Share’s name: Jiangling Motors Share’s code: 000550 No.: 2020-016 Jiangling B 200550 Jiangling Motors Corporation, Ltd. 2020 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 All Directors were present at the Board meeting to review the 2020 First Quarter Report . 1.3 Chairman Qiu Tiangao, CFO Li Weihua and Chief of Finance Department, Ding Ni, confirm that the financial statements in this Quarter Report are truthful, accurate and complete. 1 §2 Brief Introduction 2.1 Main accounting data and financial indicators Unit: RMB Reporting period Same Period YoY Change (2020 first quarter) Last Year (%) Revenue 4,619,180,560.00 6,506,385,533.00 -29.01% Profit Attributable to the Equity Holders of the 69,462,263.00 25,158,175.00 176.10% Company Net Cash Generated From -3,209,160,716.00 -191,280,537.00 -1,577.72% Operating Activities Basic Earnings Per Share 0.08 0.03 176.10% (RMB) Diluted Earnings Per Share 0.08 0.03 176.10% (RMB) Weighted Average Return on 0.66% 0.24% 0.42 Net Asset Ratio (%) At the end of At the end of the previous year Change (%) the reporting period Total Assets 22,331,500,602.00 24,298,528,593.00 -8.10% Shareholder’s equity Attributable to the Equity 10,566,026,044.00 10,496,563,781.00 0.66% 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 28,908 shareholders as of March 31, 2020, including 23,340 A-share Total shareholders holders and 5,568 B-share holders. Top ten shareholders Shares Shares Shareholding Shareholder Shares as of with due to Shareholder Type Percentage Name March 31, 2020 Trading mortgage (%) Restriction or frozen Nanchang Jiangling State-owned legal 41.03 354,176,000 0 0 Investment Co., person Ltd. Ford Motor Foreign legal 32.00 276,228,394 0 0 Company person China Securities Domestic Corporation non-State-owned 2.72 23,458,066 0 0 Limited legal persons Shanghai State-owned Automotive Co., 1.51 13,019,610 0 0 Legal person Ltd. 2 Hong Kong Securities Foreign legal 0.96 8,277,549 0 0 Clearing Company person Ltd. (HKSCC) Central Huijin State-owned 0.83 7,186,600 0 0 Investment Ltd. Legal person GAOLING FUND, Foreign legal 0.63 5,453,086 0 0 L.P. person INVESCO FUNDS Foreign legal 0.56 4,841,889 0 0 SICAV person Domestic natural Yang Wenting 0.44 3,827,921 0 0 person LSV EMERGING MARKETS Foreign legal 0.35 2,996,400 0 0 EQUITY FUND, person L.P. Top ten shareholders holding unlimited tradable shares Shareholder Name Shares without Trading Share Type Restriction Nanchang Jiangling Investment 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 Hong Kong Securities Clearing Company 8,277,549 B share Ltd. (HKSCC) Central Huijin Investment Ltd. 7,186,600 A share GAOLING FUND, L.P. 5,453,086 B share INVESCO FUNDS SICAV 4,841,889 B share Yang Wenting 3,827,921 A share LSV EMERGING MARKETS EQUITY 2,996,400 B share FUND, L.P. 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 §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 2020, JMC sold 44,965 vehicles in total, decreased by 30.93% compared with the same period last year, including 16,828 JMC-brand light trucks, 7,841 JMC-brand pickups, 4,998 JMC-brand light buses, 4,530 SUVs, 10,464 Ford-brand commercial vehicles, and 304 heavy trucks. Revenue and net profit during the reporting period were RMB 4,619 million and RMB 69 million, decreased 29.01% and increased 176.10% respectively compared with the same period last year. As of the end of the first quarter of 2020, compared with the end of the previous year, receivables financing decreased by RMB 91 million, down 31.49%, mainly reflecting the use of notes receivables to pay for goods and the decrease of notes receivables. As of the end of the first quarter of 2020, compared with the end of the previous