Share’s name:
Jiangling Motors
Share’s code:
000550
No.:
2009-027
Jiangling B
200550
Jiangling Motors Corporation, Ltd.
2009 Third Quarter Report
§1 Important Note
1.1 The Board of Directors and its members, the Supervisory Board and its members, and the senior executives are jointly and severally liable for the truthfulness, accuracy and completeness of the information disclosed in the report and undertake that the information disclosed herein does not contain false statements, misrepresentations or major omissions.
1.2 The Directors, Supervisors, and Senior Management undertake and have no objection to the truthfulness, accuracy and completeness of the contents of the Third Quarter Report.
1.3 Approval of this report was obtained by a paper meeting. Mr. Cui Yunjiang resigned from his directorship in the Company due to work reason. All other directors signed the resolution of this meeting.
1.4 The financial statements in this Quarterly Report are not audited.
1.5 Chairman Wang Xigao, President Yuan-Ching Chen, CFO Joseph Verga and Chief of Finance Department, Wu Jiehong, confirm that the financial statements in this Quarterly Report are truthful and complete.
1.6 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
At the end of reporting period
At the end of the previous year
Change (%)
Total Assets
7,438,040
5,963,778
24.72
Shareholder’s equity Attributable to the Equity Holders of the Company
4,556,750
4,050,382
12.50
Share Capital
863,214
863,214
0
Net Assets Per Share Attributable to the Equity Holders of the Company (RMB)
5.28
4.69
12.50
Reporting period
(2009 third quarter)
Change (%)
Beginning of year to end of reporting period
Change (%)
Revenue
2,776,585
30.94
7,499,031
11.84
Profit Attributable to the Equity Holders of the Company
335,480
213.53
765,332
20.05
Net Cash Generated From Operating Activities
-
-
2,355,716
888.10
Net Cash Flow Per Share from Operating Activities (RMB)
-
-
2.73
888.10
Basic Earnings Per Share (RMB)
0.39
213.53
0.89
20.05
Diluted Earnings Per Share (RMB)
0.39
213.53
0.89
20.05
Return on Net Asset Ratio (%)
7.36
Up 4.54 percentage points
16.80
Up 0.78 percentage points
22.2 Total number of shareholders and top ten shareholders holding unlimited tradable shares as at the end of reporting period
Total shareholders at the end of reporting period
JMC had 23,218 shareholders, including 14,263 A-share holders and 8,955 B-share holders, as of September 30, 2009.
Top ten shareholders holding unlimited tradable shares
Name
Shares as of September 30, 2009
Share Type
Jiangling Motor Holding Co., Ltd. （”JMH”）
354,176,000
A share
Ford Motor Company
258,964,200
B share
Bosera Thematic Sector Equity Securities Investment Fund
13,304,508
A share
Shanghai Automotive Co., Ltd.
13,019,610
A share
Bosera Emerging Growth Securities Investment Fund
8,700,000
A share
Dragon Billion China Master Fund
8,089,221
B share
Abn Amro Teda Evaluation Securities Investment Fund
6,990,004
A share
First State Cinda Leaders Growth Equity Securities Investment Fund
5,995,987
A share
Bank of Communications Schroder Blue Chip Securities Investment Fund
5,975,711
A share
Changsheng Tongde Thematic Growth Securities Investment Fund
5,500,928
A share
§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 nine months of 2009, the Company achieved a sales volume of 82,718 units, including 34,403 JMC-brand trucks, 24,795 JMC-brand pickups and SUVs, and 23,520 Ford-brand commercial vehicles. Total sales volume was up 10% from the same period last year. Under IFRS, revenue and net profit for the first nine months of 2009 was RMB 7,499 million and RMB 765 million, up 11.84% and 20.05% respectively from the same period last year.
In the third quarter of 2009, net profit was RMB 335 million, up 213.53% from the same period last year, and gross profit margin was 26%, approximately up 6 percentage points from the same period last year, primarily reflecting sales volume increase and material cost decrease.
Cash and cash equivalents at the end of the reporting period were increased by RMB 1,714 million, up 113% from the end of 2008, and net cash generated from operating activities in the first nine months of 2009 increased by 2,117 million, up 888% from the same period last year, primarily reflecting sales increase, reduction of receivables and inventories, increases in account & bills 3payables to suppliers, advances from dealers, and tax payable to tax authorities.
