Share’s name: Jiangling Motors Share’s code: 000550 No.: 2018-019 Jiangling B 200550 Jiangling Motors Corporation, Ltd. 2018 First Quarter Report §1 Important Note 1.1 The Board of Directors and its members, the Supervisory Board and its members, and the senior executives undertake that the information disclosed in the Quarterly Report is truthful, accurate and complete and does not contain any false statement, misrepresentation or major omission, and are jointly and severally liable for the legal liability. 1.2 All the Directors were present at the Board meeting in person. 1.3 Chairman Qiu Tiangao, CFO Gong Yuanyuan and Chief of Finance Department, Xie Wanzhao, confirm that the financial statements in this Quarterly Report are truthful, accurate and complete. 1.4 All financial data in this Quarterly Report are prepared under International Financial Reporting Standards (“IFRS”) unless otherwise specified. 1 §2 Brief Introduction 2.1 Main accounting data and financial indicators Unit: RMB’000 2018 2017 Change (%) First Quarter First Quarter Revenue 6,481,073 8,155,676 -20.53 Profit Attributable to the Equity Holders of the 153,606 228,608 -32.81 Company Net Cash Generated -1,397,337 -879,487 -58.88 From Operating Activities Basic Earnings Per Share 0.18 0.26 -32.81 (RMB) Diluted Earnings Per 0.18 0.26 -32.81 Share (RMB) Weighted Average Return Down 0.62 1.21% 1.83% on Net Asset Ratio (%) percentage point March 31, December 31, Change (%) 2018 2017 Total Assets 22,731,954 26,383,761 -13.84 Shareholders’ Equity Attributable to the Equity 10,725,941 12,572,402 -14.69 Holders of the Company 2.2 Total number of shareholders and top ten shareholders at the end of reporting period 2.2.1 Total number of shareholders and top ten shareholders Total shareholders as JMC had 36,414 shareholders, including 30,833 A-share holders, and 5,581 of the end of the B-share holders, as of March 31, 2018. reporting period Top ten shareholders Shares due Shareholding Shares at the Shares with Shareholder to Shareholder Name Percentage End of 2018 Trading Type mortgage (%) First Quarter Restriction or frozen Jiangling Motor State-owned 41.03 354,176,000 0 0 Holding Co., Ltd. legal person Ford Motor Company Foreign legal 32 276,228,394 0 0 person China Securities Other 2.63 22,743,584 0 0 Corporation Limited Shanghai Automotive State-owned 1.51 13,019,610 0 0 Co., Ltd. legal person 2 Central Huijin State-owned 0.83 7,186,600 0 0 Investment Ltd. legal person JPMBLSA RE FTIF Foreign legal TEMPLETON CHINA 0.68 5,848,450 0 0 person FUND GTI 5497 Foreign legal GAOLING FUND, L.P. 0.63 5,439,086 0 0 person INVESCO FUNDS Foreign legal 0.58 5,035,746 0 0 SICAV person TEMPLETON Foreign legal DRAGON FUND, 0.56 4,836,708 0 0 person INC. TEMPLETON GBL INVSTMT Foreign legal TRST-TMPLTN 0.46 3,948,718 0 0 person EMGNG MKTS SMALL CAP FD Top ten shareholders holding unlimited tradable shares Shareholder Name Shares without Trading Share Type Restriction Jiangling Motor Holding Co., Ltd. 354,176,000 A share Ford Motor Company 276,228,394 B share China Securities Corporation Limited 22,743,584 A share Shanghai Automotive Co., Ltd. 13,019,610 A share Central Huijin Investment Ltd. 7,186,600 A share JPMBLSA RE FTIF TEMPLETON CHINA 5,848,450 B share FUND GTI 5497 GAOLING FUND,L.P. 5,439,086 B share INVESCO FUNDS SICAV 5,035,746 B share TEMPLETON DRAGON FUND,INC. 4,836,708 A share TEMPLETON GBL INVSTMT TRST-TMPLTN EMGNG MKTS SMALL 3,948,718 B share CAP FD Notes on association among None above-mentioned shareholders Notes on the participation of the top ten common shareholders in margin trading (if None any) Stock buy-back of top ten shareholders or top ten shareholders holding unlimited tradable shares in the reporting period □Yes □√No There was no Stock buy-back of top ten shareholders or top ten shareholders holding unlimited tradable shares in the reporting period. 