year, notes payable increased by RMB 62 million, up 196.23%, mainly reflecting the increase of payment for goods by using notes payable. As of the end of the first quarter of 2020, compared with the end of the previous year, contract liabilities decreased by RMB 94 million, down 34.87%, mainly reflecting that the Company pre-charges the payment for vehicles, components and service, part of which has been categorized to operating revenue of the period. As of the end of the first quarter of 2020, compared with the end of the previous year, tax payable decreased by RMB 181 million, down 91.27%, mainly reflecting the decrease of tax payable at the end of the period. In the first quarter of 2020, compared with the same period last year, operating revenue decreased by RMB 1,887 million, down 29.01%; operating costs decreased by RMB 1,686 million, down 30.09%; tax and surcharges decreased by RMB 61 million, down 33.76%, mainly due to the decline of sales volume affected by the COVID-19 epidemic. In the first quarter of 2020, compared with the same period last year,, selling expenses decreased by RMB 93 million, down 29.46%, mainly reflecting the decrease of sales expenses caused by the decrease of sales volume. In the first quarter of 2020, compared with the same period last year, net profit increased by RMB 44 million, up 176.10%, mainly reflecting the continuous 4 promotion of cost reduction and efficiency improvement, and strict control of expenditure. In the first quarter of 2020, compared with the same period last year, income tax expense increased by RMB 12 million, up 69%, mainly due to the profit increase of this period. In the first quarter of 2020, compared with the same period last year, net cash flows from operating activities decreased by RMB 3,018 million, down 1577.72%, mainly due to the decrease in cash received from sales of goods due to the decrease in sales volume affected by the COVID-19 epidemic. In the first quarter of 2020, compared with the same period last year, net cash flows from investing activities increased by RMB 374 million, up 38.16%, mainly due to the decrease in cash paid for the purchase and construction of fixed assets in the current period. In the first quarter of 2020, compared with the same period last year, net cash flows from financing activities increased by RMB 1,291 million, mainly due to the new short-term borrowings. In the first quarter of 2020, compared with the same period last year, the net increase in cash and cash equivalents decreased by RMB 1,353 million, down 115.35%, mainly reflecting the decrease of net cash flows from operating activities. The Company plans to relocate the Plant located in Qingyunpu District, Nanchang City in 2020 and 2021, in which the light truck vehicle capacity will be relocated to the Company's Fushan factory, and the spare parts capacity will be relocated to the Company's Xiaolan factory. The relocation of the Qingyupu Plant will not have a substantial impact on the Company's operations in the short term. In the long term, the relocation of the Qingyupu Plant will enable the Company to achieve capacity optimization, efficiency improvement and technological upgrading of process equipments. 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 2020 first half-year operating performance Warning and explanations as to the situation that accumulated net profit during 5 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 Entrusting financial management □Applicable □√Not Applicable There was no entrusting financial management during the reporting period. 3.7 Securities derivates investment □Applicable □√Not Applicable There was no securities derivates investment during the reporting period. 