.57 7,655,498.21 2,486,976.01
insurance premium
Unemployment insurance
152,017.45 320,478.57 282,935.79 189,560.23
premium
Total 1,092,238.10 9,522,732.14 7,938,434.00 2,676,536.24
Other notes：
40. Taxes payable
In RMB
Items Closing balance Opening balance
VAT -2,321,179.90 1,241,326.23
Enterprise income tax 1,104,215.84 2,927,901.22
Individual income tax 465,616.18 566,964.67
Urban maintenance and construction tax 3,098,951.14 3,098,951.14
Business tax 406,965.05 393,030.84
Educational surtax 1,977,535.20 1,186,521.12
property tax 4,020,568.03 3,727,900.64
Land royalities 1,808,215.20 1,808,215.20
Other 3,688,469.60 4,533,417.89
Total 14,249,356.34 19,484,228.95
Other notes：
41.Other account payable
In RMB
Items Closing balance Opening balance
Other account payable 4,242,778.05 14,988,432.94
Total 4,242,778.05 14,988,432.94
（1) Interest payable
In RMB
Items Closing balance Opening balance
Particulars of significant overdue unpaid interest：
In RMB
128
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Unit Overdue amount Overdue reason
Other notes:
(2) Dividends payable
In RMB
Items Closing balance Unpaid/un-carry-over reason
Note: Including significant unpaid dividends payable over one year, the unpaid reason shall be disclosed:
(3) Other accounts payable
(1) Other accounts payable listed by nature of the account
In RMB
Items Closing balance Opening balance
Cash deposit 1,165,000.00 1,010,000.00
Work-related injury payment 279,894.45 279,432.94
Goods 1,187,735.14 10,254,641.72
Project payment 500,000.00
Cost of design 25,000.00 47,400.00
Maternity benefits payable 154,126.99 98,361.38
Payable reward 197,627.00
Other 1,371,839.19 2,600,969.90
Testing cost 59,182.28
Total 4,242,778.05 14,988,432.94
② Significant other payables for over 1 year
In RMB
Item Ending balance Reason for unreimbursed or transferred
Guangzhou Yuye Trading Co., Ltd. 30,000.00 non-arrival settlement period
Chongqing Bangbao Auto parts Co., Ltd. 30,000.00 non-arrival settlement period
Chongqing Green Dot Catering Co., Ltd. 20,000.00 non-arrival settlement period
Chongqing Huangdao Automobile
200,000.00 non-arrival settlement period
Transportation Co., Ltd.
Department of Transportation, Ruihe 260,000.00 non-arrival settlement period
loading and unloading Co., Ltd.
Chongqing Star Speed Logistics Co., Ltd. 400,000.00 non-arrival settlement period
Chongqing Chengbei Logistics Co., Ltd. 50,000.00 non-arrival settlement period
129
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Chongqing Anren Human Resources
20,000.00 non-arrival settlement period
Management Co., Ltd.
Chongqing Branch of Northern
Engineering Design and Research Institute 25,000.00 non-arrival settlement period
Co., Ltd.
Total 1,035,000.00 --
Other notes
42. Liabilities classified as holding for sale
In RMB
Items Closing balance Opening balance
Other notes:
43. Non-current liabilities due within 1 year
In RMB
Items Closing balance Opening balance
Long-term Borrowing loans due within 1
1,500,000.00
year
Total 1,500,000.00
Other notes:
44. Other current-liabilities
Whether implemented new revenue guidelines?
√ Yes □No
In RMB
Items Closing balance Opening balance
Changes on short term bonds payable:
In RMB
Overflow
The Withdraw Pay in
Name of Book Issue Opening discount Closing
Issue date period current interest at current
the bond value amount balance amortizati balance
issue par period
on
Other notes:
45. Long-term borrowing
(1) Category of long-term loan
In RMB
Items Closing balance Opening balance
130
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Notes ：
Other notes，including interest rate range：
46. Bonds payable
(1) Bonds payable
In RMB
Items Closing balance Opening balance
(2) Changes on bonds payable (not including other financial instrument classified as preferred stock and perpetual
capital securities of financial liabilities)
(3) Note to conditions and time of share transfer of convertible bonds
(4) Note to other financial instrument classified as financial liabilities
Basic information of preferred stock, perpetual capital securities and other financial instruments outstanding
issued at period-end Change list of preferred stock, perpetual capital securities and other financial instruments
outstanding issued at period-end
In RMB
Financial Opening period Increase Decrease Closing period
instruments
outstanding Amount Book value Amount Book value Amount Book value Amount Book value
issued
Notes to the basis of other financial instrument classified as financial liabilities
Other notes:
47. Lease liability
In RMB
Items Closing balance Opening balance
Other notes
48. Long-term payable
In RMB
Items Closing balance Opening balance
(1) Long-term payable listed by nature of the account
131
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
In RMB
Items Closing balance Opening balance
Other notes:
（2）Special payable
In RMB
Items Opening balance Increase Decrease Closing balance Formation reasons
Other notes:
49. Long term payroll payable
(1) List of long term payroll payable
In RMB
Items Closing balance Opening balance
(2) Changes of defined benefit plans
Present worth of defined benefit plans obligation:
In RMB
Items Amount of the Current Term Amount of the Previous Term
Plan assets:
In RMB
Items Amount of the Current Term Amount of the Previous Term
Net liabilities (net assets) of defined benefit plans
In RMB
Items Amount of the Current Term Amount of the Previous Term
Notes to the influence of the content and related risk of defined benefit plans to the future cash flows, time and
uncertainty of the Company:
Notes to analysis results of major actuarial assumptions and sensibility of defined benefit plans
Other notes:
50. Accrued liabilities
In RMB
Items Closing balance Opening balance Formation reasons
Other notes, including related important assumptions and estimates of accrued liabilities:
132
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
51. Deferred income
In RMB
Items Opening balance Increase Decrease Closing balance Formation reasons
Items involved in government subsidies:：
In RMB
Amount of newly Amount accrued Related to the
Items Opening balance Other changes Closing balance
subsidy in non-business assets/income
Other notes:
52. Other non-current liabilities
Whether implemented new revenue guidelines?
