Share’s name:
Jiangling Motors
Share’s code:
000550
No.:
2010-011
Jiangling B
200550
Jiangling Motors Corporation, Ltd.
2010 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 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 First Quarter Report.
1.3 All the Directors were present at the Board meeting.
1.4 The financial statements in this Quarterly Report are not audited.
1.5 Chairman Wang Xigao, President Yuan-Ching Chen, CFO Michael Joseph Brielmaier and Chief of Finance Department, Ding Ni, 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
8,886,021
8,294,346
7.13
Shareholder’s equity Attributable to the Equity Holders of the Company
5,337,843
4,843,947
10.20
Share Capital
863,214
863,214
0
Net Assets Per Share Attributable to the Equity Holders of the Company (RMB)
6.18
5.61
10.20
Reporting period
Same period last year
Change (%)
Revenue
3,565,674
2,157,827
65.24
Profit Attributable to the Equity Holders of the Company (RMB)
493,896
181,764
171.72
Net cash generated from operating activities
679,799
1,105,647
-38.52
Net cash per share generated from operating activities (RMB)
0.79
1.28
-38.52
Basic earnings per share (RMB)
0.57
0.21
171.72
Diluted earnings per share (RMB)
0.57
0.21
171.72
Weighted Average Return on Net Asset Ratio (%)
9.70
4.39
Up 5.31
percentage points
22.2 Total number of shareholders and top ten shareholders holding unlimited tradable shares at the end of reporting period
Total shareholders at the end of reporting period
JMC had 28,440 shareholders, including 20,526 A-share holders and 7,914 B-share holders, as of March 31, 2010.
Top ten shareholders holding unlimited tradable shares
Name
Shares as of March 31, 2010
Type of share
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
14,881,049
A share
Shanghai Automotive Co., Ltd.
13,019,610
A share
Dragon Billion China Master Fund
9,684,488
B share
ChinaAMC Growth Securities Investment Fund
6,307,128
A share
Bosera Emerging Growth Securities Investment Fund
6,000,000
A share
PICC Life Insurance Company Limited
5,298,970
A share
China Life Insurance (Group) Company
5,276,172
A share
GTJA-Allianz Selected Securities Investment Fund
4,900,000
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 quarter of 2010, JMC sold 41,300 vehicles, including 15,263 JMC-brand trucks, 14,599 JMC-brand pickups and SUVs, and 11,438 Ford-brand commercial vehicles. Total sales volume was up 70% from the same period last year. Revenue and net profit in the reporting period were RMB 3,566 million and RMB 494 million, up 65.24% and 171.72% respectively from same period last year.
In the first quarter of 2010, JMC achieved 26% gross profit margin, up 4 percentage points from the same period last year. This profit margin increase is primarily explained by mix changes and supplier components price reductions.
Trade and other receivables at the end of the reporting period were increased by RMB 123 million, or 34%, from the end of 2009, primarily reflecting sales increase.
Current income tax liabilities at the end of the reporting period were increased by RMB 43 million, up 151% from the end of 2009, primarily reflecting incremental tax due to the increase of revenue and profit.
3Distribution costs at the end of the reporting period was increased by RMB 58 million, or 46%, from the same period last year, primarily reflecting volume-related changes including vehicle delivery costs, warranty and promotion expenses.
Administrative expenses at the end of the reporting period was increased by RMB 35 million, or 38%, from the same period last year, primarily reflecting research and development spending increase.
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
Promisor
Content of Commitments
Implementation of commitments
Share reform
JMH
*
In the reporting period, JMH exercised its commitments sincerely and did not breach the promise.
Trading Restriction on Shares
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
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 laws and regulations;
(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 oppose the Share Reform or did not express their opinions. The above-mentioned unlisted-share holders should repay the consideration paid by JMH and the interest, or obtain written consent from
4JMH, 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
It’s estimated that the net profit in First Half of 2010 will increase between 70% and 120% from same period last year. Net profit and earnings per share in First Half of 2009 was RMB 432,697 thousand and RMB 0.50 respectively. Profit increase is driven primarily by the substantial increase in sales volume compared with same period last year.
3.5 Explanations on other major events
3.5.1 Securities investments
□Applicable □√Not Applicable
3.5.2 External research and media interview to the Company in the reporting period
Date
Place
Communication Method
Object
Information discussed and sources offered
January 6, 2010
In the Company
Oral Communication
Four analysts from Huatai Securities Co., Ltd.
JMC Operating highlights
January 15, 2010
In the Company
Oral Communication
Four analysts from Haitong Securities Company Limited, Guotai Junan Securities Co., Ltd., Rongtong Fund Management Co., Ltd., Dacheng Fund Management Co., Ltd.
JMC Operating highlights
January 22, 2010
In the Company
Oral Communication
An analysts from GTJA-Allianz Fund Management Co., Ltd.
JMC Operating highlights
January 29, 2010
In the Company
Oral Communication
Four analysts from GF Securities Co., Ltd., PICC Asset Management Company Limited, Shenzhen Shangcheng Asset Management Ltd., CongRong Investment Management Co., Ltd., Shanghai
JMC Operating highlights
February 3, 2010
In the Company
Oral Communication
An analysts from Huachuang Securities Co., Ltd.