3.8 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. 3.9. Outside guarantee in breach of laws & regulations □Applicable □√Not Applicable There was no outside guarantee in breach of laws & regulations during the reporting period. 3.10 Non-operating funding in the Company occupied by controlling shareholder and its affiliates □Applicable □√Not Applicable 6 §4 Financial Statements Jiangling Motors Corporation, Ltd. 1. Consolidated Balance Sheet March 31, 2020 (All amounts in RMB yuan unless otherwise stated) 31 March 2020 31 December 2019 Assets Consolidated* Consolidated Current assets: Cash at bank and on hand 6,433,871,604.00 8,937,936,658.00 Transactional financial assets 500,263,889.00 0.00 Notes receivables 28,647,953.00 85,816,311.00 Accounts receivables 2,353,753,391.00 2,208,236,620.00 Receivables financing 198,031,412.00 289,044,373.00 Advances to suppliers 571,786,163.00 517,122,502.00 Other receivables 113,941,582.00 115,983,137.00 Inventories 1,950,239,266.00 1,946,869,092.00 Other current assets 1,113,395,586.00 973,426,066.00 Total current assets 13,263,930,846.00 15,074,434,759.00 Non-current assets: Long-term equity investments 38,350,022.00 40,934,557.00 Fixed assets 5,488,267,958.00 5,714,489,577.00 Construction in progress 1,504,856,501.00 1,498,124,778.00 Right-of-use asset 32,426,977.00 36,039,891.00 Intangible assets 924,201,291.00 948,755,845.00 Development costs 213,608,493.00 125,142,080.00 Deferred tax assets 865,858,514.00 860,607,106.00 Total non-current assets 9,067,569,756.00 9,224,093,834.00 Total assets 22,331,500,602.00 24,298,528,593.00 Current liabilities: Short-term borrowings 1,300,000,000.00 0.00 Derivative financial liabilities 1,143,139.00 545,632.00 Notes payables 93,017,506.00 31,400,000.00 Accounts payables 5,333,204,665.00 8,116,169,589.00 Contract liabilities 174,646,652.00 268,170,154.00 Employee benefits payable 372,805,571.00 385,547,290.00 Taxes payable 17,351,605.00 198,777,104.00 Other payables 3,826,280,059.00 4,145,266,838.00 Current portion of non-current 11,477,841.00 13,843,406.00 liabilities Other current liabilities 254,484,337.00 264,558,923.00 Total current liabilities 11,384,411,375.00 13,424,278,936.00 Non-current liabilities: Long-term borrowings 3,247,733.00 3,197,814.00 7 Lease liabilities 21,500,076.00 22,592,252.00 Long-term employee benefits 62,430,938.00 63,685,000.00 payable Provisions 165,436,773.00 166,687,460.00 Deferred income 35,169,460.00 34,389,578.00 Deferred tax liabilities 25,174,747.00 25,339,981.00 Other non-current liabilities 68,103,456.00 61,793,791.00 Total non-current liabilities 381,063,183.00 377,685,876.00 Total liabilities 11,765,474,558.00 13,801,964,812.00 Owners' equity: Share capital 863,214,000.00 863,214,000.00 Capital surplus 839,442,490.00 839,442,490.00 Other comprehensive income -11,395,500.00 -11,395,500.00 Surplus reserve 431,607,000.00 431,607,000.00 Undistributed profits 8,443,158,054.00 8,373,695,791.00 Total equity attributable to equity owners 10,566,026,044.00 10,496,563,781.00 of the Company Minority interests 0.00 0.00 Total owners' equity 10,566,026,044.00 10,496,563,781.00 Total Liabilities and owners' equity 22,331,500,602.00 24,298,528,593.00 * Unaudited financial indexes 8 2. Balance Sheet March 31, 2020 (All amounts in RMB yuan unless otherwise stated) Assets 31 March 2020* 31 December 2019 Current assets: Cash at bank and on hand 6,022,967,158.00 8,677,928,946.00 Transactional financial assets 500,263,889.00 0.00 Notes receivables 439,553.00 20,792,000.00 Accounts receivables 744,624,899.00 865,928,297.00 Receivables financing 502,005,048.00 52,811,157.00 Advances to suppliers 559,018,837.00 