√ Yes □ No
In RMB
Items Closing balance Opening balance
Other notes：
53. Share capital
In RMB
Increase ("+") /decrease ("-") for the current year
Opening Share Closing
balance Issuance of converted from balance
Share donation Others Sub-total
new shares public reserve
funds
Total shares 119,375,000.00 119,375,000.00
Other notes
54. Other equity instruments
(1) Basic information of preferred stock, perpetual capital securities and other financial instruments outstanding
issued at period-end
(2) Change list of preferred stock, perpetual capital securities and other financial instruments outstanding issued at
period-end
In RMB
Financial Opening balance Increase Decrease Closing balance
instruments
outstanding Amount Book value Amount Book value Amount Book value Amount Book value
issued
133
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Changes, reason of change and basis of relevant accounting treatment of other equity instruments in reporting
period:
Notes:
55. Capital reserves
In RMB
Items Opening balance Increase Decrease Closing balance
Capital premium 702,032,741.07 702,032,741.07
Other capital reserves 256,532,553.22 256,532,553.22
Total 958,565,294.29 958,565,294.29
Other notes, including changes and reason of change:
56. Treasury stock
In RMB
Items Opening balance Increase Decrease Closing balance
Other notes, including changes and reason of change:
57. Other comprehensive income
In RMB
Occurred current term
Less：
Less：Prior
Amount
period
transferred
included
into profit
in other After-tax
Amount and loss in Less： After-tax
Opening composite attribute to Closing
Items incurred the current Income attribute to
balance income minority balance
before period that tax the parent
transfer to shareholde
income tax recognied expenses company
retained r
into other
income in
comprehensi
the current
ve income in
period
prior period
1. Other comprehensive income
that cannot be reclassified in the 9,800.00 9,800.00
loss and gain in the future
A share in other comprehensive
income of investee that cannot be
9,800.00 9,800.00
reclassified in the loss and gain
under the equity method
134
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Total other comprehensive income 9,800.00 9,800.00
Other notes, including the adjustment of the recognition of initial amount of effective part of the cash flow
58. Special reserves
In RMB
Items Opening balance Increase Decrease Closing balance
Other notes, including changes and reason of change:
59. Surplus reserves
In RMB
Items Opening balance Increase Decrease Closing balance
Statutory surplus
56,724,000.00 56,724,000.00
reserves
Discretionary surplus
68,962,000.00 68,962,000.00
reserves
Total 125,686,000.00 125,686,000.00
Other note, including changes and reason of change
60. Retained profits
In RMB
Items Amount of the Current Term Amount of the Previous Term
Adjust the undistributed profits before and at the
-910,334,643.75 -920,877,890.80
end of the period
Opening balance of retained profits after
-920,877,890.80
adjustments
Add: Net profit attributable to owners of the
-36,884,117.51 10,543,247.05
Parent company
Closing retained profits -947,218,761.26 -910,334,643.75
List of adjustment of opening retained profits:
1) RMB 000 opening retained profits was affected by retrospective adjustment conducted according to the
Accounting Standards for Business Enterprises and relevant new regulations.
2) RMB 000 opening retained profits was affected by changes on accounting policies.
3) RMB 000 opening retained profits was affected by correction of significant accounting errors.
4) RMB 000 opening retained profits was affected by changes in combination scope arising from same control.
5) RMB 000 opening retained profits was affected totally by other adjustments.
61. Operating income and operating costs
135
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
In RMB
Amount of the Current Term Amount of the Previous Term
Items
Income Cost Income Cost
Main business 398,487,683.92 356,371,797.67 482,850,720.88 400,797,229.92
Other business 20,126,493.37 17,783,502.28 28,846,010.53 23,473,707.09
Total 418,614,177.29 374,155,299.95 511,696,731.41 424,270,937.01
Whether implemented new revenue guidelines?
√ Yes □No
Income related information：
In RMB
Classification of the
Division 1 Division 2 Total
contract
Of which
Of which
Of which
Of which
Of which
Of which
Of which
Information related to performance obligations:
Not applicable
Information related to the transaction price apportioned to the residual performance obligation:
The income corresponding to the performance obligations that have not been performed or have been performed
incompletely but the contract has been signed at the end of the reporting period is RMB 0.00, of which RMB 0.00
is expected to be recognized as income in the year, RMB 0.00 is expected to be recognized as income in the year,
and RMB 0.00 is expected to be recognized as income in the year.