3 2.2.2 Total number of shareholders holding preferred shares and top ten shareholders holding preferred shares at the end of reporting period □Applicable □√Not Applicable §3 Major Events 3.1 Causes and explanations of major changes of financial indicators compared with those of previous reporting period □√Applicable □Not Applicable In the first quarter of 2018, JMC sold 66,441 vehicles in total, including 22,387 JMC-brand light trucks, 9,342 JMC-brand light buses, 18,035 JMC-brand pickups, 5,122 SUVs, 10,019 Ford-brand commercial vehicles, 116 heavy trucks and 1,420 CKDs. Total sales volume decreased by 16% compared with the same period last year. Due to the sales volume decrease of passenger vehicle which is in the interim period and sales structure change, revenue and net profit during the reporting period were RMB 6,481 million and RMB 154 million, decreased 21% and 33% respectively compared with the same period last year. In the first quarter, the Company continues to consolidate its leadership position in light commercial vehicle market, and both JMC and Ford brand light bus and Yuhu Pickup hit the record high in March for single month volume. In the first quarter of 2018, compared with the same period last year, taxes and surcharges decreased by RMB 109 million, down 37%, mainly reflecting the decrease of consumption tax which is caused by passenger vehicle sales volume reduction. In the first quarter of 2018, compared with the same period last year, other income increase RMB 57 million, up 122%, primarily reflecting assets disposal revenue and the increase of government subsidies. The assets disposal is the land use right and the aboveground buildings of Transit Plant which has been moved to Xiaolan Site based on the urban planning and the company's development strategy. In the first quarter of 2018, compared with the same period last year, distribution expenses decreased RMB 517 million, down 73%, mainly reflecting the effect of implementing IFRS 15 -- Revenue from Contracts with Customers since January 1, 2018, and this affects the presentation between income statement accounts and does not actually affect the net profit. 4 In the first quarter of 2018, compared with the same period last year, operating profit decreased by RMB 84 million, down 43%, profit before income tax decreased by RMB 88 million, down 34%, primarily reflecting the change of sales structure and the volume decrease of passenger vehicle in the interim period. In the first quarter of 2018, compared with the same period last year, net cash generated from operating activities decreased by RMB 518 million, down 59%, mainly due to cash received from selling goods decreased. In the first quarter of 2018, compared with the same period last year, cash outflows from financing activities increased by RMB 1,584 million, up 26882%, mainly due to payment of 2017 interim special dividend. 3.2 Analysis of major events, their impacts and resolutions □Applicable □√Not Applicable 3.3 Overdue commitment of the Company, the shareholder, the actual controlling party, the acquirer, the Director, the Supervisor, the senior executive or other related party of the Company □Applicable □√Not Applicable There was no overdue commitment of the Company, the shareholder, the actual controlling party, the acquirer, the Director, the Supervisor, the senior executive or other related party of the Company in the reporting period. 3.4 Forecast on 2018 first half-year operating performance Warning and explanations as to the situation that accumulated net profit during the period from year beginning to the end of next reporting period may be negative or, compared with the same period last year, may have a substantial change □Applicable □√Not Applicable 3.5 Securities investment □√Applicable □Not Applicable Type of Securities Monetary Fund Other Total Code of Securities 370011 securities Name of Securities CIFM investment monetary fund held at the end B of the term Initial investment amount (RMB 50,000 0 50,000 thousand) Stock number at the starting of the 0 0 0 5 period (share) Shareholding ratio at the starting of 0.00% - - the period Stock number at the end of the 0 0 0 period (share) Shareholding ratio at the end of the 0.00% - - period Book value at the end of the period 0 0 0 (RMB thousand) Profit & loss during the reporting 1,562 0 1,562 period (RMB thousand) Accounting subjects Transactional - - financial assets Source of stock China - - Construction Bank agency marketing Disclosure date of Board of Directors - approving the securities investment Disclosure date of shareholders’ meeting - approving the securities investment (if any) 3.6 Derivative investment □Applicable □√Not Applicable There was no derivative investment in the reporting period. 3.7 External research and media interview to the Company in the reporting period □Applicable □√Not Applicable 3.8 Outside guarantee in breach of laws & regulations □Applicable □√Not Applicable There was no outside guarantee in breach of laws & regulations in the reporting period. 3.9 Non-operating funding in the Company occupied by controlling shareholder and its affiliates □Applicable □√Not Applicable There was no non-operating funding in the Company occupied by controlling shareholder and its affiliates in the reporting period. 