Share’s name: Jiangling Motors Share’s code: 000550 No.: 2014-017
Jiangling B 200550
Jiangling Motors Corporation, Ltd.
2014 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 confirm 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 Directors were present at the Board meeting in person.
1.4 The financial statements in this Quarterly Report are not audited.
1.5 Chairman Wang Xigao, President Yuan-Ching Chen, CFO Dennis Leu 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.
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§2 Brief Introduction
2.1 Main accounting data and financial indicators
Unit: RMB’000
2014 2013
Change (%)
First Quarter First Quarter
Revenue 6,190,539 4,900,875 26.31
Profit Attributable to the
Equity Holders of the 598,647 499,879 19.76
Company
Net Cash Generated
617,370 886,373 -30.35
From Operating Activities
Basic Earnings Per Share
0.69 0.58 19.76
(RMB)
Diluted Earnings Per
0.69 0.58 19.76
Share (RMB)
Weighted Average Return Up 0.32
6.32 6.00
on Net Asset Ratio (%) percentage point
March 31, December 31,
Change (%)
2014 2013
Total Assets 17,103,962 16,484,699 3.76
Shareholders’ Equity
Attributable to the Equity 9,772,646 9,173,999 6.53
Holders of the Company
2.2 Total number of shareholders and top ten shareholders at the end of
reporting period
JMC had 18,851 shareholders, including 14,324 A-share holders and 4,527
Total shareholders
B-share holders as of March 31, 2014.
Top ten shareholders
Shares due
Shareholding Shares at the Shares with
Shareholder to
Shareholder Name Percentage End of 2014 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
(“Ford”) person
Shanghai Automotive State-owned
1.51 13,019,610 0 0
Co., Ltd. Legal person
Canada Pension Plan Foreign legal
0.92 7,923,990 0 0
Investment Board person
CICC (Hong Kong) Foreign legal
0.75 6,487,675 0 0
Asset Management person
2
Co., Ltd.
Jpmblsa Re Ftif
Foreign legal
Templeton China Fund 0.70 6,071,850 0 0
person
Gti 5497
National Social Domestic
Security Fund- non-state-owned 0.65 5,635,460 0 0
Portfolio 418 legal person
Morgan Stanley & Co. Foreign legal
0.64 5,545,489 0 0
International Plc person
Bank of
Communications Domestic
Schroder Selected non-state-owned 0.57 4,909,986 0 0
Securities Investment legal person
Fund
Bank of
Communications Domestic
Schroder Prudent & non-state-owned 0.55 4,785,584 0 0
Mixed Securities legal person
Investment Fund
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
Shanghai Automotive Co., Ltd. 13,019,610 A share
Canada Pension Plan Investment Board 7,923,990 A share
CICC (Hong Kong) Asset Management
6,487,675 A share
Co., Ltd.
Jpmblsa Re Ftif Templeton China Fund
6,071,850 B share
Gti 5497
National Social Security Fund- Portfolio
5,635,460 A share
418
Morgan Stanley & Co. International Plc 5,545,489 A share
Bank of Communications Schroder
4,909,986 A share
Selected Securities Investment Fund
Bank of Communications Schroder
Prudent & Mixed Securities Investment 4,785,584 A share
Fund
Notes on association among Bank of Communications Schroder Selected Securities
above-mentioned shareholders Investment Fund and Bank of Communications Schroder
Prudent & Mixed Securities Investment Fund are in custody
of Bank of Communications Schroder Fund Management
Co., Ltd.
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§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 2014, JMC sold 67,125 vehicles, including 21,758
JMC-brand trucks, 19,907 JMC-brand pickups, 8,183 Yusheng-brand SUVs,
and 17,277 Ford-brand commercial vehicles. Total sales volume increased by
19% compared with the same period last year. Revenue and net profit during
the reporting period were RMB 6,191 million and RMB 599 million, up 26.3%
and 19.8% respectively compared with the same period last year.
In the first quarter of 2014, JMC achieved 24.6% gross profit margin, a
decrease of 1.2 percent compared with the same period last year, mainly
attributed to changes of product line mix.
Current income tax liabilities at the end of the reporting period increased by
RMB 67 million, or 78% from the end of 2013, primarily reflecting the increase
of income tax payable.
Sales tax in the first quarter of 2014 increased by RMB 77 million, up 46%
compared with the same period last year, primarily reflecting the volume
increasing and higher mixes of SUV and Transit vehicle.
Distribution costs in the first quarter of 2014 increased by RMB 170 million, up
73% compared with the same period last year, primarily reflecting the growth
of product volume.