Other notes
62.Taxes and surcharges
In RMB
Items Amount of the Current Term Amount of the Previous Term
Urban maintenance and construction tax 1,397,450.77 1,185,383.93
Educational surtax 998,179.12 842,785.96
Resource tax 0.00
House tax 619,106.03 813,042.22
Land royalties 786,341.60 945,215.56
136
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
vehicle ship royalties 1,560.00 900.00
Stamp duty 274,653.10 228,411.82
Other 1,347.44 81,899.89
Total 4,078,638.06 4,097,639.38
Other notes:
63. Selling expenses
In RMB
Items Amount of the Current Term Amount of the Previous Term
Repair cost 2,057,769.71 3,229,756.75
Transportation cost 1,399,728.21 3,642,308.85
Payroll Payable 3,555,974.62 3,233,307.74
Storage and storage fee 817,646.79 803,942.71
Travel expenses 492,623.05 731,363.78
Sales service charge 271,620.06 532,490.09
Advertising expenses 23,417.48 225,710.82
Exhibition fees 21,440.60 28,857.28
Office expenses 63,765.28 73,188.55
Operating expenses
Depreciation costs 25,504.38 31,726.41
Insurance expenses 275,904.90 129,483.28
Total 9,005,395.08 12,662,136.26
Other notes:
64. Administrative expenses
In RMB
Items Amount of the Current Term Amount of the Previous Term
Payroll Payable 22,030,414.38 22,176,697.64
Depreciation costs 5,130,565.61 6,339,970.14
Repair charges 6,664,543.67 3,649,996.03
Consulting fee 302,121.15 187,504.60
Office expenses 382,547.21 450,911.45
Agency fee 87,434.56 877,244.45
Travel expenses 292,609.00 475,519.31
137
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Amortization of intangible assets 328,932.36 359,142.11
Board of directors' expenses 130,452.88 195,781.41
Business entertainment 209,646.37 301,050.31
Sewage charge 471,343.22 169,542.51
Legal fare 46,192.46 11,380.00
Technological transfer fees
Insurance expenses 2,260,205.30 3,095,721.12
Total 38,337,008.17 38,290,461.08
Other notes：
65. R&D Expense
In RMB
Items Amount of the Current Term Amount of the Previous Term
Salary 3,519,970.71 2,922,139.90
Office expenses 7,738.02 365.02
Material cost 295,987.41 378,813.13
Travel expenses 160,432.80 116,260.03
Tooling fee
Conference-servicing expenses
Fees for evaluation, identification and
943.40 8,000.00
authentication
Software fee 59,648.00 77,572.53
Trademark, property right, patent fee 112,236.69 82,010.67
Test inspection fee 116,754.44 50,676.34
Repair cost
Sample fee 23,866.81 55,158.92
Business entertainment 10,937.00 4,208.00
Traffic expense 36.00
Depreciation expense 961,651.81 972,953.46
Consulting fee 42,000.00 3,066.04
Training fee 7,687.37
Other 1,030,517.12 813,379.93
Total 6,342,684.21 5,492,327.34
Other notes：
66. Financial expenses
138
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
In RMB
Items Amount of the Current Term Amount of the Previous Term
Interest expenses 13,132,600.04 20,923,980.91
Less: Interest income 2,006,154.75 313,738.57
discount rate of bill
Exchange gains and losses 30,822.16 83,224.83
Commission Charge and others 65,534.72 -108,069.46
Total 11,222,802.17 20,585,397.71
Other notes：
67.Other income
In RMB
Other sources of revenue Amount of the Current Term Amount of the Previous Term
Obtain the grant of patent license of
Jiulongpo District Science and Technology 16,400.00
Committee
Subvention from Jiulongpo Finance
Bureau (Technical Project Grant for 10,000.00
Aluminum Rotary Blades)
Obtained the import and export subsidy of
156,000.00
Jiulongpo District Finance Bureau
To receive a subsidy for R & D input from
810,000.00
Jiulongpo Finance Bureau
Access to the second batch of special funds
for industrial informatization by the 400,000.00 120,000.00
Jiulongpo District Finance Bureau
To obtain patent support from Chongqing 2,000.00
intellectual property Office
To receive an export insurance premium
subsidy from the Jiulongpo District
5,000.00
Finance Bureau of Chongqing
Municipality
Access to international market
development funds for small and
13,000.00
medium-sized enterprises in Jiulongpo
Finance Bureau
To receive subsidies for automatic
monitoring of pollution sources by the 7,200.00
Environmental Protection Bureau of
Jiulongpo District
Obtained funds for compressor project of
100,000.00
Jiulongpo District Finance Bureau
Awarded to Jiulongpo Finance Bureau
Municipal intellectual property right 50,000.00
advantage Enterprises
Grant for patent authorization of Kowloon 42,900.00
po finance bureau
Access to import and export support funds 238,000.00
139
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
for foreign trade enterprises of Jiulongpo
Finance Bureau
Won the Jiulongpo Finance Bureau's
6,000.00
high-tech product recognition subsidy
To receive a high-level review grant from
20,000.00
Jiulongpo Finance Bureau in
Received the subsidy for key enterprises in
the Jiulongpo District Finance Bureau of 1,100.00
Chongqing City
Total 401,100.00 1,596,050.00
68.Investment income
In RMB
Items Amount of the Current Term Amount of the Previous Term
Long-term equity investment income
calculated by -10,791,697.77 1,735,798.80
equity method
Disposal of a long-term equity investment of
59,095,066.65
investment returns
Other
Total -10,791,697.77 60,830,865.45
Other notes
69.Net exposure hedging income
In RMB
Items Amount of the Current Term Amount of the Previous Term
Other notes
70. Gains on the changes in the fair value
In RMB
Source Amount of the Current Term Amount of the Previous Term
Other notes
71. Credit impairment loss
In RMB
Items Amount of the Current Term Amount of the Previous Term
Other notes
140
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
72. Losses from asset impairment
Whether implemented new revenue guidelines?