JMC Operating highlights
February
In the
Oral
Five analysts from
JMC Operating highlights
55, 2010
Company
Communication
Industrial Securities Co., Ltd., China Asset Management Co., Ltd., Harvest Fund Management Co., Ltd., Orient Securities Company Limited
March 10, 2010
In the Company
Oral Communication
Two analysts from China Securities Co., Ltd., Penghua Fund Management Co., Ltd.
JMC Operating highlights
March 17, 2010
In the Company
Oral Communication
Two analysts from Ping An Securities Company Ltd., Lion Fund Management Co.,Ltd.
JMC Operating highlights
March 19, 2010
In the Company
Oral Communication
Three analysts from China International Capital Corporation Limited., Guotai Asset Management Co., Ltd.
JMC Operating highlights
March 24, 2010
In the Company
Oral Communication
An analysts from Cinda Securities Co., Ltd.
JMC Operating highlights
March 31, 2010
In the Company
Oral Communication
An analysts from CSC Capital Partners
JMC Operating highlights
3.5.3 Explanations on other major events
□Applicable □√Not Applicable
3.6 Financial derivates investments
□Applicable □√Not Applicable
Board of Directors
Jiangling Motors Corporation, Ltd.
April 24, 2010
6Appendix
Jiangling Motors Corporation, Ltd.
Consolidated Balance Sheet
March 31, 2010
(Prepared under International Financial Reporting Standards)
(All amounts in RMB thousands)
31 March 2010*
31 December 2009
ASSETS
Non-current assets
Net property, plant and equipment
2,462,256
2,491,159
Lease prepayment
282,762
284,393
Intangible assets
29,635
31,856
Investments in associates
18,752
17,292
Deferred income tax assets
121,277
134,133
Subtotal Non-current assets
2,914,682
2,958,833
Current assets
Inventories
956,858
1,059,798
Trade and other receivables
485,078
361,892
Cash and cash equivalents
4,529,403
3,913,823
Subtotal current assets
5,971,339
5,335,513
Total assets
8,886,021
8,294,346
EQUITY
Capital and reserves attributable
Share capital
863,214
863,214
Share premium
816,609
816,609
Other reserves
457,650
457,650
Retained earnings
3,200,370
2,706,474
Subtotal
5,337,843
4,843,947
Minority interest in equity
107,294
102,906
Total equity
5,445,137
4,946,853
LIABILITIES
Non-current liabilities
Borrowings
7,599
7,601
Retirement benefit obligations
66,435
70,475
Warranty provisions
125,693
122,361
Subtotal Non-current liabilities
199,727
200,437
Current liabilities
Trade and other payables
3,130,057
3,079,345
Current income tax liabilities
72,087
28,716
Borrowings
25,465
25,447
Retirement benefits obligations
13,548
13,548
Subtotal current liabilities
3,241,157
3,147,056
Total liabilities
3,440,884
3,347,493
Total equity and liabilities
8,886,021
8,294,346
*: Unaudited financial indexes
7Jiangling Motors Corporation, Ltd.
Consolidated Income Statement
2010 First quarter
(Prepared under International Financial Reporting Standards)
(All amounts in RMB thousands)
2010 first quarter*
2009 first quarter*
Revenue
3,565,674
2,157,827
Sales tax
(60,984)
(37,199)
Cost of sales
(2,630,050)
(1,682,166)
Gross profit
874,640
438,462
Distribution costs
(183,800)
(126,145)
Administrative expenses
(129,347)
(93,970)
Other income
1,135
(205)
Operating profit
562,628
218,142
Finance income
19,043
12,600
Finance costs
(444)
(1,007)
Finance income -net
18,599
11,593
Share of profit of associates
1,460
1,331
Profit before income tax
582,687
231,066
Income tax expense
(84,403)
(43,061)
Profit for the period
498,284
188,005
Attributable to:
Equity holders of the Company
493,896
181,764
Minority interest
4,388
6,241
498,284
188,005
Earnings per share for profit
(expressed in RMB per share)
- Basic and diluted
0.57
0.21
*: Unaudited financial indexes
89
Jiangling Motors Corporation, Ltd.
Consolidated cash flow statement
2010 First Quarter
(Prepared under International Financial Reporting Standards)
(All amounts in RMB thousands)
2010 first quarter*
2009 first quarter*
Cash flows from operating activities
Cash generated from operations
708,940
1,106,154
Interest paid
(425)
(507)
Income Tax paid
(28,716)
-
Net cash generated from operating activities
679,799
1,105,647
Cash flows from investing activities
Purchase of property, plant and equipment(“PPE”)
(81,663)
(115,118)
Proceeds from disposal of PPE
1,566
79
Interest received
15,957
13,714
Dividends received
-
6,944
Net cash used in investing activities
(64,140)
(94,381)
Cash flows from financing activities
Proceeds from borrowings
25,019
35,000
Repayments of borrowings
(25,000)
(38,678)
Other cash paid relating to financing activities
(104)
(95)
Net cash used in financing activities
(85)
(3,773)
Net increase/(decrease) in cash and cash
615,574
1,007,493
Cash and cash equivalents at beginning of year
3,913,823
1,511,608
Effects of exchange rate changes
6
(119)
Cash and cash equivalents at end of period
4,529,403
2,518,982
*: Unaudited financial indexes
