Share’s name: Jiangling Motors Share’s code: 000550 No.: 2019-021
Jiangling B 200550
Jiangling Motors Corporation, Ltd.
2019 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 any
false statement, misrepresentation or major omission.
1.2 Director Thomas Fann did not attend this meeting, and he authorized Vice
Chairman Anning Chen to represent him at this meeting, and all the other
Directors were present at the Board meeting in person.
1.3 Chairman Qiu Tiangao, CFO Li Weihua and Chief of Finance Department,
Xie Wanzhao, confirm that the financial statements in this Quarter Report are
truthful, accurate and complete.
1.4 All financial data in this Quarter 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
Reporting period Same Period YoY Change (%)
(2019 first quarter) Last Year
Revenue 6,506,386 6,481,073 0.39%
Profit Attributable to the
Equity Holders of the 25,158 153,606 -83.62%
Company
Net Cash Generated From
-191,400 -1,397,337 86.30%
Operating Activities
Basic Earnings Per Share
0.03 0.18 -83.62%
(RMB)
Diluted Earnings Per Share
0.03 0.18 -83.62%
(RMB)
Weighted Average Return on Down 0.97
0.24% 1.21%
Net Asset Ratio (%) percentage points
At the end of At the end of the
previous year Change (%)
the reporting period
Total Assets 22,161,203 23,396,529 -5.28%
Shareholder’s equity
Attributable to the Equity 10,409,656 10,384,498 0.24%
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
JMC had 20,607 shareholders as of March 31, 2019, including 15,267 A-share
Total shareholders
holders and 5,340 B-share holders.
Top ten shareholders
Shares due
Shareholding Shares with
Shareholder Shares as of to
Shareholder Name Percentage Trading
Type March 31, 2019 mortgage
(%) Restriction
or frozen
Jiangling Motor State-owned
41.03 354,176,000 0 0
Holdings Co., Ltd. legal person
Foreign
Ford Motor Company 32.00 276,228,394 0 0
legal person
China Securities
Other 2.72 23,458,066 0 0
Corporation Limited
State-owned
Shanghai Automotive
Legal 1.51 13,019,610 0 0
Co., Ltd.
person
Harvest
Environmental other 0.95 8,188,983 0 0
Protection Low
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Carbon Stock
Investment Fund
State-owned
Central Huijin
Legal 0.83 7,186,600 0 0
Investment Ltd.
person
National Social State-owned
Security Fund 602 Legal 0.75 6,488,864 0 0
Portfolio person
JPMBLSA RE FTIF
Foreign
TEMPLETON CHINA 0.68 5,848,450 0 0
legal person
FUND GTI 5497
GAOLING FUND, Foreign
0.63 5,453,086 0 0
L.P. legal person
AEGON Social
Responsibility Hybrid
other 0.59 5,128,264 0 0
Securities Investment
Fund
Top ten shareholders holding unlimited tradable shares
Shareholder Name Shares without Trading Share Type
Restriction
Jiangling Motor Holdings Co., Ltd. 354,176,000 A share
Ford Motor Company 276,228,394 B share
China Securities Corporation Limited 23,458,066 A share
Shanghai Automotive Co., Ltd. 13,019,610 A share
Harvest Environmental Protection
8,188,983 A share
Low Carbon Stock Investment Fund
Central Huijin Investment Ltd. 7,186,600 A share
National Social Security Fund 602
6,488,864 A share
Portfolio
JPMBLSA RE FTIF TEMPLETON
5,848,450 B share
CHINA FUND GTI 5497
GAOLING FUND, L.P. 5,453,086 B share
AEGON Social Responsibility Hybrid
5,128,264 A share
Securities Investment Fund
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
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§3 Major Events
3.1 Causes and explanations on major changes of financial indicators of the
reporting period
□√Applicable □Not Applicable
In the first quarter of 2019, JMC sold 65,105 vehicles in total, decreased by
2.01% compared with the same period last year, including 21,674 JMC-brand
light trucks, 14,093 JMC-brand pickups, 7,437 JMC-brand light buses, 11,686
SUVs, 8,375 Ford-brand commercial vehicles, 180 heavy trucks and 1,660
CKDs. Revenue and net profit during the reporting period were RMB 6,506
million and RMB 25 million, decreased 0.39% and 83.62% respectively
compared with the same period last year.