√ Yes □ No
In RMB
Items Amount of the Current Term Amount of the Previous Term
Losses on bad debt -280,777.30 -414,009.12
Total -280,777.30 -414,009.12
Other notes
73. Asset disposal income
In RMB
Source Amount of the Current Term Amount of the Previous Term
Total profits of non-current assets disposal
Including: Profits of disposal of fixed
-1,712,382.50
assets
Profits of disposal of intangible assets
Disposal of other non-current assets -52,595.40
Total -1,712,382.50 -52,595.40
74. Non-operating income
In RMB
Amount of the Current Term Amount of the Previous Term Recorded in the amount of the
Items
non-recurring gains and losses
Government Subsidy 30,000.00 332,400.00 30,000.00
Other 202,624.17 25,560.24 202,624.17
Total 232,624.17 357,960.24 232,624.17
Government subsidies recorded into current profits and losses：
In RMB
Whether the
impact of Amount of Amount of
Whether Assets-relate
Issuing subsidies on
Items Issuing body Nature special current previous d/income
Reason the current
subsidies -related
profit and period period
loss
Focus on
supporting Related to
subsidy funds 100,000.00
for science income
and
141
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
technology
enterprises
Incentives for
contributions Related to
50,000.00
to economic income
development
Top ten
high-tech Related to
100,000.00
enterprise income
awards
Industry Related to
114,700.00
support fund income
Innovation
fund by
Jiulongpo Related to
30,000.00
Treasury income
payment
center
Total 30,000.00 364,700.00
Other notes
75. Non-operating expenses
In RMB
Items Amount of the Current Term Amount of the Previous Term Carried to current contingent
gain/loss
Other 24,777.08
Total 24,777.08
Other notes
76. Income tax expense
(1) Lists of income tax expense
In RMB
Items Amount of the Current Term Amount of the Previous Term
Current income tax expense 205,333.76 561,775.84
Total 205,333.76 561,775.84
(2) Adjustment process of accounting profit and income tax expense
In RMB
Items Amount of the Current Term
Total profit -36,678,783.75
Income tax expense at statutory / applicable tax rates 205,333.75
Income tax expenses 205,333.76
Other notes
142
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
77. Other comprehensive income
Refer to the notes
78. Supplementary information to cash flow statement
(1) Other cash received relevant to operating activities
In RMB
Items Amount of the Current Term Amount of the Previous Term
Interest income 57,138.61
Other 2,694,008.36 13,992,215.96
Total 2,694,008.36 14,049,354.57
Notes：
(2) Other cash paid related to operation
In RMB
Items Amount of the Current Term Amount of the Previous Term
Operation fees such as freight,
1,947,118.66 9,398,031.99
warehousing fees
Administrative expenses such as office
3,247,040.88 15,672,282.64
expenses and traveling expenses
Others 3,551,385.82 17,141,244.74
Total 8,745,545.36 42,211,559.37
Statement on other cash paid related to operation
(3) Other cash received related to investment
In RMB
Items Amount of the Current Term Amount of the Previous Term
Statement on other cash received related to investment
(4) Other cash paid related to investment
In RMB
Items Amount of the Current Term Amount of the Previous Term
Statement on other cash paid related to investment
(5) Other cash received related to financing
In RMB
143
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Items Amount of the Current Term Amount of the Previous Term
Receipt of discounted funds for financing
141,753,830.08 399,577,250.28
bills
Total 141,753,830.08 399,577,250.28
Notes：
(6) Other cash paid relevant to financing activities
In RMB
Items Amount of the Current Term Amount of the Previous Term
Payment of due financing notes 128,911,194.16 159,712,262.11
Decrease of note deposit 150,960,000.00 137,775,000.00
Total 279,871,194.16 297,487,262.11
Notes：
79. Supplementary information to cash flow statement
(1) Information of net profit to net cash flows
In RMB
Supplementary information Amount of the Current Term Amount of the Previous Term
1. Net profit adjusted to cash flows from
-- --
operating activities
Net profits -36,884,117.51 66,433,500.89
Add：Provision for assets impairment 280,777.30
Depreciation of fixed assets, oil and gas
15,906,904.14 17,881,729.85
assets and consumable biological assets
Amortization of intangible assets 328,932.36 359,142.11
Amortization of Long-term deferred
399,549.20 416,661.12
expenses
Loss on disposal of fixed assets, intangible
1,712,382.50 3,797.36
assets and other long-term deferred assets
Losses on discarding of fixed assets ("-" for
0.00
gains)
Financial expenses ("-" for income) 11,222,802.17 20,585,397.71
Investments losses ("-" for gains) 10,791,697.77 -60,830,865.45
Decreases in the deferred income tax assets
0.00
("-" for increases)
Decreases in inventories ("-" for increases) 9,399,855.65 -13,883,435.83
144
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Decreases in operating receivables ("-" for
23,996,139.39 -53,213,751.28
increases)
Increases in operating receivables（"-" for
81,995,605.56 50,733,853.77
decreases）
Net cash flows from operating activities 119,150,528.53 28,486,030.25
2 、 Significant investment and financing
activities involving no cash receipts and -- --
payments
3、Net change in cash and cash equivalents: -- --
Closing balance of cash 20,466,791.79 160,989,944.15
Less: Opening balance of cash 72,542,523.19 126,225,466.46
Net increase in cash and cash equivalents -52,075,731.40 34,764,477.69
(2) Net Cash paid of obtaining the subsidiary
In RMB
Amount
Of which --
Of which --
Of which --
Other notes：
(3) Net Cash receive of disposal of the subsidiary
In RMB
Amount
Of which --
Of which --
Of which --
Other notes：
(4) Component of cash and cash equivalents
In RMB
Items Closing balance Opening balance
1. Cash 20,466,791.79 72,542,523.19
Unrestricted bank deposit 20,466,791.79 15,970,444.15
Other unrestricted monetary funds 145,019,500.00
III. Closing balance of cash and cash
20,466,791.79 72,542,523.19
equivalents
Other notes：
145
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
80. Note of statement of changes in the owner's equity
Explain "other" project name and adjustment amount of the adjustment of closing balance in previous year, etc.:
81. The assets with the ownership or use right restricted
In RMB
Items Closing book value Restricted reason
Monetary funds 154,616,698.79 Bank acceptance deposit
Total 154,616,698.79 --
Other notes：
82. Foreign currency monetary items
(1) Foreign currency monetary items
In RMB
Closing foreign currency Closing convert to RMB
Items Exchange rate
balance balance
Monetary funds -- --
Including：USD
Euro
HKD
Account receivable -- --
Including：USD
Euro
HKD
Long-term borrowing -- --
Including：USD
Euro
HKD
Other notes：
146
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
(2) Note to oversea entities including: for significant oversea entities, shall disclose main operating place,
recording currency and selection basis, if there are changes into recording currency, shall also disclose the reason.