6 Jiangling Motors Corporation, Ltd. Consolidated Balance Sheet March 31, 2018 (All amounts in RMB thousands unless otherwise stated) 31 March 2018* 31 December 2017 ASSETS Non-current assets Property, plant and equipment 6,586,017 6,714,088 Lease prepayment 612,941 616,834 Intangible assets 193,650 197,860 Investments accounted for using the equity method 38,557 37,874 Other non-current assets - 478 Deferred income tax assets 671,857 690,253 Total non-current assets 8,103,022 8,257,387 Current assets Inventories 2,345,643 2,339,304 Trade, other receivables and prepayments 4,317,289 4,555,934 Cash and cash equivalents 7,966,000 11,137,723 Assets classified as held for sale - 93,413 Total current assets 14,628,932 18,126,374 Total assets 22,731,954 26,383,761 EQUITY Equity attributable to shareholders of the Company Share capital 863,214 863,214 Share premium 816,609 816,609 Other reserves 450,914 450,914 Retained earnings 8,595,204 10,441,665 Total equity 10,725,941 12,572,402 LIABILITIES Non-current liabilities Borrowings 3,706 3,851 Deferred income tax liabilities 26,568 26,736 Retirement benefit obligations 53,169 54,764 Provisions for warranty and other liabilities 174,589 184,688 Other non-current liabilities 220 240 Total non-current liabilities 258,252 270,279 Current liabilities Financial liabilities at fair value through profit or loss 16,162 8,493 Trade and other payables 11,553,666 13,222,540 Current income tax liabilities - 114,906 Borrowings 412 428 Retirement benefits obligations 4,420 4,420 Provisions for warranty and other liabilities 173,101 190,293 Total current liabilities 11,747,761 13,541,080 Total liabilities 12,006,013 13,811,359 Total equity and liabilities 22,731,954 26,383,761 *: Unaudited financial indexes 7 Jiangling Motors Corporation, Ltd. Consolidated Income Statement 2018 First quarter (All amounts in RMB thousands unless otherwise stated) 2018 first quarter* 2017 first quarter* Revenue 6,481,073 8,155,676 Taxes and surcharges (183,607) (292,971) Cost of sales (5,603,281) (6,465,003) Gross profit 694,185 1,397,702 Distribution expenses (187,621) (704,191) Administrative expenses (496,998) (542,735) Other income 103,349 46,501 Operating profit 112,915 197,277 Finance income 60,534 62,173 Finance expenses (2,178) (979) Finance income -net 58,356 61,194 Share of profit of investments accounted for using the equity method 683 1,695 Profit before income tax 171,954 260,166 Income tax expense (18,348) (31,558) Profit for the period 153,606 228,608 Profit attribute to: Owners of the Company 153,606 228,608 Total comprehensive income for the period 153,606 228,608 Total comprehensive income attributable to: Owners of the Company 153,606 228,608 Earnings per share for profit attributable to the shareholders of the Company for the period (expressed in RMB per share) - Basic and diluted 0.18 0.26 *: Unaudited financial indexes 8 Jiangling Motors Corporation, Ltd. Consolidated cash flow statement 2018 First Quarter (All amounts in RMB thousands unless otherwise stated) 2018 first quarter* 2017 first quarter* Cash flows from operating activities Cash generated from operations (1,282,311) (780,507) Interest paid (120) (120) Income Tax paid (114,906) (98,860) Net cash generated from operating activities (1,397,337) (879,487) Cash flows from investing activities Purchase of financial assets at fair value through profit or loss (1,170,000) - Purchase of property, plant and equipment (“PPE”) (224,007) (205,503) Other cash paid relating to investment activities (5,829) (2,479) Proceeds from disposal of PPE 65 2 Proceeds from repayment of financial assets at fair value through profit or loss 1,170,000 - Investment income received 1,562 - Interest received 43,119 36,735 Other cash received from investing activities 733 2,729 Net cash used in investing activities (184,357) (168,516) Cash flows from financing activities Repayments of borrowings - (5,000) Dividends paid to shareholders of the Company (1,588,924) (893) Other cash paid relating to financing activities (1,105) - Net cash used in financing activities (1,590,029) (5,893) Net decrease in cash and cash equivalents (3,171,723) (1,053,896) Cash and cash equivalents at beginning of year 11,137,723 11,666,222 Effects of exchange rate changes - - Cash and cash equivalents at end of period 7,966,000 10,612,326 *: Unaudited financial indexes Board of Directors Jiangling Motors Corporation, Ltd. April 26, 2018 9