Other income in the first quarter of 2014 increased by RMB 89 million
compared with the same period last year, mainly reflecting government grants
appropriated by Qingyunpu District, Nanchang City and Xiaolan Economy
Development Zone, Nanchang County.
Finance income-net in the first quarter of 2014 increased by RMB 22 million,
up 65% compared with the same period last year, primarily reflecting higher
bank deposit interests.
2014 year-to-date net cash used in operating activities was RMB 617 million,
decreased by RMB 269 million, down 30% compared with the same period of
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2013, primarily reflecting the changes of operating activities.
2014 year-to-date net cash used in investing activities was RMB 175 million,
decreased by RMB 218 million, down 56% compared with the same period of
2013, primarily reflecting the payment for acquiring the equity of Taiyuan
Changan Heavy Truck Company in the first quarter of 2013.
2014 year-to-date net cash used in financing activities was 0.16 million,
decreased by RMB 550 million, down 100% compared with the same period of
2013, primarily reflecting the repayment of borrowing of JMC Heavy Duty
Vehicle Co., Ltd. in the first quarter of 2013.
3.2 Analysis of major events, their impacts and resolutions
□Applicable □√Not Applicable
3.3 Commitments made by the Company or the shareholder holding 5% or
more of the Company shares during the reporting period
□√Applicable □Not Applicable
Promisor Content of Time Term of Implementation of
Item
Commitments Commitments commitments
Share reform None None None N/A
Acquisition report or
Statement of changes None None None N/A
in equity
Asset restructuring None None None N/A
Initial Public Offering or
None None None N/A
re-funding
Ford December within 6 months In the reporting period, Ford
2, 2013 as of November exercised its commitments
Other commitments *
29, 2013 sincerely and did not breach
the promise.
* Ford undertakes that the additional shares acquired by it within 12 months as
of the First Shareholding Increase Date (January 21, 2013) will not exceed 2%
of the aggregate issued shares of the Company, and it will not reduce the
shares it acquires in this Shareholding Increase within 6 months as of the
completion date of this Shareholding Increase.
Ford acquired an aggregate of 17,264,194 B Shares of JMC by the method of
centralized bidding and block transaction during the period from January 21,
2013 to November 29, 2013, representing 2.000% of the aggregate issued
shares of JMC, and had finished this Shareholding Increase. After these
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shareholding increases, the B Shares of JMC held by Ford are 276,228,394
shares (of which 100,000,000 shares are indirectly held by Ford through
Citibank N.A. in the form of American Depositary Receipts), representing
32.000% of the aggregate issued shares of JMC.
3.4 Forecast on 2014 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 investments
□Applicable □√Not Applicable
3.6 Securities derivates investment
□Applicable □√Not Applicable
3.6.1 Balance of securities derivates at the end of reporting period
□Applicable □√Not Applicable
3.7 External research and media interview to the Company in the reporting
period
Date Place Communication Type of Object Information discussed
Method Object and sources offered
January In the Oral Institution Seven analysts from JMC Operating highlights
9, 2014 Company Communication Orient Securities
Company Limited,
Bank of
Communications
Schroder Fund
Management Co., Ltd.,
China Asset
Management Co., Ltd.,
First Capital Securities
Co., Ltd., Everbright
Pramerica Fund
Management Co., Ltd.,
Minsheng Tonghui
Asset Management
Co., Ltd., Industrial
Securities Co., Ltd.
January In the Oral Institution Two analysts from JMC Operating highlights
13, 2014 Company Communication Shanghai Heqi
Investment Consulting
Company, Owl Creek
Asset Management LP.
January In the Oral Institution An analyst from CLSA JMC Operating highlights
20, 2014 Company Communication Asia-Pacific Markets
February In the Oral Institution Two analysts from JMC Operating highlights
14, 2014 Company Communication UBS Securities Co.,
Ltd.
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February In the Oral Institution Three analysts from JMC Operating highlights
19, 2014 Company Communication Beijing Runhui Asset
Management Co., Ltd.,
China Merchants
Securities Co., Ltd.,
CITIC Securities
Company Limited
March 17, In the Oral Institution An analyst from JMC Operating highlights
2014 Company Communication Changjiang Securities
Company Limited
March 25, In the Oral Institution An analyst from China JMC Operating highlights
2014 Company Communication International Capital
Corporation Limited
March 27, In the Oral Institution Six analysts from JMC Operating highlights
2014 Company Communication Heshi Investment
Consulting Company,
APS China Research
Pte Ltd., Soochow
Asset Management
Co., Ltd., Essence
Fund Management
Co., Ltd., UG
Investment Advisers
Limited, Industrial
Securities Co., Ltd.