□ Applicable √Not applicable
83. Arbitrage
Arbitrage According to arbitrage category to disclose arbitrage item, relevant arbitrage tools and the arbitraged
risk qualitative and quantitative information:
84. Government subsidies
（1）Government subsidies confirmed in current period
In RMB
Amount included in current
Items Amount Project
profit and loss
Access to the second batch of
special funds for industrial
informatization by the 400,000.00 400,000.00
Jiulongpo District Finance
Bureau
Received the subsidy for key
enterprises in the Jiulongpo
1,100.00 1,100.00
District Finance Bureau of
Chongqing City
Jiulongpo Management
Committee Science and 30,000.00 30,000.00
Technology Innovation Award
Total 431,100.00 431,100.00
（2）Government subsidy return
□ Applicable √ Not applicable
Other notes：
147
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
85.Other
VIII. Changes of merge scope
1. Business merger not under same control
(1) Business merger not under same control in reporting period
In RMB
Income of Net profits of
Time and
Cost of Way to gain Recognition acquiree acquiree
place of Proportion of
Name gaining the the stock Purchase date basis of during the during the
gaining the stock rights
stock rights rights purchase date purchase date purchase date
stock right
to period-end to period-end
Other notes：
(2) Combined cost and goodwill
In RMB
Combined cost
Notes to determination method, consideration and changes of fair value of combined cost:
The main formation reason for the large goodwill:
Other notes:
(3) The identifiable assets and liabilities of acquiree at purchase date
In RMB
Fair value on purchase date Book value on purchase date
The recognition method of the fair value of identifiable assets and liabilities
Contingent liability of acquiree undertaken by business merger
Other notes:
(4) The profit or loss from equity held by the date before acquisition in accordance with the fair value measured
again、
Whether there is a transaction that through multiple transaction step by step to realize enterprises merger and
gaining the control during the reporting period
□ Yes √ No
148
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
(5) Note to merger could not be determined reasonable consideration or Identifiable assets, Fair value of
liabilities of the acquiree at acquisition date or closing period of the merge
(6) Other notes:
2. Business combination under the same control
(1) Business combination under the same control during the reporting period
In RMB
Income from Net profits
the from the
Recognition Income Net profits
period-begin reporting
Proportion of Combination basis of during the during the
Name Basis to the period to the
the profits date combination period of period of
combination combination
date comparison comparison
date of the date of the
combination combination
Other notes：
(2) Combination cost
In RMB
Combination cost
Notes to contingent consideration or other changes:
Other notes:
(3) The book value of the assets and liabilities of the merged party on the date of consolidation
In RMB
Combination date Last closing period
Contingent liabilities of the combined party undertaken in combination
Other notes:
3. Counter purchase
Basic information of trading, the basis of transactions constitute counter purchase, the retain assets , liabilities of
the listed companies whether constituted a business and its basis, the determination of the combination costs, the
amount and calculation of adjusted rights and interests in accordance with the equity transaction process.
149
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
4. The disposal of subsidiary
Whether there is a single disposal of the investment to subsidiary and lost control
□ Yes √No
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control in
reporting period
□ Yes √ No
5. Other reasons for the changes in combination scope
Notes to reasons for the changes in combination scope (Newly established subsidiary and subsidiary of
liquidation) and relevant information:
6. Other
IX. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
Main operating Nature of Proportion of shareholding
Name Registration place Way of gaining
place business Directly Indirectly
Production and
Vehicle air sale of
Chongqing Chongqing 100.00% Investment
conditioner automotive
air-conditioners
Notes: holding proportion in subsidiary different from voting proportion:
Basis of holding half or less voting rights but still been controlled investee and holding more than half of the
voting rights not been controlled investee:
Significant structure entities and controlling basis in the scope of combination:
Basis of determine whether the Company is the agent or the principal:
Other notes:
(2) Significant not wholly owned subsidiary
In RMB
The profits and losses Declaring dividends Balance of minority
Shareholding proportion
Name arbitrate to the minority distribute to minority shareholder at closing
of minority shareholder
shareholders shareholder period
150
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Holding proportion of minority shareholder in subsidiary different from voting proportion:
Other notes:
(3) The main financial information of significant not wholly owned subsidiary
In RMB
Closing balance Opening balance
Non-curr Non-curr
Non-curr Current Total Non-curr Current Total
Name Current Total ent Current Total ent
ent Liabilitie Liabilitie ent Liabilitie Liabilitie
assets assets Liabilitie assets assets Liabilitie
assets s s assets s s
s s
In RMB
June 30,2019 June 30,2018
Total Total
Name Operation Operating Operation Operating
Net profit comprehensi Net profit comprehensi
revenue cash flow revenue cash flow
ve income ve income
Other notes:
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt
(5) Provide financial support or other support for structure entities incorporate into the scope of consolidated
financial statements
Other notes:
2. The transaction of the Company with its owner’s equity share changed but still controlling the subsidiary
(1) Note to owner’s equity share changed in subsidiary
(2) The transaction’s influence to equity of minority shareholders and attributable to the owner's equity of the
parent company
In RMB
Other notes
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
Name of joint Shareholding ratio (%) Accounting
Domicile of
venture or Registered place Business nature treatment
primary operation Directly Indirect
associate methods for the
151
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
investments in
joint ventures or
associates
Production and
Chongqing
sales of
Pingshan TK
Chongqing Chongqing motorcycles and 50.00% Equity method
Carburettor Co.,
the relevant
Ltd.