In the first quarter of 2019, compared with the end of the previous year,
contract liabilities decreased by RMB 77 million, down 28.81%, mainly
reflecting that the Company pre-charge the payment for vehicles, components
and service, part of which has been categorized to operating revenue of the
period
In the first quarter of 2019, compared with the same period last year,
distribution costs increased by RMB 128 million, up 68.29%, mainly reflecting
the marketing expense increase for Territory launch.
In the first quarter of 2019, compared with the same period last year, finance
income decreased RMB 29.7 million, down 49.13%, primarily reflecting the
interest decrease due to cash decrease after special dividend payment in 2018
Q1.
In the first quarter of 2019, compared with the same period last year, operating
profit decreased by RMB 135 million, down 119.43%; profit before income tax
decreased by RMB 165 million, down 95.67%, primarily reflecting the volume
decrease and sales structure change as well as marketing expense increase
for Territory launch.
In the first quarter of 2019, compared with the same period last year, income
tax expense decreased by RMB 36 million, down 196.50%, mainly due to the
profit decrease of this period.
In the first quarter of 2019, compared with the same period last year, net cash
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outflow from operating activities decreased by RMB 1,206 million, down
86.31%, mainly due to account payable decreased.
In the first quarter of 2019, compared with the same period last year, net cash
outflow from investing activities increased by RMB 797 million, up 432.24%,
mainly reflecting the purchase of monetary fund by part of the Company’s own
idle fund and cash payment increase for fixed assets purchase.
In the first quarter of 2019, compared with the same period last year, net cash
outflow from financing activities decreased by RMB 1,590 million, down
99.99%, mainly reflecting the 2017 mid-term special dividend paid in 2018 Q1.
3.2 Analysis of major events, their impacts and resolutions
□Applicable □√Not Applicable
3.3 Commitments of the Company actual controlling party, the shareholders,
the related parties, the acquirer, or the Company
□Applicable □√Not Applicable
3.4 Forecast on 2019 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
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.
3.8. Outside guarantee in breach of laws & regulations
□Applicable □√Not Applicable
There was no outside guarantee in breach of laws & regulations during the
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reporting period.
3.9 Non-operating funding in the Company occupied by controlling shareholder
and its affiliates
□Applicable □√Not Applicable
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§4 Financial Statements
Jiangling Motors Corporation, Ltd.
Consolidated Balance Sheet
March 31, 2019
(All amounts in RMB thousands unless otherwise stated)
31 March 2019* 31 December 2018
Assets
Non-current assets
Property, plant and equipment 6,905,562 6,941,292
Lease prepayment 597,367 601,260
Intangible assets 232,732 246,026
Deferred income tax assets 760,624 743,096
Investments accounted for using the equity
method 40,052 40,112
Total non-current assets 8,536,337 8,571,786
Current assets
Inventories 2,108,237 2,522,354
Trade and other receivables and prepayments 4,123,365 4,678,284
Derivative financial instruments - 979
Financial assets at fair value through profit or loss 606,160 -
Financial assets at fair value through other
342,839 6,246
comprehensive income
Cash and cash equivalents 6,444,265 7,616,880
Total current assets 13,624,866 14,824,743
Total assets 22,161,203 23,396,529
Equity
Share capital 863,214 863,214
Share premium 816,609 816,609
Other reserves 447,472 447,472
Retained earnings 8,282,361 8,257,203
Total equity 10,409,656 10,384,498
Liabilities
Non-current liabilities
Contract liabilities 37,859 38,382
Borrowings 3,528 3,595
Deferred income tax liabilities 25,851 26,024
Retirement benefit obligations 62,016 63,425
Provisions for statutory warranty 152,540 151,492
Other non-current liabilities 60,139 60,160
Total non-current liabilities 341,933 343,078
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Consolidated Balance Sheet (continued)
March 31, 2019
(All amounts in RMB thousands unless otherwise stated)
31 March 2019* 31 December 2018
Current liabilities
Trade and other payables 11,011,786 12,195,966
Contract liabilities 189,874 266,702
Current income tax liabilities 175 179
Borrowings 441 449
Derivative financial instruments. 9,300 -
Retirement benefit obligations 4,595 4,595
Provisions for statutory warranty 193,443 201,062
Total current liabilities 11,409,614 12,668,953
Total liabilities 11,751,547 13,012,031
Total equity and liabilities 22,161,203 23,396,529
* Unaudited financial indexes
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Jiangling Motors Corporation, Ltd.