504,562,617.00 Other receivables 3,261,772,220.00 3,118,317,705.00 Inventories 1,512,294,906.00 1,471,931,881.00 Other current assets 913,899,805.00 821,783,113.00 Total current assets 14,017,286,315.00 15,534,055,716.00 Non-current assets: Long-term equity investments 378,350,022.00 380,934,557.00 Fixed assets 4,267,303,111.00 4,462,909,152.00 Construction in progress 1,262,734,584.00 1,244,963,653.00 Right-of-use asset 30,250,876.00 33,138,423.00 Intangible assets 491,688,554.00 513,529,416.00 Development costs 188,085,970.00 100,271,663.00 Deferred tax assets 168,963,261.00 182,248,610.00 Total non-current assets 6,787,376,378.00 6,917,995,474.00 Total assets 20,804,662,693.00 22,452,051,190.00 Current liabilities: Short-term borrowings 1,300,000,000.00 0.00 Derivative financial liabilities 1,143,139.00 545,632.00 Notes payables 0.00 0.00 Accounts payables 5,214,005,826.00 7,908,815,398.00 Contract liabilities 639,942,602.00 77,585,490.00 Employee benefits payable 314,282,880.00 312,170,895.00 Taxes payable 14,865,281.00 119,431,418.00 Other payables 1,231,483,561.00 2,227,351,456.00 Current portion of non-current 10,304,104.00 11,500,358.00 liabilities Other current liabilities 88,451,094.00 13,333,551.00 Total current liabilities 8,814,478,487.00 10,670,734,198.00 Non-current liabilities: Long-term borrowings 3,247,733.00 3,197,814.00 Lease liabilities 21,500,076.00 22,592,252.00 9 Long-term employee benefits 62,130,938.00 63,385,000.00 payable Provisions 0.00 0.00 Deferred income 35,169,460.00 34,389,578.00 Deferred tax liabilities 0.00 0.00 Other non-current liabilities 57,254,542.00 50,930,075.00 Total non-current liabilities 179,302,749.00 174,494,719.00 Total liabilities 8,993,781,236.00 10,845,228,917.00 Owners' equity: Share capital 863,214,000.00 863,214,000.00 Capital surplus 839,442,490.00 839,442,490.00 Other comprehensive income -11,616,750.00 -11,616,750.00 Surplus reserve 431,607,000.00 431,607,000.00 Undistributed profits 9,688,234,717.00 9,484,175,533.00 Total owners' equity 11,810,881,457.00 11,606,822,273.00 Total Liabilities and owners' equity 20,804,662,693.00 22,452,051,190.00 * Unaudited financial indexes 10 3. Consolidated Income Statement 2020 First Quarter (All amounts in RMB yuan unless otherwise stated) Item 2020 First Quarter* 2019 First Quarter* Gross revenue 4,619,180,560.00 6,506,385,533.00 Revenue 4,619,180,560.00 6,506,385,533.00 Total operating costs 4,733,559,021.00 6,613,067,438.00 Less:Cost of sales 3,916,066,861.00 5,601,573,530.00 Taxes and surcharges 119,070,398.00 179,764,943.00 Selling expenses 222,716,861.00 315,747,801.00 General and administrative expenses 206,161,298.00 195,174,150.00 Research and development expenses 302,062,331.00 359,954,694.00 Financial expenses -32,518,728.00 -39,147,680.00 Including: Interest expenses 7,794,430.00 53,320.00 Interest income 44,097,975.00 30,792,516.00 Add:Other income 164,739,694.00 12,152,205.00 Investment income 14,432,960.00 1,685,201.00 Including: Share of profit of associates and joint -2,584,535.00 -59,981.00 ventures Profit arising from changes in fair value -333,618.00 -4,118,513.00 Credit impairment losses 1,170,214.00 696,662.00 Gains on disposals of assets 0.00 -168,326.00 Operating profit 65,630,789.00 -96,434,676.00 Add:Non-operating income 1,293,229.00 106,321,760.00 Less:Non-operating expenses 2,951,304.00 2,434,977.00 Total profit 63,972,714.00 7,452,107.00 Less:Income tax expenses -5,489,549.00 -17,706,068.00 Net profit 69,462,263.00 25,158,175.00 Classified by continuity of operations Net profit from continuing operations 69,462,263.00 25,158,175.00 Net profit from discontinued operations 0.00 0.00 Classified by ownership of