Trade and other payables increased by RMB 942 million, up 60% from the end of 2008, primarily reflecting production volume increase.
Income tax expenses in the reporting period were increased by RMB 36 million, up 165% compared with the same period last year, primarily reflecting the increase of PBT.
3.2 Analysis of major events, their impacts and resolutions
□Applicable □√Not Applicable
3.3 Implementation of commitments made by the Company, shareholders or actual controlling parties
Item
Commitments’ Content
Implementation of commitments
Share reform
*
In the reporting period, JMH exercised its commitments sincerely and did not breach the promise.
Shares trading restriction
None
N/A
Acquisition report or Statement of changes in equity
None
N/A
Major asset restructuring
None
N/A
Initial Public Offering
None
N/A
Other commitments (including additional commitments)
None
N/A
*JMH, which holds 41.03% of JMC total shares, issued letters of commitment, and declared and promised the following:
(1)
according to the requirements of Rules on Implementing the Full Tradable Share Reform of the Listed Companies, legal commitments will be fulfilled in accordance with provisions of the stock exchange rules, regulations and laws;
(2)
the promisor ensures that it will compensate losses resulting from partial or complete non-fulfillment of its promises to other shareholders; and
(3)
the promisor will fulfill its commitments faithfully and accept relevant legal responsibility, and it will not transfer its shares unless the transferee agrees and accepts liability to undertake the responsibility of the promise.
JMH promises specifically to pay the consideration on behalf of the unlisted-share holders who opposed the Share Reform or did not express their
4opinions. The above-mentioned unlisted-share holders should repay the consideration paid by JMH and the interest, or obtain written consent from JMH, if they want to list their shares.
3.4 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 Explanations on other major events
3.5.1 External research and media interviews with the Company in the reporting period
Date
Place
Communication Method
Object
Information discussed and sources offered
July 8, 2009
In the Company
Oral Communication
Eleven analysts from Shenyin & Wanguo Securities Co., Ltd., Everbright Securities Co., Ltd., SYWG Bnp Paribas Asset Management Co., Ltd., Abn Amro Teda Fund Management Co., Ltd., Bosera Fund Management Co., Ltd., Huaan Fund Management Co., Ltd., Harvest Fund Management Co., Ltd.
JMC Operating highlights
July 22, 2009
In the Company
Oral Communication
Two analysts from GF Fund Management Co., Ltd., China Galaxy Securities Limited
JMC Operating highlights
August 4, 2009
In the Company
Oral Communication
Four analysts from BOC International (China) Limited, China Post Fund Management Co., Ltd., Soohow Asset Management Co., Ltd.
JMC Operating highlights
August 18, 2009
In the Company
Oral Communication
An analyst from Rongtong Fund Management Co., Ltd.
JMC Operating highlights
August 19, 2009
In the Company
Oral Communication
Two analysts from China Post Fund Management Co., Ltd., Lion Fund Management Co., Ltd.
JMC Operating highlights
August 27, 2009
In the Company
Oral Communication
Six analysts from Everbright Securities Co., Ltd., Changsheng Fund Management Co., Ltd., Harvest Fund Management Co., Ltd., PICC, Bosera Fund Management Co., Ltd., E Fund Management Co., Ltd.
JMC Operating highlights
5September 9, 2009
In the Company
Oral Communication
Five analysts from Dongxing Securities Co., Ltd., Huatai Securities Co., Ltd., China Galaxy Securities Limited, Guoyuan Securities Co., Ltd.
JMC Operating highlights
Board of Directors
Jiangling Motors Corporation, Ltd.
October 28, 2009
6Appendix
Jiangling Motors Corporation, Ltd.