Consolidated Income Statement
2019 First Quarter
(All amounts in RMB thousands unless otherwise stated)
2019 first quarter* 2018 first quarter*
Revenue from contracts with customers 6,506,386 6,481,073
Taxes and surcharges (179,765) (183,607)
Cost of sales (5,601,574) (5,603,281)
Gross profit 725,047 694,185
Distribution costs (315,748) (187,621)
Administrative expenses (555,129) (498,598)
Net expected credit losses on financial assets 697 1,600
Other income 123,193 103,349
Operating (loss)/profit (21,940) 112,915
Finance income 30,793 60,534
Finance costs (1,341) (2,178)
Finance income -net 29,452 58,356
Share of profit of investments accounted for using the
equity method (60) 683
Profit before income tax 7,452 171,954
Income tax credit/(expense) 17,706 (18,348)
Profit for the period 25,158 153,606
Profit attribute to:
Shareholders of the Company 25,158 153,606
Total comprehensive income for the period 25,158 153,606
Total comprehensive income attributable to:
Shareholders of the Company 25,158 153,606
Earnings per share for profit attributable to the
shareholders of the Company for the period
(expressed in RMB per share)
- Basic and diluted 0.03 0.18
*: Unaudited financial indexes
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Jiangling Motors Corporation, Ltd.
Consolidated Cash Flow Statement
2019 First Quarter
(All amounts in RMB thousands unless otherwise stated)
2019 first quarter* 2018 first quarter*
Cash flows from operating activities
Cash generated from operations (191,280) (1,282,311)
Interest paid (120) (120)
Income Tax paid - (114,906)
Net cash outflow from operating activities (191,400) (1,397,337)
Cash flows from investing activities
Purchase of property, plant and equipment (“PPE”) (406,146) (224,007)
Purchase of financial assets at fair value through profit
or loss (3,900,000) (1,170,000)
Other cash paid relating to investment activities (5,298) (5,829)
Proceeds from disposal of PPE 232 65
Proceeds from repayment of financial assets at fair
value through profit or loss 3,300,000 1,170,000
Investment income from financial assets at fair value
through profit or loss 5,739 1,562
Interest received 22,954 43,119
Other cash received from investing activities 1,304 733
Net cash outflow from investing activities (981,215) (184,357)
Cash flows from financing activities
Dividends paid to shareholders of the Company - (1,588,924)
Other cash paid relating to financing activities - (1,105)
Net cash outflow from financing activities - (1,590,029)
Net decrease in cash and cash equivalents (1,172,615) (3,171,723)
Cash and cash equivalents at beginning of year 7,616,880 11,137,723
Effects of exchange rate changes - -
Cash and cash equivalents at end of period 6,444,265 7,966,000
* Unaudited financial indexes
Board of Directors
Jiangling Motors Corporation, Ltd.
April 25, 2019
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