accessories
Chongqing Variable
Jianshe Hanon displacement
Heat compressor
Chongqing Chongqing 50.00% Equity method
Management assembly and
system Co., core parts
Ltd. production
Notes to holding proportion of joint venture or associated enterprise different from voting proportion:
Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or more voting
rights but does not have a significant impact:
（2）Major joint ventures and associates
In RMB
Closing balance/June 30, 2019 Opening balance/June 30, 2018
Other notes
(3) Main financial information of significant associated enterprise
In RMB
Closing balance/June 30, 2019 Opening balance/June 30, 2018
Other notes
(4) Summary financial information of insignificant joint venture or associated enterprise
In RMB
Closing balance/June 30, 2019 Opening balance/June 30, 2018
Joint venture： -- --
The total of following items according to the
-- --
shareholding proportions
Associated enterprise: -- --
The total of following items according to the
-- --
shareholding proportions
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Other notes:
(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer funds to the
Company
(6) The excess loss of joint venture or associated enterprise
In RMB
The cumulative recognized The derecognized losses or the The no cumulative
Name losses in previous share of net profit in reporting unrecognized losses in reporting
accumulatively derecognized period period
Other notes:
(7) The unrecognized commitment related to joint venture investment
(8) Contingent liabilities related to joint venture or associated enterprise investment
4. Significant common operation
Main operating place Proportion /share portion
Name Registration place Business nature
registration place Directly Indirectly
Note to holding proportion or share portion in common operation different from voting proportion:
Basis of common operation as a single entity, classify as common operation Other notes:
Other notes
5. Equity of structure entity not including in the scope of consolidated financial statements
Related notes to structure entity not including in the scope of consolidated financial statements
6.Other
X. The risk related financial instruments
XI. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
In RMB
Closing fair value
Items Fair value measurement Fair value measurement Fair value measurement
Total
items at level 1 items at level 2 items at level 3
I. Consistent fair value
-- -- -- --
measurement
II Inconsistent fair value -- -- -- --
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
measurement
2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1
3. Valuation technique adopted and nature and amount determination of important parameters for consistent and
inconsistent fair value measurement items at level 2
4. Valuation technique adopted and nature and amount determination of important parameters for consistent and
inconsistent fair value measurement items at level 3
5. Sensitiveness analysis on unobservable parameters and adjustment information between opening and closing
book value of consistent fair value measurement items at level 3
6. Explain the reason for conversion and the policy governing when the conversion happens if conversion happens
among consistent fair value measurement items at different levels
7. Changes in the valuation technique in the current period and the reason for change
8. Fair value of financial assets and liabilities not measured at fair value
9. Other
XII. Related party and related Transaction
1. Information related to parent company of the Company
Name of the parent Shareholding ratio in Voting ratio in the
Registered place Business nature Registered capital
company the Company (%) Company (%)
Military Equipment Investment in
Beijing 1,746,968 71.13% 71.13%
Group state-owned assets
Notes
The ultimate controller of the Company is
Other notes
2. Subsidiaries of the Company
See notes
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
3. Information on the joint ventures and associated enterprises of the Company
The details of significant joint venture and associated enterprise of the Company
Information on other joint venture and associated enterprise of occurring related party transactions with the
Company in reporting period, or form balance due to related party transactions in previous period:
Name of joint venture or associate Relationship with the company
Chongqing Pingshan TK
Joint venture
Carburettor Co., Ltd.
Chongqing Jianshe Hanon Heat Management system Co.,
Associated enterprise
Ltd.
Other notes
4.Other related parties of the Company
Name of other related parties Relationship with the Company
Jianshe Mechanical and Electric Under the common control of the same party
Jianshe Industry Under the common control of the same party
Military Finance Co. Under the common control of the same party
Chongqing Jianxing Machinery Manufacturing Co., Ltd. An Joint venture a subsidiary of a controlling shareholder
Changan Auto Under the common control of the same party
Changan Auto.Beijing Chanan Auto Company. Under the common control of the same party
Changan SUZUKI An Joint venture a subsidiary of a controlling shareholder
Hefei Changan Under the common control of the same party
Nanjing Changan Under the common control of the same party
Baoding Changan Bus Manufacturing Co., Ltd. Under the common control of the same party
Heifei Changan Auto Under the common control of the same party
Southern Motorcycle Under the common control of the same party
Chongqing Changan Auto Customer service Co., Ltd. Under the common control of the same party
Chongqing Changan Auto International Sale Service Co., Ltd. Under the common control of the same party
Chongqing Northern Jianshe Import & Export Co., Ltd. Under the common control of the same party
Harbin Hafei Automobile Co., Ltd Under the common control of the same party
Sichuan Huaqing Machinery Co., Ltd. Under the common control of the same party
Changan Ford Motor Co., Ltd. Harbin Branch An Joint venture a subsidiary of a controlling shareholder
Harbin Dongan Auto Power Co., Ltd. Under the common control of the same party
South Air International Under the common control of the same party
Other notes
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
5. List of related-party transactions
(1) Information on acquisition of goods and reception of labor service
Acquisition of goods and reception of labor service
In RMB
Occurred current Trading limit Over the trading limit Occurred in previous
Related party Content
term approved or not? term
Jianshe Mechanical Lease production
1,526,542.32 3,500,000.00 No 0.00
and Electric site
Jianshe Industry Part test 600,000.00 1,000,000.00 No 270,000.00
Acceptance of
Cbangan Group and
repairing service 690,000.00 2,500,000.00 No 970,000.00
its Subsidiaries
Sales of goods and services
In RMB
Subjects of the related
Related parties Occurred current term Occurred in previous term
transactions
Cbangan Group and its
Sales of goods 49,680,000.00 63,210,000.00
Subsidiaries
Jianshe Mechanical and Electric Lease storehouse 2,198,845.20 0.00
Chongqing Yamaha Motorcycle
Selling parts 810,000.00 0.00
Co., Ltd.
South Air International Selling parts 40,000.00 0.00
Notes
(2) Related trusteeship/contract
Lists of related trusteeship/contract
In RMB
Name of the Name of the Income
entruster/Contract entrustee/Contrac Type Initial date Due date Pricing basis recognized in the
ee tor reporting period
Notes
Lists of entrust/contractee：
In RMB
Name eof the Name of the Charge
entruster/Contract entrustee/Contrac Type Initial date Due date Pricing basis recognized in the
ee tor reporting period
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Notes:
(3) Information of related lease
The Company was lessor:
In RMB
The lease income confirmed in The lease income confirmed in
Name of lessee Category of leased assets
this year last year
Jianshe Mechanical and Electric Fixed assets 2,198,845.20 0.00
Total 2,198,845.20 0.00
The Company was lessee：
In RMB
The lease income confirmed in
Lessor Category of leased assets Category of leased assets
this year
Jianshe Mechanical and Electric Fixed assets 1,526,542.32 0.00
Total 1,526,542.32 0.00
Notes:
(4) Related-party guarantee
The Company was guarantor
In RMB
Execution accomplished
Secured party Guarantee amount Start date End date
or not
The Company was secured party
In RMB
Execution accomplished
Guarantor Guarantee amount Start date End date
or not
Notes
(5) Inter-bank lending of capital of related parties：
In RMB
Amount borrowed and
Related party Initial date Due date Notes
loaned
Borrowed
Loaned
(6) Related party asset transfer and debt restructuring
In RMB
Related party Content Occurred current term Occurred in previous term
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
(7) Rewards for the key management personnel
In RMB
Items Occurred current term Occurred in previous term
(8) Other related transactions
6. Receivable and payables due with related parties
（1）Receivables
In RMB
At end of term At beginning of term
Project Related parties
Book balance Bad debt provision Book balance Bad debt provision
（2）Payables
In RMB
Project Related parties At end of term At beginning of term
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
7. Related party commitment
8.Other
XIII. Stock payment
1. The Stock payment overall situation
□ Applicable √ Not applicable
2. The Stock payment settled by equity
□ Applicable √ Not applicable
3. The Stock payment settled by cash
□ Applicable √ Not applicable
4. Modification and termination of the stock payment
5.Other
XIV. Commitments
1.Significant commitments
Significant commitments at balance sheet date
2. Contingency
(1) Significant contingency at balance sheet date
(2) The Company have no significant contingency to disclose, also should be stated
There was no significant contingency in the Company.
