Share’s name: Jiangling Motors Share’s code: 000550 No.: 2017-041 Jiangling B 200550 Jiangling Motors Corporation, Ltd. 2017 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 confirm that the information disclosed herein does not contain any false statement, misrepresentation or major omission. 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 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 Qiu Tiangao, CFO Gong Yuanyuan and Chief of Finance Department, Xie Wanzhao 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 At the end of the Change (%) reporting period previous year Total Assets 23,685,848 24,493,789 -3.30 Shareholder’s equity Attributable to the Equity 12,526,207 12,409,236 0.94 Holders of the Company Beginning of Reporting year to period Change (%) end of Change (%) (2017 third reporting quarter) period Revenue 6,768,706 5.45 22,435,182 30.21 Profit Attributable to the Equity Holders of the 90,628 -76.70 643,531 -41.15 Company Net Cash Generated From - - -1,385,148 -166.79 Operating Activities Basic Earnings Per Share 0.11 -76.70 0.75 -41.15 (RMB) Diluted Earnings Per Share 0.11 -76.70 0.75 -41.15 (RMB) Down 2.67 Down 4.68 Weighted Average Return on 0.74 percentage 5.10 percentage Net Asset Ratio (%) point points 2 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 JMC had 28,117 shareholders as of September 30, 2017, including 22,845 Total shareholders A-share holders and 5,272 B-share holders. Top ten shareholders Shareholding Shares as of Shares with Shares due Shareholder Shareholder Name Percentage September Trading to mortgage Type (%) 30, 2017 Restriction or frozen Jiangling Motor State-owned 41.03% 354,176,000 0 0 Holding Co., Ltd. legal person Ford Motor Company Foreign legal 32.00% 276,228,394 0 0 person China Securities Other 2.64% 22,743,584 0 0 Corporation Limited Shanghai Automotive State-owned 1.51% 13,019,610 0 0 Co., Ltd. Legal person 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 0.57% 4,887,508 0 0 DRAGON FUND,INC. person 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. 4,887,508 B share TEMPLETON GBL INVSTMT TRST-TMPLTN EMGNG MKTS SMALL 3,948,718 B share CAP FD 3 Notes on association among None. above-mentioned shareholders 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. 2.2.2 Total number of shareholders holding preferred shares and top ten shareholders holding preferred shares □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 three quarters of 2017, JMC sold 221,408 vehicles in total, up 19.99% compared with the same period last year; including 75,574 JMC-brand trucks, 49,570 JMC-brand pickups, 33,454 SUVs, 38,331 Ford-brand commercial vehicles, 20,179 JMC-brand light buses and 4,300 Transit CKDs. Revenue and net profit during the reporting period were RMB 22,435 million and RMB 644 million, increase 30.21% and decrease 41.15% respectively compared with the same period last year. Trade, other receivables and prepayments at the end of the reporting period increased by RMB 1,301 million, or 49.56% from the end of 2016, primarily reflecting the increase of dealer credit to support peak season sales and production balance, and the material purchasing increase due to higher production. Distribution costs in the third quarter of 2017 increased by 163 million, up 36.12% from the same period last year, primarily reflecting the increase of marketing expenses due to the severe competition situation. Profit after income tax in the third quarter of 2017 decreased by RMB 298 million, down 76.70% from the same period last year, primarily reflecting change of sales structure and the marketing expense and research expenditure increase. Distribution costs in the first three quarters of 2017 increased by RMB 676 4 million, up 55.92% from the same period last year, primarily reflecting the marketing and sales promotion expense increase. Profit before income tax in the first three quarters of 2017 decreased by RMB 544 million, down 44.05% from the same period last year, primarily reflecting the marketing expense increase and change of sales structure. Income tax expense in the first three quarters of 2017 decreased by RMB 94 million, down 66.31% from the same period last year, primarily reflecting the decrease of the profit. Net cash generated from operating activities in the first three quarters of 2017 decreased by RMB 3,459 million, down 166.79% from the same period last year, primarily reflecting the increase of receivables and payments generated by the increase of sales volume. 3.2 Analysis of major events, their impacts and resolutions □Applicable □√Not Applicable 3.3 Commitments of the Company, the shareholder, the actual controlling party, the acquirer, the Director, the Supervisor, the senior executive or the related party of the Company □Applicable □√Not Applicable 3.4 Forecast on 2017 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 There was no securities investment during the reporting period. 3.6 Securities derivates investment □Applicable □√Not Applicable There was no securities derivates investment during the reporting period. 3.7 External research and media interviews with the Company during the reporting period □Applicable □√Not Applicable There was no external research or media interview with the Company during the reporting period. 5 3.8. Outside guarantee in breach of laws & regulations □Applicable □√Not Applicable There was no outside guarantee in breach of laws & regulations during 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 during the reporting period. 