the equity Minority interests 0.00 0.00 Attributable to equity owners of the Company 69,462,263.00 25,158,175.00 Other comprehensive income, net of tax Attributable to equity owners of the Company Other comprehensive income that will not be reclassified to profit or loss Changes arising from remesurement of net liability or net 0.00 0.00 asset of defined benefit plan Attributable to minority interests Total comprehensive income 69,462,263.00 25,158,175.00 Attributable to equity owners of the Company 69,462,263.00 25,158,175.00 11 Attributable to minority interests 0.00 0.00 Earnings per share: Basic earnings per share(RMB Yuan) 0.08 0.03 Diluted earnings per share(RMB Yuan) 0.08 0.03 *: Unaudited financial indexes 12 4. Income Statement 2020 First Quarter (All amounts in RMB yuan unless otherwise stated) Item 2020 First Quarter* 2019 First Quarter* Revenue 4,333,342,232.00 6,118,634,036.00 Less:Cost of sales 3,704,459,354.00 5,392,813,061.00 Taxes and surcharges 115,847,718.00 170,418,716.00 Selling expenses 50,117,476.00 51,967,675.00 General and administrative expenses 157,935,401.00 172,130,185.00 Research and development 285,055,315.00 326,489,952.00 expenses Financial expenses -40,519,132.00 -49,720,573.00 Including:Interest expenses 6,283,846.00 53,320.00 Interest income 49,953,979.00 40,459,850.00 Add:Other income 144,689,694.00 12,152,205.00 Investment income 14,432,960.00 1,685,201.00 Including:Share of profit of -2,584,535.00 -59,981.00 associates and joint ventures Profit arising from changes in fair -333,618.00 -4,118,513.00 value Credit impairment losses -44,746.00 766,306.00 Gains on disposals of assets 0.00 -168,326.00 Operating profit 219,190,390.00 64,851,893.00 Add:Non-operating income 1,050,062.00 106,288,499.00 Less:Non-operating expenses 2,951,304.00 2,077,131.00 Total profit 217,289,148.00 169,063,261.00 Less:Income tax expenses 13,229,964.00 1,378,988.00 Net profit 204,059,184.00 167,684,273.00 Net profit from continuing operations 204,059,184.00 167,684,273.00 Net profit from discontinued operations 0.00 0.00 Other comprehensive income, net of tax Other comprehensive income that will not be reclassified to profit or loss Changes arising from remesurement of net liability or net asset of defined benefit plan Total comprehensive income 204,059,184.00 167,684,273.00 Earnings per share Basic earnings per share(RMB Yuan) - - Diluted earnings per share(RMB Yuan) - - *: Unaudited financial indexes 13 5. Consolidated Cash Flow Statement 2020 First Quarter (All amounts in RMB yuan unless otherwise stated) Item 2020 First Quarter* 2019 First Quarter* Cash flows from operating activities Cash received from sales of goods or 4,817,652,267.00 7,191,549,667.00 rendering of services Cash received relating to other 184,047,095.00 141,826,664.00 operating activities Sub-total of cash inflows 5,001,699,362.00 7,333,376,331.00 Cash paid for goods and services 6,499,939,751.00 5,817,453,366.00 Cash paid to and on behalf of 562,630,851.00 632,414,595.00 employees Payments of taxes and surcharges 499,921,086.00 417,049,821.00 Cash paid relating to other operating 648,368,390.00 657,739,086.00 activities Sub-total of cash outflows 8,210,860,078.00 7,524,656,868.00 Net cash flows from operating activities -3,209,160,716.00 -191,280,537.00 Cash flows from investing activities: Cash received from disposal of 2,495,000,000.00 3,300,000,000.00 investments Cash received from returns on 17,810,966.00 5,739,140.00 investments Net cash received from disposal of fixed assets, intangible assets and other 29,348.00 232,000.00 long-term assets Cash received relating to other 57,061,634.00 24,258,591.00 investing activities Sub-total of cash inflows 