3.Other
XV. Events after balance sheet date
1. Significant events had not adjusted
In RMB
Influence number to the Reason of unable to estimate
Items Content
Financial position and operating influence number
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
results
2. Profit distribution
3. Sales return
4. Notes of other significant events
XVI. Other significant events
1. The accounting errors correction in previous period
（1）Retrospective restatement
In RMB
Name of the influenced report
Content Processing program Accumulative impact
items during comparison period
（2）Prospective application
Content Processing program Reason of adopting prospective application
2. Debt restructuring
3. Replacement of assets
(1) Non-monetary assets exchange
(2) Other assets replacement
4. Pension plan
5. Discontinuing operation
In RMB
Termination of
the business
Income tax profits
Items Income Expenses Total profit Net profit
expenses attributable to the
parent company
owner
160
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Other notes
6. Segment information
(1) Recognition basis and accounting policies of reportable segment
(2) The financial information of reportable segment
In RMB
Items Offset during segments Total
(3) There was no reportable segment, or the total amount of assets and liabilities of each part of reportable
segment, shall disclose the reason.
(4) Other notes
7. Other important transactions and events have an impact on investors’ decision-making
8. Other
XVII. Notes of main items in the financial statements of the Parent Company
1. Accounts receivable
(1) Accounts receivable classified by category
In RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Book
Proportio Proportio Proportio Proportio Book value
Amount Amount value Amount Amount
n% n% n% n%
Accrual of bad debt
provision by single 6,153.00 0.18% 6,153.00 100.00% 6,153.00 0.18% 6,153.00 100.00%
item
Including
Accrual of bad debt
3,036,26 1,726,94 1,309,317 3,427,697 1,726,944 1,700,752.5
provision by 50.38% 99.82% 50.38%
1.89 4.58 .31 .09 .58 1
portfolio
Including：
3,042,41 1,733,09 1,309,317 3,433,850 1,733,097 1,700,752.5
Total 100.00%
4.89 7.58 .31 .09 .58 1
Accrual of bad debt provision by single item:
In RMB
161
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Closing balance
Name
Book balance Bad debt provision Proportion Reason
6,153.00 6,153.00 100.00% Unable to recover
Total 6,153.00 6,153.00 -- --
Accrual of bad debt provision by single item:
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion Reason
Accrual of bad debt provision by portfolio:
In RMB
Closing balance
Name
Book balance Bad debt provision Proportion
Notes：
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
account receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
□ Applicable √ Not applicable
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year（Including 1 year） 1,309,317.31
Over 5 years 1,726,944.58
Total 3,036,261.89
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Category Opening balance Reversed or Closing balance
Accrual Write-off
collected amount
Of which the significant amount of the reversed or collected part during the reporting period
In RMB
Items Reversed or collected amount Method
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
(3) The actual write-off accounts receivable
In RMB
Items Amount
Of which the significant actual write-off accounts receivable:
In RMB
Whether occurred
Name Nature Amount Reason Process from the related
transactions
Of which the significant actual write-off accounts receivable:
In RMB
Whether occurred
Name Nature Amount Reason Process from the related
transactions
Notes of the write-off the accounts receivable:
(5) Account receivable which terminate the recognition owning to the transfer of the financial assets
(6) The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
Other notes:
2. Other accounts receivable
In RMB
Items Closing balance Opening balance
Other accounts receivable 2,615,311.15 567,726.24
Total 2,615,311.15 567,726.24
（1）Interest receivable
(1) Category of interest receivable
In RMB
Items Closing balance Opening balance
(2) Significant overdue interest
Whether occurred
Borrower Closing balance Overdue time Reason
impairment and its
163
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
judgment basis
Other notes：
3）Bad-debt provision
□ Applicable √ Not applicable
8. Dividend receivable
(1) Dividend receivable
In RMB
Items Closing balance Opening balance
(2) Significant dividend receivable aged over 1 year
In RMB
Whether occurred
Items Closing balance Aging Reason impairment and its
judgment basis
Other notes：
3）Bad-debt provision
□ Applicable √ Not applicable
Other notes：
（3） Other accounts receivable
(1) Other accounts receivable classified by the nature of accounts
In RMB
Nature Closing book balance Opening book balance
Other current account 2,615,311.15 567,726.24
Total 2,615,311.15 567,726.24
2）Provision for bad debts
In RMB
Stage 1 Stage 2 Stage 3
Expected credit Expected credit losses for
Bad Debt Reserves Expected credit loss over Total
losses over the next the entire duration (credit
life (no credit impairment)
12 months impairment occurred)
Balance as at January 1,
—— —— —— ——
2019 in current period
Loss provision changes in current period, change in book balance with significant amount
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
□ Applicable √Not applicable
Disclosure by aging
In RMB
Aging Closing balance
Within 1 year(Including 1 year） 2,881,806.14
1-2 years 74,563.85
3-4 years 55,045.80
Over 5 years 4,234,208.59
Total 7,245,624.38
3) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Category Opening balance Reversed or collected Closing balance
Accrual
amount
Of which the significant amount of the reversed or collected part during the reporting period
In RMB
Items Reversed or collected amount Method
(4) The actual write-off accounts receivable
In RMB
Items Amount
Of which the significant actual write-off accounts receivable:
In RMB
Whether occurred
Name Nature Amount Reason Process from the related
transactions
Notes of the write-off other accounts receivable:
(5) Top 5 of the closing balance of the other accounts receivable colleted according to the arrears party
In RMB
Proportion of the
total year end Closing balance of
Name Nature Closing balance Aging
balance of the bad debt provision
accounts receivable
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
(6) Accounts receivable involved with government subsidies
In RMB
Estimated received time,
Name Project of government Opening balance Closing balance
amount and basis
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts
receivable
Other notes:
3. Long-term equity investment
In RMB
Closing balance Opening balance
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investments in
160,000,000.00 160,000,000.00 160,000,000.00 160,000,000.00
subsidiaries
Investments in
associates and 246,966,038.98 246,966,038.98 187,208,081.45 187,208,081.45
joint ventures
Total 406,966,038.98 406,966,038.98 347,208,081.45 347,208,081.45
（1） Investments in subsidiaries
In RMB
Provision for Balance as at June
30, 2019 of
Investee Opening balance Increase Decrease Closing balance impairment in the
provision for
period impairment
Chongqing Jianshe
Automobile A/C 160,000,000.00 160,000,000.00
Co., Ltd.