3.10 Corporation social responsibilities of one-to-one poverty alleviation 3.10.1 Summary of one-to-one poverty alleviation According to arrangement of JMCG, the Company joined the one-to-one poverty alleviation in Qianmo Village, Daijiapu Township, Suichuan County, Jiangxi Province and Xianting Village, Songhu Town, Xinjian District, Nanchang City. 3.10.2 Status of one-to-one poverty alleviation by the listed company in the first three quarters Item Unit Amount/Progress I. Brief Introduction —— —— including:1. Funding RMB (‘000) 57.7 2. Sum converted from the materials RMB (‘000) 13.3 3. Persons get rid of poverty Persons 20 II. Investments —— —— 1. Anti-poverty depending on industry development —— —— 2. Anti-poverty depending on employment transfer —— —— 3. Anti-poverty depending on relocation —— —— 4. Anti-poverty depending on education —— —— 5. Health Anti-poverty —— —— 6. Ecological protection anti-poverty —— —— 7. Miscellaneous provisions —— —— 8. Social anti-poverty —— —— including:8.1 Investments on cooperation between West RMB (‘000) China and East China 8.2 Investments on one-to-one anti-poverty RMB (‘000) 71 8.3 Investments from anti-poverty charity fund RMB (‘000) 9. Other —— —— III. Awards —— —— 6 §4 Financial Statements Jiangling Motors Corporation, Ltd. Consolidated Balance Sheet (All amounts in RMB thousands unless otherwise stated) 30 September 2017* 31 December 2016 Assets Non-current assets Property, plant and equipment 6,595,626 6,688,530 Lease prepayment 620,728 632,408 Intangible assets 143,479 158,160 Investments accounted for using the equity 45,271 39,893 method Other non-current assets 115,987 97,549 Deferred income tax assets 582,138 554,488 8,103,229 8,171,028 Current assets Financial assets at fair value through profit - 8,539 or loss Inventories 2,299,947 1,934,092 Trade, other receivables and prepayments 3,927,188 2,625,808 Cash and cash equivalents 9,262,071 11,666,222 Restricted Cash - 463 Assets classified as held for sale 93,413 87,637 15,582,619 16,322,761 Total assets 23,685,848 24,493,789 Equity and liabilities Equity attributable to shareholders of the Company Share capital 863,214 863,214 Share premium 816,609 816,609 Other reserves 452,126 452,126 Retained earnings 10,394,258 10,277,287 Total equity 12,526,207 12,409,236 7 30 September 2017* 31 December 2016 Liabilities Non-current liabilities Borrowings 4,129 4,543 Deferred income tax liabilities 26,791 27,383 Retirement benefit obligations 49,807 53,627 Provisions for warranty and other liabilities 159,426 130,987 Other non-current liabilities 260 320 240,413 216,860 Current liabilities Financial liabilities at fair value through profit 2,687 - or loss Trade and other payables 10,701,225 11,605,178 Current income tax liabilities 24,816 98,860 Borrowings 435 454 Retirement benefit obligations 4,561 4,561 Provisions for warranty and other liabilities 185,504 153,640 Other current liabilities - 5,000 10,919,228 11,867,693 Total liabilities 11,159,641 12,084,553 Total equity and liabilities 23,685,848 24,493,789 *: Unaudited financial indexes 8 Jiangling Motors Corporation, Ltd. Consolidated Income Statement (All amounts in RMB thousands unless otherwise stated) 2017.7.1- 2016.7.1- 2017.1.1- 2016.1.1- 2017.9.30* 2016.9.30* 2017.9.30* 2016.9.30* Revenue 6,768,706 6,418,622 22,435,182 17,229,358 Sales tax (190,741) (197,070) (735,363) (525,325) Cost of sales (5,407,643) (4,866,388) (17,779,600) (13,222,471) Gross profit 1,170,322 1,355,164 3,920,219 3,481,562 Distribution expenses (613,872) (450,967) (1,884,349) (1,208,534) Administrative expenses (583,351) (543,465) (1,777,017) (1,480,863) Impairment charge of non-current assets - - (3,347) (1,347) Other income 42,621 50,039 246,205 275,895 Operating profit 15,720 410,771 501,711 1,066,713 Finance income 60,293 53,272 188,196 163,691 Finance expenses (1,897) (2,298) (3,900) (3,065) Finance income -net 58,396 50,974 184,296 160,626 Share of profit of investments accounted for using the equity method 1,931 3,251 5,378 8,277 Profit before income tax 76,047 464,996 691,385 1,235,616 Income tax expense 14,581 (75,960) (47,854) (142,063) Profit for the period 90,628 389,036 643,531 1,093,553 Total comprehensive income for the period 90,628 389,036 643,531 1,093,553 Profit attributable to: Shareholders of the Company 90,628 389,036 643,531 1,093,553 Total comprehensive income attributable to: Shareholders of the Company 90,628 389,036 643,531 1,093,553 Earnings per share for profit attributable to the shareholders of the Company (expressed in RMB per share) - Basic and diluted 0.11 0.45 0.75 1.27 *: Unaudited financial indexes 9 Jiangling Motors Corporation, Ltd. Consolidated cash flow statement (All amounts in RMB thousands unless otherwise stated) 2017.1.1- 2016.1.1- 2017.9.30* 2016.9.30* Cash flows from operating activities Cash generated from operations (1,187,899) 2,220,687 Interest paid (158) (320) Income Tax paid (197,091) (146,629) Net cash generated from operating activities (1,385,148) 2,073,738 Cash flows from investing activities Purchase of property, plant and equipment (PPE) (635,675) (839,683) Other cash paid relating to investing activities (5,878) (101) Proceeds from disposal of PPE 2,451 2,620 Interest received 144,405 160,217 Dividends received - 5,745 Other cash received from investing activities 8,908 1,554 Net cash used in investing activities (485,789) (669,648) Cash flows from financing activities Repayments of borrowings (5,226) (212) Dividends paid to the Company’s shareholders (527,117) (897,770) Other cash paid relating to financing activities (871) (1,467) Net cash used in financing activities (533,214) (899,449) Net (decrease)/increase in cash and cash equivalents (2,404,151) 504,641 Cash and cash equivalents at beginning of period 11,666,222 8,848,040 Effects of exchange rate changes - - Cash and cash equivalents at end of period 9,262,071 9,352,681 *: Unaudited financial indexes 10