2,569,901,948.00 3,330,229,731.00 Cash paid to acquire fixed assets, intangible assets and other long-term 180,512,371.00 406,146,314.00 assets Cash paid to acquire investments 2,995,000,000.00 3,900,000,000.00 Cash paid relating to other investing 1,194,271.00 5,298,068.00 activities Sub-total of cash outflows 3,176,706,642.00 4,311,444,382.00 Net cash flows from investing activities -606,804,694.00 -981,214,651.00 Cash flows from financing activities: Cash received from borrowings 1,300,000,000.00 0.00 Sub-total of cash inflows 1,300,000,000.00 0.00 Cash payments for distribution of 7,228,323.00 120,000.00 dividends, profits or interest expenses 14 Cash payments relating to other 1,987,321.00 0.00 financing activities Sub-total of cash outflows 9,215,644.00 120,000.00 Net cash flows from financing activities 1,290,784,356.00 -120,000.00 Effect of foreign exchange rate changes 0.00 0.00 on cash and cash equivalents Net increase in cash and cash -2,525,181,054.00 -1,172,615,188.00 equivalents Add:Cash and cash equivalents at 8,937,936,658.00 7,616,879,976.00 beginning of year Cash and cash equivalents at end of 6,412,755,604.00 6,444,264,788.00 period * Unaudited financial indexes 15 6. Cash Flow Statement 2020 First Quarter (All amounts in RMB yuan unless otherwise stated) Item 2020 First Quarter* 2019 First Quarter* Cash flows from operating activities: Cash received from sales of goods or rendering 4,179,929,582.00 7,110,414,995.00 of services Cash received relating to other operating 154,864,705.00 134,836,625.00 activities of cash inflows Sub-total 4,334,794,287.00 7,245,251,620.00 Cash paid for goods and services 6,315,563,976.00 5,609,177,481.00 Cash paid to and on behalf of employees 492,904,237.00 550,535,294.00 Payments of taxes and surcharges 370,835,212.00 331,586,876.00 Cash paid relating to other operating activities 443,825,017.00 376,500,710.00 Sub-total of cash outflows 7,623,128,442.00 6,867,800,361.00 Net cash flows from operating activities -3,288,334,155.00 377,451,259.00 Cash flows from investing activities: Cash received from disposal of investments 5,262,976,131.00 5,164,000,000.00 Cash received from returns on investments 17,810,966.00 5,739,140.00 Net cash received from disposal of fixed assets, 29,348.00 232,000.00 Cash received other to other assets intangible assets andrelating long-terminvesting 131,041,185.00 77,394,341.00 activities of cash inflows Sub-total 5,411,857,630.00 5,247,365,481.00 Cash paid to acquire fixed assets, intangible 175,210,700.00 385,263,733.00 assets and other long-term assets Cash paid to acquire investments 5,894,976,131.00 5,909,000,000.00 Cash paid relating to other investing activities 1,194,272.00 5,298,068.00 Sub-total of cash outflows 6,071,381,103.00 6,299,561,801.00 Net cash flows from investing activities -659,523,473.00 -1,052,196,320.00 Cash flows from financing activities: Cash received from borrowings 1,300,000,000.00 0.00 Sub-total of cash inflows 1,300,000,000.00 0.00 Cash payments for distribution of dividends, 5,745,081.00 120,000.00 profits or interest expenses Cash payments relating to other financing 1,359,079.00 0.00 activities Sub-total of cash outflows 7,104,160.00 120,000.00 Net cash flows from financing activities 1,292,895,840.00 -120,000.00 Effect of foreign exchange rate changes on cash 0.00 0.00 and cash equivalents 16 Net increase in cash and cash equivalents -2,654,961,788.00 -674,865,061.00 Add:Cash and cash equivalents at beginning of 8,677,928,946.00 6,244,682,576.00 year and cash equivalents at end of period Cash 6,022,967,158.00 5,569,817,515.00 *: Unaudited financial indexes Board of Directors Jiangling Motors Corporation, Ltd. April 27, 2020 17