Board of Directors
Jiangling Motors Corporation, Ltd.
April 26, 2014
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Appendix
Jiangling Motors Corporation, Ltd.
Consolidated Balance Sheet
March 31, 2014
(Prepared under International Financial Reporting Standards)
(All amounts in RMB thousands unless otherwise stated)
31 March 2014* 31 December 2013
RMB’000 RMB’000
ASSETS
Non-current assets
Property, plant and equipment (“PPE”) 5,215,287 5,149,137
Lease prepayment 601,281 604,831
Intangible assets 107,778 108,035
Investments accounted for using the equity method 38,851 34,682
Deferred income tax assets 328,178 302,351
6,291,375 6,199,036
Current assets
Financial assets at fair value through profit or loss 44 469
Inventories 1,596,029 1,745,927
Trade and other receivables 2,293,919 2,059,295
Cash and cash equivalents 6,922,595 6,479,972
10,812,587 10,285,663
Total assets 17,103,962 16,484,699
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 456,451 456,451
Retained earnings 7,636,372 7,037,725
9,772,646 9,173,999
Non-controlling interests - -
Total equity 9,772,646 9,173,999
LIABILITIES
Non-current liabilities
Borrowings 5,237 5,190
Deferred income tax liabilities 30,256 30,535
Retirement benefit obligations 46,556 48,788
Provisions for warranty and other liabilities 213,588 191,095
Other non-current liabilities 5,540 5,560
301,177 281,168
Current liabilities
Trade and other payables 6,868,643 6,934,919
Current income tax liabilities 152,880 86,001
Borrowings 403 399
Retirement benefits obligations 8,213 8,213
7,030,139 7,029,532
Total liabilities 7,331,316 7,310,700
Total equity and liabilities 17,103,962 16,484,699
*: Unaudited financial indexes
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Jiangling Motors Corporation, Ltd.
Consolidated Income Statement
2014 First quarter
(Prepared under International Financial Reporting Standards)
(All amounts in RMB thousands unless otherwise stated)
2014 first quarter* 2013 first quarter*
RMB’000 RMB’000
Revenue 6,190,539 4,900,875
Sales tax (241,923) (165,247)
Cost of sales (4,669,023) (3,635,962)
Gross profit 1,279,593 1,099,666
Distribution costs (402,069) (231,767)
Administrative expenses (328,119) (306,221)
Other income 89,730 239
Operating profit 639,135 561,917
Finance income 57,013 38,861
Finance costs (262) (4,569)
Finance income -net 56,751 34,292
Share of profit of investments
accounted for using the equity method 4,170 3,218
Profit before income tax 700,056 599,427
Income tax expense (101,409) (80,288)
Profit for the period 598,647 519,139
Other comprehensive income - -
Total comprehensive income for the period 598,647 519,139
Profit attribute to:
Equity holders of the Company 598,647 499,879
Non-controlling interests - 19,260
598,647 519,139
Total comprehensive income attributable to:
Equity holders of the Company 598,647 499,879
Non-controlling interests - 19,260
598,647 519,139
Earnings per share for profit attributable to
the equity holders of the Company
(expressed in RMB per share)
- Basic and diluted 0.69 0.58
*: Unaudited financial indexes
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Jiangling Motors Corporation, Ltd.
Consolidated cash flow statement
2014 First Quarter
(Prepared under International Financial Reporting Standards)
(All amounts in RMB thousands unless otherwise stated)
2014 first quarter* 2013 first quarter*
RMB’000 RMB’000
Cash flows from operating activities
Cash generated from operations 678,267 1,030,289
Interest paid (260) (5,165)
Income tax paid (60,637) (138,751)
Net cash generated from operating activities 617,370 886,373
Cash flows from investing activities
Purchase of held-to-maturity investments - (100,000)
Purchase of PPE (276,244) (220,865)
Acquisition of a subsidiary, net of cash acquired - (166,168)
Other cash paid relating to investing activities (70) -
Proceeds from disposal of PPE -
1,416 1,142
Interest received 100,308(70) 92,901
Other cash received from investing activities 1,416 153
Net cash used in investing activities (174,590) (392,837)
Cash flows from financing activities
Repayments of borrowings - (424,000)
Dividends paid to minority shareholders of a subsidiary - (125,638)
Other cash paid relating to financing activities (157) (245)
Net cash used in financing activities (157) (549,883)
Net increase/(decrease) in cash and cash equivalents 442,623 (56,347)
Cash and cash equivalents at beginning of year 6,479,972 5,559,693
Effects of exchange rate changes - -
Cash and cash equivalents at end of period 6,922,595 5,503,346
*: Unaudited financial indexes
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