Total 160,000,000.00 160,000,000.00
（2）Investments in associates and joint ventures
In RMB
Increases/decreases in the current year
Balance
Opening Additio Decrease profits Other Declarati Impairme Closing as at June
Investee nal in and losses comprehe Changes
Balance on in other on of cash nt Other balance 30, 2019
investm investmen investmen nsive
equity dividends provision of
ent t ts income
166
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
recognize or profits provision
d under
the equity for
method impairme
nt
1. Joint ventures
Chongqin
g
Pingshan
83,923,46 30,193,65 -3,713,96 2,000,000 48,015,84
TK
0.57 0.00 3.83 .00 6.74
Carburett
or Co.,
Ltd.
Jianshe 103,284,6 102,743,3 -7,077,73 198,950,1
HANON 20.88 05.30 3.94 92.24
187,208,0 102,743,3 30,193,65 -10,791,6 2,000,000 246,966,0
Subtotal
81.45 05.30 0.00 97.77 .00 38.98
2．Associates
187,208,0 102,743,3 30,193,65 -10,791,6 2,000,000 246,966,0
Total
81.45 05.30 0.00 97.77 .00 38.98
（3）Other notes
4. Operation income and operation cost
In RMB
Occurred current term Occurred in previous term
Items
Income Cost Income Cost
Major business turnover 301,476,262.67 304,281,298.49 386,205,807.86 362,617,628.59
Other business income 11,726,598.03 828,324.89 10,939,891.47 54,648.07
Total 313,202,860.70 305,109,623.38 397,145,699.33 362,672,276.66
Whether implemented new revenue guidelines?
√ Yes □ No
Income related information：
In RMB
Division 1 Division 2 Total Total
Of which：
Of which：
Of which：
Of which：
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
Of which：
Of which：
Of which：
Information related to performance obligations:
Not applicable
Information related to the transaction price apportioned to the residual performance obligation:
The income corresponding to the performance obligations that have not been performed or have been performed
incompletely but the contract has been signed at the end of the reporting period is RMB 0.00, of which RMB 0.00
is expected to be recognized as income in the year, RMB 0.00 is expected to be recognized as income in the year,
and RMB0.00 is expected to be recognized as income in the year.
Other notes：
5. Investment income
In RMB
Items Occurred current term Occurred in previous term
Long-term equity investment income
calculated by equity -10,791,697.77 1,735,798.80
method
Investment income from disposal of
long-term equity 53,040,000.00
investment
Total -10,791,697.77 54,775,798.80
6.Other
XVIII. Supplementary Information
1. Details of non-recurring gain/loss of the term
√ Applicable □ Not applicable
In RMB
Items Amount Notes
Non-current asset disposal gain/loss -1,712,382.50
Govemment subsidy recognized in current
gain and loss(excluding those closely related
30,000.00
to the Company’s business and granted
under the state’s policies)
Other non-business income and expenditures
603,724.17
other than the above
Total -1,078,658.33 --
Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in
the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Extraordinary Gains and Losses, or classifies any extraordinary gain/loss item mentioned in the said
168
Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
explanatory announcement as a recurrent gain/loss item
□ Applicable √Not applicable
2. Net income on asset ratio and earning per share
Earnings per share
Profit of the report period Net income on asset, weighted Diluted earnings per
Basic earnings per share
share
Net profit attributable to common
-13.42% -0.3090 -0.3090
shareholders of the Company
Net profit attributable to the
common owners of the PLC after
-13.03% -0.2999 -0.2999
deducting of non-recurring
gains/losses
3. Differences between accounting data under domestic and overseas accounting standards
(1) Differences of net profit and net assets disclosed in financial reports prepared under international and Chinese
accounting standards
□ Applicable √ Not applicable
(2) Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese
accounting standards
□ Applicable √ Not applicable
(3) Explain reasons for the differences between accounting data under domestic and overseas accounting
standards, for audit data adjusting differences had been foreign audited, should indicate the name of the foreign
institutions
4.Other
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Chongqing Jianshe Vehicle System Co., Ltd. The Semi-Annual Report 2019
XI. Documents available for inspection
I. The semi-report carrying personal signature and seal of the Chairman of the Board;
II. Financial Statements with signatures of the legal representative, the financial officer, and accounting manager.
III. All of the originals of the Company’s documents and public notices publicized by the presses designated by
China Securities Regulatory Commission in the report period;
170