Consolidated Balance Sheet
(Prepared under International Financial Reporting Standards)
(All amounts in RMB thousands)
30 September 2009*
31 December 2008
ASSETS
Non-current assets
Property, plant and equipment
2,471,358
2,362,871
Lease prepayment
286,024
290,916
Intangible assets
34,439
35,680
Investments in associates
15,658
16,136
Other non-current assets
200
300
Deferred income tax assets
96,813
105,233
2,904,492
2,811,136
Current assets
Inventories
875,660
1,057,873
Trade and other receivables
432,559
583,161
Cash and cash equivalents
3,225,329
1,511,608
4,533,548
3,152,642
Total assets
7,438,040
5,963,778
EQUITY
Capital and reserves attributable to the Company’s equity holders
Share capital
863,214
863,214
Share premium
816,609
816,609
Other reserves
457,650
457,650
Retained earnings
2,419,277
1,912,909
4,556,750
4,050,382
Minority interest in equity
123,529
100,708
Total equity
4,680,279
4,151,090
LIABILITIES
Non-current liabilities
Borrowings
7,826
8,056
Retirement benefit obligations
67,069
72,602
Warranty provisions
121,213
99,079
196,108
179,737
Current liabilities
Trade and other payables
2,522,256
1,580,530
Borrowings
25,447
39,117
Retirement benefits obligations
13,950
13,304
2,561,653
1,632,951
Total liabilities
2,757,761
1,812,688
Total equity and liabilities
7,438,040
5,963,778
*: Unaudited financial indexes
7Jiangling Motors Corporation, Ltd.
Consolidated Income Statement
(Prepared under International Financial Reporting Standards)
(All amounts in RMB thousands)
2009.7.1-
2009.9.30*
2008.7.1-
2008.9.30*
2009.1.1-
2009.9.30*
2008.1.1-
2008.9.30*
Revenue
2,776,585
2,120,529
7,499,031
6,705,259
Sales tax
(50,892)
(33,189)
(127,137)
(112,618)
Cost of sales
(1,998,445)
(1,658,785)
(5,548,357)
(5,116,775)
Gross profit
727,248
428,555
1,823,537
1,475,866
Distribution costs
(215,850)
(176,063)
(535,004)
(541,723)
Administrative expenses
(134,821)
(146,059)
(390,199)
(398,562)
Other income
3,050
687
5,343
167,514
Operating profit
379,627
107,120
903,677
703,095
Finance income
18,771
20,460
40,555
46,402
Finance costs
(1,706)
(1,262)
(3,186)
(2,682)
Finance income -net
17,065
19,198
37,369
43,720
Share of profit of associates
1,899
1,280
3,816
4,774
Profit before income tax
398,591
127,598
944,862
751,589
Income tax expense
(58,304)
(21,995)
(156,709)
(110,004)
Profit for the period
340,287
105,603
788,153
641,585
Attributable to:
Equity holders of the Company
335,480
107,000
765,332
637,488
Minority interest
4,807
(1,397)
22,821
4,097
340,287
105,603
788,153
641,585
Earnings per share for profit attributable to the equity holders of the Company
(expressed in RMB per share)
- Basic and diluted
0.39
0.12
0.89
0.74
*: Unaudited financial indexes
89
Jiangling Motors Corporation, Ltd.
Consolidated cash flow statement
(Prepared under International Financial Reporting Standards)
(All amounts in RMB thousands)
2009.7.1-2009.9.30*
2009.1.1-2009.9.30*
Cash flows from operating activities
Cash generated from operations
682,640
2,429,117
Interest paid
(1,006)
(1,887)
Income Tax paid
(65,208)
(71,514)
Net cash generated from operating activities
616,426
2,355,716
Cash flows from investing activities
Purchase of property, plant and equipment(“PPE”)
(234,549)
(424,373)
Proceeds from disposal of PPE
5,675
7,664
Interest received
13,175
36,184
Dividends received
4,294
11,238
Net cash used in investing activities
(211,405)
(369,287)
Cash flows from financing activities
Proceeds from borrowings
10,000
45,000
Repayments of borrowings
(10,000)
(58,901)
Dividends paid to the Company’s shareholders
(258,024)
(258,024)
Other cash paid relating to financing activities
(554)
(735)
Net cash used in financing activities
(258,578)
(272,660)
Net increase in cash and cash equivalents
146,443
1,713,769
Cash and cash equivalents at beginning of period
-
1,511,608
Cash and cash equivalents at 30 June 2009
3,078,835
-
Effects of exchange rate changes
51
(48)
Cash and cash equivalents at end of period
3,225,329
3,225,329
*: Unaudited financial indexes
